Watts Simon; Parker DavidSIMON WATTS (National—North Shore): Thank you very much Madam Chair. I want to have a brief discussion in regards to Supplementary Order Paper 322 which I think was derived from the submission of the Greens' Supplementary Order Paper 320 which wasn't tabled. But it's in regards to the exemption of fringe benefit tax (FBT) on bicycles and other items such as that including electric scooters etc. I guess the point of clarification is around how this potential exemption could be open to abuse in terms of obtaining these assets—bicycles—and getting the exemption for FBT but then using them for private purposes. I've got two young boys 10 and 12 they love riding bikes right? But if I told them you know That's Dad's bike and it's only to be used for commuting to work" well I don't know maybe it's just my two boys at home but I'm thinking they probably are going to be using these bikes for private use right? I don't think that's too far a bow to draw in regards to this. But also I've got a number of number of mates—and maybe it's a North Shore thing: I've got that lycra club—you know that lycra club? It's about 6 a.m. 7 a.m. in the morning getting up and you've got the lycra club going and they're up; driving up. And I don't mean to offend many of my friends that will be watching because they're part of those clubs; I'm not myself. But the challenge is I can just foresee it. I'm not going to draw any of my friends or colleagues into this but I can just foresee that they're going to go "Well this is quite a nice opportunity isn't it? You know we'll get that little bike through the work scheme through the bank scheme." Because interestingly they had this in the UK when I was working in the UK and I won't go into any detail but you could also get the same exemption in that. And what happened interestingly is a whole lot of people ended up with nice flash race bikes for the weekend all fully funded through the taxpayer—and you know while it's not appropriate obviously this is open to rort. And the challenge that I want to ask the Minister is: while it's all nice on paper isn't this really going to be just an opportunity for tax leakage—not in regards to the tyre tube but leakage in regards to tax revenue?Chris Penk: Ha ha!SIMON WATTS: Geez that was all right quite nice Mr Penk. The reality is you know no matter what controls or important stuff is put in place once these bikes are bought they'll be on TradeMe in the next week won't they? They'll be selling them on TradeMe down to their mates 15 percent or whatever not quite—but a little bit of a discount. And this is just going to become a circular economy.Hon DAVID PARKER (Minister of Revenue): Just in respect of the answer I gave to Damien Smith the way in which an employer would deal with payments that have been made previously would be to amend their employer monthly schedule of their payments to reflect the fact that it was a tax repayment. In respect of the issue that the member from the North Shore raised in respect of abuse: incidental private use is OK the e-bike has got to be mainly for commuting. And members will note that new section CX 19D(3) proposed in Supplementary Order Paper 322 includes regulations that can be made as to the maximum allowable cost of the vehicle; we're not going to be allowing this to be rorted through gold-plated bikes. There can also be regulations made about the requirements for any vehicle and the Hon Julie Anne Genter has already covered what some of those things could cover."