Court Simon; Parker DavidSIMON COURT (ACT): Thank you Madam Chair. Minister I have four questions but I just want to offer a perspective first. You've chosen—the Government has chosen through the Chair to offer a $350 tax rebate to people earning $70000 or less who fulfil the criteria you've set out. While it's laudable that the Government does recognise that there is a cost of living crisis and that it's a struggle for the economy it's a struggle for communities given the increasing costs—whether it's fuel whether it's energy building materials the fact that even the Infrastructure Commission says it's taking so long to get resource consents—it's added billions and billions of dollars on to the cost of delivering infrastructure and homes over the past four to five years which is primarily the term that this current Labour-led Government and the previous Labour coalition Government have been in power. So it seems like the cost of living crisis—while there may be other things the Government can point to—can largely be sheeted home to a series of policy failings or failing to address issues in a timely manner Minister. But thinking about what caused the cost of living crisis—and of course we have a significant increase in the cost of energy we have a significant increase in the cost of transportation fuels which are contributing to the pressure on household budgets—I'm wondering: did you consider ACT's alternative budget which would have changed the tax rates so that those earning up to $70000 would have actually received a tax cut that would have given them over $2000 in the hand using the ACT tax formula which limits the two tax rates to 17.5 percent and 28 percent? So Minister you've offered—through this bill through this amendment to the Tax Administration Act—a $350 one-off payment and so I'd like you to consider how that contrasts with ACT's proposal to limit Government spending and allow a $2000 tax rebate for people like nurses or teachers in the middle of their career which is typically what they would earn—those middle-income earners who supported us through the COVID epidemic—pandemic if you like—and who continue to do it tough out there on the front lines. So I have four specific questions for you Minister: will people who are self-employed be eligible for this payment who earn $70000 or less on an annualised basis as set out in this proposed amendment to the Tax Administration Act; if so on what criteria will that eligibility be based? Will it be during the time period 2021-22 when they've issued invoices or will it be when they've received payments? Because what we know right now is that many many businesses are suffering from cash-flow issues because their customers are unable to pay on time. So it's absolutely vital that we understand Minister: will the eligibility for small business—if they're eligible—and for self-employed people allow them to base that on cash flow cash received rather than invoices? My second question is: did the Minister consider any other ways to help Kiwis facing a cost of living crisis particularly with their energy and transport fuel bills? For example the ACT Party have proposed that the emissions trading scheme revenues—the billions that this Government supported by the Green Party had proposed to allocate to business to buy them out of their coal-fired boilers or to Auckland Council to buy them electric ferries to compete with Fullers Ferries who've just bought their own hybrid electric ferry a fantastic thing that can go right round the Hauraki Gulf it'll be able to reach places that the Government-sponsored ferries couldn't ever possibly hope to reach. They can only go between downtown Auckland and Devonport—now that's all you'd expect from a Government service wouldn't you? It would be half-baked. It'd be mediocre. It'd be 10 times the price. Minister did you consider offering Kiwis a carbon tax rebate of $250 per person or $1000 for a family on top of ACT's $2000 tax cut for middle-income earners up to $70000? And was this policy modelled? Was there any modelling as to whether this would have a benefit to individuals or to the wider economy based on this money coming out of the COVID Response Fund and what is the Minister's response to Treasury who have asked forgive me—[Time expired]Hon DAVID PARKER (Minister of Revenue): Thank you Madam Chair. As to the member's question as to whether we considered a tax cut of $2000 per person instead of this amount no we didn't because we knew that would if there was responsible fiscal management at the same time require very substantial cuts in public services. We would also note that we don't think most New Zealanders agree with that as a policy prescription because they know full well that the Government has had to draw down on taxes and some increased debt in order to fund the support needed to get people through COVID and to have the out turns that we have had which is a return to growth to pre-COVID levels and very very low unemployment. So New Zealanders back what we have done and they know that that came at a cost and that the finances of the Government need to be restored and couldn't be restored without substantial cuts in services if that sort of policy was pursued. In respect of that as a percentage of GDP I would note that our spending this year is 31.6 percent of GDP projected compared with under the National-ACT Government in 2010-11 34 percent of GDP.