Foss Craig: Taxation (Annual Rates and Urgent Measures) Bill — In Committee 
Foss Craig: Taxation (Annual Rates and Urgent Measures) Bill — In Committee 
[Volume:628;Page:756] 
CRAIG FOSS (National—Tukituki) 
: 
 I am opposed and my party is opposed to this bill. I want to concentrate on a few points—why the bill is being dealt with under urgency the “wet” the Working for Families package student loans and party votes—and I have only 5 minutes! I also want to note who are supporting this bill and why they are doing so. 
Why does this bill require urgency? I ask why we are in urgency right now when more cash is being siphoned from hard-working businesses that are now taking an extra 7 days to pay their bills—45 days as opposed to 35½ days in the last quarter. There is a surplus that was charging towards $8 billion at last look. Why is the Government so keen to take a $2 billion hit on New Zealand’s balance sheet my balance sheet and my family’s balance sheet? The future of my country is about to take a hit of $2 billion because of the write-off of interest on student loans. This bill will be voted on under a party vote but I suggest that all those members opposite intending to vote for it should examine their consciences. How on earth could New Zealand First members United Future members and in particular the Maori Party members vote for this bill? How can they play politics with the future of New Zealand by racing through this bill? The funds are not required right now. 
I would like to touch on the “wet”—the wine equalisation tax—particularly as I represent the best wine-growing area in New Zealand. I want to express one point of caution with the wine equalisation tax—that is New Zealand is starting to accommodate Australian tax law. Of course this is a good measure for the winegrowers of New Zealand— 
The CHAIRPERSON (Hon Clem Simich) 
: The member will come to Part 1 please. 
CRAIG FOSS 
: I apologise Mr Chairperson. I will move on to the Working for Families package. 
The CHAIRPERSON (Hon Clem Simich) 
: No Part 1 only. 
CRAIG FOSS 
: Income tax rates—OK sure. Income tax rates need to be cut and they should be cut. Treasury has more than enough money to allow for the cuts. We have a crisis coming in New Zealand. Our exchange rate is fluctuating and it is about to plummet. Interest rates are going up every day. The official rates have gone up nine times in the last year. Mr Bollard recently suggested that we should have room for tax cuts because New Zealanders are essentially rational investors. Mr Cosgrove recently accused the National Party of treating taxpayers as silly. I suggest to Mr Cosgrove that they are rational investors because Mr Bollard is increasing interest rates to stop people from borrowing to help slow down the economy which has been pumped along by the public sector. As we have seen in the recent Reserve Bank policy announcement public expenditure public GDP growth is about to stay constant at about 5.5 percent for the next few years. Private growth is plummeting to negative in 2007-08. We need room for tax cuts. Locking New Zealand in at rates of 33 percent and 39 percent with the difference between the income rates for trusts and personal income tax and of course for corporate tax needs to be readdressed. 
I again suggest that members examine their consciences. Can they look taxpayers in the eye and say that this is good legislation and this is a good bill? Can they seriously look them in the eye? They should stop playing politics with New Zealand’s future and take only as much as they need to run the country in the best and most proficient way and let those who earn the funds in the first place look after their future and make their decisions. If they were brave enough and progressive enough to cut people’s taxes and leave extra money in their pockets they might be surprised to find that people start paying off their mortgages. 
 If these rates are stuck in stone and if this bill does go through New Zealand will become the land that time forgot because all the decent earners are whipping across to Australia. We have the dinosaurs: the “Cullenosaurus” taking taxes from all over the country a front bench full of “MPosauruses” and a party that promotes only “policyosauruses”—a party with a policy of tax structures tax rates and fiscal policies that are backward-looking not forward-looking and not investments in New Zealand’s future; they are only constant references to the past. If we do not restructure and if we do not examine and do what is fair with these tax rates New Zealand will be stuck at the very best right where it is right now and many other countries will race right past us.