Laban Luamanuvao Winnie: Budget Debate 
Laban Luamanuvao Winnie: Budget Debate 
[Volume:639;Page:9695] 
Hon LUAMANUVAO WINNIE LABAN (Minister for the Community and Voluntary Sector) 
: 
 Kia ora talofa lava and warm Pacific greetings to you all. It is a real pleasure of mine to rise and contribute to this debate. In her statement to Parliament in February this year the Prime Minister said that New Zealand’s future is dependent on long-term sustainable strategies for our economy society environment culture and way of life. She went on to say that those strategies have to be driven by strong leadership and sound policies. Helen Clark is providing the strong leadership this country needs. Dr Michael Cullen’s eighth Budget is bold bright strategic and contains sound policies that will benefit all New Zealanders. New policies will build on this Labour-led Government’s proven track record of implementing sound policies that invest in our people rebuild infrastructure and grow our economy. 
Budget 2007 continues our good work. Budget 2007 is about saving and investing for our sustainable future. Today I want to address two aspects of last week’s announcements: the changes to tax rebate thresholds for charities; and KiwiSaver. Tax and charities: the Budget contains some very significant and highly positive news for charities and those who donate to charity. The tax rebate threshold on donations to charity is to be scrapped from 1 April 2008. This means all Kiwis who donate to charity will be able to claim back a full 33?c in the dollar on all income up to their annual net income level. The old threshold of $1890 will be scrapped. 
So for companies and Maori authorities the 5 percent deduction threshold will be removed. This means companies and Maori authorities that donate to charity will be able to lower their net income before tax by the amount they donate. This is great news for businesses Maori authorities individuals and the philanthropic sector. The United Future Party should be recognised for its work in this area and I congratulate the Hon Peter Dunne. Work that we started together soon after the 2005 election is now producing rewards for a sector that contributes enormously to the well-being of the diversity of our many families and communities and deserves to be further supported. 
A recent report released by Philanthropy New Zealand found that Kiwis are very generous donors compared with other countries and of course charitable giving is to be encouraged and rewarded. That is why these changes are designed to lay a foundation for a stronger culture of charitable giving in New Zealand. As Minister for the Community and Voluntary Sector I am very very proud of this. But the really great news is for our charities and our communities. This is what makes me excited. It is making it easier and more attractive to donate to charity and will I am sure result in higher levels of donations by Kiwis. 
It is not just me who is excited. The response from the charitable and philanthropic sector has been overwhelmingly positive towards these changes. Dave Henderson from the Association of Non-Governmental Organisations of Aotearoa said that the changes will be significant in encouraging further a culture of generosity and giving in our country. Ric Odom from YMCA New Zealand said that the announcement will help not only to sustain a philanthropic spirit in this country but also to support sector organisations in the great work they do for all of our local communities. David Wilson from the Auckland University of Technology’s Institute of Public Policy said that the changes were a big step in the right direction. Lisa Cescon from World Vision said that the announcements show the Government’s appreciation and understanding of the good work of charitable organisations; and of course our hero Major Campbell Roberts from the Salvation Army said that the Government is to be commended for the changes. 
Our Labour-led Government recognises that charities make an invaluable contribution to our social cultural environmental and economic well-being. Every day they are working in our communities often without pay humble and without a great deal of recognition. Heads down working together that is the Kiwi way. It is these values that make us proud to be New Zealanders. The changes will make it easier for charities to ask for donations and more attractive for our people to donate. 
In 2005 our Labour-led Government established the Charities Commission to build public trust and confidence in the charitable sector and to provide better information about this important part of our society. Together with the Budget 2007 changes on tax rebates these initiatives are part of our Government’s commitment in supporting charities and working in partnership with key stakeholders to build the capacity of the community and voluntary sector. 
KiwiSaver is another great announcement. It is a bold policy. It is a strategic policy. It is bright and it is sound. It does encourage greater savings to address our poor savings record as a nation. If we can all save more we can all build up assets that will make our futures more secure.This Government is taking responsible and bold steps to ensure the financial security of New Zealanders into the future. I know that many many Pacific Island people will benefit from KiwiSaver. It will help our working Pacific communities to build up savings for a first home and for retirement. Families young and old that have financial security are very important to Pacific people and indeed to all New Zealanders. Our Labour-led Government’s Working for Families policy is already delivering tax credits to our working families. 
KiwiSaver will also allow our Pacific families to build up savings and assets beyond the family home. During the harsh economic restructuring in the 1990s when National was in Government our Pacific people suffered the worst—personally socially emotionally psychologically and economically. Social capital was hugely eroded also because our people were focused on survival. Many of our people who lost their jobs under National are only now getting back into employment under this Labour-led Government and since we have been in power we have seen a huge change in our communities with more people than ever moving into work and doing better. 
There is a positive attitude out there. There is more participation in community life and we can see positive young successful role models coming from Kiwi-born Pacific people. Some of them are Alexander Fala a Rhodes scholar Karlo Mila; the winner of the Montana’s first book of poetry award; and Maria Tutaia who is in the Silver Ferns. 
Unemployment benefit numbers in my Mana electorate have fallen by 20 percent in the last year. That is wonderful because it is great news for those families in that community. There is further evidence of those statistics right around our country and across our regions. Compared with 1999 figures when Labour took office the total number of people receiving an unemployment benefit in Mana has dropped by 2353 or 55 percent. That is good because people feel better if they contribute more and if they can participate in the lives of communities. 
KiwiSaver is so very important to our Pacific people and to all Kiwis. It is important that Kiwis who join that scheme will receive $20 in their accounts from the Government and employers will also contribute. Charities and income tax - exempt organisations will also benefit from employer tax credits. Income tax exemptions do not matter because the KiwiSaver employer tax credits are offset against PAYE tax. 
For 2008 the KiwiSaver tax credit will fully cover the 1 percent employer contribution for employees earning up to $104000 gross. The KiwiSaver tax credit will give charities and non-Government organisations the confidence they need to continue their great work in our communities. New Zealand does remember the misery that was caused during the 1990s and it is important that we do not forget. The previous National speaker the Hon Murray McCully focused a lot on deficits and negativity. We all know that the facts speak for themselves—there is a wonderful positive sense of well-being out there. Winston Peters is to be applauded for the increase in aid. It is exciting to see that the Pacific will focus on a Pacific plan where one of the main goals will be economic development. Thank you.