Prasad Rajen: Taxation (Annual Rates Returns Filing and Remedial Matters) Bill — In Committee 
Text is incorporated into the Bound Volume 
Prasad Rajen: Taxation (Annual Rates Returns Filing and Remedial Matters) Bill — In Committee 
[Sitting date: 28 August 2012. Volume:683;Page:4835. Text is incorporated into the Bound Volume.] 
Dr RAJEN PRASAD (Labour) 
: 
 It is a good place to take off from where my colleague Dr Megan Woods just left off. We are talking about Part 1 clause 3 of the Taxation (Annual Rates Returns Filing and Remedial Matters) Bill and talking about confirming the basic tax rates. Of course there is a purpose as to why we collect tax. It is so that we can develop the country but also address those things that need addressing as a matter of urgency. 
It was no accident today that knowing that the Children’s Commissioner was going to put out a major report on a significant area about children and child poverty in the midst of that what did the Minister for Social Development do? She announced again probably for the third or fourth time that there has got to be drug testing of beneficiaries. If that was not a distraction then I do not know what is. That was the only purpose for that. It was already announced. It was an old policy. The point here is that we are talking about tax and we are talking about the need to take tax so that we can address those really important issues that our children are facing today. There can be no doubt that our children are suffering. I do want to confirm what my colleague Megan Woods said which was that the Government is going backwards. The Government is out of touch with the ordinary needs of Kiwis. Certainly the Government is out of touch with the needs of our children particularly children living in poverty. Of course if you did have a fairer tax system then that would not be the case. The needs of our children particularly the most vulnerable would be addressed and would be addressed quite systematically. 
Here in a major area is one of the implications of the kind of tax system the Government is confirming tonight and the tax rates the Government is confirming. It is not as if it is all going well because in order to fund the tax breaks and the tax cuts they did get we all know—the Government members can deny it as much as they like—that we are having to sell our assets in order to make up for this fiscal hole. But the real sad thing is what is happening to our children because of what the Government is doing. I expected Todd McClay to know a bit more about it. After all he is the son of a former Children’s Commissioner. He ought to know what our children are actually suffering. 
Todd McClay 
: If I start listening I will be the only one in New Zealand so I won’t. 
Dr RAJEN PRASAD 
: What the Expert Advisory Group on Solutions to Child Poverty did say—it actually is a very very good report Mr McClay. I commend the member to read it because this is the A team in New Zealand of experts in the particular area of child poverty. You could not get a more illustrious well-informed team: Professor Jonathan Boston Dr Tracey McIntosh— 
John Hayes 
: They’re all communists. 
Dr RAJEN PRASAD 
: Dr Airini Dr Fiona Cram Professor Mark Henaghan Professor—I beg your pardon what did the member say? 
Sue Moroney 
: He said “They’re all communists.” 
Dr RAJEN PRASAD 
: Well what would that member from Masterton know? That member does no justice to his own constituents because they would want to know that that member knows these New Zealand experts. Phil O’Reilly—maybe the member knows that person? Maybe the member does. Professor Richie Poulton Dr James—this is an impressive list and what they have come up with is the most comprehensive plan I have seen which ought to be funded by a proper tax system which is what this clause is about. They have put a lot of thought into this. I commend the member to read the summary because that is probably as much as the member may be able to digest at any one point. Hear what this group has done. It has put together a comprehensive plan as to how all of the things that need to be addressed—aiming for that one dot on the horizon called eliminating child poverty—are addressed in this report. I say to the members opposite that actually the tax system that this clause is about is a system by which the resources are brought together to address this. 
You see for children now is the most important time. In this House we talk about the needs of children as if the numbers—you know if we increase it by 5 percent or 6 percent that is enough. But for children born today their time here is the most serious time and they need these services now. So whether it is in housing whether it is in health and education whether it is Maori children in poverty Pasifika children in poverty community-based and place-based partnerships income and employment or implementing actions and measuring progress all of these matters are addressed in this particular report. It is the most comprehensive one. And I do commend particularly the Minister for Social Development to actually take it into account. I say to the Minister in the chair the Hon Peter Dunne that a taxation system ought to be good enough to support these kinds of activities. They have to be in multiple areas. 
So far what the Government has done—and the Minister in the chair said “Well most of the expenses in this area have increased.” Well it has not increased enough. I am sure that those who like me received a significant tax cut in the tax cuts the Government gave would happily give it away—happily give it away—if we could be guaranteed that the needs of our children in poverty our children who are suffering our children who will cost us multiple billions of dollars in a very short period of time would be addressed now. We as a society would be proud to eliminate child poverty. The reports are here. These programmes that the group has come up with these ideas that the Children’s Commissioner’s expert group is advising are really very very sound Minister and they are worth listening to. 
There is no point just addressing one thing. There is no point just doing drug testing in a particular area or doing a little bit of punitive social policy in a particular area. 
Todd McClay 
: Come on speak to the bill. 
Dr RAJEN PRASAD 
: Mr McClay it is about comprehensive programmes to address the needs of our children. Read the report from the expert panel. This is the problem with members opposite. They do not think. They do not read it. They pick on a small element of party policy their particular ideology which is quite caustic and they do not actually assist the children who ought to be supported through our taxation system. This is about— 
Louise Upston 
: Oh taxation! He mentioned it. Woo hoo! 
Dr RAJEN PRASAD 
: This is about the taxation system I say to Louise Upston. That is what I am talking about. We are confirming in Part 1 clause 3 the tax rates I say to Louise Upston. It is the tax rates that provide the State with the resources to address the fundamental problems in our society. Unless we do that we produce the problems of tomorrow. This is why this Government has no plan. This is why this Government is lost. This is why this Government is going backwards. 
Louise Upston 
: No we’ve got too much of a plan—you can’t keep up. 
Dr RAJEN PRASAD 
: A very small number of people might be feeling better. I am sure the member opposite is feeling better but really our society is not. People out there do not have jobs. They are leaving New Zealand in droves. They are going overseas. None of those figures none of those figures that that—the goals— 
Todd McClay 
: That that that! 
Dr RAJEN PRASAD 
: —that the other side set up the Prime Minister set up in the election campaign are being met. Mr McClay they are not being met. Fifty thousand people are leaving for Australia annually. It is a growth record the biggest record in 50 years. How can Mr McClay be proud of this? A 52 percent increase in unemployment and nearly 50000 more on benefits. How is that something to be proud of Mr McClay? How can that member say and how can that party say that the taxation system is fair? They are saying that the taxation system the rates we are confirming here today is what will make this society great. No. It will pick winners and losers. That side wants to pick winners out of a small group of people but this side is interested in all of our people. It is interested in a fair economy. It is interested in equality— 
John Hayes 
: Pity the community doesn’t agree with you. 
Dr RAJEN PRASAD 
: We have become a very unequal society I say to the member from the Wairarapa. We have become that and unless we have a taxation system that is good enough to meet those needs that our most vulnerable have then what kind of society are we creating? What are we bequeathing to our children? 
John Hayes 
: An excellent one. 
Dr RAJEN PRASAD 
: Well the member might be happy that 50000 people are leaving and that there are more children in poverty. The member might be happy with that. Well this side is not which is the fundamental difference between this side and that side. This is what we are here to fight for and to expose at every opportunity—the kinds of systems and policies that that member and his party come up with and what this bill is confirming today. Throughout the bill there are matters of that kind. We will talk as we go on and discuss other parts about the flip-flop in the policy of the other side but this has gone on for long enough. How long will that member sit up and put up with this society going backward?