McKelvie IanIAN McKELVIE (National—Rangitīkei): Thank you Mr Chair. I just wanted to take a call on this Part 2 of this bill. Actually I want to follow on from the member for Hunua because he raised some issues—I won't be quite as eloquent or academic as he was—that I think are of significant challenge. First of all I must say that I think most of the pieces in Part 2 are perfectly logical changes to a piece of legislation. Of course they arise as a result of the Inland Revenue Department's transformation project which I think is a pretty exciting project that's massively ambitious. Of course as you go along with these ambitious projects there are always casualties and that's what I want to touch on here.The previous speaker did touch briefly on them but I think the challenge that I have with this part of the legislation quite aside from the fact that there are probably almost millions of people who have never had direct contact with the Inland Revenue Department is the fact that the methods of communication with these people are going to be very challenging—well with many of them they're going to be very challenging—for two reasons. One is that we are far from perfect with our coverage or technology coverage in New Zealand and internet contact with these people is going to be very difficult. So a lot of people are either not going to have the ability to communicate with the IRD in this manner or are not going to want to communicate with them in this manner. That's the first challenge I think we've got and that will be I imagine the generational change. So that will change in time but it's a challenge that all Government departments and any entities for that matter—particularly banks actually—wanting to deal with their customers through this mode are facing at the moment and that's what happens at a time like this.The other issue I want to touch on is the mail system. When you do what we do in life you spend a lot of time walking around streets. I reckon you could easily find streets in New Zealand where 20 percent of the mailboxes are never looked into. In fact you'll find the stuff down the street—you find it everywhere. So there're a large number of people who never bother to go to their mailbox and never bother to take the letters out of it—I suspect because they're mostly bills and I also suspect that they get them—Greg O'Connor: Sounds like National Party brochures to me.IAN McKELVIE: Well I have to say I have had to try and stuff mine on top of a couple of red ones in my time but I'll forgive them for that.I think that the challenge of this is quite significant because most of these people—as again Andrew Bayly said—have never received communication from the Inland Revenue Department and when they do get one they'll be terrified by it I would have thought. So that's quite a large challenge and I think it will take time to work its way in and they're going to have to have a significant amount of tolerance in dealing with this issue as it slowly is implemented. There are one or two good parts to that in that some of the smaller tax refunds and tax demands will disappear because if it's under $50 they're not going to persevere with that. That will make a difference and will lessen the communication that is required hopefully. So that's a bit of a challenge.There are some other parts to this bill that I also think are challenging but then all this stuff—almost everything we do in this House actually—has unintended consequences and certainly consequences that we can't foresee at the time. I think that simple things that we might have envisaged when they came through this House would not cause significant problems—like anti - money-laundering for example—have created significant costs for small business in New Zealand and some of the changes proposed in Part 2 of this bill will inevitably lead to those same significant increases in costs to small business. That's one of the things that's hugely frustrating for business in New Zealand and it's hugely frustrating—well I think it's probably frustrating—for most politicians because it's not something that we intend as a Parliament to impose on business but it happens almost every time we try to change compliance schemes and rules relating to tax and other things that the Parliament deals with.Certainly taxation is a very complex issue for most people and it is an issue that most people—well a large percentage of New Zealanders—never deal with personally. They are now going to have to deal with that personally and I think that will be a challenge for them. There are also changes that are happening in the course of that legislation that are going to put more compliance on businesses and so they are going to have to have much more frequent contact with the Inland Revenue which also is going to be a significant challenge for them. There are plenty of other issues I will take up in the course of this bill.