Sio Su'a William: Taxation (Budget Tax Measures) Bill — First Reading Second Reading In Committee 
Sio Su'a William: Taxation (Budget Tax Measures) Bill — First Reading Second Reading In Committee 
[Volume:654;Page:3995] 
SU’A WILLIAM SIO (Labour—Mangere) 
: 
 Thank you for the opportunity to take a call on the Taxation (Budget Tax Measures) Bill. Mr Bennett said that this is a fine day for National and for the Government. I say it should have been a fine day but it was not. It was a disappointing day. Many of the people who have been listening to this debate are now looking towards a long dark and cold winter. This Budget was about broken promises about no jobs whatsoever and about continuing unemployment for many hard-working communities throughout New Zealand. This Budget means that a lot of ordinary families will be reduced to receiving lower incomes for the next 5 years. That is what has been forecast in the Budget by this Government. 
Earlier I listened to the Hon Roger Douglas conveying his philosophy to this House. I felt that it was a cruel philosophy. It is a philosophy based on the law of the jungle whereby the strong survive. That is not the kind of New Zealand that I am prepared to create. At least one thing is that I can appreciate that the Hon Roger Douglas was making things clear for the rest of the nation about that kind of philosophy. It is not the kind of philosophy that I support but at least he has been up front about it. But I cannot say that about the National Government and Mr Key. 
The bill that we are debating repeals the National Government’s tax cut promises. This Government made promises at the beginning of its becoming Government and rammed through legislation to give tax cuts to 3 percent of the population. National members campaigned hard that a National Government would give tax cuts and now we are having to debate this matter again under urgency to repeal it. Yes the Labour Party is supporting the bill because tax cuts was the wrong thing to promise in the first place and it continues to be wrong. 
Earlier today we heard from the Prime Minister. He cracked a few jokes at the expense of the Labour Party and all the National MPs laughed and took great joy and relish in making fun of us. As usual the public would have been watching that and would have noted that Mr Key uses jokes and laughter to hide the truth. What is the truth? I will quote it. John Key in his speech at the National Party election campaign launch on 12 October 2008 stated: “In laying out our economic plan National has been very clear about our priorities. We all know what will be the first to go under Labour whether they want to admit it or not and that is the rest of their tax-cut package. Well unlike Labour I’m going to be straight-up about my priorities. That’s why I’m sending a card to all of you. It’s called My Key commitments to You and it will be delivered to every household in New Zealand over the next 10 days. In it are 11 commitments that I make to you.” 
The very first commitment on “My key commitments to you” reads: “Strengthen the economy increase after-tax incomes and ensure Kiwis can get ahead under their own steam by reducing personal taxes on 1 April 2009 1 April 2010 and 1 April 2011.” Mr Key then stated “unlike Labour we won’t cancel our tax cuts.” What does this bill do? It proposes that the final two tranches of personal tax cuts in the 2010-11 and 2011-12 income years be repealed. That is what this bill is about. The tax cuts are being repealed. 
This is a Budget of broken promises. Mr Key promised the nation that he would give tax cuts he was laughing about it making fun of it and now we are having to repeal them in urgency. Mr Key and the National Party should never have promised to have tax cuts. They knew it was wrong. They were warned. The Labour Party protested about them. The Government should never have implemented the tax cuts particularly when they favoured higher-income earners. What about the ordinary New Zealanders who not only are working day and night to make their families better off and trying to support their families but also are moving the engine of New Zealand ahead? 
When the tax cuts were introduced they created greed and individualism amongst many people who probably would not have ever considered tax cuts. It was probably the wrong thing to do because in these times and in the circumstances that we find ourselves in we should be working together. We should be helping the weak those who need help the most. But the Government did not give tax cuts to that group of people. 
John Key in my view owes New Zealanders across this nation an apology for the Government’s turn-round. We know because before the election he made those promises and to now renege on them is wrong. It should never have happened. I call on Mr Key to be up front and go out to the public and apologise. He should not smile about it. He should be serious. These are serious times and people want real solutions that will help them to overcome the recession that we are currently in. 
It is a shame that the bill makes a liar of the Prime Minister and voids his personal signed guarantee to the people of New Zealand. 
Mr DEPUTY SPEAKER 
: The member cannot use that term. He should withdraw that comment and carry on. 
SU’A WILLIAM SIO 
: I withdraw that comment. The bill shows up the Prime Minister as somebody who did not tell the truth. He gave a personal guarantee to the people of New Zealand that they would receive personal tax cuts for each of the next 3 years. People would have made plans based on that statement and now what happens? What will happen to those plans? 
The only way that tax cuts were ever going to provide an economic stimulus was if the people receiving the tax cuts spent them and the only way the tax cuts were ever going to provide any meaningful relief to New Zealanders in an economic downturn was if they were directed at those who need them the most. National’s tax cut promise was completely misguided on both of those counts. Either John Key was oblivious to the catastrophic recession when he promised tax cuts or he did know and chose to continue anyway. 
That is why I say that the Prime Minister Mr Key was not telling the truth. There are harsher words that ought to be used but I know that you Mr Deputy Speaker would pull me up again and ask that I withdraw them. The Prime Minister did not tell the truth. He knew that what he was doing would not eventuate. He went ahead anyway rushed things through this Parliament in the beginning and now we are having to rush through a bill to repeal the tax cuts. He is using I believe the recession to be able to repeal them. 
Listen to what Colin Espiner said about the Budget in his blog today. He stated “there’s no real vision or big new ideas.” The Government has already raided KiwiSaver and now it has stopped contributions to the New Zealand Superannuation Fund. How will the more than $20 million lost to the Superannuation Fund be paid back sometime in the future? Mr Colin Espiner asked what we got for this recklessness. We got nothing; not even new training not even new investment to ensure that this economy will grow. 
A lot of fancy words are being used when I listen to this debate but they are all hollow words. There has been no substance. I know that families out there who are listening to this debate will see the hollowness of this Government’s words.