Cosgrove Clayton: Taxation (Urgent Measures and Annual Rates) Bill — First Reading Second ReadingText is incorporated into the Bound VolumeCosgrove Clayton: Taxation (Urgent Measures and Annual Rates) Bill — First Reading Second Reading[Sitting date: 09 December 2008. Volume:651;Page:98. Text is incorporated into the Bound Volume.]Hon CLAYTON COSGROVE (Labour—Waimakariri): Before I get into the cut and thrust of the bill I recall the member said that people had forgotten what happened a few weeks ago in the election. I recall in this Chamber some weeks before the election putting it to Mr English that if he was re-elected—and he was—he would engage in Muldoonism as Muldoon did by pulling the rug out from under every Kiwi who was saving at the time in the 1970s. I looked upHansard and I termed it would be the second-biggest example of economic vandalism that would ever come into this Chamber. I was heckled even by old hothead over there. He was a hothead in Opposition and is a hothead in Government. I was heckled by him and his ilk that it would never happen. They said I was telling porkies. Tonight this legislation was confirmed by old tumbleweed and by Mr Foss whose greatest claim on the Finance and Expenditure Committee was to go before it—as committee members do—and get taxadvice from officials. The only problem was that in his case he was asking specific questions about his own personal tax returns.Tonight is a very very serious evening for this country. It is a pity that Mr Hide did not take a call because I will pick up on a comment that was made before. I read page 10 of the explanatory note of the bill which states: “However due to the timeframes involved the RIA consultation requirements have not been met.” I looked over in front of Sir Roger Douglas and I saw something akin to a—Hon Annette King: A dried arrangement?Hon CLAYTON COSGROVE: I would not say that but something that had a tan was sitting in front of him. It was the “Minister for Regulatory Busting” or whatever he is called today. Mr Hide is the man who went onClose Up and said “Send me your problems. Send me all your regulatory problems. Here is my address care of Parliament.” Rodney Hide said that he would fix them. There was not a whimper or a comment. This is the first piece of legislation to come into the House today and it does not meet the regulatory impact statement threshold. I say that if that is Mr Hide’s work ethic if that is how he is going to fix things then goodness only knows what will come in in further legislation.The people have judged they made the call on 8 November and as of tonight the people will make the call again. I look forward to Mr Hide and his robust ways. He is the man who will fix everything. He will get rid of the red tape and get rid of regulation. But he could not even read up to page 10 of the explanatory note of the bill. Was he not consulted? Who knows. Maybe he is not worth consulting. Maybe he has become just a sort of lapdog of the National Party and he is just not worth it. Maybe Rodney Hide will sign it off and it does not matter what is in it.I say to the National Party tonight that the truth about this bill is that when Labour was elected in 1999 it inherited economic archaeology from National. Labour inherited an economic graveyard from National. Labour has left National with an economy where debt is slashed where debt is halved and where we are one of the best placed countries in the world to deal with an economic crisis.Then of course we had the Speech from the Throne. As Dr Cullen said tonight we had the admission from Mr Key that fiscal prudence is surrendered and debt borrow and hope are on. The Speech from the Throne stated: “The Government will run an operating deficit this year and is likely to do so for some years to come.” For how many years? As my colleague Mr Cunliffe said where are the debt track documents? Where are the projections?Hon Dr Nick Smith: Tell us about your projections on ACC!Hon CLAYTON COSGROVE: I will get to accident compensation with that member in a little while.Hon Dr Nick Smith: Oh good!Hon CLAYTON COSGROVE: We will get to the member do not worry. Where are the debt tracks? Where are the projections for when the deficit will end? Government members do not have them. They have not done the work. They have presented a bill to the House that is the old-fashioned Tory ethos on life. It is a bill that Mr Foss would do well to read because if he read it he would know that those at the bottom are worse off. Those at the bottom will have a tax increase and those like Mr Key and his lofty crew over there—the million dollar men and women—are 120 bucks a week better off.As a small scholar of history that to me is just the usual Tory legislation. Before the election we heard the slogans. If one reads National’s tax policy which is an interesting document it says this: “National also knows that New Zealanders want a tax system that is fair.” What is fair about a mum and dad with three kids on 55 grand losing $14a week? But National said: “Choose a brighter future”. Members will remember the slogans—the warm fuzzies—“Choose a brighter future”.Then the tax policy goes on: “National’s tax package will give households confidence and some cash back in their pockets.” Well it will for Mr Key. It will for the chief executive of Telecom to the tune of 500 bucks a week but a family on 50 grand that is in KiwiSaver with one child loses $70 a week.Hon Dr Nick Smith: Back to the politics of envy!Hon CLAYTON COSGROVE: I say that the politics of envy is this—Hon Dr Nick Smith: The politics of envy!Hon CLAYTON COSGROVE: Is it envious then for a family with one child to lose because of that member $70 a week because of his policy?Hon Dr Nick Smith: Oh the politics of envy!Hon CLAYTON COSGROVE: He says that is envy. He says that when a family on $50000 with one child loses $70 a week thanks to his Government that is the politics of envy. No I say that is the politics of despair for that family. That arrogant puffball over there who now sits in his ministerial car and is paid a huge salary will not lose $70 a week but he says that when a family with one child earning 50 grand loses $70 a week it is the politics of envy. Does that not show the typical Tory at his best? It is envious to get upset about a family that loses $70 a week—Hon Dr Nick Smith: Get over it Clayton!Hon CLAYTON COSGROVE: Like hell I will get over it. I will bring that back to the member every day in this Parliament for 3 years. We should get the family in—Hon Dr Nick Smith: I’m terrified!Hon CLAYTON COSGROVE: The member might be terrified if the family comes to Parliament. He can explain to them why they lose $70 a week. He can explain why he took it. He can explain why he calls that the politics of envy. What will the member say to the family that loses $70 a week?Hon Dr Nick Smith: I’ll say the politics of envy is dead.Hon CLAYTON COSGROVE: I did not think this could get any better. I hope the Hansard people got that verbatim.This is the plan to deal with the recession. The plan to deal with the recession is to give tax cuts to those at the top end to give tax increases to those at the bottom end and to gut KiwiSaver completely. I am no expert but I would have thought that in a recession if there was ever a time that we wanted people to save and to incentivise them to do so it is now. The Government has gutted research and development tax credits. We know that business people flew from all over the country to Auckland to work over Mr English before the election when he made that announcement. We know what he said to them. He said: “Oh we’ll deal with it some other way. We’ll make it go away. We’ll deal with it some other way.” I would have thought in a recession that if there was ever a time to have research and development tax credits where we incentivise businesses to produce new and innovative products and services thereby creating new and innovative jobs it is now. But that is gone or it will be under National.Tonight we have had what I and every other colleague on this side the House predicted would happen if National got in. We predicted that the rug would be pulled out from under every saver—800000 of them. Mr Foss says that people do not want to save. Dr Cullen’s package—Colin King: They can’t afford to save.Hon CLAYTON COSGROVE: If they cannot afford it why are 800000 - plus people in it you plonker? That is not the politics of envy it is the politics of common sense. People are very smart and that is why 800000 of them are in KiwiSaver. I say to the member opposite Nick Smith that his words tonight have been very helpful and Ithank him because they will hang like a noose around his neck for the next 3 years. When we go and talk to families and we listen to them and they explain to us why they are losing money and that the Government is now taking money from them we will point them in the direction of the Hon Nick Smith and he will say that it is the politics of envy.