Adams Paul: Estimates Debate — In Committee 
Adams Paul: Estimates Debate — In Committee 
[Volume:618;Page:14323] 
PAUL ADAMS (United Future) 
: 
 I would like to speak on finance. I want to focus particularly on one area of taxation—GST. We collected close to $10 billion in GST last year. If there is any evidence that shows United Future is a party that is truly in the centre it is our campaign to fight against the tax on a tax that is the GST on rates. Some great billboards have gone up around the country—and members may have noticed them—stating that there should be no tax on a tax. 
This is a serious issue. I will take a moment to consider that the Government loves to collect taxes. There is no doubt about that. A Government needs taxes. But the people of New Zealand the ones that members and I know do not like paying taxes and they definitely do not like paying a tax on a tax such as GST on rates. One can only imagine the human outcry if we decided to put 12.5 percent GST on the PAYE that we collect from workers. Yet this tax is a tax on the workers in this country. 
Businesses can claim back the GST that they pay on their rates but can the elderly claim back the GST they pay on their rates? No they cannot. I believe that the elderly in Australia do not have to pay GST on their rates. In New Zealand it is the workers as they earn their money who have to pay GST on these rates. 
I believe in GST. I think it is a very good and fair tax system. I believe it is a tax system that collects tax for running the country from everybody who passes through this country. But once it becomes a tax on a tax we will stand against it. It will be interesting to see what happens when it comes to the vote on my fellow member Gordon Copeland’s member’s bill because this is a very unfair tax system. I have heard from many people as we have spoken around the country against GST on rates and they have supported us. Tax collected on false pretences— 
Rt Hon Winston Peters 
: Why are you voting for it? 
PAUL ADAMS 
: —is something that Mr Peters would disagree with. Yet I believe we started with a tax on a tax and now we move into other things like the development contributions that we have in my own home town of Albany. I read in the paper that the costs of a home and land in the Auckland area are getting out of hand. It states on the North Shore City Council’s website that before one even starts to build a minor dwelling in the little area of Albany one will be paying around $60000 by the time one cuts off the little piece of land and pays the reserve contribution permit costs and development costs. 
This cost of $60000 is nothing short of a tax under another name. This has happened under a Government that said it would not increase taxes yet we have seen these types of stealth taxes beginning to increase over every little area—here a little there a little. But United Future will fight for this one. We are pleased that our member’s bill has come out of the draw and that we can put it to this House so we can flush out the true colours of some of these parties as we debate these taxes upon taxes. It will be very interesting to sit and observe. The elderly people in this country will be extremely interested to see who supports Gordon Copeland’s bill to see that GST on rates is removed because we believe— 
Craig McNair 
: Talk about the Budget. 
PAUL ADAMS 
: This is about revenue. This is a tax on a tax and as I said the Government has collected just under $10 billion in GST over this last 12-month period. I believe that that is an incredible amount of money. I agree that we need to see how the expenditure on a lot of these departments is going. We should give the poor taxpayers in this country a break and reduce some of these overheads not keep increasing them.