Mackey Moana: Taxation (Urgent Measures and Annual Rates) Bill — In Committee Third Reading 
Mackey Moana: Taxation (Urgent Measures and Annual Rates) Bill — In Committee Third Reading 
[Volume:651;Page:262] 
MOANA MACKEY (Labour) 
: 
 I am happy to take a call on clauses 1 and 2. When we deal with the title we can see that this bill would probably best be called the “Taxation (Tax Increases for the Poor Less Security in Retirement for the Low Paid and a Dumber Economy) Bill”. That is exactly what this legislation does. That is what the National Government thinks is so urgent that it needs to be passed at quarter to 11 at night in urgency—tax increases for some of our most vulnerable families less security in retirement because it is gutting KiwiSaver and a dumber economy because it is getting rid of the research and development tax credits. 
With the kind of global crisis we are facing now there are probably a few things that people might expect their Government to do. First they would probably expect it to protect the most vulnerable—those who are most likely to lose their jobs those who are most likely not to get pay increases and those who are most likely to be unable to afford to pay their mortgages pay their food bills or be able to buy the kinds of things they need to send their kids to school. The second thing one might expect one’s Government to do is to promote innovation promote research and development and promote the kinds of policies that will bring in higher-paid jobs increase exports and put more money into the real economy. When the country has such high personal debt levels the third thing one might expect the Government to do is to take savings seriously and try to increase personal savings and increase the depth of capital in the country. 
The astonishing thing about this legislation is not that National has ignored one of those things but that it is that it has ignored all of them. And not just that—it has done the exact opposite of everything one would expect a responsible Government to do in a global financial crisis. Indeed it has done the opposite of what just about every other country we compare ourselves to is considering doing in this global financial crisis. 
The most offensive thing about this bill is that the members who have spoken on it tonight have tried to make us believe that they are doing it because they care about poor people. They have tried to make us believe that they care about the low paid and about workers. Maybe this bill should be called the “Taxation (Merry Christmas Low-paid Workers and You Are Welcome from the National Party) Bill”. 
We heard from Mr Chris Tremain who did a little dance while he said it that workers should be thankful for this legislation. We are sorry but we did not realise we were meant to be grateful for the fact that the lowest-paid workers will have their taxes increased and for the fact that the lowest-paid workers will have their retirement savings slashed. When those workers get to retirement age there will be no point in doing any more extra work because they will lose their independent earner tax credit when they work. They cannot supplement the retirement income they lost through this legislation by working because they will be disadvantaged. Mr Chris Tremain told us that we are meant to thank the National Government for this legislation because it is so good for our workers. 
Then David Bennett came in. Amongst all the clichés he tried to tell us how much he cared about young people. Well I would welcome anyone to listen on the Internet to Mr David Bennett’s speech on the youth minimum wage abolition bill. He called that communism. He said that paying young people the same money for doing the same job as someone who is one day older than them was communism yet we had to listen to speech after speech from Mr David Bennett with all the clichés telling us about how much he cared about those young people. 
Young people are joining KiwiSaver I say to Mr Bennett. Mr Bennett can stand up in this Chamber and tell us until the cows come home that this bill will make more people join KiwiSaver yet he will not answer the simple question as to why those increases are not budgeted for. If the Government is expecting an increase in KiwiSaver participation why is that increase not budgeted for? He now pretends he is reading his papers because he has no answer to that question. 
Those members know that this legislation single-handedly with a stroke of a pen destroys KiwiSaver. They know that this legislation single-handedly with a stroke of a pen will seriously damage the real economy. It will drive jobs offshore at a time when we need them the most. Other countries around the world will be saying: “Thank you New Zealand National Government for getting rid of your research and development tax credit because we have benefited from it.” 
Worst of all this legislation will increase the tax on some of our most vulnerable families. I urge the Maori Party to think very very seriously about supporting this bill. It is not mana-enhancing to take money out of the pockets of the poorest families in this country and give it to the people who need it the least.