Bennett David: Taxation (Urgent Measures and Annual Rates) Bill — Third Reading 
Bennett David: Taxation (Urgent Measures and Annual Rates) Bill — Third Reading 
[Volume:651;Page:289] 
DAVID BENNETT (National—Hamilton East) 
: 
 It is a pleasure to rise in the third reading of the Taxation (Urgent Measures and Annual Rates) Bill. This bill is an example of the National Government delivering to the public of New Zealand of the National Government making firm and wise decisions in the best interests of this country and of the National Government having a plan and a direction to build and rebuild this economy so that we can actually deliver the social services that the people of New Zealand deserve and expect. 
The reality is that the legacy of the previous Government was a very poor economy and a recession hitting here before the world recession hit. We had some of the highest interest rates in the OECD and high inflation and there is a decade of deficits ahead for the incoming Government. That is the reality of what Labour left behind for this country and for the National Government of the day. With this legislation we are taking the first steps to turn that round and provide the direction and incentive for New Zealanders who want to get ahead and prosper. These tax cuts are exactly that; they are there for ordinary hard-working New Zealanders who want to make a go of their lives and we want to give them a growing economy so that they can do so. 
This legislation is also a stimulus for the economy at a time of economic decline around the world. We need to be out there putting some money back into the economy so that it grows and provides opportunities for employment for all New Zealanders in these tough economic times. 
There is one group of New Zealanders whom we need to concentrate on when we look at this bill and that is our young people. They are people starting out on their life process. They have an education and they are starting jobs. They tend not to earn too much money when they are young and they need to have some breaks and incentives. That is what this bill provides. We want to give some hope and direction to the young people of New Zealand who want to buy a house and start a family. Those people need some incentives and some support and this bill gives them a chance. It puts some money in their hands so that they can save and deliver the dream they have—the Kiwi dream of starting that family owning that house and building a better brighter future for themselves in this country. That is what this bill is about: it is about investing in the young people of New Zealand it is about investing in the future of this country and it is about giving young people the chance to take a risk and be a success. 
Those people do not have to leave New Zealand now; they have a future here. They can see a future here because we are delivering the right economic environment for them to have that future and that direction. I think this bill is very important for the young people of New Zealand. It is part of setting up the economic growth that will provide opportunities for them in the future but it also helps them in a practical way in their current circumstances. It provides the impetus for them to get ahead and to buy that first house. 
Hon David Cunliffe 
: How? 
DAVID BENNETT 
: Because it puts money in their hands and that is what the Labour Government would not do. Labour would not put money in people’s hands. Labour sat on years of Budget surpluses. It was happy to sit there take that money invest in US stock exchanges and lose money. And now Labour members come back here and criticise things like this. 
Labour would never give a tax cut. The Hon Dr Michael Cullen is against tax cuts; that is the reality. This is not a case of Labour putting up a big fight. If this is the best fight that it can put up Labour members will be gone before they know it. There is no fight from Labour about this bill. Labour does not like tax cuts. It just does not like them. It does not want to give money to people so that they can make their own choices. That is the reality. Labour has never given a tax cut to people. Where is the tax cut the “chewing gum tax cut” that the Hon Dr Michael Cullen was supposed to deliver for the people of New Zealand? It has gone. The Labour Government had a Budget surplus as Chris Tremain said but it did not deliver that tax cut. Now Labour is voting against another tax cut for individual New Zealanders. Labour does not want to give tax cuts to hard-working New Zealanders. That is the message of the day. The message of the day is that Labour is against New Zealanders hard-working Kiwis keeping the money that they have earned and having some ability to decide their own future. 
Labour inherently believes that it knows better than ordinary New Zealanders. Labour members think they know better than New Zealanders how to spend their money. That is what Labour is all about. That party will not give tax cuts. But National members believe in our people. We believe in our young people and we are going to give them the chance to make a future in this country. We are going to give them that direction so that they can make their own choices and can deliver for themselves and their families what they want. That is the choice the public made at the election a few weeks ago. That is what National will deliver to this country and this legislation is an important element of it. 
Not only do we have personal tax cuts—something that Labour is ideologically opposed to—but also we have the independent earner tax credit which is very important for young people who are trying to get ahead. It gives them that start. We also have the KiwiSaver changes which are important for young people because they mean that they can now get into that scheme. The 4 percent rate was just too much for a lot of young people who are trying to get ahead. The 2 percent rate will give a lot of them the opportunity to join KiwiSaver. It will be very difficult for New Zealanders to save in the coming years because the economic conditions will be very difficult. Anything that we can do to provide an opportunity for New Zealanders to save should be encouraged given the tough economic times that are coming. It is the economic reality— 
Hon David Cunliffe 
: I raise a point of order Mr Speaker. I seek your advice. Standing Order 106 refers to a member’s rights in respect of him or her being misrepresented. What would be your judgment where a member is misrepresenting himself or his own party’s position? What recourse would the House have? The member is saying that this bill will benefit young people by providing more retirement savings. It is an accepted— 
Mr SPEAKER 
: By way of point of order the member is actually introducing a debating matter. That is not something I consider appropriate at all. According to the Standing Orders points of order are not to be used to introduce debating material. 
DAVID BENNETT 
: Thank you Mr Speaker. For the new members of the House I say that that is a common ploy that members of the Opposition use when they are in trouble and know that a member’s speech is hitting at the heart of them. 
Hon Dr Michael Cullen 
: I raise a point of order Mr Speaker. As you well know once a ruling has been given by yourself we do not proceed to debate it in any shape or form. 
Mr SPEAKER 
: The member has made a perfectly valid point. 
DAVID BENNETT 
: This legislation is important for the youth of New Zealand. It delivers the direction and the incentive for them to go ahead and provide the future that they demand in this country. National will deliver that future. 
One of the hardest things during the campaign trail was to hear Labour Party members out there talk about research and development. This legislation has a research and development component to it through the tax credit. Labour members tried to be very regal in the campaign saying that they were there for the research and development community and that they would provide some great scheme for the future. The reality is that at the same time as they were talking up their research and development policy they were laying off people from AgResearch in Hamilton. There is a word that cannot be used in the House that describes that and it begins with the letter “h”. 
Hon Tau Henare 
: What’s that? 
DAVID BENNETT 
: Yes what is it? The Labour Government was laying off scientists—the scientific base of this country. Scientists in New Zealand are paid 15 percent less than any other profession. Labour had 9 years in Government—9 years of the best economic conditions—and what did it do for scientists in New Zealand? Nothing! What did it do during the election campaign for scientists who were going to lose their jobs? Nothing! What do Labour members actually think about research and development? They do not give a damn about it. They give a damn about their little special projects only. They gave redundancies; that is what they gave scientists during the election campaign. It took National to stand up for those scientists and deliver to them a future. That is the reality of what has happened. Labour members cannot go around the country any more talking about research and development; their heads should be hanging low in shame at the way that they treated scientists in this country for 9 years. The approach they took was shameful. 
It is pretty rich for them to come into this House now and talk about research and development tax credits which are not what the science community wants. The science community wants a strong growing economy and we will deliver that. These tax cuts are the first step in delivering it. Not only are we delivering that economy but we are giving the young people of New Zealand the chance the inspiration and the aspiration to follow their dreams. We are giving them some reward for making good bold decisions. This measure will go down in history as the first step and one of the important steps in delivering a brighter future for New Zealand and our young people. Thank you Mr Speaker.