5. Question No. 5—Regional Economic DevelopmentHon PAUL GOLDSMITH (National) to the Minister for Regional Economic DevelopmentQuestion No. 5—Regional Economic Development5. Hon PAUL GOLDSMITH (National) to the Minister for Regional Economic Development: Does he think that increasing the tax burden on productive businesses would help or hinder investment into regional economic development?Hon SHANE JONES (Minister for Regional Economic Development): The connection between investment and tax is a complex matter and the introduction of any such tax is something that will be subject to both coalition discussions and widespread consultation with the very sector he's talking about.Hon Paul Goldsmith: Does he accept that a lot of regional development depends on private sector investment—someone somewhere deciding to put their money into starting a new business and building it?Hon SHANE JONES: Obviously every day Kiwis up and down the country in agribusiness and related industries are making investment decisions. They are increasing both in pace and sophistication as a consequence of my efforts.Hon Paul Goldsmith: Does he expect that substantially increasing the tax burden on investment would lead to more investment in the regions?Hon SHANE JONES: There is a famous song in the regions of New Zealand. It goes: Go get your marbles put 'em in the house get a little dirt on your hands son."SPEAKER: No the member will now answer the question.Hon SHANE JONES: The man mentioned the word "regions"; I have responded in a very popular regional way. Of course the regions are making investments all the time and they will enjoy great consultation by my good self as we move forward on any tax changes. The reference to "get a little dirt on your hands son" is the inverse relationship between Epsom and the regions.Hon Paul Goldsmith: Does he think it would encourage entrepreneurship in the regions if the owners of small regional businesses such as a sawmill in Northland could build up their businesses over 30 years by reinvesting tax-paid profits only to be taxed again when selling it?Hon SHANE JONES: Obviously the travails of privately owned small milling businesses—obviously tax considerations are not necessarily uppermost but will be on their mind which is why as the Minister of Forestry as the Minister for Regional Economic Development I will engage with them but I will not be taunted and I will not respond to verbal muck. I will respond to facts.Hon Paul Goldsmith: What advice has he received on the impact on investment into the regions first from the uncertainty over the imposition of a capital gains tax or not and second from the imposition of such a tax if it was introduced? Hon SHANE JONES: Obviously over the last 24 hours the veritable Dr Cullen and his committee have released their report. Now that that report is public I will turn my attention to studying its provisions and in good time we will discuss and debate its application to the provinces. Hon Paul Goldsmith: Does he support introducing a capital gains tax for every business in regional New Zealand? Hon SHANE JONES: Obviously as the "First Citizen of the Provinces" I will engage with the regions. I will talk to the stakeholders along with other Ministers and other parliamentary members of the Government. And in good time we will arrive at a rational and sustainable conclusion. But we will not respond as I've said earlier to verbal mucus. We won't."