3. Hon DAVID CUNLIFFE (Labour—New Lynn) Link to this
to the Minister of Finance
Will all New Zealanders gain from National’s tax cuts?
Hon BILL ENGLISH (Minister of Finance) Link to this
Yes, all New Zealanders will gain from the tax cuts, because lower taxes provide incentives to get ahead, are a reward for effort, and will help to get this economy back in the shape it needs to be in to replace the jobs that are being lost. Every New Zealander will benefit from policies that reduce unemployment.
Hon David Cunliffe Link to this
Can the Minister confirm that businesses that have employees on KiwiSaver, for example, will be worse off to the tune of $1,040 per worker per year, as a result of the loss of the employer subsidy?
The National Opposition promised to make a number of changes to KiwiSaver. We campaigned on those changes, we were elected, and we have made those changes. Businesses and employees will certainly benefit from having a Government that knows what it takes to build business confidence, to enhance job security, and to provide an environment where new jobs can be created to replace the ones that are being lost.
Hon David Cunliffe Link to this
I raise a point of order, Mr Speaker. I imagine you know what the point of order will be. The question was a very simple one about whether he could confirm a number that had been provided. It was impossible to tell from the meandering answer whether he was trying to bring himself to the point where he could say yes. Could you please invite the Minister to clarify that now?
Mr SPEAKERThe member still has supplementary questions that he can use to pursue the sharp point, and I think it is reasonable that he should explore that avenue before raising concern about the Minister’s failure to answer.
Hon Trevor Mallard Link to this
I raise a point of order, Mr Speaker. It is a separate point of order. Again, I saw that you looked in his direction, but right at the beginning of that point of order, in the first sentence, the Leader of the House interjected. You are being quite strict on this side of the House, and my invitation to you is to be strict on the person on the other side who is meant to show leadership in this area, and ask him to cease.
Hon Gerry Brownlee Link to this
Mr Speaker, I apologise if any disrespect was shown to you—the Chair—or the House. But when a member takes a point of order and says: “Mr Speaker, I suspect you can anticipate what I am going to say.”, he or she surely has to expect the rest of the House to treat it with some degree of derision.
Dr Russel NormanMr Speaker, I want to address your original ruling. I am not disagreeing with your ruling as to whether the question had been addressed. I want to ask you about your statement that members can always follow up a matter by asking a further supplementary question about it. The problem with that is that members use up their supplementary questions. If the original question was not actually addressed, we use up our supplementary questions chasing the Minister. For smaller parties in particular, with fewer supplementary questions, that is a real problem.
I appreciate the point the honourable member has made, and I would certainly try to make sure that that did not happen. If, in fact, no answer was forthcoming, and the question was very plain, I would invite the member to repeat the question so that he or she did not run out of supplementary questions. I think that is a very important point.
Peseta Sam Lotu-IigaIn addition to 1.5 million taxpayers who will benefit from lower taxes, almost 1 million superannuitants, veterans, beneficiaries, and students will experience a rise in income from 1 April. Most will get a boost of over $13 a week. In addition, all the people who are on the minimum wage will have an increase from $12 to $12.50 an hour, and small and medium businesses will benefit from a 4-year, $480 million programme of tax changes. All of this is being achieved in the face of one of the worst recessions the country has experienced for many years.
Hon David Cunliffe Link to this
Can the Minister confirm that Pasifika people will be overwhelmingly represented amongst those who are net losers from yesterday’s tax changes, and can he further confirm that over 80 percent of all workers and taxpayers in the electorate of Māngere, a heavily Pacific Island electorate, will be worse off, and that some 75 percent in Mr Lotu-Iiga’s electorate will be worse off?
No, I cannot confirm that. The member has taken to using all sorts of dodgy numbers to come up with these figures. The fact is that 1.5 million taxpayers are getting a tax cut, and almost 1 million other people on income support are getting rises on 1 April. That is a major achievement in the face of a deepening recession, with dropping revenue and coordinated global recession.
Hon David Cunliffe Link to this
Can the Minister confirm that a company that invests, say, $200,000 in research and development activity to improve its products, make itself more competitive, and help position New Zealand for an export-led rebound will now lose $30,000 because of National scrapping the research and development tax credit?
If those numbers were right, that would be the case. However, a number of companies I have spoken to found that the amount they spent on consultants to work out the deduction they would get was more than the deduction. It is time Labour got real. Times have changed. We cannot have everything that it was nice to have. That Government’s record of reckless spending is one of the biggest problems that this Government has to deal with.
Hon David Cunliffe Link to this
I raise a point of order, Mr Speaker. Having exhausted my allocation of supplementary questions, I turn to you for your assistance.
Hon David Cunliffe Link to this
Well, if the Minister cannot take the heat, get out of the kitchen. [ Interruption]
We will have silence, thank you. Thanks; we have just got over that one. The problem was caused by an unhelpful interjection. I ask members not to interject. The Hon David Cunliffe does have the floor on a point of order.
Hon David Cunliffe Link to this
Thank you for helping the acting Prime Minister. Again, the question was a very simple question. In fact, it was a mathematical truism. Somehow, the member managed to create a Calvinistic sermon out of the response. Would it—
The member will sit down. The member must remember that points of order are meant to be made tersely, and are meant to be to the point. Whether or not there was a Calvinistic sermon is not consistent with the Standing Orders on making points of order. I take it the member is seeking my assistance because he believes that the reply was not adequate. If that is the case, all I can say to the member is that the Minister said that if the member’s figures were correct, then that would be the case. I believe that was an answer to his question.
Why does the Minister continue to ignore the advice from the International Monetary Fund that a tax cut - based stimulus package produces much better economic outcomes if it is targeted towards those on lower incomes?