Tremain Chris: Taxation (Annual Rates Business Taxation KiwiSaver and Remedial Matters) Bill — Second Reading 
Tremain Chris: Taxation (Annual Rates Business Taxation KiwiSaver and Remedial Matters) Bill — Second Reading 
[Volume:643;Page:13412] 
CHRIS TREMAIN (National—Napier) 
: 
 That was the Minister the Hon Shane Jones an esteemed member of the parliamentary rugby team whose jacket he is wearing in the House today. His legendary feats on the playing fields of France helped this Parliament to bring the Parliamentary Rugby World Cup back to this fine nation of New Zealand. I understand that it sits with pride of place on the Speaker’s mantelpiece. I join with the former chairman of the Finance and Expenditure Committee in acknowledging the work of Mr Robin Oliver and his cohorts in bringing this taxation bill through. I also acknowledge the work of the chair and the committee. We heard a lot of submissions on this bill as it came to the House. 
I want to start my speech today by acknowledging the work of Mr Pete Hodgson. He rose in this House just yesterday to say that 1 year ago John Key became the leader of the National Party. Mr Hodgson received rapturous applause from this side of the House. I might add that there were a few smiles from members on the other side of the House as well. John Key has set a new aspirational tone of leadership for this country—one that we have not seen for many years. It was an absolute honour to acknowledge his leadership in the year that has passed in this House and I thank Mr Hodgson for that possibility. 
Today I rise to debate the Taxation (Annual Rates Business Taxation KiwiSaver and Remedial Matters) Bill which has been presented before the House this evening. There are absolutely no precedents from either side of the House for parties ever to vote for an opposition party’s tax bill and regardless of the proposals in this bill there is nothing surer tonight than the fact that we will be voting against this particular tax bill as well. And there are good reasons for voting against the bill. 
A number of initiatives are a step in the right direction— 
Hon Darren Hughes 
: Like what? Name them. 
CHRIS TREMAIN 
: I will give the member one: the complete replication of National’s policy on charitable donations launched by John Key at the Wellington City Mission on 27 February 2007. That was well before this year’s Budget and well before this legislation saw the light of day in this House. That is one such example. Incentives in the research and development area have some merit and amendments that liberalise a range of tax penalties also have some merit. However it is the Government’s tax legislation such as this bill that sets the scope of its economic vision for our nation. To vote for the bill would be to agree with the general direction that this Government is setting and there is no way that National will be doing that. 
Although there are some creditable features in the bill this legislation quite simply is too little too late. To vote for it would be to agree with the general direction in which this Government is heading and there is about as much chance of our doing that as there is of Michael Cullen deciding to stand in the seat of Napier against me at the next election. It is just not going to happen. 
Hon Darren Hughes 
: Be careful. 
CHRIS TREMAIN 
: Ha ha—that would be an interesting challenge. 
Hon Darren Hughes 
: Be careful what you wish for. 
CHRIS TREMAIN 
: Sometimes it comes true. Well I have wished for it; I have challenged him on a number of occasions and my wish has not come true yet. So I am still waiting for that. To vote for this legislation would be to affirm the direction of the Government and where it has taken us over the last 8 years. But this Government is a disaster; this Government is in its death throes and we simply cannot support a Government in a terminal death spin. Putting aside the multitude of current disasters before us—the Electoral Finance Bill the David Benson-Pope demise the jobs for the girls the climate emission issues—we just cannot vote for this bill. 
The issue I want to focus on bearing in mind the key reason why we cannot vote for the direction this Government is taking us is typified by the headline in the paper just 2 days ago: “Record 40000 off to be Aussies”. The figures show that 40000 Kiwis have crossed the Tasman in the last year to live and work in Australia which is a whopping 6200 additional Kiwis compared with the figure of the year before—almost the population of my new electorate suburb of Wairoa. The town of Wairoa has 8200 people. An extra 6200 Kiwis are heading off overseas. The Deputy Prime Minister stood in this House 2 days ago and tried to explain that people were leaving for reasons other than just tax cuts. His reason was that they were leaving for lifestyle choices. Well guess what? They are leaving for lifestyle choices. Lifestyle is a key factor. But let us examine what “lifestyle” is. Is it because we lack mountains rivers and beaches in this fine country? No way! We have those in abundance. The difference is that an Australian lifestyle benefits from average wages that are 30 percent higher than here in Aotearoa—30 percent - plus higher. That creates a lifestyle that is somewhat better than the lifestyle here in New Zealand. And tax policy over time such as this taxation bill makes a huge impact on the lifestyle of Kiwis. 
I put this Labour Government’s record on tax policy directly at the Government’s feet as the reason why an additional 6200 Kiwis have crossed the Ditch this year. The Government’s record on tax policy has been one of “collect more collect more; build the kitty build the kitty”. My colleague Lindsay Tisch has released a paper that shows a whopping growth in tax and levies a paper from 18 September this year. We see the example of some 60-odd tax increases across all manner of jurisdictions from gambling to export education fees building levies and fees passenger clearance service costs levies on participants in the gas industry increases in passport charges marine safety charges the costs of the microchipping of dogs a levy to cover the cost of a dog control information database and fees for retirement villages. It just goes on and on. These increases have come from the “tax and build the kitty” policy of the Government over its last 8 years in office—a policy continued with this legislation today. 
The tax-and-spend philosophy is highlighted by this year’s tax take and surplus. For the tax year ended 30 June 2007 the Government had a tax take of some $56.5 billion. In the tax year ended 30 June 2000 it had a tax take of $34.4 billion. Ladies and gentlemen that is an increase in tax take of $22.1 billion. Even in the eyes of Mr Woolerton that is a big increase in tax. That is a whopping $5525 additional tax per man woman and child—whether or not it is put through a hidden trust I say to Mr Woolerton. That is a 64 percent increase in direct taxation. Under this Government there is unlikely to be any change soon to Kiwis’ lifestyles to stop them flying the coop; and this bill will not make much difference either. 
This Government as I have said previously is intent on building the kitty for next year’s election spend-up. And here is the proof. It is in clause 23 of a Cabinet paper by Michael Cullen dated 19 April 2007. 
Hon Darren Hughes 
: Is that before he cut business tax? 
CHRIS TREMAIN 
: I will give the member some credit in that he was not a Minister at this time so it is unlikely that his signature is on this particular Cabinet document. So I will let him off. But I want to read out what is stated in that Cabinet document—and it is important to close my debate. It states: “To maintain our commitment to the long-term fiscal objectives”—which is Cullen-speak for building the kitty—“I may need to make some adjustments to future Budgets. These are likely to be that we do not adjust tax thresholds in the medium term thereby retaining fiscal drag and potentially allowing tax to GDP ratios to rise slightly.” Oh that is bad luck for the New Zealand taxpayer. It goes on: “Accordingly this paper seeks Cabinet’s agreement to rescind our previous decision to adjust income tax thresholds … Within the projection period (i.e. from 2011-12 onwards) we will adjust tax thresholds for inflation but some portion of fiscal drag might need to be retained to finance our decisions.” That is what this Government is doing. It has rescinded on any sort of opportunity to improve the lifestyle for Kiwis here in New Zealand to stop those 40000 people from going forward. That is why as a party we are refusing to vote for this legislation. We are not following in the tracks of this Government; we will set out our own agenda and take this nation forward.