Clark David: Customs and Excise (Tobacco Products—Budget Measures) Amendment Bill — In Committee 
Text is incorporated into the Bound Volume 
Clark David: Customs and Excise (Tobacco Products—Budget Measures) Amendment Bill — In Committee 
[Sitting date: 26 September 2012. Volume:684;Page:5725. Text is incorporated into the Bound Volume.] 
Dr DAVID CLARK (Labour—Dunedin North) 
: 
 Kia ora Mr Chairperson. Ka pai. It is an honour again to follow the Hon Parekura Horomia. I have certainly drawn the long straw tonight in getting to follow his fabulous speeches which get to the nub of the matter and the discrimination that is being put forward in this particular part of the bill the Customs and Excise (Tobacco Products—Budget Measures) Amendment Bill. Of course we should not lose sight of the fact that this is actually a step in the right direction in terms of the overall bill. But this part for those who are listening at home is a part of the bill that is aimed at targeting beneficiaries and making sure that life is tougher for them than for anybody else. 
The overall bill of course attempts to make sure that the increases in tobacco pricing reduce the incidence of tobacco-related harm and that is the good part of the bill. We know that National opposed such measures when it was in Opposition so we are a little bit suspicious of course of the timing now that it has a great big fat revenue hole that it is trying to fill. We have heard no word at all from the Minister in the chair through the whole debate and we are beginning to wonder whether there is no response to the accusation that this is a revenue grab. It seems to be pretty jolly clear that it is and I guess the Government is too embarrassed to even try to argue otherwise and that is consistent with what this Government is doing. 
We have heard about the tax on paper boys the tax on cleaners in schools and so on which are the moves the Government has taken in order to make sure that it is grabbing taxes wherever it can because it does not have a plan for the economy. The Government does not have pro-growth tax policy proposals. It is not proposing to put taxes in place that would support manufacturing industries and would support our exporters. Instead the Government is determined to get tax where it can off the vulnerable and to run down our public services through a reduced tax take and ever-reducing budgets. We know that the Government has the worst economic record in 50 years and so it is no surprise in some ways that this tinkering bill is a little bit cynical and nasty at points. 
We know also and this is in some advice that we received in the Finance and Expenditure Committee that the tobacco industry of course will find ways to mitigate the impact of tobacco tax increases. It will smooth the transition to higher prices introduce lower price brands and so on. It is documented behaviour that the researchers put in front of us in the select committee hearings. Unfortunately those on the very lowest incomes those who are beneficiaries whom this part of the bill targets will not have the luxury of riding out price increases in the same way. We know it is likely that some families will suffer. When we live in a situation where a large portion—25 percent—of the children in this country are living in poverty it is disastrous that no commensurate measures are put in place to address this issue in the beneficiary population. The fact is that the budget will be tighter again for them but no additional measures are put in place to ensure that they have the tools and support necessary to kick this damaging habit. 
I want to put on record again that the Labour Party does support this bill overall because it is important that we reduce tobacco-related harm. We are glad that the scales have fallen from the Government’s eyes. It is a shame that it took a great big revenue hole to make that happen but the scales fell from its eyes in order to see the need to increase the excise on tobacco thereby reducing over time as the research tells us the incidence of tobacco-related harm. We know that where there are support measures in place the public and those affected by this kind of legislation will support it. We know that the Government is choosing in Part 2 to put an additional burden on those who are struggling the most but choosing not at the same time to put additional support measures in place. That is why this part of the bill is an embarrassment. We know it was a late political fix a late political addition because it is not spoken about in the regulatory impact statement that was considered by Cabinet. It is not considered in there. It is a cynical move to target the most vulnerable. 
I would really like to hear some attempt at justification from the Minister in the chair. We have heard nothing all evening from the Minister in the chair about this measure. We have heard very little from the Minister in the chair indeed—