Finlayson Christopher: Taxation (Annual Rates and Urgent Measures) Bill — In Committee 
Finlayson Christopher: Taxation (Annual Rates and Urgent Measures) Bill — In Committee 
[Volume:628;Page:755] 
CHRISTOPHER FINLAYSON (National) 
: 
 The antiseptic language of Part 1 covers up and camouflages the fact that this is a foolish economic policy. But having heard the outstanding contribution made by my friend Ms Rich just a few seconds ago— 
Darren Hughes 
: Kiss of death for Katherine! 
CHRISTOPHER FINLAYSON 
: —I have decided that rather than yell and scream like the boy wonder from Otaki who is busily talking himself out of a seat— 
Darren Hughes 
: How did this guy do? He got beaten up in Mana. 
CHRISTOPHER FINLAYSON 
: I did not even seek the electorate vote. What is the definition of a marginal seat? It is a safe seat held by Darren Hughes. If we give him a little more time he will not even be here. So my advice to the member for Otaki is sit still wait for a few minutes and listen to my appeal to—I was going to say sweet reason but in the case of the Minister of Finance it would be malignant reason. 
The tax rates are a major reason why the economy is not as productive as it should be why opportunities are constantly being lost to New Zealand why 650 people per week move to Australia and why New Zealand is slipping down the rank of OECD nations. Dr Cullen is a historian. I suggest that he reads—I may even buy him a copy—a very good  
Economist 
 publication  
The World in 2006 
. The first time I bought such a publication was in 1988. Then New Zealand in terms of its standard of living was ahead of Spain and Ireland and was also miles ahead of Portugal. If we look at it today obviously we see we are behind Ireland very much behind Spain and just marginally ahead of Portugal. One of the key reasons for that is New Zealand’s mediocre economic performance and a major reason for that mediocrity is the tax rates. 
Tax is too high in this country. The rates in schedule 1 are impeding growth destroying self-reliance and forcing people to go overseas to Australia where the standard of living is 20 percent better than ours. The rates reflect the Government’s know-all approach to the governance of its citizens. It thinks it knows best so it can take our money and spend it for us. It is not surprising that the Prime Minister’s favourite model for the way to organise a country is the Scandinavian approach of bloated bureaucracy and high tax rates. 
But as Mr English said the Government should not just take our money from us. The same litany is repeated by Business New Zealand the Council of Trade Unions and Treasury the Minister’s own department. We are all singing the same song. Tax cuts are necessary to strengthen the economy and to provide the incentives required to keep New Zealanders at home. We will shortly debate the student loan bribe introduced at the 11th hour by the Labour Party. The detail of that proposal can be debated then but if we put money into tax cuts and divert it away from that suicidal scheme that would be one obvious example that would answer the Minister’s question as to how we in the National Party would fund tax cuts. 
What surprises me and the member for Otaki should listen very carefully to this is that even the Australian Labor Party favours tax cuts in the Australian economy. The only question is as to the size the scope and so on. [ 
Interruption 
] Why can the New Zealand Labour Party—[ 
Interruption 
] The member should be quiet. Why can the New Zealand Labour Party not listen to its labour cousins? The New Zealand Labour Party is stuck in the era of the first Labour Government whereas the Australian Labor Party has moved on. Labour should get off its high horse put aside its pathetic “soak the rich” attitude to life listen to what the independent commentators are saying and move towards tax cuts. I strongly advise the Minister that that is the correct approach and that even at this late hour in his ministerial career he can revise upward what the historians will say about him in 15 years’ time. Rather than being seen as the man who presided over the locust economy he could be seen as the man who at the 11th hour saw that his previous 6 years had been a foolhardy administration of the economy and decided he would do something about it. 
It is not just the National Party that says that. The Maori Party says the same thing. United Future secretly agrees which is why it is such a shame that it entered into that Faustian bargain with the Labour Party. ACT agrees and I am sure that New Zealand First secretly agrees.