Cosgrove Clayton: Taxation (Annual Rates and Budget Measures) Bill — First Reading Second Reading In Committee 
Cosgrove Clayton: Taxation (Annual Rates and Budget Measures) Bill — First Reading Second Reading In Committee 
[Volume:672;Page:18898] 
Hon CLAYTON COSGROVE (Labour—Waimakariri) 
: 
 I will start off by addressing for the record some of the historical inaccuracies from the member who spoke previously and who made accusations against the last Government. It is important to say this in the overall context of the Budget because it was Bill English of course who on taking office acknowledged that the reason we could get through this recession was— 
David Bennett 
: No it’s not true. Rubbish! 
Hon CLAYTON COSGROVE 
: The quote is there for “Old Cue Ball” over there because he does not read the historical record of course. Bill English said that the reason we could get through this recession was that we were in such a good shape as a legacy of the last Government. 
National members talk about the 9 years of a Labour Government and I will provide evidence of that by the following: 9 years of low unemployment 9 years of economic growth and 9 years of surpluses. I will read out the surpluses. I remember being taunted by Bill English when I was Associate Minister of Finance because he said that a Labour Government was too tight—too tight to spend any of the money that we had squirreled away on surpluses. Never in my life would I have thought that a Labour Government would be attacked by National for not spending money. But that is what it did. Let us look at the 9-year record as Ms Adams crawls behind the desk. In the year 2000 there was a surplus of $594 million in 2001 a surplus of $1.4 billion in 2002 a surplus of $2.47 billion in 2003 a surplus of $4.366 billion in 2004 a surplus of $5.5 billion in 2005 a surplus of $7 billion in 2006 a surplus of $7.1 billion in 2007 a surplus of $5.8 billion and in 2008 a surplus of $5.6 billion. I am very very proud to say of those 9 years that we had 9 years— 
David Bennett 
: What were your interest rates? 
Hon CLAYTON COSGROVE 
: I invite “Cue Ball” to read the historical record— 
The ASSISTANT SPEAKER (Eric Roy) 
: Order! 
Hon CLAYTON COSGROVE 
: He did not take offence. 
The ASSISTANT SPEAKER (Eric Roy) 
: I am taking offence. 
Hon CLAYTON COSGROVE 
: You cannot on behalf of another member. 
The ASSISTANT SPEAKER (Eric Roy) 
: I am on my feet; it is not good for the member to start interjecting. I am saying that all members will be referred to by their appropriate titles. 
Hon Rick Barker 
: I raise a point of order Mr Speaker. I respect your decision. I think it is the right decision. I think my colleague was incorrect to say that. But earlier today I did not raise a point of order when Opposition members were referred to as muppets which is as disrespectful as one can get. I say to you Mr Assistant Speaker that all we want is consistency and even-handedness. If the decision is to set a standard like that then I expect that it will be applied evenly to all of us. 
The ASSISTANT SPEAKER (Eric Roy) 
: I think the member will know that if offence is taken the matter should be raised at the time. I cannot rule on that. I will also make the point that there are probably a few subtle differences between a general assertion across a group of people rather than towards an individual. But the standard that I wish to see in here is one of greater respect than we have just had. I think the member nodding appreciates that so let us move on. 
Hon Rick Barker 
: I raise a point of order Mr Speaker. I do not want to extend this matter but I will make the point to you that numerous Speakers’ rulings make it clear that if it is offensive to say something to an individual then it is equally offensive to say it to a party. The reason for those Speakers’ rulings is very clear. If the level of offence is different for a party than for an individual then of course members will start to use the offensive material collectively as a means of avoiding the Speakers’ rulings. I think it is fair that if something is offensive to a member it is also offensive to a group of members. They should be treated equally whether as individuals or as a collective. 
The ASSISTANT SPEAKER (Eric Roy) 
: I have affirmed that I want to see more respect in the House. 
Hon CLAYTON COSGROVE 
: So we had 9 years of surpluses 9 years of low unemployment and 9 years of growth but now we have had a Budget today that has presented us with $16 billion worth of deficit—$16 billion worth of deficit. I say again for the record that on taking office Bill English noted—and I can produce the quote for that honourable member opposite—that we had left this country in good shape. I say that because we have to view this Budget in the context it deserves. 
The Government has now presented a $16 billion deficit. The member who spoke before me spoke about the Canterbury earthquake and the money that has been set aside or put up for that. I say in passing that I am sure the people of Canterbury to be generous will welcome the fact that there is money and that money will flow to assist them. I know that all Canterbury members of Parliament if not all members of this Parliament will welcome that. The issue now is about how that money will be spent. The issue is also that the Government—thanks to the Budget documents—can no longer keep blaming the Christchurch events for the economic woes of this country. That alibi has been torn asunder in the Budget documents today. 
The question is how that money for the Canterbury earthquake will be spent. Now of course Mr Brownlee has all the powers—like extraordinary wartime powers which Labour supported—his own Government department and a bucket of cash. So the expectation of the people of Canterbury now that all the bases are loaded and all the tools are at his disposal is that there will be no more excuses and no more delays and that we will see a speedy acceleration of the recovery at a far faster rate than we have seen up to this moment. I welcome that because I am sure that it is Mr Brownlee’s intention to provide money for businesses—businesses that will be cauterised because of the end of the support package in a couple of weeks and the end of the money and support for employees who have been depending on that—for the heating programme which is not as it should be and which has been delayed for the draughty houses and so it goes on. 
I look forward to that acceleration and to having no excuses and no delays in the Canterbury recovery given the massive resources that this Government has bestowed on itself. But I also say that the people of Canterbury I suspect will not take much of an interest in this Budget—and I do not say that in a disrespectful way—because they are interested in the here and now. They are interested in whether they have a dunny in how they going to get their houses fixed and in what the future holds for them. But there will come a time as they move past that when they will focus on this Budget as they realise that their KiwiSaver has been cut again their ethos of savings has been kicked in the guts again and that $20 less will be going to a family where there are two KiwiSavers—they lose 20 bucks a week because of that. Those families in Christchurch are smart and they will focus on the detail as they move past their own personal circumstances. 
Of course middle New Zealand is whacked again by this Government and the cuts to Working for Families. Many Canterbury families the victims of the quakes who are in dire economic circumstances will be hit in respect of their Working for Families package thanks to this Government. 
Then we come to the asset sales. It is very very interesting because the Government has confirmed in writing in its Budget documents what it intends to do in respect of asset sales which is what it signalled some months ago. The Kiwi public are told they will be better off and the community will be better off if assets are sold. They were told in the 1990s by the then Bolger Government that all would be fixed and everybody would be better off if we flogged off the family silver. They were not better off and people remember that. The economic proposition being put to them in this Budget aside from the fact— 
Hon Maurice Williamson 
: Wasn’t it Labour that sold a lot more assets— 
Hon CLAYTON COSGROVE 
: We sold assets in the 1980s but the difference is I say to Mr Williamson that we learnt. And in 9 years—[ 
Interruption 
] They do not like it. It is like the old  
Dad’s Army 
 thing. They do not like the old cold steel. The difference is that yes in the 1980s we sold assets and when we came back into power for those 9 years of surpluses we never sold a thing. The difference is that Maurice Williamson who was a Minister in the Bolger Government who was party to selling all those assets and who is now a Minister in the Key Government has learnt nothing. He never made it through SmartGate at the airport. He has learnt nothing. I say to Mr Williamson “Eat that one.” because he has learnt absolutely nothing—Mr Williamson and the Government go to the New Zealand people and tell them the proposition. 
The Budget documents say that New Zealand investors will be at the front of the queue for shareholdings in these assets. How will National members guarantee that? They could not guarantee it with Contact Energy which is now owned by foreigners. Yes a few Kiwis may have grabbed a few shares but the truth is that it is now owned by foreigners. So I ask Mr Williamson given that he is now selling assets twice how he will guarantee that Kiwis will be first in the queue to buy by the way the assets they already own. They already own them. 
Then I ask Mr Williamson the proponent of SmartGate—maybe he ain’t been through it—where all the cash is that these Kiwis will have to buy the shares and the assets they already own the cash that is awash in the economy and in the wallets of Kiwis. Where will they get that from? I am sorry. Mr Williamson is a bit silent now. Kiwis do not have the cash given the cost of living they are facing to make ends meet let alone to go and buy the assets that genius for the second time in a second administration over nearly 20 years has decided he will flog off again. National members cannot guarantee that Kiwi mums and dads will be first in the queue. They cannot guarantee that those Kiwi mums and dads can buy if they have the cash which they do not assets they already own. That is the proposition the Government has put to them. It has borrowed for tax cuts for the rich blown all the cash the credit cards are maxed out so what it will do is flog off a few assets. I ask Government members what the plan is. Then what? After they have flogged the assets what do they then do? 
A group of those assets are power companies. The other thing that Kiwi mums and dads know is that people who invest a dollar in a business want a return. They want a return otherwise they would not invest. The interesting point is that the foreign interests that grabbed the energy assets will naturally want a return. And how do they get a return? Naturally it is by making a profit. And how do they make a profit? They raise the price of what they are trying to sell. That means for Kiwi mums and dads that if they had the cash to buy back—as old “Curly” in the corner would know because he was at university and did an economics degree— 
Aaron Gilmore 
: I raise a point of order Mr Speaker. My name is actually Aaron Gilmore not “Curly” and I wish the member would use that name properly in the House. 
Hon CLAYTON COSGROVE 
: I withdraw and apologise. As Mr Gilmore— 
The ASSISTANT SPEAKER (Eric Roy) 
: Hang on. I thought we were doing OK. Offence was taken. I ask the member to withdraw the comment. 
Hon CLAYTON COSGROVE 
: I withdraw. From someone who is follicly challenged I was offering a compliment. But I withdraw and apologise. If only I had his style and those follicles and those wonderful locks akin to Samson. 
What we have here is a proposition that sells a bill of goods to the New Zealand people and that says that if they have a bit of money they can buy shares they already own. Then the energy companies will be flogged off and the power prices will go up. This is a wonderful Budget for people is it not! KiwiSaver is cut Working for Families is kicked in the guts and now they flog off the assets.