Tisch Lindsay: Budget Debate 
Tisch Lindsay: Budget Debate 
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LINDSAY TISCH (National—Piako) 
: 
 National members are clear on one thing and it is that this Government is gone. This Government is on its last legs. We have just had the ninth and final farewell Budget from Dr Michael Cullen. It is a Budget that goes nowhere. It is a Budget of lost opportunities. It is a Budget that conveniently just before the election will give taxpayers a slice of cheese. How convenient is that? 
National has called for tax cuts for years. Last election as part of our policy we said we would have tax cuts and Dr Michael Cullen said that was irresponsible. He said that the country could not afford tax cuts. However now that the economy is starting to tighten and as things start to move backwards and get tight and as taxpayers are struggling to meet their home budget with higher interest rates— 
Bob Clarkson 
: Unemployment! 
LINDSAY TISCH 
: —we are also seeing higher unemployment already. 
Dr Jackie Blue 
: Interest rates! 
LINDSAY TISCH 
: Now that interest rates are going up as is the cost of fuel and everything else the Government says it is going to give us some tax cuts. 
Do members remember what happened back in 2000? This Government set as one of its priorities that it would move New Zealand income levels back into the top half of the OECD. Well we have actually dropped— 
Darien Fenton 
: No we haven’t. 
LINDSAY TISCH 
: The member does not read the figures. We have actually dropped. There was absolutely no mention in this Budget about lifting our economic performance and getting into the top half of the OECD which Australia and Ireland have done. This has been a Budget of lost opportunities. 
Dr Cullen says that we need 4 percent growth and we agree with that. But he also says that his policies will deliver only 2.5 percent over the next 4 years. That is far short of the 4 percent he said we would need. We are falling further behind Australia and that is evidenced by the mass exodus of Kiwis who are deciding that their future lies offshore. It is an indictment on this Government that our brightest and best find life more attractive offshore. They are not going just for their big OE which we would expect them to go for; they are going because they see their future as being offshore and that is an indictment on this Government. 
There was nothing in the Budget to grow the economy—to grow the cake. Government members talk about redistribution. They cannot redistribute something unless they grow the pie—unless they grow the cake—and there was nothing in the Budget to allow for that. 
What was in this Budget for small businesses? Ninety-seven percent of our businesses are small businesses. We are a nation of small businesses. Does raising the bar for GST registration by $10000 from $40000 to $50000 make it easier to pay the bills? The answer is no. Does the Budget reduce compliance costs which affect development and growth in business? The answer is no. Does the Budget provide for world-class infrastructure? The answer is no. There is a little bit for broadband. Well we announced our policy for broadband which involved expenditure of $1.5 billion. This Government has come up with just a measly little bit because it thought it seemed right. Does the Budget provide an environment where the levels of expenditure and taxation promote economic growth? No it does not. Does it provide for a high-skill high-wage economy? No it does not. We are looking for a focus on productivity being the norm but the answer is no. Does it provide for a culture of entrepreneurialism where investment growth occurs through innovation? No it does not. Does it provide for a business-friendly environment whereby success is celebrated? The answer is no on all counts. 
On my score sheet this Government has failed dismally. That is what New Zealanders are saying as well. They know that the writing is on the wall for this Government because in a very short time it will be out. 
This Budget is about securing votes and increasing dependency. That is what it is about and that is its target—increasing dependency and securing votes. That is what socialist Governments do. They make people dependent on them and that is exactly what this Budget is about. 
Although the corporate tax rate has been reduced to 30 percent—and we accept that—one of the key things is that most small traders and partnerships are unincorporated. They are actually not companies. So those earning a taxable income of up to $70000 on 1 October this year are facing a tax rate of 33 percent and those earning over $70000 at 1 October will still be taxed at 39 percent. These business folk are paying the top rates and this Budget does absolutely nothing to address that. It is inefficient and it is unfair. 
I note that the Minister for Small Business Clayton Cosgrove hosted Australian Ministers associated with small business at a conference last week which he chaired. They came not only from the Federal Government but from the states and the territories. He went there to find out about how we might become competitive with Australia. Well businesses in Australia are far more productive and entrepreneurial than businesses are here. Why? Because this Government stifles initiative and investment and there was nothing in the Budget to address that. 
The Small Business Advisory Group was set up by the Government. All the people in it are appointed by the Government and they made 16 recommendations. Not one of those 16 recommendations appear in this Budget. [ 
Interruption 
] No they will be disappointed in this Government and they are Government appointees. They were appointed by this Government and they have made some sensible recommendations. But they will be bitterly disappointed in this Government. 
I note that the Minister of Tourism Damien O’Connor is here and that is good. Tourism is the world’s fastest-growing industry and it is important to New Zealand. But when we look at the Budget—and I know that the Minister will probably speak shortly to defend the policy in it—under Vote Tourism we see that the 2007-08 figure of $74.6 million to promote New Zealand has been reduced to $73 million for the next year. The Minister will have an answer for that. He will say that 2.5 or 2.6 percent of that was for promoting the Rugby World Cup overseas. I accept that but the important thing here is that if we look at the out-years we see that the vote for tourism will go down and down and down. In fact the cumulative loss in Vote Tourism over the next 4 years if we take last year as the base year is $22 million. What does the Minister say about that? Tourism is New Zealand’s most important industry. It is our biggest export earner and what does this Government do? There is to be a cumulative loss. Using last year as a base year the vote is going to decline by $22 million. If we go back 2 years to 2005-06 when we had the highest vote for tourism the cumulative decline is a staggering $52 million. That is an indictment on this Government in terms of its process. 
This Budget does not meet the expectations of New Zealanders. It does nothing to provide for growth in productivity and prosperity. It does nothing to retain and attract back those thousands of Kiwis who have decided that their prospects are better offshore. This is a Budget of lost opportunities.