Nash Stuart: Taxation (Business Tax Measures) Bill — In Committee 
Nash Stuart: Taxation (Business Tax Measures) Bill — In Committee 
[Volume:653;Page:1997] 
STUART NASH (Labour) 
: 
 I rise in support of the Taxation (Business Tax Measures) Bill because I firmly believe that this country deserves a Parliament that works together to implement legislation that alleviates the pain this recession is beginning to visit upon the small to medium sized enterprises that form the backbone of our country. A small to medium sized enterprise is defined as a company that employs 19 or fewer employees and small to medium sized enterprises employ about 60 percent of all Kiwis. I am not supporting this bill because I believe that it is as good as it could possibly be or because it is part of a plan to drive economic growth and stimulate the economy or even because I think it goes far enough to really make a significant difference—because I do not believe that; far from it. However the Finance and Expenditure Committee has acted in a multipartisan manner—as has been mentioned by the previous speaker and my colleague Mr Cunliffe—over the passage of this bill through to the Committee stage because it is about New Zealand. It has to be about New Zealand in this sort of economic climate and with this recession looming. 
I have spoken to friends who own or deal with small to medium sized enterprises and they are grateful that members from both sides of the House are working together. However they suggested other ideas that would make this a much more powerful bill. As my colleague the Hon David Cunliffe has alluded to Labour has identified a number of issues that could easily be addressed by the Government through Order in Council or a Supplementary Order Paper. Those suggestions would help to better target the requirements and meet the needs of the small to medium sized enterprises sector as it continues to face tough times meeting the challenges of the global recession. 
Despite these words in many respects this is actually a good bill but probably because the bill largely implements ideas that the previous Labour Government had set in motion before last year’s election. Unfortunately for this country and for the small to medium sized enterprises sector—and as alluded to by the previous speaker—the state of the economy has worsened since the election and these measures do not go far enough to alleviate the stress that many New Zealand companies now face. This bill—I say to my parliamentary colleagues and to the people of New Zealand—is a missed opportunity in my view to really exhibit a degree of leadership and foresight that the times now require. The people of New Zealand deserve better than this so Labour will help out. It is simply not good enough just to lift policy from the Labour Party manifesto cloak it up in National Party ideas and call it a solution. This bill does not provide the solution for many who are looking to the Government for a plan. 
I suppose the parts of the bill that I fully endorse are those that were introduced by Labour. The five measures that have been directly lifted from Labour Party policy are first the increase in low-value trading thresholds to apply from the 2009-10 income year; second accounting for financial arrangements also to apply from the 2009-10 tax year; third the extension of fringe benefit tax annual filing to include closely held businesses whose fringe benefit tax liabilities are restricted to one or two vehicles used by owner employees regardless of their annual PAYE deduction; fourth the increase in the provisional tax use-of-money “safe harbour” threshold from the 2009-10 tax year; and fifth an increase in the goods and services tax 6-monthly return filing threshold to apply from 1 April 2009. 
I suppose in a way it is good we have continuity with the Minister of Revenue because when he sat with the previous Labour Government he was the one who introduced these measures and he can carry them through. It is a pity he did not actually take them a bit further because these were simply Labour policies that we would have reviewed and no doubt amended once we had understood the full extent of this recession on the business environment. The National Government could at least have revised these measures to better meet the updated and more urgent needs of the small to medium sized enterprises sector but I suppose imitation is the greatest form of flattery. There are a couple of Labour measures that the Finance and Expenditure Committee did agree with that have been enhanced but they are still Labour ideas nevertheless. 
Mr Cunliffe also mentioned a couple of potential changes in terms of use-of-money interest rates so as to better reflect the current interest rates in the market. Tax deductibility of interest for example is another area that Mr Cunliffe suggested as a measure that the Government might like to consider amending. Those are only two suggestions that would make this bill better by far. 
In conclusion I support this bill but with reservations. My support would be greatly enhanced if the National Government accepted that a bill designed to help 96 percent of New Zealand businesses that class themselves as small to medium sized enterprises would be a better bill if it were to include these suggestions.