Hughes Darren: Taxation (Budget Tax Measures) Bill — In Committee Third Reading 
Hughes Darren: Taxation (Budget Tax Measures) Bill — In Committee Third Reading 
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Hon DARREN HUGHES (Labour) 
: 
 Of all the lies in the Budget Part 1 of the Taxation (Budget Tax Measures) Bill contains the biggest one because Part 1 sets the tax rates for the forward period. 
Hon Member 
: How come they’re not taking points of order? 
Hon DARREN HUGHES 
: Because members opposite know exactly the extent to which the Budget contains a lie. It is made most clear in Part 1. Part 1 actually increases taxes for working people in New Zealand. Part 1 increases taxes from what they would be if Part 1 was not here. That is the essence of this part. It puts taxes up for people; it does not put taxes down. Members opposite ought to reflect on that. I ask how many of them went campaigning around New Zealand saying that within 6 months of getting into Parliament they would be supporting a bill in Parliament to raise taxes because that is what they are doing. 
Members opposite should also realise that Labour has maintained a consistent position on taxes. We maintained that position before the election when we told National members that what they were promising could not be afforded. We said they would have to borrow for the tax cuts but they said that they would not borrow for them and that they would find a way of paying for them because they are so important to them. They went through the election campaign saying that. They got elected and said in the Speech from the Throne that they would introduce tax cuts. They brought in a bill in December ironically under urgency without the Opposition having seen the bill before it was debated—exactly like this bill. We did not see this bill until we started to debate Part 1 just a few calls ago. Once again National members asserted that tax cuts were affordable. But here they are today raising taxes for New Zealanders. 
In particular I want to focus on the independent earner tax credit because that is covered in Part 1 as well. It increases the tax burden for working New Zealanders who do not receive Working for Families. We were told during the election campaign that tens of thousands of workers had missed out on assistance from the Labour Government and that they needed a National Government in order to get a new category of relief called the independent earner tax credit. But the changes to it are being abolished in Part 1. Those working people will continue to miss out because of what National is doing. 
I want to take up a point that Simon Power raised last night. He said that the Opposition should be opposing this bill simply because we are the Opposition. He said that we needed to learn a lesson about how to be an Opposition. Well I think we have taught the Leader of the House many many lessons about how to be an Opposition. I signal today that there are many many more tutorials to come for that member in the 2½ years ahead. 
Hon Gerry Brownlee 
: I raise a point of order Mr Chairperson. I think it is worth noting that those members are still in Opposition. 
The CHAIRPERSON (Eric Roy) 
: That is not a point of order. 
Hon DARREN HUGHES 
: I do not want to comment on the point of order but it is a wonderful segue into my very next point. 
The CHAIRPERSON (Eric Roy) 
: The member will not comment on the point of order. 
Hon DARREN HUGHES 
: Gerry Brownlee’s comment is exactly the kind of arrogance from the Government that will cause those members so much trouble. If Simon Power wants to tell us about being an Opposition let us teach those members a lesson about being a Government. They should tell the truth. They should campaign on something and then deliver on what they campaign on. That is the lesson of being a Government. They cannot deliver a Budget that contains a lie like Part 1 does. It contains a direct lie to the people of New Zealand. 
I know that the brat pack runs this Government and I know that they wanted to be so different from the last National Government which broke all its promises within 6 weeks of taking office. So with the strategic genius of Gerry Brownlee they have decided to wait 6 months before they break their promises to the people of this country! They campaigned on the decade of deficits saying how terrible the books were under Labour that there was a decade of deficits and that—hint hint boys—things might not have been so good. But they still budgeted for their tax cuts which have now been replaced with a decade of deferrals by way of contribution to the Cullen fund which we will come to in Part 2. 
Part 1 lifts taxes for working people. It takes away the independent earner tax credit that we were told just 6 months ago under urgency was such an important new feature of the tax system. They knew that this was the situation and they campaigned on something they knew could not be delivered. What a surprise to see the media headlines this morning about the tax cuts! All those hundreds of thousands of people who switched their votes between 2002 when National did not offer tax cuts and 2008 when it did offer them have been ripped off badly. The  
New Zealand Herald  
has got it right. It writes about the IOU from Bill English the man who campaigned on tax reductions but who now brings a bill before the Parliament that in Part 1 lifts taxes for people in this country. That is the effect that this bill has. 
The one thing I have always admired about the National Party is the ability of its members to stick to the party line. Whatever line they are given whatever line they are fed they use religiously. During the election campaign they said that tax cuts were needed. After the election they said they would stick to their word but today they have broken their promise. Members opposite so smugly and arrogantly ask to be rewarded for the fact that the No. 1 promise on their pledge card has now been broken. It is a disgrace.