Young Jonathan: Third Readings — 
Text is incorporated into the Bound Volume 
Young Jonathan: Third Readings — 
[Sitting date: 20 May 2010. Volume:663;Page:11192. Text is incorporated into the Bound Volume.] 
JONATHAN YOUNG (National—New Plymouth) 
: 
 We are gratified to hear of the concerns that the Opposition has in regard to inflation in this country. Its members must be very happy that we repealed their emissions trading scheme which would have seen 10 percent added to power prices on 1 January as well as an increase of 7c a litre in fuel prices. 
Looking at the third readings of the bills arising from the Taxation (Budget Measures) Bill we understand that the legitimate increase of wealth essentially comes in two ways in this country: either by what people earn or by what the Government gives them—or in the case of tax cuts what the Government gives back. We need to be reminded that the previous Labour Government gave nothing back—oh of course 1 month out from the last election it gave us a tax cut. After 108 months of Government what a coincidence that in the last month we got a tax cut! Well it was because Labour could never afford to give tax cuts for a number of reasons. One them was that it just could not afford to. The previous Labour Government’s expenditure grew by 50 percent in its last 5 years a bureaucratic blowout to regulate and control New Zealanders. 
In fact the 2007 Budget papers released under the Official Information Act show that the previous Labour Government Ministers were well aware of the contribution overspending would make to higher interest rates and higher exchange rates. Treasury warned them that they needed to stay close to previously agreed limits otherwise the Government would risk an interest rate response from the Reserve Bank an exchange rate staying higher for longer and a more pronounced economic slow down. And that is exactly what happened. 
National came into Government at a time of dire financial circumstances. It was great to read what John Armstrong from the  
New Zealand Herald  
said about yesterday’s Budget announcement. He said: “It has turned those muddy economic waters into wine by constructing a clever package of significant tax cuts when the Government’s books are written in deep dark red.”—just like Mr Mallard’s tie. 
New Zealanders should know what Phil Goff said should they ever consider returning Labour to the Treasury benches. He said that he would lift the highest marginal tax rate back up to 38c he made no commitment to reduce GST back to 12.5 percent and Shane Jones said today that Labour would consider a capital gains tax. New Zealanders see the economic futility of the type of Government that Phil Goff wants to go back to. True wealth generation in essence is not about what the Government gives or gives back. Stimulus packages can assist and it is important for the Government to prime the pump at times but true wealth generation is when New Zealanders can with confidence invest their money into businesses big or small which will in turn earn them a profit. They can then employ other New Zealanders. 
Our incomes are below those of countries we like to compare ourselves with including Australia. It is important that the legislation arising from the Taxation (Budget Measures) Bill sends a signal to all New Zealanders that this Government has confidence in the country’s future and confidence in New Zealanders to be able to build true wealth given the right environment. As I close I congratulate the Minister of Finance the Hon Bill English and his team and the Prime Minister on their great leadership of this nation. Thank you.