Nash Stuart: Third Readings — 
Text is incorporated into the Bound Volume 
Nash Stuart: Third Readings — 
[Sitting date: 20 May 2010. Volume:663;Page:11193. Text is incorporated into the Bound Volume.] 
STUART NASH (Labour) 
: 
 It is easy to have a bit of a laugh but it is not easy to have a bit of a laugh when I look at this tax package and see that it delivers absolutely nothing. It was interesting that the gentleman who last spoke Jonathan Young asked whether we wanted to return to the sort of Government that we had had. I will tell him about the sort of Government that we had. We had a Minister of Finance who completely eradicated Government debt. Our leader did not stand in front of a camera and say: “I will not increase GST.” then do that. What do we call that? The sort of leader we have in the Labour Party would not stand in front of a camera and say: “I will not borrow to pay for tax cuts.” then do that. What did the National leader do? He broke his promise. This is a Budget of broken promises and these bills are broken promises. It is a disgrace. 
Mr Gilmore stood up and said before that it was all going to be OK and we should not worry about it; the statistics on page 63 of the Economic and Fiscal Update say that it is all going to be OK. Well I can tell members that in the same document on page 65 Treasury says that it assumed that pre-tax wages would not respond fully to the price rises caused by the higher rate of GST. That is what Treasury says—that is what Treasury says. 
As for Ms Rahui Katene I cannot believe that she stood up and said that she is not satisfied with this legislation. I tell the House that we are not satisfied with this legislation either. What we do when we are not satisfied with legislation is vote against it—that is what we do. How dare that member opposite stand up and say that she is not happy with the legislation then vote for it! What is that called? 
Hon Darren Hughes 
: We can’t say what it’s called. 
STUART NASH 
: That is right. But worse still the member outlined why she was not satisfied with this legislation and it was because it increased GST. In that member’s electorate 72 percent of people earn under $40000. Those people will be worse off. 
Hon Darren Hughes 
: What’s she doing about it? 
STUART NASH 
: Well she is not voting against it. She is supporting this legislation. Then she had the nerve to talk about her member’s bill which she says will take GST off healthy food—of course it defines healthy food as fish and chips and Kentucky Fried Chicken. She says she wants to take GST off healthy food but she votes for this legislation! I think that is a travesty and I think the 72 percent of people in her electorate who earn under $40000 will think exactly the same thing. 
The last National speaker was right: this legislation does send a message to the people of New Zealand. The message it sends is that we cannot trust the Government because its leader promised us that he would not do what he has done in this Budget. This is not aspirational legislation for all of New Zealand at all. I cannot see how it drives growth because the economic theory behind it is outdated and that was highlighted by Tau Henare who stood up and said: “If you give money to the wealthy they will spend it.” That is the economics of Margaret Thatcher and Ronald Reagan. It is the economics of last century and it does not stack up in this day and age—it has been proven not to stack up in this day and age. I can tell members what the wealthy will do with this tax cut: they will either retire debt or they will save it. That is what economic theory has now proven. 
But there is one thing this legislation does do. It delivers tax cuts for the very wealthy. Paul Reynolds who is the head of a company called Telecom—and we all know what a fantastic service Telecom has provided recently—has a base salary of $1.7 million. 
Hon George Hawkins 
: How much? 
STUART NASH 
: About $1.7 million. He will get about an extra $1600 a week in the hand. That is about $88000 extra in his back pocket every single year. Very few Kiwis earn as much as that but that is going to be his tax cut. 
Louise Upston 
: Reynolds is great for our tax coffers. 
STUART NASH 
: I tell that member that the 73 percent of people in her electorate who are on the median wage will get about $5 a week. 
I also tell the member that the president of the New Zealand Property Investors Federation has now come out and said that the Treasury figures about rent going up about 1.5 percent are wrong. This man represents the people who own investment properties and rent them out to people who cannot afford to buy their own home. He has said that rents will go up between about 4.5 and 6.5 percent. Then he said there might be an inflationary effect thrown in there as well. Well Merry Christmas to the people of New Zealand. This is not a tax cut that delivers anything. It is a tax cut that delivers something to the very wealthy and nothing to the vast majority. It is a disgrace. 
The gap between Australian and New Zealand workers could not be starker. Yes Australia did lower the company tax rate. But do those members opposite know why it lowered the company tax rate? I will tell them. It lowered the company tax rate because it gave back to the workers. The Australian Government gave back 33 percent and said that it was going to increase the savings of Australian workers. That is why it gave a tax cut to Australian companies. What has this Government done? It has said there will be tax cuts for New Zealand companies but nothing for the workers—nothing for the workers. There will be tax cuts for the wealthy but nothing for the poor. That is not the way forward. 
It brings me back once again to Mr Key’s comment about people being jealous of the tax cuts for the rich in this bill. It shows his true colours. It shows that Mr Key judges people by the amount in their back pocket by how much they earn not by the sort of person they are. Many people in our communities contribute significantly. They do not earn as much as Mr Key or a law partner or an investment banker or a top scientist but that does not mean that they do not contribute. We all know that there are people in our community who give their time freely to help others less fortunate. In fact sometimes the opposite can be true; it is often the less well-off in our communities who contribute the most to the safety and the well-being of our fellow citizens. They often volunteer. What sort of message do they get from this tax legislation? The Prime Minister’s statement on envy did nothing to make them feel valued. In fact it did quite the opposite. They contribute in toil and hard work and they give their hours freely for the benefit of the whole community. I tell Mr Key to not treat them like they are worth less than someone who earns $500000. They are not lesser people and they deserve better. 
My beautiful daughter is taught by a teacher earning under $70000. My wonderful son is in a fantastic day-care centre—that industry has just been gutted—and is being taught and looked after by amazing staff who earn under $70000. A lot of our police who patrol our streets and keep us safe earn under $70000. The vast majority of the nurses who fix us up when we fall over earn under $70000. The people who make our communities tick are the people who receive nothing in the legislation we are now debating. Those people are just as valuable as—in fact I would argue that they are often more valuable than—a merchant banker who makes millions betting on our exchange rate but creates nothing and cares for no one. 
This is a Budget and this is legislation that do not deliver for New Zealand. This Government came in on the promise of a step change. That has not occurred. Paul Reynolds one of our wealthiest will get $1600 extra a week—$1600 a week in the hand. That is how much he will get. 
Hekia Parata 
: How much is he paying? 
STUART NASH 
: But someone on the median wage in that member’s electorate will get $5 extra a week—$5 a week. How is that aspirational? On top of that the rent will increase. This legislation will widen the gap between the very few who have the most in our society and the vast majority who are struggling and who will struggle with increases in GST increases in the price of power increases in the price of everything they buy and increases in rent. It is a sad day in this House for the vast majority of New Zealanders because they have received nothing from this Government except broken promises. Thank you.