Lotu-Iiga Sam: Customs and Excise (Tobacco Products—Budget Measures) Amendment Bill — First Reading Second Reading In Committee Third ReadingText is incorporated into the Bound VolumeLotu-Iiga Sam: Customs and Excise (Tobacco Products—Budget Measures) Amendment Bill — First Reading Second Reading In Committee Third Reading[Sitting date: 26 May 2016. Volume:714;Page:11449. Text is incorporated into the Bound Volume.]Hon Peseta SAM LOTU-IIGA (Associate Minister of Health): It is an honour to take a call in this the Committee stage. I want to take a quick call and answer some of the questions that have been put to me as the Minister responsible for this piece of legislation.Many across the Chamber have talked about giving a cast-iron guarantee around public health spending and yet everyone in this Committee knows that the taxation from this bill the tax that is derived from increasing tax on tobacco is going into the consolidated account. Everyone also knows that this Government is increasing health spending by $2.2 billion over the next 4 years and we know that it is going towards more elective surgeries because we have heard questions in the House almost day after day around elective surgeries. And when we put it into elective surgeries—that is $96 million worth of elective surgeries over 4 years—Hon Annette King: Over 4 years.Hon Peseta SAM LOTU-IIGA: Yes over 4 years. Yes she is on to it. It includes $169 million for disability support services which I am responsible for and I am quite proud of the fact that we are increasing that. It is going towards increased spending on Pharmac. We know that the people of New Zealand asked for that and that is what Minister Coleman and the Prime Minister have put more money into—as a Cabinet and a Government we are putting more money into Pharmac. So we know that that money is being well spent in the next few years catering for the needs the expectations and the aspirations of all New Zealanders. That is the end of the matter.I was also asked about whether this tax is going to have any impact. In fact some across this Chamber have suggested despite the evidence that has been produced by experts not just here in New Zealand but around the world that it will not have any impact. I suggest to members that they read some of the documents on the Table. The regulatory impact statement refers to the increase being expected to result in a 2.3 percent decrease in smoking rates—that is from 15 percent to 12.7 percent in the daily smoking rates over the next 4 years. That is not just the effect of the taxation. It is also the effect of all the smoking cessation programmes including the face-to-face programmes Quitline nicotine replacement therapy—all those types of interventions that make a difference in the lives of people who smoke. So we are getting a 2.3 percent decrease just from this taxation alone in the next 4 years. I have also been asked about the effect on the Consumers Price Index.Fletcher Tabuteau: Have you?Hon Peseta SAM LOTU-IIGA: Yes. I think Mr Clark asked about that about an hour and a half ago. I think those members misunderstand how this piece of legislation works because what is actually happening is that the price increases are excluded from the social assistance programmes. That is what is in the bill. I suggest to members that they read the bill. My first reading speech talked about the statutes that are being amended by this bill so I suggest that they read those provisions.I have also been asked about standardised packaging. I am getting away from the tax aspect of this bill because although we are focused on increasing tax we know that tax is not the only measure and that standardised packaging legislation is on target. It is in the House. It has been before the select committee and it is progressing in a way that—[Interruption] We know that it will go through the House this year. The Prime Minister has gone out and said it. I have said it. It is progressing through the House.I just want to say that I do thank the members opposite. We have had a rigorous debate in this Chamber. I think most parties in here will agree that this increase in taxation at 10 percent for 4 years is going to make a difference to New Zealanders’ lives.