Barker Rick: Taxation (Annual Rates and Budget Measures) Bill — In Committee Third Reading 
Barker Rick: Taxation (Annual Rates and Budget Measures) Bill — In Committee Third Reading 
[Volume:672;Page:18992] 
Hon RICK BARKER (Labour) 
: 
 I will take a call in this debate and say that the National Government should hang its head in shame over this legislation the Taxation (Annual Rates and Budget Measures) Bill and that the bill is entirely consistent with the philosophy the practice and the orthodoxy of National which is to cut chop and gut. As Mr Nash has reminded us National chopped into the superannuation savings scheme that was put in place by Labour in the 1970s. National railed then against that national superannuation scheme put in place by Norman Kirk on the grounds that it would buy up New Zealand. That is what National said. National said we could not have Kiwis owning New Zealand. National said that such superannuation schemes would get so big their funds could buy up New Zealand—New Zealanders would own their own history and we could not have that! So Muldoon got rid of it. He got rid of it on the basis of a canard. The canard was that New Zealand could continue to afford out of taxation to pay people 80 percent of the ordinary average wage from the age of 60 until they passed on. Every newspaper editor in New Zealand knew that was a lie. Everybody knew that it was a lie but Muldoon sold it on the basis that he would give back to every person their personal contributions and their employer’s contributions. 
I was a worker in those days; I was in the scheme. People at the place I worked at figured out that if they got back their contributions and the boss’s contributions they could buy a new stove a new fridge or a new something else. They all spent the money. When National was elected in 1975 Muldoon through his own motion stopped contributions. Muldoon was taken to the High Court and the Court of Appeal and he was found to be the only person who as a Prime Minister had acted ultra vires. It was a landmark decision that is now read all over the world. Muldoon of his own hand both took away and exercised the power of this Parliament. The court found him wrong. The court did not make him change the legislation because it knew he had the power to change it but the court said he was wrong. Muldoon was not wrong only constitutionally and legally; he was wrong morally. 
If that superannuation scheme had stood we would not have had to sell the Bank of New Zealand because the superannuation scheme itself could have bought it. We would not have had to have sold many other assets. because the superannuation scheme could have bought them and owned them. More important the New Zealand superannuation scheme could have bought assets all over the world to make New Zealand a richer country. Instead we have the legacy of Sir Robert Muldoon and National— 
Michael Woodhouse 
: I raise a point of order Mr Chairperson. This is all very interesting but it certainly does not go to the title of the bill. I wonder whether the member could be brought back to the title. 
The CHAIRPERSON (H V Ross Robertson) 
: I thank the member for drawing that to my attention but the member who was speaking has a right to refute in debate. I am sure he will come back to the title very shortly. 
Hon RICK BARKER 
: That is a sign that National members feel very uncomfortable to hear their history told to them. National’s history on superannuation is dismal and grim and a legacy of shame. 
What happened because we did not have the superannuation scheme? Australian superannuation schemes came to New Zealand instead. They bought up our banks and bought up all the rest of it because we did not save. But National having made such a travesty out of it then went on and committed a further one on superannuation. National went to the election and said “No ifs no buts no maybes …”—it would not put a surcharge on superannuation funds. What happened? The National Government not only put on a surcharge; it put up taxes. So people said there was a complete and utter disincentive to save for their retirement because even if they did the Government would tax if off them. That caused a proliferation of trusts in order for people to hide and shelter their income and get it away from taxation. That is what happened. The third travesty that will be inflicted upon— 
Jo Goodhew 
: Mr Barker the Chair is saying to you— 
Hon RICK BARKER 
: If the Chair wants to speak to me the Chair will speak to me directly by getting to his feet and taking the call. 
I was just about to say that in the Taxation (Annual Rates and Budget Measures) Bill we see the third crime by the National Party against superannuation in New Zealand. National is following its philosophy of cut gut and chop. Whatever it gets holds of it says: “Cut it chop it get rid of it.” That is what it is going to do with the legacy from our grandparents. Our grandparents built dams all over this country as a gift to the next generation. National is going to sell them off so it can go and spend the proceeds. That is what it is going to do. That is a part of National’s plan. It is also going to chop into superannuation again.