Prosser Richard: Taxation (KiwiSaver HomeStart and Remedial Matters) Bill — Third ReadingText is incorporated into the Bound VolumeProsser Richard: Taxation (KiwiSaver HomeStart and Remedial Matters) Bill — Third Reading[Sitting date: 26 March 2015. Volume:704;Page:2678. Text is incorporated into the Bound Volume.]RICHARD PROSSER (NZ First): I rise on behalf of New Zealand First and my colleague Fletcher Tabuteau to take a very slightly belated call in this third reading of the Taxation (KiwiSaver HomeStart and Remedial Matters) Bill. New Zealand First supports this bill.This bill has become rather more exciting than the average run-of-the-mill remedial tax bill. Legislation intended to remedy faults or anomalies in taxation law have tended to be fairly dry and innocuous affairs and that is as it should be as a general rule. However this one appears to have become something of a bill of two parts both of which have been the cause of quite some interest and some not inconsiderable controversy. The two parts are of course the HomeStart provisions and the veterans’ support provisions. Indeed the commentary from the report of the Finance and Expenditure Committee in which I have been standing in for the Rt Hon Winston Peters these past few weeks while he has been preparing to become the next MP for Northland—and a great result for Northland and the whole of New Zealand that will be I might say—states: “The bill seeks to amend the KiwiSaver Act 2006 and the Income Tax Act 2007. It would allow KiwiSaver members to withdraw their member tax credits when purchasing their first home and would correct errors in the tax social policy and KiwiSaver treatment of income replacement payments made to veterans under the Veterans’ Support Act 2014.”With regard to the first issue might I say it is perhaps less contentious that the Government does take some steps to assist first-home buyers in making that first great leap on to the property ladder than it is that this bill or even KiwiSaver itself may be the best way to go about it. Once upon a time and not so long ago in fact New Zealand prided itself on being a property-owning democracy. Today that dream of homeownership is becoming increasingly difficult and distant for an ever-growing number of New Zealanders for reasons that it could be argued can be laid squarely at the feet of Government. So it is entirely appropriate in our view that the Government does take some steps towards making that goal a little more attainable as it was for previous generations including might I say many if not most of the members here who benefited from things as they were in the past when prevailing circumstances meant that houses were both easier to come by and easier to pay for.Nowadays of course thanks to the policies of successive Governments the goalposts have shifted and they continue to track further and further away for more and more would-be homeowners starting out. So it is right and proper for the Government to help out a little bit with that first big kick down the field. The apparent inability of Governments to grasp the need to build added value into the economy through stimulus packages for industry thereby raising incomes by creating better paying jobs has meant that people struggle to pay mortgages on what are all too often low wages by world standards. It is appropriate to use the taxation system to give those people a helping hand. The refusal of Governments to intervene in the operations of the Reserve Bank or in the artificially high value of the dollar leaving speculation-driven interest rates at the whim of world markets which we have no way of influencing has made homeownership more difficult for more people. It is appropriate therefore that the Government gives them a hand up through the tax system.The refusal of Governments to restrict the purchase of land and houses in New Zealand to citizens and permanent residents only coupled with open-door immigration policies and the ability of offshore buyers to source finance from foreign banks at what are effectively zero interest rates have created a demand for housing that far outstrips supply. It is only appropriate therefore that the Government should make changes to tax laws such as this one in order to assist those ordinary working New Zealanders too many of whom are struggling as a result of these polices. So this we applaud. It may be too little and too late but it is a step in the right direction and we support it. We encourage the Government to go further to address the causes of inaccessibility of housing that lie within its own policies but in the interim we support this initiative and this bill.It is perhaps worthy of note that because wages have historically been low in this land of plenty and the savings habits of New Zealanders therefore somewhat sparse and lean the appreciation over time of value in the family home has become the centrepiece in the average New Zealander’s investment savings and retirement portfolio such that they have. So in that context it is perhaps not inappropriate that a person starting out should be permitted to withdraw a portion of their KiwiSaver retirement savings in order to kick-start their journey towards the ownership of a home which in all likelihood they will have to sell in order to retire in some degree of comfort at the other end of their working life. It is not ideal but as I say it is a step in the right direction. A future New Zealand First - led Government or even a New Zealand First - influenced Government would address this pressing issue with some real urgency and some real priority.With regard to the second primary concern of this bill that being the financial lot of our veterans and returned service people this bill seeks to “correct errors” regarding how income replacement payments made to veterans are treated for tax purposes. Despite assurances from the Government which have not been assisted by the inability—or indeed the unwillingness—of Ministers to answer very valid questions from Opposition members during the Committee of the whole House New Zealand First remains unconvinced that the changes in this bill will not in fact leave some of our veterans worse off financially rather than better.This year marks the 100th anniversary of the Gallipoli landings. That baptism of fire is regarded by many New Zealanders as well as Australians as being a coming of age for both our nations and it would be fitting—if perhaps overdue—that this year could also mark the passing of legislation guaranteed to secure the financial future of those courageous men and women who put body and soul on the line so that all the rest of us may enjoy a better life in a free and democratic world. We are yet to be reassured that this bill will achieve this and we urge the Government to listen to our very genuine concerns to examine the potential downstream effects of this bill and to bring about amendments to it without delay if such are found to be necessary—and we will certainly support such a process.All that said we do support the passage of this legislation. It might not be perfect but we think it is better to have it than not have it and it is probably going to be quicker and easier to fix it in place rather than throw it out and start again. I will not go so far as to say that I commend the bill to the House but New Zealand First will be voting in favour of it. Thank you.