"\u003C!DOCTYPE html\u003E\u003Chtml xmlns:xlink=\u0022http://www.w3.org/1999/xlink\u0022 xmlns:xsi=\u0022http://www.w3.org/2007/XMLSchema-instance\u0022 xmlns:mml=\u0022http://www.w3.org/1998/Math/MathML\u0022\u003E\n  \u003Chead\u003E\n    \u003CMETA http-equiv=\u0022Content-Type\u0022 content=\u0022text/html; charset=utf-16\u0022\u003E\n    \u003Cmeta name=\u0022viewport\u0022 content=\u0022width=device-width, initial-scale=1\u0022\u003E\n  \u003C/head\u003E\n  \u003Cbody style=\u0022font-family:sans-serif; font-size:100%;\u0022\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000001\u0022\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022 id=\u00226249cde8bc1c409d87afb4a02eac2d22\u0022\u003ETHURSDAY, 19 MAY 2022\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000003\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u002263e1fc64e34c42d89812e8e77104e509\u0022\u003ETHURSDAY, 19 MAY 2022\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000002\u0022\u003EThe Speaker took the Chair at 2 p.m.\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000004\u0022\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022 id=\u002282ae18fad5a840f79148487b2d8154b1\u0022\u003Ekarakia/prayers\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000006\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022144df9e14c514e7db32a5e37df112b9b\u0022\u003Ekarakia/prayers\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u002290f41da53e464dd3981f8dd98af84143\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000005\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002290f41da53e464dd3981f8dd98af84143\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: E te Atua kaha rawa, ka tuku whakamoemiti atu m\u0101tou, m\u014D ng\u0101 karakia kua waihotia mai ki runga i a m\u0101tou. Ka waiho i \u014D m\u0101tou p\u0101nga whaiaro katoa ki te taha. Ka mihi ki te Ku\u012Bni, me te inoi atu m\u014D te \u0101rahitanga i roto i \u014D m\u0101tou whakaaroarohanga, kia m\u014Dhio ai, kia whakaiti ai t\u0101 m\u0101tou whakahaere i ng\u0101 take o te Whare nei, m\u014D te oranga, te maung\u0101rongo, me te aroha o Aotearoa. \u0100mene.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000007\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E[Almighty God, we give thanks for the blessings which have been bestowed on us. Laying aside all personal interests, we acknowledge the Queen, and pray for guidance in our deliberations, that we may conduct the affairs of this House with wisdom and humility, for the welfare, peace, and compassion of New Zealand. Amen.]\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000008\u0022\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022 id=\u0022ce4b832008e24d87bd7d1ed08363cb15\u0022\u003EPetitions, Papers, Select Committee Reports, and Introduction of Bills\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000010\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022cfc327c403544d179769e1fdd36aef0e\u0022\u003EPetitions, Papers, Select Committee Reports, and Introduction of Bills\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022 data-id=\u0022b45d8be70a1d4096908f50b2044936c0\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000009\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022b45d8be70a1d4096908f50b2044936c0\u0022\u003ESPEAKER\u003C/span\u003E: A petition has been presented to the Clerk for presentation.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022\u0022 data-id=\u002227f7da645e924c3499443489caf0bd1f\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000011\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002227f7da645e924c3499443489caf0bd1f\u0022\u003ECLERK\u003C/span\u003E: Petition of Barnabas Fund New Zealand requesting that the House urge the Government to officially recognise as genocide the mass murder of Armenian, Assyrian, Syriac, and Greek Christians in the Ottoman Empire.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022 data-id=\u00226906c4b914644871bd562e5229ff32fd\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000012\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226906c4b914644871bd562e5229ff32fd\u0022\u003ESPEAKER\u003C/span\u003E: That petition stands referred to the Petitions Committee. On 17 May, the Ministry for the Environment, Manat\u016B M\u014D Te Taiao, Aotearoa New Zealand\u2019s First Emissions Reduction Plan, together with Aotearoa New Zealand\u2019s First Emissions Reduction Plan: Table of Actions were presented. Those papers are published under the authority of the House. Select committee reports have been delivered for presentation.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022\u0022 data-id=\u0022c2b81faa267f43e084ed3c5da934807d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000013\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c2b81faa267f43e084ed3c5da934807d\u0022\u003ECLERK\u003C/span\u003E: \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000014\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003EReport of the Finance and Expenditure Committee on the Reserve Bank of New Zealand\u2019s Financial Stability Report May 2022\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000015\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003Ereport of the Justice Committee on the petition of Karl Thomas\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000016\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003Ereports of the Regulations Review Committee on the complaint about the Resource Management (National Environmental Standards for Freshwater) Regulations 2020 and on the examination of COVID-19 orders presented between 16 and 29 March 2022.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022 data-id=\u0022e6ed2d0cd5c04833993934b6823223ce\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000017\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022e6ed2d0cd5c04833993934b6823223ce\u0022\u003ESPEAKER\u003C/span\u003E: The reports of the Finance and Expenditure and Regulations Review committees are set down for consideration. The Clerk has been informed of the introduction of bills.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022\u0022 data-id=\u0022b867d65450334309badcb50f9efd21b4\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000018\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022b867d65450334309badcb50f9efd21b4\u0022\u003ECLERK\u003C/span\u003E:\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000019\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003EAppropriation (2021/22 Supplementary Estimates) Bill, introduction.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000020\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003ERepeal of Good Friday and Easter Sunday as Restricted Trading Days (Shop Trading and Sale of Alcohol) Amendment Bill, introduction.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000021\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003EElectoral (Strengthening Democracy) Amendment Bill, introduction.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000022\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003EIncreased Penalties for Breach of Biosecurity Bill, introduction.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022 data-id=\u0022f7819429617b4c1d816cca30a84edaa8\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000023\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f7819429617b4c1d816cca30a84edaa8\u0022\u003ESPEAKER\u003C/span\u003E: Those bills are set down for first reading.\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000024\u0022\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022 id=\u0022101fbfeb9b0f41b2bd3a84ae0dc860c0\u0022\u003ESUPPLEMENTARY ESTIMATES DOCUMENTS\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000026\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u002278c8fe32de43488d8072a125298d6bcd\u0022\u003ESUPPLEMENTARY ESTIMATES DOCUMENTS\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022 data-id=\u0022ac2fdfdcbcf0439c84e28180b1716598\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000025\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022ac2fdfdcbcf0439c84e28180b1716598\u0022\u003EHon GRANT ROBERTSON (Minister of Finance):\u003C/span\u003E I present the Supplementary Estimates of Appropriations for the Government of New Zealand for the Year Ending 30\u00A0June 2022.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022 data-id=\u00224b84e1eb170540199335157190e36a86\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000027\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00224b84e1eb170540199335157190e36a86\u0022\u003ESPEAKER\u003C/span\u003E: That paper is published under the authority of the House.\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000028\u0022\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022 id=\u0022aef9bb0b7a3c47ddb80d27a62465d72d\u0022\u003EBudget Documents\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000030\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022c080735262814fd8b34f07a1ac5d3e82\u0022\u003EBudget Documents\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022 data-id=\u00220f07030363474e6a8e2ac5d7ba734fbd\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000029\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220f07030363474e6a8e2ac5d7ba734fbd\u0022\u003EHon GRANT ROBERTSON (Minister of Finance):\u003C/span\u003E I present the 2022 Budget speech; the Budget at a Glance 2022; the Wellbeing Budget 2022, including reports on the fiscal strategy, on child poverty, and the summary of initiatives; the Budget Economic and Fiscal Update 2022; and the Estimates of Appropriations for the Government of New Zealand for the year ending 30 June 2023.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022 data-id=\u002214d19229990d410ea6995edf0d4e2840\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000031\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002214d19229990d410ea6995edf0d4e2840\u0022\u003ESPEAKER\u003C/span\u003E: Those papers are published under the authority of the House.\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022\u003EBills\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000032\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u002284342455f6c3465a987a7c4e1490b2ed\u0022\u003EAppropriation (2022/23 Estimates) Bill\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000033\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022ccdbe773ef9f42c695b8d13ea067dba3\u0022\u003EIntroduction\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022\u0022 data-id=\u002229ebee320d49483c89dc128af34d537f\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000034\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002229ebee320d49483c89dc128af34d537f\u0022\u003ECLERK\u003C/span\u003E: Appropriation (2022/23 Estimates) Bill, introduction.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022 data-id=\u0022b143dcac260f430198cbe345c577b56c\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000035\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022b143dcac260f430198cbe345c577b56c\u0022\u003ESPEAKER\u003C/span\u003E: The Appropriation (2022/23 Estimates) Bill is set down for first reading forthwith.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000036\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022b53bc8ef11444f01bad39cd35936945f\u0022\u003EFirst Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022 data-id=\u00221c91bf69dd204d6aaef3553dfde91b5f\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000037\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00221c91bf69dd204d6aaef3553dfde91b5f\u0022\u003EHon GRANT ROBERTSON (Minister of Finance):\u003C/span\u003E I move, That the Appropriation (2022/23 Estimates) Bill be now read a first time. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022 data-id=\u00228a9e2e5ef39941f9adb079cee3815be7\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000038\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00228a9e2e5ef39941f9adb079cee3815be7\u0022\u003ESPEAKER\u003C/span\u003E: The question is that the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000039\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000040\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022\u003EBill read a first time.\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000041\u0022\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022 id=\u00223e58eaa66c36434aad7004933aa3f59c\u0022\u003EBudget Statement\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000042\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u002255f56fdef2474e2db26e362cf462ee58\u0022\u003ESecond Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022 data-id=\u0022f219a5ed620a4908bee846f2523b0614\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000043\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f219a5ed620a4908bee846f2523b0614\u0022\u003EHon GRANT ROBERTSON (Minister of Finance):\u003C/span\u003E I move, That the Appropriation (2022/23 Estimates) Bill be now read a second time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000044\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EIt is my great pleasure to present New Zealand\u2019s fourth Wellbeing Budget. In each of this Government\u2019s three previous Wellbeing Budgets, we have not only considered the performance of our economy and finances but also the wellbeing of our people, the health of our environment, and the strength of our communities.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000045\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EIn Budget 2020 and 2021, we applied that wellbeing approach to dealing with COVID19. This meant taking a health- and science-led approach, focusing on caring for our people and our communities. It has meant that New Zealand has reached this stage of the pandemic in as good a position as any other country. That is not just because we still have one of the lowest death rates from COVID but also because our economy is in a stronger position than most. This has been recognised by two triple A credit ratings from leading ratings agencies, and by the likes of the OECD and IMF. It has been a tough couple of years for New Zealanders. I want to again thank businesses, workers, and all members of the community for your hard work. It means we are now in a strong position to meet the next set of challenges and take the new opportunities to provide all New Zealanders with economic security in good times and bad.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000046\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThe investments we are making in this Budget build on the progress made in Budget 2021 towards the Government\u2019s three goals for this term. These are: continuing to keep New Zealanders safe from COVID-19; accelerating the recovery and the rebuild from the impacts of COVID-19; and laying the foundations for the future, including addressing key issues such as climate change, housing affordability, and child poverty.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000047\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBudget 2022 invests $5.9 billion a year in net new operating spending while introducing multi-year funding packages that also draw from Budget 2023 and Budget 2024 operating allowances. We are investing $2.9 billion from the Climate Emergency Response Fund (CERF) to meet our emissions reduction plan and lay the foundations for a long-term transition to a low-emissions, high-wage economy. We are also supporting New Zealanders to meet the rising cost of living caused by global inflation pressures, through a targeted package of support focusing on low and middle income New Zealanders, including a short-term cost of living payment for around 2.1 million people.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000048\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003ENew Zealand\u2019s overall wellbeing has held up well during the COVID-19 pandemic. Our mortality rate remains lower than those of our international peers, and life satisfaction remains high across all ethnicities. While the economic contraction associated with COVID-19 was much deeper and much more sudden than what New Zealand experienced during the global financial crisis, the economy has proven to be resilient, with economic activity in the December 2021 quarter 3.5 percent ahead of pre-pandemic levels.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000049\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EUnemployment at 3.2 percent is at record lows, household incomes have continued to rise, and balance sheets are strong across almost every sector. We have done this with some of the lowest debt in the world. Our net debt is forecast to be around one-half of Australia\u2019s, a quarter of the UK\u2019s, and a fifth of the USA\u2019s, using a comparable measure. As I have indicated, we are moving to a new debt indicator that is more in line with how other countries measure their net debt, and more accurately reflects the Government\u2019s fiscal position. On that indicator, net debt will now peak at 19.9 percent of GDP\u2014or 41 percent using the old indicator\u2014before reducing further over the forecast period.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000050\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EEconomic growth is forecast to peak at 4.2 percent and average 2.1 percent across the forecast period. We are forecast to reach an operating balance before gains and losses\u2014the OBEGAL\u2014surplus in the 2024-25 financial year. This will be five years after COVID hit us and is a year earlier than the previous Government returned to surplus after the global financial crisis. New fiscal rules will oblige the Government to run a small surplus on average, over time, once we have returned to surplus, and maintain net debt at a ceiling below 30 percent of GDP. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000051\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThis approach means that current expenses will be met from current revenue. We will have a prudent level of debt that allows for a buffer against future shocks while providing room for high-quality and much-needed investment to close our infrastructure deficit. This balanced approach to fiscal policy is critical as we face the immediate challenges that are in front of us and as we address the long-term issues in our economy. The impacts of COVID-19 remain with us. Experiences of the pandemic differ greatly among New Zealanders, and its long-term effects have yet to be seen. Longstanding challenges around climate change, child poverty, productivity, and housing quality and affordability have not lost their urgency.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000052\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EOn top of that, Budget 2022 is being delivered in a difficult time for the global economy and for many New Zealanders. The impacts of rising inflation due to COVID, supply chain challenges, and pressure on oil prices from the Russian invasion of Ukraine are being felt at the petrol pump and at the supermarket. This Budget responds to these immediate challenges facing New Zealanders while also looking ahead. The here and now matters, but so too does tomorrow and making sure that we provide for a secure future. This Budget is about both\u2014a careful balance to provide economic security into the future and make sure we invest for what is needed now without adding to the drivers of inflation.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000053\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EI will talk more about our long-term initiatives shortly, but first, I want to focus on our immediate challenges. I am acutely aware of the cost of living pressures that exist for many people, particularly those on low and middle incomes. While the current levels of inflation are expected to be temporary, this doesn\u2019t take away from the impact it is having on households and businesses. New Zealanders are not alone in feeling these pressures: recently, the US has recorded inflation of 8.5 percent; Canada, 6.7 percent; Germany, 7.3 percent; and, as of last night, the UK, 9 percent. The very latest OECD average was inflation of 8.8 percent in March, putting New Zealand about middle of the pack. Such international comparisons, however, do not diminish the impact on New Zealanders who are currently struggling to deal with rising costs.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000054\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThe Government, throughout COVID, has supported households and businesses. More than $20 billion was provided in across-the-board support from the wage subsidy scheme, resurgence support, and COVID support payments. This has kept many people in work: 62 percent of all jobs were supported in 2020 by the wage subsidy scheme, and 47 percent in 2021.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000055\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EIn response to the rapid spike in global oil prices following the war in Ukraine, we moved quickly in March to reduce the fuel excise by 25c a litre. For a family that fills up an average car every week, that represents up to $17 per tank, or more than $220 worth of support over the three months. Road-user charges were similarly reduced and public transport prices halved for the same period. These measures were on top of changes we made to increase income support for low and middle income families from 1 April this year, including a third lift in weekly main benefit rates following those in 2020 and 2021. The changes we have made since coming into Government mean that 364,000 people who receive income support are better off by an average of $109 per week. For those with children, they are better off by an average of $175 per week.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000056\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EAs we move through these next few months, further targeted support is being provided for low and middle income New Zealanders. The resumption of the winter energy payment from 1 May is providing this for superannuitants and those on income support, with at least $80 per month from the beginning of May until the end of September.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000057\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBut the increasing cost of living is affecting those on middle incomes as well. To provide targeted support to a wider group, through this Budget the Government is investing more than $1 billion in a cost of living package targeted at low and middle income households. The package includes: an extension to the reduction of fuel excise duty introduced in March, by two months until mid-August; an extension of the road-user charges cuts introduced in April, until mid-September; and an extension of half-price public transport fares introduced on 1 April, until the end of August. I can also announce today that, from September, we will introduce Community Connect, to extend half-price public transport to the more than 1 million community services card holders on a permanent basis. In addition to helping reduce costs for households, the public transport price cuts will also further our climate change and emissions reduction objectives. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000058\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EWe will also provide short-term targeted support to low and middle income New Zealanders through a $350 cost of living payment, across three monthly instalments from August 1. This works out to about $27 per week for an estimated 2.1 million New Zealanders. This payment will be available to people aged 18 and over who earn below $70,000 per annum, based on last year\u2019s tax data, and who are not eligible for the winter energy payment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000059\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EWe are well aware that this is only a contribution to the increased costs that people are facing, but it is a targeted way we can support people through this challenging period while not excessively exacerbating inflation. The payment has been set at half of the couple rate of the winter energy payment and is a recognition of the impact of inflation on a wider group of New Zealanders than those currently eligible for the winter energy payment. As a result of both the winter energy payment and the cost of living payment, 81 percent of working-age New Zealanders are being given temporary support to deal with cost of living pressures. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000060\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThe Budget provides further important changes that will support those on low incomes. Budget 2022 will change how sole-parent beneficiaries receive child support payments. These payments will be directly passed on as income to sole parents receiving benefits from 2023, giving them more money to help their families and wh\u0101nau. This change is estimated to lift between 6,000 and 14,000 children out of poverty.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000061\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EWe are also delivering on a manifesto commitment by more than trebling the level of dental grants available to low income earners to $1,000 per annum. Criteria changes will ensure these grants can be used for multiple visits for immediate and essential care.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000062\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EWhile much of the inflation being experienced in New Zealand is driven by forces beyond our shores, we are also focused on addressing the supply constraints and other underlying issues that fuel it. This includes increasing labour supply through our immigration rebalance, and reducing our reliance on volatile commodities like oil by decarbonising our transport fleet through initiatives like the Clean Car Discount.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000063\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EWe are also committed to boosting competition in New Zealand\u2019s grocery sector to ensure people pay fair prices for food and other basics. Today, we are introducing legislation that will remove barriers to new retailers entering the market. Specifically, this will prohibit the restrictive covenants on land that major grocery retailers use to limit site availability for competitors. Such covenants will be prohibited immediately once the bill comes into effect, and I anticipate that competitors can begin to consider new sites shortly thereafter.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000064\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThere are other measures the Government will take in response to the Commerce Commission\u2019s recommendations, but this is one thing that can be done relatively simply and quickly. Overall, the cost of living package in Budget 2022 represents a targeted response to the pressures being faced by low and middle income households and provides support without making the cause of the problem worse.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000065\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EMoving to our longer-term challenges and opportunities, Budget 2022 marks an historic milestone in tackling climate change. Climate change is the most pressing long-term challenge we face. It will have a significant impact on New Zealanders\u2019 living standards in the coming years, impacting the natural environment, our health, and our economic, social, and cultural wellbeing.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000066\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003ERecent reports that have highlighted worsening predictions for sea-level rise remind us again that we must act now for the sake of future generations. The action required presents opportunities to increase our economic security as we develop new low-emissions industries and the knowledge and skills needed to transition to a high-wage, low-emissions economy. New Zealand\u2019s reputation in the world, and the brand on which we trade, is tied to the action we take on environmental issues, including climate change.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000067\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EMitigating and adapting to climate change requires a sustainable, forward-looking response and significant investments across multiple Budgets. To address this, we have established the Climate Emergency Response Fund with an initial $4.5 billion down payment from the expected cash proceeds from the emissions trading scheme (ETS).\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000068\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EFor Budget 2022, investments are focused on mitigation, particularly initiatives to deliver actions in the emissions reduction plan. In future, the criteria will be extended to include adaptation. As announced earlier this week, the CERF investments for Budget 2022 total $2.9 billion and include a strong focus on transport initiatives. These include $569 million to support low-income households to shift to low-emissions alternatives when scrapping a vehicle, and $375 million to reduce reliance on cars and support the uptake of active and shared transport modes.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000069\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThere are also significant climate-focused energy and industry investments, including $653 million to fund further decarbonisation, including increasing the scope of the Government Investment in Decarbonising Industry Fund to support businesses to shift to low-carbon energy sources, and $73 million to deliver more insulation and heating retrofits for low-income homeowners by extending the Warmer Kiwi Homes programme.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000070\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EIn the agricultural sector, climate investments include $339 million of funding for a centre for climate action in agriculture to support innovation and research to reduce emissions, and $6 million for the implementation of an agricultural emissions pricing scheme, based on the outcomes of the Primary Sector Climate Action Partnership\u2014He Waka Eke Noa.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000071\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EIn the forestry sector, $91 million is allocated to reduce the use of coal and other carbon-intensive fuels and materials by increasing woody biomass availability, and $145 million to create large-scale native forests as carbon sinks, to offset emissions in other sectors where abatement is difficult.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000072\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThe Government\u2019s emissions reductions plan will help us meet the carbon budgets set by the climate commission. They are achievable but will require all sectors to play their part. They will also require sustained investment. Treasury has updated its forecasts for ETS cash proceeds by a total of $800 million, and the Government has agreed to use this increase to top up the fund, leaving $1.5 billion remaining. We will review the size of the fund on a regular basis, with the next opportunity being the Half Year Economic and Fiscal Update in December.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000073\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThe climate investments we\u2019ve announced in Budget 2022 are funded by those who pollute, not from increasing debt or other revenue. They will see the Government, in partnership with business, do the initial heavy lifting in our climate response and, in doing so, give households greater choice about how they participate in climate action.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000074\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EI would like to acknowledge our cooperation agreement partners, the Green Party, and in particular the Hon James Shaw for his role across two terms of Government in bringing this work together. It is no longer good enough to just talk the talk on climate action. At Budget 2022, we walk the walk\u2014or take public transport or another sustainable mode of transport; a dad joke for Minister Shaw.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000075\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003ECOVID-19 has highlighted the need to reform New Zealand\u2019s health system and ensure we are delivering quality services nationwide in an equitable and sustainable way. Our health system is staffed by dedicated and talented health professionals, but the system in which they are working is fragmented, inefficient, and financially unsustainable. For too long, New Zealanders\u2019 access to health services has been a postcode lottery. For decades, we have seen inequalities grow in the health outcomes for M\u0101ori and Pacific peoples. Today, that changes.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000076\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBudget 2022 provides the largest investment ever in our health system, with $11.1 billion in new funding to put that system on a sustainable financial footing. This will ensure that Health New Zealand and the M\u0101ori Health Authority are able to make the changes needed to deliver better health services to New Zealanders wherever they live. To set this system up for success, we need to change the way we provide funding for health.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000077\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EIn recent years, district health boards have consistently run deficits, with funding unable to meet growing demand and address historic cost pressures. Relying on the annual Budget cycle for funding has made it difficult to plan for future investments and address long-term challenges in the health system. To address this, we are introducing a new multi-year funding model for health, beginning with two years of funding before eventually moving toward a three-year funding cycle from Budget 2024.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000078\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThe two-year transitional package agreed through Budget 2022 begins with an investment of $1.8 billion per annum, including funding to deal with the deficits of the previous system. This will be followed by a further $1.3 billion per annum from 2023. Unlike in previous Budgets, where cost pressures for specific services have had to be traded off against each other, delayed or partly funded, this general increase will allow Health New Zealand to take a central view and identify priorities for funding across the system. The transformation of our health system will take time, but these first investments will make significant progress towards a fully equitable, sustainable, and quality health system for the future.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000079\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EWithin the funding allocated in Budget 2022, there is $488 million for primary and community care. This will roll out local models of care that are tailored to the populations they serve, as well as securing and developing the capacity and capability of M\u0101ori and Pacific healthcare providers.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000080\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThe investments for M\u0101ori healthcare providers contribute to a wider package of initiatives totalling $580 million across the health, social, and justice sectors, which contribute to M\u0101ori health and wellbeing\u2014this includes $166 million for Wh\u0101nau Ora providers to continue supporting more than 40,000 wh\u0101nau.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000081\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThe Budget will also make the largest ever single contribution to Pharmac\u2019s medicines budget. We\u2019re investing $191 million over the next two years to make more medicines and other health treatments available. The two-year funding will align Pharmac with the new overall multi-year health funding allocation. Pharmac\u2019s total funding will be $1.2 billion, which is up 43 percent since we took office in 2017.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000082\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThere is significant support in Budget 2022 to secure the future of our ambulance services: $166 million over four years provides funding to add 48 more ambulances and 13 other vehicles to New Zealand\u2019s road ambulance fleet and to allow up to 248 more paramedics and front-line staff to be recruited; $90.7 million over four years will go towards New Zealand\u2019s air ambulance services\u2014this includes the replacement of some ageing aircraft with modern, fit for purpose helicopters and at least one new helicopter with additional crew.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000083\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBudget 2022 allocates $202 million to further improve New Zealanders\u2019 access to mental health and addiction services. This Budget focuses on improving care for those who have the highest needs. We\u2019re investing $100 million to increase the availability of specialist mental health and addiction services and to strengthen existing services in targeted areas across the country. We\u2019re also continuing to invest in two programmes that support young people\u2019s mental health: Mana Ake, which provides mental wellbeing support for primary and intermediate school - aged students, and Piki, a pilot scheme which provides integrated mental health and addiction support for young people.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000084\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EWe\u2019re also continuing our significant investment in hospitals and other health infrastructure, with an injection of a further $1.3 billion. This will include a further investment for the rebuild of Whang\u0101rei Hospital and the initial works to re-develop Nelson Hospital. This takes total health capital investment since Budget 2018 to more than $6.9 billion.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000085\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EIn every Budget, there are always smaller projects that might get lost on the day but are very meaningful. To highlight just one example: this year, we\u2019re providing $7 million of funding for the operation of portable retinal cameras to ensure equitable access for screening premature babies, to address one of the leading causes of blindness.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000086\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EIn total, around a third of Budget 2022 investments are for health. This speaks to our priorities as a Government. Our vision is for all New Zealanders\u2014no matter where they live or who they are\u2014to have access to high-quality health services to support the best quality of life. I am proud to say that this Budget is a significant step towards making this vision a reality.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000087\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EIn response to COVID-19, we went hard and we went early, an approach that has paid huge dividends. Key to this success was the establishment of the COVID-19 Response and Recovery Fund. This fund has allowed us to invest in crucial response functions and targeted supports that enable New Zealanders to weather and recover from the economic impacts of COVID-19. As our policy response to the pandemic evolves and we adjust to living with COVID-19, our fiscal response is evolving as well. Our COVID-19 response is increasingly part of standard Public Service delivery, so we no longer expect to need the funding flexibility that was essential early on. As a result, we have closed the COVID-19 Response and Recovery Fund. We are reprioritising the remaining funding and bringing future COVID-19 - related costs within standard Budget processes. We continue to have fiscal headroom to respond, as necessary, in the event of a major resurgence or a new variant. We are taking a prudent approach to that possibility by setting aside $1.2 billion so we can respond rapidly to any immediate public health needs related to COVID19 that cannot wait until Budget 2023.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000088\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThe uncertain and volatile global economic situation highlights the need for an economic plan that supports diversification of the New Zealand economy, creates new products and services, and increases our resilience in an uncertain world. Our economic plan is to build a high-wage, low-emissions economy that provides economic security in good times and in bad.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000089\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThis Budget includes a substantial package to unleash the potential in our economy. We\u2019re funding the ongoing development of industry transformation plans (ITPs). ITPs bring industry players together to increase productivity and resilience. Budget 2022 invests $37 million for the Construction Sector Accord Transformation Plan to increase the productivity, capability, and resilience of our construction sector; $30 million for the Advanced Manufacturing ITP\u2014this plan focuses on identifying existing and emerging points of comparative advantage and maximising our global brand and international connections; an additional $5 million for the Agritech ITP to build the skills and practices required to transform the sector into a sustainable and competitive export industry; and $20 million for the digital ITP to grow the software-as-a-service sector and ensure that we grow the skills and talent we need to create more high-wage jobs.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000090\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThe Budget also recognises the importance of the tourism sector to rebuild in a sustainable way. An innovation programme for tourism is being created by reprioritising funding not required from earlier emergency support. It will be designed with the sector to ensure it targets investment to where we can truly innovate and develop our tourism offering.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000091\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003ESmall businesses are a key component in the transition to a high-wage, low-emissions economy. We are setting aside $100 million of capital funding for a business growth fund being developed alongside New Zealand\u2019s major banks. This will improve small and medium enterprises\u2019 access to finance, enabling them to grow, create jobs, and increase their contribution to our wider economic development.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000092\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EWe know that when our regions do well, all of New Zealand benefits. To help the people, businesses, and industries based in the regions reach their full potential, we are fully funding the $200 million Regional Strategic Partnership Fund to invest in local projects tailored to a region\u2019s particular needs and advantages. To further help those in the regions, we are fulfilling another manifesto commitment by investing $60 million to improve broadband infrastructure in the worst-served areas, enabling stronger connections and greater productivity.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000093\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThis Government is focused on delivering better infrastructure, and that is a key component of our vision for a high-wage, low-emissions economy. Our first 30-year New Zealand Infrastructure Strategy from Te Waihanga, the New Zealand Infrastructure Commission, shows that, if we continue on the path of the past four decades, we will not be able to meet our future infrastructure needs. Under-investment in our crucial infrastructure is one of New Zealand\u2019s greatest long-term economic challenges. We have dedicated more than $60 billion to infrastructure over the next five years, but that alone is not enough. We need to be smarter about the way we plan, deliver, and use our infrastructure. This will mean getting more from the infrastructure that we do build, reducing costs, and prioritising for the greatest impact. Te Waihanga\u2019s strategy will be a key enabler of many of our Government\u2019s priorities\u2014tackling the housing crisis, responding to climate change, and building a more secure economy.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000094\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBudget 2022\u2019s new investments in infrastructure include $349 million of capital funding to replace and modernise our rail assets, and $1.3 billion to upgrade our health infrastructure to support current and future demand. In total, Budget 2022 includes $4.7 billion of capital investments from the $9.8 billion multi-year capital allowance.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000095\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBudget 2022 also has a strong focus on transitioning to a digital economy, improving how we deliver public services and keeping our existing digital services safe from cyber-security risks. Key investments include: setting aside funding for a new digital system for our courts, making it easier for New Zealanders to interact with the justice system; $220 million of operating and $100 million of capital spending set aside for investments in health system data and digital infrastructure and capability; and an investment in critical satellite capability to improve the accuracy of GPS.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000096\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThe Government is committed to delivering quality education, training, and skills development so that all New Zealanders get the opportunities they need to live the lives they value. The Budget 2022 package includes a total of $2 billion in operating funding and $855 million of capital for the education system, including investments in infrastructure, new initiatives, and funding to address critical cost pressures.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000097\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThe newly developed Equity Index will receive $293 million operating and $8 million capital funding to replace the outdated decile system and significantly increase equity funding to schools. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000098\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EAs part of the Government\u2019s commitment to strengthening the role of te reo M\u0101ori in our education system, Budget 2022 provides $75 million to support providers of te reo M\u0101ori immersion and kaupapa M\u0101ori learning throughout our education system. As demand for M\u0101ori language education grows, we are investing $21 million operating and $105 million capital investment to provide quality classrooms for our kura.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000099\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EInvesting in quality education means not only investing in students but also those who support them. Budget 2022 builds on the investment made in the past two Budgets by providing $275 million towards progressing pay parity in our early childhood education sector. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000100\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThe Government\u2019s investment in supporting employment opportunities for New Zealanders has been crucial to the COVID-19 response and recovery and has supported the record-low unemployment rate. We are providing further funding for successful programmes like Mana in Mahi, which provides significant support to people furthest from the labour market to upskill and enter employment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000101\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EWe are also extending the Apprenticeship Boost initiative, supporting firms to keep early-stage apprentices employed and to bring on new apprentices, and strengthen the skilled workforces New Zealand needs to recover from the impacts of COVID-19. More than 190,000 Kiwis have been supported through our investments in trades training since the start of COVID, and 38,000 apprentices are expected to benefit from the extension of the Apprenticeship Boost through to the end of 2023.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000102\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBudget 2022 also sets aside $60 million to support progress on the continued design and implementation of the New Zealand Income Insurance Scheme. This scheme is being jointly designed with BusinessNZ and the Council of Trade Unions to better support New Zealanders who lose their jobs through no fault of their own. The scheme will better protect workers and incomes, and also increase the availability of skilled workers. It will help communities and industries during economic shocks and transitions, contributing to a more secure economy. There is considerable work to get the scheme up and running, and it is now expected to be operational in 2024.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000103\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBudget 2022 includes over $1 billion in investments to support better M\u0101ori health, education, and economic outcomes, as well as stronger cultural wellbeing. We are continuing to foster employment opportunities for M\u0101ori through the continuation of the cadetship programme and support for M\u0101ori entities delivering employment training through the M\u0101ori Trades and Training Fund. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000104\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EWe\u2019re laying foundations to support M\u0101ori economic development, with $10 million for Te Ringa H\u0101pai Whenua Infrastructure Fund, which will enable owners to undertake economic, cultural, social, and environmental projects on their whenua. Our continued support for the progressive procurement programme, with an additional $26 million, will help to build capability for M\u0101ori businesses to effectively participate in public sector procurement processes and increase supplier diversity. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000105\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBuilding capability and employment opportunities is also key to our investment in Pacific peoples, with $18 million for Pacific STEAM futures and $8 million for delivering employment and training services through Tupu Aotearoa. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000106\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EWe remain committed to protecting and uplifting M\u0101ori and Pacific culture, knowledge, and history. Budget 2022 supports the growth and development of the M\u0101ori media sector and provides funding to protect m\u0101tauranga M\u0101ori and other taonga.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000107\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EWe are also following through on the commitment made to empower Pacific communities to tell their stories of the Dawn Raids, making progress towards reconciliation through community grants for multimedia projects, an online histories platform, and creating an official historical account.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000108\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EAs a Government, we are committed to taking substantial action to reduce child poverty and hardship in New Zealand beyond the 66,500 children already lifted out of poverty. While our targets are ambitious, the latest figures for 2020-21 are encouraging. They show rates on all nine income and material hardship measures in the Child Poverty Reduction Act are trending downwards, and we have achieved two out of three of our first three-year targets and made significant reductions against the third target. Through Budget 2022, we are continuing to support families through direct and indirect investments in child poverty and wellbeing. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000109\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThis Budget also has a strong focus on providing more equitable access to services and improving wellbeing outcomes for New Zealanders who live with disabilities. A $943 million package will enable disability system providers to meet demand, establish a new Ministry for Disabled People, and invest in the regional-based roll-out of the Enabling Good Lives approach to disability support services.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000110\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBudget 2022 also includes $1.5 billion of investment in public, transitional, and emergency housing as part of the Government\u2019s continuing efforts to address challenges to housing access and affordability. This adds to the 9,000 extra public housing places already delivered under this Government. This funding includes $1 billion for public and transitional housing, $355 million for changes to the emergency housing system, $75 million to progress the Homelessness Action Plan, and $221 million for the affordable housing fund. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000111\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003ETargeted support for first-home buyers through the Budget includes increases to the First Home Grant caps, which will help more Kiwi families get the security of homeownership as prices become more sustainable against a backdrop of record house-building in this country.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000112\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBudget 2022 continues to embed a wellbeing approach into the Budget process and the wider public finance system. The innovations introduced as part of Budget 2022 will allow us to better address complex, multi-generational challenges and facilitate longer-term investment. These changes include a multi-year funding cycle for health services and establishing the multi-year Climate Emergency Response Fund, as well as a pilot of two clusters of agencies in the justice and natural resources sectors. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000113\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EKey to all these innovations is a focus on driving delivery and value for money. The clusters help break down silos between agencies and also help Ministers to collectively make trade-offs across related areas. Three years of funding gives agencies the certainty to plan ahead, with a focus on achieving longer-term outcomes and managing cost fluctuations. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000114\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EMinisters and agencies have worked together to develop a funding package based on four priorities for a more effective overall justice system. Key justice cluster investments include: $46 million to develop a cross-sector model to guide future investment in services for victims, and increasing the uptake of financial grants under the Victim Assistance Scheme; and $190 million to maintain and strengthen legal aid to ensure access to justice for people who cannot afford a lawyer.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000115\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBudget 2022 also invests in solutions to prevent harm from crime in communities and improve the safety of our front-line workers. This includes $92 million of operating and $2 million capital funding for effective implementation of the Government\u2019s end-to-end strategy to prevent harm from serious and organised crime in New Zealand. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000116\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EReforming the resource management system to deliver better outcomes for our natural and urban environments is a priority for this Government. It is a key focus of the natural resources cluster, with $179 million to support the successful implementation of these reforms. Other key natural resources investments include $118 million operating and $5 million capital funding for a permanent network of advisory services to support more sustainable and productive use of rural land, and $40 million total operating to progress industry transformation plans for our primary sectors, including fisheries, forestry, and the food and beverage sectors.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000117\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBudget 2022 comes at a time when the global economy is uncertain and volatile. Our response to that requires a careful balance. Faced with the current elevated levels of global inflation, some would have us pull back on supporting New Zealanders with the public services that they need. But that will not reduce the prices that Kiwis are facing at the pump or in the supermarket; it will only undermine the wellbeing and security of our people, and it is not an option I am prepared to consider. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000118\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EInstead, this Budget backs New Zealanders in shaping the new normal that is life with COVID. It builds on the collective hard work that has delivered a strong economic base to meet core needs across health, education, and housing, while also supporting climate action and investing in the skills, infrastructure, and industries we need to grow higher-paying jobs. We are providing support in the here and now for those facing cost of living pressures, while carefully managing our spending and keeping debt under control. This Budget represents a major step towards a future where we provide economic security to all New Zealanders while delivering higher-wage jobs that support a low-emissions economy.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000119\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EAotearoa New Zealand has navigated COVID better than almost any country in the world. We did that by putting our people first, by taking a wellbeing approach, and by targeting our support where it was needed the most. We will now take the success of that approach and build on that foundation to overcome the challenges we face and seize the opportunities for a secure future for all New Zealanders. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000120\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EI commend Budget 2022, A Secure Future, to the House.\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000121\u0022\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022 id=\u0022c6abf0befa73459e9d4beac698e9f0d4\u0022\u003EBudget Debate\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000123\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022ea701ece79534fb1a31f737b540a4e42\u0022\u003EBudget Debate\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022 data-id=\u00224dfc57151fd54205a8e7928205cf5413\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000122\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00224dfc57151fd54205a8e7928205cf5413\u0022\u003ECHRISTOPHER LUXON (Leader of the Opposition): I move, That all the words after \u201CThat\u201D be replaced with \u201Cthis House, and the people of New Zealand, have lost confidence in this Government, because this Budget takes them backwards. Households are going backwards. The books are going backwards. Outcomes are going backwards. The country is going backwards.\u201D\u003C/span\u003E\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000124\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003EGrant Robertson had one task in this Budget, and that was to ruthlessly focus everything in this Budget around overcoming the cost of living crisis and to stop New Zealanders going backwards. But it\u2019s clear that he\u2019s failed, because Grant Robertson has delivered the \u201Cbackwards\u201D Budget. Now, I have to say, we had a moment. We thought about calling it the \u201CBudget blowout\u201D Budget, then we thought maybe it\u2019s just the \u201Cband-aid\u201D Budget, but we landed on the \u201Cbackwards\u201D Budget, because when you cut through all the words and you strip out all the spin and look at the facts of it, the sad news for New Zealanders is that Kiwis are going backwards, the books are going backwards, and the outcomes are going backwards.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000125\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003ENow, the sad part of this Budget is that the reality is that Kiwi families and Kiwi households are going backwards. They\u2019re being squeezed by this massive cost of living crisis. And I want New Zealanders to get really clear about where we are and what\u2019s happening with this cost of living crisis, because inflation is at a 30-year high. It\u2019s higher than most of our trading partners, despite what Jacinda Ardern and Grant Robertson will tell us, and it\u2019s actually getting a grip in this economy. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000126\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003ENow, some people, like David Parker, are students of economic history, and if you go back to New Zealand in the early 1980s, we remember interest rates being at 20 percent and we remember double-digit inflation. You look around the world, and inflation destroys economies. And once it gets in, it\u2019s hard to get out, and it causes hurt and pain to people everywhere. We\u2019ve got inflation now at just under 7 percent, we\u2019ve got wage growth only at 3 percent, and that means all Kiwis are going back faster than they\u2019ve been going in the last three decades. Mortgage costs are up because interest rates are up, rents are up $150, food prices are up the highest they\u2019ve been in over a decade, and petrol is up over $3 a litre. And I can tell you, Kiwis up and down this country are feeling that pain. And this Budget will be putting Kiwis backwards into the future. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000127\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003EThe Budget forecasts that inflation isn\u2019t actually due to come down below 3 percent until 2025. And what that actually means is that this cost of living crisis is going to go on for longer and for some time, and Kiwis will keep going backwards. And rising inflation is going to mean that our mortgage rates and our interest rates are going to have to go higher for longer, and, sadly, there is more pain on the way for Kiwi households. And what we saw in this Budget was that the growth forecasts have been slashed. Growth in 2024 will be less than 1 percent, and only a few months ago, growth in 2024 was going to be 2 percent, and now it\u2019s been slashed, and unemployment is going to continue to rise, and by 2025, we expect it to be just under 5 percent. Kiwis are going backwards under Labour, and the Budget shows that it\u2019s going to continue.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000128\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003ENow, to Grant Robertson, my advice to you is quite simple: you need to get out more; you need to leave the Beehive, get out of the Wellington Central beltway, and go meet some real people up and down this country, because I can tell you\u2014the Kiwis will tell you\u2014they\u2019re going backwards and you\u2019re not listening to them. And every week, I get out of this place, and I go to maybe two or three towns across this country, and the message is clear: there is a big cost of living crisis, it is broad-based, it\u2019s affecting everyone, and it\u2019s impacting everything. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000129\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003EBut there was, basically, nothing in the Budget for the hard-working young couple who came up to me on ANZAC Day at Stockade Hill in Howick the other day. They were a teacher and a nurse, and they said to me, \u201CChris, we\u2019ve got good jobs on average incomes, we\u2019re really good with our money, and we\u2019re trying really hard to save for a deposit for a house.\u201D But because of rising rents, because of the rising costs on everything, they can\u2019t get ahead, and they can\u2019t get that deposit together. And then they started to say to me, \u201CWe think there might be more opportunity for us if we move to Queensland.\u201D And I thought that is a tragedy that young people don\u2019t think that this is a country where there\u2019s opportunity for them and that they can get ahead. And they are what we call the squeezed middle, because the Government doesn\u2019t care about them. They earn too much to get formal Government help and support, but they don\u2019t earn enough to deal with the cost of living crisis, the rising mortgage payments, the rising rents, the rising food, and the rising petrol prices. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000130\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003ESo let me be really clear: the cost of living package that this Government announced in the Budget today is just a band-aid on a major wound\u2014it\u2019s a band-aid. They deny that there was, in fact, even a cost of living crisis for a long period of time, and now they\u2019ve added a temporary band-aid, which just runs out after three months. And I can tell you, what we just saw was inflation\u2019s going to be running at 3 percent right out to 2025, so Grant Robertson\u2019s big solution to the current cost of living crisis is a temporary payment to a small group of people. And I have to tell you: if you\u2019re earning $71,000 a year, you get nothing. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000131\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003EAnd that means nobody on the average wage gets a cost of living payment, because these are the people that would have benefitted from income relief through a very good, sensible, logical plan\u2014our plan, which was just say, \u201CTake the current progressive tax system, and in fairness, why don\u2019t you just lift the tax thresholds up by the amount of inflation? And an average Kiwi household would have had $1,600 a year to fight this cost of living crisis that they\u2019re facing.\u201D But Grant Robertson said no. And why did he say, no? Because the dirty little secret is that inflation, while it destroys savings, it destroys people\u2019s purchasing power, and it gets into an economy. The dirty little secret is that inflation helps Grant Robertson. Why? Because he\u2019s collected $17 billion more in tax revenue because, as prices go up, taxes go up. And Grant Robertson, as we know, is utterly, totally addicted to spending, and that means that he won\u2019t let Kiwis keep a single cent of their own money, because he thinks he can spend it better than them. And on this side of the House, we know Kiwis with cash in their pockets will spend it and save it a lot better than Grant Robertson.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000132\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003ESo, in the spirit of wanting to help Grant Robertson, I wanted him to think about\u2014he could have adopted the National Party inflation fighting plan if he wanted to deal with the cost of living crisis. And what is that? It\u2019s (1) return the Reserve Bank to a single mandate to fight inflation; (2) remove the costs that you add to business, so we don\u2019t pass through higher prices that further drive inflation\u2014get rid of the rental property taxes, get rid of the national awards, get rid of the national income insurance; (3) remove the bottlenecks that are stopping productive growth in our economy\u2014why don\u2019t we wake up Kris Faafoi and get the immigration settings in this country set right?; (4) why don\u2019t we review all the existing and new spending? It\u2019s obvious that it hasn\u2019t happened with this Budget. We have an unprecedented amount of money being spent here. And (5) prioritise tax relief, as I just said, for those workers. It wasn\u2019t ideological; it was sensible, practical, common sense just to say, \u201CTake the tax thresholds, index them to inflation, and give people a break.\u201D And what I want to say is anyone earning over $50,000 would be better off under National\u2019s proposed inflation-adjusted tax brackets compared to Labour\u2019s cost of living package.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000133\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003ELet me lay out the facts on why the books are going backwards, because it is very, very important that Kiwis register what has gone on here today because of the economic mismanagement and the lack of economic leadership from this Government. Kiwis up and down this country are tightening their belts at their kitchen tables. They are doing it. Grant Robertson should be doing exactly the same, but he\u2019s not. And what we have seen from this Government is a loss of a culture of financial discipline. We\u2019ve seen a loss of targets. They don\u2019t care about every single dollar being spent as if it\u2019s their own, and they should because it\u2019s not their money; it\u2019s taxpayers\u2019 money. But I\u2019m telling you, Grant Robertson has a problem, and his problem is that he is so deeply and utterly addicted to spending, and I want to say that the impact of his addiction on our fiscal books is incredibly clear, and when you think about it, he\u2019s damaging New Zealand\u2019s economy very strongly. This is\u2014be under no doubt\u2014a massive Budget blowout. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000134\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003EThis Government\u2014and I want to just step it through\u2014has increased Government spending since coming to power by 67 percent. You haven\u2019t seen a 67 percent improvement in outcomes or services. And, consequently, we\u2019re spending $127 billion this year in Government spending. That is unprecedented and that is $51 billion more this year than it was in 2017\u2014$51 billion more. And now, let\u2019s just look at this year, because Grant Robertson said he would spend $6 billion in the biggest Budget spend-up in the history of New Zealand, and he\u2019s actually spending far, far more than that. And I want to take the House and the country through this because it\u2019s actually really important everybody understands what\u2019s going on, because he\u2019s trying to make out that he\u2019s fiscally prudent. And the reality is he\u2019s more addicted to spending than he\u2019s ever been before. There\u2019s the $6 billion he\u2019s already announced, and then you have to remember, earlier in the week, he spent $3 billion from the Climate Emergency Response Fund, earlier in the week\u2014a lot on Labour projects and buzz words and strategies and plans and plans for plans.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000135\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003EBut not to be done there, he\u2019s gone off and spent another $2 billion of new spending from the Budget next year. And then on top of that, he\u2019s added another $400 million from the Budget after that. That\u2019s called Budget 2024. And he\u2019s so desperate to spend up that he\u2019s actually robbed $2.5 billion from the next two years of Budgets. But it\u2019s even worse than that, because the cost of living payment is actually outside that new allowance. There is a massive Budget blowout and, when everyone thinks seriously about 2023\u2014he\u2019s going to be spending a lot more next year, you just know it. Like someone who\u2019s addicted to spending, he can say all he likes about the future, but we just don\u2019t trust him, because when you\u2019re addicted to spending, you can\u2019t let it go, and we know he\u2019ll continue to do it in the coming years. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000136\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003ESo it\u2019s no surprise that the surplus is pushed out another year; it\u2019s no surprise that a $2 billion surplus has now evaporated, like a mirage, into a $2 billion deficit; and it\u2019s no surprise, when you think about the hyper-spending levels that we\u2019ve now got more Government debt\u2014it\u2019s nearly tripled; I mean, Government debt has tripled to $173 billion. And the problem with that is there\u2019s no modern monetary theorist\u2014you actually have to pay the interest on the debt, and that bill is almost $5 billion a year, and that means that that is twice what we spend on our police force. So that means that Kiwis cannot get better public services as a result of that debt, because of his out-of-control spending addiction. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000137\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003ENow, I want to say that the books are going backwards, and Kiwi households are going backwards, and the outcomes are going backwards, and the people of New Zealand see through this Government. I\u2019m telling you now, they can see it is all spin, no delivery. They can see it is all talk, no action. Lots of activity but no achievement is what\u2019s going on here. Listen, I\u2019m going to give you some advice, because the fundamental problem with this Government is that they conflate and they confuse spending announcements with actually getting things done and getting outcomes for New Zealanders, and they are two very different concepts. For you to spend money and to deliver outcomes, there\u2019s something in the middle called \u201Cimplementation, execution, delivery\u201D. Those are the things you need to do. But if you haven\u2019t run anything, you don\u2019t know how to get things done, and that\u2019s exactly the story of all of this front bench: they don\u2019t know how to convert the spending into outcomes. And you can pick any topic you want\u2014any portfolio you want\u2014and you\u2019re going to see a consistent pattern: more spending, more bureaucrats, worse outcomes.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000138\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003ELet me give you an example; let\u2019s take Chris Hipkins and education because, without doubt, that\u2019s the most damning set of stats I\u2019ve seen since I\u2019ve come into politics, and to this place, 18 months ago. He spent $5 billion more, hired 1,400 more staff\u2014staff earning $120,000 or more has tripled\u2014and yet we have less kids attending school, and we have worse academic outcomes. What we\u2019ve got from Chris Hipkins is more spending, more bureaucrats, and worse outcomes. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000139\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003ELet\u2019s look at Megan Woods and housing, because, if you remember something called KiwiBuild\u2014remember KiwiBuild?\u2014we don\u2019t talk about it anymore, but the flagship KiwiBuild; only delivering 1.3 percent of the promised 100,000 houses. But, even if we put that aside, just think about the four outcomes you actually have to deliver in housing: house prices are up $400,000; rents are up $150; there\u2019s a quadrupling\u2014a fourfold increase\u2014of people wanting a State house; and, sadly, this morning, 4,500 kids woke up in a motel in emergency accommodation. So what I\u2019ve got to say is that from Megan Woods, we\u2019ve seen more spending, more bureaucrats, and worse outcomes. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000140\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003ELet\u2019s talk about Kris Faafoi, because he\u2019s probably going to wake up now. He spent an extra $150 million. He\u2019s hired another 500 people and, on every single visa processing, the wait time has got even longer. What is that? More spending, more bureaucrats, worse outcomes. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000141\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003EI want to talk about Kelvin Davis just quickly, because we should talk about Kelvin and Corrections. He spent $139 million. He increased the back office staff of Corrections by 50 percent, and then those prisoners that desperately need alcohol and drug rehabilitation services dropped from just over 6,000 down to 1,000. More spending, more bureaucrats, worse outcomes. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000142\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003EI really want to talk about Michael Wood and transport\u2014that\u2019s the one I really want to get to, because who would have thought that an $800 million bike bridge across the Waitemat\u0101 was a killer idea? Brilliant idea. And then you go and spend $55 million on consultants looking at it, and then we\u2019re still hiring an empty office building on Auckland\u2019s waterfront to run a cancelled project for $600,000. He\u2019s tripled the communications staff, we\u2019ve had a tenfold increase in those that are paid over $100,000, and even then they still can\u2019t communicate why you need two props of zeroes for $10,000. I mean, you honestly can\u2019t make this stuff up, and I could go through every single portfolio and the story\u2019s the same: more spending, more bureaucrats, worse outcomes. They don\u2019t know how to get things done. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000143\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003EI just want you to take yourselves back two weeks ago because, two weeks ago, Andrew Little came to this House and he stood up and he realised he had a problem with wait-lists on health. And he had a cunning idea, I thought, you know, because the reality is this: there\u2019s been a fifteenfold increase in people waiting more than four months for their first specialist appointment, and that was from when they came to power before COVID in February 2020, and it\u2019s only got worse since then. Anyway, so Andrew Little came to the House and he said, \u201CLook, I can\u2019t just go and create another working group, because that\u2019s what we used to do. We spent nine years in Opposition, we had no ideas, we arrived in Government on day one and we formed 230-plus working groups.\u201D Now, we lost count of them but that\u2019s what they did. So he didn\u2019t just create a working group; he thought about it a bit more and he created what we call a \u201Ctask force\u201D\u2014that was task force. And the great thing about a task force\u2014this wasn\u2019t just a normal task force, or a bog-standard task force; no, this was a \u201Chigh-powered task force\u201D, OK. [Cheers from Opposition members] \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000144\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003EYes, and I\u2019ve been thinking about it because, as I look here and I look across the other side, what you see is people who are tired and struggling to get things done in this Government. And New Zealanders are looking at this Government, and they can see they\u2019re tired and struggling to get things done. I\u2019ve been thinking about how I can help and how we can help, and I think what this Government needs is a high-powered task force. Here\u2019s the idea for you: what I want to suggest to you is you could employ a high-powered task force called \u201Cthe National Party\u201D to actually go off and take over and run this Government and get outcomes for the New Zealand people. And I can tell you, the National Party is ready. We are able and we are willing to step up and deliver for the New Zealand people\u2014and the New Zealand people, they trust us, because they know we\u2019ll have an economic plan. They know that we can provide the economic leadership that this country so desperately needs. The bottom line is that we have to kick-start and enlarge this economic engine in this country of ours. And, on this side of the House, we know strong economic management, a strong economy, is actually how we lift prosperity for people. We know that a strong economy is actually how you lift wages; how people get ahead. It\u2019s actually how you get a world-class healthcare system. A strong economy is how you improve education, a strong economy is how you have a police force that can keep communities safe, and a strong economy is what enables us to protect our environment. A strong economy is how you get Kiwis ahead, and that is what a National Party Government will deliver. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000145\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003EYou might remember but, years ago, Grant Robertson used to talk about an economic concept called \u201Cproductivity\u201D, and he was actually on to something, but he\u2019s actually given up talking about it now, because he\u2019s got this addiction to spending that\u2019s running his life and taking control of everything. And the biggest thing that we can do is we can lift incomes for Kiwis by improving the productivity of our economy and what that means, when you look at it, is you\u2019ve got to get into the fundamental drivers of an economic plan, and that is about improving education, it\u2019s about a world-class infrastructure system that connects us to each other and to the world. It\u2019s about technology and capital and innovation. It\u2019s about making sure we have a pro-business environment, because we know the Government doesn\u2019t do things and get things done; it\u2019s businesses, the lifeblood of New Zealand, that get things done in this country. And we need connections with the world in order to sell our best products and services to the 7.8 billion people sitting in 195 other countries. That\u2019s how we back Kiwis to succeed, that\u2019s how we get higher wages and incomes, and that\u2019s how we give people more choice and freedom. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000146\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ea31fdd3-90e9-47d7-92a4-20b6a3109eef\u0022\u003EIn closing, let me say that New Zealanders deserve far more than this Government has delivered. Labour has taken so much in taxes, they\u2019ve added so much debt, and they\u2019ve spent so much money, but yet they have delivered so little in public services and outcomes. And this is indeed, sadly, the \u201Cbackwards Budget\u201D. The books are going backwards, Kiwi households are going backwards, the outcomes are going backwards, and, sadly, the country\u2019s going backwards and we\u2019re heading in the wrong direction. New Zealanders deserve a Government focused on outcomes and getting things done, that listens and works with communities and businesses to do so, and we\u2019re going to do that in the National Party Government that we lead. We do live in the best country on planet Earth. I\u2019m optimistic about New Zealand. I believe we can do so much better than this. I want us to be confident. I want us to be aspirational. I want us to be ambitious. I want us realising our maximum potential\u2014economically, socially, and environmentally. And that\u2019s what New Zealanders can expect, and that\u2019s what they\u2019ll get with a National Government in 2023. Thank you.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022 data-id=\u00220f167ae2153a46168b6046e51db2fdaa\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000147\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220f167ae2153a46168b6046e51db2fdaa\u0022\u003ESPEAKER\u003C/span\u003E: If the members would like the amendment put, they will sit down. The question is that the amendment be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022 data-id=\u0022441e696f918c44308b7fc900377c48eb\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000148\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022441e696f918c44308b7fc900377c48eb\u0022\u003ERt Hon JACINDA ARDERN (Prime Minister) (remote):\u003C/span\u003E It is a pleasure to speak to this Budget, the fifth we\u2019ve had the privilege of delivering, and in no less extraordinary circumstances. The business and cycle of Government is, in some ways, no different to life itself: navigating difficult times while also making necessary progress, dealing with the unexpected, and always\u2014always\u2014planning for the future; challenges not least of which include a one-in-100-year health crisis, followed by the biggest economic shocks since the Great Depression. And just as the world was recovering, it\u2019s been plunged into the uncertainty of war.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000149\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EGiving people as much certainty and security as possible in uncertain and insecure times is hard, but it\u2019s what we must pursue, and that is what we have set out to do in Budget 2022: deal with the immediacy of the economic and health challenges Kiwis are facing, while also looking to the challenges of tomorrow, and seeking to buffer our people from both. It\u2019s an approach that, as always, is focused on people.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000150\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EToday, we deliver our fourth wellbeing Budget. Now, my virtual presence in the debating chamber is, obviously, not my preference on such a significant day. It means, for instance, that I\u2019m not able to pay tribute to the Minister of Finance, Deputy Prime Minister Grant Robertson, in person. New Zealand has navigated some incredibly difficult times in recent years. It was only two years ago, for instance, that the Minister of Finance created the COVID Response and Recovery Fund, and delivered a jobs Budget that included investments in business support, infrastructure, and trades training. It protected half of all workers in New Zealand. It delivered a record amount of new apprentices. It enabled us, in spite of a pandemic, to deliver our nine-thousandth additional public housing place, an economy bigger than even before COVID, and the lowest unemployment rate on record.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000151\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003ENow, these results weren\u2019t a given. When COVID first emerged, we faced sobering forecasts. Treasury predicted 10 percent of people would be unemployed. That would have meant hundreds of thousands of people looking for work, and the financial scarring that would bring. Now, today\u2019s statistics speak for themselves, numbers that it is clear the Leader of the Opposition has not read. Our growth rates are higher than pre-COVID, and, in this Budget, forecast to reach 4.2 percent over the next financial year. Now, compare that to the aftermath of the global financial crisis (GFC), where rates were less than half that, at around 2 percent. Debt sits at 16.9 percent, and it\u2019s forecast to reach 15 percent in 2026. We\u2019ve had a bigger economic knock from the pandemic but managed with a smaller debt impact than the GFC. We will return to surplus in the 2024-25 financial year, a total of five years after COVID hit; compare that to the GFC, where it took six.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000152\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EFinally, unemployment sits at 3.2 percent and is forecast to reach as low as 3 percent. M\u0101ori unemployment sits at 6.3 percent and Pacific at 6.7 percent. And while we have work to do, compare those figures to the GFC, where for our M\u0101ori and Pacific families, it was more than double those rates. Now, that is not to say that times aren\u2019t tough for many New Zealanders right now\u2014they are, and not just here but around the world\u2014but in the midst of a crisis, in the midst of such tough economic times globally, we are well placed to recover, with one of the best economies in the world. And while there are many reasons for that, Grant Robertson is one of them, and for that, I thank him.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000153\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EIt was Labour who got us through COVID, and it is a Labour Government who will get us through the next set of challenges as well, and that is what this Budget is all about: addressing the challenges of today but also of tomorrow. Now, when it comes to today, there is no more universal challenge right now than the cost of living: globally, we know that we\u2019re not alone, as inflation pushes up prices around the world. The average rate of inflation in the EU is 7.7 percent. It\u2019s high in Canada, in Germany. Just yesterday, the UK hit 9 percent; in the Netherlands, it\u2019s nearly 10 percent. And while there are many reasons for it, one thing that forecasters are predicting is that it will improve in the latter half of 2022. But that doesn\u2019t help Kiwis now, and while we can\u2019t control global inflation forces, our job is to take the hard edges off it for Kiwis, and that is why this Budget includes a cost of living package to cushion the impact for middle and low income families. Now, we\u2019ve had to be incredibly careful in developing this package, to make sure it reached those who needed it most. Anything too broad could make inflation worse, and that\u2019s exactly what the National Party\u2019s tax cuts to the wealthiest would do. They would feed inflation while giving the biggest benefit to those who need it the least.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000154\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EWe also needed to make sure that our response was sustainable, and that it eased pressure on families who are also keeping up the investment in their healthcare system and in their education system. After all, no one would thank us for short-term relief that came at the expense of long-term services that Kiwis rely on. And we also wanted to make sure that what we did was timely. The result is the cost of living package we\u2019ve delivered today. First, it continues the reduction of the cost of fuel at the pump by 25c a litre through till August. The war in Ukraine is continuing to make prices volatile, and this is some certainty that we can provide in the meantime for everyone.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000155\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003ESecondly, in August, a short-term and targeted cost of living payment kicks in, helping to transition from the excise reduction. It will be paid to middle and low income earners over the age of 18\u2014everyone who earns up to $70,000 who isn\u2019t already getting the winter energy payment. It means those who are doing the vital but unpaid work of caring, such as stay-at-home parents, will be eligible for the payment, which will be paid monthly for three months and equates to an extra $27 a week or $350. In total, it will ease the pressure for more than 2 million people, and means that 81 percent of New Zealanders aged 18 and over will either be receiving the winter energy payment or the temporary cost of living payment this year.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000156\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003ENow, no temporary fast relief can be perfect, but it can make a difference. Thirdly, half-price fares for public transport will remain through August, and then a new change kicks in: all community services card holders will continue to be able to travel for half-price, permanently. This change will not just last through the current inflation spike but for good, because we believe subsidised public transport makes a difference for people and the planet.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000157\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EFourthly, as part of our urgent Budget night legislation, we begin the process of addressing the root causes of high prices in our grocery sector. We have a lack of competition in this country, and it is impacting food prices and it\u2019s impacting families. While there is much to do following the Commerce Commission report, we are starting today with unravelling some of the tactics to block competitors\u2014that, I can assure you, is just the start.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000158\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EFinally, today, we right a longstanding wrong that hits those who can least afford it when the cost of living spikes. For those on Government support, we are finally dealing with the issue of child support pass-on. Many people may not know this, but in New Zealand, those who are on Government support do not receive the child support payments made by an ex-partner, spouse, or parent. Whatever payments are made are retained by the State. That is unfair on a child and also lessens the incentive for a parent to pay. Budget 2022 changes this. It means our kids\u2014those with a parent often on the lowest of incomes\u2014will get extra support not from the Government but from their parent, and it will lift up to an extra 14,000 children out of poverty.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000159\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EWhile in this Budget, the forecasts show that cost of living pressures are set to subside, there is no question that while they are here, it hurts. We\u2019ve done what is possible to blunt the hard edges while ensuring we don\u2019t pour more fuel on the inflation fire. It\u2019s a position other countries we compare ourselves to are taking as well, and that\u2019s one of the reasons I would hope the Opposition would support the package we have presented today. In fact, I call on them to do so, because in the Leader of the Opposition\u2019s speech, I hear not one other idea\u2014not one. Now, I know that they\u2019re opposed to the 1 April income changes we made to increase the family tax credit. They\u2019ve spoken openly against subsidies for things like public transport, in the same way they have opposed just about any climate-related policy, even ones that ease the cost of living. They have a policy of giving $2 a week to those we have proposed giving closer to $30 a week. But if they are genuinely concerned about the cost of living and not just politics, surely they will support this package because it does more for people here and now, and it does not leave the tin empty when there are so many other challenges we must address. If it is that they would rather stick with their policy of tax cuts for the top-income earners, then we know for sure that they don\u2019t support the substantial health investments in this Budget\u2014because you cannot do both.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000160\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EThat brings me to our health system. New Zealanders know how excellent it can be. I frequently receive letters from New Zealanders so grateful for the care they\u2019ve received, but it is often supplemented with this: please do more to improve the system our health professionals work in.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000161\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EToday, Budget 2022 provides the largest ever investment in our health system: $11.1 billion more for nurses, more medicines, and to end the postcode lottery to ensure that Health New Zealand and the M\u0101ori Health Authority are able to make the changes needed to deliver better health services to all New Zealanders, whether they live in Tair\u0101whiti, Buller, Wh\u0101ngarei, Masterton, or Dunedin. And, yes, we have given health certainty about their future budgets to help them plan\u2014something I see the Leader of the Opposition has taken issue with, once again showing he\u2019s more of a short-haul than a long-haul kind of guy; or, perhaps more accurately, if you live in the regions, no haul.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000162\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EIn this Budget, we\u2019re also making the largest ever single contribution to Pharmac\u2019s medicines budget, bringing total funding to $1.2 billion, up 43 percent since we took office. I\u2019m going to say that again: Pharmac funding is up 43 percent since we took office.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000163\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EOur lifesaving ambulance services: supported to recruit an extra 248 more paramedics and front-line staff, and 48 more ambulances as well as chopper replacements.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000164\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EWe know that COVID has left scars on the mental health of many New Zealanders. So $202 million has been allocated to further improve access to mental health and addiction services, particularly for those with acute needs. And we are continuing to invest in two programmes that support young people\u2019s mental health: Mana Ake, which provides mental wellbeing support for primary and intermediate school-aged students; and Piki, a pilot scheme which provides integrated mental health and addiction support for young people. And I acknowledge the Green Party\u2019s support for these programmes.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000165\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EBut I want to make mention of one of the smaller initiatives in the health budget: $7 million for more portable retinal cameras to check the eyes of premature babies to address one of the leading causes of blindness in children.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000166\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EA third of Budget 2022 investments go to health. In the wake of a health crisis, we know how important our health system and the health of our people is. This investment speaks clearly of the priorities of the Government: the importance of the wellbeing of our people, and the vital services they deserve. We are nothing without our health. And there can be no greater response to the COVID pandemic than ensuring we have better funded and stronger health services\u2014and that is what this Budget delivers.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000167\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EWe know there are a myriad of other challenges we face. While in Opposition, I remember once speaking to a social worker, who had been in the job for 30 years, about what we could do as a nation to change the sometimes intergenerational issues children face. Without hesitation, her response was one word: education. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000168\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003ENow, no one wants to oversimplify what past Children\u2019s Commissioner Russell Wills called wicked problems. And while there are many contributing factors to complex societal issues, we need to look at both prevention and the cure. Yes, we must support the police to bring a stop to violent behaviour and for there to be consequences for those who victimise others, but we must also support our young people on to alternate paths. That\u2019s why we\u2019ve put not just half a billion dollars into law and order initiatives to deliver the largest police force ever, we\u2019re also a Government committed to delivering quality education, training, and skills development so that all New Zealanders get the opportunities they need and deserve to live lives of value.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000169\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EBudget 2022 invests $2 billion in operating funding, and $855 million in capital for the education system. The new Equity Index relegates the decile system to the past. We take the largest step forward yet towards pay parity for our early learning teachers. We\u2019re supporting M\u0101ori-medium education and kaupapa M\u0101ori sector. And beyond this, skills and training is a further area where we invested throughout the COVID pandemic to ensure that we retained and built a workforce for tomorrow as our economic recovery took off. We have the lowest unemployment rate on record, and so we need to reach into every corner to grow our domestic workforce. Successful programmes, like Mana in Mahi, which provide significant support to people furthest from the labour market to upskill and enter employment, receive continued investment in this Budget. We\u2019ve also extended the Apprenticeship Boost.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000170\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EJust last week, I received this letter in response to that pre-Budget announcement. Perhaps the Opposition member for finance for the National Party received it as well. \u201CThank you for extending the trades apprenticeship funding. We are so happy at the stability and certainty this will give to my children\u2019s futures as they progress through the recently started mechanics and auto-electrical programmes. We all believed this programme would be cancelled from this August, and so we\u2019re so excited about what this would mean. I come from an intergenerational depravity, which is extremely difficult and severely restricts our lives daily. Witnessing my kids begin on an actual qualification pathway has been a life-changing and a very positive experience for me.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000171\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EMore than 190,000 Kiwis have been supported through our investment in trades training since the start of COVID, with tens of thousands more supported today\u2014all necessary as we continue, for instance, the considerable agenda we have on housing, which continues in this Budget.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000172\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003ENow, that brings me to our partnership with business\u2014so what I learnt the Opposition considers to be \u201Ccorporate welfare\u201D. Small and medium businesses contribute 30 percent to our GDP. Many are poised to grow and have the potential to accelerate our economic growth, which is why Budget 2022 invests in a new Business Growth Fund\u2014$100 million over the coming year. But Crown investment is a minority shareholder, alongside New Zealand\u2019s major banks, ensuring easier access to upfront finance and the quicker production of more jobs. It works overseas\u2014in the UK, Ireland, Canada, Australia\u2014and we\u2019ve been told it fills a much-needed gap here.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000173\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EFinally, we said that this Budget was focused on the challenges of tomorrow. No challenge is more present today and in the future than that of climate change. Where many choose to dwell on what can\u2019t be done, we choose to move on what is not only possible but also the greatest opportunity in our history to move to a high-wage, low-emission economy that provides security in good times and bad.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000174\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EWe\u2019re delivering in an emissions reduction plan that puts us on track to meet our carbon budget. I acknowledge the Minister for Climate Response, James Shaw, for the work that he\u2019s done alongside us in Government to release that plan this week\u2014which includes the biggest investment in climate action ever, paid for through recycling the emissions trading scheme payments on pollution. This $2.9 billion investment is the most comprehensive plan New Zealand has ever had on the issue of climate change. It\u2019s because we cannot responsibly postpone a transition we need to start making today\u2014one where every sector of society and the economy is considered part of the solution, where we have warmer, drier, more energy-efficient homes, more native climate sinks, energy production that doesn\u2019t require fossil fuels, an upskilled workforce, and the most sustainable food production in the world.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000175\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aa2209f1-1889-4c24-b51d-cb2aedc7aa93\u0022\u003EWhen our future generations look back, I want them to see that we tackled climate change in the way we tackle all other crises: with people and the security of their future at the centre of our decision making, because, ultimately, for Governments, as with life, we will always face challenges\u2014it\u2019s not just how we manage a country through a crisis; it\u2019s how you manage the country out of one as well. New Zealand navigated COVID, for two years, better than most because we put people first. That is an approach that Budget 2022 builds upon, tackling the issues we face today while also seizing the opportunities for a secure future for all New Zealanders, because we must do both and, with this Budget, we are.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022 data-id=\u00222774880d90384b879c7a0f47bb2f9279\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000176\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00222774880d90384b879c7a0f47bb2f9279\u0022\u003EHon JAMES SHAW (Co-Leader\u2014Green):\u003C/span\u003E E te M\u0101ngai o te Whare, t\u0113n\u0101 koe. Well, the Leader of the Opposition delivered a speech that wasn\u2019t so much 2022 as 1992. They reckon that they can help out New Zealand\u2019s lowest-income families by giving our highest-income earners a tax break. Ruth Richardson called and she wants her speech notes back. The National Party might be dressed up in a nice new sheepskin kimono, but you open it up and it\u2019s the same old wolf underneath.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000177\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EWhen they finally get up to speak, I have to say that the ACT Party, no doubt, will continue their call for a robust and sober and rational debate about governance in this country, right after they yesterday issued a press release that called for a senior public servant to be beheaded. Maximilien Robespierre called and he wants back his guillotine. It is becoming clearer by the day that the reason Mr Seymour worked so hard in the last term to dispatch Winston Peters was so that this term he could become Winston Peters. So I guess there\u2019s only room in this town for one alt-right populist.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000178\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003ECan you imagine what this warmed-over Richardson-Robespierre, all-you-can-eat duo would do to this country if they actually got back into power? It has taken at least 4\u00BD years to even start to turn around the legacy left over from the last time they were in Government. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000179\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EI have to say we do have a long journey in front of us, but Aotearoa is at last heading towards a future that is fairer, cleaner, and more prosperous, and all within the limits of our fragile planet. That is the vision that the Green Party was founded on some 30 years ago, a vision of thriving communities where everybody has the means to live in a warm, dry home; food that is healthy for us and healthy for the land that it is grown on; vibrant, flourishing ecosystems that underpin the kind of healthy environment that we all rely on; clean and healthy and swimmable rivers; new jobs and prosperity for our communities; and a sustainable, low-carbon economy. With a strong Green voice in Government today, more people up and down Aotearoa New Zealand can now make ends meet. Our communities are safer, they are cleaner, they are greener, and we are healing nature. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000180\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EThe Green Party is committed to progress, even when we have to fight for it inch by inch, and so we will be voting in support of Budget 2022. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000181\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EIn recent years, as we have battled a pandemic, there has been more than one Budget that has attracted the moniker \u201Chistoric\u201D, but I do want to say that despite that fact, Budget 2022 is a Budget of firsts. It is the first Budget ever to put climate action at its heart. It is the first Budget ever to fund a national family violence and sexual violence strategy. There is a lot to celebrate in this Budget. I also want to acknowledge that there is still so much more that needs doing for people and for planet.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000182\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EThis Budget continues to deliver on the foundations that Green Party Ministers laid last term, and I want to acknowledge again the work that they did then. It does also make some very important progress to support some of the Green Party campaign priorities of the last election campaign. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000183\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EBut if the Green Party had, say, 65 members of Parliament and we were writing this Budget ourselves, a number of things would happen. Mike Hosking\u2019s head would explode. The country would be a lot better off, and not just because Mike Hosking\u2019s head had exploded but also because this Budget would look different. A Green Budget would have done more to help the thousands of families who are struggling to make ends meet and towards that most basic of human rights\u2014a roof over our heads. A Green Budget would have done more to halt the degradation of our wild spaces and the harrowing decline of our taonga species. The Budget report, I have to say, shows that there has been no significant improvement in child poverty statistics. A Green Budget would have done more to eliminate the scourge of child poverty in Aotearoa New Zealand.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000184\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EI remember sitting in this House five years ago to watch Steven Joyce deliver the 2017 Budget. In a 40-minute speech, Steven Joyce did not mention climate change once\u2014not once\u2014but things have changed. Our Government over the last 4\u00BD years has seen more action than in the previous three decades combined. We have passed the zero carbon Act, enshrining the 1.5 degrees Celsius goal in primary legislation. We\u2019ve reformed the emissions trading scheme to ensure that polluters pay the real price of the emissions that they put into the atmosphere and we\u2019ve put the proceeds from that reform towards establishing the $4.5 billion Climate Emergency Response Fund, and we have published a comprehensive plan to cut emissions right across the economy. This Budget is a landmark in our journey to continue that work and to build a clean and green and climate-friendly future.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000185\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EThrough this Budget we will decarbonise industry, with $678 million of funding for smaller businesses, commercial heating decarbonisation, and energy-efficient equipment. We will establish native forests at scale to develop long-term carbon sinks and to improve biodiversity, with $65 million. We\u2019re going to reduce and divert organic waste away from landfill and reduce emissions from waste overall, with $103 million. We\u2019re going to give people more transport options and achieve significant mode shift to active transport and to public transport, with $375 million of funding. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000186\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EAll of this investment makes this the first real climate Budget, but it must not be the last. This climate Budget is a huge step, and I do want to take a moment to celebrate that, but tomorrow it is back to the work of turning around decades of inaction on climate.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000187\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EAnother Minister, of course, is also starting to turn around an immensely challenging problem. The Minister I\u2019m talking about, of course, is my co-leader, the Hon Marama Davidson. Marama continues to work tirelessly on the pernicious problem of family violence and sexual violence, a problem that requires bringing together many different Government departments and community organisations. Last year, Marama delivered Aotearoa New Zealand\u2019s first ever national strategy and action plan to eliminate family violence and sexual violence: Te Aorerekura. That work built on the foundations laid by Jan Logie in our first term in Government, as well as Marama\u2019s own deep experience working in and alongside vulnerable communities and tangata whenua.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000188\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003ENow, I\u2019ve said it before and I\u2019ll say it again, but Te Aorerekura is nothing short of a landmark in New Zealand\u2019s social history. This Government inherited an underfunded, largely ignored sector broken up into many groups that didn\u2019t have a clear understanding of their roles let alone a national strategy. Thanks to Marama, that is now in place, and Budget 2022 has provided the funding to deliver on it: $114.5 million over four years to prevent and respond to family violence and sexual violence across Aotearoa. With that funding, we will address the drivers of harm and will enhance protective factors and shift community and social norms that condone violence with $38 million, we\u2019ll strengthen the existing integrated community-led response approach with another $38 million, we\u2019ll develop workforce and organisational capability frameworks for the sexual violence centre and fund the implementation of new family violence frameworks and tools with $7 million, and so much more.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000189\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EI cannot overstate the importance of this work. Everybody has the right to live in a peaceful home, to be respected, and to be safe from the mistreatment and violence that has been a shame on this country\u2019s history. We must have a future where children and families and wh\u0101nau can thrive, knowing that their homes are safe, and the initiatives in this Budget are crucial to getting there.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000190\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EOur cooperation agreement with the Labour Party has delivered significant investments in people and in planet in today\u2019s Budget. Last term, we helped to turn around decades of underfunding for conservation, which had seen the health of our forests, the rivers, and the birds in decline. There is a long way to go yet, but we do welcome today\u2019s commitments to fund new work to protect our forests from the damage that\u2019s caused by wild deer and goats; renewed investments in Tiakina Ng\u0101 Manu to protect our taonga species; and investment in huts and tracks so that more people can have the opportunity to spend time and enjoy nature by walking or tramping or hunting or fishing or mountain biking. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000191\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EDepartment of Conservation (DOC) rangers and other staff are on the front line of protecting nature, and we do welcome the Government\u2019s commitment to increase their incomes and to maintain staff housing in really remote areas whilst also upgrading the DOC vehicle fleet to low-emission and electric vehicles.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000192\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EOn Budget day, I do think it\u2019s important to highlight some of the relatively modest amounts of investment that actually will make an immeasurably large difference to people\u2019s lives but that tend to get overlooked with all of the big headline initiatives that get announced. Budget 2022 delivers funding for eating disorder support services that will improve the lives of hundreds of young people and their families. I would like to acknowledge the Hon Dr Ayesha Verrall for her collaborative work with the Green Party on this often unseen but deeply felt crisis in our communities. We welcome the continuation of Piki, the youth mental health programme that was begun in the last term, and also the expansion of Mana Ake to five more areas of Aotearoa.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000193\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EFor our rangatahi and their wh\u0101nau, we welcome the expansion of child and youth mental health and addiction services for an additional 1,300 people. The Opposition makes a lot of noise about being tough on drugs, but it is precisely that hollow rhetoric that has seen drug harm explode over the past 40 years. The Green Party has always fought for evidence and compassion in drug policy, and the approaches and the investments that genuinely build resilience and healing. These are important initiatives in the cooperation agreement between Labour and the Greens.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000194\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EThe Budget also delivers on areas that the Greens have long campaigned for which are not covered by our cooperation agreement with Labour. For example, we welcome the affordable housing fund, that will provide support for not-for-profit rental providers and we do applaud the huge commitment to give Pharmac the funding that it needs to make more lifesaving medicines available to more New Zealanders who need them. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000195\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EI just want to take a moment to acknowledge the people who have been campaigning for these investments for many, many years. That is a strength of the Green movement: tireless work to put a political issue on the map, to raise public support, and to put forward positions and solutions that Governments adopt. So we are very happy for any Government to copy our homework.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000196\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EFor decades, we have known that the health sector has been underfunded. So today\u2019s announcement is obviously a very good start at turning this around, and, together with the pae ora reforms, that will help to ensure that everyone gets the healthcare that they need, regardless of where they live. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000197\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EI particularly want to welcome the funding announced for the M\u0101ori Health Authority, because the Green Party campaigned at the last election for an independent M\u0101ori health authority, and we\u2019re delighted that has not only been set up in legislation but funded in today\u2019s Budget. We do need to see this, though, paired with a genuine commitment to partnership, to M\u0101ori-led approaches to determining how primary healthcare is funded and provided to M\u0101ori communities\u2014particularly those in rural areas, who have missed out for so long. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000198\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EWe know that good health outcomes will only be possible when we fully address the social drivers of physical and mental health problems, including poverty and inadequate housing. So we will continue to work towards a future where everybody is supported in their wellbeing at all stages of life\u2014that is health policy. We will continue to push for better wages for our essential healthcare workers\u2014that is health policy. We will continue to push the Government to go further than today\u2019s announcement and to commit funding for pay equity across the whole sector, including for the lowest-paid staff who do essential work in related areas, like aged care\u2014that is health policy.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000199\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EMany families around Aotearoa on low incomes are struggling to manage rising costs and other pressures. Budget 2022 contains an array of measures to ease those difficulties. I am very pleased to see more examples of making people\u2019s lives better and, at the same time, reducing emissions and taking care of our planet\u2014so, for example, we particularly welcome the $73 million to expand and improve Warmer Kiwi Homes. This will mean more families will have access to warm and dry and safe homes, at the same time making those homes more energy-efficient and climate-friendly. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000200\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EWe welcome the commitment to half-price bus and train fares for low-income households. This is work that was begun when there was a Green associate transport Minister. We welcome the extension to half-price public transport\u2014but also wouldn\u2019t it be better to make public transport free for everyone, for all time, for good? The funding that\u2019s announced today will help something like a million people to ditch the car and to switch to cheaper public transport, and, at the same time, that will help to cut emissions in such a critical sector.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000201\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EWe have an abundance of renewable energy sources. We do welcome funding that will help to enable low-income communities to access cleaner and more affordable and more secure energy supply. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000202\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003ESo this is a welcome step forward, and, at the same time, the Green Party is firmly of the view that the next way to lifting living standards is to lift incomes and to make sure that families actually have enough money in the first place. That means fair wages and higher benefits. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000203\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EThere is a quiet revolution in this Budget in the form of a new fiscal strategy. For too long, there has been huge political pressure on an arbitrary debt-to-GDP ratio, but we carried the debt in other ways. We have a housing deficit, we have a transport deficit, we have a deficit of three waters infrastructure, we have an environmental deficit, and we have a social deficit. The new approach that\u2019s been announced by the Minister of Finance will now mean that arbitrary debt restrictions will not stop good fiscal infrastructure projects that stack up on all other metrics, such as cutting climate pollution. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000204\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003ENow, we have never shied away from the need for a fundamental shift in our economic thinking\u2014a shift that means putting a focus on the wellbeing of our people and the limits of our planet above the pockets of property speculators. The way that we need to fund our public services in this new fiscal strategy is by broadening our tax base, and it just so happens that there is a massive gap in our tax system where those who earn a salary pay their fair share of tax, but those that own vast amounts of wealth do not. A wealth tax would provide the revenue necessary to increase important, necessary operating expenditure, it would plug a hole in our tax system, and it would mean that the wealthiest New Zealanders would pay their fair share of tax. It would also make David Seymour\u2019s head explode, and that\u2019s an added bonus.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000205\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EThe Green Party has always had a clear, progressive voice in this House, a voice that says that we should tax wealth fairly, don\u2019t just be happy to sit by while many of the wealthiest have a lower tax rate than middle and low income earners. It is a voice that says that the environment and the economy are intertwined, and only with a healthy planet will we have healthy communities. So this is a Budget of firsts. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000206\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227c215736-b512-41de-8f0c-6c5543fcfce7\u0022\u003EBut to solve climate change and to address inequality and also our biodiversity crisis, we need the next Budget to break new ground, and the one after that and the one after that. The status quo will not work. We can do better\u2014we can do so much better. So we do look forward to a series of bold, progressive Budgets. We look forward to a future where everybody lives in dignity, comfortably within the limits of our planet. N\u014D reira, t\u0113n\u0101 koutou, t\u0113n\u0101 koutou, t\u0113n\u0101 t\u0101tou katoa. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022 data-id=\u0022bb1bc87cfd924999894d3c7f5b48ea48\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000207\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022bb1bc87cfd924999894d3c7f5b48ea48\u0022\u003EDAVID SEYMOUR (Leader\u2014ACT):\u003C/span\u003E Thank you very much, Mr Speaker. I heard Grant Robertson and I thought that Grant Robertson had one shot, one opportunity, to make sure this Budget did not go down in history as the brain drain Budget. What he had to do was give relief from the cost of living crisis, light at the end of the tunnel, and hope to those people who get their money from doing something called working. Unfortunately, he did no such thing. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000208\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EWhat Grant Robertson basically said was \u201CI will continue to satisfy my insatiable appetite for Government spending, I\u2019m going to put on welfare, kind of, for three months at the end of the year, and I\u2019m going to extend your cheap train fares for another couple of months.\u201D That\u2019s it\u2014that\u2019s it. There\u2019s no hope or light at the end of the tunnel for New Zealanders with get up and go, more and more of whom, you can understand, after today\u2019s effort will be thinking \u201CMaybe it\u2019s time I got up and left.\u201D, because this Government and, increasingly\u2014while this Government\u2019s in control\u2014this country does not give hope and opportunity or light at the end of the tunnel in the cost of living crisis to people getting squeezed from every angle.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000209\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EWhat\u2019s interesting is the Minister of Finance, Grant Robertson, called this securing the future. Do you know what\u2019s interesting? It\u2019s that that\u2019s not even original. In fact, he copied it from the Saskatchewan Party\u2019s 2007 election campaign, and the difference is that the Sask. Party got elected that year. They cut taxes, and they stopped the province of Saskatchewan\u2019s brain drain. They saw the stubble-jumper province grow in population for the first time in decades. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000210\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EWell, there\u2019s no such relief in this Budget. This Budget won\u2019t be remembered for securing the future, unless it\u2019s Australia\u2019s future. This Budget will be known as the brain drain Budget, because all those people who rely on working see no hope in it; in fact, there\u2019s no hope in this Budget from Labour unless you act like a no-hoper. This is the culture of victimhood that the Labour Party imbues through our whole country. That is why people will leave. That is why we need a Government and a Budget that are prepared to make things better and give people hope that it\u2019s worth staying in this country.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000211\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EWe\u2019ve heard a lot about a cost of living crisis and the squeezed middle, but what does that actually mean? Well, it could mean a family with one earner who is at the average wage for a full-time worker\u2014about $70,000\u2014and another earner who works part-time and earns $30,000. Together, that couple earns $100,000 and they pay $18,290 in income tax, and that\u2019s not including GST. If they\u2019re renting and they pay the median rent, then their rent\u2019s gone up $70 a week, or $3,640 a year, in just the last two years. If they own a home, and they have, say, a half-million-dollar mortgage\u2014which would be nice, my fellow Aucklanders would say\u2014then they\u2019ll be paying $12,500 more in mortgage interest than they were two years ago. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000212\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EIf they used to spend $300 a week on the weekly shop, then it\u2019s gone up $20 in the last year. It\u2019s hard to believe, but that\u2019s 6.4 percent inflation in food costs in the last year. It\u2019s gone up 40 bucks a week on the weekly shop just in the last four years. If they are really bad people\u2014meaning that they use a car to get around\u2014then they have found that the cost of filling up has gone up by around $1,700 a year if they each have a car and put in 50 litres a fortnight.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000213\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EThose people are paying more tax than ever, because remember the GST? Well, if inflation is a thief in their wallet, then the Government is a silent partner, because every time the prices go up because of inflation, \u201CGreedy, Grabby Grant\u201D is there for an extra 15 percent, which he calls GST, and the squeezed middle call the rising cost of everything, squeezing them from every angle. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000214\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EWhat hope has Labour given them in this Budget? Has Labour given them a sign, or even just a little flicker of light at the end of that cost of living crisis tunnel? No, they have not. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000215\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EIn fact, I was very interested to read some of the numbers in the back of the big Budget documents, and what I found in those numbers was gravely concerning, because, you see, Treasury makes a forecast for the future of this country\u2019s economic and fiscal outlook, and they make that forecast every six months\u2014someone called Ruth was responsible for that happening\u2014and the thing is that the forecasts we have for New Zealand\u2019s future today released at 2 p.m. this afternoon are vastly worse than the same forecasts Treasury made in December. In December, they said that inflation was going to peak. They said that by next year, inflation will only be 3.1 percent. Well, they\u2019re now saying that next year\u2019s inflation is going to be 5.2 percent. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000216\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003ESo if people thought that there\u2019s a light at the end of the tunnel for this cost of living crisis, well, when \u201CGrabby Grant\u201D satisfies his insatiable attitude for spending taxpayers\u2019 money, what happens is that it drives inflation, and that\u2019s why even Treasury is forecasting that inflation is going to increase more than we have ever forecast. It\u2019s going to be 5.2 percent next year. We\u2019re not even halfway through this cost of living crisis.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000217\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EThe funny thing is that when I said this was going to be a brain drain Budget, even I didn\u2019t guess that Treasury would update its forecast to show that there\u2019ll be less people in New Zealand. Treasury is now assuming that 15,000 more people are going to leave than they had assumed in December. Even Treasury is predicting a brain drain, and why wouldn\u2019t they? Well, because their forecast for our net debt just as a Government is now $15 billion higher than it was only six months ago. This is just the change of forecast in six months. It\u2019s now going to peak at $15 billion, and that\u2019s because we\u2019re spending more. The thing is they\u2019re now forecasting that we\u2019re going to be in deficit until 2025 instead of 2024. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000218\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EOne of the effects of that borrowing is that interest rates are also rising, and we\u2019re going to spend an extra $1.7 billion a year on interest on Government debt than they thought we would in December. Even in just six months of forecasting, Treasury now thinks our outlooks are worse. We\u2019re going to have more debt, more interest on the debt, more inflation, and a longer cost of living crisis. So if people were looking for hope from this Government, not only has the Government failed to take the bull by the horns and make things better; they have also witnessed this situation deteriorating because of their spending.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000219\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EThis Budget could have been so much better. In fact, the ACT Party is one of two parties in this Parliament that has produced a fully costed Budget for New Zealand this year. There\u2019s the Labour Party, with Grant Robertson, and there\u2019s the ACT Party, and I would say to you that this one would give a much better future for New Zealand, where people want to stay, because the risk is we become a place that\u2019s nice to visit but not so nice to live, especially if you need lifesaving drugs\u2014and we\u2019ll get to that, too.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000220\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EFirst and foremost, this Budget needed to kill inflation dead before we get inflation expectations built in and we go on a wage-price spiral leading to stagflation. That is now, unfortunately, a very real prospect. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000221\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EIt\u2019s not often I agree with Adrian Orr, but Adrian Orr, the Reserve Bank Governor, says that monetary policy needs friends, and what does he mean by that? What Adrian Orr means by that is that if Grant Robertson doesn\u2019t stop spending in the way he has, then someone else is going to have to reel in expenditure for the country to stop inflation, and do you know who that will be? It\u2019ll be Adrian Orr, and do you know what tool he\u2019s got? He\u2019s got the official cash rate, and do you know what that does? It puts up your mortgage so that people have less money to spend, and he\u2019ll stop inflation that way. So either Grant brings in Government spending or Adrian brings in household spending, and it\u2019s the second one because Grant can\u2019t stop spending, so it\u2019s going to hurt.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000222\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003ESome people might think, \u201CWell, it\u2019s a lucky thing I rent. I\u2019m not going to be faced with rising mortgage rates.\u201D Well, I\u2019m sorry to say that you just have to ask yourself who pays a landlord\u2019s mortgage if not the tenant? This spending will lead to higher interest rates, higher mortgage rates, and higher rents. It is inflationary for everybody. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000223\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EThe second thing that it needed to do was give relief to all those families we\u2019ve talked about that are battling away and wondering why they bother. There needs to be light at the end of that tunnel so that if you strive and do the right thing for yourself and your family, you\u2019re not going to be fodder for Labour fuelling its hand-out culture. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000224\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EThe third thing it needed to do was secure the future\u2014that was in my speech before Grant took it up\u2014in order that we can have sustainable fiscal settings. That\u2019s why we need to be honest with ourselves about the age of superannuation: 65-year-olds are not decrepit, and we can afford to save $16 billion of taxpayer money by gradually, respectfully, increasing the age of national superannuation to 67 over 12 years, while allowing people to get their KiwiSaver at 65 if they would still like to. That\u2019s the kind of boldness and honesty this country needs right now; not just more spending and delusion.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000225\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EFinally, and by far most importantly, what we needed to do in this Budget was to actually imbue a culture of striving and success. Here\u2019s how we would do that in our alternative budget. You know, Michael Cullen, who was the Minister of Finance a long time ago, and I acknowledge his recent passing\u2014may he rest in peace. Michael Cullen had two tax rates when he became finance Minister: 19.5 percent and 33 percent\u2014that was it. It was that simple. He also had a low-income rebate, giving relief only to those who really needed it. Since then, successive Labour and National Governments have made our tax system more complex, less effective, and less efficient. Now we have six tax rates: five personal income tax rates\u201410.5, 17.5, 30, 33, and 39 percent\u2014and a company and trust tax rate of 28 percent. The funny thing is that we say to our kids, \u201CIf you want to get ahead, study hard, work hard, save, and invest carefully, you\u2019ll be rewarded.\u201D, and then in the tax code we say, \u201CWe\u2019ve got six different tax rates so that for any level of effort, we\u2019ll be there to take a little bit more off you.\u201D Talk about mixed messages\u2014a labyrinth of punishment in a Byzantine tax code.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000226\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EThen some people say, \u201COh, that\u2019s all fine. Just adjust the tax brackets for inflation.\u201D Well, ACT says that we need to put the values of aspiration that other parties say they believe in into our tax system to make it fairer, simpler, and more competitive. ACT\u2019s tax policy shows how we could get to just two rates: a top rate of 28 percent and a bottom rate of 17.5 percent, and that would allow us to do two things. First of all, we\u2019d be able to stop inflation because we would be cutting expenditure by $6.8 billion, but, second of all, it means that people right throughout the income structure would get significant tax rates. You take the example of somebody earning $70,000\u2014maybe a nurse, somewhere in the middle of their income stream, of their career, earning $70,000. They would keep $2,309 extra under ACT\u2019s tax policy to make up for the cost of living increases that they\u2019ve dealt with under the first five years of \u201CHard Labour Government\u201D.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000227\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EBut there\u2019s other things that we\u2019d do. Do you know that this country is one of the hardest places in the world for foreigners to send money? It\u2019s true. Myanmar, Saudi Arabia, China\u2014those are the three countries that the OECD says make it harder to invest in as a foreigner. We wonder why it is that Israelis and Estonians\u2014people that used to be much poorer than us\u2014get twice as much investment per worker as we do, and we wonder why it is that those countries like the Czech Republic, Slovenia, and Lithuania are overtaking us. Well, it\u2019s partly because we just don\u2019t get investment capital. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000228\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EThe ACT Party says it\u2019s time for New Zealand to be open for business and say that we\u2019re going to be the easiest place to invest if you are a member of the OECD. If you\u2019re a democratic country, then New Zealand is open for business for you, because we actually want our friends around the world to bring their skills and their money and their ideas to enrich our country. We don\u2019t want to be a xenophobic backwater conducting some sort of bizarre bicultural experiment. We want to be globally connected citizens with the best that the world has to offer. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000229\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EHere\u2019s the next thing we\u2019d do. Do you know that this Government owns about $16 billion worth of State-owned enterprises (SOEs) like New Zealand Post, like KiwiRail, like Kiwibank, like AsureQuality. Some of them are or have the potential to be good businesses. Now, the evidence is crystal clear that when the Government sold half of Genesis, half of Meridian, and half of all of the energy companies, in fact, their performance improved so much that the Government actually got a bigger dividend from owning 51 percent of them than it did from owning 100 percent. The ACT Party says that we would partially privatise more SOEs in order that we can raise their productivity and\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000230\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022ad744a70f5d54b838cac74509af89c65\u0022\u003EHon Member\u003C/span\u003E: Same old ACT\u2014same old, same old. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000231\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00228951d38e3d7246e08868090e462f214e\u0022\u003EDAVID SEYMOUR\u003C/span\u003E: \u2014reduce New Zealand\u2019s debt by $8 billion. I just ask people on the other side of the House: if you\u2019ve got a policy that works, that keeps New Zealand control of the businesses, and that raises productivity and pays down debt, why would somebody be against that, other than pure ideology? Is this something we can afford not to do, or are we too rich already? \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000232\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EWe had a big opportunity today for a Government to stand up and overcome its ideological opposition to cutting taxes, and then we had the opportunity to give people relief from the cost of living crisis. We had the opportunity to reduce wasteful and inflationary expenditure. That would have all been good, but we had the opportunity to do even more: to invest to actually secure the future. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000233\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EACT\u2019s Budget would have invested strategically in three areas. We would have taken $250 million for principals to pay their best teachers more, because our teachers are the biggest determinant of where New Zealand is going to be in 30 years\u2019 time, of all the Government employees. We\u2019d not only give them tax cuts of between $2,000 and $3,000 each; we\u2019d also give a teaching excellence reward fund to pay the best ones more. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000234\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EOur geopolitical situation has changed since Helen Clark said that we lived in a benign strategic environment. The ACT Party would invest in defence up to 2 percent of GDP in order that we can go to the Australians and say we want Anzac back. We want an independent but interoperable Anzac defence force in the South Pacific because\u2014let\u2019s be honest\u2014our neighbourhood has changed. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000235\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003EFinally, we would share $1.2 billion per year with councils so they can afford to build infrastructure, but only if they say yes to building more houses for the next generation. That is smart, strategic investment in ACT\u2019s alternative budget to genuinely secure the future and give light at the end of the tunnel so all those people\u2014all those young people, in particular\u2014who are asking after this Budget, this bluff and bluster from Grant Robertson, \u201CIs there really a reason for me to stay here? Is there light at the end of the tunnel from the cost of living crisis? Is there a strategy to get ahead of former communist countries that are now richer than us?\u201D Well, ACT\u2019s gives hope to those people that next year, things will change. We\u2019ll take our Budget seriously, and New Zealand will have a bright future after all. But Labour\u2019s Budget today\u2014that ain\u2019t it. Thank you, Mr Speaker.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022 data-id=\u00224932dec547c4401a9b3be694e8e39301\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000236\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00224932dec547c4401a9b3be694e8e39301\u0022\u003EDEBBIE NGAREWA-PACKER (Co-Leader\u2014Te Paati M\u0101ori):\u003C/span\u003E T\u0113n\u0101 koe e te Pika. That is the first time I\u2019ve stood up with ACT clapping. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000237\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EWhen we look across our world as tangata whenua on 19 May 2022, this is what we see: a landscape where we once owned 100 percent of our whenua, and now we own less than 4 percent. One third of people on the dole are M\u0101ori, 65 percent of women in prisons are M\u0101ori, and they were put there for just trying to survive and feed their tamariki. More than a quarter of our people are living in poverty, 99c in the dollar was taken from us, and we are supposed to turn that deficit around with 1 percent returned in iwi settlements. The richest 10 percent own 70 percent of the wealth and the top 1 percent own a quarter, while 50 percent of Aotearoa own just 2 percent of the wealth. We have the highest indigenous incarceration rates in the developed world, the highest homelessness rates, and the highest domestic violence rates in the developed world.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000238\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EThis damning state of affairs would shock anyone, but what\u2019s even worse than the numbers is what this means for ordinary people. Some of the wh\u0101nau I know on the ground in Te Tai Hau\u0101uru who are on benefits are paying up to a quarter of their incomes to service Government debt that was incurred to cover basic needs like food and bills during the COVID pandemic. This is on top of rising prices, an insecure job market, and the Government dropping support they brought in during the pandemic such as the double winter energy payment. The theft of our assets over generations is what has built the fortunes of the rich in this country and it has fuelled this extraordinary wealth divide. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000239\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EOur world, our reality, as Te Ao M\u0101ori is never reflected in the speeches, policies, legislation, or Budgets that are put forward in this House by successive Governments. That is why we are here. It is the role of Te Paati M\u0101ori in Parliament, whether on the cross-benches, in Opposition, or in Government, to fight to ensure that every Budget that is put forward in this House is a Budget that restores power and resources to wh\u0101nau, hap\u016B, and iwi; that every Budget is a Budget that delivers for M\u0101ori and honours Te Tiriti o Waitangi. Funding for M\u0101ori programmes will not work if these programmes aren\u2019t conceptualised, designed, managed, and governed by M\u0101ori. Funding for M\u0101ori programmes indeed have to be ma te M\u0101ori, ki te M\u0101ori, mo te M\u0101ori, e ai ki te M\u0101ori\u2014by M\u0101ori, to M\u0101ori, for M\u0101ori, according to M\u0101ori. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000240\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EThis is what we mean when we talk about mana motuhake. We are here to be an unapologetic voice for tangata whenua, for our aspirations, our visions, our imperatives, our dreams, and, as a descendant of Ng\u0101ti Ruanui growing up in P\u0101tea, I know all too well the real impact on the ground when Budgets fail to deliver for M\u0101ori grassroots and fail to honour Te Tiriti. I spoke in my maiden speech of the hardships our people endured in the 1970s and the 1980s as we faced the loss of jobs, factories, schools, banks, and infrastructure. While the State could have responded to this widening inequality with the compassion and care, instead, in the 1990s, we got benefits cuts, more police, prisons, and racist and bigoted rhetoric aimed at M\u0101ori and the poor. The persistent disparities in social incomes for M\u0101ori are the result of decades of under-investment and deregulation by successive Governments, red or blue.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000241\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EIn recent years, there\u2019s been a continued bipartisan refusal to level the playing field and significantly redistribute wealth back to working people, back to tangata whenua. Instead, Governments have tried to address problems with bureaucratic solutions, never enabling communities to address the root causes. As a result, inequality in Aotearoa is only getting worse. As Bernard Hickey has reported, the pandemic has made the rich $952 billion richer, while the poor were forced $400 million further in debt to the Government itself. Foodbank use more than doubled. Any Budget that is put forward must focus on reducing inequality and restoring the wealth of the grassroots.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000242\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003ETe Paati M\u0101ori acknowledges the Prime Minister and her Government on Budget 2022. It makes some great progress in a few areas, and we, again, are grateful that she has decided to adopt some more of our policies. Anei he koha\u2014feel free to take the rest of them, too.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000243\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EHowever, sadly, e te iwi, this is not a Budget that delivers for M\u0101ori or honours Te Tiriti; this is a Budget that tinkers with the generational challenges that we\u2019re facing. It doesn\u2019t deal with the root causes in a systemic or sufficient way. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000244\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EDuring the pandemic, Te Paati M\u0101ori was proud to work alongside Wh\u0101nau Ora and our grassroots hauora providers across the country to hold Government to account and to pressure them to ensure that funding was invested directly into our own front-line organisations. This was essential in turning around the M\u0101ori COVID response and it led to its huge success\u2014surprise, surprise. If given the chance, we know how to look after each other; we just need the Crown to step out of the way.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000245\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EOff the back of the pandemic response, it seems crazy that the Government realises that the success of the M\u0101ori COVID response could be replicated across social service delivery, economic development, environment restoration\u2014go figure. We may then be seeing in this Budget a wholesale devolution of funding to M\u0101ori organisations to continue this success model to enable us to do what we do best, which is look after own and lead as kaitiaki. That would have been revolutionary. It would have allowed us to realise our dreams for self-determination and self-sufficiency in an Aotearoa where our mokopuna have everything they need to thrive and are supported to grow up and be proud to be M\u0101ori. That would be a Budget that truly delivered for M\u0101ori and honoured Te Tiriti.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000246\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EHowever, in this Budget, what we largely see is business as usual. It\u2019s vanilla, it\u2019s lacking ambition\u2014more money going into broken systems that have failed our people for generations. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000247\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EEven in the one area where the Government can be acknowledged for making progress\u2014health\u2014this Budget lays bare the reality of the Government\u2019s inadequate vision for M\u0101ori health. Aotearoa has been starved of health funding for decades. Our system did not cope with the pandemic, and the State finally had to realise that the best outcomes for M\u0101ori occur when the bureaucracy steps aside and resources M\u0101ori to lead our own solutions. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000248\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EStill, even after agreeing to the M\u0101ori Health Authority, the Crown continues to put up financial and legislative barriers to it being truly successful. I was on the select committee and the Government refused to put tino rangatiratanga into the legislation. A Budget that delivers for M\u0101ori and honours Te Tiriti would have looked like a Budget for the M\u0101ori Health Authority that matched that of Health New Zealand. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000249\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EIt is pleasing to see an increase in Vote Health, but we, as M\u0101ori, are actually worse off. The more the mainstream gets, the more the inequity is increased and the more we fall behind. The announcement today is even worse than we thought. The Government\u2019s own memos show that the M\u0101ori Health Authority only receives 0.7 percent\u20140.7 percent\u2014of the Vote Health budget. That is 0.7 percent for a people that make up more than 17 percent of the country\u201420 percent, if they\u2019re in Taranaki\u2014with entrenched inequities. This actually increases the inequity gap in funding. It\u2019s shocking. We expected to receive 2 percent. Even on that basis it would take 1,840 years to reach parity\u20141,840 years.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000250\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EWe do acknowledge the $191 million increase for Pharmac cover over two years. We have constantly pushed for increased funding for lifesaving cancer drugs, but this still needs to go further. More mental health funding is good, but it must be proportionate to need, and in this Budget, it\u2019s not. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000251\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EA Budget that delivered for M\u0101ori and honoured Te Tiriti would be a Budget that ensured everyone has enough to do well: lifting the incomes of beneficiaries, students, and kaum\u0101tua, raising the minimum wage to $25, and honouring pay equity claims in health and education. It would look like a Budget that shifts the burden of tax on to the wealthy end of town.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000252\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EWe acknowledge the rebate for low-income wh\u0101nau. This would be only for those who don\u2019t receive the winter energy payment and benefits. This is a cruel, cost-cutting way of looking at wh\u0101nau wellbeing. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000253\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EWe cannot believe that half-price public transport has not been permanently put in place. Extending it for another two months only is just pathetic. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000254\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EThe change with child support payments is greatly welcomed, and it is something that wh\u0101nau have been pushing for for years. This will make a big difference for wh\u0101nau.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000255\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EWhen the National Party and ACT Party talk about their cost of living crisis, what they\u2019re talking about is their wealthy friends feeling the pinch for the first time and having to put off that second yearly overseas holiday, or thinking twice about that second Tesla. That\u2019s why their solution is tax cuts for the wealthy paid for by the poor, and then they have the gall to call us bottom-feeders while we fund their wealthy lifestyles\u2014go figure.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000256\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EWhen Te Paati M\u0101ori talk about the cost of living crisis, what we are talking about is the hard-working wh\u0101nau not being able to afford the cost of basic necessities like food and petrol\u2014wh\u0101nau who already live pay cheque to pay cheque. This crisis is only deepening the entrenched, persistent poverty and deprivation that our people have endured for generations. That\u2019s why our solutions include shifting the tax burden from the poor to the rich, lifting wages, transformative changes to the welfare system, free public transport, regulating and breaking up the supermarket duopoly, and removing GST from food\u2014a policy which a recent poll showed that more than 75 percent of this nation supports.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000257\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EA Budget that delivered for M\u0101ori and honoured Te Tiriti would be a Budget that enabled everyone to have a warm, dry, and affordable house to call their own, where they choose, where they are on their own whenua, in the city and in the local community. It would recognise that for M\u0101ori, the housing crisis has only been made worse, and is already a depressing reality that has locked us out of securing housing and homeownership. The Government has comprehensively failed on housing.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000258\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EM\u0101ori make up 50 percent of the waiting list for social housing, 30 percent of M\u0101ori pay rent that is over 30 percent of their weekly income, and 33 percent of all M\u0101ori will shift residence every three years. At least 12,000 tangata whenua are homeless on their own land. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000259\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EWe acknowledge that the K\u0101inga Whenua loan cap will also be increased from $200,000 to $500,000, and that there will be more funding for insulation and heating in homes. But this Budget will not address the housing crisis in any meaningful way. It barely shifts the dial.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000260\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EDespite much-needed investment in M\u0101ori housing in Budget 2021, this has yet to result in many houses actually being built, or wh\u0101nau actually securing somewhere to live. We must massively increase the pace of construction of State houses while enabling papak\u0101inga and community housing at scale through regulatory reforms and devolving funding and power to tangata whenua and our communities. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000261\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EWe must stop all sales of freehold land to offshore foreign interests. Rather than ruling out the very policies that would help people the most, as the Prime Minister has a habit of doing, we must do what actually works. That means a capital gains tax, excluding the wh\u0101nau home. That means rent controls. That means scaled-up, equity-based rent-to-buy schemes.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000262\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EA Budget that delivered for M\u0101ori and honoured Te Tiriti would invest in the prevention of crime through kaupapa M\u0101ori philosophy. It would defund racist systems that target, harass, and kill our people. Te Paati M\u0101ori has been absolutely consistent in highlighting that the new funding for police and corrections will not address the drivers of crime. What it will lead to is even more dead M\u0101ori on the streets, and, as my tung\u0101ne Rawiri has said, we can\u2019t police and jail our way out of problems caused by failing education and failing health, housing, and welfare systems. The burden of harassment, arrest, conviction, and imprisonment are all carried disproportionately by M\u0101ori.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000263\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EWhat\u2019s more, we are also pumping more money into the military. The Government\u2019s defence capability plan released in 2019 reveals that they intend to spend an extra $20 billion on the military by 2030. Aotearoa should be ramping up our military capability in the 21st century. Yes, we need to be able to defend ourselves. Yes, we should contribute to peacekeeping. But we have no business getting involved in imperialist proxy wars, whether they are instigated by Russia, the US, China, or anyone else. We should stand as an independent and neutral force for security, order, and peace in the South Pacific. At a time when the finance Minister has caved to establishment pressures to restrain spending, why would he choose to invest millions and millions of new funding into the police and the military?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000264\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EThe Government is both refusing to take on the vested interests whose greed is driving the crisis we face and is refusing to lift the ambition for Aotearoa and invest to deal with the entrenched disparities and systemic barriers that are holding up our people and holding our people back, because\u2014let\u2019s be very clear\u2014it\u2019s our people who pay the price: those who are working two or three jobs and still struggling to put food on the table, those who are trying to raise babies while paying a quarter of the income in debt to Work and Income, and those unable to put a warm, dry roof over their kids\u2019 heads. Tangata whenua pay the price; tangata whenua suffer the consequences.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000265\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227a76db18-baa4-41c1-b366-89e2c753a1e7\u0022\u003EUntil this House makes a stand and redistributes wealth, it\u2019s simply putting nails in the coffin of ng\u0101 tangata whenua o Aotearoa. Te Paati M\u0101ori will continue to hold this Government to account. We will continue to work with them and acknowledge where they have made real changes that will benefit our people. We will fight to ensure that future Budgets do deliver for M\u0101ori and, indeed, honour Te Tiriti o Waitangi, and that Budgets progress us towards our mana motuhake. We will continue to build the strength of our movement for tino rangatiratanga. We will continue to grow our numbers and influence in this place, and we will always strive unapologetically to restore the self-determination and self-sufficiency that is uniquely ours. N\u014D reira, t\u0113n\u0101 t\u0101tou katoa.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u00228196a46e58d7489b9f777a0727ae6f7f\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000266\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00228196a46e58d7489b9f777a0727ae6f7f\u0022\u003EHon DAVID PARKER (Minister for the Environment):\u003C/span\u003E I move, That this debate be now adjourned. \u003C/span\u003E\u003C/p\u003E\u003Ca id=\u0022580e9af8c841499287999a7a358b0d6f\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 75\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Green Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 44\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000267\u0022\u003EDebate interrupted.\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000268\u0022\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022 id=\u0022997636d0566242b9a6b7012f1c6baaa1\u0022\u003EUrgency\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000270\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022ae6ce550b3064dd890ea047a66f532dc\u0022\u003EUrgency\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022 data-id=\u00225759b87281b5441d9afa553939f86e1b\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000269\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00225759b87281b5441d9afa553939f86e1b\u0022\u003EHon CHRIS HIPKINS (Leader of the House):\u003C/span\u003E I move, That urgency be accorded the introduction and passing through all stages of the Taxation (Cost of Living Payments) Bill and the Income Insurance Scheme (Enabling Development) Bill; the introduction, first reading, and referral to select committee of the Commerce (Grocery Sector Covenants) Amendment Bill; and the introduction and passing through all stages of the Companies Office Registers Funding Validation Bill, the Customs and Excise (Tobacco Products) Amendment Bill, and the Coroners (Coronial Cap) Amendment Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000271\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022\u003EVery briefly to summarise the reasons for urgency for these pieces of legislation, there are six bills\u2014five to go through all stages and one to have a first reading. The Taxation (Cost of Living Payments) Bill establishes the Cost of Living Payment scheme that was announced in the Budget today, and the scheme comes into effect on 1 August\u2014hence the need for urgency. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000272\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022\u003EThe Income Insurance Scheme (Enabling Development) Bill enables ACC to prepare the Income Insurance Scheme. It does not initiate the scheme; that will be subject to further legislation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000273\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022\u003EThe Companies Office Registers Funding Validation Bill deals with the way the Companies Office funds its corporate registry functions, and deals with an urgent issue there around the validation of the use of funding, which other parties have been informed, and consulted on, about. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000274\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022\u003EThe Commerce (Grocery Sector Covenants) Amendment Bill, again, deals with an issue announced in the Budget today, which is the Government\u2019s desire to ensure that competition in the grocery sector is not blocked through the use of grocery sector covenants. That bill will have a short select committee process. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000275\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022\u003EThe Customs and Excise (Tobacco Products) Amendment Bill deals with a particularly narrow form of tax evasion around water-pipe tobacco.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000276\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022\u003EAnd the Coroners (Coronial Cap) Amendment Bill is a small bill that just increases the number of coroners, which is a Budget measure. We want to have the coroners in place as soon as possible, given the level of demand there is for coronial services.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u002291a88f1408c64c4fa236f31f2099e936\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That urgency be accorded.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 75\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Green Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000277\u0022\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022 id=\u00226f3e391b6ff84136a343b11c463271bf\u0022\u003EIntroduction of Bills\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000279\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u002271d10844115742e78aa9cf3479bae209\u0022\u003EIntroduction of Bills\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022 data-id=\u0022eb5e901a40af43e3b47b2e42cee36a02\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000278\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022eb5e901a40af43e3b47b2e42cee36a02\u0022\u003ESPEAKER\u003C/span\u003E: I understand it is the intention of the Government to introduce bills. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022\u0022 data-id=\u0022e7ea9c01a33844ae98ad4872ffbb2319\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000280\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022e7ea9c01a33844ae98ad4872ffbb2319\u0022\u003ECLERK\u003C/span\u003E: \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000281\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003ETaxation (Cost of Living Payments) Bill, introduction\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000282\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003EIncome Insurance Scheme (Enabling Development) Bill, introduction\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000283\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003ECommerce (Grocery Sector Covenants) Amendment Bill, introduction\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000284\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003ECompanies Office Registers Funding Validation Bill, introduction\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000285\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003ECustoms and Excise (Tobacco Products) Amendment Bill, introduction, and\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000286\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003ECoroners (Coronial Cap) Amendment Bill, introduction.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022 data-id=\u00222157f555d72942cab244fc8df7e90c3d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000287\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002279db8b64-1f9b-4416-9b81-a12963db9cbf\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00222157f555d72942cab244fc8df7e90c3d\u0022\u003ESPEAKER\u003C/span\u003E: The Taxation (Cost of Living Payments) Bill is set down for first reading, forthwith. The remaining bills in the urgency motion are set down for first reading, presently.\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022\u003EBills\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000288\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u00223451d4140a06428f84044a2ec136cb84\u0022\u003ETaxation (Cost of Living Payments) Bill\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000289\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u002264ef90c3f48448daac1cbaebf7ba0b76\u0022\u003EFirst Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022e9354c8f3b5049db9336b20917ba70a4\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000290\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022e9354c8f3b5049db9336b20917ba70a4\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E I present a legislative statement on the Taxation (Cost of Living Payments) Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000291\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022ce2c4dda2551401dbe62246ff8b953f6\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: That legislative statement is published under the authority of the House and can be found on the Parliament website.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000292\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00220c4b335a8ed840ed93d1d988720063ff\u0022\u003EHon DAVID PARKER\u003C/span\u003E: I move, That the Taxation (Cost of Living Payments) Bill be now read a first time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000293\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EThe world is experiencing inflation at higher rates than we have seen for many years. This is a combination of the effects of COVID-19. COVID-19, of course, disrupted methods of production and transportation around the world, and those effects are not yet over. This is part of the cause of inflation, as is the rising domestic demand in New Zealand and around the world which has meant that most of the world\u2019s rebounding economically from COVID at the same time, creating inflationary pressures.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000294\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003ESo inflation was already building when the war in Ukraine sent energy, fertiliser, and food prices higher, squeezing household real incomes. This is not just a New Zealand phenomena; around the globe, we\u2019re seeing all countries grappling with the same issue. In the US, inflation is running at 8.5 percent; in the UK, it\u2019s 9 percent; and, as the Minister of Finance in his Budget address today said, the OECD average is 8.8 percent.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000295\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EWe know that the cost of living affects just about all households, but it most affects those who are on low to middle incomes. We\u2019ve already taken a number of steps to help those households: we\u2019ve, of course, significantly increased the minimum wage each and every year; we\u2019ve increased family tax credits; and we established the Best Start payment and the winter energy payment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000296\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003ETreasury says that inflation will outstrip annual wage growth this year for the first time since this Government was elected in 2017. I noted in the Budget documents that the prediction for this year is wage growth of 4.6 percent against inflation of 6.7 percent. This follows years of strong wage growth and the same Budget forecasts from Treasury that next year, under this Government\u2019s economic plan, wages will once again grow much more strongly than inflation. I would point out this is in contrast to the record of the prior National Government, where real wage growth was negative through the global financial crisis and remained very anaemic long afterwards.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000297\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn recent months, we\u2019ve helped in other ways: we have slashed fuel excise duty, we\u2019ve cut road-user charges, and we\u2019ve halved public transport fares. Today\u2019s Budget extends those measures and also halves public transport costs to more than 1 million people on a permanent basis. We\u2019re also committed to dealing with some competition issues in the grocery sector to ensure that people pay fair prices for food and other basics\u2014that issue will be covered in more detail in respect of other legislation which we are proposing to pass through all stages as part of this urgency motion to remove barriers to new retailers entering the market.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000298\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn addition to all of those measures, the Government is, by this bill, introducing a payment of $350 to help low and middle income people cope with current inflationary pressures. For each individual recipient, this is equal to half the couple rate for the winter energy payment. The payment is a temporary measure to provide support for individuals who earned up to $70,000 in the last tax year and are not receiving the winter energy payment. The income cap of $70,000 has been set to provide support to those who earn up to around the average annual wage, which is around $65,100. On that issue, with respect, the Leader of the Opposition had it wrong in his Budget address, about an hour ago.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000299\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EThis initiative is not aimed at people who are on a main benefit or superannuation; those people are already being supported through the measures I previously described, such as annual cost of living increases and by the winter energy payment which provides support for their living costs through the winter months.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000300\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EA large group of people is supported by this payment\u2014approximately 2.1 million New Zealanders will be eligible for the payment. The total payment of $350 will be split into three monthly instalments, each of around $160 million, with the first on 1 August, and this will be paid out by Inland Revenue. There is no application process. For those eligible, Inland Revenue will make the payment by direct credit into the person\u2019s New Zealand bank account. To achieve this, we need to make some relatively minor changes to tax legislation to allow Inland Revenue to make that payment using information that Inland Revenue already holds.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000301\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EAs I said before, the first instalment will be made to eligible people by 1 August. This date allows Inland Revenue time to prepare for the payments, including obtaining bank details for the over 200,000 taxpayers for whom we don\u2019t hold a bank account currently. It will also enable more people to complete their tax returns for the year ended 31 March 2022, upon which the entitlement is based.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000302\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EThe International Monetary Fund has said that now is not the time for substantial tax cuts. In contrast to other parties, we are not promising tax cuts that give hundreds of thousands of dollars each year in tax cuts to CEOs and little to others; we believe our solution is better and fairer. In conclusion, this payment will help more than 2 million New Zealanders, and I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u0022ddc357d601024668a7b1a9a5da7d01f5\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000303\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022ddc357d601024668a7b1a9a5da7d01f5\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: The question is that the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022 data-id=\u00225e6fd605dc2740359fa083778e754d4e\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000304\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00225e6fd605dc2740359fa083778e754d4e\u0022\u003ENICOLA WILLIS (Deputy Leader\u2014National):\u003C/span\u003E We have, today, the spectre of band-aid economics for an economy that is broken, for an economy that is sending New Zealand backwards, that has New Zealand households struggling with a cost of living crisis that is not only the deepest that\u2019s been experienced in 31 years but a cost of living crisis that we learn, in the Budget today, is set to continue for many years to come. This is not a temporary cost of living crisis, which you might believe while you listen to David Parker talking about a three-month measure. This is a cost of living crisis that is set to have inflation outside the band that New Zealand has accepted for 30 years, above 30 percent, well out to 2025. If you think it\u2019s bad this year, New Zealand, with inflation meaning that everywhere you go, the groceries, the petrol, every price you pay is going up each month, then don\u2019t think it\u2019s getting better under Labour. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000305\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022\u003EToday, the Treasury confirmed that next year inflation is going to keep pumping hard. It\u2019s going to be at 5.2 percent. Then the year after that, in 2024, are we going to see it come back then? No. It\u2019s going to be at 3.6 percent. So what does that mean for hard-working New Zealanders? It means under Labour, every dollar buys them less. It means that their wages will not go as far. It means that their household budgets will be going backwards.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000306\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022\u003EDo you know who else is going to be hit hard? That is every New Zealander who has a mortgage. We have not had a situation in this country for many, many years where inflation continues outside the band that the Reserve Bank is meant to accept as acceptable for three years. What that tells you is the Reserve Bank is going to be hiking interest rates high and fast, and New Zealanders are going to be paying thousands more for their mortgages. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000307\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022\u003ESo every New Zealander needs to know right now that this cost of living crisis is not temporary; it is the permanent gift that Labour is giving New Zealand, and it is set to bite very hard. It is set to take many people backwards. Not only that but we have an economic picture where growth is starting to stall, where we have growth out in the future years falling off a cliff, and we have the prospect of greater incomes in the future falling away. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000308\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022\u003ESo what is the Government\u2019s response to this permanent set of challenges? Are they doing what we believe would be sensible and bringing some discipline and rigour to their own spending? No, no. Instead, what they are doing is the biggest Budget blow-out in New Zealand\u2019s history. Fresh from having the highest levels of spending that we\u2019ve ever had to get us through a pandemic, are they winding it back\u2014are they winding it back? No, they are not winding it back. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000309\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022\u003EIn fact, what we have is a finance Minister who is not content with the biggest operating allowance in New Zealand\u2019s history at $5.9 billion. No, that\u2019s not enough for him. So ill-disciplined and careless has this Government become about its spending that he\u2019s raiding next year\u2019s Budget kitty as well. That\u2019s right. He\u2019s taking $2 billion from next year and he\u2019s allocating it this year. That\u2019s not enough either. He needs more. His thirst for New Zealanders\u2019 money is insatiable. So he\u2019s taking half a billion from the year after that Budget and he\u2019s allocating that in the Budget this week. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000310\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022\u003EYou would think that at $8.4 billion, that might be enough to satiate the thirst that this Labour Government has for spending New Zealanders\u2019 money, but no. On top of that, they\u2019re going to spend the money that they get through the emissions trading scheme. They\u2019re going to spend it on a whole bunch of climate change initiatives, including ribbon-cutting ceremonies for big business. Then what they\u2019re going to do is they\u2019re going to keep spending COVID money on top. So we have the biggest blow-out in Budget history being presided over by this Labour Government in a time of record inflation with a cost of living crisis biting in.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000311\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022\u003ESo what should they do? Should they take a band-aid approach and pretend that this is just a temporary thing? Should they say to New Zealand, \u201CHey, look, it\u2019s only going to hurt for September, October, and November, so we\u2019ve got a little payment just to make it OK.\u201D? Well, we say that is disingenuous in the extreme, because New Zealanders deserve to know that this cost of living crisis isn\u2019t temporary. It\u2019s not a three-month thing. It is going to go on for years. In November, we will christen Grant Robertson \u201CMr Christmas\u201D, because do you know what the Grinch will deliver for Christmas? He\u2019ll take away the temporary payment. He will say\u2014Mr November will say\u2014\u201CNow, now. Labour\u2019s done all we can. We gave you back a little bit of your own money for a little while and we didn\u2019t like how it felt. I\u2019ve got more spending to do. It all stops now.\u201D Will New Zealanders be better off? No, they won\u2019t, because they\u2019ll be looking forward to more inflation, higher prices. They will be looking forward to slipping further behind each week. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000312\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022\u003ESo what is the alternative? Well, actually, what New Zealanders need is a disciplined Government that will get more bang for their buck, and not a Government that thinks it\u2019s OK to just keep hiring public servant after public servant, spending more and more money on strategies and plans that don\u2019t get results, that don\u2019t get outcomes\u2014a Government that will be more disciplined about its spending. Then what they need is a Government that will give them permanent tax reduction, because it is not acceptable for Grant Robertson to let inflation be his stealthy tax, his silent tax increase, that pushes more and more New Zealanders into higher tax brackets and forces them to pay more tax. They deserve permanent tax reduction. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000313\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022\u003EThat is why National has put forward a package that would give every taxpaying New Zealander some tax relief by indexing their income thresholds. Our package would be more generous to more people. Anyone earning more than $50,000 or more is better off with our tax reduction plan. For those on the median wage, $55,000 a year, listen in to this: National thinks you deserve $800 per year, not just this year but every year. What does Labour think? They reckon all you\u2019re good for is 350 bucks. Well, I know what New Zealanders are saying right now. Some of them are saying, \u201C350 bucks\u2014you know what I could do with that? I might be able to get a cheap ticket to Australia, and if I buy that ticket to Australia, then I might find a place where I can get ahead once more.\u201D \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000314\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022\u003ESo we say choose a tax plan that is more generous to more people. Don\u2019t choose a plan that says to some of our skilled, experienced teachers, police officers, some of the doctors in our community, some of the social workers in our community\u2014don\u2019t say to them, \u201CYou\u2019re excluded from the plan.\u201D, because that\u2019s what Labour\u2019s saying today. They\u2019re saying to all of those teachers who are on the high step, \u201CIf you\u2019re a teacher and you\u2019ve got a partner at home or you\u2019re a single earner and you earn over $70,000, nothing for you.\u201D Because at the heart of this idea is a principle, and the principle is this: Grant Robertson believes he can spend New Zealanders\u2019 money better than they can, and he intends to confiscate growing amounts of their incomes so that he can waste it and then redistribute it to them and expect them to be grateful for it. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000315\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022\u003EHere on this side of the House we say it\u2019s not working. If New Zealanders felt that the extra spending, the 67 percent in extra spending, was making them 67 percent better off, then they might have something to listen to, but they\u2019re not seeing it. They\u2019re sick of the big promises with no delivery. They\u2019re sick of people who stand up and say, \u201CWe\u2019re going to give $2 billion\u2014$2 billion\u2014of your taxpayer cash to KiwiBuild, and it\u2019s going to solve the housing crisis, and there\u2019s going to be 100,000 houses.\u201D Then what do New Zealanders actually get out of the end of that? They get 1,300 houses. That\u2019s all they get. They get a housing crisis that worsens, with rents up the most they\u2019ve ever gone up\u2014up $150 a week\u2014with a situation where housing is more unaffordable than it\u2019s ever been, where the State house waiting list has quadrupled, and where last night around 4,500 kids were forced to sleep in a motel room. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000316\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f12da0af-dc73-4870-8f77-1d50a75eb44c\u0022\u003ESo they know not to trust this Government. They know not to trust Grant Robertson when he says he can spend their money better than they can. We say to New Zealanders: you deserve better than band-aid economics and a knee-jerk reaction because Grant Robertson realised he was out of touch and that there was a cost of living crisis. You need a Government that will actually get on top of the cost of living crisis, reintroduce discipline to spending, make sure that inflation is pushed down with a Reserve Bank who actually focuses on price stability\u2014a Government that won\u2019t let interest rates go through the roof, a Government that will give you the permanent tax reduction you deserve so that anyone earning $50,000 a year or more who works hard for their money will be better off. When the band-aid gets ripped off in November, New Zealanders can look forward to the smiling face of the Grinch: Grant Robertson.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022 data-id=\u00223fe323e7cbb544d3ab4f07a248fb7e4f\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000317\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00223fe323e7cbb544d3ab4f07a248fb7e4f\u0022\u003EDr DEBORAH RUSSELL (Labour\u2014New Lynn):\u003C/span\u003E The Opposition live in some fantasy world. They live in a world where they can say that an economy is broken when unemployment is down to 3.2 percent, an extraordinary low. The live in a fantasy world where they think it\u2019s a broken economy when growth will be about 4 percent by about June 2023. They live in a fantasy world. We will have net debt topping out at about 19.9 percent of GDP. They call that a broken economy\u2014it is fantastical stuff. It\u2019s the sort of fantastical stuff that refuses to admit that there has been a global pandemic, refuses to admit that this is a Government that has responded nimbly to the global pandemic, and seems to think that New Zealand exists all on its own and doesn\u2019t have anything to do with the rest of the world.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000318\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003EOn this side of the House, we are realistic about what is happening in New Zealand and what we need to do to help New Zealanders. Inflation worldwide is rampant; it is running. In the US, inflation is at about 8.5 percent; in Canada, it\u2019s 6.7 percent; in Germany, it\u2019s at 7.3 percent; and in the UK, it\u2019s heading towards 9 percent. The OECD average is around 8.8 percent. In New Zealand, we are not immune to worldwide phenomena, we were not immune to the global pandemic, and we are not immune to what is happening with inflation around the world. In Australia, they are currently at 5.5 percent inflation, and their Reserve Bank over there is predicting it is going to head towards between 6 and 9 percent. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000319\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003EHere in New Zealand, we are experiencing inflation too. But all the predictions are, in the real world, that it will ease off next year\u2014this is a somewhat temporary problem. It is a spike. Do you know why that will happen? It is because central banks around the world are taking action to curb inflation\u2014just like ours. We know that even though all the respectable predictions are that this will be a temporary phenomenon, driven by the supply chain crisis and the war in Ukraine\u2014both situations are expected to ease up\u2014it is nevertheless hard for New Zealanders at the moment. So we have a cost of living package that is designed to help all New Zealanders. Bear in mind that part of this cost of living package is the cut in the fuel excise and the reduction in road-user charges, which has been extended for another two months. It is the subsidising of public transport with a 50 percent fare subsidy, which is being extended for another two months. These are measures that help all New Zealanders.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000320\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003EEvery single New Zealand family is better off as a result of those changes, but this particular change that we are debating now is cold hard cash in the back pocket of people on incomes below $70,000. On that side of the House, they oppose it. They oppose helping out families and helping out people who are earning less than $70,000 a year. What did they say? \u201COh, we don\u2019t like that.\u201D They just want to carry on their mantra, \u201CTax cuts, tax cuts, tax cuts.\u201D without thinking seriously about the nature of our taxes. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000321\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003EThere\u2019s a really good reason why we have chosen this approach in terms of helping out families through the winter that is coming. It takes time to put tax cuts in place. They don\u2019t just happen magically overnight because someone in fantasyland decides that they should happen. It takes time to get them implemented and through systems. We can do this payment now. It will take a wee while to get it up and going, but it is money that will be in people\u2019s back pockets this year. Unlike the Opposition, we are going to help everyone who has earned an income\u2014who is not currently on a benefit or on super\u2014from zero dollars to $70,000. So more people will be better off with what we\u2019re offering to help them get through in this time when inflation is hurting. That is part of a package that we\u2019ve put together. It is a package that is designed for all New Zealanders. It is a package that puts straightforward cash in people\u2019s back pockets. It won\u2019t cover all the costs. It\u2019s a contribution to the cost of living, and it\u2019s a contribution that on this side of the House we are proud to make to help New Zealanders out during the tough times. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022 data-id=\u002236e85d5456f8434f8d33df7a454f0593\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000322\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002236e85d5456f8434f8d33df7a454f0593\u0022\u003ECHRIS BISHOP (National):\u003C/span\u003E Three hundred and fifty dollars is an interesting amount of money for three months. I\u2019ll tell you what 350 bucks buys: a one-way plane ticket to Sydney, Melbourne, and Brisbane\u2014and that is what young Kiwis, in fact middle-aged New Zealanders, will be thinking about as they stare at this Budget and this paltry, pitiful amount of money that the Government has deigned, in its wisdom, to give back to New Zealanders.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000323\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EThis bill and the Government\u2019s Budget summarises the difference in approach between National and Labour. Labour wants to rapaciously take as much of your money as it\u2019s possible to take, churn it round the giant bureaucracy in Wellington\u2014which has had 10,000 more bureaucrats added to it in the last four year\u2014take all the dead weight loss that is involved in the tax system and all the bureaucracy in the tax system and all the bureaucracy of the tax system and all of the reduction in economic activity\u2014take all of that, and then, if Grant\u2019s generous enough, he\u2019ll give a little bit of that back to you for three months.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000324\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00223f2f0b5ecba940fb99388d3f1b3193e1\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: Order! I just want to make a comment. There\u2019s been quite a bit of using incorrect names and shortened names. Please use full names, it will reflect in the Hansard, and people will know who members are talking about.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000325\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a81763f3b8fd4654a525f4611b207e97\u0022\u003ECHRIS BISHOP\u003C/span\u003E: Grant Robertson, the Minister of Finance for the next 18 months\u2014after which, hopefully, New Zealand will never be subjected to his rapacious, tax-hungry ways ever again\u2014is a man who believes that the Government can just take as much money as it\u2019s possible to take, and then, if he\u2019s generous enough, he\u2019ll give some of it back to you: the poor, long-suffering taxpayer. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000326\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003ESo there\u2019ll be a big group of New Zealanders who will stare at this Budget and stare at this bill and say, \u201CYeah, 350 bucks, OK, well, look, I\u2019m not going to turn down 350 bucks; it\u2019s better than nothing, because I\u2019m staring at inflation of 7 percent and my wages are only going up 3 percent, and I\u2019m staring at inflation above the 3 percent threshold over to 2025.\u201D, but they will also look ashore and say, \u201CYou know what? Actually, I\u2019d be better off in Australia or further afield.\u201D So $350 is an interesting sum of money, because it\u2019s about a one-way flight to Sydney, Melbourne, and Brisbane. It probably won\u2019t get you to Perth, but it would definitely get you to the east coast of Australia.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000327\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003ELet\u2019s be extremely clear about the numbers in this Budget: 6.9 percent inflation, now a wage growth of around 3 percent. What does the Budget say? It says that, for the next three years, inflation isn\u2019t going away. This is not a one-time thing. This is not a temporary thing. Deborah Russell said, \u201CYou know, oh, well, it\u2019s forecast to come down.\u201D Yeah, it\u2019s forecast to come down; it\u2019s forecast to come down from 7 percent to 3.6 percent to 3 percent. That is still massive inflation. Kiwis\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000328\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022fc6d44ba1e7045968362762f501e35d0\u0022\u003EHon David Parker\u003C/span\u003E: No, it\u2019s not.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000329\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d80b06b99951471bbc8b6debcfdd929b\u0022\u003ECHRIS BISHOP\u003C/span\u003E: Yes it\u2014David Parker says, \u201CNo, it\u2019s not.\u201D David Parker remembers\u2014I\u2019m not having a go at his age but it is just literally true that David Parker remembers inflation of 7 percent, 8 percent, 9 percent, 10 percent; I don\u2019t, because I\u2019m 38 and people my age and below don\u2019t remember serious levels of sustained inflation above 5 percent or 6 percent. They don\u2019t remember it because they\u2019ve never experienced it, and what they\u2019re about to experience is what that is. It\u2019s the robber in your back pocket. It\u2019s the thief that you can\u2019t do anything about. It\u2019s happening here in New Zealand and it\u2019s going to continue and it\u2019s going to be bad. It\u2019s the thief in your back pocket.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000330\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EThere are things the Government could do to make it better; not this\u2014not this band-aid approach which the Government is proposing in this bill\u2014but have some fiscal disciple. Grant Robertson has spent, since 2017, an extra $51 billion. He said that, for this Budget, he was going to be fiscally prudent and it was going to be all balanced and all of the rest of it, and everyone went, \u201CWell, OK, well, whatever.; $6 billion is actually the single biggest increase in the new operating allowance in New Zealand history, but OK, $6 billion.\u201D What they have tried to submerge within the paraphernalia sent out alongside the Budget, what the Government has neatly tucked under the covers, is that it is not just $6 billion of new spending this year; it\u2019s much, much more than that. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000331\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EYou take your $6 billion\u2014it was actually $5.9 billion, to be fair\u2014but they\u2019ve also pre-spent $2 billion from Budget 2023, so that\u2019s money that\u2019s been allocated in the 2023 out-year that has been brought forward to 2022, and, to make matters worse, they\u2019ve taken $400 million from Budget 2024 and brought that forward. So that brings us up to $8.4 billion. Then, on top of that, the Cost of Living Payment package, which we\u2019re legislating to allow the IRD to do, is separate. Grant Robertson has just decided that that\u2019s separate to the operating allowance, that\u2019s outside it. So that\u2019s another big chunk of money: $800 million, or so. This is not prudency; this is profligacy. This is an attempt to submerge within the Budget papers a massive Budget blowout. It\u2019s a huge increase in spending. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000332\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EDoes anyone seriously think that in Budget 2023, which we hope will be Grant Robertson\u2019s last one, he\u2019ll turn up and say, \u201CWell, look, I\u2019m just going to have to rein in the fiscal spending; I\u2019ve just spent too much.\u201D? Does anyone seriously think that? No, because for five years now\u2014Budget 2018, Budget 2019, Budget 2020, Budget 2021, and Budget 2022\u2014there\u2019s always a reason; there\u2019s always another excuse. There\u2019s always a reason. He just turns up and there\u2019s another reason to spend more money, and now we find ourselves, if we spend an extra $50 billion\u2014spending\u2019s up by 70 percent in the last five years. Does anyone seriously think that we\u2019re going to turn up to Budget 2023\u2014which, by the way, is an election year, which is not normally a year in which Governments fiscally constrain themselves; normally, they turn on the spending spigots\u2014and Grant Robertson\u2019s going to say, \u201CWell, I\u2019m very concerned about the fiscal discipline; I\u2019m going to have to wind it back.\u201D? No. Of course he\u2019s not going to do that; we\u2019re going to have another spend-up.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000333\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EThe best indication of a future with Grant Robertson and Labour is what happened in the past. They just spend, spend, spend. They\u2019re addicted to it\u2014absolutely addicted to it, and it\u2019s not good quality spending. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000334\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EWhat is the outcome of 10,000 new bureaucrats? Are we getting a 68 percent increase in effectiveness off that spending? Absolutely not. I\u2019ll tell you what it\u2019s going on: have a look through the emissions reduction\u2014I hesitate to call it a plan; it\u2019s more a propaganda paraphernalia produced by the Ministry for the Environment. I have no doubt that a lot of people have spent an awful lot of time doing a lot of website design work and coming up with strategies and developments and every synonym for \u201Cstrategy\u201D and \u201Cplan\u201D you can think of under the sun. But all that is within that is just more plans. Climate change is what is happening while you\u2019re making other plans. Like, it\u2019s just literally a series of plans and strategies and development.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000335\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003ENew Zealand Transport Agency spin doctors\u2014they spend more money on consultants, more money on plans and strategies and propaganda from the transport agency, than we actually do building roads or any public transport projects. We know that all too well here in Wellington, where we\u2019ve spent five years stuck in gridlock because the absurdly named Let\u2019s Get Wellington Moving project is doing the exact opposite while a lot of people make a lot of money doing consultancy reports for something that is just not going anywhere. They spent $2.5 million on the Mongrel Mob, $51 million on a cycleway that\u2019s never been built\u2014a cycleway across the Auckland Harbour Bridge\u2014more money on health restructures. Poor quality spending.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000336\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EThe point is that this poor quality expenditure is driving up inflation. If you don\u2019t believe me look at page 44 of the B.3 in the Budget: \u201CInflation is being driven by strong domestic demand pushing up against constrained supply.\u201D Strong domestic demand of which Government spending\u2014extremely high Government spending\u2014is a massive component of it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000337\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003ESo the question is: is this enough or is there a better way? Our argument is that there is, because if you\u2019re someone on the average wage, you get nothing from this, and anyone on 50,000 bucks a year or more gets more from National\u2019s plan. There\u2019s no doubt about it. Our view is that we need permanent spending restraint and fiscal disciple and permanent adjustments to the tax thresholds, which would deliver more money in New Zealanders\u2019 back pocket. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000338\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EWhat is the Government seriously saying? \u201CWe\u2019re going to have a three-month increase in people\u2019s take-home pay, and we\u2019re going to get to November and December and then it\u2019s going to go back up again, running into Christmas.\u201D? Yeah, right! This will just be continued. Why don\u2019t you just legislate for what we should do in the first place: legislate for National\u2019s plan which delivers more money in New Zealanders\u2019 back pockets and actually reflects the cost of living crisis that we are experiencing?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002261725fea-7d5e-4d1f-8fd3-e5779bb7a14d\u0022 data-id=\u0022ba13537a6d16410fb24bb68f0fc9f447\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000339\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002261725fea-7d5e-4d1f-8fd3-e5779bb7a14d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022ba13537a6d16410fb24bb68f0fc9f447\u0022\u003EBARBARA EDMONDS (Labour\u2014Mana):\u003C/span\u003E Thank you, Mr Speaker. It\u2019s a real privilege to be able to stand and take a call on the Taxation (Cost of Living Payments) Bill. Now, I\u2019ve been an MP now for around 18 months, and I\u2019ve watched politics for a number of years, and it\u2019s quite clear that the National Party have never had a good history with numbers. Their previous Budget had a massive hole in it, but, you know, what did they do? They shifted their spokesperson, and they moved them on. So based on what the National Party is suggesting\u2014because they haven\u2019t actually provided us with an alternative budget. Based on their tax policy that they\u2019re standing by, which are tax cuts, they\u2019re saying a person on minimum wage would receive $110 in a tax cut. So based on the measurement that the previous member had used, $350 under this side of the House\u2019s policy gets a person a one-way ticket to Australia. Under the National Party, they would dump you in the middle of the Tasman Sea, because that\u2019s exactly what the National Party tax policy of tax cuts does. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000340\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002261725fea-7d5e-4d1f-8fd3-e5779bb7a14d\u0022\u003EA person who earns over $180,000 underneath their policy would receive an $8,000 tax cut; a person on the minimum wage would receive $110. There is an absolute injustice and imbalance in that sort of policy, so that\u2019s why we are saying we need people to get short-term relief. This is targeted; it is focused. It is focused on those who are in the most need, those who earn the median wage and have the lowest incomes. Under this tax policy, they will get short-term relief of $350. So let me put that to you in practical terms: that is enough money to help you with your warrant of fitness; that is enough money to help you with the registration. What does $110 a year get a person on the minimum wage? Doesn\u2019t even get you your registration. So that\u2019s why this Government is absolutely supporting a cost of living payment amendment that we\u2019ve got on the table today. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000341\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002261725fea-7d5e-4d1f-8fd3-e5779bb7a14d\u0022\u003EOne of our previous members\u2014Dr Deborah Russell; fantastic academic and tax lawyer\u2014said there was a lot of fantasy world, a bit of misinformation that was coming from across the other side of the House. So let me put down the real facts, the real information: a return to surplus in 2024-25\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000342\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022c75fb6d6273e44fa929f84e9b9814531\u0022\u003EChris Bishop\u003C/span\u003E: Oh yeah, I\u2019ll believe that when I see it!\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000343\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002261725fea-7d5e-4d1f-8fd3-e5779bb7a14d\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002239849c78670c4500825a43680243fd19\u0022\u003EBARBARA EDMONDS\u003C/span\u003E: \u2014unemployment rates projected to remain at record lows\u20143.2 percent. Yes, Mr Bishop, \u201COh yeah\u201D, because, actually, even though you\u2019re saying you\u2019re looking at the Budget documents, we had the Reserve Bank in last week, and we talked about the actual pressures that are causing the inflation, so it would have been good if members on the other side of the House had actually paid attention, because a third of it is from the Ukraine-Russia pressure overseas\u2014international pressures; a third of it is around tradables, which has come through a lot of the pressures coming from all the supply pressures; and a third of it is within New Zealand. So I\u2019m saying to you, the unemployment rate at 3.2, the net debt forecast peaked at 19.9 percent of GDP\u2014that\u2019s lower than Australia, the US, the UK, and Canada. And economic growth\u2014growth\u20144.2 percent in 2023.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000344\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002261725fea-7d5e-4d1f-8fd3-e5779bb7a14d\u0022\u003EIf you don\u2019t believe me, then how about you listen to the IMF\u2014the International Monetary Fund; independent. And what did the IMF say? When they released their annual review for New Zealand, they found New Zealand was in a strong position. They also said, \u201CNow is not the time for substantive tax cuts that give more significant amounts to CEOs than low-income earners.\u201D The IMF said, \u201CNow is not the time for substantive tax cuts.\u201D So, therefore, this payment is a temporary measure to provide short-term support for those who earn up to $70,000. And these are the people that are hurting. It\u2019s that middle. It\u2019s that $70,000 and below. The payment is a temporary measure for those who are not receiving the winter energy payment, which came through earlier because we knew that we had to provide support for people over those winter months. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000345\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002261725fea-7d5e-4d1f-8fd3-e5779bb7a14d\u0022\u003EThe income cap of $70,000 is set to provide support to those who earn around the average annual wage of $65,000. So what does that mean? It means that 2.1 million people will be eligible for the payment. What is 2.1 million people? That\u2019s Auckland, Wellington, and Christchurch. That is the population of people who will benefit from the changes that are covered in this bill. So, therefore, I\u2019ve got nothing much more to say other than the substantive tax cuts across the road will dump New Zealanders in the middle of the Tasman Sea, whereas this will provide a short-term measure of relief for our families\u2014for 2.1 million people. Let me leave that again: 2.1 million people will benefit from this. So, therefore, I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022 data-id=\u0022a6e21f190bfa45b4b52d5df1f2a2cbae\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000346\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022a6e21f190bfa45b4b52d5df1f2a2cbae\u0022\u003ERICARDO MEN\u00C9NDEZ MARCH (Green):\u003C/span\u003E I rise on behalf of the Green Party to speak on the first reading of the Taxation (Cost of Living Payments) Bill. It\u2019s been quite the ordeal listening to the National Party members who keep talking about expenditure and advocating for austerity, ignoring that, right now, many of our low-income communities are struggling to get by. This bill is an acknowledgment that many of our communities are struggling to make ends meet. It is a temporary payment of $350 targeted towards people earning less than $70,000.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000347\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003EBut there is a problem. In an acknowledgment that people are struggling, what we are ignoring are some of the communities that actually are doing it the toughest\u2014that the sign of this legislation, and the intent of this policy, seeks to leave behind people on main benefits. We\u2019ve known for years that these are the communities that are on the breadline. I think it\u2019s appalling, and a disservice to the communities that we\u2019re supposed to be serving, to not include them in a stimulus package, effectively, lifting incomes to allow people to make ends meet at a time where inflation is growing, where global events are putting pressure on supply lines, and, therefore, the cost of basic essentials is going up.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000348\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003EYes, people on the benefit are already receiving the winter energy payment\u2014but the Government knows that it is not enough. This is why, in 2020, the Government acknowledged this by doubling the winter energy payment at a time when things were tough. And things are still difficult for those families. It is a shame that over a million people will be excluded from this payment by design and by political choice. It didn\u2019t have to be this way. The Green Party has advocated that, as part of responding to our inequality crisis, we need permanent increases to incomes so that families can thrive, not just survive.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000349\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003ERecently, there was a group of organisations, under the Te Tapeke Fair Futures group, that released a report explaining just how much some families were struggling to make ends meet. Some of them were under $307 in order to just provide for basic essentials.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000350\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003EThis research was backed by some of our organisations that are doing the most at the front lines\u2014including Barnados, the Manawat\u016B Tenants Union, Monte Cecilia Housing Trust, Auckland Action Against Poverty, New Zealand Disability Advisory Trust, Auckland City Mission, Child Poverty Action Group, the Disabled Persons Assembly (New Zealand) Inc., FIRST Union, Save the Children, and many others. These organisations know the struggles that our communities are going through. In fact, people on the ground have been speaking to the media and to politicians for many years, explaining that we need permanent fixes to our income support system.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000351\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003ESo I\u2019m stoked for the families that will find some temporary relief through this legislation, but I\u2019m deeply disappointed that we are ignoring the reality that incomes remain too low. I\u2019ve heard members of Government talking about how this is a Budget of health. I want to say that researchers and communities have told us, for many years, that we need to be focusing on the things that determine whether someone will be healthy\u2014and incomes play a massive role in that. When families are struggling to make ends meet, they go through toxic stress. That toxic stress builds up and contributes to families getting sick. If we\u2019re serious about building an infrastructure that is fit for purpose, and a health system that delivers for all people in Aotearoa, we need to have livable incomes. This is a massive missed opportunity to ensure that everyone is looked after.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000352\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003EThe inequality crisis is not going to go away in three months\u2019 time; in fact, it is not new. So we\u2019re calling on Labour to look at the many recommendations their own Government reports have put out. The recommendations that people on the benefit have been talking about\u2014to increase main benefits; to individualise the income-support system; to scrap benefit sanctions; and to look at genuine, transformative solutions so that our families are able to fully participate in their communities. Kia ora.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022 data-id=\u00229ec2572f30ab40f8942f4863e0e331ed\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000353\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00229ec2572f30ab40f8942f4863e0e331ed\u0022\u003EDAMIEN SMITH (ACT):\u003C/span\u003E I wonder, do the Green Party, as partners with the Labour Party\u2014did they know about this initiative? And, if not so, I can understand the disappointment in the member\u2019s communications.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000354\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EThis Government has lost its nerve tonight. Grant Robertson treats our income as if it\u2019s just there to be chopped up into taxes, and I see the Minister\u2019s left the room. He believes that every\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000355\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002271ec2c441ada4ac78a20f7734c10d457\u0022\u003EHon Carmel Sepuloni\u003C/span\u003E: You\u2019re not allowed to say that!\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000356\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022cc0751b238b24e28b43b520acb0dfdc9\u0022\u003EDAMIEN SMITH\u003C/span\u003E: He believes your money is\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000357\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002207fe123a03e7464aab0edc15a79f7e28\u0022\u003EHon Carmel Sepuloni\u003C/span\u003E: Point of order, Mr Speaker. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000358\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022c5b88fd7522f4f349bacc736a4961c62\u0022\u003EASSISTANT SPEAKER (Ian McKelvie)\u003C/span\u003E: Order! Order! The member shouldn\u2019t refer to people who have left the room.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000359\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00223b33d3289d0f4132a93429574eca7911\u0022\u003EDAMIEN SMITH\u003C/span\u003E: Thank you. This Government believes that your money is a Government resource, even before it\u2019s taxed. And, once again, with this Budget, we\u2019ve now found out the price to gain political support, and it\u2019s $350. That\u2019s $27 a week, which probably gets you a slab of Speight\u2019s. I\u2019d like to price check that, but I haven\u2019t had the opportunity yet to do that. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000360\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EIn terms of the Taxation (Cost of Living Payments) Bill, there\u2019s been no regulatory impact assessment; no advice from Treasury on this. So when was this constructed? Was it just dreamt up because, \u201CHey, we\u2019ve got a problem with the cost of living, under the pressure from the ACT and the National parties.\u201D? And was it slipped in before the Budget was printed a couple of days ago? Because this can\u2019t seriously be a strategy that will help people with the cost of living. It\u2019s temporary, it\u2019s got to be wound down quickly\u2014just like the fuel taxes\u2014and it doesn\u2019t actually lead to success. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000361\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EThat\u2019s why the ACT Party argues for major tax cuts\u2014and the public deserve them this time\u2014where we have a simple, three flat-rate structure of 17.5 percent for people under $70,000, and 28 percent for those above. That would have stimulated the economy, it would have helped with the cost of living, it would have actually made sense in the mind of the public, and it would have been something the IRD would have backed and administered easily. But no, we\u2019ve come up with Mr Parker\u2019s initiative that\u2014after his great speech to the nation on taxation and helping people, this is what the Labour Party has come up with. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000362\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ENow, in terms of the Commissioner of Inland Revenue using their powers to do this and to sign it off, we\u2019ve got a situation where, under urgency again, we\u2019ve missed the story. It\u2019s as if Labour has missed the story of the golden goose, or maybe it hasn\u2019t. A key part of the \u201Cbrain drain Budget\u201D is to not tax too many productive people. Households are facing the greatest cost of living crisis ever. Even though the Prime Minister and Mr Robertson were sharing cheese rolls today, people this weekend will be going, \u201CCan I pick up that kilo of cheese which is more expensive, or do I do without?\u201D \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000363\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EIt\u2019s only four years ago that\u2014under this Budget, the amount of tax per person has gone from $15,825 up to $21,945. So it\u2019s not even giving and taking away; this is just taking away. This is, potentially, the greatest piece of political spin this Government has ever done. It\u2019s not transparent; it\u2019s just been a hit, and it hasn\u2019t been thought through in a fashion that actually will get traction in the household this weekend. It\u2019s going to fuel inflation, it\u2019s going to drive up\u2014with the Monetary Policy Statement next week\u2014the rates of mortgages and rentals. Everything this Government does is like pouring fuel on the fire. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000364\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EThe public would rather have tax cuts like ACT is proposing, and not to leave for Australia. We\u2019re now the highest taxed country in the Asia-Pacific region; our Aussie friends have pulled ahead, our Singaporean friends have pulled ahead, and our South Korean friends have pulled ahead because they\u2019re more productive. And so we want real change; not something that\u2019s thrown out which lasts for a year. There\u2019s three monthly payments\u2014it\u2019s like going down to Noel Leeming, right? This is not how Government tax should be administered, and it is money out the door to try and cover up that this Government has a cost of living crisis\u2014it admitted it today, and we know that this is not going to fix it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000365\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ESo if you look at a nurse under ACT\u2019s alternative budget, they\u2019d be $2,000 better off if they had a better tax rate. A family on an average full-time salary of $73,000, a part-time worker earning $30,000, and two children could be $2,800 better off. A nurse, and a teacher, or police officer near the beginning of the year earning $60,000 would be nearly $800 better off. So why is this Government just not giving back to the people? Why is it so intransient, considering the other programmes that it\u2019s given out billions and billions of dollars to? The first people that should have got this money are the citizens of New Zealand. So everyone\u2019s getting squeezed\u2014nothing\u2019s changed today except a few extra dollars chucked out which will buy a few loaves of bread. The Kiwi battler is going to make a decision about this Government, on how it earns its money, how it pays its bills. It wants the Government to get out of its life, and it wants transparency in the day-to-day management of its household income. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000366\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EThis was the day for Grant Robertson to tighten his belt, but, no, he loosened it. He\u2019s fuelled inflation, he\u2019s off to the races again with a five-year plan that doesn\u2019t make sense in a holistic way, and Mr Shaw says we need two more Budgets of enlightenment. Well, where does that leave the country at a net debt level? So we\u2019ve got to start earning away in a productive economy, and we\u2019ve got to accept that things are tight. But, you know, in the New Zealand household people are tightening up their budgets, they are saving $27. They are actually doing it, right? They\u2019ve been doing it for a long time now, before this Government has stepped in today. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000367\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ESo Grant Robertson needs to stop treating our revenues like he\u2019s going to tax them and fill the gaps in his Budgets. And he needs to stop telling the people\u2014and insulting the people\u2014of New Zealand that this is what you\u2019re going to get to get through this crisis. This is the greatest crisis of living we\u2019ve seen in a long time in this country. And Mr Parker needs to adopt his attitude about Government resources and taxes, where he\u2019s taken in so much money that it\u2019s time to contemplate a cross-party alliance to reduce taxes and give Kiwis a break.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000368\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ESo in terms of this piece of law tonight, and the explanatory notes\u2014they\u2019ve very, very interesting\u2014under the scheme, a cost of living payment has been indexed to $70,000 per annum. I asked Treasury today, in anticipation of this moment, \u201CCould you define to me what a low and middle income earner was?\u201D And they said, \u201CWe don\u2019t know. We haven\u2019t got a definition in the Budget packs.\u201D I said, \u201CWell, how are we supposed to do the calculations?\u201D So Treasury has not defined what a low and middle income earner is, and that just about sums it up. So there needs to be changes there as well. So thank you for the opportunity, Mr Speaker, to speak on this bill. We will look at the numbers very carefully, but we won\u2019t be supporting it. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002202e74c40-9529-4e15-adc2-c032eadc2205\u0022 data-id=\u0022bda8e64789644daa851ebe674b4657b2\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000369\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002202e74c40-9529-4e15-adc2-c032eadc2205\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022bda8e64789644daa851ebe674b4657b2\u0022\u003EGREG O\u2019CONNOR (Labour\u2014\u014Ch\u0101riu):\u003C/span\u003E Thank you, Mr Speaker. This is shaping up as a fairly typical post-Budget day, you know: we propose, they oppose. That\u2019s what we\u2019re doing. I\u2019m happy to be on the side that\u2019s proposing, at this stage, because there are no alternatives. But just in case there are people listening, they\u2019ll listen to the various speakers here\u2014and I\u2019m now following the ACT Party. Now, the ACT Party\u2014there\u2019ll be accusations, there\u2019ll be people yelling meaninglessly across the House, as we\u2019re just hearing now, but I\u2019d just like to quote a little interaction that took place on the radio today\u2014on Radio Live\u2014where one very distinguished New Zealand economist Shamubeel Eaqub was speaking, in fact, with the leader of the ACT Party. And during the leader of the ACT Party\u2019s continual accusations that somehow this Government was responsible for inflation, Mr Eaqub shook his head during most of Mr Seymour\u2019s speech, saying it made him angry to listen to, calling it \u201Ceconomically illiterate\u201D: \u201CIt is not Government spending that is driving inflation. We had the UK hit 9 percent inflation yesterday because there is a global inflation crisis. Yes, we should talk about inflation, yes, we should talk about Government spending but you can\u2019t just tell lies about what\u2019s going on in the economy. [The] whole thing that \u2026 is wasteful Government spending that is causing inflation is simply not true. If you\u2019re ACT you can say there are parts of the spending that we don\u2019t like, and we wouldn\u2019t do that because it doesn\u2019t add value, it\u2019s not efficient. That\u2019s fine. But don\u2019t do it on the basis of what I think we completely wrong to things to say,\u201D Eaqub said to Newshub. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000370\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227e22bb95-9afb-449c-bcd2-de9fd4f2277c\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a2957a26749a48d38cfcdce356a28b3f\u0022\u003EDavid Seymour\u003C/span\u003E: Point of order, Mr Speaker. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000371\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002202e74c40-9529-4e15-adc2-c032eadc2205\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002215ee9fb6d82c4bfba4f8db6c0cd530f6\u0022\u003EGREG O\u2019CONNOR\u003C/span\u003E: So, those who are listening to that\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000372\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d35f32df91a24ce78cee3227eda3e99e\u0022\u003EHon David Seymour\u003C/span\u003E: I hope that Greg O\u2019Connor didn\u2019t mean to accuse me of lying\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000373\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022db8c72399d324e67bb2db3471bd031d4\u0022\u003EASSISTANT SPEAKER (Ian McKelvie)\u003C/span\u003E: In fact, I don\u2019t think he did.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000374\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00223f8c8808c7554e2abe91f671c13da230\u0022\u003EHon David Seymour\u003C/span\u003E: I hope not.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000375\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022c4eb46b5cfe84f2cbc5d46114d21add6\u0022\u003EASSISTANT SPEAKER (Ian McKelvie)\u003C/span\u003E: I think what he did was quoted someone else\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000376\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00222855ed47b8584fd08294f46c45280b21\u0022\u003EHon David Seymour\u003C/span\u003E: Who did, and read it\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000377\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002247d72d8210cc4546ac287ee584c81dd6\u0022\u003EASSISTANT SPEAKER (Ian McKelvie)\u003C/span\u003E: And he\u2019s entitled to quote someone else. He certainly wouldn\u2019t have accused you of lying, himself.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000378\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022f78a0a1a23a747f8b5f0236d19d9fa36\u0022\u003EHon David Seymour\u003C/span\u003E: \u2014into the record, because\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000379\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022241a884302cf4e1ab4696aca293cf9c2\u0022\u003EASSISTANT SPEAKER (Ian McKelvie)\u003C/span\u003E: Order! \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000380\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002297716f2990484274aa20672695f14489\u0022\u003EHon David Seymour\u003C/span\u003E: \u2014the British have spending too.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000381\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002238aa510e620a44c99bc751aeeaf92a82\u0022\u003EASSISTANT SPEAKER (Ian McKelvie)\u003C/span\u003E: That\u2019s enough\u2014that\u2019s enough.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000382\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002202e74c40-9529-4e15-adc2-c032eadc2205\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022e8c9e42d5107425dae79905f8b19d448\u0022\u003EGREG O\u2019CONNOR\u003C/span\u003E: I will never be the only person to do that, Mr Speaker. Anyway, I\u2019m a fairly conservative sort of a chap, and a lot of the accusations here are about the spending today. Going back to when we first had COVID and we were looking at, basically, shutting down our economy, we were looking at giving workers or businesses the wage subsidy, and I struggled to get my head around\u2014I\u2019ll be quite honest\u2014that we could do this, and it would turn out to be the best thing we could have done, not only for health but for the economy. But, actually, it turned out to be absolutely the best thing we could have done, and, even, I think, the greatest detractors of our Government across the other side will think that that\u2019s the case. Now, come forward two and a half years, we are at another crisis, and a crisis that I won\u2019t repeat that\u2019s happening around the world\u2014although I will repeat our economist\u2019s facts about what\u2019s happened in the UK: projected to get to near 11 percent by the end of the year. So we are in another crisis, and we\u2019ve got to look at a pragmatic approach to it, because the losers of that are ordinary New Zealanders. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000383\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002202e74c40-9529-4e15-adc2-c032eadc2205\u0022\u003ENow, those who are going to speak after this, from the other side, just imagine a world where none of these things had happened. Imagine we didn\u2019t have the winter energy payment. Imagine we hadn\u2019t increased benefits. Imagine we didn\u2019t have tax relief at the pump. Imagine we hadn\u2019t halved public transport. Where would we be? The accusations being made across the House there is \u201CGet more money into the hands of New Zealanders\u201D, which is exactly what we\u2019re doing. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000384\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002202e74c40-9529-4e15-adc2-c032eadc2205\u0022\u003EOn a select committee I\u2019m on, we\u2019ve had the shipping companies in, we\u2019ve had the port companies in, and the general belief that the crises we have in supply chains\u2014caused by a shortage of ships, caused by a shortage of containers and, latterly, caused by China\u2019s shutting down their ports\u2014are things that actually can be relatively temporary. The other thing I would ask those who are going to stand up and cast aspersion on this, say: what would happen if the Ukraine war were to end in the next month? I suspect that those petrol prices that we drive past every day would very quickly go down. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000385\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002202e74c40-9529-4e15-adc2-c032eadc2205\u0022\u003ESo this is a world that there are things that could happen, are likely to happen, that actually could have us in exactly the same place as we were after the lockdown, after the wage subsidy in particular that, actually, we\u2019ll look back and say that this was the best thing we did for New Zealanders. In the past, we gave that money to the businesses; now we\u2019re giving it to people. In fact, those that are great believers in the trickle-down theory might just stop and think that maybe what we\u2019re doing here, and what we\u2019ve so successfully done, we\u2019ve actually introduced the \u201Ctrickle-up\u201D theory. So I\u2019m very happy to support this. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022 data-id=\u0022f5d6b912f6914e96a6a32c24c891d7aa\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000386\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f5d6b912f6914e96a6a32c24c891d7aa\u0022\u003EHon PAUL GOLDSMITH (National):\u003C/span\u003E My pleasure to speak on this bill\u2014although not a great pleasure, in the sense that we are not supportive of this bill and we\u2019re not supportive of this Budget. Fundamentally, we don\u2019t think their plan for dealing with the cost of living crisis that New Zealanders face is any good, and our plan would be a lot better. That\u2019s why we\u2019re standing up for our plan, which is actually about leaving more money in the hands of New Zealanders, not using inflation that has been partly created by Government activities, partly by global factors, to sneak more taxes out of the hands of New Zealanders.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000387\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003ESo if this Government had adopted National\u2019s policy of just simply adjusting the tax rates for inflation, Kiwi households on the average income would be $1,600 a year better off. So they\u2019ve taken that extra money from their pockets and then they turn up at the Budget and say, \u201COh, you should very grateful because we may give you a cheap bus fare for two months and possibly a cheap railway fare for a couple of months, and some people will get a winter payment, but if you\u2019re on the average wage, tough luck\u2014you\u2019re not getting anything.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000388\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003ESo if we go back to what this Budget was all about: Labour, I think, up until about a month ago, had their clear plans that the Budget was all about climate change and health restructuring. They\u2019re going to spend a lot of money\u2014billions and billions of dollars\u2014restructuring the health system just as we\u2019re coming out of a COVID crisis, which nobody thinks is a very smart idea, but there\u2019s billions of dollars being spent on all that and, unbelievably, no measures of actual outputs of what we\u2019re going to get which is better for all that money. That doesn\u2019t seem to be an issue at all.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000389\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003ESo they were going to talk about climate change and health restructuring, and then, I think, about four weeks ago, they woke up and thought, \u201CAw heck\u2014aw heck. The issue of the day is actually a cost of living crisis and we haven\u2019t done anything about that. Maybe\u2014maybe\u2014people aren\u2019t so focused on those issues right this moment when they can\u2019t afford to buy a block of cheese and they can\u2019t afford to pay the rent and they\u2019re wondering how they\u2019re going to feed their family and have an opportunity to get ahead. Maybe we might have miscued and maybe the $6 billion of extra spending\u2014the biggest amount of extra spending in the history of New Zealand all focused on other things and not to help New Zealanders deal with this cost of living crisis. Maybe we may have miscued!\u201D and so what we see is, on top of the $6 billion, they suddenly came up with an extra package. I think they scrambled it in very late in the piece\u2014that\u2019s partly why there\u2019s no great deal of information backing up this piece of legislation. So they scrambled it in, added it on top with a little bit of cherry and cream, and said, \u201CThere you go, New Zealanders, you should be happy because we\u2019ll give you an extra two months of cheap bus fares and if you\u2019re very lucky you\u2019ll get a short-term bit of help with winter energy payments.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000390\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EWell, New Zealanders deserve a lot better than that. New Zealanders deserve better than a backwards Budget that is taking this country backwards, back into debt, back into slow growth, and also New Zealand families going backwards where the cost of living and inflation is going forward faster than wages, so that New Zealanders are going backwards. The only thing going forward in this country right now is those stolen vehicles driven by 11-year-old kids, ram-raiding shops up and down the country. That\u2019s the only thing that\u2019s going forward!\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000391\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThis Government has just missed so many opportunities to help New Zealanders. You don\u2019t see anywhere, in any of the Budget material, is a plan to get the country growing more quickly, to actually generate more money; it\u2019s all about restructuring and redistributing money from those who work. Nowhere do you see\u2014apart from a slimmed-down version of Shane Jones\u2019 original growth plan, which I have no confidence will be well thought through or anything like that\u2014anything about the regulatory reform, the plan for growth that New Zealanders need to get ahead. The recipe for that is pretty simple, it always has been the same, which is to provide a stable, predictable environment where people feel confident to invest, where they know that the rules aren\u2019t going to be changed underneath them all the time, and where they\u2019re not overtaxed and over-regulated so that New Zealanders can get ahead and actually back themselves to succeed globally.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000392\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EAll we hear in this backwards Budget is more costs, lots of money being spent, and no accountability for the outcomes. That\u2019s why this bill is not what we need. National has got a better plan which would leave more money in the hands of New Zealanders\u2019 pockets.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00221ebd1031-ea10-4c3d-bb56-2cd99528ae91\u0022 data-id=\u0022699fe43f802641508333840a366ff83e\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000393\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221ebd1031-ea10-4c3d-bb56-2cd99528ae91\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022699fe43f802641508333840a366ff83e\u0022\u003EWILLOW-JEAN PRIME (Labour\u2014Northland):\u003C/span\u003E E te M\u0101ngai o te Whare, t\u0113n\u0101 koe. Thank you for the opportunity to speak after our finance Minister just delivered a wonderful Budget. I\u2019m really proud of the tough job that he has balancing everybody\u2019s wants and needs, and we are here in the Chamber this afternoon, passing the first piece of legislation, under urgency, to give effect to those Budget announcements.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000394\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221ebd1031-ea10-4c3d-bb56-2cd99528ae91\u0022\u003EWe are here debating the Taxation (Cost of Living Payments) Bill. I take this opportunity to take the M\u0101ori Party\u2019s call this afternoon. This particular bill is so that we can give effect to the announcement that we will be introducing a payment of $350 to help middle-income people cope with the current inflationary pressures. I have heard from my constituents about the impact that the cost of living is having on them and their wh\u0101nau and so I know that this announcement today is going to make a real difference for those wh\u0101nau. That is on top of the package that we already introduced, and have been implementing, on 1 April, which boosted support for families through Working for Families, the family tax credit, Best Start, and expanding childcare assistance. It also boosted the student allowance and the student loan living costs. We\u2019ve also lifted the minimum wage, reduced the cost of fuel, and increased superannuation, and we have kick-started once again the winter energy payment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000395\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221ebd1031-ea10-4c3d-bb56-2cd99528ae91\u0022\u003EToday, those who are not receiving any of those things I have just mentioned, which is approximately 2.1 million people, will be eligible for a payment of $350. The income cap for that is $70,000. The reason that is the cap is because that is around the average annual wage, and I have heard from people who have contacted me about what we\u2019re doing for those on middle incomes. This is what we are doing to help you, who, we know, are also impacted by the cost of living crisis. Approximately 2.1 million people are going to benefit from today\u2019s announcement once we pass this legislation through the House this evening.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000396\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221ebd1031-ea10-4c3d-bb56-2cd99528ae91\u0022\u003EOne thing I want to add to that is that there will be no application process. That\u2019s one of the things that I often find when we make these announcements\u2014people straight away ask where they apply and what they have to do. The Inland Revenue Department are going to be able to use the information that they are already able to gain, under the authority they have, to be able to determine those who will be eligible for the payment, and it will be processed.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000397\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221ebd1031-ea10-4c3d-bb56-2cd99528ae91\u0022\u003EI don\u2019t want to prolong this contribution in the first reading. We\u2019ve got plenty to get through over the course of this evening and possibly tomorrow. So with that, I commend the bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002296f5f6b7-c116-477e-88a9-ea17aa616886\u0022 data-id=\u0022d417bf5d90834338bfcd2c7f5651f603\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000398\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002296f5f6b7-c116-477e-88a9-ea17aa616886\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022d417bf5d90834338bfcd2c7f5651f603\u0022\u003EINGRID LEARY (Labour\u2014Taieri):\u003C/span\u003E I received emails and Facebook messages this afternoon from Gina, Zaha, David, and Ahman\u2014I hope I pronounced that correctly\u2014saying thank you to Grant Robertson for the cost of living payments. I said I would pass their thanks on because they are constituents in my Taieri electorate in South Dunedin and South Otago who will benefit from these cost of living payments, who have felt pressure from the cost of living because 37 percent of people in my electorate over the age of 15 earn between $10,000 and $30,000, and only 13 percent earn more than $70,000. So this $27 a week will mean much more than the proposed tax cuts by the National Party. My constituents, many of them in that bracket will get $350 per adult in three monthly payments from 1 August. They are the people who are earning under $70,000 who don\u2019t qualify for the winter energy payment. So that is getting money where it is really needed, and if we put that together with those who do get the winter energy payment across New Zealand, that equals 81 percent of people receiving targeted support. That\u2019s 2,136,000 people. So that is part of a plan that we have to take away the short-term pressure that has been caused by short-term inflation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000399\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002296f5f6b7-c116-477e-88a9-ea17aa616886\u0022\u003ELet\u2019s look at what National\u2019s plan is. Well, it doesn\u2019t actually have a plan apart from tax cuts for the rich. So their plan would give about $2.50 a week in tax cuts for the lowest-paid workers, $18,000 for leader Chris Luxon if he was to become Prime Minister, and a $270,000 tax cut for Mr Luxon had he still been the chief executive of Air New Zealand.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000400\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022dd5e297bf650485a9b14d7eac5fcc64f\u0022\u003EHon Member\u003C/span\u003E: Per annum.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000401\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002296f5f6b7-c116-477e-88a9-ea17aa616886\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d152402ecd724482b0c9dfd4a9d8487d\u0022\u003EINGRID LEARY\u003C/span\u003E: Now, that\u2019s per annum\u2014that\u2019s right. And if they had to go into Government with ACT, which is highly likely, they would have to freeze the minimum wage because it\u2019s what David Seymour has said, and reverse climate change initiatives. We know that climate change is the biggest existential threat that we have at the moment. They would reverse that, and Mr Luxon has not ruled out actually abolishing several of the ministries that serve our people, including the Human Rights Commission, Ministry for Women, Ministry for Pacific Peoples, Ministry for Ethnic Communities, and Ministry of M\u0101ori Development\u2014all ministries which have received funding in today\u2019s Budget to make sure that we leave no New Zealanders behind. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000402\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002296f5f6b7-c116-477e-88a9-ea17aa616886\u0022\u003EI am proud and congratulate Grant Robertson for this balanced Budget because he\u2019s done this in an environment where the global economy has been volatile. We\u2019ve seen inflation in the UK shoot up overnight to 9 percent. That\u2019s a 40-year high. But with his prudent fiscal management, he has been able to continue to put people first. We can support low and middle income New Zealanders, and that is also from the work that all New Zealanders have done to pull together during COVID to make sure that we keep New Zealand going, and I really want to thank all New Zealanders for doing that. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000403\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002296f5f6b7-c116-477e-88a9-ea17aa616886\u0022\u003EThe fourth Wellbeing Budget talks about a secure future. It\u2019s a long-term approach. It takes a long-term approach to health and climate, but we have seen these cost of living pressures on people. It is not stagflation, and anyone who doesn\u2019t believe me, just look at the Reserve Bank report and their appearance in front of our Finance and Expenditure Committee meeting last week where stagflation was asked about repeatedly. They said it is on their radar; it is not currently a threat to New Zealand, and anybody who tries to say that is talking it up. These are temporary pressures and they need swift and temporary solutions, and that\u2019s what we\u2019re doing by passing this legislation under urgency so that we can get money into the pockets of New Zealanders to make a difference as quickly as possible. That\u2019s 1 August and that will be targeted support, along with the two-month extension to the fuel tax cuts, there is also the extension of half-price public transport, and for those people on community service cards\u2014and there are many, many in my electorate\u2014they will be able to use their Community Connect, which means they will permanently get half-price public transport.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000404\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002296f5f6b7-c116-477e-88a9-ea17aa616886\u0022\u003EThat is going to be an absolute game-changer for people in my electorate, people have lobbied me for many months saying, \u201CPlease, can I have changes to public transport.\u201D so they can get out and about. It will help their wellbeing. It will help them studying at the university. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000405\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002296f5f6b7-c116-477e-88a9-ea17aa616886\u0022\u003ESo to those people who contacted me this afternoon, thank you so much for passing on your good wishes to our Government. I just wanted to share that with the House tonight and to say congratulations to Grant Robertson for an excellent Budget in a very difficult time globally.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022 data-id=\u00226df48fe49cb24c85bb0e5095d9f4e359\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000406\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226df48fe49cb24c85bb0e5095d9f4e359\u0022\u003ESIMON WATTS (National\u2014North Shore):\u003C/span\u003E Thank you very much, Mr Speaker. It is a pleasure as the member of Parliament for North Shore and part of the National Party to talk on the Taxation (Cost of Living Payments) Bill first reading.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000407\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EFor those watching at home, we\u2019ve only received this bill within the last half hour to 45 minutes or so, so you will appreciate that most of this is pretty new. But when you look through this bill, this Government has had a significant amount of time to put together a piece of legislation to deal with a cost of living crisis that has been impacting Kiwis across this country for a very long time. But when you get into the detail of this bill\u2014and I\u2019m looking forward to future stages, and I look across there to the Minister Parker\u2014there has not been much detail done on this bill. And that indicates to me\u2014it indicates to those watching at home and those stakeholders who have not been consulted on this bill\u2014that this has been put together in a rush. These guys are panicking. They are seeing the numbers on the walls, they can see the polling data, and they have worked out, \u201CSurprise, surprise, we\u2019ve got nothing in our tool kit which deals with the cost of living crisis.\u201D And that is a big issue for them.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000408\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003ESo what is their solution? Well, you\u2019d think, let\u2019s do something of substance. Let\u2019s do something that\u2019s actually going to impact those individuals across this country that are just so heavily impacted, those ones that are struggling to pay their mortgage as a result of interest rates increasing by 2 percent, those that are paying a lot more at the pump or those that are paying a lot more for food when they do their weekly shop with groceries. So what this Government have decided to do is they\u2019ve decided to do a bit of a lolly scramble, a bit of a sugar hit, and say, \u201CHere you go. Here\u2019s $27 a week, $350 one-off, that\u2019s it. By the way, we\u2019re going to take away the other benefits we\u2019ve given you around extending the fuel excise and halving public transport fees probably in the future. We\u2019ll do this as a bit of a carry over and good luck.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000409\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EWell, I tell you what, I\u2019ve probably only had about 45 minutes to look at this bill, but I\u2019ve had enough time to look at a one-way flight to Sydney, and you know how much that is, Mr Speaker? On 1 August, when this bill comes into effect, it\u2019s $300. So I tell you what, they\u2019ve got $50 to buy a packet of cashew nuts when they get to the shop at Auckland Airport before they leave this country in the brain drain which will result because Kiwis no longer have confidence in this country being able to deliver for them, and that is because of that Government over on that side.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000410\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EI tell you what, for the ones that decide not to leave to go to Australia on 1 August, they\u2019re going to use this money to buy 9 litres of petrol every week for their Toyota Corolla. That\u2019s all it pays for: 20 percent of a tank of fuel. That is absolutely nothing for these things. Or maybe they might decide, \u201CI\u2019m going to go into the supermarket, and with my $27 I\u2019ll buy one block of tasty cheese and I\u2019ll buy 3 litres of milk.\u201D That is it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000411\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EAnd when you look at the criteria of this bill\u2014and I can tell you what, this Government have not done the detail, and I\u2019m not surprised, because they are not over the detail. They do not have the capability in this space, and it is coming out of this bill like you would not believe. The criteria is pretty much undefined. I\u2019m looking forward to the future stages to be able to question the Minister around, actually, what information does Inland Revenue have in order for them to be able to assess the criteria for these payments to be made by 1 August? I\u2019ll let you in to a little bit of a secret: they haven\u2019t got all the information required in order to make those payments by 1 August. That\u2019s why they\u2019re waiting for 1 August, because they can\u2019t make it happen tomorrow. They have not got all the criteria and information and the data required, and that is because they\u2019ve just worked out this policy pretty much last week. That is the type of lack of planning from this Government, and this bill personifies the attitude on that side of the House of a Government out of touch; a Government not willing to listen to Kiwis. They haven\u2019t even consulted on this taxation bill with people outside of Government. What is going on? It is a band-aid Budget, and Kiwis are going backwards.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000412\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EI had a look at the eligibility, and, of course, you have to, according to this\u2014and I\u2019ll go into a little of that later on\u2014earn under 70 grand a year to qualify. Well, there is 495,000 Kiwis who earn between $70,000 and $100,000. And what about that point that was made by the ACT member before around the fact that \u201Clow to middle income\u201D has not even been defined by Treasury? This is an absolute scam. It is not dealing with what the title of the bill says around impacting and benefiting low to middle income New Zealand. It excludes a whole lot of people. The criteria, actually, will end up to say that, actually, a large number aren\u2019t going to get it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000413\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EAnd then they have to work out both New Zealand tax resident and present in New Zealand. So what does that mean? Does that mean I can\u2019t go on holiday for three months? Does that mean if I\u2019ve all of a sudden gone over to Australia on the day that this is eligible, I can\u2019t get the payment? Have you seriously thought through this bill? No they haven\u2019t; they\u2019ve made it up last week. That is what\u2019s happening in this country.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000414\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EWe have got a Government that is making up as they go along. And you know what? That is such a huge disgrace for my children and for my grandchildren that will inherit the significant amount of growing debt by this Government, sitting around 41 percent before you adjust it to the lower number that looks a lot better. They are going to inherit that. Total borrowings have clicked over $200 billion. That is the legacy of a Government who are spending like there is no tomorrow. That is the legacy of a finance Minister\u2014Grant Robertson\u2014who is addicted to spending. And you know what? When you\u2019re addicted to something, you can\u2019t get off it. And he is going to keep on spending all day long. And that is a real concern. That is a concern for hard-working Kiwis like the people in my electorate of the North Shore, or down in Southland at the bottom of the South Island, or Invercargill or in Auckland Central or wherever you are across the country\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000415\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00224001802a7177441cb020cc3d81820177\u0022\u003EHon Carmel Sepuloni\u003C/span\u003E: What about South Auckland and West Auckland, are they hard-working as well?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000416\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00225dc95c7cb53d4895b3b13ec0c56569f3\u0022\u003ESIMON WATTS\u003C/span\u003E: \u2014because those Kiwis are hard-working and they are not going to benefit.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000417\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EAnd, of course, I can hear the Minister over there yapping on about something. I can\u2019t hear her in detail, but I\u2019ll read the criteria, because who are not eligible or qualify for this payment, of course, include sole parent support, those on the jobseeker support, student hardship, emergency benefit, superannuitants, all those individuals are excluded from this $27 a week payment. So on the outside, this looks like a really nice thing to do, but I tell you what, when you scratch the surface\u2014like what you do when any of you, any time you scratch the surface on this Government\u2019s policy\u2014the truth comes out. And what we can see is this is a policy that is not going to deliver the benefits required for middle New Zealand and those that are squeezed so hard.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000418\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EWhat is so disappointing is, again, the fact that this has been so poorly planned. And we have had a long opportunity and chance in order to be ready for today. It is no surprise that we face a cost of living crisis in this country. We have had ample opportunity to consult, to engage, to listen, to be informed by Kiwis in terms of what they are facing in terms of the challenges that they face day in, day out. But have that side of the Government used the time that they have been given to do the simple task of getting out of their offices in Wellington and listening to hard-working Kiwis? Well, the simple answer is no. And this bill proves the fact that they have not done their job.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000419\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EWe\u2019ve mentioned in terms of where we could be today if they had only taken on some of the advice around National\u2019s economic plan: a plan that takes into account fiscal responsibility, a sensible and pragmatic plan that puts money in the back pockets of hard-working Kiwis, a plan that will actually benefit those across this country who are contributing a significant amount. But they have squandered that opportunity, and that is a great, great issue in itself.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000420\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EI want to end with a fact that the spending today was in the region of $6.5 billion of increased spending\u2014increasing to $7.5 billion next year. That is an absolutely horrific scale of expenditure. And the challenge is that will not deliver the outcomes that Kiwis in this country deserve, and that\u2019s why National oppose this bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022 data-id=\u0022f089e5bf1c0e4777a7ce94de11ed1cde\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000421\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f089e5bf1c0e4777a7ce94de11ed1cde\u0022\u003EGINNY ANDERSEN (Labour\u2014Hutt South):\u003C/span\u003E Getting a lecture from National on the cost of living feels a bit like getting tips on frugal living from the Kardashians. I struggle to take it seriously.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000422\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EI definitely struggle to take it seriously because this bill provides here-and-now support for those people facing a cost of living crisis in New Zealand. It provides $350 in the pockets of middle New Zealanders over this winter and that is what is needed right now. I would like to acknowledge Grant Robertson for delivering a fantastic Budget that delivers right now what we need and continues New Zealand on the right track. Our economy is one of the strongest in the world, with a triple A credit rating, record low unemployment, and lower debt right now than Australia, Canada, the United States, and the United Kingdom.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000423\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EHowever, despite those positive results, we know that global inflation pressures are hurting New Zealand families right here, and the world remains an uncertain and volatile place. That is exactly why Budget 2022 provides further relief to those on lower and middle incomes in New Zealand to help pay for food, to help pay for petrol prices, and to help pay for energy bills until inflation is brought back under control.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000424\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003ESo what is National\u2019s plan that we\u2019ve heard so much about? National\u2019s plan is to point to the global phenomenon of inflation and blame the Government for that and to say quite a lot about fiscal discipline\u2014a lot\u2014but will not actually say what they\u2019ll do about it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000425\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EBut I\u2019ll tell you what: you only have to look back on National\u2019s track record in the history of New Zealand to see what they do. They cut health, they cut education, they cut housing, and they cut welfare into those areas. What they do is what they\u2019ve said already: put money in the pocket of those top brackets of New Zealanders. Offer no real solution except for tax cuts\u2014that\u2019s all we\u2019ve heard.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000426\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EAn interesting fact is that money\u2014that $350 that we\u2019ve heard today in the House that will not buy very much\u2014is still far in excess than what that family would receive under a National programme of tax cuts. It is far more than what they would receive under that programme.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000427\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003ESo it\u2019s a sad thing today that those members opposite will vote against a bill that provides here-and-now support for middle New Zealand families, and I find it quite trite that they vote against that and still cry aloud. The payment is a temporary measure to provide short-term support for those individuals who earn up to $70,000 in the tax year who are not receiving the winter energy payment already.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000428\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EThe income cap of $70,000 has been set to provide for those who provide around the median wage of $65,000 a year. The group we\u2019re targeting is specifically those who are less likely to have had those increases on 1 April that have already come into force, and to provide more help for those who haven\u2019t been able to receive Working for Families and the increases in the minimum wage.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000429\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EApproximately 2.1 million people will be eligible for the payment and that\u2019s a significantly large amount of New Zealanders. The total payment of $350 will be split into three monthly payments of around $116 each, beginning on 1 August, and will be paid by the Inland Revenue.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000430\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003ENow, we know for a fact there is no silver bullet fix to inflation and the rising cost of living in New Zealand. But we are taking a range of actions. We\u2019ve cut fuel tax to provide immediate relief for Kiwis as the war in Ukraine drives up prices. From 1 April, we\u2019re increasing support for families, pensioners, and students, and, in May, our winter energy payment restarts, giving the 1 million people an extra boost to help with their heating bills.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000431\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EFrom the day we came into Government, we\u2019ve worked hard to lift wages, to reduce cost pressures on Kiwis through measures like cheaper doctors visits, free lunches in schools, and a family tax credit. I\u2019m proud to be a part of a Government that delivers a Budget that keeps New Zealand on the right track and provides the support to those people who need it the most.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000432\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EI commend it to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u0022fa2d9d3fb6eb40d58343fcfd40e1185f\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the Taxation (Cost of Living Payments) Bill be now read a first time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 65\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000433\u0022\u003EBill read a first time.\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000434\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u002232fd87cd43154171bba3937967d7d9bf\u0022\u003ESecond Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u002278fc62c32c5143b4bd676908c0c144c5\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000435\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002278fc62c32c5143b4bd676908c0c144c5\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E I move, That the Taxation (Cost of Living Payments) Bill be now read a second time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000436\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EI\u2019m going to start with a quote from Audrey Young on Budget 2020: \u201CRobertson\u2019s $1 billion cost of living package, including a $350 payment for those earning under $70,000, to address immediate inflation pressures is a good one and well-designed, politically. It is hard to see how the National Party could oppose it (although it will) when cost of living pressures consumes its political agenda these days. Labour\u2019s Budget measure of payments is targeted, it gives the lower-paid more than National\u2019s\u201D\u2014[Interruption] Sorry, I\u2019ll say that again for the member: \u201CLabour\u2019s Budget measure of payments is targeted, it gives the lower-paid more than National\u2019s tax-indexation plan, and it is temporary \u2026 The Budget cements Robertson\u2019s credentials as careful economic manager, for good times and bad, the Goldilocks manager: not too much, not too little.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000437\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIt\u2019s so hard when you\u2019re a member of the National Party, born to rule but languishing on Opposition benches, completely irrelevant, not even able to implement their flawed economic plans. They\u2019re left with jingoistic messages and misrepresentation of both the current state of the economy and their own history over the years. You know, the National Party seems to always forget that average growth rates under Labour administrations compared with under National administrations\u2014Labour does better. This is not just the short-term average; this is an average that goes back to World War II. Since World War II, growth rates are better under Labour administrations than they are under National administrations.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000438\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EThe tone of gloom from those depressing, if irrelevant, speeches from the National Party in the first reading\u2014it ignores the fact that we\u2019ve just had two triple A credit ratings from the top credit rating agencies in the world. Did you hear the National Party make any reference to that? No, no. Unemployment rate\u2014did you hear them celebrating historically low unemployment rates of 3.2 percent per annum? No\u20143.2 percent unemployment rate, historically low in New Zealand, and the National Party cannot acknowledge or celebrate it. They talk about Government debt\u2014Government debt\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000439\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b7a0abb735d747d09535607d0ee8b0c8\u0022\u003EHon Paul Goldsmith\u003C/span\u003E: What\u2019s this got to do with the bill?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000440\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022869b9a4b347948ed87227d6c4be972f8\u0022\u003EHon DAVID PARKER\u003C/span\u003E: What\u2019s this got to do with the bill? Well, it\u2019s got as much to do with the bill, Mr Goldsmith, as it had in your contributions from your side when you rattled on about Government debt, which in New Zealand is half the rate of Government debt as a percentage of the economy in Australia, a quarter of that of the United Kingdom, and a fifth of that of the United States. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000441\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EThen they said\u2014and this is to quote one of the last speakers for the National Party\u2014\u201Cspending like there\u2019s no tomorrow\u201D, \u201Caddicted to spending\u201D, \u201Ca horrific scale of expenditure\u201D. This sort of exaggerated rhetoric from the National Party falls on deaf ears amongst the public because they know it\u2019s not right. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000442\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EI thought I\u2019d drag out the record of the National Party under Bill English and their expenditure as a percentage of GDP compared with the expenditure of this Government in this Budget as a percentage of GDP. This Budget projects expenditure of 31.6 percent of GDP. How does that compare with the National Party\u2019s expenditure? Quietness from the other side. Perhaps they\u2019ve forgotten. I\u2019m quite happy to remind them: 2009-2010, 32.3 percent. They\u2019ll say, \u201COh well, that\u2019s just after the Labour Party left office.\u201D OK, fair enough. What happened the next year? It went up: 34.1 percent of GDP compared with this year, 31.6 percent of GDP.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000443\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EI see the Speaker wants me to come back to the bill. I will do\u2014I will do. This bill promises 2.1 million New Zealanders a payment of $350 each, spread over three months. This will help New Zealanders facing cost of living pressure. It is very, very good. It\u2019s equivalent to $27 per week over that period, and it\u2019s much more than the National Party\u2019s alternatives that they have been speaking of. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000444\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EThe legislation is necessary because at the moment the revenue department has not got the ability to use information that it holds for tax return purposes, like bank account numbers, for the purposes of this payment of $350. We want to get this payment out to people as soon as we can, and, in order to do that, we\u2019ve got to give the revenue department the powers that they need to do it. There are a number of technical amendments that are made through this legislation, which I have no doubt that we will have a discussion about in more detail in the committee of the whole House stage. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000445\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EFar from spending like drunken sailors, as has been alleged, we have a very balanced Budget here, although it\u2019s primarily focused on expenditure in the health sector. There is cost of living support here\u2014a package that totals $1 billion, the largest part of which is $800 million, which relates to this $350 per person paid to over 2.1 million New Zealanders. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000446\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EI find it absolutely astounding that the National Party, after all of their rhetoric about being on the side of the pressed middle, is opposing this legislation\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000447\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fdb01002-a7cf-4a77-8f05-678d24a36849\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022c8aa6adf779148b3bd92e797387383d3\u0022\u003ETodd Muller\u003C/span\u003E: Squeezed middle.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000448\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00227faa34137eeb49f7abc679760f21e7d0\u0022\u003EHon DAVID PARKER\u003C/span\u003E: The squeezed middle\u2014the squeezed middle. And they are squeezed by inflation. We agree with that. The Budget projections show that, in out-years, wage growth again exceeds inflation. Of course, in the Labour Party we don\u2019t have a problem with people getting wage increases, which the National Party seems to squeeze when they\u2019re in Government and have very low rates of wage growth. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000449\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003ESo I commend this bill to the House in the second reading and look forward to the committee stage\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u002215fa70c3ce934838b23574df9129b205\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000450\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002215fa70c3ce934838b23574df9129b205\u0022\u003EASSISTANT SPEAKER (Ian McKelvie)\u003C/span\u003E: Members, the time has come for me to leave the Chair for the dinner break. The House will resume at 7 p.m.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000451\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003ESitting suspended from 6.02 p.m. to 7 p.m.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022 data-id=\u0022ad3ecb40004a481d8a8552603441b3df\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000452\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022ad3ecb40004a481d8a8552603441b3df\u0022\u003EHon PAUL GOLDSMITH (National):\u003C/span\u003E Well, thank you, Madam Speaker. Thank you for the opportunity to speak. We\u2019ve had the dinner break. We\u2019ve all watched the news and reporting of this Budget, which has flocked across the country. The previous speaker referred to Audrey Young\u2019s glowing reference to the \u201CGoldilocks Budget\u201D. I\u2019m afraid, being the true Goldilocks around here, that Audrey was a bit off beam there and what we\u2019ve seen, actually, throughout the rest of the country is an incredulity that this Government could take so much money off the hands of New Zealanders with extra taxation, with proposals for a new jobs tax coming around the corner, and then expect everybody to be happy with $350\u2014to some people. Some people have been unkind enough to suggest that\u2019s about almost an economy flight to Sydney to start a new life in a place where hard work and enterprise gets better shrift than it does under this Government. And so we\u2019re absolutely focused on the cost of living crisis. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000453\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThere\u2019s been no debate in this House this evening around the issue facing all New Zealanders, and that is this cost of living crisis that New Zealand families are facing, the difficulty of funding their way through to pay for the food on their table, the gas in their tanks, and to make ends meet. The only difficulty, and, I suppose, the only complication, is that the members of this Government, the Ministers in this Government, and the backbenchers who are sitting over there hanging their heads wondering about what their future is going to be\u2014the only surprising thing was that those people, those 50-odd New Zealanders, were the last people to wake up to the fact that there was a cost of living crisis in this country and that\u2019s what people were focused on. And so their plans for this Budget all along were to focus on climate change and the biggest health restructuring in the middle of a COVID crisis. And that was the plan for the Budget and it was all sweet. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000454\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThen, about three or four weeks, maybe a couple of months, ago, perhaps related to the publishing of some polls\u2014I don\u2019t know\u2014the Government suddenly woke up and thought, \u201CHeck, we haven\u2019t done anything about that that, in any remote way, addresses the issue of the day, which is the issue that is most in front of mind of all New Zealanders: how do we actually make ends meet? How do we deal with the fact that prices are going up everywhere and it\u2019s harder to make a living and it\u2019s harder to keep food on the table?\u201D There was nothing really planned, and so they threw together this last-minute piece of legislation that we\u2019re dealing with today, which, along with a couple of cheaper bus fares for a couple of months, and another couple of months trying to deal with the issue of petrol prices and diesel prices, which will all be welcomed\u2014but all they\u2019re doing is applying a band-aid on to a much deeper, long-term situation, which is the fact that inflation has got out of control in this country and that New Zealanders are going backwards under this Government, and inflation, the costs of goods are going up faster than wages. Therefore, as everybody can see, everybody can understand\u2014it\u2019s as obvious as the nose in front of your face\u2014New Zealanders have been going backwards under this Government. As I said in the previous speech, the only thing going forwards is the stolen cars driven by 11-year-olds into ram raids. That is not what New Zealanders are hoping for or looking for, and they\u2019re looking for a Government that understands the importance of having a strong economy, fighting inflation, and ensuring that wages are going faster than inflation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000455\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003ESo this legislation comes in and brings in a $350 payment. That\u2019s their plan. That\u2019s their belated plan to deal with the cost of living crisis, and we are voting against it quite simply because we think our plan is better. Our plan is to leave more money out of the pockets of New Zealanders, not take like this Government is doing sneakily. Every week, every month, this Government is stealthily putting up taxes. They\u2019re increasing taxes because they are not adjusting the tax thresholds for inflation. And over the course of a year it adds up significantly, to the extent that the average household on an average income have had $1,600 dollars a year of extra taxes taken off them by this Government to fill Grant Robertson\u2019s insatiable hunger for more tax revenue. This Minister, this Government, Grant Robertson has been the most rapacious tax collector in this country\u2019s history. I thought nobody would ever beat Michael Cullen, but he has. There is never enough tax for this Government because they will always spend more, and we\u2019re always going to be left with larger deficits and they\u2019re going to be wanting to spend more. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000456\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003ENow, New Zealanders can, quite rightly, look at this situation and say, \u201CWell, there are some things that we could usually spend more money on, but it\u2019s just a pity that there is no connection between the spending and the delivery in this Government, and that\u2019s the slight problem.\u201D And so when they see the billions of dollars that are going to be thrown at the health system, there is no confidence that it will lead to better outcomes, because we all looked, two years ago, to $1.9 billion promised on mental health and there has been no actual improvement in the services available to people who need the mental health work in so many areas. So people are rightly sceptical of the potential for actual progress from all the money that has been spent. Everybody agrees that New Zealanders are doing it tough right now. Everybody agrees that we need to put more money into the pockets of New Zealanders so that they can deal with the rising prices and cost of living crisis. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000457\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThe difference is that on our side we believe that actually a very simple way to start is to stop taking quite so much money in the first place and not use inflation to stealthily and sneakily take more taxes from New Zealanders, as this Government has. That\u2019s our proposal. This Government, instead\u2014\u201CNo, no. We\u2019re going to keep on putting taxes up. Every month, every year, we\u2019ll just sneak a little bit more. We\u2019ll use inflation.\u201D That\u2019s why tax revenues are flooding into this Government. \u201CWe\u2019re going to use it all and spend it\u201D\u2014on a very poor quality spend most of the time. \u201CAnd in the meantime, because we\u2019re a little bit worried about the broader issue, we\u2019ll extend the cheap bus rides for an extra couple of months and we\u2019ll extend the winter payments for $350. And if you\u2019re earning the average wage in this country, tough luck. You\u2019re too rich. We\u2019re not interested in you.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000458\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThat is not the message that New Zealanders want to hear. It\u2019s not the messages that we need to be hearing in this country. That\u2019s why we won\u2019t be voting for this band-aid economics that the Labour Government seems to have picked up. Throw a little bit of sugar around for a few months, hope for something to turn up, and kick the can down the road. I don\u2019t know how Mr Robertson and his team are going to wind up all the extra help on the diesel and the petrol. It\u2019s going to be interesting. When it comes to an end in a couple of months, what are they going to do? That\u2019s going to be quite difficult for them. The point is what they\u2019re not prepared to do is to give back some of the taxes that they keep on taking from the pockets of New Zealanders. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000459\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003ESo he\u2019s clearly thrown this together at the last moment just before the Budget to deal with the issue of the day, which hadn\u2019t really been on their radar up until then. They\u2019ve been focused, as I said, on a massive health restructuring that continues to leave the whole health sector in a state of complete chaos in the middle of winter when we\u2019re dealing with COVID. If we think of, even, the Upper Hutt Hospital situation, the people that are supposed to be dealing with it are about to lose their jobs\u2014they\u2019re about to lose their jobs and they\u2019re supposed to be dealing with a health crisis. They\u2019re going to be replaced in six months and there\u2019ll be a whole lot of emails in the inbox of this new organisation for some manager that will appear from somewhere, and they\u2019ll have to figure out what\u2019s going on while everybody else has left the room. So it\u2019s a bizarre situation there and that\u2019s where most of the new money in this Budget has gone: into feeding this great beast; the most ill-timed restructuring that you could possibly imagine. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000460\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EAnd in the meantime, the Kiwis who are doing it tough in Kait\u0101ia, in Whang\u0101rei, in Huntly, in places all around the country, looking at the price rises, going up, looking at all the pressure that they\u2019re under in their households, particularly the hard-working families who are both working hard, getting an average income in New Zealand, getting 70,000, 80,000 bucks a year, working hard, trying to provide for their family, feeling like they\u2019re not getting ahead because of the increased rents that they are having to face. Rents have gone up substantially under this Government.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000461\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00224028868ac431456a85b0a6223f542075\u0022\u003EChl\u00F6e Swarbrick\u003C/span\u003E: Shall we do rent controls, Paul?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000462\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022addc073dc57d429fac7545f52d3dfb7c\u0022\u003EHon PAUL GOLDSMITH\u003C/span\u003E: They\u2019ve\u2014pardon me?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000463\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00223e499b99472845a4998c26b0807ba638\u0022\u003EChl\u00F6e Swarbrick\u003C/span\u003E: Shall we do some rent controls, then?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000464\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a18221a8f6ff41cca9c6f0f5d40809c2\u0022\u003EHon PAUL GOLDSMITH\u003C/span\u003E: Well, that\u2019s a typical response from the Greens. Rather than deal with the driving causes of the housing going up, all the costs that they\u2019ve added on, the idea that they\u2019re suddenly had, that if you pile costs on to those who provide the housing, there is perhaps the slight possibility that some of those costs will be passed on to the renters! That seems to be beyond their logic to understand that that is a possibility: if you add a whole lot of costs on to landlords, there is a slight possibility that some of those costs will be passed on to the renters. That, indeed, is what\u2019s happened. They spend their whole time advocating for more costs, and then they complain about the fact that the price goes up, and then the solution to it is to put some rent controls on. I mean, there goes the Greens. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000465\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EIt\u2019s a funny thing for this Government that their coalition partner, the Greens, couldn\u2019t even bring themselves to vote for this legislation. So we\u2019ve just had the Budget and they\u2019ve stood there and they\u2019ve said, \u201COh, how wonderful we are. We\u2019re a Government with the Labour and the Greens.\u201D, but the Greens aren\u2019t voting for the first piece of legislation that they\u2019ve brought through. That\u2019s how muddled this Government is.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022 data-id=\u0022c2c1f2f71504435ab5ec8ee9e82b0cf2\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000466\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c2c1f2f71504435ab5ec8ee9e82b0cf2\u0022\u003EASSISTANT SPEAKER (Hon Jenny Salesa)\u003C/span\u003E: Order! Order! The member\u2019s time is up. Before I call the next speaker, may I ask the member of the ACT Party to take his pink box off the desktop, please.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000467\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022ed464d21b6de4b6cb9549353653351f4\u0022\u003EChris Bishop\u003C/span\u003E: He\u2019s not the leader.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000468\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022f8eeeb0813b947c3a3a0ce46c51a956e\u0022\u003EDamien Smith\u003C/span\u003E: Sorry, Madam Speaker.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000469\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002245650f5dc9bf423f893720d124b9e1f8\u0022\u003EASSISTANT SPEAKER (Hon Jenny Salesa)\u003C/span\u003E: I said the \u201Cmember\u201D, not the \u201Cleader\u201D.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022aed260be-c954-464b-bb75-85579e53d05a\u0022 data-id=\u0022327680f85ca345579c00f3f7f87d349a\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000470\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aed260be-c954-464b-bb75-85579e53d05a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022327680f85ca345579c00f3f7f87d349a\u0022\u003EHon Dr AYESHA VERRALL (Minister for Food Safety):\u003C/span\u003E It\u2019s a pleasure to take this call on the Taxation (Cost of Living Payments) Bill and be the first Government speaker after the dinner break on this Budget day.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000471\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aed260be-c954-464b-bb75-85579e53d05a\u0022\u003ELook, we\u2019ve all had the chance in the Labour Party to partake of some KFC with our colleagues from the Greens and Te Paati M\u0101ori, but the Opposition, instead, decided to go and have a peek at what the major news outlets had to say about the Budget instead, and we heard that in Paul Goldsmith\u2019s comments. They would\u2019ve been disappointed to hear Newshub describe the Budget as a masterstroke by the Government and that the Opposition has been backed into a corner, and indeed they have been. They\u2019ve been caught flat-footed by the cost of living package in this Budget. Here they are voting against a bill that will see $350 paid to low and middle income families over the coming months. It will do a lot to address the pressures that people are under, alongside the measures to support free, reduced costs public transport, the winter energy payments, and our actions on fuel costs.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000472\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aed260be-c954-464b-bb75-85579e53d05a\u0022\u003EThis Budget is about protecting our security as a nation, and it extends the Labour Government\u2019s efforts to protect our people, just like we did through the pandemic, against threats from outside. If you think about that, we have done that through the pandemic and we continue that in the face of this economic crisis. So the pandemic has led to both supply chain problems and then that was compounded by Russia\u2019s illegal war in Ukraine, causing rising inflation in New Zealand and also across the globe, putting economic pressure on families. This Government bill is about providing cash to alleviate the pressure on the cost of living for people earning less than $70,000 and who are not eligible for the winter energy payment. Just like in the pandemic, we are protecting people\u2014that\u2019s what this bill does: contributes to our security.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000473\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aed260be-c954-464b-bb75-85579e53d05a\u0022\u003ENow, you might ask, \u201CIs it enough?\u201D It is a contribution and other important contributions are made through other measures. It will help 2.1 million people, and students are eligible for this help. Now, the Opposition have a different policy. They have proposed tax cuts that will benefit our wealthiest earners to address the pressure on the cost of living. That won\u2019t help low and middle income earners. And, in fact, that approach has been criticised by the IMF who advises against tax cuts at this point. So there is no economic basis to the opposition to this bill, or to the Opposition\u2019s tax policy. This balanced Budget has presented. It is targeted at those who need it most without making inflation worse.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000474\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aed260be-c954-464b-bb75-85579e53d05a\u0022\u003EWhen I look across the Government\u2019s agenda, I see that this approach of securing our people is widespread throughout the Budget\u2014for example, another disruption of people\u2019s security and their livelihoods is threats to their health, and yet we have strengthened our health system through this Budget. We have addressed inequities that have been profoundly unfair throughout our history by funding and developing a M\u0101ori Health Authority. We have cleared the DHB debts that have constrained them for far too long in terms of taking new measures to protect the health of their people. We are investing $61 million in public health systems that\u2019ll ensure we don\u2019t have to reconstruct an underfunded public health system in the face of a pandemic ever again. We are ensuring that the system is responsive to those it has never served before, and I\u2019m thinking particularly about our measures for the rainbow community or for people who suffer with dementia.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000475\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022aed260be-c954-464b-bb75-85579e53d05a\u0022\u003EAnother threat to our security is climate change; in fact, in many ways you could describe it as the mother of all threats. It causes sea-level rise that endangers our homes, it damages ecosystems on which we depend, and it damages crops and our food supply. This Budget, through the emissions reduction plan and associated funding, secures us against the risk of these threats. We have a number of initiatives, including to promote the transition to electric vehicles, to reduce methane emissions in agriculture through investment in science, and through improving the use of biofuels and renewables in our energy supply. Budget \u201922 secures a positive future for New Zealanders. It is not too late for the Opposition to change their votes. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022 data-id=\u00225cb4a65cf858495b9aa9b1a9a3c7ca49\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000476\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00225cb4a65cf858495b9aa9b1a9a3c7ca49\u0022\u003ESIMON WATTS (National\u2014North Shore):\u003C/span\u003E The last speaker\u2014the Hon Dr Ayesha Verrall\u2014says, \u201CIt\u2019s not too late for the Opposition to change their mind.\u201D Well, I want to let her into a little bit of a secret, and that is the Opposition will not be changing their mind. We are strongly opposed to this bill. It is a great shame, because, normally, as bills go through this House, we would have had the opportunity to go through a select committee process, and I\u2019m sure, looking at this bill, it would have gone through the Finance and Expenditure Committee, of which I\u2019m a member\u2014and I see a number of my colleagues around the room in there. But, of course, this bill has not been through any due process. It has not been through a select committee process, and so we are here, under urgency, reviewing a bill which is absolutely full of holes.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000477\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EThis evening, in my short call, I\u2019m going to run everyone through, at home, where the issues are in this bill. And I want to reinforce to those people at home that think that this Government has got a plan, that this Government has been thinking about this bill for a long time, that this Government, when they drafted this bill, have considered a lot of options and have been very thoughtful\u2014I\u2019m going to, sadly, put the facts on the table to show that, actually, this bill has been made up on the hoof. It is a bill that has been made up, probably, only in the last four to six weeks, and it is absolutely, categorically clear that this bill is full of holes. And that shows a Government that doesn\u2019t have a plan. It is not clear in terms of what they\u2019re trying to deliver and, more importantly, they don\u2019t have a sense of what the reality is on the ground for hard-working Kiwis.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000478\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EToday, we heard the outlining of Government spending related to this, of which this bill is going to contribute in the region of $6.5 billion this year alone. That is the single biggest outlay of Government spending, and this bill, in terms of its fiscal cost, will account for about $800 million of that spend. And I want to quote to you some of the words around in the supplementary analysis report of this, and I\u2019ll tell you what: of course, we didn\u2019t have the bill till only prior to the first reading, unlike this Government which had been working on this for about four to six weeks. But I only got to page 3, and I got five points, so let\u2019s just go through those and work those through.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000479\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EThe fiscal cost of payments is expected to be $747 million. This is based on a payment of $350 to an estimated 2.136 million recipients. That estimate is highly uncertain, because the size of the eligible population is unknown. Well, how about that? So we\u2019ve got a policy here that actually is targeting a population that the officials have indicated\u2014they\u2019re not even sure how many people are there. So given the fact that they don\u2019t know how big the eligible population is, they\u2019ve put a round number of $800 million because of the uncertainty around that estimate. So that\u2019s the first example. For those sitting at home, going, \u201CWell, you know, this is tough; it\u2019s a tough business. Everyone\u2019s under pressure at the moment.\u201D Well, that just gives you an indication that even the fiscal costs of this bill haven\u2019t been well thought through or, actually, haven\u2019t got any real substantive basis in order to back them up.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000480\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EThe second aspect goes right back in the executive summary of the supplementary analysis around the options analysis, so you\u2019d expect that the Government would consider a number of options to deal with the problem of a cost of living crisis that is impacting Kiwis and has been around for pretty much most of this year. But oh, no, no. They haven\u2019t. The line at the top on page 2 reads, \u201CThe Treasury recommended against progressing a broad-based payment.\u201D So even the Treasury do not support this bill if you look at the first line of page 2 of that analysis. And they go on to provide the details why, which is all pretty sensible stuff. But, of course, a Government that is well known for not listening, for not taking on feedback, and for thinking that they know best had just kept on trucking on and continuing with this bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000481\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EI now want to move to the next category in the report, which talks about the eligible population. The eligible population criteria for this bill is like a sieve, right. It is just full of holes, and we\u2019ll get into that in the committee of the whole House stage. But I want to just cover off the key element here. Again, I quote: \u201CInland Revenue was not able to accurately forecast the number of eligible individuals for the 2021/22 tax year.\u201D\u2014i.e., IRD, the department which is going to be responsible for implementing these payments on 1 August, if they are lucky, are not able to forecast who is going to be eligible for this payment. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000482\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EThis is not a joke. Just for those that are at home, watching this thinking, \u201CMaybe, I\u2019ve flicked onto a wrong channel and am looking at bloopers within Parliament or something like that.\u201D This is no joke. This is the reality of a Government who is completely out of touch, a Government and a Minister who are not over the detail, and what this shows is this bill has been thought up on the hoof, probably as a result of a bad poll. These guys have got desperate. They\u2019ve gone, \u201COh crikey, we haven\u2019t got anything to deal with that issue. What have we got? Let\u2019s have a go at this.\u201D And their own officials\u2014whose heads are down at the moment, going, \u201CCrikey, what are we going to say to the Minister in the committee stage?\u201D\u2014are saying this is not able to accurately forecast that. It\u2019s in the supplementary analysis report. That\u2019s the facts; that\u2019s where it is. And I\u2019m hearing on the other side a little bit of comment that they don\u2019t seem to believe it. They just need to read their own report.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000483\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EI want to go on, as well, because I\u2019ve covered three. But let\u2019s talk about the administrative impacts of this bill\u2014again, in that report. And, again, the Inland Revenue officials have provided some guidance on this. \u201CThis payment\u201D\u2014and I quote\u2014\u201Cwould require Inland Revenue to devote a significant number of their front-line staff to deliver the payment and manage the contact-seeking support about this payment during one of Inland Revenue\u2019s busiest periods.\u201D Just think about that. Let\u2019s just throw this payment to individuals in New Zealand\u20142 million or so people\u2014at the busiest time for Inland Revenue, but that Government doesn\u2019t care about those Public Service individuals, they don\u2019t care about the burden that this will place on them, and they absolutely wouldn\u2019t even understand the reality and the implications of implementing a bill. And what they\u2019ve gone on to say\u2014the Inland Revenue has anticipated that the resources required in order to implement this are in the region of 750 fulltime-equivalent hours being required\u2014and I quote\u2014\u201Cin the weeks of 1 August, 1 September, and 1 October.\u201D\u2014750 resources. Where are these people going to come from? Well, I can tell you where they\u2019re going to come from: they\u2019re not going to come from anywhere, because the Minister has not got over the detail. He\u2019s come up with a plan, he\u2019s come up with a policy and a bill, but he has not thought through the detail on how this is going to be implemented. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000484\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EAnd I haven\u2019t even talked about the fact that this bill in terms of $27 a week\u2014as I mentioned to you before\u2014is about 9 litres of fuel for the Toyota Corolla. That is the extent. I heard before\u2014one of the people said, \u201CIt doesn\u2019t even get you an Uber Eats for a week.\u201D This is inconsequential in terms of what real, hard-working Kiwis across this country are facing in terms of cost pressures on their lives right now. The ASB Bank has outlined that the cost of living increase for food alone for most families in this country is in the region of $150 a week. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000485\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003ETwenty seven dollars for those under $70,000 and, again, the criteria is pretty loose. You only have to be in New Zealand and a New Zealand tax resident. Do you have to be a permanent resident? Do you have to be a resident in New Zealand or, actually, can you be someone from overseas who\u2019s working here on a working holiday visa and still get the payment? Well, I would be interested to hear the answer for that from the Minister in the next stage, because when hard-working Kiwis at home find out the reality that this is just another example of policy that has not been thought out, policy that is not going to deliver the outcomes required for hard-working Kiwis, they are going to be even more disappointed in a Government that they do not trust. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000486\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EI\u2019ve given an insight, a little bit, into five key areas within the first three pages of a document provided by officials in regard to this bill. I think it categorically proves and substantiates that this bill has been made up on the hoof. It is a broken bill built on a backward Budget by a Government that doesn\u2019t have a plan, a Government that is out of touch with hard-working Kiwis across this country. National opposes this bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022 data-id=\u002205f9cfa2b331412387424f63a2601825\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000487\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002205f9cfa2b331412387424f63a2601825\u0022\u003EDr DEBORAH RUSSELL (Labour\u2014New Lynn):\u003C/span\u003E Let me tell you what motivates this bill. It is a simple question: how can we help low and middle income New Zealanders? How can we help people who are doing it tough because there is a worldwide inflation problem? How can we help people in this country who don\u2019t get benefits, don\u2019t get the winter energy payment, and don\u2019t get super? What can we do for people who some on the other side like to refer to as the squeezed middle? The answer is that we have a cost of living package that is designed to help exactly those people. It\u2019s based around cutting transport costs and putting some money in people\u2019s back pockets. That is what motivates this bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000488\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003EThe Opposition have been quibbling over it. First of all, they\u2019ve complained that they don\u2019t know the detail. The most recent speaker\u2014Simon Watts\u2014said he wasn\u2019t sure whether it applied to New Zealand tax residents or New Zealand residents. Well, frankly, I do know that detail and he clearly does not. Tax residency is quite different from residency for citizenship purposes, and people who complain about knowing the detail ought to know that in the first place before they get up and complain about it. It\u2019s straightforward\u2014it goes to New Zealand tax residents, people who have been residents in New Zealand for 183 days or more within a one-year period. It\u2019s quite straightforward. Anyone who wants to comment on tax ought to be able to tell you that.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000489\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003EBut going on from that, they complained about the fact that perhaps IRD might not be able to tell us exactly how many people are going to be affected by this bill and are going to be eligible for the payment. Again, there\u2019s a straightforward reason for that. The 2021-22 tax year returns processing is not yet finished. So the Inland Revenue Department can\u2019t know exactly how many people will benefit from it, but they know about how many. We know it\u2019s going to be about 2.1 million New Zealanders\u2014close enough to get enough fiscal cost on it. In fact, anyone with a good business brain ought to be able to sort that out, and we can do that on this side of the House.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000490\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b7ac7e05c35447aa847b26d4b51b7975\u0022\u003ESimon Watts\u003C/span\u003E: This is a bit embarrassing, Minister. She\u2019s pointing out where all the gaps in your bill are.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000491\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00220f8ad47177464ff58172f12b22657097\u0022\u003EASSISTANT SPEAKER (Hon Jenny Salesa)\u003C/span\u003E: Order on this side of the House! You\u2019ve had a chance to make your speech; now I\u2019d like to hear Dr Deborah Russell.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000492\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022cb285e1521b04696b27adf0246f73ddd\u0022\u003EDr DEBORAH RUSSELL\u003C/span\u003E: They pointed out that it\u2019s going to be tough for IRD to process these payments. Yes, it is going to be tough. It is a big ask. But we\u2019re pretty confident that IRD can manage it. It will be tough, it will be hard, but, you know, times are tough and hard out there for ordinary New Zealanders, and that is why we are doing our best to answer that question: how can we help low and middle income New Zealanders? This is a new and unusual policy in New Zealand. We haven\u2019t done something like this for a very long time. It is unusual, but that does not mean it should not be done. The times demand that we try something new and that is exactly what we are doing in this space.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000493\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003EI want to address some of the words that were used by Paul Goldsmith in speaking on this bill recently. I heard words like \u201Crapacious\u201D and \u201Caggressively greedy\u201D as though somehow a Government trying to collect the money it needs in order to fund services is greedy about it, and, of course, that ties into the mantra from the other side about tax cuts. They talk about tax cuts but they never talk about service cuts. They never talk about running down the health system, which is what you have to do in order to fund tax cuts. They never talk about short-changing the education system, which is what you have to do in order to have tax cuts. They never talk about the services that we provide for all New Zealanders because that is the best way we can ensure the wellbeing of New Zealanders: by making sure there is a decent health system, by making sure there is a decent welfare system, and by making sure there is a decent education system. That is also how we look after New Zealanders, and in order to that we need to have a decent tax system. Simply chanting \u201Ctax cuts\u201D without saying where you would cut services is irresponsible and it shows an Opposition that is not prepared to do the hard work\u2014on this side of the House we are, and on this side of the House we are confident that this payment will help New Zealanders. It will put money in people\u2019s pockets. It will help just a little bit. It will make a bit of a contribution to the issues we all have with inflation at the moment, and that is why I am proud to support this bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022 data-id=\u00227c954413562d49e190544178116a6458\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000494\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00227c954413562d49e190544178116a6458\u0022\u003ERICARDO MEN\u00C9NDEZ MARCH (Green):\u003C/span\u003E Thank you, Madam Speaker. Reflecting on the fact that through the course of this debate, I\u2019ve been hearing National Party members advocating for cuts to taxes and, effectively, services and, at the same time, also throwing some dog-whistles about this bill potentially reaching some of our migrant communities\u2014so I think we\u2019ve got this kind of scapegoating narrative on the one hand, and then the Labour Party members are expressing concern about the wellbeing of low-income New Zealanders. And I agree: the Green Party is deeply concerned about the state of our inequality crisis and the fact that so many low-income New Zealanders are doing it tough. This is why we are deeply frustrated that this cost of living payment bill is not reaching some of those New Zealanders who are doing it the toughest: people who are on the main benefit, some of our senior citizens who are relying on superannuation and they\u2019re still renting and are struggling to make ends meet. It makes absolutely no sense to be giving a stimulus and exclude some of the people who have been doing it the toughest.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000495\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003EI was looking at the departmental disclosure statement and one of the sections was around external consultation, and there was, basically, an admission that stakeholders other than key Government departments were not consulted on the proposals of the bill. For the purpose of this bill, I think we\u2019ve got a trove of feedback from community, from researchers, and from advocates on the ground about the state of things in Aotearoa and the fact that poverty continues to be a massive issue. The Government could have looked at the Fairer Future report which showed that some families are $300 a week behind to be able to participate in their communities. The Government could have listened to the countless people on the benefit who are speaking about the need to constantly go to Work and Income to get a hardship grant because they cannot make ends meet. They could have listened to the stories that have been out there for so many years. So while I would have loved for the Government to consult with key stakeholders and communities affected, they could have also looked at what was already out there and realised that including people on benefits would have been the right thing if their genuine intent was to support low-income communities. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000496\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003EI look back at the narratives that this Government was talking about when it came to the intent of the Budget, which was to ensure that our communities are healthy. I repeat what I said in the first reading speech: if we want our communities to stay healthy, we need to address low incomes, because far too many communities are getting sick because they don\u2019t have adequate and abundant kai because they\u2019re stressed from not being able to meet rent and because they\u2019re transient from moving to one emergency housing place to another. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000497\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003ESo if this Government is serious about our community staying healthy, they should be looking at including people on the benefit in this bill, ensuring that everyone is looked after and committing to permanent increases to incomes for the families that are doing it the toughest. The inequality crisis did not start with the rising inflation or the war in Ukraine that has caused some basic essentials to go up; it has been here since before even this Government came into power. If we\u2019re going to do service to the communities that we talk about, that we serve, then I urge this Government to include people on the benefit and to look at permanent welfare reforms so that all of our communities are able to thrive and fully participate in our communities. Kia ora.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022 data-id=\u002222ee9d1bea1543449dfc9a1e1e556985\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000498\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002222ee9d1bea1543449dfc9a1e1e556985\u0022\u003EDAMIEN SMITH (ACT):\u003C/span\u003E I wonder what Mr Thomas Piketty would make of this, in terms of the structuring and hastiness of this social policy. I was very interested in how the coronation was met between this payment and rising sea levels and methane emissions by the associate health Minister, so that left me rather confused.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000499\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EIn terms of prioritising funding from this\u2014let me just imagine what happened in Cabinet. Newshub poll came in, three-quarters of New Zealanders said, \u201CThis Government\u2019s just not helping with the cost of living.\u201D, and everybody sat around and went, \u201CWhat do we do? What money have we got? Let\u2019s reel a billion dollars out of the last of the COVID fund.\u201D \u201CYeah. That\u2019s good. Let\u2019s use that to give a payment to everyone out there and that\u2019ll get us through that two-month period.\u201D I think that\u2019s probably what happened. I think it\u2019s probably very simple to ascertain that several of the Ministers would probably have went, \u201CHmm. This is not, maybe, the way to go.\u201D, but public pressure is an amazing thing when it comes to polling and politics at this time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000500\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EThat\u2019s what the ACT alternative budget, which is fully costed, would give people thousands of dollars to help with this crisis; not $27 a week.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000501\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00225b58619c0c8349c2bcade173f3c9ca24\u0022\u003EHon David Bennett\u003C/span\u003E: What about services?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000502\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00229d68275afa8048018a200ede3979dfc6\u0022\u003EDAMIEN SMITH\u003C/span\u003E: And then\u2014we have kept essential health services; we\u2019ve just reduced Government spending. That is the logical way for the Government to have embraced the significant milestone in this Budget today. But, nope, the golden goose doesn\u2019t apply to Kiwis. A key part of the Budget is to tokenise payments which are exciting a lot of young people, actually, tonight, around the country. People between 18 and 20 are all thinking, \u201CRight, here\u2019s some money to go down to the pub. It\u2019s all good.\u201D There\u2019s four in a household, that\u2019s a good old session if you get these payments rolling in. Surely that should have been thought about and tested as being inappropriate; a mass blanket payment under this Budget.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000503\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ESo if you\u2019re weighing up what\u2019s happening in Australia, there\u2019s still a $6,000 gap between what they earn and what we earn. Structurally, we\u2019ve got to embrace getting this right and doing it right, as opposed to this type of payment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000504\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EIf you look at the COVID fund and the uses over the period, it\u2019s had many, many iterations but not one like this sugar hit that\u2019s come out today. We have to believe that a cost of living payment for a short period of time isn\u2019t going to solve the long-term problems of inflation in this country. The Green Party have recognised that the cost of rentals, the costs of superannuates, people without savings\u2014there are social issues out there that, over the last four years, has led to a gap significantly increasing between what people were paying in tax with a Labour Government and now what they\u2019re paying today.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000505\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EIn terms of oversight of this payment, it must be pretty embarrassing to a Government and Treasury to be not on the same page. This is the cost of a vote, I guess, in terms of pacifying people. But what happens now, in six months\u2019 time, in a year\u2019s time, at the next Budget? Will we have the tax cut Budget then, or should it have been done now? In terms of our view of the world, it\u2019s clear that the Government sees and Mr Robertson sees Kiwi people\u2019s money as being something that is to be consumed by the Government and even before it\u2019s taxed. So he\u2019s once again used a Budget to reward political support.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000506\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EWe have to be honest, it says that this cost of living payment doesn\u2019t really secure anybody\u2019s future tonight. It helps with someone that comes in and buys a couple of loaves of bread, some cheese, maybe a little bit of butter\u2014and I\u2019ve probably overestimated those.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000507\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ESo, in terms of taking this seriously, we still want to encourage the Minister in the next Budget to adopt ACT\u2019s two-step principles of reducing income tax for hard-working people to 17.5 percent up to $70,000, which would help nurses, it would help families, it would help teachers, it would help anybody who, now, the Labour Party are recognising aren\u2019t the squeezed middle after this speech tonight. It would allow a top tax rate of 28 percent to be put in place for people who already pay their tax at the top end and work hard and contribute to this economy.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000508\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EInflation is not going away. The Reserve Bank have said that in the Monetary Policy Statement next week. The Official Cash Rate uplift will be heading towards 3 percent to 3.5 percent, which means extensive raising of interest rate payments in mortgages, and, also, if you\u2019ve got young people under the roof of your house, the expenses are going to go up even further. This is a very serious situation. Growth estimated at now 2 percent per annum, as opposed to 5 percent. So we have a lot of forces that are going to cause potential instability.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000509\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EThe appetite for Government spending is just insatiable; we\u2019ll know in two years\u2019 time whether it\u2019s worked and/or we\u2019ve got billions of dollars that have been put out the door that haven\u2019t got any traction, haven\u2019t achieved any results\u2014especially in the health sector\u2014and we know that people aren\u2019t going to stop complaining tomorrow about the cost of living crisis that is here in New Zealand. This is not going to stop this. There\u2019ll be another poll in a months\u2019 time which will still say people have still got the same issues that they have and nothing has been fixed by this Government. So we will be opposing this bill, but we\u2019d like to speak to the Minister and the parties about a more extensive tax structuring philosophy when it comes to the Budget next year.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022 data-id=\u00226ff6e1f42e464ca19ddab46a761d4624\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000510\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226ff6e1f42e464ca19ddab46a761d4624\u0022\u003EJAMIE STRANGE (Labour\u2014Hamilton East):\u003C/span\u003E Madam Speaker, thanks for the opportunity to take a call on this bill. I think that there is a reason why the ACT Party are languishing in the polls, because there was no clear understanding of a plan to deal with the issues that are facing New Zealanders. Whereas\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000511\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022103021106a05479385786f747d2325a4\u0022\u003EASSISTANT SPEAKER (Hon Jenny Salesa)\u003C/span\u003E: I remind the member to come back to the bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000512\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00227bba3c87fee54b29bc297ff8df471a3f\u0022\u003EJAMIE STRANGE\u003C/span\u003E: \u2014I\u2019m proud to be part of a Government who are supporting New Zealanders\u2014hard-working New Zealanders\u2014supporting middle New Zealand as they go about their lives. And the reality is\u2014as we have heard in this debate from all sides of the House, we all acknowledge it\u2014there are challenges with the cost of living. There are inflationary pressures happening around the globe. We do have a strong economy here in New Zealand. We have an economy that is very much export-led, primarily based on producing food for the world. The world will always need food, and we do that very well. We\u2019re growing, we\u2019re diversifying our economy into areas like tech, various manufacturing forms, and we are continuing to grow our economy. And as we heard from the Minister previously in this debate, we have had many years of positive GDP under Labour Governments. All through the early 2000s\u2014high levels of GDP growth. And that growth has continued.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000513\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022\u003EObviously, COVID was a challenge. At the moment, we\u2019re faced with a particular challenge in terms of the cost of inflation. Even though we do have a strong economy, we are not immune to the pressures that are faced around the world. This is a Government who are listening to the people on the streets. We\u2019re in touch with New Zealanders. We\u2019re not out of touch with New Zealanders, like some members opposite. We have a plan to support New Zealanders because we understand the challenges that we\u2019re going through.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000514\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022\u003EClearly, this plan to fuel money into the economy to support New Zealanders\u2014a $350 payment for those earning under $70,000. When we compare that to the National Party, the National Party have some sort of vague plan around tax cuts for those at the top. And the National Party have said, previously, there\u2019s this trickle-down philosophy, and, hopefully, one of the next speakers from the National Party can enlighten us a bit more about that, because the idea of giving money, giving tax cuts, to those at the top and expecting that money to trickle down to those in the middle and those at the bottom is a fallacy\u2014it\u2019s a fallacy\u2014it does not work. Those at the top, they\u2019ll spend their money overseas, they\u2019ll go on overseas holidays, they might buy another five houses or something. Whereas, if you support middle New Zealand and those at the lower end, like we did on 1 April\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000515\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022c96702e208da449e81489cf7ae51c054\u0022\u003EDamien Smith\u003C/span\u003E: You didn\u2019t get the memo about this bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000516\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00220fa62c8e7dba4253b7e210c96a281fab\u0022\u003EJAMIE STRANGE\u003C/span\u003E: \u2014I\u2019m trying to hear the member\u2014that money will go directly into the economy; it will support businesses. Now, some people will say, \u201CWell, won\u2019t that fuel inflation?\u201D Well, we\u2019ve been told by Treasury, because it\u2019s a short-term payment of $350 over three payments, it won\u2019t negatively affect inflation. However, it will have the impact of supporting New Zealanders as they go to the supermarket, as they go to the petrol pump, because certainly there are challenges here.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000517\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022\u003EI\u2019d like to acknowledge the Minister Grant Robertson for his speech today. He has delivered a Budget that strikes the right balance in terms of supporting New Zealanders now and looking long term. This bill here is a part of that Budget. This bill plays an important role in supporting New Zealanders right now, because we\u2019re hearing what people are saying. We\u2019re out there on the streets, listening\u2014we\u2019re not sitting in our ivory towers, locked away; we\u2019re on the streets, listening to New Zealanders. New Zealanders have clearly told us that they\u2019re struggling with the cost of living, and we\u2019re listening and we\u2019re responding. I\u2019m proud to be a part of a Government that listens to New Zealanders and that is supporting them.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022 data-id=\u00226b67057b3dd34186b40070aa57ef8fac\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000518\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226b67057b3dd34186b40070aa57ef8fac\u0022\u003EASSISTANT SPEAKER (Hon Jenny Salesa)\u003C/span\u003E: The next call is a split call. I call on Matt Doocey\u2014five minutes.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022 data-id=\u00220248e092d3b64709b6973d6271624c37\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000519\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220248e092d3b64709b6973d6271624c37\u0022\u003EMATT DOOCEY (National\u2014Waimakariri):\u003C/span\u003E Well, thank you very much, Madam Speaker. What is the purpose of a Labour Government if it doesn\u2019t stand up for working people? Here we have a bill tonight where the average Kiwi on the average wage will get nothing out of this bill. The average Kiwi on the average wage of $72,000 will get a big New Zealand Transport Agency (NZTA) zero\u2014you know those zeros that NZTA wasted $10,000 dollars on? An average Kiwi on the average wage will get nothing. There was a time when a Labour Government would stand up for hard-working Kiwis; they do not represent working Kiwis any more. It\u2019s on a guaranteed tax plan that a National Government will stand up for hard-working Kiwis. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000520\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EWe have not had any time tonight to interrogate this bill. We\u2019ve had no committee of the whole House stage. But what I want the Government members to do is to start fleshing this bill out\u2014start explaining to us: why do you need 750 full-time equivalents to deliver this bill? What we know with a Labour Government is that won\u2019t be a ceiling; that will be a minimum. So we\u2019re looking at about 1,000 more bureaucrats on top of the 10,000 they\u2019ve already employed. What will be the cost, Minister, of that 1,000 extra bureaucrats to administer that? The bill says it will cost $16 million. Is that including the extra funding that\u2019s in the paperwork that none of the Government MPs have talked about? IRD has asked for extra funding to employ the 750 fulltime-equivalents. How much is that going to cost? Ten thousand bureaucrats plus 1,000\u2014now we\u2019re up to 11,000. When is it going to stop?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000521\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EEven the Minister in his first reading admitted 200,000 Kiwis who are entitled to this\u2014they don\u2019t even have their bank account details. Over 10 percent\u2014they don\u2019t even have the details. Let\u2019s be honest: who would trust these guys to run a hot bath, let alone deliver a programme like this? This is destined for failure. Why we know that is because one of the very few documents we have for regulatory oversight says \u201Canalysis of the problem and potential options has been significantly constrained by shortened time frames\u201D. No one\u2019s done any work on this bill because they only magicked it up a couple of nights ago over a late-night wine when Grant reached over and he probably said to Jacinda and Chippy, \u201COh, the public\u2019s getting a bit insatiable for tax relief. What are we going to do?\u201D \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000522\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EHere we are: a band-aid Budget\u2014a band-aid $350 for hard-working Kiwis. What is the purpose of a Labour Government if they can\u2019t fight hard for working Kiwis? I tell you what, you go and listen to the comments on the news tonight, and the hard-working Kiwis aren\u2019t impressed. They aren\u2019t impressed about this band-aid response to, in fact, a very serious crisis in New Zealand. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000523\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EThis is a failed socialist experiment, this Government. Everything they do is failure\u2014a failed socialist experiment. Now they\u2019re reaching in and blowing $6 billion\u2014the biggest spend\u2014plus another $2 billion in the next Budget, another half a billion, and add on $800 million for this policy pledge. I tell you what, it\u2019s the hard-working Kiwis that are going to have to pay it back on top of all the extra costs that they are paying for, and now they\u2019ve got debt that\u2019s growing by the day. The interest on the debt this Government is growing is twice what we pay for the New Zealand Police Force a year. This Government is out of control. But hold on, because there was one learned colleague from the Government benches who mentioned the poll, and he\u2019s dead right, because the poll was reflective of where middle New Zealand is: middle New Zealand does not trust this Government. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e7bab061-0905-44a1-a4ec-cf89b58a1baf\u0022 data-id=\u0022f3a40a2f638b4944b7eb3fd904ffd1f8\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000524\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e7bab061-0905-44a1-a4ec-cf89b58a1baf\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f3a40a2f638b4944b7eb3fd904ffd1f8\u0022\u003ESARAH PALLETT (Labour\u2014Ilam):\u003C/span\u003E Thank you, Madam Speaker. I rise this evening in support of this bill and\u2014sorry, I\u2019m a little tiny bit taken back with the suddenness of my colleague across the row ending. Obviously, completely fascinating, but somewhat abrupt in its ending.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000525\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d3d5440aecca48f8a2f68428eaa709c7\u0022\u003EMatt Doocey\u003C/span\u003E: Point of order, Madam Speaker.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000526\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e7bab061-0905-44a1-a4ec-cf89b58a1baf\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00227518827f3ecf4511aea5e93c8e9b1afa\u0022\u003ESARAH PALLETT\u003C/span\u003E: I\u2019m sorry, are you starting again, Mr Doocey?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000527\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002248ed17e99dc14f1bb48092503fec5a69\u0022\u003EASSISTANT SPEAKER (Hon Jenny Salesa)\u003C/span\u003E: Point of order, Matt Doocey.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000528\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a98cbae183f84a74a3edb55765f4adb9\u0022\u003EMatt Doocey\u003C/span\u003E: The Government MP was surprised my time had finished. I\u2019d like to seek leave for further time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000529\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00221913265f8e77413f93c862a2712d8d19\u0022\u003EASSISTANT SPEAKER (Hon Jenny Salesa)\u003C/span\u003E: No. That is not granted.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000530\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00225589e6c0b5da4133aee38561ec259cb4\u0022\u003EHon Member\u003C/span\u003E: He sought leave!\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000531\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e7bab061-0905-44a1-a4ec-cf89b58a1baf\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002286a7df76b49f40f5937136768815a040\u0022\u003ESARAH PALLETT\u003C/span\u003E: Speaking to the point of order, Madam Speaker, I wasn\u2019t surprised by his time ending; I was merely surprised by the abrupt way his sentence finished. Thank you.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000532\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00225b1b08dc0ffe41549043a87b30650cc1\u0022\u003EASSISTANT SPEAKER (Hon Jenny Salesa)\u003C/span\u003E: You\u2019re seriously seeking leave for more time?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000533\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002243038866412545e7acc550707adc865b\u0022\u003EHon Member\u003C/span\u003E: He said that.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000534\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00225dda8d4cf5e141df84ae2f27aa1fca05\u0022\u003EASSISTANT SPEAKER (Hon Jenny Salesa)\u003C/span\u003E: I put that leave for more time for Matt Doocey. It is not granted.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000535\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e7bab061-0905-44a1-a4ec-cf89b58a1baf\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002219c4dd5859184d4da7750c074f7de989\u0022\u003ESARAH PALLETT\u003C/span\u003E: Thank you, Madam Speaker. Good try, Mr Doocey! Right now, the fundamentals of our economy are strong. Our strong health response has protected our economy through COVID-19, and we\u2019ve done better than almost any other country because we put people first, because the best response to any crisis is to focus on the people. We know that the best health responses will result in the best economic responses. You can\u2019t separate a solid economic response from a solid health response.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000536\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e7bab061-0905-44a1-a4ec-cf89b58a1baf\u0022\u003EWe are, though, in the middle of a global pandemic. Whilst we\u2019ve done well, we can\u2019t escape the fact that forces are in play that are affecting all of the economies of the OECD countries in the world\u2014all of the countries of the world.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000537\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e7bab061-0905-44a1-a4ec-cf89b58a1baf\u0022\u003EWe heard today that in the UK, inflation has risen to 9 percent in the 12 months to April\u20149 percent: the highest level since 1982. I have to say, when I heard the news, an expletive that I won\u2019t repeat in the House did escape my lips. It is predicted to rise again, unfortunately.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000538\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e7bab061-0905-44a1-a4ec-cf89b58a1baf\u0022\u003EWhat did the chancellor have to say about this? The Chancellor of the Exchequer. He said, and I will remind the House that he is a Conservative MP, \u201CThere is no measure any Government could take, no law we could pass that could make these global forces disappear overnight.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000539\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e7bab061-0905-44a1-a4ec-cf89b58a1baf\u0022\u003EWe in Government have been arguing this point, that there are some things that we cannot change, but we can respond to them. We can see examples like my friend in the UK, who has seen her fuel costs rise by thousands of dollars this year, causing them great economic hardship.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000540\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e7bab061-0905-44a1-a4ec-cf89b58a1baf\u0022\u003EWe understand that things are tough for many families here in New Zealand. That\u2019s why we\u2019ve introduced a comprehensive cost of living package, a package that will give a payment of $350 to all people earning $70,000 or less. That\u2019s 2.1 million people, approximately, assessed on an individual basis, not a household basis. We are also extending our fuel tax cut, extending our road-user charges cut, extending our public transport fees rebate of 50 percent, and permanently halving public transport fees for those on the community services card.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000541\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e7bab061-0905-44a1-a4ec-cf89b58a1baf\u0022\u003ESo when you hear members of the Opposition talk about tax cuts, they mean tax cuts for the wealthy; they don\u2019t mean relief for what they describe as the squeezed middle. They don\u2019t mean that, and you know what? They won\u2019t tell you what they will cut to give themselves a pay rise. Is it the new Hillmorton Hospital that the Opposition proposes to scrap? Is it the 80 new adult psychiatric beds in the new Hillmorton Hospital? Is it Whangarei Hospital? Is it Nelson Hospital? Is it money for the eating disorder services? Is it for the Pharmac money that we\u2019ve increased? A 43 percent increase to Pharmac medicines budget since 2017 is what this Labour Government is going to be providing. Is that what they\u2019re going to cut in the Opposition?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000542\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e7bab061-0905-44a1-a4ec-cf89b58a1baf\u0022\u003EThey\u2019re busy telling us that $350 is nothing. They\u2019re busy telling us this when they\u2019re simultaneously telling us that $2 a week for the lowest earners\u2014which is their tax cut proposal for the low-earning people of New Zealand\u2014oh, we\u2019re supposed to be grateful for that; that\u2019s a lot of money?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000543\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e7bab061-0905-44a1-a4ec-cf89b58a1baf\u0022\u003EFrankly, this is not true. We\u2019re not going to spend $350 on a one-way ticket to Australia because people on low and middle incomes don\u2019t spend $350 on a trip to Australia. They spend it on food, on fuel, on car registration, on looking after their families. Looking after their families is precisely what this Government is doing.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022 data-id=\u002213433f399eaa4035846bb92beb9626df\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000544\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002213433f399eaa4035846bb92beb9626df\u0022\u003EASSISTANT SPEAKER (Hon Jenny Salesa)\u003C/span\u003E: I call on\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000545\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00227a1ee9b8ea3d442ca2c3b10f3e2a8e61\u0022\u003EHon Member\u003C/span\u003E: Halbert.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000546\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022fcec57076eb642a78d4614eee03a57e9\u0022\u003EASSISTANT SPEAKER (Hon Jenny Salesa)\u003C/span\u003E: I call on Shanan Halbert.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00229c069cdb-968c-4f11-b126-92f9c655148b\u0022 data-id=\u00227d289d17ecf9430194779521ff9a3919\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000547\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229c069cdb-968c-4f11-b126-92f9c655148b\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00227d289d17ecf9430194779521ff9a3919\u0022\u003ESHANAN HALBERT (Labour\u2014Northcote):\u003C/span\u003E Thank you, Madam Speaker, and\u2014[Interruption] Ha, ha! Thank you, Madam Speaker.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000548\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00227ce3c7c883e849478df37e4dfc853c15\u0022\u003ESimeon Brown\u003C/span\u003E: Wakey, wake!\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000549\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229c069cdb-968c-4f11-b126-92f9c655148b\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022e0f7192e0bba44baa51d372cdb8a2c48\u0022\u003ESHANAN HALBERT\u003C/span\u003E: Wakey, wakey. And it is a \u201Cwakey, wakey\u201D day under this Government as we launched a wonderful Budget\u2014a Budget that makes a difference for every New Zealander in this country. I\u2019ve heard the narrative this evening that it\u2019s not enough, that it\u2019s not enough\u2014it\u2019s not this; it\u2019s not that. But in Northcote, I\u2019ve done the numbers. It looks like up to 60 percent of Northcote constituents will be better off under this piece of legislation.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000550\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229c069cdb-968c-4f11-b126-92f9c655148b\u0022\u003EWe know that our economy has been\u2014is\u2014one of the strongest in the world, with triple A credit ratings, record low unemployment, and lower debt than Australia, Canada, the United States, and the United Kingdom. However, despite these positive results, we know global inflation pressures are hurting some people, all across New Zealand, in our own communities. That\u2019s why today counts.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000551\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229c069cdb-968c-4f11-b126-92f9c655148b\u0022\u003EI turn to some of the points that another member from the Opposition spoke of earlier, a colleague from the North Shore. We know that the North Shore is better under a Labour Government. National had a stronghold on the North Shore for over 15 years, and I heard one of the members last night talk about no infrastructure investment on the North Shore. Well, we know there definitely wasn\u2019t any infrastructure investment under National, but we see it under Labour, we see it in houses, we see it in the North Shore Hospital, we see it in the Northern Busway extension\u2014all the things that matter to changing people\u2019s lives in Northcote, and that\u2019s what counts.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000552\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229c069cdb-968c-4f11-b126-92f9c655148b\u0022\u003EOne of the points tonight that the North Shore member raised was that this was only $27 per person in the average family\u2014$27. Well, can I say: $2 under National\u2014$2 versus $27. Well, I\u2019ll count that up: $25 more per person. Well, that\u2019s a lot. But what we haven\u2019t seen in all of this discussion of the cost of living crisis that this particular bill addresses is that people are better off under this Government. We have put forward a balanced, a practical Budget that is going to change the lives for many people in what has been a challenging time. Challenging times will not last for ever, but they know, just like in COVID-19, this Government backs them\u2014like things through the wage subsidy: they were supported to stay in their employment. Well, here we are: under the cost of living crisis that the Opposition wanted to call us out for, we are responding. We are responding with this piece of legislation, we\u2019re responding with extra p\u016Btea\u2014extra money\u2014in the hands of good people and families where it matters.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000553\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229c069cdb-968c-4f11-b126-92f9c655148b\u0022\u003EWe\u2019re responding in public transport. We\u2019re extending half-price fares, and what a wonderful Minister that just walked into the House, who is taking action to change the lives to respond to the congestion challenges of T\u0101maki-makau-rau Auckland, but, most importantly, to respond to the emissions that transport puts into our taiao, our environment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000554\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229c069cdb-968c-4f11-b126-92f9c655148b\u0022\u003EWhat a wonderful piece of legislation that is before us tonight. It delivers for people. It takes action in a practical and very humble way. This is a responsible Budget. I\u2019m proud of the work of the Hon Grant Robertson, and I commend it to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022 data-id=\u002240f994d7087b4eed96cdb393b89b2df5\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000555\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002240f994d7087b4eed96cdb393b89b2df5\u0022\u003EHon DAVID BENNETT (National):\u003C/span\u003E Thank you, Madam Speaker. I just want to, first, start with a little introduction for members of the public as to what happened to the Labour Party in the last three weeks. Now, they would have seen the polls and they would have known that they were in big trouble, and the squeezed middle cost of living argument was starting to take residence in the New Zealand public. Now, they would had to have rewritten their Budget in the last two weeks to actually try to achieve something to deal with that issue.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000556\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003EThat\u2019s what happened, and there\u2019s only two members of the Government that would actually have known what happened. The rest of them are all backbenchers. They wouldn\u2019t even know it. They would have only worked at caucus on Tuesday when the leader came in, or the Minister of Finance would have come in and told them, \u201CI\u2019ve got this great plan to give this money to all these people.\u201D They had no idea\u2014they had no idea. Mr Parker and Mr Woods here, they\u2019re both sitting so silent and looking down because they knew\u2014they knew. They were in Cabinet. They would have had the discussions. All these guys here, most of them aren\u2019t coming back. They\u2019re going. And they tried to save them, and that\u2019s what happened. And the Labour Party members would have gone to caucus on Tuesday and they would have had this big presentation saying, \u201CLook at what we\u2019re going to do for the squeezed middle.\u201D Don\u2019t be so dumb. Understand what is happening. Your party has destroyed the New Zealand economy and today you have controlled that destruction even further. Don\u2019t take it from those ones in the front. They\u2019ll still be here. You won\u2019t be, and that\u2019s what you need to understand. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000557\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003ENow, that\u2019s the Labour Party. That\u2019s the dynamics of what has been going on in their party. But let\u2019s actually look up what it is: a payment to every New Zealander that\u2019s under $70,000 of income. Well, look at the Australians when there was a recession a few years ago for the global financial crisis (GFC). They gave $1,000 to everybody to spend. The Labour Party is not that generous, are they? They didn\u2019t give a thousand bucks like the Labor Party did. Guess what happened in Australia when the Liberal Party gave that thousand dollars! Everyone just spent it on TVs. It didn\u2019t actually help the Australian economy at all. And if anyone looks back at what the approaches were to the GFC, spending money by giving a payment to a community was seen as the least effective approach. The most effective approach is what the National Party did here, which was actually invest in infrastructure, invest in skills, and invest in the ability for New Zealand to grow its income going forward. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000558\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003EThat\u2019s what this Budget should have done. This Budget should have been a long-term Budget for New Zealand; it shouldn\u2019t have been a short-term Budget to try and pay people off. That\u2019s all it is, and it\u2019s not going to save the Labour Party; in effect, it will do the opposite for the Labour Party: it will create more inflation in the next few months.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u0022f23aa7f5f2a747ef82725d91e90aae7e\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000559\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f23aa7f5f2a747ef82725d91e90aae7e\u0022\u003EASSISTANT SPEAKER (Hon Jacqui Dean)\u003C/span\u003E: Order! Order! I\u2019m going to ask the member to come back to the bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000560\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b9da9808f94848e28b39e1768c3821ed\u0022\u003EHon DAVID BENNETT\u003C/span\u003E: Well, the major part of the bill and the Government\u2019s promise for this Budget is a payment to individuals, and that payment will actually create inflation. There\u2019s no other way to look at it. It\u2019s just going to be spent in consumer spending; it\u2019s not actually for the infrastructure of New Zealand to grow a stronger economy. That\u2019s where Labour\u2019s missed the trick. If they actually wanted to use that money effectively, they should have used it so that we could grow our way and pay our way so we can have the services we want. The services in health and education aren\u2019t going to come from giving everyone a slight payment. That\u2019s not going to do it. The way that the services come is if you increase the tax take by New Zealand having a bigger economy. That\u2019s how you get more services in the country. The Labour Party doesn\u2019t understand the fundamentals of economics.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000561\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003E But there is another thing that those two senior Ministers that are here will actually have known about that the backbench don\u2019t know about yet, and that\u2019s that New Zealand\u2019s probably going to be in recession in a few months\u2019 time. Look at all the other major economies in the world going through a high inflationary environment. All the projections are of recession. And guess why those two senior Ministers didn\u2019t give you that money today! They didn\u2019t give us that money in April near an election; they gave that money in August, leading on, because they knew that was when the recession was about to start. I bet you they\u2019ve got that advice from Treasury and from the Reserve Bank that there is the potential of a recession in New Zealand and they are trying to stave off that recession, because you cannot win an election going into a recession and the Labour Party will do all it can to try and win the election, even if it means misusing New Zealanders\u2019 money. And that\u2019s what they did today. They misused the investments that New Zealanders give to this House. People don\u2019t pay this tax to this House for fun; they work damn hard out there to make the money so this House can make the best decisions for all Kiwis. That\u2019s why we have a Parliament. That\u2019s how the economy works. It is not to be used by a political party for posturing and trying to win votes. In effect, they are actually going to lose votes because all they\u2019re doing is creating more inflation, fastening that chance of a recession coming, and, therefore, ordinary Kiwis will be losing a lot more than the money that they are going to get out of this. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000562\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003EWe\u2019ve heard talk today about what you could actually buy for that kind of money, and it\u2019s little or nothing. Most people know how expensive it is now to get their groceries each week. Most people know how expensive fuel is. We can\u2019t blame overseas all the time. Look at the structural imbalance in the New Zealand economy. What could have been a better way to spend that money? You know, we had Jamie Strange stand up before, from Hamilton. Well, the Labour Party cancelled the road from Cambridge to Piarere. That was $600 million. They actually cancelled\u2014they didn\u2019t go ahead with Southern Links, which would actually be very important for Hamilton, which would be about the same kind of $600 million. There\u2019s two projects there that would have actually been better investments for New Zealand than giving everybody 350 bucks to go buy a TV that\u2019s imported from China\u2014because that\u2019s what\u2019s going to happen. I bet you there\u2019ll be sales at The Warehouse for TVs just at the right price. Every student bar will be setting up nice little packages for students to take advantage of. There\u2019ll be all these little consumer treats that are out there, which the business community will take advantage of the Labour money. The Labour Party have fallen into another trap, and the reason they are in that position is because, first of all, they don\u2019t understand how to make money; they don\u2019t understand how to run an economy. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000563\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003ESecondly, they think you can buy votes. They think the public is stupid. They think they can actually be smarter than the public. That\u2019s the urban academic elite that is the Labour Party. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000564\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003EThirdly, they actually were under pressure. They had no understanding of what to do. They were panicking. But the learned members of the Labour Party\u2019s senior bench were panicking in the last couple of weeks. And the result of that panic\u2014they would have gone to their officials, \u201CWhat can we do? What can we do? What are the options? What can we do in two weeks that we don\u2019t have to do any work on?\u201D And the option would have been: \u201CWell, you can give everyone some money.\u201D That\u2019s it. The Labour Party ticked it off and their poor little backbench sitting there now, stunned as mullets, looking at each other, going, \u201CWhat\u2019s happened to us? We shouldn\u2019t have listened to these two in the front row. We should have actually stood up for our people.\u201D Well, there\u2019s a chance, to the backbench of the Labour Party. There\u2019s a year to go to the election. Stand up for the people in New Zealand; don\u2019t be led by your front bench that are only interested in their own salaries and positions. Actually make sure, if you get to spend New Zealanders\u2019 money, you spend it on things that are good for New Zealand and don\u2019t make all these rash promises. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000565\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003EIn the economic development area, we\u2019ve had Stuart Nash come up with a beautiful promise of $100 million for a banking finance system for small business. It won\u2019t even get off the ground. It\u2019s got no chance. That guy could not sort that out in the next year. They have got no idea. They had this thing for regional and strategic investments that it was to take over from the Provincial Growth Fund. They gave $58 million for it last Budget. They\u2019ve only spent $6 million of that $58 million in the whole year.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u0022c74a07bd916345a3addb9bab15993e78\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000566\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c74a07bd916345a3addb9bab15993e78\u0022\u003EASSISTANT SPEAKER (Hon Jacqui Dean)\u003C/span\u003E: The member\u2019s time has expired.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022 data-id=\u0022633366b9c3904be59f48d02d6232b4ba\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000567\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022633366b9c3904be59f48d02d6232b4ba\u0022\u003EGLEN BENNETT (Labour\u2014New Plymouth):\u003C/span\u003E Well, I stand up for the people of New Zealand, this afternoon, this evening. And, as a Bennett, I think from a village far, far away from the previous Bennett\u2014David Bennett\u2014I am proud to stand here and support this piece of legislation this evening. We\u2019ve had things thrown at us all afternoon, evening, and our previous speaker just talked about us to not be so dumb, that we\u2019re destroying the New Zealand economy\u2014he\u2019s put his headphones in, so, obviously, he doesn\u2019t want to hear this\u2014that we\u2019d fall into the trap. But I just want to say tonight, thank you\u2014thank you to the Hon Grant Robertson for his contribution to not only New Zealand society but to this Budget today. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000568\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022\u003EWhen I look at this Taxation (Cost of Living Payments) Bill, I see our finance Minister responding to need. I see our finance Minister responding to what is going on within Aotearoa New Zealand. This isn\u2019t about polls. One member across the floor said this was made up a couple of days ago. Another member said it was made up six weeks ago. The previous member said it was a couple of weeks ago. This was about responding to need. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000569\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022\u003EI also want to say that another thing that\u2019s been thrown around is about it being rapacious. Now, as a commoner myself, as a working-class member of our community, I had to look this word up, because I didn\u2019t actually quite understand. And they keep throwing this \u201Crapacious\u201D, \u201Crapacious\u201D, \u201Crapacious\u201D. But then it\u2019s about being greedy, about wanting more money or possessions or wanting more. But our Cabinet Minister, our Minister of Finance, is definitely not that kind of person. I think of him as smart, as driven, as compassionate, and having hard-headed compassion to ensure that, at this time when we\u2019re dealing with our challenges, he is responding to need within our community. Now, this is a targeted payment. We\u2019ve heard others talk about this as the 2.1 million or so people. That\u2019s almost twice the population of the South Island that are going to benefit from this payment. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000570\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022\u003ENow, we\u2019ve heard from the Opposition that this is the cost of a flight to Sydney. Someone said earlier that this is a cheap trip to the pub or won\u2019t pay for your Uber Eats for a week. Well, we get abused and told that we\u2019re out of touch with New Zealand society; well, I think it\u2019s the Opposition that\u2019s out of touch, when they\u2019re talking about things like flights to Australia or buying Uber Eats or going to the pub, because the community that I live in, they wouldn\u2019t be looking at flights to Australia right now; they\u2019d be looking at what that\u2019s actually going to help them with, whether it\u2019s helping with a new washing machine, whether it\u2019s going to help them in terms of a trailer load of firewood, whether it\u2019s going to help them with servicing their car or getting a couple of new tyres for their vehicle. This payment is going to serve the people in my community, and I\u2019m grateful for it. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000571\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022\u003EAnd let\u2019s just be clear, $350\u2014but think about a family. Two for my car\u2014it would be two new tyres for my car. So thinking about a family, a couple of parents, $700\u2014$700 that goes into the coffers for a family. So when we say we\u2019re out of touch, I believe it\u2019s the other side, when they\u2019re talking about they\u2019re quickly googling what a flight to Sydney is. Well, my people are googling things that are actually going to help their wh\u0101nau and their communities. I\u2019m proud to be part of this party and proud of this Government that is here to support New Zealanders at this challenging time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000572\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022\u003EIn closing, I just want to mention the Hon Paul Goldsmith, who, again, talks about\u2014you know, he was going on and was complaining, and then he talked about other things, a couple of cheap bus fares and this type of thing; it\u2019s not much at all. But, again, announced today in the Budget was around the community services card, that is there and is going to be half-price bus fares for ever and ever, and I\u2019m grateful for that\u2014that we\u2019re actually addressing, we\u2019re responding, and we\u2019re ensuring that New Zealanders can move forward. It\u2019s not easy, but we\u2019re willing to take a stand. And the Taxation (Cost of Living Payments) Bill is one that I support.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u0022b37b4d56aed84625a149ac622cd71a8a\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the Taxation (Cost of Living Payments) Bill be now read a second time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 67\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32. ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000573\u0022\u003EBill read a second time.\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u0022aef3fba3b3804fa9887218b8dcbe8663\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000574\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022aef3fba3b3804fa9887218b8dcbe8663\u0022\u003EASSISTANT SPEAKER (Hon Jacqui Dean)\u003C/span\u003E: This bill is set down for committee stage forthwith. I declare the House in committee for consideration of the Taxation (Cost of Living Payments) Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000575\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u002241fbb7a9258341aea432bebee57b933d\u0022\u003EIn Committee\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000576\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u00225f940729c2804ad89864ff5c03b0e17e\u0022\u003EPart 1  Amendments to Tax Administration Act 1994\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022 data-id=\u0022c22e63d5ae0a475aba4874bc4ac21dd7\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000577\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c22e63d5ae0a475aba4874bc4ac21dd7\u0022\u003ECHAIRPERSON (Hon Jenny Salesa)\u003C/span\u003E: Members, the House is in committee on the Taxation (Cost of Living Payments) Bill. I remind members that they are able to participate remotely. If you\u2019re on Zoom and want to take a call, please type \u201Ccall\u201D into the chat. You should also use the chat if you\u2019d like to raise a point of order. If we receive new tabled amendments, I\u2019ll advise members so that they can refresh the House papers page to see the new amendment. Finally, it\u2019d be helpful for members to ask multiple questions, if they have them, or if the member\u2019s in charge during the call.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000578\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003EMembers, we come now to Part 1. This is the debate on clauses 3 to 6 Amendments to Tax Administration Act 1994. The question is that Part 1 stand part.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022 data-id=\u0022553604521b8f4437a069fbf9602c7cb6\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000579\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022553604521b8f4437a069fbf9602c7cb6\u0022\u003ESIMEON BROWN (National\u2014Pakuranga):\u003C/span\u003E Well, thank you, Madam Chair. I appreciate the opportunity to take a call on the Taxation (Cost of Living Payments) Bill, which is now at the committee of the whole House stage. It\u2019s quite ironic that this particular Part 1, which is about interpretation and setting up the cost of living payments scheme, is even called the \u201Ccost of living payment scheme\u201D. It says \u201Cto provide financial support to certain low and middle income persons affected by an increase in the cost of living\u201D. Well, quite ironically, it\u2019s a $1 a day payment, actually less than a dollar a day payment. It says here \u201Caffected by an increase in the cost of living\u201D. I\u2019m not sure whether this Government actually understands what is happening in New Zealand right now with the cost of living. In fact, all the one-termers over the other side who\u2019ve been taking calls in the previous debates, trying to explain how much they care\u2014how much they care. This was only dreamt up two weeks ago. This Government doesn\u2019t care. They\u2019re just reacting and responding because the reality is that New Zealanders are facing a cost of living crisis.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000580\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EI note the clause doesn\u2019t even say \u201Ccrisis\u201D\u2014doesn\u2019t even say \u201Ccrisis\u201D. They can\u2019t even bring themselves to say \u201CNew Zealanders are facing a cost of living crisis\u201D. It just says address the increase in the cost of living, and it stops there\u2014address the increase in the cost of living, stops there. New Zealanders are facing a cost of living crisis, and today\u2019s Budget, which this bill is part of, does nothing to address the real issues facing many, many New Zealanders. The fact is 7 percent inflation in New Zealand, brought about by a Government which printed billions and billions of dollars of cash and which has been, frankly, irresponsible, wasting money\u2014wasting money left, right, and centre\u2014and now is coming to this House with a $350 payment; quite irresponsible, and, quite frankly, out of touch with the needs of New Zealanders. So I ask the Minister in the chair, why doesn\u2019t he actually just say the word? New Zealanders are facing a cost of living crisis.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000581\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EWhy does the piece of legislation not actually address the real issues that New Zealanders are actually facing? That real issue is actually the fact that we need proper tax relief, and the fact that this Government is constantly taking more and more taxes because they are not adjusting the tax thresholds. National has put forward a plan, a very comprehensive plan, which addresses the real issue in our tax system, which is about actually saying inflation is meaning that while New Zealanders\u2019 incomes are going up, inflation is going up faster, and that their tax system means they\u2019re paying more tax despite them going backwards. So, National is saying: actually, it\u2019s time to have a comprehensive look at those tax brackets and make sure that they reflect the increase in inflation, and to ensure that New Zealanders actually keep more of what they earn.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000582\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EThis Government has come to New Zealanders today and said, \u201CWe know best. We know how much money you need. You need $350. Oh, only these people over here, we\u2019ll give you $350, and then that\u2019s it. And we\u2019ll give it to you over a three-month period, in three different instalments. And by the way, we\u2019re going to hire 750 people\u2014750 people\u2014to manage, at IRD, that process.\u201D What about this old-fashioned principle of actually saying \u201CNew Zealanders, we trust you, and we\u2019re going to let you keep a little bit more of what you earn because you know best where the cost pressures are in your life, you know best what is needed, and you know best how to get through this cost of living crisis.\u201D \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000583\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EOn this side of the House, we actually back New Zealanders, we believe in them, and we actually want to see good policy which actually provides a sensible solution, not the simple, simplistic, socialistic approach put forward by this cost of living payments scheme\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000584\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022815ec07b54244dc8b5a32753c83bba11\u0022\u003ECHAIRPERSON (Hon Jenny Salesa)\u003C/span\u003E: Does the member have a question of the Minister?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000585\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002247830b891a574774bcfcdb43a2c87be8\u0022\u003ESIMEON BROWN\u003C/span\u003E: The question is around: why is the Minister not actually addressing the cost of living crisis and not even referring to it in clause 4(2), which says \u201Ca cost of living payment scheme\u201D. He doesn\u2019t even say \u201Ccrisis\u201D\u2014doesn\u2019t even say \u201Ccrisis\u201D. That\u2019s the reality of New Zealanders out there in the main streets and in the towns up and down New Zealand and the suburbs of our cities. This bill doesn\u2019t even address it. I ask the Minister: why is this Government not even mentioning the word \u201Ccrisis\u201D?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022 data-id=\u00222a03192296ea4e639b2e46187fb87a38\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000586\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00222a03192296ea4e639b2e46187fb87a38\u0022\u003ECHRIS BISHOP (National):\u003C/span\u003E Thank you very much, Madam Speaker. Look, this is the first of what I\u2019m sure will be many calls on this very tricky piece of legislation. I do have a couple of points I want to make. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000587\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EThe first is that I just want to say to the Minister, quite seriously, it is disgraceful that the bill contains a statement about the regulatory impact statement (RIS) that says that the supplementary analysis report, which members can find on the floor of the House\u2014the bill says that the copies are on two particular websites, the tax policy IRD website and the Treasury regulatory impact statement website. Neither of those websites have the RIS on it, as of about half an hour ago. In particular, they didn\u2019t have them on it at 2 o\u2019clock, when the bill was tabled for the first time. The Opposition saw this bill\u2014sorry, at 4.30, once the urgency motion was moved. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000588\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003ELook, it\u2019s Budget. It\u2019s fair enough. Governments, including past National Governments, have tabled legislation urgently and we ran them through the House, and it\u2019s probably a very poor lawmaking practice, but I wouldn\u2019t be churlish and complain about it because National used to do it as well. But I don\u2019t think it\u2019s unreasonable that members have opportunity to scrutinise the supplementary analysis report. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000589\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003ESo we got access to it because it was finally placed on the floor of the House later on, or later in the bill\u2019s first reading. I, for one, while the Minister was giving his speech, tried to look up the regulatory impact assessment report, desperately trying to see some stuff in it, and it wasn\u2019t online. I went to the tax policy website and it\u2019s not there, and I went to the Treasury website and it\u2019s not there, and it wasn\u2019t on the floor of the House. So we had the first reading debate without it. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000590\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EThat\u2019s a shame, because as the Minister knows, and as Matt Doocey pointed out, there\u2019s a lot of stuff in the supplementary analysis report, most notably the fact that the IRD said, \u201CDon\u2019t give this job to us.\u201D and the Treasury said, \u201CDon\u2019t do it at all.\u201D So I would have thought that was, like, some pretty interesting information that Parliament would want to know about. The Treasury said, \u201CThe IRD should do this.\u201D, and the IRD said, \u201CNo, no, no, we don\u2019t want anything to do with this.\u201D You know what else they said? They said this will have a significant impact on our services, including for the very people the payment scheme aims to help, because they\u2019re the very people who contact the IRD and say, \u201COh, look, I need a bit of help with this and I\u2019ve got some issues here.\u201D \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000591\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EWhat the supplementary analysis report shows is that those people are going to be affected, because there\u2019s going to be a significant number of front-line staff to deliver the payment, and it\u2019s going to be extremely tricky. It\u2019s going to \u201Ccompromise Inland Revenue\u2019s already stretched workforce and affect the taxpayer population,\u201D\u2014I\u2019m quoting from the supplementary analysis report\u2014\u201Cincluding the families and individuals that this payment would be intended to support.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000592\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003ESo it says, \u201CWhile Inland Revenue can administer the payment\u201D\u2014which is fair enough, I suppose, because they\u2019re a Government department, they do a great job, and they move heaven and earth to help the Government\u2014\u201Cdoing so will significantly impact their services to its customers.\u201D So that is pretty material information that the Parliament has a right to know about. So that\u2019s my first point, and I\u2019m pretty unhappy about it, and I would welcome the Minister\u2019s comments. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000593\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EThe second point is a genuine point, and it goes to the departmental disclosure statement, which was available on the floor of the House. Now, we\u2019ll get into the time issues later, and I\u2019m sure members are going to want to explore when exactly this bill started to be developed, because poor old Glen Bennett said, \u201COh, no, look, this has been planned for ages.\u201D It\u2019s in the Government documents that it was come up with in the last two weeks. Let\u2019s just put aside the facade that this this was some well-organised and executed plan to assist New Zealanders with the cost of living. Let\u2019s just not joke with the House. We all know exactly how this worked. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000594\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EBut my question for the Minister is: why is this legislation required? I know that sounds funny, but if you read 3.6 of the departmental disclosure statement, there\u2019s actually quite a serious policy discussion around, basically, cutting a long story short, whether or not the bill\u2019s required. I draw the Minister\u2019s attention to the Legislation Design and Advisory Committee, who were asked by the IRD officials for their view on whether the eligibility criteria should be set out in secondary legislation or in an administrative notice. The LDAC, as they\u2019re called, says, basically, \u201COn balance, we think the balance is slightly tilted in favour of treating this as an administrative scheme, principally due to its nature as a short-term response to its immediate problem\u201D. Well, as I understand it, that\u2019s not what\u2019s happened. The question for the Minister is why the Government\u2019s done what they\u2019ve done.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u002212f93a87652441eaaecb6165ff3cf207\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000595\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002212f93a87652441eaaecb6165ff3cf207\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E In respect of Chris Bishop\u2019s question about the time of tabling of the disclosure statement, I\u2019m advised that the documents were provided to the Bills Office\u2014Bills Office or the Clerk\u2014yesterday, and that there\u2019s been no attempt to delay the tabling of that document on the floor. So it wasn\u2019t because it wasn\u2019t provided late by the department.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022 data-id=\u00224e3b7314c5d042959e6a8bcaf24fb221\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000596\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00224e3b7314c5d042959e6a8bcaf24fb221\u0022\u003ESIMON WATTS (National\u2014North Shore):\u003C/span\u003E Madam Chair, thank you very much for the opportunity to take a call in regards to this bill. I know my colleague Chris Bishop is, no doubt, going to come back and ask a few more questions in regard to the point that was just raised. I want to ask some questions, and I actually have a series of 10 or so questions, so I\u2019ll take your advice the way in which we do that. I\u2019m referring to new section 7AAA, \u201CAdministration of the cost of living payment scheme\u201D, inserted by clause 5. My question relates to subsection (3), which specifies that \u201CThe commissioner must publish, on an internet site \u2026 the eligibility requirements\u201D. My question to the Minister is: when can taxpayers expect to see that information published? So that\u2019s the first question, and I\u2019ll go on for a couple more and then we\u2019ll go from there.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000597\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EThe second element is in regards to the explanatory note of the bill. The explanatory note contains the term \u201Cmain eligibility criteria.\u201D So my question to the Minister is: what else is missing? \u201CMain eligibility criteria\u201D implies that there are elements outside of that. So my question, quite simply, is: what else is missing from that?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000598\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EFor this series, I\u2019ll finish off on this last question: can the Minister confirm that the income amount is $70,000 or less? In the Budget speech that the Minister of Finance gave today, he said that this payment will be available to people aged 18 and over who earn below $70,000 per annum, based on last year\u2019s tax data, and who are not eligible for the winter energy payment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000599\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EI want to note\u2014and members may think this is quite a small detail, but it goes along with the theme that it is our belief, based on the information we\u2019ve got in front of us, that this bill has been pulled together at late notice and on the hoof. So I ask again: who is qualified to get this payment? Is it those on an income amount of $70,000 or less, or is it, as the finance Minister quoted today, below $70,000? I\u2019ll leave it at that series of questions.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022adf88ad88d834584a571ccb5f069a465\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000600\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022adf88ad88d834584a571ccb5f069a465\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E I\u2019m advised that the criteria will be published shortly after enactment\u2014so very close to enactment. On the question as to what\u2019s left, what\u2019s left is minor administrative detail, and the example that officials have given me is that what might be the date that\u2019s chosen for assessing whether someone is a resident or not for tax purposes to qualify or what might be the way administratively they choose to define when someone\u2019s going on or off benefit. It is that level of administrative detail, rather than the level of the payments.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022 data-id=\u0022e135be8fd49846fe98b8a32f595bf0e6\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000601\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022e135be8fd49846fe98b8a32f595bf0e6\u0022\u003ECHRIS BISHOP (National):\u003C/span\u003E Well, thank you very much, Madam Chair. I\u2019ve got another question, but I want to return to the point I made before which is\u2014it\u2019s sort of neither here nor there whether the material was supplied to the Bills Office. The point is, the bill\u2014which, as I say, we got a copy of at 4.30 p.m. If you watch the video, you can see the Minister move the urgency motion, and the Clerk came in and put the bills down, and we all went and raced to see it because, you know, we had literally six minutes to read it. I\u2019m not making a point about that, because successive Governments have done that since time immemorial, and it would be churlish to complain about it. But I just make the simple point that the bill explanatory note\u2014[Interruption] What\u2019s that? \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000602\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002266a510c27c3842f3a6f2377503ef2b18\u0022\u003EHon David Parker\u003C/span\u003E: You are whinging about it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000603\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022364f7c60e5ba45368cb233d817bf1c65\u0022\u003ECHRIS BISHOP\u003C/span\u003E: No I\u2019m not. I\u2019m whinging about the fact that I don\u2019t think it\u2019s unreasonable as a Parliament\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000604\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022ef8641678a4144ed816d28575ea2dcc9\u0022\u003EHon Members\u003C/span\u003E: He\u2019s whinging. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000605\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022bd3c9ef053a140489dcebfe6cd53b163\u0022\u003ECHRIS BISHOP\u003C/span\u003E: Well, OK. Well this is a serious point\u2014members might want to laugh but this is a serious point. It is not unreasonable, as a parliamentarian, to expect that when you read an explanatory note of a bill which you have seven minutes to read, that if you go to the websites that the bill directs you to, the things that are meant to be on the website that the bill says are on the website are there. That is a simple proposition; it\u2019s not unreasonable, and I just make that point. I won\u2019t belabour the point any more, but I hope the Minister takes it on board because it\u2019s poor decision-making and poor policy-making. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000606\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003EThe question I wanted to ask was\u2014this, basically, defers the decisions as to eligibility to the Commissioner of IRD. And it\u2019s a simple question, which is: what if the commissioner decides that the eligibility threshold\u2019s not 70,000 or below? It\u2019s Government policy that it be that, but what if it\u2019s not what the commissioner decides? So how does that work? Because this is a highly unusual way of implementing a Government policy-making decision. There may be a simple answer to that, and it may be that I\u2019ve just overlooked it, but I\u2019d just welcome the Minister\u2019s guidance on that.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u00220df6b24cc9914dd09333a1065f55f6fa\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000607\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220df6b24cc9914dd09333a1065f55f6fa\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E In respect of the timing of that document that the member wanted to see on the web not being available on the web\u2014I hear his complaint. It has been tabled on the floor of the House the whole time, so it was available to members in the House. And I suspect that the reason why the exact timing doesn\u2019t line up on the web compared with in the House is that the department would not have wanted to put it up early accidentally and break the Budget\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000608\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022817f61366f314852901be8083862bd4d\u0022\u003EChris Bishop\u003C/span\u003E: It\u2019s still not online now\u2014it\u2019s still not online now.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000609\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b08b2a9e080b4db2880cc5dad015b7cd\u0022\u003EHon DAVID PARKER\u003C/span\u003E: Well, that is of no moment to the member because he\u2019s got the physical copy that he\u2019s read\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000610\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022bb4c763de4c64f17bd3501f3fe6dbc21\u0022\u003EChris Bishop\u003C/span\u003E: What about people watching? What about the public?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000611\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022f9c776a165be4c11a020f2e5069d06fb\u0022\u003EHon DAVID PARKER\u003C/span\u003E: Well, actually, they\u2019re not debating the bill. [Slamming sound] Oh, literally throwing his toys there! In respect of the idea that the commissioner might somehow change the criteria, the commissioner has no such discretion. These things are set by the Government.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022 data-id=\u002208ff75e9ea4a4715a21bc90c9393e697\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000612\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002208ff75e9ea4a4715a21bc90c9393e697\u0022\u003ERICARDO MEN\u00C9NDEZ MARCH (Green):\u003C/span\u003E Thank you, Madam Chair. So my questions to the Minister arise from the intent of the bill, as laid out in the general policy statement, as well as some of the speeches we\u2019ve heard from Labour Party MPs. It has to do around the intent of providing relief for people facing cost of living pressures, and specifically the mention of eligible low-income individuals. It\u2019s clear that the bill doesn\u2019t set clear criteria about who this bill is supposed to get the $350, and that\u2019s going to, sort of, be decided outside of the bill. But it is clear to me, reading the explanatory note in the bill, that the Government intends to exclude people on the benefit, as they already receive the winter energy payment. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000613\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003EWhat I want to understand is: does the Minister believe that people on the benefit are not facing cost of living pressures? Despite the increases to benefit, they continue facing those cost of living pressures. I\u2019m also thinking about under-18s who may be in paid employment. The way that the explanatory note is set out in the intent of the bill seems to be to exclude under-18s who may be doing paid work. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000614\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003ESo I want to understand what the Minister\u2019s intent is regarding (a) the exclusion of people on main benefits, the exclusion of under-18-year-olds who may be doing paid work, and what the reasoning was to aim to exclude those groups. Does he not think that they\u2019re facing cost of living pressures, and whether broadening, perhaps, the intent of the bill to include them would support more New Zealanders, as spoken about by many of his colleagues? So this is why we\u2019ve put a tabled amendment around making it really clear that this bill should actually be including people on main benefits, and also people who may be superannuitants who may be struggling. I want to note, as well, that many of our over-65s who may be in rentals are facing massive cost of living pressures, and those pressures exist despite the winter energy payment. So is it his intent to exclude those people, and why?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022a36f0c1c9fa8402c86926a4ceff9ea22\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000615\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022a36f0c1c9fa8402c86926a4ceff9ea22\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E Yes, that is the design of the scheme. The view of the Government is that this was properly targeted to those that aren\u2019t on benefits. The member will be aware that, in addition to inflationary increases of adjustments to benefits, there have been increases to benefits a number of times under this Government. At this time of year, also, those people are entitled to the winter energy payment. This is struck on the basis of half the rate of the winter energy payment for a couple and is directed to those people who don\u2019t get it. As a consequence, we won\u2019t be voting for the member\u2019s tabled amendment in respect of a bill in which they\u2019re abstaining.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022 data-id=\u0022c3c74ee08f7b4658b0621c8a38419d22\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000616\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c3c74ee08f7b4658b0621c8a38419d22\u0022\u003ESIMEON BROWN (National\u2014Pakuranga):\u003C/span\u003E Thank you, Madam Chair, for the opportunity to take another call on Part 1 of this bill. The question I have is in regards to clause 5, new section 7AAA, which, effectively, ensures that the Commissioner of the IRD has the role to administer the cost of living payments on behalf of the Crown. And I just want to note in the supplementary analysis report, which we have here, the advice which says that the Treasury has advised that strong aggregate demand, combined with constrained supply and a tight labour market, will result in inflation staying above target in the near term.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000617\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EAnd then I wanted to turn back a couple of pages where it mentions that this particular policy is going to require around 750 staff to operate\u2014750 staff to operate. So my question to the Minister is: we have a tight labour market, and you\u2019re going to find 750 people in a very tight labour market and make the tight labour market tighter? Have you considered whether this actual policy is inflationary and whether it\u2019s actually going to put more pressure on the tight labour market, and, if so, what is the impact that this is actually going to have? Because the reality is this seems to be a policy looking for some sort of solution, dreamt up on the back of an envelope at about 11 o\u2019clock at night two weeks ago, without actually thinking through the consequences. And the reality is: has the Minister had some advice from the IRD as to whether they\u2019re confident they\u2019ll be able to find 750 people to be able to actually administer the particular policy?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000618\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EI already note that in the supplementary analysis, it says that up to a quarter of the people receiving payments may not be able to receive them within the time frames, due to the fact that the IRD might not have sufficient information about their particular tax details. So we may have a situation where a quarter of the people aren\u2019t going to be able to actually get their payments in the time frame because the IRD doesn\u2019t necessary have all the information to be able to process it. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000619\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EAnd then you\u2019ve got the problem of 750 staff being required to come on board in a very short period of time before August to assess millions of applications to actually see whether they\u2019re\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000620\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022219c2395510a48dbbf24196a28619648\u0022\u003ESimon Watts\u003C/span\u003E: 2 million.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000621\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022f71ce3bc12f94029a7425afe1e13408e\u0022\u003ESIMEON BROWN\u003C/span\u003E: How many times did you say?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000622\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a7b0a2d4607c40bab6ea01fa56fc93d4\u0022\u003ESimon Watts\u003C/span\u003E: 2 million.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000623\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b40c479abd884c98b251fe556d886195\u0022\u003ESIMEON BROWN\u003C/span\u003E: Two million\u20142 million applications, and then make a number of assessments for every application to make sure that they are eligible for every one of those three payments. This is a bureaucratic nightmare\u2014it\u2019s an absolute bureaucratic nightmare.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000624\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EI just wonder: did the Minister potentially ask for some advice as to whether maybe adjusting the tax thresholds might have been slightly more efficient? And, actually, not only efficient for the IRD\u2014maybe they might not have had to hire as many people\u2014but also maybe, actually, that would have given taxpayers the ability to decide how they spent their own money, rather than taxes being taken off people, and then people having to apply for a complicated process to get three payments of $117 over three months, to then come back, once they\u2019d filled out the appropriate tax documents and proved that they were residents and that they\u2019d been earning under a certain threshold, and that they weren\u2019t in prison or dead and all of the other things which are required by the rules in this process, and then get some money back. That is the definition of socialism, and the definition of a Government which believes that they have control, they want control, \u201CIt\u2019s our money\u201D\u2014it\u2019s the Government\u2019s money. They are the ones who have the money. They are the ones who own the money.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000625\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EWell, actually, it\u2019s taxpayer\u2019s money. They worked hard for this money. They worked hard to earn it. They worked hard so that they could try and get ahead, and they give money to the Government through the tax system because they believe it will be for the benefit of all New Zealanders so that they can get the services that they need, not for this Government to use it like a play thing and just build bureaucracies. I ask the Minister to answer some of those questions around the implementation of that policy.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u002282f24d9a82fa440dbc3040cd16a2c2f0\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000626\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002282f24d9a82fa440dbc3040cd16a2c2f0\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E To the extent that I could ascertain questions in that contribution, there was an assertion there that people eligible for the payment have to make an application\u2014that\u2019s not the case. The payment is made administratively by the department for those who are entitled to it; they don\u2019t have to apply. In respect of the administrative functions that we need people to carry out, one of the main functions is to gather bank account numbers. We\u2019re anticipating that people who want this payment will want to give us their bank account number because they will want the payment. So we don\u2019t think that\u2019s going to be onerous, except that the number is about\u2014there\u2019s a large number of people for whom we need bank accounts.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000627\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of the question as to whether this is inflationary and did we give consideration to that, of course we did. And on our analysis, we realised that this would not be nearly as inflationary as policies that would give CEOs earning large amounts tax cuts every year of $270,000 per annum. Not an income tax policy that we would favour, but we know that the National Party would. So we find their concerns about the inflationary effects of what we\u2019re doing for low and middle income earners to be crocodile tears.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00225b6b1d74-9e5e-42ba-a922-85b0ea7f5ab6\u0022 data-id=\u0022fffb9c281b16413ba254aec9aca98d96\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000628\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225b6b1d74-9e5e-42ba-a922-85b0ea7f5ab6\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022fffb9c281b16413ba254aec9aca98d96\u0022\u003ESIMON O\u2019CONNOR (National\u2014T\u0101maki):\u003C/span\u003E Thank you, Madam Chair. Always a welcome chance to take one\u2019s mask off. Let\u2019s see what happens from here, shall we?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000629\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225b6b1d74-9e5e-42ba-a922-85b0ea7f5ab6\u0022\u003EA couple of questions for the Minister. I\u2019m interested, actually, to pick up on a question of Chris Bishop\u2019s from earlier on. I\u2019m wondering whether the Minister in the chair has spoken to the Minister for the Environment to understand how many more trees have had to be culled tonight in order to provide paper-only copies, when we could have\u2014people like myself; I\u2019d love to have gone online\u2014I\u2019d love to know if he\u2019s had a conversation with that Minister, and, in particular, what the Minister for the Environment said to the Minister in the chair.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000630\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225b6b1d74-9e5e-42ba-a922-85b0ea7f5ab6\u0022\u003ESecondly, I\u2019d be really interested\u2014and it\u2019s always to do with Part 1 but it\u2019s in the policy background. He notes, to get this payment, you are not to be \u201Cincarcerated\u201D. Always really useful. The only problem, what does \u201Cnot incarcerated\u201D mean? I\u2019m not actually trying to be stupid. There\u2019s multiple elements to this. Does that include people in remand? Is that people who are sentenced? Does that include or exclude people who are on electronic bail or people who have been bailed?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000631\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225b6b1d74-9e5e-42ba-a922-85b0ea7f5ab6\u0022\u003EFinally, I\u2019d like to know: it\u2019s not quite a constituent but a Donna Summer has written and she says she works hard for her money\u2014she says, once again, she works hard for her money. And does he believe that he\u2019s treating her right?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u00221aadcead6c344fe29e5cec4f84e4e2de\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000632\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00221aadcead6c344fe29e5cec4f84e4e2de\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E I\u2019m not going to respond to that last flippant remark. In respect of the question is, did I ask the Minister information about the number of trees? No, that would have been a stupid question because it\u2019s obvious the answer is zero. I didn\u2019t need to ask the Minister for the Environment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000633\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of the question, which is a proper question, about what does \u201Cincarcerated\u201D mean, it means people who are in custody. That could be someone who is on remand in custody. If they\u2019re not in custody on remand, then they wouldn\u2019t be included in the incarcerated. If they\u2019re in prison, yes; if they\u2019re on home detention, no.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000634\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022930e8bdd2f0b43f493d6ff20a7b2a8c7\u0022\u003EChris Bishop\u003C/span\u003E: That\u2019s going to be easy to work out.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000635\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022546a97f3773f471693280c4c3846125c\u0022\u003EHon DAVID PARKER\u003C/span\u003E: Well, that information is already shared by Corrections with Inland Revenue.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002286ae9a20-33bd-4912-8dc1-5b4eb670be44\u0022 data-id=\u0022aadd7afa7a37427f8ab1f10ee9a00b44\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000636\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002286ae9a20-33bd-4912-8dc1-5b4eb670be44\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022aadd7afa7a37427f8ab1f10ee9a00b44\u0022\u003EKAREN CHHOUR (ACT):\u003C/span\u003E Thank you, Madam Chair. I just had a couple of questions for the Minister around the targeting that you\u2019ve been talking about\u2014saying this is a targeted payment. The scenario in my household would be an extra $1,400 coming into my household, with four children living at home over the age of 18 who will all be eligible for this payment. Is the Minister confident that that is targeting the payments to people in need?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000637\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002286ae9a20-33bd-4912-8dc1-5b4eb670be44\u0022\u003EAnd my other concern is that this will be done automatically, and will there be an option for people to opt out if they feel that they don\u2019t need this money?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u0022a252527653714c6db18e86ea069ff160\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000638\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022a252527653714c6db18e86ea069ff160\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: Simon Watts.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022 data-id=\u0022a53f075a8cd645d28bb7b00bb2ad6fc1\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000639\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022a53f075a8cd645d28bb7b00bb2ad6fc1\u0022\u003ESIMON WATTS (National\u2014North Shore):\u003C/span\u003E Madam Chair\u2014sorry.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000640\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00223e5601c7aa8545dba52d13fb34879cad\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: Sorry, I\u2019ve called Simon Watts.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000641\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00223297c5f9f8814b168041e2aaa8493367\u0022\u003ESIMON WATTS\u003C/span\u003E: Yes, thank you, Madam Chair. I just saw the Minister stand up at the same time, and we\u2019re going to play a bit of up and down yo-yo, but that\u2019s OK.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000642\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EThe question I have in regards to clause 5, inserting new section 7AAA, and I said I\u2019ve got a series of questions, so I\u2019m continuing on with that. Inland Revenue will administer the payments based on information that they hold, and so my series of questions relates to that point. Can the Minister confirm that Inland Revenue holds date of birth information for all individuals in the country that are over the age of 18\u2014quite a simple question, right? But the criteria of this bill is that anyone over the age of 18 is eligible. So my question is: does the Inland Revenue hold that information? If they don\u2019t, well, we\u2019ve got a little bit of a problem.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000643\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EMy second question is around the Inland Revenue and the Ministry of Social Development, and I\u2019m interested to know whether there\u2019s existing information-sharing arrangements, between those two entities, which cover specifically the winter energy payment, because, of course, looking at the criteria, that is one of the exclusion factors for getting this payment. So if that information sharing isn\u2019t in play, Inland Revenue will not have the ability to assess criteria, and we know that that\u2019s not often a reason why this Government don\u2019t make payments out to people, but that is another important aspect.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000644\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EThe last question in this series here is: will the Inland Revenue be proactively contacting individuals before 1 August, which is the date on which this is, in order to ensure that, proactively, they hold all the necessary information to be able to make a payment\u2014for example, asking taxpayers to update their myIR to check that the Inland Revenue holds the correct bank account details, so they can actually get their payment of $27 a week, which, as I said, is 9 litres of fuel in a Toyota Corolla per week; 20 percent of a tank of gas.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000645\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00226abedbb6f303426e82c8a051c98528ed\u0022\u003ESimeon Brown\u003C/span\u003E: 9 litres?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000646\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00222d11d714eb6d4f09b46a889eff348b8b\u0022\u003ESIMON WATTS\u003C/span\u003E: That\u2019s it, Simeon Brown. So those are my three questions, and I\u2019d appreciate the Minister\u2019s response.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u00229104d8f467d84b86bcee22b3316b9697\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000647\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00229104d8f467d84b86bcee22b3316b9697\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E Referring first to the ACT member\u2019s question in respect of the question as to whether people can opt out, yes they can; there\u2019s provision for that.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000648\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of the targeting, we are aware that on occasions, there will be a number of people in a household earning less than $70,000, who are over 18 years of age, who will get the payment, and that is our intention. We would note that, overall, this will be better targeted, than, we would suggest, alternative tax cut policies from the member\u2019s own party.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000649\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of the issue as to the collection of bank accounts, there will be social media campaigns\u2014well, not campaigns; that\u2019s the wrong word: information presented to people in order to encourage people to provide their bank account details through myIR, or, if they can\u2019t do it that way, by way of contacting Inland Revenue through other channels.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u00223e4d224df651468ca69e17c80bb974d7\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000650\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00223e4d224df651468ca69e17c80bb974d7\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: Matt Doocey.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022 data-id=\u002221cd5463d98f4938a09448ca17260337\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000651\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002221cd5463d98f4938a09448ca17260337\u0022\u003EMATT DOOCEY (National\u2014Waimakariri):\u003C/span\u003E Thank you very much, Madam Chair. I think that was a very good choice, personally.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000652\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003ELook, I\u2019m sure you\u2019ll agree that without having the select committee stage, there would have been a number of questions we would have liked to have asked the advisors, so I\u2019m hoping I can take an exploratory route into some of the key areas especially that are coming up, in this first stage, with the supplementary analysis. I think I want to take the opportunity, with the Minister for Youth in the Chamber, as well, to understand what discussions went on about why under-18s who are living independently and working were excluded from this payment. I\u2019m sure the Minister for Youth would have advocated for them to be included, so it would be interesting to work out why that was not agreed with, because, of course, there will be a number of young people under 18 who will be in the position where, quite rightly, they should be entitled, but they\u2019re 16 or 17 and maybe not 18. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000653\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003ELooking at some of the advice in this document, it does say inflation has risen over the past year and is expected to be widespread and to persist in the future. This makes a one-off payment a poor mechanism for supporting households with a longer-term problem. So I\u2019d be interested to hear from the Minister why they are pursuing against the advice. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000654\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EThere\u2019s an interesting comment under the executive summary where it talks about other Government priorities that could be pursued using the funding for this payment\u2014for example, initiatives that more directly impact on the interim child poverty targets. So, again, that would be interesting just to hear a bit more about the conversations behind that of why they didn\u2019t pursue something that maybe was more targeted and linked in to child poverty targets, as well. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000655\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EAs has been referenced in previous discussion, but just to hear from this Minister, why it was continued with the Inland Revenue as the delivery agency, considering they weren\u2019t that interested in doing that. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000656\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EAnd, if I may, the final comment is under \u201CLimitations and constraints of analysis\u201D. It says, \u201CThere is a risk that significant issues with the resulting proposal have not been identified.\u201D And this is to do with the compressed time lines. It would be interesting to hear from the Minister about how he\u2019s going to mitigate those significant issues so we don\u2019t have any problems with implementation.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022c9318bcacc1e4fe3ac362623955a887a\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000657\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c9318bcacc1e4fe3ac362623955a887a\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E It is a deliberate design of the scheme to have it for people who are 18 or over and not younger, and we\u2019re not proposing to change that. I don\u2019t know if the member has a tabled amendment to that effect, but if he did have it, we would oppose it. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000658\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of the issues as to whether there are outstanding issues that are unforeseen, that\u2019s always possible as was outlined in the document that the member quoted from, but we\u2019re confident that there are no major issues that we\u2019ve overlooked.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022 data-id=\u0022e7ffefd1f67b47f180df1079dcd815c6\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000659\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022e7ffefd1f67b47f180df1079dcd815c6\u0022\u003ESIMON COURT (ACT):\u003C/span\u003E Thank you, Madam Chair. Minister, I have four questions, but I just want to offer a perspective first. You\u2019ve chosen\u2014the Government has chosen, through the Chair, to offer a $350 tax rebate to people earning $70,000 or less, who fulfil the criteria you\u2019ve set out. While it\u2019s laudable that the Government does recognise that there is a cost of living crisis, and that it\u2019s a struggle for the economy, it\u2019s a struggle for communities, given the increasing costs\u2014whether it\u2019s fuel, whether it\u2019s energy, building materials, the fact that even the Infrastructure Commission says it\u2019s taking so long to get resource consents\u2014it\u2019s added billions and billions of dollars on to the cost of delivering infrastructure and homes over the past four to five years, which is primarily the term that this current Labour-led Government and the previous Labour coalition Government have been in power. So it seems like the cost of living crisis\u2014while there may be other things the Government can point to\u2014can largely be sheeted home to a series of policy failings or failing to address issues in a timely manner, Minister. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000660\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003EBut, thinking about what caused the cost of living crisis\u2014and, of course, we have a significant increase in the cost of energy, we have a significant increase in the cost of transportation fuels which are contributing to the pressure on household budgets\u2014I\u2019m wondering: did you consider ACT\u2019s alternative budget, which would have changed the tax rates so that those earning up to $70,000 would have actually received a tax cut that would have given them over $2,000 in the hand, using the ACT tax formula which limits the two tax rates to 17.5 percent and 28 percent? So, Minister, you\u2019ve offered\u2014through this bill, through this amendment to the Tax Administration Act\u2014a $350 one-off payment, and so I\u2019d like you to consider how that contrasts with ACT\u2019s proposal to limit Government spending and allow a $2,000 tax rebate for people like nurses or teachers in the middle of their career, which is, typically, what they would earn\u2014those middle-income earners who supported us through the COVID epidemic\u2014pandemic, if you like\u2014and who continue to do it tough out there on the front lines. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000661\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003ESo I have four specific questions for you, Minister: will people who are self-employed be eligible for this payment, who earn $70,000 or less on an annualised basis, as set out in this proposed amendment to the Tax Administration Act; if so, on what criteria will that eligibility be based? Will it be during the time period 2021-22 when they\u2019ve issued invoices, or will it be when they\u2019ve received payments? Because what we know right now is that many, many businesses are suffering from cash-flow issues because their customers are unable to pay on time. So it\u2019s absolutely vital that we understand, Minister: will the eligibility for small business\u2014if they\u2019re eligible\u2014and for self-employed people allow them to base that on cash flow, cash received, rather than invoices? \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000662\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003EMy second question is: did the Minister consider any other ways to help Kiwis facing a cost of living crisis, particularly with their energy and transport fuel bills? For example, the ACT Party have proposed that the emissions trading scheme revenues\u2014the billions that this Government, supported by the Green Party, had proposed to allocate to business, to buy them out of their coal-fired boilers, or to Auckland Council to buy them electric ferries to compete with Fullers Ferries, who\u2019ve just bought their own hybrid electric ferry, a fantastic thing that can go right round the Hauraki Gulf, it\u2019ll be able to reach places that the Government-sponsored ferries couldn\u2019t ever possibly hope to reach. They can only go between downtown Auckland and Devonport\u2014now, that\u2019s all you\u2019d expect from a Government service, wouldn\u2019t you? It would be half-baked. It\u2019d be mediocre. It\u2019d be 10 times the price. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000663\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003EMinister, did you consider offering Kiwis a carbon tax rebate of $250 per person or $1,000 for a family, on top of ACT\u2019s $2,000 tax cut for middle-income earners up to $70,000? And was this policy modelled? Was there any modelling as to whether this would have a benefit to individuals or to the wider economy based on this money coming out of the COVID Response Fund, and what is the Minister\u2019s response to Treasury who have asked, forgive me\u2014[Time expired]\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u00227014cb601fd74b6d8f1e46a774b3094d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000664\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00227014cb601fd74b6d8f1e46a774b3094d\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E Thank you, Madam Chair. As to the member\u2019s question as to whether we considered a tax cut of $2,000 per person instead of this amount, no, we didn\u2019t because we knew that would, if there was responsible fiscal management at the same time, require very substantial cuts in public services. We would also note that we don\u2019t think most New Zealanders agree with that as a policy prescription, because they know full well that the Government has had to draw down on taxes and some increased debt in order to fund the support needed to get people through COVID and to have the out turns that we have had, which is a return to growth to pre-COVID levels, and very, very low unemployment. So New Zealanders back what we have done and they know that that came at a cost and that the finances of the Government need to be restored and couldn\u2019t be restored without substantial cuts in services, if that sort of policy was pursued. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000665\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of that, as a percentage of GDP, I would note that our spending this year is 31.6 percent of GDP projected, compared with under the National-ACT Government in 2010-11, 34 percent of GDP. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224d83c8a5-2f48-4991-9c45-b1a6060daedd\u0022 data-id=\u00220a471c14ab5d4b1eaec6699f47ce37ab\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000666\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224d83c8a5-2f48-4991-9c45-b1a6060daedd\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220a471c14ab5d4b1eaec6699f47ce37ab\u0022\u003EMAUREEN PUGH (National):\u003C/span\u003E Thank you very much, Madam Chair. I\u2019ll just unmask and enjoy the fresh air. This bill has, obviously, caught a lot of people by surprise today, and with the limited amount of preparation and notice that we\u2019ve had, of course it\u2019s been a bit of a challenge working our way through some of the detail. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000667\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224d83c8a5-2f48-4991-9c45-b1a6060daedd\u0022\u003EBut there are a few things that have become obvious quite early on in the piece, and I\u2019m going to turn my attention to clause 5, new section 7AAA. It says in the bill that this scheme is going to be a grant, and I just wonder if the Minister can provide other examples where IRD administers and delivers grants to taxpayers or to recipients, as it is. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000668\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224d83c8a5-2f48-4991-9c45-b1a6060daedd\u0022\u003EThe other thing I would like to know follows on from the contribution Simon Court has just made. Now, we heard earlier on from Matt Doocey that the IRD is going to need to increase their staffing levels by about 750 people.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000669\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002243ff310d701b42ca95412ac69d25f2a9\u0022\u003ESimeon Brown\u003C/span\u003E: How many?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000670\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224d83c8a5-2f48-4991-9c45-b1a6060daedd\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00221077795fcb1a4cc08c4ad5095674b0dd\u0022\u003EMAUREEN PUGH\u003C/span\u003E: Seven hundred and fifty, Simeon Brown. And so we do know that that\u2019s going to be a challenge to do that recruitment, and we are now at the busiest time for Inland Revenue, as annual accounts are being finalised for a lot of businesses. So for these businesses, we are talking about a lot of them being small businesses, and these are the businesses that have been struggling over the last couple of years to even stay afloat. And what we want to be sure of is that their annual accounts are going to be able to be processed in a timely manner and that these people and these businesses will be eligible for this grant. So, in terms of the time frames, with the delays that we can potentially expect in the processing through Inland Revenue, can the Minister please give us some confidence that the recruitment will happen in a timely manner and that it\u2019s not going to delay the business as usual for IRD to process those annual accounts? \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000671\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224d83c8a5-2f48-4991-9c45-b1a6060daedd\u0022\u003EWe are talking about the small-business owners\u2014the dairies, the cafes that have struggled so hard, the tourism operations that have struggled immensely over the last couple of years, and we\u2019re even talking about farmers. Even farmers may qualify for this grant, being under $70,000 in profit, so we want to be really careful that this is going to be administered efficiently, effectively, and in a very timely way. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000672\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224d83c8a5-2f48-4991-9c45-b1a6060daedd\u0022\u003ENow, if that doesn\u2019t happen, Minister, can we also get some acknowledgment from you, or confidence from you, that these grants can be made retrospectively? If in six months\u2019 time, annual accounts are still being finalised, can they go back and be retrospectively applied for, and, if they can, that\u2019s great; if they cannot, how can the Minister explain the fairness of that? \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000673\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224d83c8a5-2f48-4991-9c45-b1a6060daedd\u0022\u003EI have one other point that I\u2019d like to raise while I\u2019ve got the talking stick, and that is about the bank account details that people may not have. The Minister has said that we are going to do some advertising and that there will be media around this and people will apply, but if they don\u2019t happen to see that\u2014and I do know a lot of very young people that don\u2019t necessarily read the news channels on social media or the hard copy papers\u2014and if they don\u2019t know about it and find out much later, are they still going to be able to apply retrospectively for this grant? Thank you. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022276be8e058204468a535e0da3ebbd17f\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000674\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022276be8e058204468a535e0da3ebbd17f\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E I\u2019ll endeavour to answer a number of questions from prior questioners. In respect of the self-employed, they are included. The assessment is based on their net income, which is their gross income less allowable expenses before losses that have been brought forward. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000675\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of other examples of grants administered by the department, of course they were responsible for COVID support payments. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000676\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of staffing, not all of the 750 staff required are new. There will be redeployment of existing staff within the department. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000677\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EAs to my confidence as to whether the department can deliver this, I think the exceptional work that was done by the department in respect of COVID support payments should give everyone in this House confidence that they will do it well.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022 data-id=\u0022597a7f18923644afaf032e2fe5893341\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000678\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022597a7f18923644afaf032e2fe5893341\u0022\u003EDAMIEN SMITH (ACT):\u003C/span\u003E Thank you, Madam Chair. To the Minister, was any modelling conducted to assess the dollar per day per person rate for this cost of living payment subject to taking into consideration inflation? Does the Minister agree with Treasury? It warns that after this Budget, the tax increases or spending cuts pressures are inevitable. And will the management of this system by the IRD blow out the key performance indicators that I understand the IRD have, from my observation of them on the Finance and Expenditure Committee?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022bdb4ff193f9d492984c90590be7b10ad\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000679\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022bdb4ff193f9d492984c90590be7b10ad\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E Dealing with a question first from a prior questioner in respect of\u2014a farmer, I think, was the example given by the member from the West Coast. The last date for applications from people who were\u2014not applications. The last date when eligibility will be determined will be in March 2023. For people to be eligible by then, they will have had to have filed their tax return for the year ended 31 March 2022. If they haven\u2019t and they are late by that amount of time, then they will be too late to get the payment. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000680\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of the ACT member\u2019s question as to whether this will affect delivery of other services by Inland Revenue, they will be juggling between their different priorities, as they have often had to do during COVID periods, and they will use their judgment as to the prioritisation they give to their different functions. I\u2019m expecting that their core functions will, by and large, remain unaltered, but there will be some reprioritisation. I am aware, for example, that they have put aside some of the compliance work they were planning early on in respect of the brightline test that was introduced by the previous Government and extended by us, and that has already been delayed because of priorities for other work, like administering COVID support payments. Those sorts of trade-offs have to be made within departments and will continue to be made over the coming years.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00222170b5bd-171f-4d9f-bfa6-cab72178f108\u0022 data-id=\u002279b8a7fef031497b932028cd8563b460\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000681\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00222170b5bd-171f-4d9f-bfa6-cab72178f108\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002279b8a7fef031497b932028cd8563b460\u0022\u003EJOSEPH MOONEY (National\u2014Southland):\u003C/span\u003E Thank you, Madam Chair. Minister, I just would like you to elucidate a little bit on why you set\u2014or why the Minister established a cost of living payment totalling $350, being half the couple rate for the winter energy payment, as the amount to pay under this scheme? Noting that New Zealand is facing a significant cost of living crisis with the inflationary impact in our economy.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000682\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00222170b5bd-171f-4d9f-bfa6-cab72178f108\u0022\u003ENoting that this is not something that\u2019s not unique to New Zealand, but is something that we are uniquely experiencing in New Zealand. But if we look overseas, for example, the United Kingdom is facing its biggest drop in living standards since 1956 as wages fail to keep pace with rising prices. Living standards, the disposable household incomes, when adjusted for inflation, are expected to drop by 2.2 percent this year, the biggest fall in a financial year since records began in 1956. So this is a serious, serious issue that New Zealand is facing.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000683\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00222170b5bd-171f-4d9f-bfa6-cab72178f108\u0022\u003EBut my question is: why has Labour decided to give a one-off $350 payment, and why is it set on that amount rather than looking at something like National\u2019s tax plan, which is a permanent plan, something that everyone would benefit for years to come? So it\u2019s a structural change to the system that would benefit people on an ongoing basis, in an inflationary environment that looks like it\u2019s going to run for some time\u2014for example, under National\u2019s plan, anyone on $50,000 a year or more would get more from National\u2019s tax plan; if you\u2019re on $50,000, you would get $362 instead of $350 from Labour; if you\u2019re on the median wage, $57,000, you get $800 a year, rather than $350 from Labour; and if you\u2019re on the average wage, $72,000, you would get $875, nothing from Labour. I note that this would be an ongoing benefit that people would get under National\u2019s tax plan. This is going to be an ongoing issue with this inflation environment. It looks like it\u2019s going to continue for some time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000684\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00222170b5bd-171f-4d9f-bfa6-cab72178f108\u0022\u003ESo there\u2019s two questions there: why has the Minister not considered an ongoing adjustment to account for the ongoing issue with inflation? And why has the Minister set on a $350 cost of living payment on a one-off basis?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022f7599d9a18804908af8b2f1058617054\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000685\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f7599d9a18804908af8b2f1058617054\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E Just for the benefit of the committee of the whole House and, in particular, Mr Bishop, I\u2019m advised that that supplementary analysis report is now online as well as on the floor of the Chamber. I thank him for raising it to my attention.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000686\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of the reason that we chose that amount, we thought that that was a worthy contribution to household living costs facing the cost of living pressures to which the member referred. It, of course, is in addition to the assistance that we\u2019ve given through slashing excise duty, road-user charges, and halving public transport costs as well as various other supports that\u2019ve been made to other subsets of the population who aren\u2019t getting this payment but have had other supports from the Government.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000687\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EI would note that the gap between wages and inflation this year in the forecast economic indicators on page 158 of the Budget Economic and Fiscal Update that has been tabled today shows that inflation is forecast to be 6.7 percent during the forecast 2022 year, against wage growth of 4.6 percent. So we\u2019re trying to bridge part of that gap, but we think that we\u2019ve got the balance right.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002262ff759d-9586-405a-a6e6-208ad65adeb5\u0022 data-id=\u002221e634f9b42b450cad329ebdbf6967d0\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000688\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262ff759d-9586-405a-a6e6-208ad65adeb5\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002221e634f9b42b450cad329ebdbf6967d0\u0022\u003ETANGI UTIKERE (Labour\u2014Palmerston North):\u003C/span\u003E I move, That the question be now put.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022 data-id=\u0022ad6e0578b7eb448ca4503aaa232f5768\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000689\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022ad6e0578b7eb448ca4503aaa232f5768\u0022\u003ESIMEON BROWN (National\u2014Pakuranga):\u003C/span\u003E Thank you, Madam Chair. Look, there are a number of questions that we have still to raise on this side of the House. I do note that this bill has not been to a select committee, so whilst some members on the opposite side may wish to just want to let this piece of legislation pass into the night, it\u2019s important that the questions are asked, because that is our job\u2014to hold the Government to account and to ensure that there is openness and transparency.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000690\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EI do note that I don\u2019t believe the Minister answered my colleague Maureen Pugh\u2019s question in relation to the retrospectivity, because there will potentially be a number of issues in relation to some people who may not see the social media campaign\u2014which I\u2019m sure the comms department at Inland Revenue can\u2019t wait to get stuck into. They might need to grow the comms department to do that one too. But, regardless, some people might not get their details up to date so may not get their payments. So the question was: can they later on, maybe a couple of months after the payment system has finished, come back to IRD and actually get a retrospective payment? I think that\u2019s a very important question, because this is the Government of equality and equity and making sure that no one\u2019s left behind, but are they prepared to leave some people left behind through the incompetence of their systems?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000691\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EThe second question is in relation to the fact that this is a $350 payment. It\u2019s not a big payment. I think we can all agree $350 is not a lot of money. Even Glen Bennett, the one-termer from New Plymouth\u2014he said it\u2019s only going to be able to replace two of the tyres on his car; not even the full set\u2014just two. He\u2019s looking forward to doing it. Maybe less wheelies on the weekend; more MP work\u2014that way he might get re-elected, but I doubt it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000692\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EBut the point I\u2019d like to make is it\u2019s 350 bucks. It\u2019s not a big payment. IRD is going through this huge bureaucratic process to work out whether people are eligible, etc., etc. They have to do that for every single payment. They have to check the eligibility of the particular person each month for three months to make sure that they are eligible for the payment. So, I guess, if they go into jail or they die, unfortunately, or whatever the situation is, or they suddenly get a pay rise, they go across\u2014and, obviously, that\u2019s good news. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000693\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EBut why is this just not one payment? Why did the Government come to the position where they wanted to have three payments? Is it just because they want nice comms for three months in a row? They\u2019re going to put out a press release on 1 August and say, \u201C117 bucks is coming your way\u201D, and then on 1 September, \u201CAnother 117 bucks\u201D, and then on 1 October, \u201CAnother 117 bucks\u201D. Because, actually, I think there\u2019s a real question why this is not just being done once to give people the $350 that this Government is saying is the great cure for costs of living, the cure that they will be fixing this problem with. Why is it not just one payment to eligible people to ensure that not only they\u2019re able to get 350 bucks but they can then do what they want to do with the 350 bucks\u2014if it\u2019s Glen Bennett, get his two tyres on his car fixed, and good luck to him; I don\u2019t think he\u2019s eligible, though, by the way\u2014and then be able to actually make those decisions? \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000694\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EBut instead they get 117, then another 117, another 117, and, of course\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000695\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225b6b1d74-9e5e-42ba-a922-85b0ea7f5ab6\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00224310187a2d984ac388217f2f3e76374c\u0022\u003ESimon O\u2019Connor\u003C/span\u003E: How many red zeros can you buy?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000696\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002228a836144ebf4032aa6563db6c2e99bf\u0022\u003ESIMEON BROWN\u003C/span\u003E: Well, you can\u2019t even get a big red zero for 117 bucks\u2014not even the whole $350. You need five grand\u20145,000 bucks. I\u2019ll tell you what, the average taxpayer in New Zealand, Mr Wood\u2014their tax is around $10,000. That\u2019s two red zeros. So I just think for those taxpayers\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000697\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002257e41e9d-285b-4fb3-847d-a63820ae7137\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00229070c62a3c1141e4b9ebc12a49097d4e\u0022\u003EChris Bishop\u003C/span\u003E: It\u2019s the red zero metric.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000698\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002211626728ef1c41e3a90a1d227fe3e7fd\u0022\u003ESIMEON BROWN\u003C/span\u003E: It is the red zero metric. Two red zeros\u201410 grand. That is a shame. He spent one New Zealander\u2019s entire tax they pay\u2014entire tax they pay across an entire year\u2014on two red zeros. Just disgusting. That\u2019s the wastage we see under this Government. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000699\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EBut back to the point. Why are we not just having one payment? Not only does that give the people who are eligible\u2014which is not including Glen Bennett, as noted before\u2014the ability to make those decisions but also it removes, I\u2019m sure, a significant amount of bureaucracy, and I\u2019m sure that will save the taxpayer some money as well. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000700\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003EI do ask the Minister, on that particular point, did the Government ask for advice around whether it should be one payment or three? Did the Inland Revenue provide advice as to whether it should be one or three and what might be more efficient for them? I do note that they have been scathing of the fact that they have, effectively, dropped this job on their department to do. Look, I mean, they\u2019re all good public servants. They will do the job. They will be stretched, and they\u2019ll have to hire another 750 people. But the point I make here is: was there any advice requested as to whether, actually, one payment or three and what the impact and the cost benefit or the cost addition to doing three payments instead of one might be; if not, why not, and, if so, what would be the saving to the taxpayer if it was actually just one payment to actually make sure that there was some efficiency and to improve the whole system? \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000701\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003ELook, I mean, the Minister might get up and say, you know, \u201CWell, we don\u2019t want people getting that much money too quickly.\u201D I mean, 350 bucks; it\u2019s not even two tyres on Glen Bennett\u2019s car. We\u2019re not talking about big money. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000702\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002255d0b7a4-a2c9-4c38-9b77-475311a48a89\u0022\u003ESo in the cost of living crisis, I really just want the Minister to answer those questions, because, actually, he should be advocating for efficiency in the State service, efficiency in the Public Service, but what we see is wastage, emblematic mostly from Michael Wood and his two big red zeros.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022bff49a2884524b5caa088cf9657c6652\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000703\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022bff49a2884524b5caa088cf9657c6652\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E The member again made the assertion that these are 750 extra staff. Some of them will be reallocated within Inland Revenue. In respect of the year and the retrospectivity point, as the member described it, if eligibility is established by 31 March 2023, which, as I explained, is the date by which eligibility has to be established by the filing of a tax return for the year ended 31 March 2022\u2014if they establish eligibility by 31 March 2023 but they don\u2019t provide a bank account, we do allow them another year to do that, and pay out later. But if they don\u2019t do it by 2024, we no longer carry forward the obligation to pay.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000704\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of the issue as to whether we considered one payment compared with three, yes, we did. One of the reasons why we chose three was that it better reflects people\u2019s actual circumstances if, for example, they move off a benefit.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022 data-id=\u002260e1e326617f4a8a95c6f9cc0a82f348\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000705\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002260e1e326617f4a8a95c6f9cc0a82f348\u0022\u003ERICARDO MEN\u00C9NDEZ MARCH (Green):\u003C/span\u003E Thank you, Madam Chair. Just backtracking to the answer from the Minister regarding the exclusion of people on the benefit.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000706\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003EThe Minister was drawing on, I guess, the fact that people on the benefit already receive the winter energy payment, and I\u2019ve heard arguments around the fact that there\u2019s other lifts to incomes for people on a benefit. But I was wondering if, as part of the analysis of creating and designing this bill and the intent of this bill, the Minister sought any information around shortfalls that people on a main benefit have when it comes to meeting the cost of living. I know that there was no external consultation, but we do have research that does show that people on the benefit have pretty significant shortfalls when it comes to making ends meet.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000707\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003EI\u2019m interested to know whether he believes that the winter energy payment allows low-income people to genuinely meet the cost of living and if he believes that\u2019s why they were excluded\u2014because the evidence tells us otherwise\u2014and, if so, I simply do not understand how the fact that people on very low incomes who may get a top up but yet somehow are still struggling to survive are excluded from this payment that, while modest, will make a difference. For people on a main benefit, it is the difference between often surviving, like being able to keep a rental. For people on closer to $70k a year, it\u2019s a much different impact having an extra $350.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000708\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003ESo if we\u2019re genuinely concerned about the wellbeing of low income people, I just want to know what analysis was done around the ability for low-income people on a main benefit or people under 18 to actually be able to meet the cost of living.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022d986b9423a5b4e1c83a3ec128d436b33\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000709\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022d986b9423a5b4e1c83a3ec128d436b33\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E The analysis by Cabinet included the other measures in the Budget for beneficiaries, people on main benefits, including the pass through of child support payments and the extension of longer-term public transport subsidies for those on the community services card.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u0022f47458cb77194a438b2eae1dab7e6f3b\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000710\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f47458cb77194a438b2eae1dab7e6f3b\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: Matt Doocey.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022 data-id=\u002266223df19dca459e81ae9dddcc8696a7\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000711\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002266223df19dca459e81ae9dddcc8696a7\u0022\u003EMATT DOOCEY (National\u2014Waimakariri):\u003C/span\u003E Thank you very much, Madam Chair. Excellent choice.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000712\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EI just wanted to spend just a brief time, if I can, to ask the Minister a bit more about the cost of this scheme. So it is said in the paperwork, if I\u2019m correct, $16 million, but then there is the reference to needing the full-time equivalents (FTEs) for 750, and there is a reference or a statement in there that Inland Revenue (IR) has sought funding. So I\u2019m just getting some clarity: is the $16 million excluding the 750 FTEs or is it inclusive of that $16 million? And when it says that IR has sought funding, how much funding has it sought, and, then, I suppose, what would be the outcome if the funding was denied? Does that mean there wouldn\u2019t be anyone to administer the programme? So it would be helpful to understand the true cost of what the $16 million is and how much on top of that may be paying for the 750 FTE, which does seem a lot considering we do know the bureaucracy has grown by 10,000 under this Government\u2014so you would argue there\u2019s probably someone with a bit of time around the beltway. So it would be helpful for us to understand the overall figure a bit more.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000713\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EJust coming back to an original question where I asked the Minister about the exclusion of under-18s, I respect his comment that that is the floor, I suppose, or the minimum age, but I would just ask if he could tell the committee the reason why they\u2019ve decided to keep it at 18 and not take it down to 17 or 16.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022d62169ebd6f04b31abcdfd1ed6db5f98\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000714\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022d62169ebd6f04b31abcdfd1ed6db5f98\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E In respect of the question as to administrative costs, the member is correct that the total is $16 million. Of that, $2 million is being funded by the department out of baselines. Therefore, there is $14 million additional. That $14 million funds the additional costs that the ministry will face through the taking on, for example, of the temporary staff. And it also includes a component for the ministry to catch up on some of the work that may be delayed as a consequence of this programme.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c46de55f-b9e4-4c64-9ac6-877bd89c2fc5\u0022 data-id=\u0022547e7c9c3b84459e9edecfff90ebfee1\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000715\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c46de55f-b9e4-4c64-9ac6-877bd89c2fc5\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022547e7c9c3b84459e9edecfff90ebfee1\u0022\u003EDr TRACEY McLELLAN (Labour\u2014Banks Peninsula):\u003C/span\u003E I move, That the question be now put.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u002282c8686ae81245d59c483a63ffb4c17c\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000716\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002282c8686ae81245d59c483a63ffb4c17c\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: I still have a number of members who are seeking the call in this Part 1 of this committee stage. I\u2019m very mindful that this debate is in the context of a committee stage under urgency. The matters in this bill are substantial and the contributions thus far are relevant, and I don\u2019t believe I\u2019m quite ready to take that call. Thank you very much.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u0022ad2eb0e294534c17a525817f2149883d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000717\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022ad2eb0e294534c17a525817f2149883d\u0022\u003EIAN McKELVIE (National\u2014Rangit\u012Bkei):\u003C/span\u003E Madam Chair, thank you. I\u2019ve listened to this debate from the start with particular interest, and it occurred to me that there\u2019s a sector of our community that has been left out of all the Government initiatives that have taken place since COVID began. Those are the people I can easily relate to\u2014although I don\u2019t claim to need the payment\u2014and they are our superannuitants. If we look at what\u2019s happened to our superannuitants since COVID began, they\u2019ve, effectively, been protected, but in a lot of ways that protection hasn\u2019t helped their cause from a mental perspective or a financial perspective. And the interesting thing about the financial perspective is that that one sector of our community, other than their normal increase or annual adjustment\u2014I suppose you\u2019d call it an inflation adjustment\u2014have had no particular attention paid to them at all by this Government in the form of increased payments of any sort. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000718\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003EThe winter energy payment came in some four years ago, and was welcomed by those who didn\u2019t opt out of it. Some opted out it\u2014and it\u2019s an odd way to do something isn\u2019t it, when people opt out rather than opt in. I\u2019ll get to my question in a minute, but if you look at the average income of a couple on superannuation, Government superannuation, it\u2019s not going to amount to anywhere near $40,000, including the winter energy payment. Yet here we are making a payment to people on an income of less than $70,000, but we haven\u2019t included our superannuitants in this payment. My question to the Minister is: why have we not considered them? I understand the issue with respect to means testing\u2014we don\u2019t do means testing in New Zealand but I understand the issue that you could raise with respect to this. But there are a lot of superannuitants, the vast majority of superannuitants, in fact, who live on that $35,000 to $40,000 a year. Why weren\u2019t they considered for a payment as part of this bill?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022fe73ca10353f42b0aa79b7a973519d75\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000719\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022fe73ca10353f42b0aa79b7a973519d75\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E Because the annual adjustment of superannuation is the higher of inflation or wage increases. So if we look back in recent years\u2014and, again, the table on page 158, the economic indicators, records that in recent years\u2014and I\u2019ll just go back to, say, 2018. In that year, average wages increased 2.8 percent, inflation increased at 1.5 percent, so the increase of super was well ahead of inflation that year. The following year, inflation was 1.7 and average wages increased 4 percent. Again, superannuitants would have had an increase based on wages, which would have been ahead of inflation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000720\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003ESimilarly in 2020, their increase would have been based on the wage increase of 3 percent relative to inflation of 1.5 percent. Last year, it was closer: 4 percent wage increase, still ahead of 4.3. This year, inflation is forecast to be higher than wage growth and therefore superannuitants will get the higher of those two figures: the inflation figure of 6.7. So they\u2019re not in the same position as low to medium income wage earners in respect of the cost of living pressures. That is not to say that they do not face cost of living pressures\u2014they do, but the situation is slightly different.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022 data-id=\u00227a3d7a39c6d5418993bb0baac6d0ec7e\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000721\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00227a3d7a39c6d5418993bb0baac6d0ec7e\u0022\u003ESIMON COURT (ACT):\u003C/span\u003E Thank you, Madam Chair. To the Minister: for context, there\u2019s an analysis published by Thomas Coughlan from New Zealand Media and Entertainment, who has reported that Treasury thinks that the Government would have to deliver one of the biggest ever Budget spends next year just to stand still with inflation pressures, which are likely to add to the cost of the Government\u2019s programmes by $3.5 billion next year. Now, that\u2019s Treasury advice, which I\u2019m sure the Minister has seen. So that raises a real dilemma for this Government and for a future Government in having committed to such extraordinary growth in spending, $6 billion this year on top of spending in previous years.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000722\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003EQuestion for the Minister: is it likely that a payment such as this one-off payment would need to be paid next year to account for the cost of living increase that New Zealanders will face? At the moment, inflation\u2019s running around 6.9 percent. That would add, by my brief calculations, for somebody on $70,000 a year, which this payment is targeted at, if their cost of living was increasing by the rate of inflation, that would be an over $4,000 a year increase in their cost of living.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000723\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003ESo, look, is it possible that this payment would have to be replicated next year? Will the Government be able to afford it? Is this payment inflationary on top of all the other Government spending with clearly no ability to manage any reduction in spending in any single department? \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000724\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003EThe assumption is, from the Minister, that there would have to be cuts in order to deliver ACT\u2019s tax cuts, and he\u2019s pointed to various aspects of baseline services, which ACT rejects\u2014in fact, if you read our alternative budget, it\u2019s quite clear, we propose to maintain baseline spending and deliver front-line services in education and health. The cuts that ACT propose to save money to fund our $2,000 tax cut for somebody on $70,000 a year actually come from deleting ministries which deliver no value to the taxpayer, which are completely unnecessary. But you can read all of that in ACT\u2019s alternative budget.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000725\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003ESo the question for the Minister: does he agree with Treasury that warns that tax increases or spending cuts will be needed next year, and is this measure inflationary or is it simply signalling that the Government will have to give New Zealanders a much-larger tax rebate next year, and is this being funded from debt or is this being funded from earnings? Because, Minister, if it\u2019s being funded by borrowing from future taxpayers, from future generations, is this even ethical if the Government\u2019s not prepared to look at its operational spending, which it\u2019s also funding from debt, and make necessary cuts to wasteful Government spending?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022963eb307ca444f7daca727c46302b537\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000726\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022963eb307ca444f7daca727c46302b537\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E Of course, this year\u2019s spending includes a one-off substantial payment to clear the historic deficits of district health boards that have accrued over a long period of time. That won\u2019t repeat.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000727\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of the total spending as a percentage of the economy, as I have said in earlier contributions\u2014I think I\u2019ve been over this a number of times\u2014this year, it\u2019s projected to be 31.6 percent of GDP; next year, even taking into account inflation on both the revenue and the expense side, it\u2019s projected to be 31.1 percent of GDP; the following year, 30.4 percent of GDP. I think, as the member would\u2019ve heard earlier, the date when we return to surplus is one year earlier than was achieved by the National-ACT administration following the global financial crisis. I would also note that those spending figures, as a percentage of GDP for this year, are 31.6 percent, compared with 34.1 percent of GDP spent by the ACT-National coalition in the 2010-11 year.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022 data-id=\u0022bf40afd9c05342b0be51048fe0589de0\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000728\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022bf40afd9c05342b0be51048fe0589de0\u0022\u003ESIMON WATTS (National\u2014North Shore):\u003C/span\u003E Thank you very much, Madam Chair. Look, I want to come back to a question that I asked the Minister before and have not been provided an answer; it\u2019s pretty important, it\u2019s in regards to clause 5, new section 7AAA, in regards to the eligibility payments. So these payments are going to be automatically made to people\u2019s bank accounts. The question I ask, quite simply, is: can the Minister confirm that Inland Revenue holds date of birth information for taxpayers and all the taxpayers that are going to be eligible for this payment? Everyone over the age of 18 who meets the other criteria are going to get the payment, but does Inland Revenue have that date of birth information? If they don\u2019t, I want to understand\u2014well, obviously, there\u2019s going to be a significant issue in terms of the ability to actually make the payment. So that\u2019s my first question.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000729\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EThe second question in regards to the eligibility criteria under clause 5 relates to the statement around the fact that\u2014and it\u2019s the fourth bullet point\u2014and it\u2019s around \u201Cand present in New Zealand\u201D. And so my question here is: when must you be present in New Zealand? Is it from 1 August to 31 October? Can you leave New Zealand after the third payment on 1 October? For example, can you go on holiday? Can you go on holiday during that period? Maybe to anywhere outside of the country for a short period of time, particularly if you\u2019re 18 and maybe say your parents are saying, \u201CLook, we\u2019re going to take you on a holiday.\u201D That would be reasonable, and they would earn under the income threshold.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000730\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EAnd the aspect around this, again\u2014and I asked a question around information sharing before between the Inland Revenue and Ministry of Social Development, of which the Minister did not answer that question either, which gives me more concern that, again, I ask the question: does IRD and the Ministry of Social Development have an existing information-sharing arrangement which covers the winter energy payment? A key criteria for this payment. He hasn\u2019t been able to answer that question, and, again, that is concerning.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000731\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EBut my point around being present in New Zealand is: does Inland Revenue have an information-sharing arrangement with New Zealand Customs? In order to substantiate the criteria for this payment, Customs is going to need to provide information to IRD to stop people at the border or identify someone who\u2019s leaving New Zealand who may be not eligible. And what\u2019s interesting, and I quote from the Ministry of Social Development website in regards to the winter energy payment, is: \u201CIf you\u2019re heading away from New Zealand over the winter months, we can keep paying your winter energy payment for up to 28 days. Tell us if you plan to leave New Zealand for more than 28 days, otherwise we might pay you too much and have to ask for some money back.\u201D So I want to understand in regards to that those series of questions.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000732\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EAnd, lastly, in regards to will the Inland Revenue be assessing or analysing prior year earnings for individuals and taxpayers to ensure that they haven\u2019t artificially had or earned net income of $70,000 or less? And why I ask that is because we\u2019ve seen graphs from Inland Revenue that indicate that Inland Revenue actually thinks that taxpayers are artificially paying themselves $70,000 or less in regards to personal income tax. So those questions I\u2019d appreciate a response from the Minister.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022b4f19c49b12849309f5585c2c939d902\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000733\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022b4f19c49b12849309f5585c2c939d902\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E In respect of tax residency, it\u2019ll be based on annual tax residency, not whether someone\u2019s gone on holiday for a couple of weeks to Australia. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000734\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of the issue that was asked as to the date of birth, generally IRD does have date of birth information. Sometimes there are gaps. Where there are gaps and people think that they\u2019re eligible for the payment, they\u2019ll be able\u2014through the means that we talked about earlier\u2014fill in the data gap in respect of the date of birth and things will flow from there. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000735\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of the winter energy payment, the criteria, yes, we do have data-sharing agreements with Ministry of Social Development, but we don\u2019t actually rely upon them for this, because the eligibility for this payment is based on not being eligible for the winter energy payment, and that\u2019s clear from pay returns that come through the revenue, so can be automatically matched.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022 data-id=\u0022c2c0480ed82e432a9a63b49ee9a3b039\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000736\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c2c0480ed82e432a9a63b49ee9a3b039\u0022\u003EDAMIEN SMITH (ACT):\u003C/span\u003E Thank you, Madam Speaker. I listened with interest to the Minister\u2019s response in terms of how this figure was ascertained, and it was explained that it was the difference between wage increases and inflation, and we just settled on a figure. When I asked Treasury today how they defined lower and middle income wage earners, they did not have an answer for me. It\u2019s not in the appendix of any of the documents I\u2019ve read today. So I ask the question again: was any modelling done to say this would be 250, 350, 450? And is there any sensitivity analysis about how you\u2019ve linked this to the cost of living scenario that people are facing out there?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000737\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ESecondly, the question again is: was it appropriate to appropriate the $1 billion from the COVID fund when COVID hasn\u2019t been totally wound down, to this programme, as it\u2019s a cost of living crisis programme not a COVID fund programme?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000738\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022cc3002108c3c4eb1a677099cd3098c1e\u0022\u003EHon David Parker\u003C/span\u003E: Madam Speaker.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000739\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00225a091cdeecf34faea1d841b54290165e\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: The Hon David Parker.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022bb0272846e0841d4acd38e830a4968dd\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000740\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022bb0272846e0841d4acd38e830a4968dd\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E \u201CMadam Chair\u201D, I should have said; sorry about that. As to the appropriateness of deciding that it was timely to bring back some of the COVID recovery fund payment into the core and use some of it, we thought it appropriate.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000741\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIn respect of the issue as to the wage threshold, or the $70,000 threshold, that was based on the average wage being around $65,000, and we thought that that was slightly above that. It was an appropriate cut-off point.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002262ff759d-9586-405a-a6e6-208ad65adeb5\u0022 data-id=\u00220a0a55df66fe4def802891907762ba40\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000742\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262ff759d-9586-405a-a6e6-208ad65adeb5\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220a0a55df66fe4def802891907762ba40\u0022\u003ETANGI UTIKERE (Labour\u2014Palmerston North):\u003C/span\u003E I move, That the question be now put.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u0022cdf1ecb4ddfe42abbe8e44ee5a3a7a1d\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the question be now put.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 67\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Te Paati M\u0101ori 2. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000743\u0022\u003EThe result corrected after originally being announced as Ayes 77, Noes 42, Abstentions\u00A010.\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u00226cfb2c73de5043388176898e146db8fb\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000744\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226cfb2c73de5043388176898e146db8fb\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: The question is that Ricardo Men\u00E9ndez March\u2019s tabled amendment to clause 4 replacing subclause (2) to amend the definition of a cost of living payments scheme be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u00228dfc857c173840c3b9d8f40e343495b9\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the amendment be agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 12\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 107\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; New Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAmendment not agreed to\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000745\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002290bd433d07d44c7ca00a98184d39da07\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: Order! Members will be silent during the vote. [Interruption] Right, that member will stand, withdraw, and apologise.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00225b6b1d74-9e5e-42ba-a922-85b0ea7f5ab6\u0022 data-id=\u0022eea25db4904a4d16b138e8d2fe8ce122\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000746\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225b6b1d74-9e5e-42ba-a922-85b0ea7f5ab6\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022eea25db4904a4d16b138e8d2fe8ce122\u0022\u003ESIMON O\u2019CONNOR (National\u2014T\u0101maki):\u003C/span\u003E I withdraw and apologise.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u00223d363e89b4e5408dacb5ce2b1e164926\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That Part 1 be agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 67\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EPart 1 agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000747\u0022\u003EThe result corrected after originally being announced as Ayes 77, Noes 42, Abstentions\u00A010.\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000748\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022af82967d24894656af63686a8ecf159e\u0022\u003EPart 2  Amendments to Income Tax Act 2007\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u002275e240182235487993c9624438bbff1f\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000749\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002275e240182235487993c9624438bbff1f\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: Members, we come now to Part 2. This is the debate on Clauses 7 to 9, \u201CAmendments to Income Tax Act 2007\u201D. The question is that Part 2 stand part.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u00228d4f44a814c24287bcaf12da17164bf1\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000750\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00228d4f44a814c24287bcaf12da17164bf1\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E It might assist the committee if I explain this short part. It has two provisions. One is to say that the cost of living payment, when received, is tax-exempt; so there\u2019s no tax charged on the payment received. That\u2019s clause 8 of the bill. And then clause 9 says that it doesn\u2019t affect other payments like Working for Families.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022 data-id=\u00223ad5c352e2824a8b96e3cacd169cb486\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000751\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00223ad5c352e2824a8b96e3cacd169cb486\u0022\u003ESIMON COURT (ACT):\u003C/span\u003E To the Minister, you\u2019ve just pointed out that this is a very brief amendment and that the payment is tax-exempt, but are taxpayers exempt from having to fund this payment? All of those taxpayers who are not eligible for the payment are not exempt from the cost of making the payment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000752\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003ESo I\u2019d like the Minister to consider the impacts of this piece of legislation, which has been brought to the House under urgency tonight, whether taxpayers are exempt; whether, in fact, those even receiving the payment, who are taxpayers, are exempt? If the money has been borrowed and appropriated from the COVID response fund, which was borrowed to respond to the COVID pandemic situation when New Zealand\u2019s borders were closed, where aircraft had stopped flying to New Zealand, which meant that the Government at the time had to say, put funds into Air New Zealand to make sure there was cargo coming, is it appropriate that this payment, this one-off $350 payment\u2014which amounts to less than a dollar per day over a calendar year.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000753\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003ENow, when I was a young person and I used to watch television, ads would come on the television, and they would say\u2014they would say\u2014please donate money to this poor country where people earn less than $2 a day, and yet this payment is for a dollar a day, which wouldn\u2019t have even solved poverty in an impoverished, starving country in the 1980s.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000754\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003ESo a dollar a day, let\u2019s just consider the $350 payment, which the Minister says that people who receive it will be exempt from paying tax on. So let\u2019s assume that that\u2019s your starting point, Minister. These individuals who receive the payment will live in a country called New Zealand, which has borrowed tens of billions of dollars to fund the COVID19 response. That\u2019s where the money has been appropriated from. That money was intended to deliver shovel-ready projects, most of which the shovels are still sitting in the shed, clean and shiny, apart from the ones which potentially Minister Wood or Minister Parker or Minister Robertson\u2014if he\u2019s here\u2014have held for a moment, just long enough to get their fingerprints on the shaft while the shovel touched the ground so they could get that photo op for the shovel-ready projects.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000755\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003EBut let\u2019s just come back to what the COVID-19 response fund, which this is appropriated from, was for. It was to respond to COVID, and it was borrowed. So it would appear by your statement, Minister, that these payments are tax exempt, ignores the enormous debt elephant in the room that this Government has created, which is that even the taxpayers who receive this payment will be liable through their future taxation to pay the interest on the COVID-19 debt, to pay that interest potentially for decades as these bonds mature over time, and at a much higher interest rate, no doubt, than the Government assumed they could borrow the money from when they took it from the air or hit print over at the Reserve Bank and created the money out of thin air, that money that has since created an inflation pressure that is common to all countries around the world which have used money printing to generate some kind of revenue for their Governments at a time when they weren\u2019t collecting money from normal business activity. So to say that it\u2019s exempt from tax, Minister, appears to be missing the point that every taxpayer who receives it and everyone who doesn\u2019t will, through their taxes, pay for it in the future through the interest on the COVID-19 debt that that Minister, who is part of this Government, is responsible for incurring on behalf of New Zealanders. So I want the Minister to explain how taxpayers are not going to pay for this.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000756\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003EAnd, Minister, considering that and considering what other options the Minister had\u2014as I pointed out before, at the current inflation rate of 6.9 percent, the cost of living increase for a New Zealander on $70,000 a year is over $4,000. So does the Minister seriously believe that this $350 payment, less than $1 a day on an annualised basis, is going to make any difference whatsoever in the quality of life, in the wellbeing, and the family circumstances of people earning the average wage in New Zealand? If he can get up and explain this then, then the ACT Party might potentially support it. But at this stage we wouldn\u2019t.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u00224d94fe4c05dd4b8fac0503e02a08c23a\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000757\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00224d94fe4c05dd4b8fac0503e02a08c23a\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E The latter part of that contribution related to Part 1, so I won\u2019t respond to it. The earlier part was repetition of the same point made by his colleague in respect of Part 1, so I won\u2019t repeat my answer.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022 data-id=\u0022adeab5267179493890f90b80548c9767\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000758\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262828428-6565-42b4-bd4d-fa3b12531f88\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022adeab5267179493890f90b80548c9767\u0022\u003ESIMON COURT (ACT):\u003C/span\u003E Thank you, Madam Chair. So would the Minister care to explain, in terms of Part 2, clause 8(cb): \u201Ca payment under the cost of living payments scheme, as defined in section 3(1) of the Tax Administration Act 1994:\u201D, which he described as not being subject to taxation for those who receive it, does not have a tax implication for all New Zealanders who will have to pay back the debt that this Government has incurred, the debt that the COVID-19 response fund represents, which the Minister has called on to use not to save New Zealand from COVID-19, not to protect us from COVID-19 coming across the border or to make sure that freight and logistics can move stuff in and out of the country\u2014would the Minister care to explain how, while taxpayers who receive this payment are not required to pay tax, in fact, they don\u2019t have any future tax obligation to pay for this one-off payment? Minister, could you please explain that in terms of Part 2 of the bill? \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u0022fd4b5b4c0be54d208a4ab511e2f0806f\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000759\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022fd4b5b4c0be54d208a4ab511e2f0806f\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E The clause is very clear. It means what it says, which is that the payment when received by someone is not taxable.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002261725fea-7d5e-4d1f-8fd3-e5779bb7a14d\u0022 data-id=\u0022385888af3ba84468b54d35ca1776a496\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000760\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002261725fea-7d5e-4d1f-8fd3-e5779bb7a14d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022385888af3ba84468b54d35ca1776a496\u0022\u003EBARBARA EDMONDS (Associate Whip\u2014Labour):\u003C/span\u003E I move, That the question be now put.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u0022da706ec6a79e4e15bf13a1cbe48a77bb\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000761\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022da706ec6a79e4e15bf13a1cbe48a77bb\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: The question is that Part 2 stand part\u2014sorry; a bit of late-night confusion. I was putting the question; so I will continue putting the question. The question is that Part 2 stand part.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u0022ccde0617e8f64d128c39884483d98b49\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That Part 2 be agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 67\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EPart 2 agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u0022f786ca8b1bc049f685eb37d4ed370c1a\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000762\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f786ca8b1bc049f685eb37d4ed370c1a\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: Members, the time has come for me to leave the Chair. The House will resume at 9 a.m. in the morning. Good evening.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000763\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003ESitting suspended from 9.56 p.m. to 9 a.m. (Friday)\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519056b3ca2c36a4186985897631a6ad5ef000764\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cbr\u003E\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000001\u0022\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022 id=\u0022da94c23d1f9a47abb7675f4f708ff22d\u0022\u003ETHURSDAY, 19 MAY 2022\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000002\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022808f25af662b447082dd651d1bb03bd2\u0022\u003E(continued on Friday, 20 May 2022)\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022\u003EBills\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000003\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022714a79828b3c4cd29bb91863ffefc8a2\u0022\u003ETaxation (Cost of Living Payments) Bill\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000004\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u00224bb940c012a543c48f92e3f98fdc2265\u0022\u003EIn Committee\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000005\u0022\u003EDebate resumed.\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000006\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022b838711a47bd452f8c067858232306e2\u0022\u003EClauses 1 and 2\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022 data-id=\u00220216c6f62e98407a995db72bb0e40775\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000007\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220216c6f62e98407a995db72bb0e40775\u0022\u003ECHAIRPERSON (Hon Jenny Salesa)\u003C/span\u003E: Good morning, members, as we recognise Pink Shirt Day today.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000008\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003EMembers, the committee is resumed for further consideration of the Taxation (Cost of Living Payments) Bill. I remind members that they\u2019re able to participate remotely. If you\u2019re on Zoom and want to take a call, please type \u201Ccall\u201D into the chat. You should also use the chat if you\u2019d like to raise a point of order. If we receive new tabled amendments, I\u2019ll advise members so that they can refresh the House papers page to see the new amendment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000009\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003EFinally, it\u2019d be helpful for members to ask multiple questions, if they have them, of the member in charge during the call.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000010\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003EMembers, before we move to consideration of clauses 1 and 2, last night during the votes of closure, Part 1 and Part 1 stand part, the votes were recorded incorrectly. The correct vote on both votes was 67 votes in favour, 42 votes against, and 10 votes in abstention.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000011\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003EMembers, we come now to our final debate, clauses 1 and 2, which is the debate on the title and commencement.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022 data-id=\u00229c6557a1fa344e6cbd982d5b1a44e792\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000012\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00229c6557a1fa344e6cbd982d5b1a44e792\u0022\u003EHon GERRY BROWNLEE (National):\u003C/span\u003E This bill as it lies on the Table is referred to as the Taxation (Cost of Living Payments) Bill. It should be called the \u201CCost of Living (Look at the Squirrel Running up the Tree) Bill\u201D, because that\u2019s basically what it asks New Zealanders to do. Why do I say that? Well, to qualify, an income can\u2019t go over $70,000.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000013\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a1f7bbd1-b6ae-41c0-963b-dbe1251f5540\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022761ecf2274ad4e8f8dc67bfeac4793dd\u0022\u003EKieran McAnulty\u003C/span\u003E: Point of order, Madam Chair. The member is extremely experienced. He knows that he can\u2019t use debates on this clause to criticise the content of the bill, and proposing that a bill be called \u201Ca squirrel going up a tree\u201D, I would argue, is exactly that.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000014\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00229af80d153e574e9984be2e233cf4a720\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: Speaking to the point of order\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000015\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022cd591de7536d4f269419fbcc108014eb\u0022\u003ECHAIRPERSON (Hon Jenny Salesa)\u003C/span\u003E: It is myself who is able to rule things in or out of order. I would allow the member to continue.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000016\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d46248b5c83e4ec9b553dac5c2356928\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: Thank you, Madam Chair. As I was saying, the bill should be called the \u201CCost of Living (Look at the Squirrel Running up the Tree) Bill\u201D, because that is what it asks New Zealanders effectively to do. Seventy-thousand dollars is the threshold\u2014for someone earning\u2014to get this payment. Let\u2019s look at that $70,000. That person will be paying $14,000 in tax, leaving them with a $56,000 income, and slightly less when you take off ACC and anything else that the Government might like to throw on as a result of this particular bout of urgency. But of that $56,000, $4,000 has already been lost in purchasing power through the current inflation rate\u2014$4,000 out of an annual income, through last year\u2019s inflation rate\u2014and we\u2019re being asked to support a bill that apparently is going to make up for that by giving people $350. It is an absolute misleading of people in New Zealand. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000017\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003EI don\u2019t begrudge anybody getting the money\u2014they need it\u2014but it is just inappropriate to call it a cost of living payment when it goes nowhere near that cost of living and when Government policy, riddled throughout this Budget, is robbing people because of the high inflation rates we have at the present time. Four thousand dollars, for that $70,000 earner, is lost in purchasing power and the Government wants to deny it\u2019s happening.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022 data-id=\u00229e0a9411cc4d4725a046623200b7813e\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000018\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00229e0a9411cc4d4725a046623200b7813e\u0022\u003EMATT DOOCEY (National\u2014Waimakariri):\u003C/span\u003E Thank you very much, Madam Chair. I want to join my colleague Gerry Brownlee to look at the title and commencement of this bill, because you\u2019d ask yourself, with the Taxation (Cost of Living Payments) Bill made up on the hoof, what took it so long. What we do know, when we read the limited paperwork that is on the Table this morning, is this bill was only thought about a couple of weeks ago. This Government has been dragged kicking and screaming into the cost of living crisis. They wouldn\u2019t even admit it, and now here we have a policy\u2014in fact, the total expenditure of $800 million sits outside the Budget of $6 billion. That\u2019s how much this bill is made off the hoof.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000019\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EI just want to quote some figures from Stuff NZ this morning. They called it the cost of living reality check. Renters\u2014the cost increase for them has been $52.75 a week for a couple, bearing in mind the uplift from this bill is only $54, so it cancels itself out, whereas for a homeowner, they\u2019ll get $54 a couple under this bill\u2014the cost pressures increase has been $134.25.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000020\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003ESo here we have a Government that\u2019s put a bill up, but let\u2019s not forget, if we\u2019re talking about commencement, it doesn\u2019t start till 1 August. Why doesn\u2019t it start till 1 August? Well, they\u2019ve made it up off the hoof and they\u2019re not ready to implement it yet. Even in the Minister\u2019s own words, they still don\u2019t have 200,000 people who are entitled to this; they don\u2019t have their bank details. That\u2019s 10 percent. Then they still need to employ 750 fulltime-equivalents, and we know under this Government that won\u2019t be a ceiling; that will be a minimum\u2014so a thousand new bureaucrats on top of the 10,000 increase they have already employed.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000021\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EAnd this Government\u2019s got form in this space. Let\u2019s not forget the legislation we had to bring before the House around the road-user charges, with the reduction of the excise tax\u2014poorly thought-through legislation, and here we have a bill that doesn\u2019t have the right title, and, we would argue, the commencement\u2019s too late, but, of course, this Government is too late into the cost of living crisis. They would not accept it, they would not call it a crisis, and now they are giving a bare minimum, as my colleague Gerry Brownlee said\u2014a squirrel up a tree\u2014to say, \u201CHey, we\u2019re doing something.\u201D But when you drill down in the figures, this does not cover the true cost for struggling Kiwis. And let\u2019s not forget the average Kiwi wage at $72,000 will not qualify for the $350.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022 data-id=\u0022f5cbfa6032f04f58a17ab3e03b994665\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000022\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f5cbfa6032f04f58a17ab3e03b994665\u0022\u003EDAMIEN SMITH (ACT):\u003C/span\u003E Overnight, we\u2019ve learnt that people in America have seen our Budget before we did. Newspapers had access to the content of our Budget, which inextricably can\u2019t be explained by Treasury yet. But it would actually augur something that is in consistency with this bill, which is just rushed, rushed, rushed. And we at the ACT Party, who were the first to actually expose the cost of living crisis\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000023\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d21b0e8a1242458dbeffe8021bb0b4a7\u0022\u003EHon Paul Goldsmith\u003C/span\u003E: Ha, ha!\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000024\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022845fec3bca29427480bfa49c7fe8a1d5\u0022\u003EDAMIEN SMITH\u003C/span\u003E: Well, actually, it\u2014and that\u2019s right, Mr Goldsmith, and then you took on the crusade\u2014would identify that at a dollar per day over the next year. Is that really going to solve the cost of living crisis in New Zealand? I don\u2019t think so. And I think the polls will still show that after this reaction to this payment it won\u2019t stop here. Come October, more will be needed. Unbudgeted aid that hasn\u2019t been allocated yet will have to be discussed. Inflation is not going away. Monetary policy next week would show that the cost of living will increase further through mortgage interest rates. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000025\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EBut getting back to the bill. The cost of a Labour vote has been defined as $350. The tax per person in this country has gone up from $15,825 to\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000026\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002205edfddafe474d97847f641b0a298c2b\u0022\u003ECHAIRPERSON (Hon Jenny Salesa)\u003C/span\u003E: Order! Order! Can the member come back to the debate that we\u2019re having right now, which is on title and commencement?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000027\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00228b2746a98be249ab8f9453d5263b3a39\u0022\u003EDAMIEN SMITH\u003C/span\u003E: Yeah, it\u2019s relevant\u2014because the title of this bill, with regards to the office that has described it, is actually going to tell Kiwis that the cost of living payments bill is going to solve their problems. And it\u2019s not. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000028\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ESo we at the ACT Party want to make it very clear today, before we go into the weekend, that this is a bill that\u2019s described as something that\u2019s not going to help and it\u2019s not going to actually define what the problem is. Thank you.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002261725fea-7d5e-4d1f-8fd3-e5779bb7a14d\u0022 data-id=\u0022170782e3a6a24e258430e5ebbd2b64b7\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000029\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002261725fea-7d5e-4d1f-8fd3-e5779bb7a14d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022170782e3a6a24e258430e5ebbd2b64b7\u0022\u003EBARBARA EDMONDS (Associate Whip\u2014Labour):\u003C/span\u003E I move, That the question be now put.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u0022fd3726868744463ba3b81aa6913ad03c\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the question be now put.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 75\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Green Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u00223a6c997f92b7498096d770c253062281\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That clause 1 be agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 67\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EClause 1 agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u00226308d2f77cb64e78a5670afa47c710d8\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That clause 2 be agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 67\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EClause 2 agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022 data-id=\u00220be52ac2dcfc4479be5c7a61a2b85591\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000030\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220be52ac2dcfc4479be5c7a61a2b85591\u0022\u003ECHAIRPERSON (Hon Jenny Salesa)\u003C/span\u003E: I will report this bill without amendment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000031\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003EHouse resumed.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022 data-id=\u00226bc9154261474423a285bcfd3ea9bd68\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000032\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226bc9154261474423a285bcfd3ea9bd68\u0022\u003ECHAIRPERSON (Hon Jenny Salesa)\u003C/span\u003E: Mr Speaker, the committee has considered the Taxation (Cost of Living Payments) Bill and reports it without amendment. Mr Speaker, I move, That the report be adopted.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u0022805456679ff44b53aba9880481bd1be4\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000033\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022805456679ff44b53aba9880481bd1be4\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: The question is that the report be adopted.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u00224d3ca4114f014c7595c7440dab9c16c4\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the report be adopted.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 67\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EACT New Zealand 10; New Zealand National 32.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000034\u0022\u003EReport adopted.\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000035\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u00226ed7fd9583684227a39a371ef8b942ca\u0022\u003EThird Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u002217dd6f8ac15a4867b40bc474249790de\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000036\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002217dd6f8ac15a4867b40bc474249790de\u0022\u003EHon DAVID PARKER (Minister of Revenue):\u003C/span\u003E I move, That the Taxation (Cost of Living Payments) Bill be now read a third time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000037\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EWhat a great day to be in Government. I\u2019ve been in this place for 20 years. My anniversary is in a couple of months\u2019 time and I\u2019ve never ever, in the 20 Budgets that I\u2019ve been here for, seen such a depressed Opposition on the first morning of the continuance of the urgency motion. The contributions from that side\u2014I know they\u2019re awake, they\u2019ve arrived here, come through the rain on a Wellington grey day, but the depression on the other side is palpable. I can see why. Completely taken by surprise by the Budget\u2014completely. The terrible design of their tax policy in comparison, laid bare, and they\u2019re left with accusations in the debates on this bill about fiscal profligacy\u2014prophets of doom on the other side. We have to remind them that this bill gives $350 to 2.1 million people\u20142.1 million people assisted with the cost of living\u2014on top of the extensions to the slashing of excise duty, to the cutting of road-user charges, and the halving of public transport costs. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000038\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EThis country recognises that we have had one of, if not, the best responses to COVID in the world, both health-wise and economically. And, as a consequence, New Zealand\u2019s economy has already bounced back to being pre-COVID size, and growth rates are higher than they were pre-COVID. Unemployment is at an incredibly good low level of 3.2 percent and the Government\u2019s books go back into surplus\u2014notwithstanding the astounding shock of COVID\u2014a year earlier than National got the books back into surplus after the global financial crisis (GFC). Against all of that background, the National Party still say, \u201COh, profligate Government stoking inflation.\u201D, when our expenditure in this coming year, according to the Budget documents, is 31.6 percent of GDP, compared with 34 percent of GDP under National after the GFC.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000039\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIt\u2019s no wonder that the commentators are picking that this is a great Budget, but so are the punters.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000040\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00222df80acced244628a05d3719255a07fe\u0022\u003EHon Gerry Brownlee\u003C/span\u003E: Name one! He can\u2019t find one.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000041\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002205225e98083140ebaa9099252e3c7341\u0022\u003EHon DAVID PARKER\u003C/span\u003E: Well, I\u2019m actually looking for a list of some of the quotes\u2014I\u2019m looking for some of the statements by punters throughout the country who are saying that this $27 per week helps. But I\u2019m going to give up on that because I can\u2019t find the piece of paper. The pundits up and down the country are saying that the National Party tax cuts would have given less to low and middle income earners than this $27 a week; $2 a week for a low income earner under the National Party\u2019s tax cuts, a $270,000 tax saving for the chief executive officers (CEOs) who are at the top end of the spectrum\u2014270,000 per annum. People know that, one, the country can\u2019t afford that after the COVID costs\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000042\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022008538b9d51d48339c85ece554544756\u0022\u003EHon Paul Goldsmith\u003C/span\u003E: This is muckraking.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000043\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b28c2fcf13294331a17b6bc147e0069c\u0022\u003EHon DAVID PARKER\u003C/span\u003E: \u2014and, two, that it would be\u2014\u201Cmuckraking\u201D, says the Hon Paul Goldsmith.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000044\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00225fc2bcfee9e7415f8fe02a1c8b3fb89e\u0022\u003EHon Gerry Brownlee\u003C/span\u003E: Put some numbers on it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000045\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002213190e1b555544f1897cadf35750c63d\u0022\u003EHon DAVID PARKER\u003C/span\u003E: $270,000 is the number that the CEO of Air New Zealand would have got from the tax cuts that National Party proposed and $2 a week was what a low-income earner would have got\u2014about 110 bucks a year compared with the $350 that low and middle income earners get under this package. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000046\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EThis is a very, very good bill and I thought Audrey Young summed it up very well. She said that Grant Robertson delivered a measured response to the current crisis, and she said that he had written a \u201CGoldilocks Budget\u201D, neither too much nor too little, that it had targeted the tax cuts better than the National Party\u2019s alternative, and that the Budget was, essentially, a masterstroke by the Minister of Finance. We\u2019re incredibly well led in this country by the Prime Minister, Jacinda Ardern, by the Deputy Prime Minister and Minister of Finance, the Hon Grant Robertson, who I think has delivered a Budget in difficult circumstances. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000047\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003ENow, the final thing I would point out is that the Hon Gerry Brownlee just gave a contribution on the title debate where he said that people were 6 or 7 percent behind, and he quoted the number. He ignores wage increases\u2014typical of the economic illiteracy on the National Party side of the equation. He just talks about inflation but not wage increases. Even this year that we\u2019re in, the only year in the past five years where wage growth is lower than inflation and the only year that it will be, under this Government\u2014because forward projections out to the end-year forecasts have wage growth higher than inflation\u2014with inflation predicted to be 6.7 percent, wage growth has been 4.6 percent. The gap is not 6.7 percent, as the National Party illiterately repeat in this House; the difference is 2 percent\u2014the difference is 2 percent. And we as a Government are doing what we can to assist people with that reality. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000048\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EWe all know that inflation is here, that it\u2019s not caused by the Government. There was a bit of a spat on TV last night with a leading New Zealand economist, Shamubeel Eaqub, calling out the illiteracy of the ACT Party on this issue. The main causes of inflation are the disrupted supply chains as a consequence of COVID, including disrupted production in China, and transport constraints that have been disrupted through COVID. And then, of course, virtually the whole of the world is bouncing out of COVID at the same time. So demand pressures around the world have spiked, which is in itself inflationary. And then on top of that, we\u2019ve got the war in Ukraine, which has doubled fuel prices, which feeds through to food prices, in part, because the cost of fertiliser has gone up by 38 percent. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000049\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003ESo we all know those are the causes of inflation, but we also know that it\u2019s real for New Zealand consumers and that\u2019s why we\u2019re doing our bit to assist them through this measure, which is fiscally responsible, will help 2.1 million New Zealanders, and is widely seen by the media as being a good Budget.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u0022f19971d5930a4efe90823046b6d29371\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000050\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f19971d5930a4efe90823046b6d29371\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: The question is that the motion be agreed to. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022 data-id=\u0022db74a19a257442d7ba217bf079a9f894\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000051\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022db74a19a257442d7ba217bf079a9f894\u0022\u003EHon PAUL GOLDSMITH (National):\u003C/span\u003E Thank you, Mr Speaker. We started off with a hiss and a roar from the speaker Mr Parker about the Budget, and then it started to lose its way. Then he was flambling around, trying to find commentators that had supported it, and he started reading Audrey Young. But, of course, Audrey Young, yesterday, just after the Budget, said it was a \u201CGoldilocks Budget\u201D, but on reflection, she\u2019s written another article a little bit later where her conclusion at the front is \u201CGrant Robertson\u2019s latest Budget may end up pleasing very few.\u201D No longer is it Goldilocks; she\u2019s actually had to pull back and recognise that it\u2019s been a flop, and everybody else in the country recognises that it\u2019s been a flop. It\u2019s a backwards Budget, because the country is going backwards.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000052\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EJust think, back in 2017, when National left this Government thanks to Winston Peters, this country was positive and was going places. People were flooding into the country. We were aspirational. New Zealand was reaching ahead. Everybody felt good about this country. Five years later, we\u2019re losing a net-outflow of people. Australia is getting the best and brightest from New Zealand\u2014not all of them, of course; some of them here on this side of the Chamber. So we\u2019re losing a net-outflow of people, the country is going slowly, and the growth forecasts in this Budget from the Treasury are being pulled back. Instead of growing 12 percent by 2024, we\u2019re only going to grow 9 percent if we\u2019re lucky. For some of the years ahead, we\u2019re going to be growing less than 1 percent.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000053\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003ESo the country, as a whole, under this Government is going backwards. But it\u2019s worse than that; it\u2019s New Zealand households that are going backwards under this Government. Costs are going up faster, the cost of everything\u2014whether it\u2019s cheese, whether it\u2019s petrol, whether it\u2019s food for the table; that\u2019s going up faster than wages are going up. And everybody knows it, everybody understands it, everybody sees it, everybody feels it, and they are frustrated by it. The Government will stand up and say, \u201COh, it isn\u2019t us.\u201D, and they\u2019ll point to Shamubeel Eaqub and all that sort of stuff. Shamubeel Eaqub, by the way, when we were in Government, had nothing to say other than the New Zealand Government had their head in the sand over superannuation and we needed to put the age of superannuation up. That was the only thing he used to say, and then, suddenly, this Government comes in, and Jacinda Ardern refuses to put the age of superannuation up, and he stops talking about it\u2014has never talked about it since. So now he\u2019s talking about inflation and about that. So, anyway, good on you, Shamubeel, you do that.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000054\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EBut the point about inflation is that, yes, of course, there\u2019s an international component, but you can\u2019t control that, but what you can control as a Government is what the Government does to contribute to it. And there are two things that have contributed to it significantly: (1) they took the focus of the Reserve Bank off inflation and added a dual mandate, and we\u2019ve run incredibly low interest rates, and that has helped fuel the inflation\u2014like it has in many other parts of the world\u2014and that\u2019s why inflation was ripping before Ukraine and it\u2019s why New Zealand households were going backwards last year; and (2) they have massively increased Government spending\u2014what\u2019s called the fiscal impulse\u2014and this Budget was the biggest splurge of new spending ever, and New Zealanders look at it, and they see it for what it is. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000055\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThey look at the $11 billion in health, and they ask the obvious question, \u201CWill this lead to any better outcomes?\u201D And when they consider what happened to the $1.9 billion extra money in mental health two years ago for no better outcomes in so many areas, they are rightly concerned about it, and they can see it just disappearing like water into the sand\u2014billions and billions of dollars going out and no better result. Overall, Government spending\u2019s increased by 68 percent by this Government, and nobody can point to a 68 percent increase in actual outcomes. We\u2019re all waiting longer for courts, we\u2019re waiting for surgeries, and everybody\u2019s waiting for everything. All the money goes out and where it all seems to go is into extra public servants and lots of consultants. It\u2019s been great for the consultants, a really wonderful time for the consultants but not good for the average New Zealander\u2014and particularly not good for the squeezed middle. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000056\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThen we look here at what is being proposed in this bill: this temporary assistance to deal with the cost of living, and the $27 a week that people will get for a few weeks. And we\u2019ve seen, overnight, people working out how that fits. We\u2019ve seen people say, \u201CWell, if you look at an average couple, in the Budget they\u2019ll get $54 between them for a few weeks, but the cost of rent has been about $50 as well.\u201D Well, OK, that might just cover the rent increase for a few weeks, but it doesn\u2019t cover all the food and everything else that they\u2019re having to deal with, and all the other issues. Then what happens after three months? Oops, we\u2019re back where we were; we\u2019ve gone backwards. And what about the homeowner? Average costs have gone up a $134 a week, so they\u2019re going backwards at a rate of knots, and they\u2019ll be going back faster, because interest rates will be going up even higher to deal with inflation. And, then, of course, well, they might get a cheap bus ride for a few weeks, but that\u2019s going to stop as well. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000057\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003ESo the big question that everybody has is: what on earth is going to happen in three months when these little temporary fixes are going to disappear? They won\u2019t, probably, disappear, and that\u2019s going to be a real problem for this Government. They\u2019ve got themselves entirely trapped, and there\u2019s no way out for them, because they\u2019ve raised this kind of hope that they\u2019ll throw some money at people in order to deal with this situation. But they\u2019re going to have to keep on doing it, because the inflation\u2019s not going to go away any time soon. And that\u2019s why we\u2019re not voting for this bill, and it\u2019s why the National Party\u2019s plan is so much better. And it\u2019s an obvious one which is to say, \u201CLet\u2019s stop taking more tax out of the hands of New Zealanders every day, using the sneaky approach of inflation\u2014as incomes rise, hold the tax thresholds down, and more people pay higher rates of tax.\u201D \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000058\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EAnd that\u2019s been the dirty secret of this Government\u2019s tax policy for the last five years. It\u2019s why Grant Robertson has had so much money to throw around\u2014ineffectively, sadly\u2014and it\u2019s why New Zealanders are feeling the pinch. We\u2019ve just suggested the obvious and simple and right thing to do, which is to say, \u201COK, let\u2019s adjust those thresholds for inflation and put $1,600 back into the hands of the average New Zealand worker. That will make a real difference to them. It\u2019s a contribution, it\u2019s a start, and it doesn\u2019t go away after three months like this short-term, band-aid fix from the Government will do.\u201D \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000059\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EAnd, of course, the other element of this is the hurried and ill-considered nature of it. When we look at this Government\u2019s approach to this Budget, they were quite confident about the whole situation. They said that the focus of the Budget was going to be climate change and it was going to be health restructuring. That was going to be the big thing about the Budget until about five weeks ago when they thought, \u201CHang on a moment. Hang on a moment. Maybe we have miscued somewhat. There seems to be another issue out there\u2014something called the cost of living. Maybe we should be doing something about that.\u201D Just like they thought about law and order, suddenly, very late in the piece, they claimed everything was fine, and then, the only thing going forward that New Zealanders have seen is those stolen cars being rammed into dairies. So they came up with a quick fix there, which won\u2019t really work, and then they came up with this cost-of-living package right at the very end. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000060\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EWe see all the notes from Treasury laid out on the table, saying, \u201COh, yes, well, we haven\u2019t really had time to consider this at all. It\u2019s just been flung at us just beforehand. And, by the way, we think it\u2019s pretty bad.\u201D I mean, look. This is what the Treasury has to say on it: \u201CInflation has risen over the past year and is expected to be widespread and to persist into the future. This makes a one-off payment a poor mechanism for supporting households with a longer-term problem.\u201D This is from the Government\u2019s own advisers. Let me just repeat this: \u201CInflation has risen over the past year and is expected to be widespread and to persist into the future. This makes a one-off payment a poor mechanism for supporting households with a longer-term problem.\u201D So the Government\u2019s own advisers say it was a bad idea. They say a one-off payment of this magnitude, also, would add inflationary pressures in the short term. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000061\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThen there are other priorities that could be pursued with this money. Then, they also point out that they have to go and hire another 750 people down at IRD to figure out how to pay this money. I mean, what a shambles. I\u2019m pretty confident notwithstanding if this bill passes\u2014which it will, because this Government has the numbers\u2014that they\u2019ll turn around and find out there\u2019ll be all sorts of problems. I wouldn\u2019t be at all surprised if we\u2019re not back in this House with another piece of urgent legislation to fix up some kink that they\u2019ve forgotten and that has meant the money\u2019s gone to people in Australia or something like that. I don\u2019t know; there\u2019ll be something that they won\u2019t have figured out in their mad rush to deal with it. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000062\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThat is the tragedy of this Government. They\u2019re always, always reacting on the back foot to issues, because they\u2019re not thinking ahead and they\u2019re not providing a clear plan for New Zealand. So the backward Budget continues. New Zealanders are going backwards, but our message for you today is: help is on the way, and that\u2019s in the form of Chris Luxon, Nicola Willis, and the National Party that stand ready to lead this country back to success.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022 data-id=\u0022d8af424cb3f849fa90728c49cd0c77d9\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000063\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022d8af424cb3f849fa90728c49cd0c77d9\u0022\u003EDr DEBORAH RUSSELL (Labour\u2014New Lynn):\u003C/span\u003E What a miserable lot they are on the Opposition benches\u2014a miserable, pessimistic, negative lot. Oh no, oh no, unemployment is down to 3.2 percent, and they think that\u2019s terrible! Mr Goldsmith says that growth is predicted to be only 9 percent, and that\u2019s a terrible thing! They are a miserable, mean lot, seeing only the dark underbelly of everything because that suits them. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000064\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003ENow, we know there is an inflation problem, and it is worldwide. I\u2019d like to point out that just yesterday economist Shamubeel Eaqub said it was \u201Ceconomically illiterate\u201D to sheet it home to the Government here. Well, the economic illiterates on the other side of the House might like to pretend that inflation is caused here in New Zealand alone, but we know it is a worldwide problem, and we know it is caused by worldwide issues. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000065\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003EWhether or not it is caused by worldwide issues, it is our job on this side of the House to help New Zealanders get through, and that is exactly what we are doing. Benefits went up on 1 April. We have the winter energy payment to help superannuitants and people who are on benefit. The minimum wage has gone up. That\u2019s all stuff to help people get through. In this Budget, we are making a contribution to the cost of living for ordinary New Zealanders, for 2.1 million New Zealanders, who will get a contribution to help them through these winter months\u2014$350 going to 2.1 million New Zealanders. It\u2019s going to students. It\u2019s going to people on the minimum wage. It\u2019s going to those who work two or three jobs just trying to get by. It\u2019s going to ordinary people and it will help them.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000066\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003ESo let me tell you what people have said about this. Let\u2019s start with some of the big-picture stuff. Now, in terms of whether or not it\u2019s an effective and good measure, let\u2019s talk to, I don\u2019t know, ANZ chief economist Sharon Zollner. That would be the ANZ that is chaired by the former Leader of the Opposition, by the former Prime Minister, Sir John Key. What does this wonderful person say? She says, well, actually, good fiscal policy \u201Cshould be targeted and temporary and these cost of living pressures are, we\u2019re all hoping, going to ease, whereas a tax cut is, of course, for the long run\u201D. In other words, she supports it. She says, \u201CThis is a one-off payment that can be repeated if necessary and it\u2019s actually more flexible, in that regard, than a tax cut would be.\u201D That\u2019s from the ANZ chief economist.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000067\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003EMorgan Godfery, who lectures at the University of Otago Business School, says that the cost of living payment is \u201Ca necessary recognition that a large number of New Zealanders are doing it tough \u2026 Targeting that payment to the 2 million New Zealanders who are likely struggling with all kinds of rising costs\u2014whether it\u2019s fuel, whether it\u2019s housing costs\u2014I think is both necessary and sensible.\u201D That\u2019s what people are saying about the overall fiscal nature of this particular payment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000068\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003EIn terms of whether or not it would add to inflation, well, University of Otago senior lecturer in economics Dr Murat \u00DCng\u00F6r doesn\u2019t think that it\u2019ll add to extra pressure on inflation. It is a great, measured announcement. That\u2019s what some of the people commenting on the economics of it are saying. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000069\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003EBut what are ordinary people saying\u2014what are ordinary people saying? Here it is: \u201CArrowtown woman Jo Scott was shopping at Countdown Andersons Bay in Dunedin yesterday and said it was \u2018outrageous\u2019 how much the cost of food had gone up.\u201D\u2014we all know that. \u201CShe said the payment would be a \u2018big help\u2019. Another shopper, Ann Cottrell, of Dunedin, said the payment would be \u2018marvellous\u2019.\u201D Ordinary people are welcoming this assistance with their costs of living. It is welcomed on the streets, and that\u2019s where that side of the House is simply out of touch. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000070\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212d74f81-b1f7-4b51-9fb4-8f9481477192\u0022\u003EOver on this side of the House, we know we need to help. We are doing what we can to help people get through. This is a measured and sensible response to the temporary cost of living pressures. I am so glad to be able to commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022 data-id=\u002263f5118cd8e1415caec7a125e71cd1e3\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000071\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002263f5118cd8e1415caec7a125e71cd1e3\u0022\u003EHon GERRY BROWNLEE (National):\u003C/span\u003E I must take a minute or two to reply to some of the positions put by the speaker who just resumed her seat. Firstly, I think it\u2019s extraordinary that the Government should come in here and quote the words of a bank chief executive\u2014a bank that\u2019s just been one of the first to jack up their interest rates in this new environment; interest rates that are contributing to that $134 a week extra costs for mortgage holders in this country. Yet the Government comes in here and says, \u201CWell, the banks are happy about it.\u201D Of course they are. Of course they are. It\u2019s typical, isn\u2019t it? The vested interests are always apparently the ones that this bank wants to talk about. Unreal.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000072\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003EThen, of course, we talk about the fact that it\u2019s a measured approach. Well, the overall approach to the Budget is that there is $100 billion worth of income and $127 billion worth of expenditure. The question is: who fills the gap? When we look at this Budget from this week, we see $6 billion spent as planned\u2014as well announced by the Government\u2014a massive expenditure: biggest ever in New Zealand\u2019s history. Then we see an extra $2.3 billion stolen out of next year, brought forward into this year to pay for various aspects of the Budget. And on top of that, the last-minute inclusion, the very last-minute inclusion, not actually in the Budget, only there as potentially a supplementary estimate some time down the track\u2014the billion dollars for this particular move\u2014$9 billion. Now, if anyone looks at how baselines work, that means over the next four years, the Government is going to spend north of an extra\u2014an extra\u2014$50 billion. Where does it come from?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000073\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003EThe people who always pay are the people who are at the bottom. This is an absolute sham when it comes to any suggestion that this about solving the cost of living. It\u2019s not. I don\u2019t begrudge people that money. I hope they turn up in their droves and they take it. They need it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000074\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003EBut let\u2019s be clear: someone on $70,000 a year, at the top end of the qualifying range, is paying $14,000 in tax right now. They\u2019re left with a $56,000 income. There\u2019s a bit taken off that for ACC and various other things. But that $56,000 has been eroded in its purchasing power over the last 12 months by about $4,000. David Parker says here, \u201COh no, the member got his figures wrong\u201D when I quoted this in the House earlier, because there\u2019s been pay rises. Even if we\u2019re generous about the pay rises, it is still a gap\u2014and, in fact, if someone was on $70,000, they got a pay rise, they no longer qualify. But if someone had got a pay rise that took them up to that level, their purchasing power after that pay rise is still down by $4,000. So it\u2019s an irrelevance that you get all the time being thrown into these arguments by a Government that just seems to think that if they say it and they do it\u2014well, they don\u2019t do it very often, do they? They\u2019re not good on delivery\u2014then everything will be all right.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000075\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003EThere\u2019s the fact too that you can have multiple speakers from the Government standing up and saying, \u201CThis is wonderful. It\u2019s a payment to 2.1 million people.\u201D, but we\u2019re a population of 5 million, we\u2019re a population of about 1.5 million children who don\u2019t work; we\u2019re a population of over 500,000 who don\u2019t work because they\u2019re retired. So these are working-age New Zealanders\u2014a massive chunk of our population\u2014and the Government is celebrating that their incomes are low enough to qualify for this miserable $350 over a three-month period, $27 a week.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000076\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003EWell, if they think they\u2019re going to go out on the hustings and tell New Zealanders how wonderful they are, I think they\u2019ve got another thing coming. The only people they\u2019ve been able to talk about in the House today who expressed any degree of support for this are a political editor who\u2019s changed his story this morning, and a bank chief executive who\u2019s happy to rub his hands as the interest rates go flying up. Completely ridiculous.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000077\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003EI\u2019ve watched people on television, I\u2019ve heard them on the radio\u2014people who are affected by this. They\u2019re grateful, but they are also very annoyed about the fact that it won\u2019t go anywhere near trying to sort out the erosion of purchasing power that their limited incomes have so far experienced\u2014$134 a week down if someone has an average mortgage in this country.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000078\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003EIt just seems to me hard to believe that a Government can be so excited about this. We all know how it happened. Week after week, Labour caucus members were filing into the weekly caucus meeting, saying, \u201CIt\u2019s not good out there. We\u2019ve got to do something. We\u2019ve got to come up with something.\u201D And then Grant Robertson\u2019s come along and he\u2019s got a bit of a bone he\u2019s thrown at them and said, \u201CHere, look. We\u2019re going to give everybody $350, dripping it out over three months, and that should take care of everything.\u201D And one by one they\u2019ve stood up in the House since yesterday afternoon, applauding this initiative by Mr Robertson and the Prime Minister as if it is an answer to everything. It\u2019s temporary, so is the reduction in fuel excise. Temporary.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000079\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003EThe question still arises: how is that $27 billion worth of extra spending through this Budget going to be paid for? No answer. The only way, ultimately, is taxation. It\u2019s alarming that this bill apparently predicates some 700 new staff being taken on by the IRD. Are they being taken on in a temporary position? I doubt it. Somebody has to be there to run the mechanisms that bring that $50 billion in over the next four years.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000080\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003EThe great thing is, you know, I\u2019ll bet there was never any systematic going-through of the Budget prior to it being announced yesterday by the Labour backbench. No idea. They\u2019ll just take it as read, take it as being absolutely 100 percent, no worries, don\u2019t ask questions. It\u2019s been evident from the speeches that we\u2019ve had today. The question arises: what will happen at the end of the three-month period? I\u2019ll tell you what\u2019ll happen: there\u2019ll be a Christmas bonus. Grant Robertson will put on his red hat with the fluffy white pom-pom and he\u2019ll give out a Christmas bonus. Because all of the remedies that failed the economy in the past\u2014the 1950s, 1960s, 1970s\u2014are being trotted out by this Government. You can\u2019t get past the fact that when there is a massive amount of money being spent\u2014like the 68 percent increase in Government spending in four years. Imagine what that\u2019d be like in your household; it\u2019d be phenomenal. And the question is: why is the Government not looking at the drivers of inflation in this country? We keep on getting told, \u201COh, it\u2019s the Ukraine war, it\u2019s COVID, it\u2019s all the sort of slowdown in the world.\u201D It\u2019s a big chunk of debt that this country has got. It was the right thing to do to go to the balance sheet to try and get the economy held together. But it is not the right thing to cripple the economy by putting the sort of pernicious tax regimes in place that this Government seems so hell-bent on. Where is the incentive for producers in this country? Go back to that question I raised before: why is the Government so happy to say that a $350 one-off payment is going to sort things out for 2.1 million New Zealanders? That is alarming that that\u2019s the sort of thinking that\u2019s going on. Day by day, the costs of life for those people who are in those income brackets\u2014and remember, that\u2019s the upper end. If you\u2019re on $71,000, nothing. That\u2019s the upper end. So the squeezed middle is a real group of people. It\u2019s not some term just grabbed out of anywhere. It is a massive group in this population. There\u2019s no way that they\u2019re going to be able to come off this temporary assistance and say, \u201CWell, phew. Thank goodness we got through that. It\u2019s all over now. Cost of living has suddenly settled. Look at that. There\u2019s some new land for some supermarkets; that\u2019ll make a big difference to my life.\u201D That sort of thing is not going to happen, and nor is the pressure on fuel price going to go away. So the real question also is\u2014another real question; so many questions come out of this Budget: who is going to pay in the end? Remember, history will tell you it\u2019s always those who are on the bottom end of the earning scale.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00226590faa0-f76b-4386-84f3-9b06296cc772\u0022 data-id=\u0022c24845c7177b46acb4ab936171a1f205\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000081\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226590faa0-f76b-4386-84f3-9b06296cc772\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c24845c7177b46acb4ab936171a1f205\u0022\u003ET\u0100MATI COFFEY (Labour):\u003C/span\u003E Yeah, history is important. We must remember history, and let\u2019s remember that when 2020 came around and the National Party put out their alternative budget, they had a $4 billion fiscal hole in it\u2014a $4 billion fiscal hole\u2014and when it was pointed out to them, they didn\u2019t do anything about it. So everything that they have stood up and said today, you should regard with a grain of salt because National are out of touch, they don\u2019t get the numbers right, and over on this side of the House, we do. That is why we need to be celebrating this cost of living payment. But it\u2019s not just a payment, it\u2019s a package. It\u2019s an absolute package. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000082\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226590faa0-f76b-4386-84f3-9b06296cc772\u0022\u003EI want to give props where they are absolutely due. That is to the Minister of Finance, Grant Robertson, for doing that; that is to our Prime Minister, the Rt Hon Jacinda Ardern, for actually putting this package together and listening to the voices of New Zealanders, because it was the voices of New Zealanders and we know it. That\u2019s right\u2014we\u2019ve got 65 MPs on this side of the House that go back home into our communities after we\u2019ve left this building, and they tell us about the cost of living crisis. We see it in our families, we see it in the people that we represent, and for that reason, we\u2019ve brought this package to the House. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000083\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226590faa0-f76b-4386-84f3-9b06296cc772\u0022\u003EThe cost of living payment is going to cost us $814 million, but that\u2019s a drop in the bucket compared to the kind of funding that we put out there into the community, but this is absolutely going to help those in our communities: a $350 payment and let us not undervalue that. A $350 payment is a lot of money, especially when it\u2019s going not to households but to actual individuals. That\u2019s the difference here, and that\u2019s going to make the difference for 2.1 million people who are not getting the winter energy payment already. And let\u2019s not overlook that as well: the winter energy payment is already going to over a million New Zealanders out there, supporting them. But let\u2019s not see that in isolation, because on 1 April, we actually brought in a raft of changes which made things better for our superannuitants, for our students, for those people that get Working for Families tax credits. We are absolutely making a difference to the cost of living for everyday New Zealanders. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000084\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226590faa0-f76b-4386-84f3-9b06296cc772\u0022\u003EThat side of the room, they are out of touch. Check out their social media. Last night they put out social media talking about our package, talking about what they would do, and talking about the average Kiwi income being $72,000. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000085\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00227a9561a95874432ab02025993394b952\u0022\u003EHon Member\u003C/span\u003E: It is.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000086\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226590faa0-f76b-4386-84f3-9b06296cc772\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d0a98ba8c9144254ae274eb3b9731573\u0022\u003ET\u0100MATI COFFEY\u003C/span\u003E: I\u2019ve got news for that member: back home in Rotorua, we aren\u2019t as lucky to get $72,000 every single year like the rich mates of the people on that side of the room. Back home, our average median income is a mere $28,500. The average personal income back home in Rotorua for the average Kiwi is $28,500. They will not be served well by the National Party and their proposed tax package on that side of the House. They will under this bill and I\u2019m pleased to support it to this House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022 data-id=\u002229e9f424b6fc46c7bca09ca4587a793f\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000087\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002229e9f424b6fc46c7bca09ca4587a793f\u0022\u003ERICARDO MEN\u00C9NDEZ MARCH (Green):\u003C/span\u003E I rise to speak on the third reading of the Taxation (Cost of Living Payments) Bill. I\u2019ve been listening through yesterday evening and this morning to the exchanges between members on this temporary $350 payment that is going to be given out to people earning under $70,000, and unfortunately excluding people on the benefit and superannuitants already getting the winter energy payment. What was really clear is that across the House, everyone agrees that there are families doing it tough, but somehow the people on the right, while berating this payment, are not offering tangible solutions to put permanent fixes to our income support system. It\u2019s all talk about austerity and cutting services. Meanwhile, on the left, while I welcome their approach to trying to address the cost of living payments, they\u2019ve introduced a bill which seeks to exclude some of the people that are doing it the toughest. I don\u2019t understand why we can in good conscience try to introduce a bill that seeks to address the cost of living pressures on low-income and middle-income New Zealanders and say to people on the benefits that they already received the winter energy payment and that they\u2019re all good.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000088\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003EDuring the committee of the whole House, it was really clear to me that the Minister thought that because people on the benefit already receive some top-ups, they are not struggling to make ends meet. That is not true. The Government had not consulted with people on the benefit or those on the ground since it was it clear on the departmental reports\u2014but they didn\u2019t even need to, there\u2019s already so much information out there telling us that people on the benefit are several hundred dollars behind being able to participate in their communities. So we tried to put an amendment to the bill to guarantee that people on the benefit, people under 18 who are on youth payment or who may be in work, would be included in this bill. The Government has an opportunity, still, to do this, because the bill doesn\u2019t prescribe who the recipients are, even though the Minister has made it clear that so far the intention is to exclude beneficiaries. So we\u2019re urging Labour to please, when you\u2019re looking at the recipients who are going to get this payment, review your position to include people on the benefit. Because we can\u2019t just keep talking about how low-income people are struggling and yet exclude so many of them in one of the most significant things that are being done in this Budget.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000089\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003EI mihi the other efforts around subsidies for free fares, the child support pass-on\u2014those things will make a difference. But let\u2019s not lie to ourselves. People on the benefit will continue being behind in order to make ends meet. And what that will create is a system where we\u2019re pushing people to Work and Income to get hardship grants just to survive. So the Green Party will continue pushing for permanent fixes to our income support system beyond these temporary measures, because in three months the inequality crisis and the cost of living pressures would have not fully gone away. In fact, some of these cost of living pressures on some whanau on lowest incomes, they\u2019ve been there since before this Government even came into power. We have had so many years of reports, and Labour has a mandate, a majority to basically transform our income support system so that it supports people.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000090\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003ESo I think the whole process has been deeply frustrating from the point of view that the exchanges that we have had, I think, ignored the realities of low-income families. It\u2019s been deeply frustrating to hear members of ACT and National berate this payment yet offer no alternatives to this. And so we look forward to campaigning to transform it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000091\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022663dedc0726c400ca47cbbea722c34d3\u0022\u003EToni Severin\u003C/span\u003E: Check out our alternative budget.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000092\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002219ed20db-5d6c-4464-9327-6cdd072bb4fe\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002277104183c8f448d4aba14b6e3801786c\u0022\u003ERICARDO MEN\u00C9NDEZ MARCH\u003C/span\u003E: I don\u2019t even understand the kind of exchanges that they\u2019re having here, because, again, they\u2019re not really offering any solutions\u2014the members to my right. So, again, I think all low-income people deserve a life with dignity. They deserve to be able to fully participate in their communities. They deserve to not have to be put into debt by our agencies that are meant to support them. The $350 may not be enough for some families to fully participate in their communities, but it will create some relief for people who are having to face the choice each week of whether to afford food or pay their rent. This would have made a tangible difference. So again I urge Labour to include people who have missed out on this payment and look to transformative solutions so that our families can thrive, not survive.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022 data-id=\u0022513bca2e2c41430890e9637a7e6a5de1\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000093\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022513bca2e2c41430890e9637a7e6a5de1\u0022\u003EDAMIEN SMITH (ACT):\u003C/span\u003E I just wanted to quote an article from Thomas Coughlan at the New Zealand Herald, which said that \u201CTreasury recommended against the Government\u2019s $350 cost of living payment for middle-income households saying it was a \u2018poor mechanism for supporting households with a longer-term problem\u2019 \u201D\u2014that is absolutely correct\u2014\u201Cand that it will make inflation worse in the short-term.\u201D And that\u2019s absolutely correct as well. \u201CInstead, Treasury believed the Government should investigate a \u2018more targeted form of support to lower-income households\u2019, according to advice released on the scheme. Treasury even thinks the payments would \u2018add to inflationary pressures in the short term\u2019 although \u2018the risk to longer-term inflationary pressures is relatively small\u2019 because the payments are temporary. On Thursday the Government announced [this, and] people earning less than $70,000 and who do not receive the winter energy payment [is estimated at] 2 million people. \u2026 Treasury said the Government should use the money set aside for the scheme \u2026 to pursue \u2018initiatives that more directly impact on interim child poverty targets\u2019 \u201D, which this Government and this Prime Minister came into Parliament to actually achieve.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000094\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ELet that sink in. The advice said that the Ministers wanted to forge ahead regardless of Treasury\u2019s recommendation that Inland Revenue be the agency to administer that scheme, but the IRD said that it should not have to be put in charge of that because it would be a critical operation for the IRD, which is currently managing COVID-19 payments, and it would blow out their key performance indicators for actually doing it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000095\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ESo you can see where the problems are. Under the ACT Party\u2019s alternative budget, which the Green Party obviously haven\u2019t read, the average worker benefit would be $2,802. A single person earning $60,000 would get an extra $800. An average income of $73,000 would get $2,800. A middle-income worker swimming against the tide of inflation in this \u201CBrain Drain Budget\u201D would leave because this country is working to the lowest possible common denominator in terms of aspiration.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000096\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ESo we\u2019re going to tax the productive to fund Labour\u2019s ideological advantages. But I would argue that at a dollar a day, this goes nowhere\u2014absolutely nowhere\u2014to helping with the cost of living crisis.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000097\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e60c1237-5e2d-4d0a-9678-ab10db67d1b7\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022f0112daeaa0745fbab216e30bb31a039\u0022\u003EAngie Warren-Clark\u003C/span\u003E: Rubbish!\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000098\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b226f3c2c08c4e1c97e806724cf25119\u0022\u003EDAMIEN SMITH\u003C/span\u003E: How is that rubbish?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000099\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e60c1237-5e2d-4d0a-9678-ab10db67d1b7\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022795064187c824ec09ca44d800815e01c\u0022\u003EAngie Warren-Clark\u003C/span\u003E: It\u2019s not a dollar a day.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000100\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022036de97abf6543eda38c8a53eb6ba638\u0022\u003EDAMIEN SMITH\u003C/span\u003E: How would you actually ascertain whether this is a good spend of money, when last night the Minister Mr Parker, who\u2019s usually respected in this House, could not even tell us how this was modelled, whether it should be $500, $400, $350, or $200? Come October, we\u2019ll be asking this question again when the cost of living crisis still will be there, inflation will still be high, and interest rates on your mortgages will still be high, and food prices will still be high.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000101\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ESo I\u2019d like to ask the Government to actually think about: why $350? Where did that come from? When was it decided? Was it because of the Newshub poll which said that three-quarters of this country don\u2019t agree with this Government on the cost of living crisis, that they had failed to anticipate even after all the COVID stimulus? The COVID problem is a different problem to the housing and cost of living crisis. It\u2019s absolutely a separate problem and it needs a separate set of solutions, and it\u2019s going to be here this time next year, come the election. So let\u2019s be honest about this, and let\u2019s be pragmatic. That\u2019s why I like Mr Faafoi, because sometimes he is really pragmatic, but the rest of the economic backbench of the Labour Party are throwing this out as a political spin\u2014and now we know what it\u2019s worth to get a vote from the Labour Party: it\u2019s $350.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000102\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ESo I would ask you to look at Thomas\u2019 article and actually say to the people of New Zealand: this is a short-term fix\u2014it\u2019s not a long-term fix\u2014and you\u2019re on your own. And that\u2019s what they know out there. And we\u2019re all tightening our belts, and you guys haven\u2019t, and that\u2019s what your opportunity was in the last Budget: tighten your belt, reduce spending, reduce the size of this Government, and give people back some taxes to have them pay for the cost of living crisis. Thank you, Mr Speaker.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022b464a62e-d900-452a-b842-e3cf4ccc6149\u0022 data-id=\u0022887df8418faf4a34b6e0dd9c0a490a6c\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000103\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b464a62e-d900-452a-b842-e3cf4ccc6149\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022887df8418faf4a34b6e0dd9c0a490a6c\u0022\u003EARENA WILLIAMS (Labour\u2014Manurewa):\u003C/span\u003E ACT and National members in this House are right that yesterday\u2019s Budget was a difficult one to prepare, in volatile and uncertain times around the world, and with inflation this week in the UK spiking to 9 percent. It was a difficult thing to do and I commend the finance Minister for his balanced approach that responds to the pressures that people are feeling. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000104\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b464a62e-d900-452a-b842-e3cf4ccc6149\u0022\u003EThis bill establishes the payments that will go directly to middle income earners to help with the cost of living pressures that are hitting people hard right now. That\u2019s the difference\u2014that\u2019s the difference when you have a Labour Government that sees the need of working people and responds immediately. That\u2019s the difference when the Government sees a crisis of COVID coming from a global pandemic and responds to keep people secure. That is what you have when you have a Labour Government that keeps people secure in their health and secure economically and financially. I thank the finance Minister for his work on this Budget.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000105\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b464a62e-d900-452a-b842-e3cf4ccc6149\u0022\u003EThere is one thing that hasn\u2019t been well canvassed in this House and I want to speak to it. That is the fact that the payments that this bill enables will be paid to almost all students. Labour has always been the party of students. We have ensured fair access to tertiary education. We are the party that introduced interest-free student loans. We are the party that stands with students to access tertiary education that is fair and available through the country.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000106\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b464a62e-d900-452a-b842-e3cf4ccc6149\u0022\u003EStudents are a group that has been hit hard by rising living costs while studying, as rent, transport, and food payments are a very large proportion of their costs. Students also are often precariously employed and don\u2019t have stable incomes. There is no application needed for these payments to go to students. They will go directly to their bank accounts, because they have IRD numbers.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000107\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b464a62e-d900-452a-b842-e3cf4ccc6149\u0022\u003EThere are also other things in the Budget for students, which makes students a huge winner in this Budget. They are things like easier access to first-home grants, which is something we haven\u2019t had before for this age group. There\u2019s the small-business loan scheme, which means that students starting out as business owners and entrepreneurs will have a huge boost to the way they can begin businesses when they don\u2019t have homes to borrow against, which has been the way that small-business owners have had access to capital in the past. This Government has also introduced the Community Connect scheme, which will provide half-price transport for everyone who holds a community services card, which will be most students.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000108\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b464a62e-d900-452a-b842-e3cf4ccc6149\u0022\u003ESo these payments in this bill will be a big boost for students, and I am proud of that. I\u2019m proud to stand with a Labour Government that responds to need where we see it and sticks true to our values. I commend this bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022 data-id=\u0022a4fd379360be4f0ca8358803120bd255\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000109\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022a4fd379360be4f0ca8358803120bd255\u0022\u003EMATT DOOCEY (National\u2014Waimakariri):\u003C/span\u003E Thank you very much, Mr Speaker. Well, what a fascinating debate, and what we have learnt over the last 24 hours\u2014that last member who\u2019s resumed her seat, Arena Williams, talked about students. How about students who are under 18? They will not be entitled to this. We questioned the Minister yesterday in the committee of the whole House: what about independent students living away from home, providing for themselves? He couldn\u2019t give an answer. And you know why? Because this policy\u2019s been made on the hoof and they have not thought through all this.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000110\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EWe saw it in the paperwork from the advisers: \u201CThere is a risk that significant issues with the resulting proposal have not been identified.\u201D Because this was rushed through, thought up on 4 May, and what we saw in the paperwork was that the IRD and the Treasury had an argument because none of them wanted to be the lead delivery agency. They said, \u201CNo, IRD will do it.\u201D, and IRD said, \u201CNo, Treasury will do it.\u201D None of them wanted to do it, and it\u2019s outrageous.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000111\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EThere\u2019s a quote here: \u201CThis makes a one-off payment a poor mechanism for supporting households with a longer-term problem.\u201D And that\u2019s the issue here. This Government\u2019s been caught on the hoof. They would not accept a cost of living crisis. So they put a band-aid in place\u2014$350. And you\u2019d think for all the bureaucrats they have\u2014and there was an argument about people in the top income bracket. Well, how many bureaucrats are now earning over $100,000 a year thanks to this Government? And you\u2019d think with all their advisers, not one of them would have said, \u201CStop. Hold on. The average income for a Kiwi is $72,000 and they won\u2019t be entitled to this under Labour\u2019s plan.\u201D\u2014$72,000 is the average wage for a Kiwi, and you\u2019re not entitled. Who would have thought! You\u2019ve got to scratch your head. But this is the reality when you make policy on the hoof. It\u2019s a bit like Dad\u2019s Army.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000112\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EThen it even gets worse, because the Minister had to get up in his first reading speech and accept they don\u2019t have bank details for over 200,000 people yet who are entitled to this, over 10 percent. And then he had to say, \u201CThe IRD is still applying for funding to resource the 750 fulltime-equivalents that are needed to roll out this programme. And we know one thing: under a Labour Government, 750 actually probably means about 1,000\u20141,000 fulltime-equivalent, on top of the 10,000 extra bureaucrats they\u2019ve employed in Wellington already. You\u2019ve really got to scratch your head with this\u2014a band-aid solution to something that is very important for many Kiwis who are under a lot of financial pressure today because of domestic inflation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000113\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EThese guys have blown $6 billion in the Budget. They\u2019ve raided next year\u2019s Budget by $2 billion, half a billion in the Budget after that, and then because they got caught out with this, this policy\u2019s going to cost $800 million on top of that. They\u2019re out of control, this Government. It\u2019s addicted to spending.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000114\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003EOne thing I will leave the House with is, what is the purpose of a Labour Government if it doesn\u2019t stand up for hard-working Kiwis? And what we have today is that for the average Kiwi on the average wage, they will get a big New Zealand Transport Agency red zero. You know those ones that cost $10,000? That is what the average Kiwi will get today\u2014zero. If you\u2019re on $72K, the average wage in New Zealand, you will get zero dollars. And we were challenged by one of the Government MPs down the back there: there\u2019s been no alternate plan put out. Well, I go and say, check. ACT has put an alternate plan out. National has put their permanent tax plan out, that would give an average Kiwi on $72,000 tax relief of $800 a year. Compare that to zero\u2014zero from this Government. They talk a big game but they do not care about hard-working Kiwis.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e60c1237-5e2d-4d0a-9678-ab10db67d1b7\u0022 data-id=\u00224ae7b18cded842efb28e62713f52a474\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000115\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e60c1237-5e2d-4d0a-9678-ab10db67d1b7\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00224ae7b18cded842efb28e62713f52a474\u0022\u003EANGIE WARREN-CLARK (Labour):\u003C/span\u003E Thank you, Mr Speaker. It\u2019s a real pleasure to rise and I am delighted to speak in this third reading. For 81 percent of New Zealanders, 2.1 million people, the average wage is 68K\u2014$68,000 roughly. I don\u2019t know where they got their figures from; probably the same place that $4 billion fiscal hole was from.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000116\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e60c1237-5e2d-4d0a-9678-ab10db67d1b7\u0022\u003EBasically, I looked at what this means for everyday New Zealanders. Basically, what I did was I calculated my income when I was pre here in Parliament. I was on roughly around $70,000. So I looked at that $70,000, and I still kind of spend like I\u2019m still on that salary. So I looked at the cost of what I would be getting for the $116 per month for the three months. And for those of you who are concerned that IRD does not have your bank account number, we urge you to be in touch. Just go online and give them your bank account number. Some people don\u2019t like to give the IRD their bank account number, but that\u2019s OK. If you want this, you\u2019ll do so.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000117\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e60c1237-5e2d-4d0a-9678-ab10db67d1b7\u0022\u003ESo there were 14 items that I could purchase for $104: white rice, cheese, 8 litres of milk, bread, 10 kilos of potatoes, 4 kilos of frozen drum sticks, royal gala apples, mixed vegetables, spread, tea bags, coffee, sugar, pasta, silver beet, fruit jam, and crunchy peanut butter. I still had $10 left over, was going to whip down to The Warehouse and buy their $10 can of Milo for the kids. So I also looked and I have 65 litres in my vehicle and I could get 40 litres of fuel. I actually put $60 a week into my vehicle for fuel, so that\u2019s going to help tremendously. The other thing: I pay $60 a week on power. So this is two weeks out of four weeks of power paid for me. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000118\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e60c1237-5e2d-4d0a-9678-ab10db67d1b7\u0022\u003ESo when we hear all of these wonderful things about how terrible it is, actually real Kiwis are going to have more in their pocket. It\u2019s going to help us to manage this short-term issue and I\u2019m really pleased and delighted to commend it to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002295945ace-51e8-4dbc-a0e3-c19f4ed99ed9\u0022 data-id=\u002246b8cf9e779e4de5897301dc68df1c93\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000119\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002295945ace-51e8-4dbc-a0e3-c19f4ed99ed9\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002246b8cf9e779e4de5897301dc68df1c93\u0022\u003EANAHILA KANONGATA\u2019A-SUISUIKI (Labour):\u003C/span\u003E Kia ora e te Mana Whakaw\u0101. It is always an honour and a privilege to speak in this House, especially today. And can I acknowledge the Minister of Finance. Yesterday, he gave us a balanced, balanced Budget. He said, \u201CThe investments we are making in this Budget build on the progress [we\u2019ve] made in Budget 2021.\u201D And may I remind this House what the goal of the Budget is: securing our future. One, we are continuing to keep New Zealand safe from COVID-19. Two, we\u2019re accelerating the recovery from the rebuild and impacts of COVID-19. Three, we are laying the foundations for the future, including addressing key issues such climate change, change housing affordability, and child poverty. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000120\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002295945ace-51e8-4dbc-a0e3-c19f4ed99ed9\u0022\u003EYesterday, I heard the leader of the National Party say, \u201CThe bureaucrats\u2014they\u2019re getting thousands of bureaucrats.\u201D The wage subsidy last year\u2014we had the historic payment to businesses by those public servants. If it weren\u2019t for those public servants, the payments would not reach the businesses so they can pay their workers. The wage, the subsidy, the winter energy payment\u2014the average wage in the Papakura electorate is $56,000; $27 at Countdown Papakura today would get you the following: one loaf of bread, one butter, 2 litre milk, 1 kilogram of rice, a dozen eggs, a block of cheese, a can of tuna. What can you get for $2, if the National Party had their tax cuts? A $2 toilet paper\u2014the cheapest toilet paper is $2. People, when we\u2019re talking about real people, we\u2019re talking about averages. Unfortunately, Pacific people always end up at the bottom, and I want to acknowledge the leadership of the Prime Minister in that as well. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000121\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002295945ace-51e8-4dbc-a0e3-c19f4ed99ed9\u0022\u003EI\u2019ve ran out of time because it\u2019s a quick call, but I want to acknowledge this side of the House\u2014when we\u2019re talking about people, we know what those people are eating every day because we speak with them, we talk with them. And when we\u2019re talking about average people, we are talking about mums and dads next door to us. I end this by saying I commend this bill to the House. Malo.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022 data-id=\u0022d2044114ccc341cd8929f40889322da1\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000122\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022d2044114ccc341cd8929f40889322da1\u0022\u003ESIMON WATTS (National\u2014North Shore):\u003C/span\u003E This will be a lot better, I assure you. This bill is short-term measures for a long-term problem, a cost of living band-aid on what is becoming a rapidly growing wound for Kiwi households. Hard-working Kiwis are going backwards under this Labour Government. A reactive response, a tactical response, is what we\u2019ve seen in this bill. As Kiwis go into Christmas this year, they go into Christmas with a lack of certainty and a lack of trust and confidence in a Government who doesn\u2019t have their backs.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000123\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EThe ANZ quoted yesterday, \u201CInflation isn\u2019t just a global problem that New Zealand is importing; it\u2019s a domestic issue too.\u201D\u2014completely in contrast to what we\u2019ve heard from the other side. I tell you what, let\u2019s take a look at the front page of the Dominion Post today, which I\u2019m holding up now. I think this personifies the reality and the attitude of Kiwis to this Budget. We have a finance Minister who is absolutely addicted to spending, and that page summarises how much of a flop this Budget is.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000124\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003ELabour\u2019s spending addiction means this country\u2019s books are going backwards\u2014a bill that is part of an unprecedented $6.5 billion of new spending, of which this bill makes up $814 million. The squeezed middle in this country are paying the price for a Labour Government\u2019s lack of fiscal discipline and mismanagement. If you\u2019re the average wage earner in this country on $72,000, under this, what we heard yesterday, you get nothing under Labour.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000125\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003ETotal Government borrowings are now over $200 billion. Debt is increasing at 41 percent of GDP, and the average Kiwi family is paying $150 extra a week on living costs, so $27 a week for three months is a short-term sugar hit. It is not going to be anything of substance. New Zealanders need a sustainable long-term plan. Under National, National would fight inflation. Under National\u2019s tax plan, someone on the average income of $72,000 per annum would be better off by $860 a year. Under Labour, they get nothing. A National Government, which I am proudly part of, led by Christopher Luxon and Nicola Willis, will deliver to New Zealanders and provide meaningful long-term relief for a crippling impact of a cost of living crisis, and, more importantly, deliver an aspirational future for this country.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a1f7bbd1-b6ae-41c0-963b-dbe1251f5540\u0022 data-id=\u00225d7b350f895846c1afa4f88b1bdfd476\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000126\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a1f7bbd1-b6ae-41c0-963b-dbe1251f5540\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00225d7b350f895846c1afa4f88b1bdfd476\u0022\u003EKIERAN McANULTY (Labour\u2014Wairarapa):\u003C/span\u003E Thank you very much, Mr Speaker. There\u2019s been a lot of emotion this morning. I think it\u2019s because the National Party realise they have been backed into a corner here, and they have a choice. They have a choice today to actually support 2.1 million workers. That\u2019s actually what this is today. They can heckle all they like but the reality is that in about two minutes\u2019 time we\u2019re going to vote on this bill, and they\u2019re going to vote no. This bill supports 2.1 million workers and they\u2019re going to vote no.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000127\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a1f7bbd1-b6ae-41c0-963b-dbe1251f5540\u0022\u003EThey\u2019ve been talking about the average worker, and they know that the average wage in this country is less than $70,000 but they keep saying it\u2019s higher. People can draw their own conclusions as to why they do that knowing that it\u2019s not true. The facts are that a worker on the average wage will benefit from this package. But I wonder why they keep using average over median. Because when you\u2019re looking at average wages, they could increase the wages of every single CEO in the country, the people they want to give tax cuts to, and the average wage will go up. But the rest of New Zealanders don\u2019t benefit. That\u2019s why the average wage is a poor measure.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000128\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a1f7bbd1-b6ae-41c0-963b-dbe1251f5540\u0022\u003EThe median wage, when you have the same number of workers above that line as you have below, is significantly lower\u20142.1 million workers. Between this payment and the winter energy payment, four out of five workers will be receiving assistance from this Government over winter.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000129\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a1f7bbd1-b6ae-41c0-963b-dbe1251f5540\u0022\u003EHere\u2019s something for people to reflect on: the National Party voted against the winter energy payment, and they refused to answer a question as to whether they will scrap it if they were to win the election. The National Party is about to vote no for this out of spite. They are, in their minds, letting the good be the enemy of the perfect because they are so puritan to think that only tax cuts are the answer. But tax cuts won\u2019t help those that need it. Even Chris Luxon admits that. When he was asked what the highest earners will do if they got a tax cut, he would say \u201CThey would probably save it.\u201D How is that targeted for those that are hurting under a cost of living issue? It\u2019s not. It\u2019s looking after the big end of town. That\u2019s what they care about. They have a chance to prove me wrong, but I guarantee you right now, they won\u2019t.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u0022403dc19c61a04cf08f06ca121bdb3082\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the Taxation (Cost of Living Payments) Bill be now read a third time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 67\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000130\u0022\u003EBill read a third time.\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022\u003EBills\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000131\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022fece718e3c1b404c87cb78fbd5e1a1b6\u0022\u003EIncome Insurance Scheme (Enabling Development) Bill\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000132\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u00224103f1b477c146a8a8f033e0088ac97d\u0022\u003EFirst Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022 data-id=\u00229dea15c77b02409993b4e3d15242d088\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000133\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00229dea15c77b02409993b4e3d15242d088\u0022\u003EHon CARMEL SEPULONI (Minister for ACC)\u003C/span\u003E on behalf of the Minister of Finance: I present to the House a legislative statement on the Income Insurance Scheme (Enabling Development) Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000134\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002239348406701c41a5ac2fa855859586b5\u0022\u003EASSISTANT SPEAKER (Hon Jacqui Dean)\u003C/span\u003E: That legislative statement is published under the authority of the House and can be found on the Parliament website.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000135\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00228e4dffa0264d47e696a63bd7442736f6\u0022\u003EHon CARMEL SEPULONI\u003C/span\u003E: I move, That the Income Insurance Scheme (Enabling Development) Bill be now read a first time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000136\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EThe Government, working alongside Business New Zealand and the New Zealand Council of Trade Unions, has consulted on an income insurance scheme to support workers who lose their jobs through no fault of their own. More than 100,000 New Zealanders lose their jobs every year, and more when we go through an economic shock like COVID-19. It\u2019s often difficult for people to find work that matches their skills after a redundancy, and they end up taking lower-paid jobs. This wage-scarring costs our economy more than $15 billion per year. It makes it more difficult for our employers to get the skilled workers that they need, but it also causes hardship for individuals, families, and wh\u0101nau, and disproportionately impacts low-income, M\u0101ori, and Pacific households. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000137\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EAn income insurance scheme like the one we have consulted on has the potential to deliver three key benefits to workers and employers across the labour market. First, we want to minimise the immediate financial impact of a sudden job loss for workers and their families. Second, we want to support workers back to good jobs by ensuring they have income in the period immediately after job loss. Instead of being forced to take the first job offered, we want workers to have time to find the right job for their skills or to retrain for a new, fulfilling career path. Third, we want to support the economy to adjust more rapidly to shocks and downturns. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000138\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EIn February this year, we asked New Zealand to give us feedback on a detailed proposal for a New Zealand income insurance scheme. It is important that we hear the views of New Zealanders about the proposed scheme, how they think a scheme should be designed, how it should be operated, and, of course, how a scheme might impact them. Consultation finished in late April, and we are currently working through the many submissions and pieces of feedback we received. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000139\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003ENew Zealand is one of a small number of countries that does not currently provide a social insurance scheme for job loss due to redundancy or health conditions and disability. However, New Zealand has operated a successful accident compensation scheme for 50 years on a social insurance basis. ACC has proven they have expertise in delivering a successful social insurance scheme. They have been identified as an agency that could deliver a scheme if Government decides to establish one. However, ACC is currently prevented from working substantially on the development of a new scheme by the Accident Compensation Act 2001, which prohibits ACC from undertaking work that does not relate to the purposes of the accident compensation scheme. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000140\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EThe Income Insurance Scheme (Enabling Development) Bill will enable ACC to set up a strong implementation process for a New Zealand income insurance scheme using funding provided in Budget 2022, most of which has been set in contingency pending a decision on whether to establish a scheme. The bill does not commit the Government to proceed with or to use ACC as the delivery agency for the scheme but simply provides ACC with a function ring-fenced from its existing functions relating to the development of the scheme.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000141\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EAs Minister for ACC, I see the benefits for New Zealanders from an income insurance scheme delivered by ACC. It has experience unmatched in New Zealand when it comes to delivering social insurance. As the Minister for Social Development and Employment and Minister for Disability Issues, I see the benefit of an income insurance scheme in helping to address some of the discrepancies between the ACC scheme and our health and welfare systems. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000142\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EThe income insurance kaupapa would sit alongside and complement, not replace, the work the Government is doing in my and other Ministers\u2019 portfolios to transform the health, disability, and welfare systems. A wide range of Government agencies and Ministers have been involved in the development of the income insurance proposal. I want to thank all of them for their involvement and assure New Zealanders that we will continue to work across portfolios to make connections between this and other system transformation kaupapa. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000143\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EI also see benefits to ACC if a scheme such as this is added to their portfolio. Ensuring and supporting workers who lose a job due to a health condition or disability will broaden the current focus on injuries and accidents and allow a wider view of workers\u2019 needs, and the economies of scale from operating two such similar schemes are significant. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000144\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EI note, though, that no final decisions have yet been made to establish a scheme or about an agency to deliver it. Government expects to decide on whether to establish a social insurance scheme by July, including whether to use ACC as the delivery agency. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000145\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EThe bill will establish new legislation, an Income Insurance Scheme (Enabling Development) Act. The Act will either be replaced when legislation is passed, if legislation is passed, to establish an income insurance scheme, or it contains a sunset clause ensuring that it will be repealed by 31 March 2025 if the scheme does not go ahead. ACC already has the operational expertise to operate an income insurance scheme. A key provision of the bill is clause 9, which establishes a new function for ACC: \u201Cto carry out all work reasonably required for it to be in a position to bring an income insurance scheme into operation.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000146\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EThe bill also includes information-sharing provisions, which are necessary for ACC to establish and test information-sharing systems for the scheme. These provisions are needed so that ACC can develop system requirements that are effective and provide appropriate protections for personal information once the scheme is up and running.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000147\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EThe bill recognises the Crown\u2019s responsibility and commitment to Tiriti o Waitangi / Treaty of Waitangi principles. These must be front and centre in any work ACC does to develop a scheme. The way a social insurance scheme is developed and operationalised will have significant implications for M\u0101ori employers and workers, and their wh\u0101nau, hap\u016B, and iwi. M\u0101ori currently experience disadvantage in the Labour market, including being more likely to be made redundant than any other workers. The provisions which primarily require ACC to engage with M\u0101ori and be purposeful in developing a scheme that will work for M\u0101ori are necessary to ensure that if a scheme is developed, it will help reduce these inequities.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000148\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003ENew Zealand workers, employers, and the wider economy have for too long lacked the support that a social insurance scheme can provide. Almost every other developed country has a long history of providing a social insurance scheme to protect workers, help employers find the workers best suited to their requirements, and support the economy during economic shocks. This Government thinks now is the time for New Zealand to join those countries and has consulted on a proposal for a scheme to do so. If a decision is made to progress such a scheme, ACC must be involved in that work from day one. The bill enables this. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u00223f275fbd87264dbebebeab54e2e4ad5d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000149\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00223f275fbd87264dbebebeab54e2e4ad5d\u0022\u003EASSISTANT SPEAKER (Ian McKelvie)\u003C/span\u003E: The question is that the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022 data-id=\u002283301633aee9487592d8a210c3ef7452\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000150\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002283301633aee9487592d8a210c3ef7452\u0022\u003EHon PAUL GOLDSMITH (National):\u003C/span\u003E Well, we will not be agreeing to this motion, Mr Speaker. We\u2019ll be voting against it because this bill and what it represents is a slap in the face for the squeezed middle who are getting smashed by the cost of living crisis in this country. We\u2019ve just come out of a Budget, and everybody\u2019s looked at this Budget, which has been the biggest-spending Budget in recent history. During the John Key - Bill English era we had new spending in each Budget of somewhere around a billion, sometimes less, and sometimes a little bit more. Grant Robertson allowed himself $6 billion, the largest amount of new spending in a Budget ever, and even that wasn\u2019t enough. He had to reach out for all the other cookie jars available to reach into the next Budget to get an extra few billion, and into the old COVID fund, to get a bit of extra money. He was reaching around and there\u2019s $9 billion of new spending in this Budget.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000151\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003ESo the obvious question people ask themselves is, \u201CWell, hang on a moment. Where\u2019s this all going to come from?\u201D Inevitably, if we keep on spending more and more and, unfortunately, not getting good results for it, the inevitable consequence is that we\u2019re going to have to pay more tax down the line. This Government is sneaky when it comes to tax, and that\u2019s why they love the inflationary environment which puts incomes up into higher tax brackets and increases the flow of income tax. And now we discover, the day after the Budget, that they\u2019re introducing a jobs tax\u2014another new tax. They promised that they wouldn\u2019t bring in any new taxes, but I suppose they\u2019ll say. \u201CThis isn\u2019t a tax; this is a levy.\u201D But for the New Zealanders who will have to pay it, it doesn\u2019t matter whether it\u2019s a levy or a tax, it\u2019s still money coming out of their pockets and into the Government\u2019s coffers. And so the proposal that is being considered for this jobs tax is 1.39 percent for each earner and for the employer. So if you\u2019re on the average wage, 72,000 bucks, that\u2019s a thousand bucks a year. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000152\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EWe\u2019ve just heard with great fanfare that this Government is going to give everybody 350 bucks\u2014well, not everybody; everybody earning less than the average wage\u2014for three months, and then they\u2019re going to stop it; they\u2019re going to take it away. So they\u2019re giving, on the one hand, and on the other hand, they\u2019re going to sneak another thousand bucks a year out of your pocket for the new jobs tax. What a sort of crooked arrangement that is, and it\u2019s typical of this sneaky Government. They are addicted to spending. They can\u2019t stop spending. They always want to do more\u2014no, they don\u2019t want to do more; they want to announce more and they want to talk about more but they fail to deliver and New Zealanders are picking up the price. It is all making it more difficult for Kiwis who are struggling to get by and dealing with the cost of living crisis.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000153\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EWhen we look at this bill, Mr Speaker\u2014you might be interested in the details of this bill\u2014this bill is a bill to prepare for another bill. I suppose that\u2019s how you would describe it. It\u2019s allowing the Accident Compensation Corporation to do some preparatory work for what\u2019s called the income insurance scheme that this Government is considering introducing. You can only conclude by the fact that they\u2019re introducing this bill that the Government is pretty keen to bring in this new jobs tax, and that is to bring in income insurance for people who are made redundant and who are sick. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000154\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003ENow, of course, New Zealanders are all aware that we already pay an enormous amount in tax for the benefit system that we enjoy in this country\u2014it looks after people who are either sick or out of work, and that\u2019s as it\u2019s been for a long time. This proposal is to add another layer on to that\u2014income insurance\u2014paid for by a levy. But the problem fundamentally with this is that this Government right throughout its history in the last five years has failed to recognise that if a Government adds to the cost structure of the economy and to the costs facing businesses, it inevitably flows through to consumers\u2014because you can\u2019t keep adding costs to businesses without there being a result. And we\u2019ve seen that\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000155\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022011396d874b44315b509b73dae031419\u0022\u003EHon Members\u003C/span\u003E: Oh!\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000156\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002203ac7368b48e4b759d3662db6a00736a\u0022\u003EHon PAUL GOLDSMITH\u003C/span\u003E: \u2014and the Green Party groans, I suppose\u2014in the housing space. If you pile a lot of costs on to landlords, surprise, surprise, they pass some of those costs on to the renters, and rents go up, and that makes it more difficult for New Zealanders to get ahead. That\u2019s why New Zealanders are struggling so much with high rental costs\u2014it\u2019s partly because this Government keeps piling costs on that sector.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000157\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EWhen we look at the employment side, we\u2019ve got the fair pay agreements working their way through the House, which will add rigidity to the public sector. We\u2019ve had extra sick leave, we\u2019ve had higher minimum wages, all these wonderful things\u2014well, the fair pay agreements are not wonderful in any way, shape, or form. They will add rigidity into our employment system at a time when we need to be flexible and agile in order to compete with the rest of the world. The Government wants to take us back to a clunky 1970s-style industrial relations framework. It\u2019s so bizarre that they would think that\u2019s a sensible idea. I don\u2019t know why, but, anyway, they are.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000158\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003ESo that adds costs to the whole system\u2014extra public holidays, you name it; just throw it in. It\u2019s a Father Christmas approach to Government\u2014if you want it, you can have it. Higher minimum wages\u2014that\u2019s fine, but, inevitably, surprise, surprise, when you add to that cost structure that businesses face, the consumers end up paying for it, and that\u2019s one of the reasons for rising inflation. It\u2019s not the only reason but it\u2019s one of the reasons for the driving up of inflation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000159\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThere\u2019s a jobs tax on top of all the other issues, so employers will have to pay 1.4 percent in jobs tax. The employees will pay it as well. It all goes into a system which is estimated by the Treasury to cost $3.5 billion a year. Now, I don\u2019t believe for one second that it will cost $3.5 billion a year if it is introduced. Some estimates already are suggesting $4.7 billion, but it will only be the start. At the beginning of the discussion the Minister claimed, incorrectly, I think, that Business New Zealand were all excited about this. They were quite enthusiastic early on. That enthusiasm has dimmed substantially, I understand, because what initially focused on a redundancy issue which was tied to the relaxation of other redundancy requirements so as to overall bring flexibility to the system has already expanded to sickness and other issues. And you can rest assured that once the system is set up, it will balloon and balloon and balloon, and the costs will grow and grow.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000160\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThe whole welfare system, which we continue to pay for, won\u2019t be reduced in any way, shape, or form, with a whole new system developing on top, and New Zealanders will end up suffering under the burden of it. So this bill is setting up an arrangement in order to set up a bill that we won\u2019t support, either. It\u2019s an announcement about an announcement. It\u2019s a bad announcement about a bad announcement that\u2019s coming down the line. At the end of the day, this is a backwards Budget. New Zealanders are going backwards and this is not going to help. All the talk about helping with the cost of living with a small payment to a small group for a short time will be more than wiped out by this extra jobs tax which is coming down the track.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022 data-id=\u002201d0563825394dd88791206564fcfdff\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000161\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002201d0563825394dd88791206564fcfdff\u0022\u003EJO LUXTON (Labour\u2014Rangitata):\u003C/span\u003E Thank you, Mr Speaker. Well, once again, the House and the public of New Zealand have just heard that the National Party are going to vote against something that will support our hard-working New Zealanders, should they find themselves in a situation where they become unemployed through no fault of their own. We are hearing that more and more. The rhetoric across the House is, \u201CWe\u2019ve got to support middle income, the squeezed middle\u201D everything else\u2014every measure that this Government is putting in place or suggesting is being voted down by those opposite out of pure political spite. Pure political spite.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000162\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022\u003EI note that the previous speaker did talk about Kirk Hope, who actually says income insurance scheme, not a job tax. And I quote; he says: \u201CIt was designed to protect workers because economic shocks that lead to income shocks have long-term effects on those directly affected, as well as their families, communities, and local businesses where they buy their goods and services.\u201D But, actually, it does not put this social insurance scheme into place. What this bill actually does is give the ACC the ability to begin the preparatory work should New Zealand decide that this is something that we wish to bring in to support those who lose their jobs through no fault of their own.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000163\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022\u003EWe heard that over 100,000 Kiwis lose their job every year. Can you imagine if that was something that was to happen to you or anyone here who may not\u2014you know, if you weren\u2019t an MP, you had some other form of employment, the panic that would set in when you hear that you are losing your job; particularly if you are a lower-income earner and you don\u2019t have that ability to save for that rainy day to prepare for a shock like that. This will allow you some time to just breathe, to have a think, to reassess what you\u2019re going to do, perhaps retrain so that you are not forced into taking the first available job that comes along, one that you may not be suited to, but one that you have to take because you have to support your family. Because people deserve to be able to work in a job that provides them with dignity, and one that they get self-satisfaction from, not something that they have to do because they simply have no choice.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000164\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022\u003ENow, we heard that this idea went out to the public in February to have a think about whether it is something that they think that we should be doing. And we know that submissions have closed as of April in this year. The decision or the thinking around that ACC may well be the best organisation to facilitate this social insurance scheme, it does make sense, although no decision has been made that that would absolutely, definitely be them. But it would make sense if they were the chosen agency, because they are used to dealing with ACC payments to people around New Zealand, so they do have an idea of how that needs to work.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000165\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022\u003EThis piece of legislation, as I said before, simply allows ACC to begin that preparatory work, should it be something that New Zealand decides that it wishes to undertake. What it also allows is that if New Zealand decides that it is not something that they wish to do, then there will be no further legislation required in order to follow up with that decision.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000166\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022\u003EWe heard the Minister talk about how New Zealand is actually one of the only very few countries that does not have a social insurance scheme like this\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000167\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002202d13ff6dff042de92d1a309a9fca466\u0022\u003EHon Scott Simpson\u003C/span\u003E: We have an unemployment benefit.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000168\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00220ba2d0bca7364f459ccfe5380736a299\u0022\u003EJO LUXTON\u003C/span\u003E: We heard Mr Simpson just say that we have an unemployment benefit. Well, Mr Simpson, the unemployment benefit is for those that are, as you mentioned, job seekers, but when someone is working in a job that they lose through no fault of their own, they are used to a certain income. Their family relies on a certain level of income, and when that is taken away very quickly, through no fault of your own, you do need some assurance that you are going to be able to maintain that level of living that you are used to, to be able to pay the bills that your family requires you to pay in order to survive, albeit at a slightly reduced amount than your 100 percent wages that you\u2019d be used to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000169\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022\u003EThis is a really important step towards giving people that certainty and that security, should New Zealand decide that it is something that they wish to do. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022 data-id=\u00228d77d515e7e34b67b5216ad5bd4276d1\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000170\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00228d77d515e7e34b67b5216ad5bd4276d1\u0022\u003EHon SCOTT SIMPSON (National\u2014Coromandel):\u003C/span\u003E Well, thank you, Mr Speaker. We\u2019ve just heard a socialist trying to dance on the head of a pin to justify taking away more tax money from hard-working New Zealanders to redistribute to other taxpayers in a way that only socialists can actually justify in their own heads. This has been a Budget that finds us in this urgency debate, debating a piece of legislation that is to establish the mechanism for further taxation of hard-working New Zealanders, under the most highly inflationary times that we have seen in 30 years, when the squeezed middle is being squeezed tighter than ever before and when New Zealanders are generally genuinely suffering as a result of the misguided, inappropriate, and addicted-to-spending Government that the socialist party in Government at the moment represents.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000171\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022\u003ENew Zealanders will have an opportunity at the next election to put that right, and they will, because this piece of mechanism to create the administrative model that would allow the Accident Compensation Corporation\u2014can you believe it? The hint that this piece of legislation is not needed is in the name of the agency that they want to amend to allow them to do it. It\u2019s called the \u201CAccident Compensation Commission\u201D. It was set up to provide support for people who have accidents, not as a mechanism for taxing people more than they already are. We\u2019ve had this ridiculous situation of a panicked response by the Government who have realised that they have to do something about the squeezed middle. They have to do something about the cost of living crisis confronting so many New Zealanders. So what they\u2019ve done is a sticking-plaster solution, and they\u2019re going to give those people who earn less than $70,000, $350 to help pay for a $20 block of cheese or a one-way ticket to Australia or some other thing. That will be helpful to some people. But if you are on the average income of $70,000 and the mechanism that will trigger the taxation resulting from this piece of legislation comes into effect, you\u2019re going to be a lot worse off to the tune of about $1,000 a year, not just once but every single year in perpetuity. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000172\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022\u003EThe question has to be asked: why? Well, it\u2019s all about a socialist mind-set that says, \u201CWe know better how you should live your life and how you should have your money spent for you.\u201D\u2014that big Government is good and that Wellington knows best, and particularly that the Labour Party and the trades hall, their close cousins, know best how you should live your life and how you should have your money spent for you. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000173\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022\u003EAnd make no mistake about this, this is the first step. This piece of legislation being passed under urgency, without the scrutiny of a select committee process, is the first step along the imposition of this new tax that Labour want to introduce. Well, I\u2019ve got news for the member who has just resumed her seat: she\u2019s going to lose that seat at the next election. There is no chance that the good people of Rangitata will re-elect a socialist of her mind-set to represent them in the Parliament of New Zealand. Because the good people of Rangitata know that their hard work and efforts don\u2019t need to be, or should not be, squandered by a Government that is very free with the spending of other people\u2019s money, very free with the reallocation of other people\u2019s income to purposes and causes that they, in their weird academic world, think is somehow justified, right, and appropriate. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000174\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022\u003EWell, a change is coming and it\u2019s coming sooner than this Government thinks, and we on this side of the House oppose this sneaky Government and their jobs tax. We oppose the sneaky means that they are using under urgency to introduce the mechanism to create their sneaky jobs tax. We will oppose the sneaky jobs tax when it comes into Parliament. And, what\u2019s more, as soon as we get an opportunity, a re-elected National-led Government will almost certainly in the first 100 days move to repeal it.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00226e419a18-df21-483e-9650-2aaee4e06211\u0022 data-id=\u0022641a6a0b08d941dbb524ba63844591ad\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000175\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226e419a18-df21-483e-9650-2aaee4e06211\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022641a6a0b08d941dbb524ba63844591ad\u0022\u003EIBRAHIM OMER (Labour):\u003C/span\u003E What a sad day for the Opposition, opposing everything that we\u2019re proposing for the sake of opposing. There\u2019s no substance at all and for the five minutes Mr Simpson has been speaking, there is nothing. There isn\u2019t one thing that New Zealanders can benefit from. Instead, an attack on Jo. Jo is actually an awesome MP and when I was in Timaru last year visiting at a local library\u2014because she does a good job. What we have seen in the last 24 hours is just opposition for the sake of opposition. There is nothing at all\u2014no substance in what they say or what they do. But we, on this side of the House, are working for everyone. We are working for New Zealanders. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000176\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226e419a18-df21-483e-9650-2aaee4e06211\u0022\u003EMatt Doocey, since last night, has been asking what we\u2019re doing for hard-working New Zealanders. This is what we\u2019re doing for hard-working New Zealanders. The Income Insurance Scheme (Enabling Development) Bill is a bill that\u2019s designed to help hard-working New Zealanders. More than 100,000 New Zealanders lose their job every year through no fault of their own. And then, once they lose their job, it\u2019s difficult for them to find work that matches their skills, after redundancy, and they end up taking low-paid jobs. And then that leads to the country losing $15 billion every year. If we can deal with this, the $15 billion can be reallocated somewhere else where it\u2019s needed. It makes it more difficult for our employers to get the skilled workers that they need. It also exposes individuals and families disproportionately to unnecessary hardships, especially in low-income households, M\u0101ori, Pasifika, Pacific Islanders, and other minorities.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000177\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226e419a18-df21-483e-9650-2aaee4e06211\u0022\u003EThis is something that the Government has consulted with Business New Zealand and the Council of Trade Unions to come up with the idea. It\u2019s not something that the Government, behind closed doors, designed and came up with; actually, a lot of consultation and work with other entities went into this. This bill supports the Government\u2019s priorities to accelerate our recovery from COVID-19 and it lays a foundation for the future. This is a big deal for the thousands of workers across the motu as well as our businesses.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000178\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226e419a18-df21-483e-9650-2aaee4e06211\u0022\u003EAs New Zealand moves beyond the economic and social impact of COVID-19 from the last two years, there are important lessons to be learnt from the way that we are able to support one another through an unprecedented series of challenges. We must start doing things differently and this is where it starts. This bill provides the ACC with statutory authority to work to prepare to operationalise an income insurance scheme, should we decide to establish the scheme. The bill also recognises the need to listen to workers and employers when designing the scheme, which is required by ACC to engage with representatives of workers and employers. Now it\u2019s time for an enduring solution. This bill is a necessity so that ACC is able to do its job: for it to implement the proposed income insurance scheme and to ensure the work is done in the right way. Mr Paul Goldsmith previously said that this is yet another bill, but this bill does not establish an income insurance scheme yet, as was indicated, but we have made a decision to go ahead with this scheme or with the ACC as the delivery agency. That is what you call looking after hard-working New Zealanders. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000179\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226e419a18-df21-483e-9650-2aaee4e06211\u0022\u003EThis bill is a good bill. It leaves no one behind at all. And since the last 24 hours, the feedback that we\u2019ve been getting from hard-working New Zealanders, from all over the country, from all corners of the country, is that this is a good Budget that leaves no one behind. Businesses are happy and that that\u2019s really making the Opposition jealous and angry. That\u2019s why they are reacting the way that they are reacting. I urge the Opposition to actually be the decent Opposition that New Zealanders expect them to be. New Zealanders deserve better than this. This is a good bill. I commend it to the House. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022 data-id=\u002219ca0da0f1a64bf6a275a731a5b5ce01\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000180\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002219ca0da0f1a64bf6a275a731a5b5ce01\u0022\u003EJAN LOGIE (Green):\u003C/span\u003E Thank you, Mr Speaker. It\u2019s a pleasure to rise today out of my traditional black and into the pink, in a way that\u2019s shocking my eyeballs, all for the effort to counter bullying, and I promise to do my best to be kind to everybody in the House today, which may be a challenge with some of the speeches. But I will do my absolute best to be consistent with the message of today.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000181\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003ESo we come to the bill, which is the Income Insurance Scheme (Enabling Development) Bill, and, of course, I\u2019m speaking on behalf of the Green Party. The Green Party hasn\u2019t made a decision yet, similar to the Government, interestingly, in terms of whether we\u2019re going to support the income insurance scheme. We\u2019re waiting until we see the details of that scheme before we make a decision. In light of that, we are abstaining on this bill today, unlike the Government, because if the scheme is going to turn into something good we don\u2019t want to oppose the work to be able to get that done. But, on the other hand, actually, our concerns as to what was consulted on are really significant, and I do want to go into a bit of that today. So we don\u2019t actually want to vote in support of something that may be seen to be just kind of saying that we\u2019re rolling out the red carpet for it. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000182\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003ESo I want to start by acknowledging our absolute agreement with the Minister in terms of what we want to see in society and the problems that we see in society at the moment of the disproportional impact of sudden job loss and the profound impact that that is having on individuals and wh\u0101nau and communities, and recognising that we need much better support for people to get into good jobs, as opposed to being forced into taking any job. I\u2019ve had my own personal experience of that, of coming back from overseas and not having any money. The last time I\u2019d worked in New Zealand, I\u2019d been an executive director of a national organisation; I had no money and I took a job of watching a phone because I just needed some money to be able to pay the bills, and I had a job watching a phone. Now, I don\u2019t think I got paid for it like it was an honest day\u2019s work, watching that phone. It rang once in the six weeks that I had the job and I told the person that it rang and they answered it. I don\u2019t think that was the best use of my skills. Some people in this House may disagree, however\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000183\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022234d13527f4740e99c49f86238f6a880\u0022\u003EHon Carmel Sepuloni\u003C/span\u003E: A lot of people would struggle to do that job.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000184\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00224bfc78574ab84111b212f07254410c5d\u0022\u003EJAN LOGIE\u003C/span\u003E: No\u2014some people in this House possibly. However, this is the reality when people are facing poverty and struggling to pay the bills\u2014is that they\u2019re being forced into taking anything as opposed to going into our income support system, and particularly when there is a stand down for people coming overseas or from leaving jobs. And that is not serving anyone, I would argue. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000185\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EWe also recognise that in a time where we will have to significantly shift our economy from one that is just addicted to fossil fuels to one that is carbon neutral, there is going to be a change in our job patterns, as there will be with more automation coming into a range of industries. We need to have that structural level of support for the costs of that to be shared across the economy as opposed to being put on to, primarily, the working people of our country. So we\u2019ve got agreement on there being some real problems. However, in the income insurance scheme as it\u2019s been proposed at the moment the things that worry us are around the setting up of a two-tier system and a multiply complex system, in fact. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000186\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003ENoting that New Zealand is out of step with other countries in not having an income insurance scheme, I will note that we have had one historically in the 1930s. I think it was the United Government at the time that set up an income insurance scheme, a punitive scheme, and we do have a concern that in the system, in the proposal as it was, there was the provision for sanctions within it. So we do not want to see that replicated. I do note that that scheme was not successful. It was a dismal failure and was replaced by a Labour Government with a comprehensive social security system. I raise my hands for the vision of that, which we are yet to achieve in this country. That is the Green Party\u2019s goal: recognising we have a responsibility as a country to be able to protect people from this massive churn in our economy that working people are bearing the cost of. But we believe that that is probably best dealt with by a really simple system of a strong social security system with free education and absolute support for people being able to retrain, and support to achieve their dreams. We\u2019re not convinced that adding another separate system, and particularly one that\u2019s being potentially run by ACC, is the best one. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000187\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EI note the Minister is doing some good work in ACC in terms of shifting some of the culture that has raised concerns right across the country that we\u2019ve been experiencing for a long time, where people talk about the kind of\u2014it feels as if it\u2019s just turned into a corporate insurance company that people are having to battle to be able to get their entitlements, and that the organisational agency\u2019s emphasis is on limiting their liabilities as opposed to supporting people to have the best outcomes and opportunity for rehabilitation and support, as the scheme was intended. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000188\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003ESo part of my concern with this bill today is that we are giving ACC another large job, a really significant, large job at a time when I feel like they are just starting on a really difficult and challenging programme to turn around that corporate culture, to get back to an agency that serves our communities and delivers on the Woodhouse principles. I think that is a massive risk for us as a country, to be honest. And there is the chance that when we\u2019re seeing in this\u2014and we have to note too that in the regulatory impact statements there\u2019s the work around noticing that many of ACC\u2019s systems will be the same for this work as they are at the moment, and that ACC, in terms of technology, has introduced this next-generation case management programme, that, to be honest, was supposed to be this amazing thing delivering for clients and providers and improving outcomes but has actually just resulted\u2014in the latest findings or annual report from ACC where provider and businesses were exhibiting low trust in ACC and net trust scores for businesses and providers both declined, as did client net trust scores and M\u0101ori client net trust scores.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000189\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003ESo we\u2019ve seen ACC developing this new technology. They\u2019ve been trusted to do that, and confidence in delivery and staff has gone down and staff turnover has gone up, and they are telling us that we\u2019re not going to get the potential benefits of that realised for another 10 years. At the same time, we are going to be giving them this whole new job of exploring and potentially implementing an income insurance scheme. That, for the Greens, is quite worrying. I also note that we are expecting the updated report on that process. It was, I understand, due last week\u2014I was contacted for media comment\u2014and then was delayed until next week.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000190\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EI also understand that next week we\u2019ll be getting the report on the privacy breaches and practice within ACC. It feels a bit uncomfortable to be debating this today when that\u2019s coming out next week, and when we know that this is a lot about information sharing and there have been some very serious concerns around ACC\u2019s ability and culture in terms of protecting client information. So, again, it\u2019s a bit worrying, but if I\u2019ll talk more in the next speech about the specifics of the bill. Thank you.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022 data-id=\u00221e10f3ffe30847419180f18cdea9780b\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000191\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00221e10f3ffe30847419180f18cdea9780b\u0022\u003ETONI SEVERIN (ACT):\u003C/span\u003E Thank you, Madam Speaker. I stand on behalf of the ACT Party in opposition to this Income Insurance Scheme (Enabling Development) Bill. To me, this is an \u201Cif\u201D bill\u2014if we want an income insurance bill. So why are we rushing this framework through in this Government\u2019s Budget? Oh, that\u2019s right: they need to find a price tag of $2.2 million to be able to have the framework in place for this, if we\u2019re going to have an income insurance scheme. Yes, it\u2019s great that it has a sunset clause so if it isn\u2019t in place by 31 March 2025, it\u2019s not going to go ahead. So I\u2019m looking forward to being in the next year\u2019s Government, and this will definitely not be going ahead. However, I foresee this Government squeezing it through probably in the next\u2014what?\u2014six or 12 months, if not sooner.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000192\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003EThis Government, with this bill, has given the lovely middle-class people, the average workers that you so much want to look after, and we want to look after\u2014we created an alternative budget that would give people much more money in their pockets than $350 for just a short period of time. So if this bill comes through, well, there\u2019s still an extra $350, and this had to come out of their wages, so that leaves less money in their pay packet, and every cent costs for the low and average income people.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000193\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003EAlso, you say it\u2019s horrible for people that can\u2019t find a job within their skills if they\u2019re made redundant and they have to take a lesser role. Well, I wouldn\u2019t say that to my good friend that had to do that last year because she was made unemployed. She says, \u201CNo, I have got a university degree. I cleaned toilets and showers when I was at university. What is the difference now? It is money. I can feed my family.\u201D Her husband was also made redundant because he worked within the tourism industry. Did they sit down and go, \u201COh, woe is me, there is no job.\u201D? They took jobs that they can do, and a lot of New Zealanders do it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000194\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003EAlso now, my friend has the ability to go back to school and learn as well. But they took a job. It\u2019s not the greatest job. It doesn\u2019t represent what their skills are. But also\u2014and I know you\u2019ll probably call out at me\u2014airline pilots: yes, some of them may have had money put aside, but not all of them would have had money in their bank accounts because of family, housing; however, how many of them had to change their career last year as well because of being made unemployed?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000195\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003ESo, really, this whole scheme is a framework for \u201Cif\u201D, but it\u2019s probably more likely that it will be, and all it\u2019s going to do is just create more hassles also for ACC, which is not doing its core job properly. There are people out there that are not getting their cases heard properly, and are fighting ACC.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000196\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003EAnd then to the Privacy Act. Oh, gee, wow, how many more agencies are going to have to be linked into this bill? I believe there have to be at least four more agencies, or three more, that aren\u2019t even talking to ACC. So when we\u2019re sharing private information, you know, it\u2019s a bit scary when ACC\u2019s already had one leak in sharing information, let alone other leaks.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000197\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003ESo as we\u2019re saying, the cost of living is in crisis for many, many people, and if this \u201Cif\u201D bill, which this bill is the framework for, comes through, it\u2019s not fair on those people. It is not fair for the New Zealanders who are battling every day just to go and do their grocery shop, to pay their rent, and those who have got mortgages, with their interest rates that keep going up. Yes, it may sound great to help those that are made redundant for a period of time, but small businesses, at this stage, are still screaming out for employers. We cannot find employees. We need more people willing to take jobs as a stepping stone as well. How many of us have not had the perfect job for the first time or a second time, when we had to take what we could get so that we could live? I don\u2019t see that being a problem; I see that as being a good Kiwi that\u2019s working hard to feed themselves, feed their family, and get ahead, even if it\u2019s not the job or the job of their skills.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000198\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003ESo if this framework, as we\u2019re saying, is going ahead, it is totally unfair on the employees in New Zealand, especially when the Nats here said it was going to cost an extra thousand dollars a year, and if this comes in while they\u2019re still getting the $350 as an extra, that\u2019s not going to go very far. And then you also want to put it on to the small businesses. Well, small businesses are already stretched, and this is where this comes into reality. So a small business has to pay this as well, and the small business also has to give pay increases. So that means the small business will then be raising their prices, and who do they put those prices on to? The average New Zealander. So it\u2019s a big money roundabout and nobody is going to get ahead. This bill, as I say, is just the framework for an \u201Cif\u201D bill, but it\u2019s probably not going to be an \u201Cif\u201D bill; it\u2019s probably going to be a bill that we will be sitting here debating in probably less than six months.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000199\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003EIt\u2019s just\u2014you know, why now? And also, why are we standing here on a Friday morning rushing all these bills through? I\u2019m pretty certain that this could have been sneaked out a little bit sooner so that we could have at least had a little bit more time to take it to select committee to nut this framework out, and just make sure especially around the data sharing and how private that\u2019s really going to be.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000200\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003ESo I stand here in opposition to this\u2014where is the bill name; here it is\u2014Income Insurance Scheme (Enabling Development) Bill. As I said, it is the beginning of the \u201Cif\u201D bill\u2014if we have an income insurance scheme, which is going to cost $2.2 million just to get it going. So ACT opposes this bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00225cf229a9-8722-46b2-a37e-b528e075be7d\u0022 data-id=\u0022c805d0aaae4b4a928ca1391ab576f00f\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000201\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225cf229a9-8722-46b2-a37e-b528e075be7d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c805d0aaae4b4a928ca1391ab576f00f\u0022\u003EANGELA ROBERTS (Labour):\u003C/span\u003E M\u014Drena. Fabulous pink in the House today. I just want to start by acknowledging all of the teachers and schools who are doing the mahi to support this kaupapa\u2014speak up, stand up to stop bullying; building inclusive schools. So thank you to everyone across the House who is acknowledging that kaupapa today.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000202\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225cf229a9-8722-46b2-a37e-b528e075be7d\u0022\u003EIt is a great pleasure to stand and take a call on this bill. This is about the next steps in this process. So far, it\u2019s been a really collaborative process. We have had business, we have had workers, and we have had Government at the table, grappling with this wicked problem about securing our future. So it is absolutely appropriate that this bill is part of this Budget debate.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000203\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225cf229a9-8722-46b2-a37e-b528e075be7d\u0022\u003EIt is about the next steps in building a coherent plan\u2014it isn\u2019t the only part, but a coherent plan as we are working towards building a just transition for our economy. It\u2019s not a knee-jerk reaction; it\u2019s not a sticking plaster. It\u2019s something that some of us have been working on for a long time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000204\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225cf229a9-8722-46b2-a37e-b528e075be7d\u0022\u003EI just need to acknowledge my dear comrade Glen Bennett. We have been involved in the just transition conversation in Taranaki for years. I think it\u2019s really great to see this collaborative approach now coming at a system level. We have got this wonderful process, and, I guess, when we ask why\u2014we\u2019ve been asked why; good question. Kirk Hope, actually, from Business New Zealand, is really clear about why. He talks about when we have job losses, they don\u2019t just harm individuals and their families, but they affect businesses, communities, and the economy.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000205\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225cf229a9-8722-46b2-a37e-b528e075be7d\u0022\u003EWhen we were going about doing the work in Taranaki around just transition, something that was really clear, something that we committed to, was about support and empowerment for workers during economic transition. This is business, this is workers, and this is our local communities who are having to stare down climate change and the impact it is having on our economy right in the face. As our Taranaki economy changes, people who may have worked in one area for their whole life may find their skill set is no longer needed. We need a system where employers, unions, and Government support workers to develop new skills. So we\u2019ve had this wonderful, sophisticated conversation. We\u2019re not just talking about oil and gas, as some people constantly do; we talk about energy. We\u2019re not just talking about our fabulous dairy sector, but we\u2019re talking about food and fibre. So this is a really important part of building towards a just transition for workers, for businesses, and for our economy.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000206\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225cf229a9-8722-46b2-a37e-b528e075be7d\u0022\u003EIt\u2019s really interesting\u2014you know, we hear the word \u201Csocialist\u201D thrown around as if it\u2019s some sort of insult. But I\u2019d like to think that actually, when I reflect on the just transition work that we have done in Taranaki, there\u2019s maybe a bit more of a sophisticated way of looking at it. Our community decided on a shared responsibility, on a collaborative approach to making sure that we carry our entire economy to a place that is secure and prosperous for everybody, all right? So yeah, a little bit of hope and a little bit of joy in our day as we acknowledge the significant work that has gone into this Budget to help make our future a great one.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000207\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225cf229a9-8722-46b2-a37e-b528e075be7d\u0022\u003ESo, finally, I\u2019d just like to reflect, this bill is enabling. It isn\u2019t about \u201Cif\u201D; this is about being really thoughtful and collaborative about building something that is futureproofed. And it is something that the rest of the OECD has pretty much sorted quite a while ago. The fact is that it is enabling and it continues to enable by requiring ACC to engage with representatives, workers, and employers. So don\u2019t panic\u2014don\u2019t panic. The socialist approach, which is actually about collaboration and finding solutions together so we can secure a future for our children that is one that is fabulous is something I am really, really happy to support, and so I recommend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022 data-id=\u0022ed4959a92edf487195de46b9d9df9194\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000208\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022ed4959a92edf487195de46b9d9df9194\u0022\u003EASSISTANT SPEAKER (Hon Jenny Salesa)\u003C/span\u003E: The next call is a split call. I call on Penny Simmonds for five minutes.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022d2995873-613f-4202-a773-5ea2d57cc953\u0022 data-id=\u0022e64d31d73e484b20ab4208f07cd581ba\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000209\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d2995873-613f-4202-a773-5ea2d57cc953\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022e64d31d73e484b20ab4208f07cd581ba\u0022\u003EPENNY SIMMONDS (National\u2014Invercargill):\u003C/span\u003E Has there ever been a worse time for a Government to try and cook up another new tax and disguise it as a levy to punish every worker and every business in this country? Has there ever been a worse time when people are struggling under a cost of living crisis, when people are struggling with increased interest rates, hurting their mortgages, putting their rent up? Has there ever been a worse time when inflation is running at a 30-year high and businesses are struggling to recover from COVID? And has there ever been a worse time when a Government is addicted to spending not only today\u2019s money but tomorrow\u2019s to cook up this way in which to punish every worker and every business in this country?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000210\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d2995873-613f-4202-a773-5ea2d57cc953\u0022\u003EIf there was anyone left out in New Zealand that had any doubt about how out of touch this Government is, the Minister would have removed that doubt in her opening speech when she said \u201CNow is the time.\u201D\u2014\u201CNow is the time.\u201D, which were the exact words from her speech. Now is the time to cook up another way to take 1.39 percent off every worker and every business! Now is not the time. The National Party knows that. The National Party opposes this bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022b8550e1a-ed25-44a2-b0e2-b0a8d52a7a80\u0022 data-id=\u0022f5ee95139b4649e491d260ede30e161f\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000211\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b8550e1a-ed25-44a2-b0e2-b0a8d52a7a80\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f5ee95139b4649e491d260ede30e161f\u0022\u003ERACHEL BOYACK (Labour\u2014Nelson):\u003C/span\u003E T\u0113n\u0101 koe, Madam Speaker. K\u014Drero mai, k\u014Drero atu, mauri t\u016B, mauri ora\u2014stand up and speak out against bullying. Thank you, Madam Speaker. It\u2019s a pleasure to take a call on the Income Insurance Scheme (Enabling Development) Bill. Before I begin, I just want to congratulate finance Minister Grant Robertson on an outstanding Budget, and I\u2019m proud to have worked alongside our health Minister, Andrew Little, to secure funding for Nelson\u2019s new hospital. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000212\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b8550e1a-ed25-44a2-b0e2-b0a8d52a7a80\u0022\u003EI just want to be very clear about what this bill does. This bill is enabling legislation. We are still to go through the process of determining if we introduce an income insurance scheme and what it would look like. The group who worked on this bill recommended that ACC should be the agency to have oversight of that, and what this bill does is it enables ACC to do that work. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000213\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b8550e1a-ed25-44a2-b0e2-b0a8d52a7a80\u0022\u003ELike many members of the Labour Government, I\u2019m proud to have worked as a union organiser prior to coming into Parliament\u2014[Interruption] I knew the other side would scoff at that\u2014fascinating. But, I guess one, of the things that union organisers do\u2014and this is really serious\u2014is that when workers lose their jobs, we\u2019re the ones sitting in the room next to them, and not just those who lose their jobs having been made redundant but people who lose their jobs due to things like cancer. The other side of the House is scoffing at this, but, actually, I\u2019ve sat there, alongside some of my colleagues here, next to those people who have lost their jobs. It\u2019s serious. It\u2019s devastating, and many of them are in jobs where they cannot afford\u2014like all of us, who are privileged\u2014to have a product like an income insurance scheme. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000214\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b8550e1a-ed25-44a2-b0e2-b0a8d52a7a80\u0022\u003ESo if we end up with a scheme of this nature, which is very common across the world, by the way\u2014this is not something we\u2019ve just cooked up for New Zealand; it\u2019s very common across OECD countries\u2014it will actually allow working-class people to have access to a scheme that will support them if they lose their jobs. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000215\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b8550e1a-ed25-44a2-b0e2-b0a8d52a7a80\u0022\u003EOne of the other points\u2014I just want to acknowledge some of the comments made by the ACT Party member Toni Severin. Absolutely, following COVID-19, people have lost their jobs. One of the things this bill would do, by providing enabling legislation, is allow the Government to take a serious look at an enduring scheme. The previous National Government did some really good work following the Kaik\u014Dura earthquake, in particular, to support businesses and people to stay in their work. We did some work, obviously, through the wage subsidy following COVID-19. These economic shocks can come along at any point. We can never predict when they will occur, especially in a country like ours, with so many earthquake zones\u2014again, why we need a new hospital in Nelson. What this bill would do is give us the enabling legislation so we can have an enduring scheme so that when we face those shocks, people have that certainty of some income for a small period of time\u2014as my colleague Jo Luxton pointed out, so they can actually have that space to take a rain check and look at what might be needed. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000216\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b8550e1a-ed25-44a2-b0e2-b0a8d52a7a80\u0022\u003EIt\u2019s disappointing to hear that the other side of the House won\u2019t be supporting this bill. It is enabling legislation. I\u2019m incredibly proud that the Labour Government is continuing to do work alongside workers, alongside employers, to take a really serious look at how this type of legislation could help our people. So, on that note, I commend the bill to the House. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022 data-id=\u0022b01e2fce66654f9f9dcdb914ece5ca34\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000217\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022b01e2fce66654f9f9dcdb914ece5ca34\u0022\u003EGINNY ANDERSEN (Labour\u2014Hutt South):\u003C/span\u003E T\u0113n\u0101 koe, Madam Speaker. Look, it\u2019s really great to be able to take a call on this bill because it\u2019s important that we note that over 100,000 New Zealanders every year lose their jobs. We need to make sure that they\u2019re in a position to be looked after and that we maintain the continuity in those people and in their development and making sure things like mortgages can keep being paid, that school fees or those regular costs in a family can continue to happen. When you take someone out of the workforce suddenly, that can have a whole lot of knock-on effects that affect the wellbeing of their family, their wider family, and their community.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000218\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003ESo we\u2019ve been asked by those members opposite, \u201CThis is the worst possible time to introduce this measure.\u201D Well, I argue different. I think it\u2019s exactly the right time to be preparing ourselves. In the current volatile situation we find ourselves in the global economic climate, we have inflation up to 8 and 9 percent in places like the UK and the US and Canada and Australia. New Zealand is behind all of those countries in our inflation rates, but we are not immune to those pressures and we see those happening every day, putting pressure on the cost of living for families. So having a framework in place that protects our families and enables our communities to have a degree of reassurance is a good place for New Zealand to be in.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000219\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EIt\u2019s often difficult for people to find work that matches their skills after redundancy, and they end up taking on lower-paid jobs. This wage scarring has a big impact on our economy, has the potential of more than $15 billion per year, and it makes it far more difficult to employers because they need to get those skilled workers in place. But it also causes hardship for those individuals, families, and wh\u0101nau, and it also disproportionately affects those people from Pasifika and M\u0101ori backgrounds and communities as well. Loss of work is more likely to affect low-income workers and we know this for a fact. Those workers are more likely to lose more than one job in their lifetime. Low-income households are far less likely to have significant savings to back them up when times get tough and they\u2019re much worse positioned to manage difficult economic times compared to higher-income households.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000220\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003ESo having this in place is important. What this legislation does is it enables ACC to undertake the work that they need to do to engage with those key partners and to work through the framework that will take place in order to establish an income insurance scheme. The work is ancillary and consistent with its role in delivering accident compensation to New Zealand. This means that at the moment, it is difficult for ACC to take the kind of role and preparation in this process that it needs to do to be a delivery agency. It\u2019s only right and proper that this framework is put in place first.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000221\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EThis bill provides ACC with the statutory authority to do work to prepare to operationalise an income insurance scheme which we decide to establish at some stage in the future. It also recognises the Crown\u2019s responsibility and commitment to the Treaty of Waitangi and its principles, by requiring ACC to engage with M\u0101ori and to be purposeful in developing a scheme that will contribute to developing M\u0101ori outcomes and labour market outcomes in New Zealand. In addition to this, it also recognises the need to listen to workers and employers when designing the scheme, by requiring ACC to engage with representatives of workers and employers. It also puts in place protections relating to ACC\u2019s collection and use of personal information to ensure the scheme ACC designs properly balances privacy and providing timely and accurate service to clients.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000222\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EIt is important to note that because a decision to proceed with the proposed income insurance scheme or ACC as a delivery agency is yet to be made, the bill contains provisions to repeal itself on 31 March, 2025, and this means that the legislation will not continue in force if it is taken not to go ahead with it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000223\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003ETo point out one last thing\u2014why we support the bill. It is important to say that what it does is it sets ourselves up to be in a strong position in the future to make sure those wage shocks that we heard\u2014whether it be a global financial crisis, whether it be inflation, or whether it be a natural disaster\u2014those shocks to our workforce, employers, and employees have some devastating effects. On this side of the House, we care about what that does to our communities.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000224\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EIt\u2019s only right and proper that we put in place a framework to mitigate those challenges we find. I commend it to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022 data-id=\u0022aad263c7c31f4f5c9a201ae0aacc6ccd\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000225\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022aad263c7c31f4f5c9a201ae0aacc6ccd\u0022\u003ESIMON WATTS (National\u2014North Shore):\u003C/span\u003E Well, listening to that contribution from that prior member Ginny Andersen talking about future economic shocks, can she not understand and see what\u2019s in front of all Kiwis today? We\u2019re faced with a cost of living crisis today, not in the future, and this Government are asleep at the wheel in terms of putting in place solutions that are going to deal with it. This income insurance scheme, which in effect is a job tax, is absolutely a solution looking for a problem\u2014it is not required. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000226\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EMadam Speaker, I\u2019ll take you through that quite simply, because Kiwis sitting at home watching this will go, \u201CI haven\u2019t heard too much about this job tax.\u201D But I tell you what, when they work out the detail and what the impact is on their back pocket\u2014because that\u2019s where the money\u2019s coming from\u2014they\u2019re going to send a big, bad \u201Cno\u201D to this Government that they oppose it. Because the impact, fiscally, on the back pockets of hard-working Kiwis is a thousand dollars a year for someone on 72 grand\u2014that is the average income. A thousand dollars\u2014$20 a week of taxes coming to every Kiwi, or 2,750,000 workers in this country for an insurance scheme, or a tax, that benefits 50,000 people at best. That is the fact of the matter\u20142 percent of Kiwis if they are lucky. Because, of course, people have private medical insurance, potentially; their employers actually do the right thing and look after them when they get sick and unwell\u2014they\u2019ve got other medical options around this. This is a scheme that\u2019ll benefit less than 2 percent of Kiwis, but tax nearly 3 million of them. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000227\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EIt is completely outrageous, and they are failing to see the issues right in front of them today: a cost of living crisis. And that shows that this Government do not have any perspective in terms of what are the real-world impacts on Kiwis at home right now. They are creating a model of State reliance. A model of reliance by individuals in this country on the state. They are not talking about aspiration. They are not looking at what is the investment we need to require in order to support this element of the workforce. They\u2019re not looking at working and partnering with the private sector to bring in place solutions that may deal with this problem. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000228\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EThey\u2019re painting a picture which, fiscally, will cost this country\u2014and it was in their reports and in the Budget yesterday\u2014$3.5 billion by 2026 of levies collected off hard-working Kiwis. That\u2019s $3.5 billion, and that could increase up to over $4 billion. That is outrageous, and I hope some of the people watching and those looking will actually go, \u201CWell hold on a second, that doesn\u2019t sound smart. That doesn\u2019t sound sensible. Why are they trying to deal with something that doesn\u2019t even exist today?\u201D \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000229\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EMaybe they should deal with the problems that Kiwis are facing when they\u2019re paying an extra 150 bucks a week today for their living costs. Maybe that might be a good idea. Maybe we could give inflation-adjusted tax relief to all Kiwis. Give them the benefit today because they need the benefit today. They do not need a scheme that will impact a small number of Kiwis that will not bring benefits to the nearly 3 million hard-working Kiwis in this country. That is why National oppose this bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002234ec4a4e-60bd-4a4d-b211-10f9324db3ac\u0022 data-id=\u0022321d2e068d214016bfe2d8073cc5fbd3\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000230\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002234ec4a4e-60bd-4a4d-b211-10f9324db3ac\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022321d2e068d214016bfe2d8073cc5fbd3\u0022\u003EDr GAURAV SHARMA (Labour\u2014Hamilton West):\u003C/span\u003E T\u0113n\u0101 koe, Madam Speaker. T\u0113n\u0101 koe e te Whare. I want to start first of all by thanking Minister Carmel Sepuloni for introducing this bill into the House. It is one of the many good bills that she\u2019s presented to the House, another feather in the cap. And while I\u2019m mentioning the Minister, I would also like to say what great work she is doing in terms of bringing our Ministry for Disabled People, which is coming through on 1 July. So thank you for all the work in terms of protecting vulnerable people in this country, Minister.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000231\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002234ec4a4e-60bd-4a4d-b211-10f9324db3ac\u0022\u003EIn my previous life as a doctor, two types of patients that I saw often: one was related to ACC cases, where people had an accident and needed time off from work. It caused a lot of stress\u2014mental stress, obviously physical stress as well. But the other type of people were those who had lost their jobs for whatever reason. And what I would say is the stress suffered by people who have lost their jobs isn\u2019t much different from stress suffered by people who have had an accident\u2014a physical injury or a mental injury\u2014because it does add to the stress in your life, and the last thing you need at that point is to be worrying about, as my colleague here said, paying your mortgage and paying your bills.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000232\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002234ec4a4e-60bd-4a4d-b211-10f9324db3ac\u0022\u003ESo what this bill does, really, is give a way for these people to have a bit of time to figure out how they can get another job and to give a bit of security, but also to give a bit of mental relief in not having to worry about what\u2019s happening when they\u2019ve had such a big, significant event at that point. I know ACC has had its fair share of criticism over the years, but it is a beautiful system. Again, you know, there is no sort of, I guess, liability, but people are supported through it. The aim, in ACC\u2019s term, is to support people through a terrible event, whether it\u2019s a rugby injury they might have had or something related to sexual trauma. But people are supported, and that\u2019s what this country\u2019s all about.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000233\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002234ec4a4e-60bd-4a4d-b211-10f9324db3ac\u0022\u003EIn a similar fashion, this specific insurance scheme is about supporting people who\u2019ve lost their job for a reason and will potentially go through stress, will go through trauma. It\u2019s about supporting those people. So it\u2019s a great bill and it helps people\u2014100,000 New Zealanders who are losing their jobs every year for whatever reason; compare that to 1.9 million claims which are made through ACC. It\u2019s a small number of people but not an insignificant number of people, and, as a speaker from the National Party, Simon Watts, said, \u201COh, you know, 50,000 or 100,000 people, who cares?\u201D Well, I would just like to remind Simon Watts, there\u2019s about 50,000 people who live in his electorate, and if he told them that 50,000 people don\u2019t really matter, then good luck with the next election.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000234\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002234ec4a4e-60bd-4a4d-b211-10f9324db3ac\u0022\u003ESo it is important that this insurance scheme comes through because there are a lot of people who are in that situation and who can end up losing their job, including some people on the other side, as we\u2019ve seen in the last election. So it probably would help their insurance scheme as well.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000235\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002234ec4a4e-60bd-4a4d-b211-10f9324db3ac\u0022\u003EIt\u2019s just important to remind ourselves that this specific bill is not just about that insurance scheme; this is just about providing a system for ACC to be able to provide that service and that scheme. And, as we move forward, I\u2019m sure the Minister will present the actual logistics of how that scheme would look like in a separate bill. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000236\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002234ec4a4e-60bd-4a4d-b211-10f9324db3ac\u0022\u003EBut I would like to commend this bill to the House, and, once again, would like to thank the Minister for bringing this incredibly supportive bill for New Zealanders. Thank you.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u00224d893ed116674107adbfe30eca62c584\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the Income Insurance Scheme (Enabling Development) Bill be now read a first time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 67\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000237\u0022\u003EBill read a first time.\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000238\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u002263bbb73740f14be59ee3f51f7be2f08c\u0022\u003ESecond Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022 data-id=\u0022941ba8e500e844d78453614b6b7b2428\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000239\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022941ba8e500e844d78453614b6b7b2428\u0022\u003EHon CARMEL SEPULONI (Minister for ACC)\u003C/span\u003E on behalf of the Minister of Finance: I move, That the Income Insurance Scheme (Enabling Development) Bill be now read a second time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000240\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EEvery year it is estimated that more than 100,000 Kiwis lose their job through no fault of their own. The COVID-19 outbreak is a stark example that widespread job losses have occurred all too frequently over the last 40 years. As we rebuild the economy, we have an opportunity to put better protections for Kiwi workers in place. For this reason, we have consulted publicly on a proposal for an income insurance scheme that would be administered by ACC. The new scheme would be delivered alongside but separate to the accident compensation scheme. However, it is important to note that the Government has not yet decided whether to establish a scheme or whether ACC should deliver it. We are currently considering submissions and feedback we received, given the closing date for submissions was 26 April 2022. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000241\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EACC is currently only able to exercise functions that relate to the purposes of the accident compensation scheme. This means that at the moment it is difficult for ACC to participate significantly in any pre-implementation work on a scheme. It can only do so where it is consistent with what is in the legislation. The bill empowers ACC to support any future work on a scheme and ensures Government has access to the wealth of information and expertise ACC has in delivering social insurance. The authority provided by the bill is time limited and would be replaced by subsequent legislation to establish and govern a scheme.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000242\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EThe bill will be repealed in 2025 in the absence of subsequent legislation. The enabling legislation includes a Te Tiriti provision recognising that decisions made when establishing and operationalising such a scheme will impact on how M\u0101ori and others experience the scheme. We want a scheme that M\u0101ori can access as easily as others, that responds to their needs as individuals and also as members of wh\u0101nau, hap\u016B, and iwi. Most of all, we want a scheme that delivers outcomes for M\u0101ori and does not perpetuate current inequities that M\u0101ori experience in the Labour Party. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000243\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EI want to acknowledge the support that we\u2019ve had in the House in the first reading, particularly the M\u0101ori Party, and we\u2019ve also been supported by iwi leaders with regards to continuing to explore and further development on this particular scheme. And there is great interest by iwi leaders with regards to how this could support M\u0101ori wh\u0101nau. The bill also includes a provision requiring ACC to engage with worker and employer representatives. It goes without saying that workers\u2019 and employers\u2019 views must be reflected in the development of a social insurance scheme such as this. But the provision also recognises the value of the tripartite process that was critical to developing the proposal for consultation and ensures the continuation of the tripartite process where representatives of workers, employers, and Government work together. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000244\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EI hear the other side of the House mocking the reference to a tripartite arrangement here. We wouldn\u2019t have gone ahead if we didn\u2019t have the support of both Business New Zealand and the Council of Trade Unions with regards to developing this proposal. They clearly see the benefits of such a scheme for workers and it\u2019s very, very disappointing that the National Party can\u2019t also see the benefits potentially to workers in the way in which Business New Zealand and the Council of Trade Unions clearly do. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000245\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EAlso, I will say, listening to some of the first reading speeches, it\u2019s been very disappointing to hear some of the Opposition speeches. They really do highlight how out of touch the Opposition is with New Zealanders. They refer to hard-working Kiwis and then make statements inferring that most New Zealanders have private medical insurance. The reality is that most New Zealanders do not have private medical insurance. And so the comments that Simon Watts made about that in reference to that clearly shows how out of touch he and his party really are with the hard-working New Zealanders that they refer to, the middle New Zealanders that they refer to. Very disappointing, but a revelation, hopefully, for the many people that will be watching this debate across the country, I\u2019m sure, right now.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000246\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EThe bill includes information-sharing provisions that authorise ACC to use the information it receives from Government agencies and other information held by ACC for the purpose of setting up the systems and processes for the establishment of the scheme. ACC already has authorisation to receive and use the information for administering the accident compensation scheme. The provisions in the bill will authorise requests and use of information for the new purpose of establishing the operational requirements of an income insurance scheme. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022 data-id=\u002249d368fc110c40be85e2607a0784b1d5\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000247\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d14b1afe-2069-41e4-96fa-c8dc81a991a4\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002249d368fc110c40be85e2607a0784b1d5\u0022\u003EASSISTANT SPEAKER (Hon Jenny Salesa)\u003C/span\u003E: The question is that the motion be agreed to. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022 data-id=\u002201d90d1d35034f028e21b20816ba7a09\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000248\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002201d90d1d35034f028e21b20816ba7a09\u0022\u003EHon PAUL GOLDSMITH (National):\u003C/span\u003E Well, thank you, Madam Speaker. It is my pleasure to speak on the Income Insurance Scheme (Enabling Development) Bill introduced by this Government. So, for those tuning in, we\u2019re in the Budget debate\u2014no, not the Budget debate; the debate following the Budget. The Budget was dropped yesterday by Grant Robertson, and there were all sorts of talk and announcements about how he was going to spend this and he was going to spend that, and how wonderful he is. He didn\u2019t really emphasise during his Budget speech that we were also planning to introduce a new tax\u2014a new jobs tax. That didn\u2019t feature particularly in his speech.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000249\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EBut the day after the Budget, here we are in the House, talking about legislation paving the way\u2014a bill in order to prepare for another bill, which is pointing towards a new tax that New Zealanders will have to pay. And in politics, like in many elements of life, timing is everything. When you think about this Budget, well, the plan at the start of the year when Minister Robertson outlined his Budget Policy Statement was for the Budget to focus on climate change and the restructuring of the health system. That was the plan. And, then, a little bit before the Budget, they woke up to the fact that \u201CHang on a moment. Maybe we might have miscued here. Maybe it\u2019s possible that the issue that New Zealanders are actually interested in\u2014more than anything right now\u2014is the cost of living crisis and the fact that New Zealand households are struggling to go forwards.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000250\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EIn fact, they\u2019re going backwards, because the cost of everything is up faster than their wages. People are struggling. They\u2019re going backwards. They\u2019re being squeezed by that cost of living crisis. So they thought, \u201CHeck. We\u2019re a bit off whack here. We\u2019ve got to come up with something. We\u2019ve got to cook up something.\u201D But he\u2019d already spent the $6 billion, the record amount of money available for new spending. He\u2019d blown that all, and so he had to reach for all the other cookie jars and find some more money in order to pay for the cost of living, additional little payments for a short period of time in order to look like he was responding to the cost of living crisis. Then, the next day, we discover that if you\u2019re lucky enough to be in receipt of this $350 for three months from this Government, the bad news is if you\u2019re on the average wage, you\u2019re also going to be losing $1,000 a year to pay for this new income insurance scheme. So what he didn\u2019t emphasise was \u201CWe\u2019ll give you 350 bucks if you\u2019re lucky, for a short time, a one-off; but by the way, for the rest of your life, you\u2019ll be paying an extra 1,000 bucks a year. Thank you very much, ladies and gentlemen.\u201D And not surprisingly, people are waking up and thinking, \u201CWell, that\u2019s a bad deal. That sucks. We\u2019re going backwards.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000251\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThat\u2019s the theme of this Government and this Budget\u2014the \u201Cbackwards Budget\u201D\u2014because every household is going backwards. So the timing is off when it comes to this question of the job tax, which this legislation is paving the way for. It takes more money out of the pockets of New Zealanders at a time when they\u2019re facing more cost of living pressures than ever, when the price of cheese is going up and when the price of petrol is going up. Diesel is going crazy. Everywhere you look, the prices are going up. Rents are going up through the roof, in no small measure, because of the actions of this Government adding cost to the structure. So prices are going up, and at that moment, they think it\u2019s a good time to bring in a new tax that every worker has to pay and every employer has to pay.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000252\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003ESecondly, it\u2019s a terrible time to be bringing in more costs that small businesses have to pay, because as well as employers having to pay this new levy, which is being proposed at 1.4 percent, employers also have to pay an additional 1.4 percent of the payroll as well. And that comes on top of all the additional costs that this Government has piled on to the struggling backs and shoulders of the small-business operators in New Zealand\u2014as well as extending huge increases in the minimum wage, extra sick leave, extra entitlements, and extra public holidays. These all sound very nice in theory, but when you add them all up, they add to the cost structure of New Zealand business, which inevitably\u2014and they don\u2019t like to admit this; they hate to admit this. Michael Wood gets very angry when he has to engage in this discussion, but the idea that if you pile additional costs onto businesses, some of those additional costs may flow through to the prices that people have to pay for things in the supermarket and everywhere else. That sort of idea, they hate to admit it, but it\u2019s true. And that\u2019s what we\u2019re seeing in this country, and it\u2019s one of the things that is driving the increases in costs\u2014not the only thing, but it\u2019s one of the things that is driving the increases of cost.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000253\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003ESo, right here, right now, when all of those small businesses are struggling financially\u2014they\u2019re struggling in a whole lot of other ways: they\u2019re struggling from a law and order front; they\u2019re struggling because many retail businesses are waking up, turning up, and finding that their windows have been smashed in because there\u2019s been a breakdown of law and order in this country. But I won\u2019t get too far off topic on that. They\u2019re struggling because of the additional costs being imposed, and this Government says, \u201CRight now, it\u2019s a good time to add another one, and we\u2019re going to bring in an income insurance scheme, which is going to cost about $3.5 billion according to Treasury.\u201D I don\u2019t believe that for a moment. It would be much more than that. This is just the start. These things have what\u2019s called mission creep. You come in with a suggestion around an insurance scheme for redundancy\u2014by the way, there\u2019s a private-sector solution for that now; people can go out and buy that insurance, and a lot of New Zealanders do. So the Government doesn\u2019t think that that\u2019s a good idea. Everything has to be run by the Government, of course. \u201CIt\u2019s only good if it\u2019s run from Wellington\u201D is their approach. By the way, people can do this; there\u2019s nothing stopping anybody buying insurance for income insurance or sickness insurance, and a lot of New Zealanders do. So they\u2019re going to bring that in, and then already it\u2019s expanded from redundancy insurance to sickness insurance, and it\u2019ll expand further, no doubt, if they were given a chance. And the cost won\u2019t be $3.5 billion a year; it\u2019ll be $4.7 billion, or, as somebody\u2019s already predicting, it will be more than that.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000254\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThis is just another slice of costs to the structure that New Zealanders have to deal with. You might say, \u201CWell, that might be justified if there was a reduction in costs elsewhere in the welfare system or anything like that.\u201D But you can rest assured there won\u2019t be if this Government was in charge, because their solution to every problem is for Grant Robertson to just write another cheque and throw some money out with no focus on what we\u2019re actually getting for the money\u2014because he\u2019s addicted to spending. And we all know that. We all know that they\u2019re addicted to making announcements about spending without thinking through how it\u2019s going work in practice. That\u2019s why this bill is very poorly timed; it\u2019s preparing the way for another jobs tax\u2014something that this Government promised not to do: to bring in more taxes. And here we go.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000255\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EWe\u2019re finding that when you see a Budget that\u2019s coming down the track with incredible amounts of new spending, all New Zealanders know that inevitably, somewhere down the line, the bill is going to be sent. And the bill is going to be sent in higher taxes. This Government is sneaky about how it does it. It sneaks in the higher taxes through inflation. It uses inflation to push more incomes into higher tax brackets. It loves that, and that\u2019s why there\u2019s so much more income tax revenue. Now, it\u2019s sneaking in another tax\u2014this income insurance scheme levy\u2014taking $1,000 a year out of the pockets of New Zealanders on the average wage. And they\u2019ll be saying to themselves, \u201COh, I thought I was going to be 350 bucks better off.\u201D In fact, you won\u2019t be if you\u2019re on the average wage; you won\u2019t get a cent, but if you\u2019re below $70,000, you might get 350 bucks but, \u201COompha, I\u2019m going to lose 1,000 bucks at the same time. It\u2019s not a one-off 1,000 bucks; it\u2019s year in, year out I\u2019m going backwards.\u201D And this is part of the \u201Cbackwards\u201D Budget for 2022, and that\u2019s why we oppose it.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022 data-id=\u00224d7dd54600424ccd9531e41b73f8ed66\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000256\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00224d7dd54600424ccd9531e41b73f8ed66\u0022\u003EJO LUXTON (Labour\u2014Rangitata):\u003C/span\u003E Thank you, Madam Speaker. Well, this piece of legislation itself, the Income Insurance Scheme (Enabling Development) Bill, is a very short and quite simple and straightforward bill. It doesn\u2019t put in place a social income insurance scheme, or it doesn\u2019t indicate that the Government has already made a decision about putting in place a social insurance scheme. What it does do is it ensures that we\u2019re in a position to set up a social insurance scheme, if that decision is made, by allowing ACC to engage in the work to develop the scheme. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000257\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022\u003EWhat we know is that over 100,000 people a year in New Zealand lose their job through no fault of their own. A scheme such as this, if it was to come into place, would provide some assurance, some room to breathe, some time to think, for people should they lose their job and find themselves in that situation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000258\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022\u003ESimon Watts talked about how it would only be relatively used by up to 50,000 people per annum. That is the nature of insurance. We pay house insurance, we pay contents insurance. We may never use it, but it is there should we need it, should we find ourselves in the position. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000259\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022\u003ESo this bill\u2014simple, short, quite straightforward\u2014simply allows us to begin the process of putting into place the preparatory work required should this social insurance scheme come into place. Thank you, Madam Speaker.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022 data-id=\u00223f33d06a361947a783191eac92e35d4c\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000260\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00223f33d06a361947a783191eac92e35d4c\u0022\u003EHon SCOTT SIMPSON (National\u2014Coromandel):\u003C/span\u003E Thank you very much, Madam Speaker. I rise to stand in opposition to the second reading of the Income Insurance Scheme (Enabling Development) Bill being passed\u2014rammed\u2014through this Parliament under urgency by a Government using its absolute majority. And not even with the support of their loyal, trustworthy supporters the Greens, who are for some reason deciding to abstain on this legislation for a reason that is not clear to me, but I would have thought that the best thing to do when you come to Parliament is take a view, take a position. If the Greens are unsure, then they should certainly oppose.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000261\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022\u003EThe irony, the great irony of this piece of legislation is that the first probable recipients of it, once it\u2019s eventually passed and the framework that this legislation seeks to put in place is adopted, and then the actual legislation to create the income insurance scheme is put into effect\u2014the irony is that the first recipients are likely to be members of the Labour Party sitting opposite who have lost their jobs at the next election. Those are the people who are likely to be the first recipients, and they should actually declare an interest; they should declare a conflict of interest in this piece of legislation because they are likely to be the first recipients of it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000262\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022\u003EBut this piece of legislation is\u2014as my colleague, the Hon Paul Goldsmith has said\u2014a sneaky little piece of legislation snuck in under the guise of the Budget that was released yesterday. Very little said about this proposal to increase the taxes of hard-working New Zealanders who are already being squeezed in every which way by the economic inefficiency and overspending and over-borrowing of the Government as it leads to the highest rate of inflation in 30 years. So we are opposed to this piece of legislation because we are opposed to the principle that it seeks to build upon.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000263\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022\u003ENow, normally at this point in a debate in the Parliament we would be hearing back from a select committee. There would have been submissions from interested parties and stakeholders. We would have heard from officials and had a departmental report. But no, because this piece of legislation is being pushed through under urgency\u2014and one would have to wonder why, other than to avoid the scrutiny that would occur at a select committee.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000264\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022\u003ENow, this is a Government that came into power, on the back of Winston Peters\u2019 decision, saying that they would be the most open and transparent Government in the history of New Zealand. And here we are on a Friday morning in the Parliament passing\u2014under urgency\u2014a sneaky little piece of legislation without scrutiny, without transparency, without the benefit of any kind of due diligence from members of the public, the voters, or the people who are likely to be impacted for ever and ever, if this Government was allowed to do it. No need to panic, listeners who might be listening to this at home, because a National Government will put this right at the first possible opportunity. So don\u2019t worry too much. If this gets passed eventually, it\u2019s only going to be for a short duration. And then, sensibleness, normality, and some sensible approach to the country\u2019s economy and to taxation and to reward for effort will be reinstituted in this Parliament. Help is on the way.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00225cf229a9-8722-46b2-a37e-b528e075be7d\u0022 data-id=\u00228e95fc663c3d42aeafaaedc1ed9249de\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000265\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225cf229a9-8722-46b2-a37e-b528e075be7d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00228e95fc663c3d42aeafaaedc1ed9249de\u0022\u003EANGELA ROBERTS (Labour):\u003C/span\u003E Kia ora, Madam Speaker. It is a pleasure to take another call about this. I think it\u2019s\u2014maybe it\u2019s the teacher in me, but it\u2019s great to take an opportunity to correct a bit of misunderstanding. It sounds like somebody hasn\u2019t done their homework. Not only is it obvious that they haven\u2019t read the bill but there are people who, maybe, might not have even read the title of the bill, Income Insurance Scheme (Enabling Development) Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000266\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225cf229a9-8722-46b2-a37e-b528e075be7d\u0022\u003EThere\u2019s nothing sneaky about this. Obviously, there are people on the other side of the House who are so out of touch with business that they are unaware that this conversation has been going on for years. Like I say, when we\u2019ve heard earlier today about the fantastic responses to things like the earthquakes and to COVID, what this bill does\u2014and it is timely\u2014is it helps us to prepare, not just to react but to prepare for shocks, personal shocks, like illness that has been referred to earlier, regional shocks, sectoral shocks, and global shocks. This helps us to prepare.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000267\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225cf229a9-8722-46b2-a37e-b528e075be7d\u0022\u003EWhen I say \u201Cus\u201D, I mean workers and I mean businesses. So out of touch on the other side of the House, they have no understanding how important it is that we collectively support businesses in such situations. We are really, really clear that it is important, especially in a tight job market, that we can have space to ensure that we have skills retained, rehabilitated, or progress education. Because we need to make sure that our human resource in our economy is well looked after, that we can ensure productive capacity is where it should be. This is progressive. It is thoughtful. This bill is enabling the development of this collaboratively. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022 data-id=\u00224533a566e6e4467fbdb1f858f19d2e2f\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000268\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00224533a566e6e4467fbdb1f858f19d2e2f\u0022\u003EJAN LOGIE (Green):\u003C/span\u003E Thank you, Madam Speaker. And I know I shouldn\u2019t bring you into the debate, but I do just want to commend you on your exceptional pink outfit. It really lifts the bar, I think, for all of us. Just to take another call on behalf of the Green Party on the Income Insurance Scheme (Enabling Development) Bill 2022. I do recognise that there\u2019s a bit of a difference in debate and the Government members are bringing it back to actually some of the content of the bill. But I do think it is fair to debate a bit wider around the income insurance scheme, even though the Government hasn\u2019t made a commitment to going ahead with it yet, just because the Minister\u2019s first reading speech was talking about the problems it was intending to solve and the development of it being through unions and Government and business, and that we do recognise, as a country, that we have a problem in terms of the impact of sudden job loss, whether that be through redundancy or sickness or disability, and the lack of structural support and active labour market policies in terms of supporting people to retrain. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000269\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EI do need to remind this House, though, that this was actually a topic that was actively considered by the Welfare Expert Advisory Group (WEAG), who spent a really considerable amount of time looking at our whole social security system, and a large chunk of their report was around active labour market policies and how, despite the rhetoric of the National Party saying, you know, we need to support people into work and workers, the pathway out of poverty, ignoring all the barriers to work and, actually, the fact that caring for children and those who are unable or need support is actually good, important work, possibly the most important work\u2014despite all of that, their rhetoric that, actually, the previous welfare system basically just left people with zero support in terms of finding good work, being able to work out what the opportunities were, and being able to support them into training or the pathways to get those good jobs. It was all about any job or nothing, and that served a low wage economy. It kept our queues for jobs long, but people were demoralised and their pay packets were skimpy. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000270\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003ESo the WEAG considered all of these things and they very clearly said that we needed to look at overseas models and that there were things that we could learn from countries that operate a social insurance model of unemployment support with strong and entrenched social partnership, employment relations. But the clincher is, after all of that consideration, looking at all that information, they said, \u201CAlthough we do not recommend changing our social welfare system to a social insurance model, New Zealand can learn much from the [active labour market component] of such models.\u201D So the Greens still retain a concern that this is moving ahead at such a pace while, as at this point, not one of the Welfare Expert Advisory Group\u2019s recommendations has been implemented in full, and that has been years that we\u2019ve had those recommendations on the table. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000271\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EThey are about addressing the fundamental pain in our society of people not having enough to be able to sustain themselves, and the fact that we have horrific levels of preventable diseases and illness in this country because of poverty and precariousness. It undermines productivity, it undermines opportunity, and it undermines wellbeing. While this policy, which we are moving ahead at speed, will address some of the aspects of that, it also creates more complexity and embeds potentially more inequity. One of the aspects that we\u2019re concerned about in particular\u2014and we notice wage scarring is one of the things that this policy is meant to be addressing. But for women, at least, the major cause of wage scarring\u2014and for people who don\u2019t know that term, what it is is when you leave a job on a particular income and then are out of the workforce and you come back in at a lower rate, or without the same trajectory that you might have had in terms of pay. So there\u2019s been a scarring from that disrupted time outside of the paid workforce. But the major reason women experience wage scarring is through our role doing caring work, that women are still the primary people doing that work. When we compare what\u2019s in the current proposal around the income insurance scheme, it will provide up to $2,517 a week for up to 28 weeks for people receiving the income insurance if they leave for reason of a redundancy or sickness or disability. We compare that to the paid parental leave scheme, which has a cap on it of $621. That\u2019s like a fourth of what this scheme will provide and, yet, we know that that is at least a significant part of the major cause of scarring for women\u2019s wages. So we do have a concern around that inequity. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000272\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EAnd there\u2019s nothing for people\u2014well, there\u2019s our welfare system\u2014who are doing the caring work for our elderly. We know that more and more people are ageing in place in their homes and that that often requires support from family members, usually from women, and that saves us collectively as a country a huge amount of money. But when we\u2019re forcing people out of paid work to be doing that caring and putting them on poverty wages and a benefit, then, actually, they are bearing a disproportionate burden of that cost, and we don\u2019t believe, in the Greens, that that serves our community. So we\u2019re hoping some of these issues are going to be resolved out of the consultation and that we get a two-track forward process around welfare and any income insurance, or a decision that actually our welfare system is the best way to do this, and that I\u2019m sure we would be very on board with. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000273\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003ESo just to touch on the specifics of this bill, there\u2019s a couple of things I wanted to point to: one which has a recognition clause in it of Te Tiriti o Waitangi. That has been co-written, or developed, between the iwi leaders group and ACC. I\u2019ve got to say, I think that is a fantastic initiative. It\u2019s kind of a little bit\u2014I don\u2019t mean to be churlish about this, but it just sits a bit uncomfortably, the fact that we\u2019ve got ACC legislation in front of select committee at the moment around birth injuries and other matters, and submitters have been calling for a strong Te Tiriti amendment to go into that bill, and we\u2019ve been told it\u2019s out of scope from the legislation. It\u2019s fantastic to see it coming in in terms of this part of the design, and the recognition of the importance of it. I just wish we could get it across all of ACC and our other Government agencies, because that is the way forward. That is the way to ensure that any policy actually delivers for everybody as opposed to what we\u2019ve been doing for ever in this country, which is the Government designing policies based for the mythical average person, who\u2019s almost always white and P\u0101keh\u0101, and, actually, it reaches them and nobody else and definitely not M\u0101ori. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000274\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003ESo it\u2019s fantastic to see that partnership in there. I was a little bit concerned to read in the explanatory note, though\u2014and I\u2019m sure this was not signed off by the iwi leaders group, where the framing of it recognising the Crown\u2019s commitment to the Treaty of Waitangi / Te Tiriti o Waitangi principles. I\u2019m sure Margaret Mutu did not approve of that presentation of Te Tiriti, or the Crown\u2019s requirement to honour Te Tiriti o Waitangi. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000275\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EHowever, the actual substantive provisions in the bill around requiring ACC to, as far as reasonably practical, take into account the views of M\u0101ori in the design of the systems and processes to ensure that the scheme is accessible and responsive to M\u0101ori, and that the scheme will have the capability in the context of the scheme to contribute to improved M\u0101ori economic and labour market outcomes. Thank you, Madam Speaker. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002286ae9a20-33bd-4912-8dc1-5b4eb670be44\u0022 data-id=\u00220b725a51731f48cab488350370e1fbb8\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000276\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002286ae9a20-33bd-4912-8dc1-5b4eb670be44\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220b725a51731f48cab488350370e1fbb8\u0022\u003EKAREN CHHOUR (ACT):\u003C/span\u003E I rise today in opposition to the Income Insurance Scheme (Enabling Development) Bill. There are a couple of things I\u2019m concerned about, and one of them is the use of urgency. When I first arrived in Parliament and we were having a discussion around what urgency actually was, I was assured that urgency is not something that happens often here\u2014so it must be for something really important. Since I\u2019ve been here, urgency seems to happen all the time. We seem to have forgotten that for making good public policy it matters that we have good consultation. It matters that we listen to the public\u2019s concerns, and when we\u2019re in urgency we skip that process.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000277\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002286ae9a20-33bd-4912-8dc1-5b4eb670be44\u0022\u003EAs representatives of New Zealand and as representatives of the people of New Zealand, surely listening to their concerns and listening to their voices is the most important part of our job, and it seems that we keep skipping that over and over and over again in this House. I find it quite insulting that we are debating this in urgency, when New Zealanders are struggling to feed their families right now. We should be debating right now how we can make immediate changes to help New Zealanders have more money in their back pocket so they can feed their children, and $350 is an insult\u2014an absolute insult. It\u2019s a dollar a day. How will you feed your children on a dollar a day, and how was that even targeted, and how are these bills going to make immediate changes when our communities are crying out for help?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000278\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002286ae9a20-33bd-4912-8dc1-5b4eb670be44\u0022\u003EPeople that have never asked for help are now asking for help. Have we forgotten that we\u2019re in the middle of an economic crisis as we\u2019re debating a bill that\u2019s going to enable this Government to take more money off the people who are struggling to pay for food for their families? They already can\u2019t afford to feed their families, and this bill will enable the Government to take another thousand dollars a year if it goes through. You say you care and you\u2019re going to give them $350, but you\u2019ll take a thousand away if this goes through\u2014and I\u2019d like to repeat that this bill is a framework for an \u201Cif\u201D. Why are we spending money on an \u201Cif\u201D bill when we could be putting more money into what we need right now?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000279\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002286ae9a20-33bd-4912-8dc1-5b4eb670be44\u0022\u003EACT wants to have the best public policy in the world, and the only way we can do that is if we consult with the people we work for\u2014the New Zealanders who pay the taxes that pay our wages to stand here and debate things like this. When we avoid consultation and we do things under urgency so often here, we are losing the voice of the people. This bill is an \u201Cif\u201D bill, but when you look at what they are thinking about doing, it is just going to add extra costs to the pockets of New Zealanders. It\u2019s going to add extra costs to small business, and it\u2019s not going to be any immediate help for the cost of living crisis we are suffering from right now. We\u2019ve added so many costs over the last few years on to small business, on to taxpayers, and we can\u2019t keep doing this. Inflation is going to be around for a long time, and that is what we should be debating in this House under urgency\u2014if you\u2019re going to have urgency. We should be debating how we are going to immediately help people put more money in their back pocket right now so they can feed their families. That is why I stand here and oppose this bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00226e419a18-df21-483e-9650-2aaee4e06211\u0022 data-id=\u00222d919f81bed74d8d98bb3d664e59cbfe\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000280\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226e419a18-df21-483e-9650-2aaee4e06211\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00222d919f81bed74d8d98bb3d664e59cbfe\u0022\u003EIBRAHIM OMER (Labour):\u003C/span\u003E Thank you, Madam Speaker. I appreciate again the opportunity to speak on this bill, the Income Insurance Scheme (Enabling Development) Bill. The speaker who just resumed her seat, Karen Chhour, said \u201Cthe people that we work for\u201D. I\u2019d like to know who the Opposition actually listens to. In regards to income insurance, Business New Zealand and the Council of Trade Unions have been consulted. Business New Zealand represents all businesses across the country, and the union also represents the working people. I just want to know: who do they work for? We, on this side of the House, listen to people and we work for the people. We listen to the people that we work for.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000281\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226e419a18-df21-483e-9650-2aaee4e06211\u0022\u003EThis bill is short, it\u2019s simple, and it\u2019s straightforward. This bill does a lot of things, but one thing that I like, and Jan Logie just touched on, is the Crown\u2019s responsibility and commitment to Treaty of Waitangi principles by requiring ACC to engage with M\u0101ori and to be purposeful in developing a scheme that will contribute to improving M\u0101ori economic and labour market outcomes. This is good but also does recognise the need to listen to workers and employers when designing the scheme by requiring ACC to engage with representatives of workers and employers. This is very important. In the last two years, the pandemic has taught us a lot of things, but one of the things that it taught us is to actually value our workers who, through no fault of their own, lose their jobs across this country.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000282\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226e419a18-df21-483e-9650-2aaee4e06211\u0022\u003ESo this bill is a good bill. I\u2019d like to thank the Minister for bringing it to the House. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022d2995873-613f-4202-a773-5ea2d57cc953\u0022 data-id=\u00228cb0b95e05f54e869ab40e79e3b23c68\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000283\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d2995873-613f-4202-a773-5ea2d57cc953\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00228cb0b95e05f54e869ab40e79e3b23c68\u0022\u003EPENNY SIMMONDS (National\u2014Invercargill):\u003C/span\u003E Thank you, Madam Speaker. Well, my first speech on this bill brought attention to how out of touch this Government was when they felt that this was the time for this bill. My second speech is going to show how beautifully the Minister illustrated how this is a Government who can\u2019t get things done, who can only make announcements about spending through their expensive PR consultants.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000284\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022d2995873-613f-4202-a773-5ea2d57cc953\u0022\u003EThe Minister, in her second speech on this, explained to us that this was an enabling development bill for considering possible planning for pre-implementation. I\u2019m prepared to give a chocolate fish to anyone who can find anything that might be in any danger of actually getting done from an enabling development bill for considering possible planning for pre-implementation. We oppose this bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022 data-id=\u0022261c0727963146bdbbc0a8452e0df835\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000285\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022261c0727963146bdbbc0a8452e0df835\u0022\u003EGINNY ANDERSEN (Labour\u2014Hutt South):\u003C/span\u003E Thank you very much, Madam Speaker. It\u2019s a pleasure to take a short call on a great bill. A short, succinct bill that provides the necessary framework for us to give more security to our workers, our employers, at a time when the global economic conditions are uncertain and volatile. It\u2019s good for workers to be able to know that if there is a short, sharp shock to the labour market, there is some reassurance that they continue to pay their mortgage, pay their school fees, put petrol in the car, and to keep working at the standard they have in the past.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000286\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EThis is an important assurance not only for those workers but also of employers so they can retain high-skilled, quality, hard-working people and pay them a fair wage. This is a good bill that contributes to more security in our workforce and provides a good pathway forward for both workers and employers. I commend it to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022b8550e1a-ed25-44a2-b0e2-b0a8d52a7a80\u0022 data-id=\u0022df81ad88cf8045d2ac35bce8d23a72de\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000287\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b8550e1a-ed25-44a2-b0e2-b0a8d52a7a80\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022df81ad88cf8045d2ac35bce8d23a72de\u0022\u003ERACHEL BOYACK (Labour\u2014Nelson):\u003C/span\u003E Madam Speaker, thank you. It\u2019s a pleasure to take a short call on the Income Insurance Scheme (Enabling Development) Bill. I just want to make a particular point about this bill, in that it is an enabling bill. The bill gives ACC the opportunity to continue work investigating whether a scheme of this nature is needed and how it would operate.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000288\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b8550e1a-ed25-44a2-b0e2-b0a8d52a7a80\u0022\u003ESo I just want to be very clear, particularly for members opposite who may be trying to suggest that we\u2019re rushing a bill through without consultation, that it\u2019s actually going to implement such a scheme; that it\u2019s not the case. But on that note, there has already been significant consultation with both Business New Zealand and the New Zealand Council of Trade Unions, and an opportunity for public to comment and provide feedback to Government prior to the introduction of this bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000289\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b8550e1a-ed25-44a2-b0e2-b0a8d52a7a80\u0022\u003EThis bill gives the opportunity for ACC to do their work and determine whether the scheme is needed and, if it is, what it would look like. On that note, I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022 data-id=\u002272fddba16a6944cd89da64b07d7ab2fa\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000290\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002272fddba16a6944cd89da64b07d7ab2fa\u0022\u003ESIMON WATTS (National\u2014North Shore):\u003C/span\u003E It is a pleasure to take a call on the second reading of this bill, and I must acknowledge\u2014I see the Minister Carmel Sepuloni sitting on the other side there, and I listened to her contribution on the second reading. She actually called me out personally and said that I was out of touch. Well, I can tell you what: I\u2019m not a betting man\u2014I\u2019m not a betting man\u2014but I will bet on the table here today that a thousand-dollar tax on 3 million hard-working Kiwis in this country and standing up for those Kiwis in this House is not out of touch.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000291\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EWhat you see on that side of the House is a Minister and a Government who are out of touch. This policy will impact less than 50,000 Kiwis, less than 2 percent of New Zealanders, and burden them with a thousand dollar tax, per annum, that will not deliver the benefits that they require. It is a solution looking for a problem, and that is a grave problem. When you listen to these speakers saying it\u2019ll deal with an economic shock in the future, well, what about the economic crisis that Kiwis are facing today? We\u2019ve got a cost of living crisis. They\u2019re paying more and more, they\u2019re paying 20 bucks for a block of cheese at the supermarket, and we\u2019re navel gazing about some economic shock that may or may not happen in years to come, when unemployment is running at 3.2 percent. We have not got a major problem in terms of people becoming unemployed and not being able to get a job; what we\u2019ve got a problem with is that people are sitting on the unemployment benefit who can work who aren\u2019t working. We haven\u2019t got an aspirational Government that is putting the investment into those individuals to help them get back into the workforce and grow our economy and grow our country. National opposes this bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022217f4585-f6ef-408d-9318-8a6b8506920b\u0022 data-id=\u00220117be8ea715465c8a42cbe1998954b1\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000292\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022217f4585-f6ef-408d-9318-8a6b8506920b\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220117be8ea715465c8a42cbe1998954b1\u0022\u003EPAUL EAGLE (Labour\u2014Rongotai):\u003C/span\u003E Kia ora, Mr Speaker. It\u2019s a pleasure to speak on the Income Insurance Scheme (Enabling Development) Bill. Look, it\u2019s always good to speak last. You hear the emotion and the punches being pulled. But can I say, that really what this is about is under the current Act it\u2019s difficult for the Accident Compensation Corporation to take on a role in the preparation process that it needs to as a proposed service delivery agency. This bill recognises the need to listen to workers and employers when designing the scheme required by the corporation to engage with such groups while putting in place protections. So, should we decide to establish an income insurance scheme, it will ensure that this is done in the right way and able to deliver to the hundreds of thousands of Kiwis who are made redundant each year. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u00223d3996d97c48455eafd43d71eb13846e\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the Income Insurance Scheme (Enabling Development) Bill be now read a second time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 67\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000293\u0022\u003EBill read a second time.\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u0022109ea743666041d7ac55dc821e132456\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000294\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022109ea743666041d7ac55dc821e132456\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: This bill is set down for committee stage forthwith. I declare the House in committee for consideration of the Income Insurance Scheme (Enabling Development) Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000295\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022ccb3a802b7d24169af61f65471689720\u0022\u003EIn Committee\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u0022aca09b64590a45808594e5ef77ff2941\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000296\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022aca09b64590a45808594e5ef77ff2941\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: Members, the House is in committee on the Income Insurance Scheme (Enabling Development) Bill. I will remind members they\u2019re able to participate remotely. Simply, if you want to make a call, please type \u201CCall\u201D into the chat so I can see it. You should also make a call if you want to raise a point of order. If we receive new tabled amendments, I\u2019ll let members know so that they can pick them up from the Table. We come now to Part 1.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022 data-id=\u0022668cd64ceda14301b2bdae07b9f98eab\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000297\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022668cd64ceda14301b2bdae07b9f98eab\u0022\u003ECHRIS PENK (Senior Whip\u2014National):\u003C/span\u003E Point of order, Madam Chair. I seek leave of the committee that all the parts in the bill be taken as one debate.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000298\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00225388d49a81814f039b4da52fe556f2f6\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: All provisions to be taken as one question?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000299\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022f8a5d075589a418b9e92c478099b8693\u0022\u003ECHRIS PENK\u003C/span\u003E: Yes, ma\u2019am.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u0022f16f040ec8fc4cac99ca92d4f782daf9\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000300\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f16f040ec8fc4cac99ca92d4f782daf9\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: Is there any objection? There is none.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000301\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u00227898d66b4d134586b4bc3b4e72c439c0\u0022\u003EParts 1 and 2, Schedules 1 to 3, and clauses 1 and 2\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022094b0ff4-e404-451b-b4a9-ad12bd4dee56\u0022 data-id=\u00220ccbfdb276414611bc6cc50d9cf845cf\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000302\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022094b0ff4-e404-451b-b4a9-ad12bd4dee56\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220ccbfdb276414611bc6cc50d9cf845cf\u0022\u003ESTUART SMITH (National\u2014Kaik\u014Dura):\u003C/span\u003E Thank you, Madam Chair. It\u2019s a pleasure to take a call in this debate. I have a couple of questions, I\u2019ll be fairly quick. But I note in clause 9(3)(a) it says: \u201CIn performing this function, the Corporation must ensure that, as far as is reasonably practicable,\u2014(a) the views of M\u0101ori are taken into account in the design of the systems and processes for the income insurance scheme to ensure that the scheme is accessible to M\u0101ori and responsive to M\u0101ori perspectives;\u201D etc., etc., which is fine, and everyone would agree with that. But in clause 9(4) it says: \u201CThe Corporation must engage with M\u0101ori in good faith in meeting the requirements of subsection (3)\u201D, which I\u2019ve just referred to. But then it goes into clause 9(5) to say that: \u201CThe Corporation must engage with representatives of workers and employers in the design of the systems and processes for the income insurance scheme to ensure the perspectives of workers and employers are taken into account.\u201D But there is no reference to act \u201Cin good faith\u201D with those groups. So that, by omission, is almost implying that their views will not necessarily be taken as seriously and they won\u2019t act in good faith with that. So is that just an omission in the bill? Are we going to see a Supplementary Order Paper so to rectify that? Or is that what the Government intends\u2014that one group gets selected out to be acted in good faith with, and others do not. So I\u2019d like to know the answer to that from the Minister.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000303\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022094b0ff4-e404-451b-b4a9-ad12bd4dee56\u0022\u003E Also, in Schedule 3 I note in clause 2, information about a person\u2014and this is referring to the information that can be gathered on people by the ACC, or the corporation. Under clause 2(a) it says: \u201Cethnicity, including self-declared ethnicity\u201D, and I\u2019d really like to know what that means. Is that the case across Government, that people can self-declare ethnicity? And does that have the same legal status as some other definition of ethnicity? I\u2019d like to know what those are. I think these are perfectly acceptable questions on things like this. If you\u2019re going to draft\u2014not you of course, Madam Chair\u2014but if Government is going to draft legislation, it needs to be precise, because if this doesn\u2019t line up with other legislation, then we\u2019ve got a problem, and, if it does, then we need to be clear about what \u201Cethnicity\u201D means and what \u201Cself-declared ethnicity\u201D means and the legal status of those two things.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000304\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022094b0ff4-e404-451b-b4a9-ad12bd4dee56\u0022\u003EJust finally, I\u2019d like to make a little suggestion under that same clause in Schedule 3, it says \u201CInformation about a person\u2019s\u2014\u2026 (f) visa status\u201D. I suspect we would all know with the current Minister that it will almost certainly be pending, it won\u2019t be yet resolved. I would suggest that they perhaps include Minister Faafoi on their working group. Thank you, Madam Chair.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022 data-id=\u002244162e7094c64580a60e58dd10a2fe62\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000305\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002244162e7094c64580a60e58dd10a2fe62\u0022\u003EHon CARMEL SEPULONI (Minister for ACC):\u003C/span\u003E Our intention is to work in good faith with all the stakeholders and groups that were mentioned earlier. We have been really clear from the get-go that we would not have embarked on the process of exploring this social income insurance scheme if we didn\u2019t have the support of the tripartite partners\u2014Business New Zealand and the Council of Trade Unions. So they have been with us each step of the way.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000306\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EIt\u2019s been also been important to us that we do engage M\u0101ori early on, and we have been further buoyed by their support for us to continue this work and that is exactly what we\u2019re doing. Speaking to them about the wording in the bill, they were happy with the fact that we have been so specific with regards to saying that we \u201Cmust\u201D engage. It\u2019s not \u201Cshould\u201D, it\u2019s not \u201Cmay\u201D; it is that we \u201Cmust\u201D. We have made that clear because of the fact that we know how important this scheme could and should be for M\u0101ori. So the intention, certainly, is to act in good faith with everyone. I think the difference is that from the start it was a discussion that was really with the Council of Trade Unions, Business New Zealand, and the Government. Then along the way we have then made sure to bring M\u0101ori or iwi on board and to keep them in step with regards to knowing what our moves might be here, as well as getting their advice on how they\u2019re feeling with regards to where we\u2019re going, and making sure that we\u2019re taking them with us. So I\u2019m quite happy with the wording. I think it\u2019s landed where it has and I\u2019m pretty sure our tripartite partners and also M\u0101ori are happy with the wording of the legislation as well.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022 data-id=\u0022c78710973f5249b68d56e839da31a388\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000307\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c78710973f5249b68d56e839da31a388\u0022\u003EJAN LOGIE (Green):\u003C/span\u003E Thank you, Madam Chair. I\u2019ve got a few questions, and thank the Minister for this opportunity to try and get my head around some of the detail in the bill. So one of the first questions is about the timing of this bill and going through urgency. I\u2019ve read through the papers and I\u2019ve seen the modelling that was in the regulatory impact statement that was talking about how we either do it now and then there\u2019s the risks of actually delaying implementation if the Government decides to go ahead, because the preparatory work wouldn\u2019t have been done, and it would have to wait until the introduction of the final legislation, which would be in July. That would really slow things down.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000308\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EBut I didn\u2019t see any analysis in there of the idea of introducing legislation at the point of the Government making a decision. The only thing I could find around was a line in the regulatory impact statement that was saying, \u201CIf enabling legislation is not passed now, advice on operational and budgetary implications will be more limited in scope\u201D.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000309\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EI was just interested and wanting the Minister to explain or add a bit more substance to that, because mostly the other papers talk about the stage after the Government having signed this off to keep going, and the work around modelling and the need for private information in that modelling to be able to get it to work. So I\u2019m interested in actually what\u2019s required between now and the Government making a decision in detail that requires this to happen under urgency now.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022 data-id=\u00228f905c8cf9474b97adae2b17c26801c1\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000310\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00228f905c8cf9474b97adae2b17c26801c1\u0022\u003EHon CARMEL SEPULONI (Minister for ACC):\u003C/span\u003E Thank you to the member. It\u2019s important because what we\u2019re asking ACC to do actually falls out of the remit of ACC with regards to legislation. Money in the Budget has been set aside so that they can do the development work that we need them to do and the scoping that we need them to do with regards to what a scheme may look like and what would be required to actually operate the scheme. We need them to get that under way, because if we make the decision to do it, then\u2014otherwise we will be playing catch up. So anyway, the legislation has to be put in place.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000311\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EAlso we have to have the legislation in place, otherwise they can\u2019t spend any of the money that\u2019s been set aside to support them to do it\u2014money that is actually in this Budget. So I do want to clarify; I know the member who just asked the question knows this, but I do want to clarify that this bill is just enabling that. It\u2019s actually not talking about the detail of what the scheme will look like or legislating for the scheme. I think most members in the Chamber understand that. So the scope of this bill is very narrow and it is for the purpose of us doing the preparatory work that we need to actually develop this further and then we see what happens.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022 data-id=\u0022d21fe7de796640669790f9355bec1eb1\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000312\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022d21fe7de796640669790f9355bec1eb1\u0022\u003EJAN LOGIE (Green):\u003C/span\u003E I think I\u2019ve almost got my head around it, but I\u2019ve got more questions to try and make sure I have. My understanding is that normally in the area of policy related to ACC, it\u2019s the Ministry of Business, Innovation and Employment that does that work, in consultation with ACC officials. So in terms of the Government being in a position to make a decision, I would have thought that that was more policy, and so I\u2019m just trying to get my head around, actually, that point. Hopefully, that made sense.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022 data-id=\u00220b1ee69d6f374e85ac101b89eb91b84d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000313\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220b1ee69d6f374e85ac101b89eb91b84d\u0022\u003EHon CARMEL SEPULONI (Minister for ACC):\u003C/span\u003E I thank the member\u2014I understand what you\u2019re saying. You\u2019re right\u2014with regards to ACC, the Ministry of Business, Innovation and Employment does develop the policy, but ACC needs to do work on what the operationalisation of this scheme would look like, what the IT requirements would be, and so it\u2019s actually work around the practical kind of implementation side of running this type of scheme. If I haven\u2019t been clear on that, then this is a good opportunity to be able to clear this up.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022 data-id=\u0022bdd6c5afa16447dbb9664bfe7c76a4a4\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000314\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022bdd6c5afa16447dbb9664bfe7c76a4a4\u0022\u003EJAN LOGIE (Green):\u003C/span\u003E Thank you, Madam Chair. Another area of questioning, and it\u2019s\u2014I feel as if I\u2019m being a bit nerdy.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000315\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00223985cb7b264c40a29663fecbda878fbc\u0022\u003EHon Carmel Sepuloni\u003C/span\u003E: Never!\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000316\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00223d29d22d91094205850b5cbdc754630b\u0022\u003EJAN LOGIE\u003C/span\u003E: That\u2019s right. But, looking at the departmental statement\u2014this is on a completely different point\u2014the clause that I was very happy to see, it was co-developed with the iwi leaders group and ACC around the co-design work with M\u0101ori.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000317\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EI noticed in the departmental report and the general policy statement, it said that the bill requires ACC to engage with and reflect the views of M\u0101ori and to be purposeful in developing a scheme platform that will contribute to improving M\u0101ori economic and labour market outcomes, including revitalising m\u0101tauranga M\u0101ori and tikanga. Sounds awesome\u2014it\u2019s not actually in the bill, that specificity. So did that get taken out or is that just inherent in the labour market and economic outcomes?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022 data-id=\u002226fe0f6806b04fbd8e3b397a6e43e314\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000318\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002226fe0f6806b04fbd8e3b397a6e43e314\u0022\u003EHon CARMEL SEPULONI (Minister for ACC):\u003C/span\u003E I actually didn\u2019t hear the first part of the member\u2019s question, so if she could repeat that, that would be great.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022 data-id=\u00223ce4e153ac494dff9a21aa1e661b12cb\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000319\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00223ce4e153ac494dff9a21aa1e661b12cb\u0022\u003EJAN LOGIE (Green):\u003C/span\u003E Thank you, Madam Chair. In the departmental disclosure statement on page 3 around the general policy statement where it\u2019s talking about the bill requiring ACC to engage and reflect the views of M\u0101ori and to \u201Ccontribute to improving M\u0101ori economic and labour market outcomes.\u201D, the sentence continues on to say \u201Cincluding revitalising m\u0101tauranga and tikanga.\u201D but that\u2019s not in the bill. In the bill, it ends at \u201Ceconomic and labour market outcomes.\u201D So I\u2019m wondering whether, actually, there was a version of the bill where it was specific around m\u0101tauranga M\u0101ori and tikanga and it got taken out, or is that just inherent but it\u2019s not mentioned anywhere else?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022 data-id=\u00221fb58ea4f6ea4cd2857be5db967cdd46\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000320\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00221fb58ea4f6ea4cd2857be5db967cdd46\u0022\u003EHon CARMEL SEPULONI (Minister for ACC):\u003C/span\u003E I think the reality was, as we were developing this, that, again, we realised that the scope of this is quite narrow. Some of the more extensive wording that the member referred to, I think, would be better suited to the actual legislation if\u2014when\u2014we decide to go ahead.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000321\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003ECertainly, I can say with confidence that the particular iwi leader who, on behalf of the Iwi Leaders Forum, has been engaged with us\u2014because of the narrow scope of the bill and because of the fact that it\u2019s enabling legislation; it\u2019s not actually determining the scheme\u2014was indeed quite content with where we landed with the language.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022 data-id=\u0022c475272245d44b4b942d53c030edd305\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000322\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c475272245d44b4b942d53c030edd305\u0022\u003EJAN LOGIE (Green):\u003C/span\u003E This might be my final question, you\u2019ll be relieved to know, and it was relating to the sharing-of-information provisions in the bill, and I\u2019m just wondering if the Minister can talk us though a bit more of the detail around that. I was pleased to see the provision in here around the checks with the Privacy Commissioner, and that before a Government agency provides information it will first consult with the Privacy Commissioner. I was very pleased to see those checks in place. But it was a little uncomfortable for me to read some of the papers talking about the privacy protections as they are in place within ACC as if that would give us confidence around this while we\u2019re waiting for a report to let us know whether ACC will be addressing the public concerns around privacy, particularly in relation to sensitive claims. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000323\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003ESo I assume the Minister has seen the privacy report, which we haven\u2019t had the chance to, and I\u2019m wondering if she would like to make any reflections and give us some assurances around that.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022 data-id=\u0022178edf8b529f4294ba73afda2af617b6\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000324\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022178edf8b529f4294ba73afda2af617b6\u0022\u003EHon CARMEL SEPULONI (Minister for ACC):\u003C/span\u003E I won\u2019t go into more extensive discussions around privacy. However, I will just state that of course ACC must\u2014it is legally required\u2014consult with the Privacy Commissioner over this and the changes they\u2019re making. There will be the need for information sharing. The most obvious one I can think of is perhaps Inland Revenue and ACC, and we need to make sure that we get that right. So in developing the scheme further, once we pass the enabling legislation, those are going to be the areas that they will need to traverse and work out with regards to how they do that safely and how they do that in a way that will uphold the integrity of the scheme if we choose to go ahead, and so this is part of the preparation. It\u2019s just working out what fundamentally that would look like and how they would do that, and, of course, we would want to get that right from day one if we were to go ahead with the implementation of the scheme.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u00228e2d6a0ceec447ff8aca83c9f2fd3dd6\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That Parts 1 and 2, Schedules 1 to 3, and clauses 1 and 2 be agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 67\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Te Paati M\u0101ori 2\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EParts 1 and 2, Schedules 1 to 3, and clauses 1 and 2 agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u002286e1f600199a42f785c9c0261dbd98f4\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000325\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002286e1f600199a42f785c9c0261dbd98f4\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: I will report this bill without amendment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000326\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003EHouse resumed.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u00223180156d0db84ff8bdff07253be22fe7\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000327\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00223180156d0db84ff8bdff07253be22fe7\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: Mr Speaker, the committee has considered the Income Insurance Scheme (Enabling Development) Bill and reports it without amendment. I move, That the report be adopted.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u00223a1949709d74446b81af1ff5a16b1163\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the report be adopted.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 67\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000328\u0022\u003EReport adopted.\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000329\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022a223a4bce0b64edd923300a9daea78b9\u0022\u003EThird Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022 data-id=\u0022c6cdcc16cf15435c961ef20e290cc172\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000330\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c6cdcc16cf15435c961ef20e290cc172\u0022\u003EHon CARMEL SEPULONI (Minister for ACC)\u003C/span\u003E on behalf of the Minister of Finance: I move, That the Income Insurance Scheme (Enabling Development) Bill be now read a third time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000331\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EThe Income Insurance Scheme (Enabling Development) Bill is a short, relatively simple, and straightforward bill. That is because it does not put in place a social and income insurance scheme or indicate that the Government\u2019s decisions on a scheme have been made. What it does do is ensure that we are in a position to set up the scheme, if that decision is made, by authorising ACC to engage in work to develop the scheme and setting out key requirements that must be followed when doing that work. The bill\u2019s small size and simplicity should not make us lose sight of what a big step it represents on New Zealand\u2019s journey towards a fairer and more productive labour market, one that supports employers to find the workers they need and supports workers to find the employer and the job that best suits their needs.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000332\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EA series of independent reports all point to the need for better support for people who lose their jobs. These include reports by the Public Advisory Group on Redundancy and Restructuring, the Organization for Economic Development and Co-operation, the New Zealand Productivity Commission, and, one that I know very well, the report of the Welfare Expert Advisory Group. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000333\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EOfficials estimate more than 100,000 people lose their jobs every year due to redundancy, lay-offs, or health conditions. This number can be even higher during economic shock, and the significant steps this Government took to prevent widespread job losses over the COVID-19 outbreak are a stark reminder of this. We know people often struggle to find suitable re-employment after a redundancy and end up accepting lower-pay jobs that don\u2019t match their skill set. This can have lifetime impacts on the wellbeing of them and their wh\u0101nau. This is an issue that disproportionately impacts our most vulnerable New Zealanders. Loss of work is more likely to affect low-income workers and these workers are more likely to lose more than one job in their lifetime. Low-income households are far less likely to have significant savings and therefore are in a much worse position to manage difficult economic times compared to higher-income households. This is also true for our M\u0101ori and Pacific communities. M\u0101ori and Pacific people are more likely to be made redundant or leave work because of a health condition or disability. And young M\u0101ori are a significant proportion of those economically displaced. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000334\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EWe all know this is a gap in the support New Zealanders need to get through hard times and land on their feet. In fact, we are only one of a small number of comparable countries that does not have some kind of income insurance scheme in place. On the other side of the House, they think doing something to bridge this gap is too hard or too expensive or should be left to private insurers. But this Government is not content to do nothing and leave New Zealanders exposed to the risks of job loss and economic shocks, while wage scarring costs our economy more than $15 billion per year. That is why we have consulted on a proposal for an income insurance scheme that would support workers who lose their jobs through no fault of their own. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000335\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EBy also covering health conditions and disabilities through the proposed scheme, we could go some way toward addressing the disparities between the support people receive under ACC and the support available in the health and welfare systems. Fifty years after it was set up, ACC remains a world-leading income insurance scheme, providing a safety net for New Zealanders who have suffered an injury by accident. However, practically everyone knows someone whose ability to work has been affected by an illness that cannot be covered by ACC. This can leave families and wh\u0101nau without an income when they are already dealing with the stress of a loved one falling ill. An income insurance scheme that covered health conditions and disabilities would help to support New Zealanders through these difficult times. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000336\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EI\u2019ll never forget a woman who I met quite early on in my political career in West Auckland, the mother of very young children, who was an early childhood teacher who developed stomach cancer and had to continue working at that time because of the fact that her household could not afford for her not to. I think all of us would agree that when someone falls seriously ill, they deserve to be able to take time out, to actually take care of their health and recover. Unfortunately, in that case, that woman passed away and she is a reminder for me why it is important that we include health conditions and disabilities when considering this scheme. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000337\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EI want to thank those who have helped not just with the development of this bill but with the proposal for a new social insurance scheme and who have supported the national conversation on the benefits, costs, and risks that come with establishing such a scheme. The proposal for a scheme came from a partnership between Government, Business New Zealand, and the New Zealand Council of Trade Unions, known as the Future of Work Tripartite Forum. The discussion document setting out the proposal was developed by a working group comprising officials from a range of agencies and representatives from Business New Zealand and the New Zealand Council of Trade Unions. Having strong social dialogue can strengthen worker and employer voices on important labour market issues. Policy developed on a tripartite basis is more likely to represent and balance the interests of employers and workers and to endure. So I want to thank Business New Zealand and the New Zealand Council of Trade Unions for partnering with the Government and taking this journey with us.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000338\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EMany of the issues we\u2019ve worked on are not as simple as this bill, and, of course, we do not always agree on every issue, but having the hard conversations and continuing to journey together on this path is what will help us deliver for all those we represent, be they citizens, workers, businesses, or employers. The Tiriti provisions in the bill are being developed through engagement with M\u0101ori and I\u2019d like to particularly thank the co-chairs of Pou Tangata, of the national Iwi Chairs Forum, and others involved. I also want to thank all of the officials across Government agencies and their responsible Ministers who continue to contribute to this kaupapa. This is a once-in-a-generation opportunity for New Zealand to add to our social safety net and their hard work and collaboration is essential to us progressing this. Running through all the contributors to the income insurance mahi, it\u2019s clear that an incredible amount of time and effort has gone into bringing all the stakeholders together and driving the work forward. I want to particularly acknowledge the Hon Grant Robertson for his leadership and vision in this space and his ability to corral us all with regards to this kaupapa. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000339\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c3a88c42-f60b-4cf9-8065-8bfb80a020eb\u0022\u003EAs we move towards the next stage in our consideration of the proposed income insurance scheme, I\u2019d like to thank the many New Zealanders who took the time and effort to submit on the proposal or engage in the consultation. Whether they were workers, employers, or others such as representatives of the New Zealand insurance sector, the submissions and other information supplied have given us a great platform to make future decisions on a social insurance model for New Zealand. It is important that we build on that platform further by ensuring ACC can add their decades-long experience in delivering social insurance. This bill achieves that. I commend this bill to the House. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u0022d2dc4a734acd41879efc302e385bfd4e\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000340\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022d2dc4a734acd41879efc302e385bfd4e\u0022\u003EASSISTANT SPEAKER (Hon Jacqui Dean)\u003C/span\u003E: The question is that the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022 data-id=\u00220b8953f1ba4d40908bfdca56d3d5aa26\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000341\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220b8953f1ba4d40908bfdca56d3d5aa26\u0022\u003EHon PAUL GOLDSMITH (National):\u003C/span\u003E Look, this bill is one that brings in, or lays the path for, the development of a new tax\u2014a jobs tax\u2014that this country can\u2019t afford. I\u2019d invite people who are listening in to this debate to cast their mind back to the 2020 election. Did they ever hear the Government talking about bringing in a new tax? A jobs tax? An income insurance scheme? Was it ever talked about? No. In fact, what they said is that they would bring no more taxes through. So that was the promise in 2020\u2014no more new taxes, apart from the higher income tax rate they\u2019d already brought through for top income earners. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000342\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022fc36f51801194e61bc047fe112737c5d\u0022\u003EHon Dr David Clark\u003C/span\u003E: It\u2019s not like the increase in GST\u2014we keep to our word. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000343\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002258e6def7cf914ac3a422469133522b27\u0022\u003EHon PAUL GOLDSMITH\u003C/span\u003E: Oh, and the Minister\u2019s response is to revert to a past issue. Take responsibility for your own Government\u2019s decisions. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000344\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EAnyway, so did you hear it in the 2020 election? No, you didn\u2019t. Did you hear much about it in the Budget? No. We had Grant Robertson deliver a long and tedious speech yesterday, and did he refer to the jobs tax? No. He talked about giving some New Zealanders 350 bucks as a one-off payment to help with the cost of living crisis. But he didn\u2019t mention the fact that, oh, by the way, those same New Zealanders on the average wage who won\u2019t get a single thing from the cost of living crisis payment will also have to shell out about a thousand dollars a year, year in, year out, every year for the new jobs tax, and there\u2019s more on the way. So it\u2019s interesting, isn\u2019t it? It\u2019s interesting\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000345\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c0e0c86e-e14d-4daa-9bc8-1b5a3d7defeb\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022799dc44678514e8ab51b600243939806\u0022\u003EHon Poto Williams\u003C/span\u003E: Prove it. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000346\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b8a08a1f8a2344f7b1aeef59468e86f7\u0022\u003EHon PAUL GOLDSMITH\u003C/span\u003E: Prove what? This is the Government\u2019s bill; they brought it in. They\u2019re laying the path for a new jobs tax, which they never talked about in the election and they didn\u2019t talk about in the Budget. They don\u2019t because they know that this is the Budget taking New Zealanders backwards, and this won\u2019t help New Zealand families deal with the cost of living crisis that they\u2019re dealing with today. And on that basis, without further ado, we oppose it.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022 data-id=\u00225402184a5da44d64a34cc671aca63d63\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000347\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002226b88bf1-f634-40e7-8019-e75cc483ace7\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00225402184a5da44d64a34cc671aca63d63\u0022\u003EJO LUXTON (Labour\u2014Rangitata):\u003C/span\u003E Thank you, Madam Speaker. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022 data-id=\u002262688ffea3314417abefc89b140646a3\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000348\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002262688ffea3314417abefc89b140646a3\u0022\u003EHon SCOTT SIMPSON (National\u2014Coromandel):\u003C/span\u003E Thank you, Madam Speaker. People listening to this debate know that they can\u2019t trust Labour on tax. This is a Government that is being particularly sneaky in trying to use the cover of urgency, the cover of the Budget debate, to bring into New Zealand a regime that will tax hard-working New Zealanders even more than they are already taxed. The Minister spent a long time talking about what would happen if, when, maybe, might be, they could be going to introduce this tax and very little time talking about this particular piece of enabling legislation that enables the Government to instruct and set up ACC to develop the framework that would allow for the tax to be put in place.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000349\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002298dbeffa-e059-49d5-8bbf-579cbaead9a3\u0022\u003ENational opposes the concept of the tax that the Labour Government is proposing. We oppose this piece of bridge-building initiative that will lead to the tax further imposed on hard-working New Zealanders. We oppose this legislation.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022b8550e1a-ed25-44a2-b0e2-b0a8d52a7a80\u0022 data-id=\u0022a0f90388ea4d4d0dab193eceb5d37215\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000350\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b8550e1a-ed25-44a2-b0e2-b0a8d52a7a80\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022a0f90388ea4d4d0dab193eceb5d37215\u0022\u003ERACHEL BOYACK (Labour\u2014Nelson):\u003C/span\u003E I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022 data-id=\u0022c1725d1fe0ea47c8aff1365e42219833\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000351\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c1725d1fe0ea47c8aff1365e42219833\u0022\u003EJAN LOGIE (Green):\u003C/span\u003E Thank you, Madam Speaker. I\u2019m going to break the mood and actually have a proper speech on this. Though I do, listening to some of the National Party members, just have to reflect. I wonder if they have a competition sometimes for the best arrangement of talking points, because it\u2019s all I hear, and I just wonder how that is, to have to give those talking points again and again. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000352\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EAnyway, to the Income Insurance Scheme (Enabling Development) Bill, which the Green Party is abstaining on. I know some people are struggling with that as a concept, but it is because, actually, we as a caucus have not made a decision on the substantive piece of legislation, so we do not want to support legislation that will speed through something we don\u2019t agree with. But, again, if it, through consultation, turns into something that is going to contribute really well to our society, then we don\u2019t want to get in the way of slowing that down either. So we are taking the middle role of abstaining so as not to be in the position of doing either of those two things.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000353\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EWe recognise very much that this is a technical bill to enable ACC to be able to do work to provide Government with the best advice around an income insurance scheme and implementation of that so that the Government can make a decision on it probably in June or July, and, if the Government decides to go ahead to enable them to implement it, to get that in place by 2025. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000354\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003ESo I would just again state that for the Greens we share the Government\u2019s recognition of the social problems that we have around the impact of sudden job loss, either through redundancy or sickness or disability, and the lack of good supports to help people get back into\u2014when it\u2019s time to return to the workforce, to make sure that they\u2019re able to return to good jobs, not just the first job. Because we know that that has a really profound impact on people\u2019s lifelong learning potential when they\u2019re forced back into the workforce just to be able to pay the bills rather than being able to choose the right job in terms of their career progression and enabling people to retrain.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000355\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EThe proposal as it went out for consultation, though, the Greens have quite a few concerns about, though, recognising that this was\u2014and it\u2019s quite a beautiful thing to see unions and business and Government negotiating and trying to solve, come up with, solutions to a problem. But for us, the fact that the Welfare Expert Advisory Group (WEAG) had considered these issues and had not recommended an income insurance system\u2014that for us is a bit of a flag and a concern as a starting point.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000356\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EBut also the proposed scheme, it just sits uncomfortably, hearing National talking points around tax, covert taxes, and how that\u2019s a bad thing. We have a concern at the level of the levy and that it is, as proposed, to be universal. For really low-wage income workers, we\u2019re worried about what that will mean for them being able to keep food on the table, particularly at a time where people are really struggling, and that migrant workers will be paying that levy but will not be entitled to the insurance at the other end. That for us is really problematic. At the moment, we\u2019re having some quite robust debates around our receptiveness to migrants in our communities. It is, I think\u2014where the policy landed, at least, as it went out for consultation\u2014for us another really worrying signal. Particularly also for migrants, low-income workers, and those in the gig economy in particular, where the settings are, it looks like there won\u2019t be a guarantee for some of them, and particularly our artists, whose work can often be quite sporadic\u2014to ensure their access to the scheme while they\u2019ll be required to pay into it. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000357\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EThen the other points that I\u2019ve mentioned earlier\u2014around the fact that the biggest impact, as I understand it\u2014the cause of wage scarring for women is leaving the workforce to do caring work, and that that is not being covered by this legislation. We know there is a massive difference between what this scheme will provide and paid parental leave. Our paid parental leave\u2014I\u2019ve just got to take a moment to just rail against the fact that at the moment I think it\u2019s a maximum, a cap, of $621 a week, which isn\u2019t even the minimum wage. While we all recognise the importance of the first thousand days in supporting our wh\u0101nau, actually, our paid parental leave isn\u2019t even enabling people to receive a minimum wage for that essential caring work that will pay off for all of us into eternity. So that is a bit of a problem for us at the moment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000358\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EAlso, around the lack of clarity\u2014the Greens had a policy we went to the election with to extend ACC for sickness and disability. This goes a little bit of a way, you could say, towards doing that, because it enables\u2014and the Minister\u2019s story in terms of bringing into the House those of cancer survivors who have been struggling in terms of our Work and Income system and still having been job tested while going through cancer treatment and not being able to work; just the inhumanity of that system. This could be seen as progress, but it also could be seen as adding more complexity, where we leave people who have long-term disability or illness in our income support system, where we haven\u2019t seen an increase to the child disability allowance or the disability allowance, I think, in many, many, many years, and the call has been from WEAG for that to be increased fourfold to basically meet the same level of support it initially offered\u2014so we\u2019re forcing people with long-term disability into that. Or the really generous system of ACC\u2014so it creates and embeds discrimination based on whether your disability is a result of accident or illness or birth, and creates more complexity, which worries us. But we\u2019re really interested in hearing people\u2019s feedback on that, because I get that it could be seen as an improvement on the status quo but is more complexity. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000359\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003EI do just want to flag that some of the Labour Party members, in their speeches there was some language that worried me, in talking in support of this, around people who have been unable to work \u201Cthrough no fault of their own\u201D as opposed to people receiving income support, which would suggest a sense of maybe that is their own fault and maybe we should be punishing them\u2014is the kind of the background ideas that kind of sit behind that language. That is the deserving and undeserving poor, and that is Victorian, and that is absolutely not consistent with the work of WEAG to get us to a society where we all have a place to be able to thrive and all of our work\u2014whether it is paid or whether it is domestic labour, caring work\u2014is properly valued so that our societies and our community has a chance to flourish.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000360\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002269dfdffa-4227-42b6-875a-fc8033bc25cc\u0022\u003ESo, for the Greens, our initial proposals around addressing those problems we identified upfront would be a guaranteed minimum income, compulsory redundancy of four weeks, to implement the WEAG report, to have free education, and to have paid parental leave extended and increased to be able to enable people at that early time to be able to do that work and have enough not to be completely stressed the entire time. We can pay for all of this by a wealth tax, which is not just about spending; it\u2019s actually about redistributing, to all of our collective benefit. So that\u2019s where we\u2019re at with this at the moment. Thank you.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u0022dda39777839449ebad1f9d28a18948d2\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000361\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022dda39777839449ebad1f9d28a18948d2\u0022\u003EASSISTANT SPEAKER (Hon Jacqui Dean)\u003C/span\u003E: Members, the time has come for me to leave the Chair for the lunch break. The House will resume at 2 p.m.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000362\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003ESitting suspended from 1.03 p.m. to 2 p.m.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022 data-id=\u0022bec55273be374b5bb4a277970f39df9d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000363\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022bec55273be374b5bb4a277970f39df9d\u0022\u003ETONI SEVERIN (ACT):\u003C/span\u003E On this beautiful Friday afternoon, I\u2019d like to oppose the Income Insurance Scheme (Enabling Development) Bill. I know it\u2019s only a framework bill. I understand that. However, this is the setting-up bill for what we\u2019re all saying is the \u201Cif\u201D bill but \u201Cprobably will be\u201D bill. There is $2.2 million to set up the framework, privacy, sharing\u2014I know there are a few concerns there that will have to be rattled out, but, again, we\u2019re just concerned about the fast way these measures are getting put through. Yes, you may have consulted with Business New Zealand and trade unions, but that\u2019s not necessarily all the businesses and all the workers out there. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000364\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003EThere is a point here that I\u2019d like to raise from Retail New Zealand. They\u2019ve just said to us they do not support imposing another cost on businesses and their employees without a corresponding offset in tax. So I\u2019m just putting this out there\u2014maybe you want to think about that if you want to put on more costs in the future, with the \u201Cpossible\u201D bill, and then we have to remember that this is supposed to be a Budget to help those that are struggling, but all it will possibly do in the future is take more money out of the pockets of hard-working\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000365\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ee649aea-c6fa-4610-9fcf-5c4bb2d3cd33\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002273018225a02542afb8a00ae93aab703d\u0022\u003EMatt Doocey\u003C/span\u003E: That\u2019s right. They don\u2019t care.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000366\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022266c624ed84d4558877d297104f489a2\u0022\u003ETONI SEVERIN\u003C/span\u003E: Exactly. They say that over there that we\u2019re representing rich people, but I would like to dispute that. Many of us within the ACT Party, and our friends, have done some of those low-end jobs, because we knew that we had to do those low-end jobs to feed ourselves. And you\u2019ve got to remember that they\u2019re not horrible\u2014yes, for some people, I think, but any job can be a good job, and it can be a stepping-stone job as well. A lot of employers love to see people who can actually do their job. Also, we do have stuff in place already to help people that fall on hard times, and this is not the time to do this, while we\u2019re right in the middle of cost of living crisis. Even if it is 6 months or 16 months down the track, we don\u2019t know what the future\u2019s going to bring and we need to support people by giving them a tax-bracket break now. Drop the taxes.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000367\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003EThere is also the question of consultation. It\u2019s about the everyday New Zealanders who don\u2019t necessarily sit and watch Parliament TV. A lot of them don\u2019t know about these bills and how they\u2019re going to affect them until they see it in their pay packet. They don\u2019t know why they have $3.50 less until they see such-and-such a levy or a \u201Cdollar for this\u201D. Every frigging dollar counts for everybody in this reaction. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000368\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003ENow, this is true\u2014somebody just told me today that a Tasty block of cheese is $21.50\u2014$21.50 for a block of cheese. I know that not everybody eats the expensive cheeses\u2014they might eat the Tasty cheese\u2014so I would hate to think how much the other cheeses are costing. I\u2019m not a big cheese eater so I can\u2019t testify on that one. But there are those who do like to make toasties, and a lot of families love to make cheese sandwiches.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000369\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00229d892f20-579d-4c43-8247-7ab72c4f7c2e\u0022\u003EBut we do not agree with this bill, this framework, to set up an \u201Cif\u201D bill. It is just taking more taxpayers\u2019 dollars away from where they should be going, and that is to hard-working Kiwis. So ACT opposes this bill.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u00225e86f45574904cd9a949149cc0f7825f\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the Income Insurance Scheme (Enabling Development) Bill be now read a third time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 67\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 42\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAbstentions 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party of Aotearoa New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000370\u0022\u003EBill read a third time.\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022\u003EBills\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000371\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022c4518c720e584dd5b438a0edf046a6da\u0022\u003ECommerce (Grocery Sector Covenants) Amendment Bill\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000372\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u002296c93c414495486a8ee406167ff58da0\u0022\u003EFirst Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022 data-id=\u00227fbc1dd74715457091715beb4b1faa6a\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000373\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00227fbc1dd74715457091715beb4b1faa6a\u0022\u003EHon Dr DAVID CLARK (Minister of Commerce and Consumer Affairs):\u003C/span\u003E I present a legislative statement on the Commerce (Grocery Sector Covenants) Amendment Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000374\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002294914f6ab17b4e439fb1529c3ed1623d\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: That legislative statement is published under the authority of the House and can be found on the Parliament website.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000375\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b90d42ab63c74fa59e9d3b2a7bbf3135\u0022\u003EHon Dr DAVID CLARK\u003C/span\u003E: I move, That the Commerce (Grocery Sector Covenants) Amendment Bill be now read a first time. I nominate the Economic Development, Science and Innovation Committee to consider the bill. At the appropriate time I intend to move that the bill be reported to the House by 16 June 2022, and that the committee have authority to meet at any time while the House is sitting, except during oral questions, during any evening on a day on which there has been a sitting of the House, and on a Friday in a week in which there has been a sitting of the House, and outside the Wellington area, despite Standing Orders 193, 195, and 196.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000376\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EThe bill amends the Commerce Act 1986, banning restrictive covenants on land and exclusive covenants on leases which stifle competition. It makes existing covenants that meet this test unenforceable. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000377\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EGroceries are an essential purchase, as well as a major expense for most New Zealand households. In the year to June 2019, food was the second largest expense for New Zealand households, with an average spend of $234 per week. Competition between the major grocery retailers is a key driver of price, quality, range, and service that is offered to Kiwi consumers. In March, the Commerce Commission published its final report on the market study into the retail grocery sector. It found that in New Zealand, competition is not working as it should be; it is not working in the interests of Kiwi consumers, and, instead, the duopoly, made up of Woolworths New Zealand and Foodstuffs, is making large profits at the expense of everyday New Zealanders. In fact, they found that even on their most conservative estimate, that duopoly was taking a million dollars a day in excess profits, each and every day of the year, out of New Zealanders\u2019 pockets. So, in its report, then, the Commerce Commission noted that the best way to improve competition is to make it easier for competitors to enter the market, which brings us to tonight\u2019s bill. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000378\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EOur major grocery retailers have been lodging and obtaining restrictive covenants on land and exclusive covenants on leases. Because of this, our supermarkets have, effectively, been engaged in land wars, which in some cases has left suburbs and shopping centres without choice. An example of this is in Ponsonby in Auckland, which is only serviced by Countdown. Members in this House will have their own examples of this around the country. Of course, these bans on land are also a disincentive to new competitors coming into the market who might look from offshore and see a highly profitable sector that they want to be a competitor in because they think it\u2019s good for business and because they could give a better deal for consumers. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000379\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003ESo, based on the Commerce Commission\u2019s findings, a new ban will be applied to covenants that benefit Woolworths New Zealand and Foodstuffs. We will build in the option to include other retailers in the future should the Commerce Commission consider it appropriate. If others set up here and start the same practices, they too would be subject to a ban. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000380\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EThere is one covenant that I believe should be permitted, and this is something that can be tested through the select committee process. Businesses that sell retail fuel often add a covenant to the land, preventing the future installation of fuel tanks. That guards against the potential for litigation over responsibility if there is a future leak of fuel, and that litigation typically goes around who is responsible for contamination in the soil. The proposed bill would therefore not apply to covenants in place for legal and environmental impact reasons connected to a retail fuel site as defined in section 4 of the Fuel Industry Act 2020. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000381\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EThe Commerce Act will also allow the commission to approve individual applications for covenants as well, should that be deemed in the public interest\u2014i.e., if the public benefit of a covenant in a particular specific circumstance outweighs any negative effects. So that, again, makes sure we don\u2019t end up with unintended consequences. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000382\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EWe made a campaign promise at the last election to address the rising cost of groceries and to make sure shoppers are paying a fair price at the checkout. Let\u2019s not forget, as I\u2019ve mentioned, that even in the most conservative estimate of the Commerce Commission in their recent study, the major grocery retailers are earning excess profits of a million dollars a day. Now, those are beyond the ordinary profits you\u2019d expect. It\u2019s a commercial enterprise; they should be able to invest and receive profits. These are the excess profits\u2014a million dollars a day they are taking each and every day, over and above a reasonable profit, out of ordinary, everyday Kiwis\u2019 pockets. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000383\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EThis is simply too important an issue not to get right on behalf of consumers. So, by introducing this bill under urgency, the Government will address the most straightforward part of the reforms quickly. It also signals Government\u2019s desire to see new competitors enter the sector. It gives any new competitors that want to arrive in New Zealand and want to then expand the surety that they will not be subject to bans on how they can use prime sites in different districts that up until now may have been blocked for a competitor to use to bring competition to the market. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000384\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EI will be bringing further legislative reforms to Parliament for consideration later this year. I propose that the bill be referred to the Economic Development, Science and Innovation Committee with a shortened process of one month. This will enable any unforeseen consequences in the drafting of the amendments to be considered. So this bill, as I close, takes a first major step forward in salvaging our broken grocery sector. We take a stand to end the anti-competitive land wars brought about by restrictive covenants. And, for that reason, I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u0022604b08910f53414abf829b3adbe0b188\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000385\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022604b08910f53414abf829b3adbe0b188\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: The question is that the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022 data-id=\u002201ab123f7b754c3f97bfb11e055c71e8\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000386\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002201ab123f7b754c3f97bfb11e055c71e8\u0022\u003EANDREW BAYLY (National\u2014Port Waikato) (remote):\u003C/span\u003E Kia ora. Thank you, Mr Speaker. It\u2019s a pleasure to be talking on this Commerce (Grocery Sector Covenants) Amendment Bill. The first thing I\u2019m going to say is that National will be supporting this bill. As the Minister has identified, this bill has come as a result of the review by the Commerce Commission into the food sector. The upshot of the Commerce Commission\u2019s finding was that there was less competition in the retail grocery sector than otherwise should be the case and it was also hard for competitors wanting to enter the market or to expand, in the fact that they were facing extra barriers or challenges. So the report from the Commerce Commission, which came out just a few months ago, was very enlightening and helpful, and obviously this is one of the key elements of it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000387\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003EI think, in the context of what\u2019s been happening in New Zealand, we\u2019ve got a living costs crisis, escalating prices of food\u2014not always through a lack of competition, of course; some of it\u2019s come about through a range of factors like supply issues but also largely the Government\u2019s own making with some of the policies they\u2019ve imposed on businesses across New Zealand, particularly around the way that they can employ labour. So it is a combination of factors that have led to rapidly rising food prices for New Zealanders. That, of course, is hurting virtually everyone in New Zealand, and is so damaging, particularly to the more vulnerable people of New Zealand who don\u2019t have as much income, or are on a fixed income.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000388\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003ESo, yes, we agree with the changes. Our strong view is that the recommendations from the Commerce Commission should be implemented, and that means, first of all, supporting this bill, which is about ensuring land is not subject to restrictive covenants, but also ensuring that the mandatory code of conduct is appropriate and in force. Obviously, there\u2019s a process to establish codes of conduct, which is common overseas and particularly in places like England. We want to make sure that there is an appropriate code of conduct that protects suppliers and also people who are wanting to enter that market, and that there are good relationships and we do not see undue practices. There are some issues, particularly around supply arrangements, that need to be dealt with so suppliers have fair access and appropriate access and are not subject to these undue practices.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000389\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003EThe other one is we want to make sure that consumers have greater information on products and their pricing, and that was part of the Commerce Commission\u2019s recommendation. The final key recommendation\u2014although there are other subsidiary recommendations\u2014is the establishment of a grocery sector regulator. And we want to make sure that that regulator is well resourced and effective in monitoring the sector so we get as much competition as possible.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000390\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003ESo this bill deals with one aspect of those recommendations, which is making sure that land is not unduly subject to restrictive covenants. In the work of the Commerce Commission itself, it noted that there are about 90 covenants that they identified. I think the big issue for us, and this will be one of the questions that we will be wanting to explore in the select committee stage, is how do we identify them, how are these restrictive covenants identified. And whilst the bill seeks to make sure that the undue restrictive components are not enforceable, it also gives rise to how those agreements, if they need to be renewed\u2014what is the compensation, if there\u2019s any clause around that. All those sort of legal issues need to be explored and dealt with under the select committee process.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000391\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003EWe also note that there\u2019s actually been no analysis of the impact of removing these covenants, other than by the Commerce Commission, and there\u2019s no report in the accompanying documentation that I\u2019ve seen to support the restrictive covenants. So I think the Minister\u2019s approach is correct, but this is just one element. And if we think this is the panacea for fixing up the supermarket trade in New Zealand, that is not the case. I would urge that we move forward on these other aspects, because we want to make sure that New Zealanders get access to food at reasonable prices. And the types of products, and the transparency around how they\u2019re produced and their pricing arrangements is the most important thing at a time when we\u2019ve got a cost of living crisis in New Zealand.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000392\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003ESo we will be supporting it. Slightly disappointed that the select committee process is so truncated, but let\u2019s hope we get good submissions during that process so we can move to a resolution on this matter. Thank you very much, Mr Speaker.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022 data-id=\u0022370abf9249764ea48910d4734c71e819\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000393\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022370abf9249764ea48910d4734c71e819\u0022\u003EJAMIE STRANGE (Labour\u2014Hamilton East):\u003C/span\u003E Mr Speaker, thank you for an opportunity to take a brief call on this bill. I\u2019d like to begin by acknowledging the Minister, the Hon David Clark, for extending a listening ear to New Zealanders. He has certainly heard that some people are struggling with the cost of living and inflation pressures; and, as a Government, he\u2019s taking a lead in this area to bring about some changes. I\u2019d also like to acknowledge the contribution of the previous member\u2014a very thoughtful contribution from Andrew Bayly\u2014and I acknowledge the support of the National Party, and I hope that other parties will also support this bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000394\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022\u003EThe Commerce Commission report into the retail sector, as the Minister outlined, clearly identified some issues around a lack of competition. New Zealand is a very small market, and in a small market it is common to have areas where there is a lack of competition and where it tends towards monopolistic, or a duopoly, behaviour, which, in this case, we have seen in a very small market. We have struggled to attract overseas investment to New Zealand in this area, and this piece of legislation will certainly have an impact in that area. I was particularly pleased to hear what the Minister was saying in terms of his desire to see more competitors in this market in order to bring down grocery costs.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000395\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022\u003ESo look, as this fits into the wider Budget, this is a Budget in terms of listening to New Zealanders and responding to the needs of New Zealanders both now and into the future. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022 data-id=\u002291da9839774740788649efeefe236eec\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000396\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002291da9839774740788649efeefe236eec\u0022\u003ESIMON WATTS (National\u2014North Shore):\u003C/span\u003E Well, as we\u2019ve heard this morning, we\u2019re going to be supporting this bill. While we\u2019ve obviously got a number of concerns in terms of this bill, obviously the select committee process will work through those.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000397\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EI, myself\u2014big supporter, in terms of New Zealand - owned businesses. We can\u2019t underestimate the fact that, actually, a number of our grocery sectors are 100 percent New Zealand - owned, and attacking Kiwi-owned businesses is not in the DNA of where I want to be. When you say that we need more competition and you bring in overseas providers to strip profits out of New Zealand, I do think we need to consider that.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000398\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003ESo I\u2019m really looking forward to a robust select committee process on this bill, getting a lot of perspective from a lot of stakeholders, and I\u2019m sure we\u2019ll work through the detail. Thank you very much, Mr Speaker. We support this bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022 data-id=\u00225a037b5a565749faac4e081da09d41e2\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000399\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00225a037b5a565749faac4e081da09d41e2\u0022\u003EGLEN BENNETT (Labour\u2014New Plymouth):\u003C/span\u003E Kia ora, Mr Speaker. I rise in support, and it\u2019s always encouraging to hear my colleagues across the floor supporting this as well. As the MP for New Plymouth, I know this too well. In fact, in my own suburb of Marfell and of Westown, this is actually an experience in terms of the two supermarkets fighting it out. The Hon David Clark talked about those supermarket wars, and we saw that in my very own suburb a number of years ago when one of the main chains bought out a piece of land and pretty much drove the other supermarket to move and build in a place out of our suburb. So, suddenly, us up in Westown and Marfell had no supermarket to go to. We had to drive, and for many people in my community, driving wasn\u2019t an option. They may not have owned a vehicle, or they may have had limited access to public transport. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000400\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022\u003EAs the Minister spoke about earlier, good quality services are about price, about quality, about range, and about service. And so this piece of legislation is going to support that, because in many of our communities around Aotearoa, it is actually about accessing those supermarkets. What happened in my community was there was a small corner store where the price of a tin of baked beans was five or six dollars, or a roll of toilet paper came singularly and was very expensive because they didn\u2019t have access to services. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000401\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022\u003ESo this is a good piece of legislation. This is moving it forward because we need to get this right, and as a member of the Labour Party, our commitment in the last election is around ensuring that customers have fairer prices at the checkout. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e122e0e6-61c6-4d17-9a79-6ad2ac7d127e\u0022 data-id=\u00229fb0d0db4c6744628383e9dbc6b5a1ad\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000402\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e122e0e6-61c6-4d17-9a79-6ad2ac7d127e\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00229fb0d0db4c6744628383e9dbc6b5a1ad\u0022\u003EHon EUGENIE SAGE (Green):\u003C/span\u003E T\u0113n\u0101 koe, Mr Speaker. Thank you. The Green Party is also supporting the Commerce (Grocery Sector Covenants) Amendment Bill. We support it because it is going to stop supermarkets from engaging in anti-competitive behaviour by putting restrictions on land to prevent their competitors buying up those sites, or dictating the terms of leases in shopping malls and shopping centres where they, as a major anchor tenant, might dictate that that mall cannot have similar businesses, like butcheries or bakeries, or can\u2019t have another supermarket on the premises.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000403\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e122e0e6-61c6-4d17-9a79-6ad2ac7d127e\u0022\u003EI really congratulate the Minister, firstly, for getting the Commerce Commission to do that market study of the retail grocery sector, and then moving so quickly to implement one of its key recommendations\u2014and promising more action. Because, as the Commerce Commission noted, we\u2019ve got a duopoly here, with some other operators on the fringes. I think, as Mr Bayly noted, that they, in their study, found that there were more than 90 of these restrictive land covenants to prevent rivals opening up stores on that land. Around 60 of these had a term of 20 years or more\u2014they\u2019re largely in Auckland, Wellington, and Christchurch. Similarly, with the exclusivity covenants\u2014there are around a hundred of those being included in lease contracts. So those are definitely anti-competitive.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000404\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e122e0e6-61c6-4d17-9a79-6ad2ac7d127e\u0022\u003EWhen New Zealanders spend $22 billion annually on groceries in supermarkets and grocery stores across the country, we\u2019re talking about a big tranche of money and a million dollars a day, as the Minister mentioned, in profits for the supermarkets. So anything that\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000405\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022ca2f688a7d4c40c8a830429fe2eac8ba\u0022\u003EHon Dr David Clark\u003C/span\u003E: Excess profits.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000406\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e122e0e6-61c6-4d17-9a79-6ad2ac7d127e\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002245231b2bc8e64ca9b6ec2c1bf8661bac\u0022\u003EHon EUGENIE SAGE\u003C/span\u003E: Excess profits. Even though this law is retrospective\u2014because it applies to covenants which exist at the moment\u2014and that\u2019s not something the Green Party would normally support; if it wasn\u2019t retrospective, then the bill would have little effect.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000407\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e122e0e6-61c6-4d17-9a79-6ad2ac7d127e\u0022\u003EWe also note we\u2019ve got some concerns over the shortened select committee process, but that there has been consultation by the Commerce Commission\u2014it got the big grocery retailers to comment on its draft report before it was released. So there has been some consultation on the principles around this bill before it was introduced.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000408\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e122e0e6-61c6-4d17-9a79-6ad2ac7d127e\u0022\u003EThe Commerce Act, under Part 2 and restrictive trade practices, already has provisions which prevent anti-competitive practices. So by bringing these restrictive covenants\u2014the land covenants and the exclusivity covenants\u2014within the scope of Part 2, then the whole panoply of the Commerce Act, and the enforcement measures, and those prohibitions will apply to them.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000409\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e122e0e6-61c6-4d17-9a79-6ad2ac7d127e\u0022\u003ECertainly, there have been, in the Resource Management Act (RMA) since about 2009, provisions which seek to prevent the supermarkets using trade competition as an argument, in their submissions against a land-use consent and related consents, when a competitor seeks to get those from council. But the courts have allowed a bit of discretion there, in terms of that. They certainly exclude the direct effects of trade competition in terms of the RMA process, but they have considered some of the flow-on significant retail distribution effects. So the RMA, as a planning tool, has not been effective in preventing these restrictions on competition, which is why we need these changes to the Commerce Act.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000410\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e122e0e6-61c6-4d17-9a79-6ad2ac7d127e\u0022\u003EThe Commerce Commission, in its report, also suggested changing the Overseas Investment Act to make it easier for an overseas operator to come in. As with the previous speaker from the National Party, I have some concerns about that. The fact that we have Foodstuffs\u2014for example, it is a cooperative and has New Zealand operators. That is one benefit. Having overseas operators enter the market\u2014like Costco is doing\u2014certainly, that may lead to cheaper prices for consumers but it means, of course, that the profits go offshore. So it\u2019s not something that we should encourage.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000411\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e122e0e6-61c6-4d17-9a79-6ad2ac7d127e\u0022\u003EI note, too, that there\u2019s going to be some monitoring of land banking. Even if these restrictive covenants and exclusivity covenants are outlawed, if supermarkets buy land, because they\u2019re planning long term, and sit on those sites without any real intention of opening a store there\u2014that is also potentially reducing the ability of other entrants into the market. And it was making it easier for other entrants to get in and for existing competitors to expand their networks that the Commerce Commission was concerned about.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000412\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e122e0e6-61c6-4d17-9a79-6ad2ac7d127e\u0022\u003EWhen similar measures to these were introduced in Australia\u2014I think it was the ALDI chain went from less than 200 stores to more than 500 stores. So these types of measures have been shown to be effective elsewhere. The Green Party supports this bill, while having concerns about the truncated select committee process, because all legislation benefits from public submissions and good, comprehensive select committee scrutiny. Thank you.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022 data-id=\u00229f6662b22adb4ddd8191a2907098448e\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000413\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00229f6662b22adb4ddd8191a2907098448e\u0022\u003EDAMIEN SMITH (ACT):\u003C/span\u003E Thank you very much, and to the Minister, thank you, too. This bill is meant to stop major supermarkets blocking competitors from accessing land for new stores, and has been introduced to the House. It amends the Commerce Act 1986, banning restrictive covenants in land and exclusive covenants of leases. It also makes existing covenants unenforceable. The legislation stops supermarkets from engaging in anti-competitive behaviour, what they\u2019ve called \u201Cland wars\u201D, where they buy up land or dictate the terms of the lease to block competitors from getting a foothold in the area. But Ponsonby is probably not the best example. I mean, you go to Dargaville and it\u2019s been known that it\u2019s taken years and years and years to develop the complex that exists there. So, regionally, there are some differences to metro urban areas. Also, the bill is supposed to promote an even playing field for new competitors to enter the market. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000414\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ESo lifting supermarket covenants is a step forward towards creating an environment where new operators can take on the big players, but it doesn\u2019t address the challenges for taking on new competitors and for new players in the sense of, has this happened too late? And what\u2019s left out there for rivals to actually develop? I look forward to exploring that and getting clarity on that in the process that we will go through with the select committee. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000415\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EIn some respects, the bill is flawed. For instance, there\u2019s nothing to stop anyone else, including big box overseas grocery chains like Costco or ALDI from setting in place similar covenants. Unless the Commerce Commission recommends new retailers to be included in the ban and the Governor-General signs it off, this new law only applies to two existing supermarket chains. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000416\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002247b37603b84a4e919035158d9c75a1c9\u0022\u003EHon Dr David Clark\u003C/span\u003E: It\u2019s explicit that that\u2019s provided for. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000417\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022f9cf21cd0e4c46c89737c5770da528ae\u0022\u003EDAMIEN SMITH\u003C/span\u003E: Can I just finish my speech, Mr Clark. To be clear: these land covenants and exclusivity provisions and leases are harsh, not competitive, as has been reported in articles on their anti-competitive use at Highland Park and Prebbleton, as an example. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000418\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EThe Commerce Commission and the supermarket chains have agreed this should put an end to the practice that\u2019s put competitors off and stopped small, locally owned butchers and bakers and greengrocers that should be at the heart of our communities from opening anywhere near the big supermarkets. If you want to open up a mega butcher store with a fruit and vegetable side to that, then rights are duplicable. So those are some of the aspects that the Minister will be glad to know that at first reading here we are supporting this bill, with reservations. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000419\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00228c4979de41b745519caae456101ca018\u0022\u003EHon Dr David Clark\u003C/span\u003E: Hear, hear. Very good, thank you.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000420\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022892c35e8e3804cbfa52931e83df7fc61\u0022\u003EDAMIEN SMITH\u003C/span\u003E: Thank you. But we would like to iron out some of these details and make sure that there\u2019s a level playing field and it\u2019s not anti-competitive. We are absolutely sure that there are still places in this country for this to take effect. As JLL said, we want to grow and assist new chains developing, but we have to be certain that legally there are rivals out there who will want to develop. You know, it\u2019s pretty simple. It\u2019s a commercial enterprise. They take risk on the market. They do the demographics. They look at the amount of people that are spending. They try and second-guess the supermarket chains and they also have no special rights with councils or developers to be there or not be there. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000421\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003ESo, in conclusion, the key question is: what is out there for rivals still to develop? And is this bill too late or will it make a difference in terms of supermarkets and helping that be competitive on prices? Because those are two separate issues. You can put a supermarket somewhere and you put it next to somewhere, but if you\u2019ve got two of them\u2014it\u2019s like a cinema chain\u2014it usually grows the market for usage, but will that actually create pricing and purchasing power for the consumer? So, on that note, we would like to support the bill at the first reading, with reservations, and get all those questions answered through the committee.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000422\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000423\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EBill read a first time. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u00226bb1d1f52f7646a48053ea30f31a5d82\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000424\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226bb1d1f52f7646a48053ea30f31a5d82\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: The question is, That the Commerce (Grocery Sector Covenants) Amendment Bill be considered by the Economic Development, Science and Innovation Committee.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000425\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000426\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003EBill referred to the Economic Development, Science and Innovation Committee.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000427\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u002204b3573c602847898ee747a4c210d6c2\u0022\u003EInstruction to the Economic Development, Science and Innovation Committee\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022 data-id=\u00223251fcc014a14d7ab54a0d1080a93e71\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000428\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00223251fcc014a14d7ab54a0d1080a93e71\u0022\u003EHon Dr DAVID CLARK (Minister of Commerce and Consumer Affairs):\u003C/span\u003E I move, That the Commerce (Grocery Sector Covenants) Amendment Bill be reported to the House by 16 June 2022 and that the committee have authority to meet at any time while the House is sitting except during oral questions, during any evening on a day on which there has been a sitting of the House, and on a Friday in a week in which there has been a sitting of the House and outside the Wellington area despite Standing Orders 193, 195, and 196.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000429\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EI consider that there is urgency\u2014just by way of reason\u2014in addressing competition in the grocery retail sector. It is a key driver of the price, quality, and range of grocery services offered to New Zealanders, because high grocery prices contribute to food insecurity, particularly for lower-income New Zealanders. By rapidly considering the bill, the Government is clearly signalling our intention to improve competition and outcomes for consumers.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000430\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EIt\u2019s a very discrete element of the reform programme. It can be dealt with reasonably quickly. Exclusive and restrictive covenants will be prohibited immediately once the bill comes into effect. I anticipate the competitors will begin to consider new sites shortly thereafter.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000431\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EIt is well-considered. The major grocery retailers have already signalled that they intend to remove restrictive covenants. In fact, Foodstuffs North Island has already removed\u2014it\u2019s stated publicly\u2014over half of its restrictive covenants.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000432\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EBut it is important to get right. That\u2019s why we are recommending this go to a shortened select committee process, to address any loopholes that might inadvertently prevent a competitor from accessing land for new stores. Following the select committee\u2019s report back, I intend to pass this bill swiftly thereafter.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000433\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003ESo it\u2019s relatively straightforward, it can be progressed within a shorter time frame, it\u2019s a discrete proposal, and it situates the change in the Commerce Act under \u201CRestrictive trade practices\u201D, which means that the changes are nestled within existing process, remedies, and compliance measures, which the sector is familiar with and have all been well-tested.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u0022f28ec235b2d748c5a720e10380a2354e\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000434\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f28ec235b2d748c5a720e10380a2354e\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: The question is that the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022 data-id=\u00222886b19bf3be4c8196c193b27a1b4e77\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000435\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00222886b19bf3be4c8196c193b27a1b4e77\u0022\u003EDAMIEN SMITH (ACT):\u003C/span\u003E The process for a select committee is absolutely essential, and the questions that we pose from the ACT Party absolutely are fundamentally necessary for the protection of businesses in New Zealand and new entrants to New Zealand.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000436\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a97e1705-20b1-4844-8140-1090426c1397\u0022\u003EWe would like that full process to be honoured in the select committee and to take the time to get this right. We would like to make sure that this process isn\u2019t just used as a legal tool; that it\u2019s actually used as a tool that the industry understands and we expect submissions from the industry.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u00221f0c213c4aae46089f6fb9a496d46ae3\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 65\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 54\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; Green Party of Aotearoa New Zealand 10; ACT New Zealand 10; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022\u003EBills\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000437\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u00221435355cd0334050842728af5af26c59\u0022\u003ECompanies Office Registers Funding Validation Bill\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000438\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u002284e542eb46374cccb0543838b950ec39\u0022\u003EFirst Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022 data-id=\u002275da886ca4c9478abddf44501ffe3e8d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000439\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002275da886ca4c9478abddf44501ffe3e8d\u0022\u003EHon Dr DAVID CLARK (Minister of Commerce and Consumer Affairs):\u003C/span\u003E I present a legislative statement on the Companies Office Registers Funding Validation Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000440\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d9f2da9e5b044ddca84b0d9da21230f3\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: That legislative statement is published under the authority of the House and can be found on the Parliament website.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000441\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b14ca7f97e6b4edcb0b7d2ed0963cf7e\u0022\u003EHon Dr DAVID CLARK\u003C/span\u003E: I move, That the Companies Office Registers Funding Validation Bill be now read a first time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000442\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EThis bill validates the past collection and use of fees by the New Zealand Companies Office. In a few moments, I\u2019ll say more about the bill and how it supports the Government\u2019s plan to improve the way our Companies Office is funded, but first I would like to explain to the House the background to the Government\u2019s intention to introduce this bill and for it to pass through all stages under urgency. The context is important to understand why the Government is taking decisive steps, and I want to be transparent and open in the House.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000443\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EOur Companies Office has been a critical part of New Zealand\u2019s society and economy for many years. It\u2019s well-known that the Companies Office maintains a register of companies operating in New Zealand that contains important information about businesses and makes this information accessible to the public. The Companies Register therefore builds trust and confidence in the economy, helping to make New Zealand a transparent, fair, and easy place to do business. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000444\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EIt\u2019s probably less well-known that the Companies Office also has responsibility for maintaining 15 other registers that support economic and community activity in New Zealand. As well as companies, it registers other entities including incorporated societies, retirement villages, and limited partnerships. The Companies Office also maintains lists of licensed auditors and insolvency practitioners, and it maintains registers for disclosure of financial products and security interests over personal property. All of these registers have information that is searchable by the public. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000445\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EThe role of the Companies Office has evolved over time. It\u2019s taken on more and varied responsibilities across our economy and community. At the same time, it has had to evolve to keep up with new and emerging information technology. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000446\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EDuring the course of a routine fees review last year by the Companies Office, it came to light that there was a mismatch between the primary legislation governing the Companies Office and the registers and their fees, and the Companies Office actual funding practices. The Government recognises that this is a problem that needs to be resolved. The problem has arisen in circumstances where the primary legislation was based on there being 16 separate registers. However, that doesn\u2019t reflect the reality that the modern Companies Office administers a registry system with 16 different interconnected registers. They\u2019re all housed within what we call the Companies Office and to a varying degree they share infrastructure, technology solutions, staff, know-how, and other resources. Indeed, the same individual is currently the registrar for all of the registers except for the New Zealand Business Number Register. That set-up has in turn made it difficult for the Companies Office to keep the costs of running the registers entirely separate. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000447\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EAnother issue is that some of the smaller registers maintained by the Companies Office have not been recovering enough in fees for those registers to be fully self-funded. So to fill these gaps, the Companies Office has used surplus funds it\u2019s received in fees from the users of other registers to make up shortfalls, not realising that that cross-subsidisation was not consistent with the legislation itself. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000448\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EFor something of a time line, just for the benefit of the House, it\u2019s clear that the funds have been moved between registers since at least the formation of the Ministry of Business, Innovation and Employment in 2012\u2014obviously, decisions were taken then about how things were done\u2014but it seems likely that it\u2019s been occurring for some time far longer. In 1995, the Companies Office started using a memorandum account, and that memorandum account shows surplus and deficits. There\u2019s only one memorandum account for the whole Companies Office, rather than for each register, so any surpluses collected by the Companies Office or any of its registers has been in this memorandum account since 1995. That suggests that the separation of funds register by register intended by Parliament has not been happening since then. Originally, any surpluses showing in the memorandum account were returned to the Crown at the end of each financial year, but in 2011 that practice changed when surpluses began being managed internally. The issue came to light in 2021, when the Companies Office undertook a review of fees of all of its registers at the same time. In doing so, it became apparent that the Companies Office practices did not match with the legislation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000449\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003ESo last year, the Government allocated $3.7 million to alleviate the cross-subsidisation issue in the immediate term, and with this legislation we\u2019re taking the first step to further resolve these issues\u2014that\u2019s with this validation bill. I say that\u2019s only the first step because the Government also plans to introduce another bill to Parliament to allow for the introduction of levies that can be used across the 16 registers that the Companies Office operates: the Companies (Levies) Amendment Bill. That will lead to more appropriate and less siloed funding for the 16 registers and any new registers that are created in the future, so it will give the flexibility to do what makes sense in practice. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000450\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003ENow, it\u2019s possible, obviously, that talking about two distinct bills may be a source of confusion, so, just to be clear, I think it\u2019s helpful for members, to distinguish between the two bills, to remember that the bill before us now, the validation bill, looks backwards. It\u2019s a retrospective bill. It fixes what\u2019s happened in the past. The second bill, by contrast, that is yet to come, the Companies (Levies) Amendment Bill, looks forward and allows for Companies Office users to be charged levies to help pay for the corporate registry system that they share.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000451\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EI hope to introduce that second bill to the Parliament before too long, and I\u2019ll ask for it to be referred in due course to the Finance and Expenditure Committee for a full select committee process\u2014certainly four months. That will give the public an opportunity to submit on the reforms that we legislate for, so that will be a full process. Companies Office users will be able to participate in that select committee process and also in a consultation in relation to regulations that will then be made under that bill. The consultation document will go through who should pay for the levies, how much the levies should be, and the underlying analysis for those levy proposals. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000452\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EI\u2019m seeking to take this validation bill through all stages under urgency. That\u2019s for two main reasons. First, it will allow the Companies Office to use its existing surplus funds to cover shortfalls on registers while we put the long-term funding plan in place, and that\u2019s important, otherwise we would have to inject more Crown funding into the Companies Office or immediately raise fees, which, for example, for an incorporated society would mean raising fees immediately by $200, I think\u2014$200? I\u2019m now not certain of that. Several hundred, in any case. Many societies, of course, are not-for-profit entities doing good things in the community, so we don\u2019t want to do that without a full and appropriate process.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000453\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EThe second reason is that if we went through a normal statutory process, we\u2019d leave the Crown open to uncertainty and risk that comes with that, including that some of the past money collected as fees may need to be refunded, and while that\u2019s likely to be extremely modest sums, the cost of administering a complex regime to work out who would be owed what retrospectively, where they live now, who\u2019s responsible for an incorporated society, who was then\u2014you can imagine that the cost of the bureaucracy involved would be likely to be unreasonable and outweigh any benefits that might accrue to individuals. I don\u2019t think people in this House would want that, particularly when nobody has raised any concerns about the way it\u2019s being run currently. That just wouldn\u2019t make sense. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000454\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003ESo, to move forward, we\u2019re drawing a line under these possibilities here in urgency and are looking forward to the future with a new, modern, and streamlined funding regime for our Companies Office. So I commend this bill to the House. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u0022302271b67a4f4149beb379c813fd2fc9\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000455\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022302271b67a4f4149beb379c813fd2fc9\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: The question is the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022 data-id=\u0022e8884eaa36c449fc8fa3e8efc47f97a2\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000456\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022e8884eaa36c449fc8fa3e8efc47f97a2\u0022\u003EANDREW BAYLY (National\u2014Port Waikato) (remote):\u003C/span\u003E Thank you, Mr Speaker. It\u2019s a pleasure to be talking on the Companies Office Registers Funding Validation Bill. We will be supporting this bill because, as the Minister has quite rightly pointed out, it\u2019s dealing with an issue of inappropriate use of funds and how they\u2019ve been applied across a number of registers, which I\u2019ll talk about in a minute. I do want to acknowledge the Minister for bringing the matter to our attention prior to introducing this bill. So having an understanding about this, I think bipartisan support across the House is an important thing at times, even if it\u2019s a very short notice around when you receive it, but at least gaining an understanding of why we\u2019re doing things like this. And I do want to acknowledge the Minister on that behalf.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000457\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003EThis bill, as the Minister quite rightly said, is dealing with an issue across subsidisation undertaken by the Companies Office. Effectively, there\u2019s been amounts that have been charged too much in one or two registers administered by the Companies Act, which has meant that in other registers there have been an underfunding, or an undercharging, of people using those registers. As the Minister said, there are 16 registers that are affected. They are wide-ranging in terms of different registers. There\u2019s the incorporated societies register, the financial service providers register, limited partnerships, disclosure register, auditors register, retirement villages register, friendly societies and credit unions register. So, that\u2019s not an exhaustive list but it\u2019s certainly a number of the registers that have been affected.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000458\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003ESo this bill, as the Minister says, does two things. One is it stops the potential of people saying, \u201CLook, you can go to charges previously and it is inappropriate, even though they\u2019re modest amounts.\u201D So we clear the backlog of this and also just make sure that we\u2019ve got an appropriate basis going forward.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000459\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003EIn terms of the new bill that the Government\u2019s proposing to bring in, the Companies (Levies) Amendment Bill, which, obviously, we haven\u2019t seen, I\u2019m glad that it\u2019s going to be subject to full scrutiny, because, as the Minister just said, that means that the element of cross-subsidisation between registers will be permitted under the new bill that the Government is proposing to bring in. That\u2019s going to lead to a healthy debate, because the principle generally is that funding and charging should represent the service and no more and, obviously, no less. And what has happened is that hasn\u2019t occurred under this arrangement. The use of the term \u201Cmemorandum account\u201D is one where, effectively, all the surpluses and losses, whatever, are accounted for in one account. It\u2019s what\u2019s meant by the words \u201Cmemorandum account\u201D. And to then apply that back up into the Companies Office that administers 16 different registers, that\u2019s going to lead to a healthy conversation and debate, whether in fact that is appropriate, because that starts to cut across principles of charging of Government services.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000460\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003EBut this one we will support. It needs to be done quickly and appropriately. Thankfully, there\u2019s not large sums of money involved in it, and I think it addresses an issue that has been longstanding. So, on that basis, I\u2019m happy to see it proceeding through the House today.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022 data-id=\u0022dc1a03d8f09545008bb691a30036a499\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000461\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022dc1a03d8f09545008bb691a30036a499\u0022\u003EJAMIE STRANGE (Labour\u2014Hamilton East):\u003C/span\u003E Thank you, Mr Speaker. Delighted to take a very short call on the Companies Office Registers Funding Validation Bill. I\u2019d like to acknowledge the Minister, the Hon David Clark\u2014a very busy, hard-working Minister, bringing multiple pieces of legislation to the House; doing an excellent job. I\u2019d like to acknowledge the support of the National Party and echo the words of the previous member. The previous member, Andrew Bayly, spoke about, you know, with bills it\u2019s important that we do work hard to get a consensus across the House. So I\u2019ll be watching with interest in terms of the further speakers, hoping for support.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000462\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c2e823af-22b7-4411-8b12-14d7b43680ea\u0022\u003ESimply put, the Companies Office has collected and used money in a way that was not intended by Parliament when it passed the Act. It is clear that this has been occurring at least since the formation of Ministry of Business, Innovation and Employment in 2012, but it is likely to have been occurring for some time longer. I\u2019m very pleased to see the Minister bring this bill to the House in terms of rectifying the situation we have. I commend it to the House. Thank you.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022 data-id=\u00220d35028808b14a18b0acdf72d08b173d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000463\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220d35028808b14a18b0acdf72d08b173d\u0022\u003ESIMON WATTS (National\u2014North Shore):\u003C/span\u003E Thank you very much, Mr Speaker, and I rise as the member of Parliament for North Shore and as a member of the National Party in support of the Companies Office Registers Funding Validation Bill. I join with prior speakers to acknowledge the Minister for working proactively with the Opposition in order to have discussions before this bill was brought to the House. That is appreciated and is representative of a good process and, in this case, a bill that is going to deal with some significant issues. National supports this bill, and we\u2019re looking forward to seeing it pass its way through this House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002202e74c40-9529-4e15-adc2-c032eadc2205\u0022 data-id=\u0022a45bc66862574990b5f7fff81b85169d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000464\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002202e74c40-9529-4e15-adc2-c032eadc2205\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022a45bc66862574990b5f7fff81b85169d\u0022\u003EGREG O\u2019CONNOR (Labour\u2014\u014Ch\u0101riu):\u003C/span\u003E Thank you, Mr Speaker. This bill could well be called \u201CThe Economies of Scale Bill\u201D, because that\u2019s simply what it\u2019s doing.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000465\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002202e74c40-9529-4e15-adc2-c032eadc2205\u0022\u003EWe have all these different registers, it was envisaged they would all collect their own money, have their own bureaucracy around it, and have their own little jam jars to store it. That wasn\u2019t what occurred and it shouldn\u2019t have been what occurred.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000466\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002202e74c40-9529-4e15-adc2-c032eadc2205\u0022\u003EWe\u2019ve now got the economy of scale of probably one set of accounts around these, and it just means that now, instead of the extra funding going with each of those different registers, we can now take a common-sense approach and, of course, have the retrospectivity on this to make sure that anyone alerted that might take some mischief or try to place a mischief with will be prevented from doing so.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000467\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002202e74c40-9529-4e15-adc2-c032eadc2205\u0022\u003ESo a very sensible piece of legislation, good to see the support around the House, and I commend it.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022489d736b-2629-4bc7-8d38-6319c7797a33\u0022 data-id=\u002208cbfa0c7e324d989676a4df184a479c\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000468\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022489d736b-2629-4bc7-8d38-6319c7797a33\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002208cbfa0c7e324d989676a4df184a479c\u0022\u003EMARK CAMERON (ACT):\u003C/span\u003E Thank you, Mr Speaker. The ACT Party will be supporting the Companies Office Registers Funding Validation Bill. Thank you, Mr Speaker, for the opportunity to speak on this first reading of this bill. As one might appreciate, this piece of legislation is well outside my normal port of call. That being said, I will endeavour to offer a fair and balanced contribution for those that seek clarity of how this bill will affect them.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000469\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022489d736b-2629-4bc7-8d38-6319c7797a33\u0022\u003EThe bill, as written, is an omnibus bill, and it will amend 13 Acts to retrospectively validate fees that have been collected under those 13 Acts and that have been and will be applied under any register administered by New Zealand\u2019s Companies Office. This bill, as written, amends those 13 Acts. I could go through the full 13 Acts this bill seeks to amend and quote them verbatim, but as I\u2019m cognisant of time and as I am aware that some of my parliamentarian colleagues will be wishing to share their contributions\u2014equally, perhaps, not as well versed as I in this area, or more\u2014so I\u2019ll keep my comments moderately short. However, for the benefit of some of my colleagues that are like me that may want to be more intimately versed in this legislation, here are some examples that the legislation addresses: the Companies Act 1993, the Financial Markets Conduct Act 2013, the Friendly Societies and Credit Unions Act 1982, and several others.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000470\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022489d736b-2629-4bc7-8d38-6319c7797a33\u0022\u003EOver time, the Companies Office has moved towards providing shared services to the registers and has allowed the Companies Office economies of scale in the delivery of registry services and to leverage technological developments, this enabling registry services to be centralised and shared across registers. Over time, these changes have reduced cost to users, but, unfortunately, this has made it increasingly difficult to distinguish between the costs of providing services to each register. Equally, the fees charged for some small registers have not managed to keep up with the cost of operating them. The shortfall was met with a surplus from fee collections for other registers. This practice is not authorised in legislation.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000471\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022489d736b-2629-4bc7-8d38-6319c7797a33\u0022\u003EIn essence, the bill addresses the Companies Office practice of applying funds collected in fees not in the scope of current legislation and does this by retrospectively validating the Companies Office charging and expenditure practices. The crux of this bill addresses that shortfall and will enable the Companies Office to use the surpluses it has collected to fund anticipated shortfalls on certain registers while a new, unified funding regime is established. In short order, it provides for a lawful basis of funding shortfalls while reforms in the Companies (Levies) Amendment Bill are implemented. The regulatory impact statement produced by the Ministry of Business, Innovation and Employment suggests various options of how best the legislation could be worked through and compared to those counterfactual. After reading through these, the ACT Party found that the option that had streamlined accounting practices\u2014compared to the counterfactual\u2014would avoid additional costs to regulators and regulated groups. It was certainly the most practical way to address the underlying issues needed in the proposed bill. There were some concerns under the current fees-setting provision that the cost of providing a shared service for each register is recovered from fees charged to the users of that register, this because the unit cost of each register depends on the total number of entities registered. Users of an identical shared service can be charged materially different fees for what is fundamentally the same service, this, of course, depending on how many users of the register there actually are.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000472\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022489d736b-2629-4bc7-8d38-6319c7797a33\u0022\u003EHowever, on balance, with full consideration given to the benefits and the potential cost, the ACT Party believes this bill should go through the necessary legislative scrutiny and further debate in this House to iron out any discrepancies or unintended consequences in the bill as currently written. The ACT Party does support this bill, and we look forward to the contribution of other members in the House. Thank you, Mr Speaker.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002258f935f1-6646-40ab-9d99-17029396850c\u0022 data-id=\u00226f7b7928585a48b3a9f0eea85eb8bb66\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000473\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258f935f1-6646-40ab-9d99-17029396850c\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226f7b7928585a48b3a9f0eea85eb8bb66\u0022\u003EHon JULIE ANNE GENTER (Green):\u003C/span\u003E T\u0113n\u0101 koe, Mr Speaker. T\u0113n\u0101 koutou e te Whare. I\u2019m taking a very short call on behalf of the Green Party. We are supporting this bill. As all the other speakers have already mentioned, the rationale for it\u2014there were some mistakes made in terms of the ways the Companies Office has collected and used money that was not intended by Parliament when it passed the original Act, and this needs to be cleaned up. So the Green Party is going to be supporting this bill. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022 data-id=\u0022d7c2b02673744c49ac034e3aa79844fc\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000474\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022d7c2b02673744c49ac034e3aa79844fc\u0022\u003EGLEN BENNETT (Labour\u2014New Plymouth):\u003C/span\u003E Kia ora, Mr Speaker. I rise to take a call on the Companies Office Registers Funding Validation Bill. I want to thank the Hon Dr David Clark for bringing another piece of legislation to this House and just working hard to ensure that things are in place, that things are getting sorted\u2014and it\u2019s more than tweaks, but it\u2019s getting things in a better place. As was said earlier by a previous speaker, pieces of legislation like this are just common-sense approaches in terms of what\u2019s going on.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000475\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221cd33f16-add4-4363-a2d4-f457841a5c4c\u0022\u003ESo as others have said, the Companies Office is a registry service, it\u2019s got the 16 different registers, each governed by a separate Act of Parliament. Basically, this piece of legislation enables the funds to be moved between the registers, as at the moment they are not. Pretty much that\u2019s it, in a nutshell. I\u2019m sure as we move the legislation through the second reading, third reading, I\u2019m sure there\u2019ll be far more information that I can share then, but I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022 data-id=\u0022ccaab96eb6f643a0b2389fa8dd5d70d2\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000476\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022ccaab96eb6f643a0b2389fa8dd5d70d2\u0022\u003ECHRIS PENK (National\u2014Kaipara ki Mahurangi):\u003C/span\u003E Thank you very much, Mr Speaker. The Minister and others have outlined clearly the purpose of the legislation and why it\u2019s needed, including the reason that the passage of it will be so quickly conducted through the House. So I do acknowledge those points and acknowledge, on behalf of National\u2014as others have done already\u2014that we support it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000477\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EOnly a couple of brief points from me. One is that the effect of the bill is retrospective; often times that\u2019s a red flag for us as lawmakers, where we\u2019re looking back, making something right that was wrong. In this case, it\u2019s worth noting, I think, for the record, this is not a criminal matter. So we\u2019re not retrospectively making something a criminal offence, or even the other way around, and even if it were it would be in the nature of what\u2019s colloquially referred to as a victimless crime. There\u2019s no harm being done here that should not be undone.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000478\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EThe other point was just around the incorrect use of levies. The Minister has outlined why and how that\u2019s the case from quite a technical legal perspective. That\u2019s not uncommon, actually, within our various Government agencies, so I think there\u2019s probably a wider systemic issue here, and it\u2019s something that the Regulations Review Committee takes very close interest in as part of our remit, so we\u2019ll look forward to that next bill coming through and with the fuller process the Minister has highlighted will take place in that.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000479\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003ESo those were my particular points that I wanted to make. I emphasise that we continue, on this side of the House, to support the bill, and we\u2019ll do so through further stages today.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002262ff759d-9586-405a-a6e6-208ad65adeb5\u0022 data-id=\u002245cae3cd0ef54f4abd84e256fbc1e623\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000480\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262ff759d-9586-405a-a6e6-208ad65adeb5\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002245cae3cd0ef54f4abd84e256fbc1e623\u0022\u003ETANGI UTIKERE (Labour\u2014Palmerston North):\u003C/span\u003E T\u0113n\u0101 koe, Mr Speaker. Happy to take a short call.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000481\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262ff759d-9586-405a-a6e6-208ad65adeb5\u0022\u003EThis is a necessary piece of legislation to be in place, as it acknowledges and rectifies previous and current practice of the Companies Office and makes what has been prior practice permissible moving forward.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000482\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262ff759d-9586-405a-a6e6-208ad65adeb5\u0022\u003EWe\u2019ve heard already in the House this afternoon that the Companies Office is responsible in this regard for the regulatory, or registrar, functions for 16 Acts\u2014the earliest in 1908; the latest in 2019.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000483\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002262ff759d-9586-405a-a6e6-208ad65adeb5\u0022\u003EThe Minister himself referred to the economic and community development aspects in New Zealand. That\u2019s why it\u2019s important that this is a piece of legislation before the House. I commend it.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022094b0ff4-e404-451b-b4a9-ad12bd4dee56\u0022 data-id=\u0022bfd4c86d0d2549cfb77b5ab40e644fb2\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000484\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022094b0ff4-e404-451b-b4a9-ad12bd4dee56\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022bfd4c86d0d2549cfb77b5ab40e644fb2\u0022\u003ESTUART SMITH (National\u2014Kaik\u014Dura):\u003C/span\u003E Well, thank you, Mr Speaker. I don\u2019t intend to take very long. This is a necessary piece of legislation, I think it\u2019s been said by all. I\u2019d particularly like to acknowledge Chris Penk\u2019s contribution regarding the regs review aspect and view on the bill. I think that really says it all. I\u2019d like to just commend the bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002217bfa49a-da49-4001-9466-0b4bfd70b3f3\u0022 data-id=\u002212e2c65213334d3e9807ebdb6eba27aa\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000485\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002217bfa49a-da49-4001-9466-0b4bfd70b3f3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002212e2c65213334d3e9807ebdb6eba27aa\u0022\u003EDr EMILY HENDERSON (Labour\u2014Whang\u0101rei) (remote):\u003C/span\u003E T\u0113n\u0101 koe, Mr Speaker. I am delighted to bring in the end of the first reading of the Companies Office Registers Funding Validation Bill, and it is good to do so in a spirit of amity around the House. This is a small but necessary fix for a very important part of our economic life, covering the gamut from the Companies Register to the incorporated societies to the retirement villages to the charitable trusts. It is important that this office continues to work smoothly. This piece of legislation is going to make that possible and I commend it to the House.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000486\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002217bfa49a-da49-4001-9466-0b4bfd70b3f3\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000487\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002217bfa49a-da49-4001-9466-0b4bfd70b3f3\u0022\u003EBill read a first time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000488\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u00222392a147519648d7af6a22b3a2ebccaa\u0022\u003ESecond Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022 data-id=\u00226288d6ad05b24015af77624cf0d2e4d1\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000489\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226288d6ad05b24015af77624cf0d2e4d1\u0022\u003EHon Dr DAVID CLARK (Minister of Commerce and Consumer Affairs):\u003C/span\u003E I move, That the Companies Office Registers Funding Validation Bill be now read a second time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000490\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EAs I\u2019ve said already in the House during the first reading, this bill validates the past collection and use of fees collected by the Companies Office on all of the 16 registers it maintains. It seeks to rectify past issues of cross-subsidisation within the Companies Office ahead of the implementation of a new funding system. It allows the Companies Office to spend its existing surplus to fund shortfalls while we put the longer-term regime in place. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000491\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EThe legislative framework for the new funding system is the forward-looking Companies (Levies) Amendment Bill\u2014look out for that one coming around the House. I hope it will be introduced to the House before too long. This bill is the first step in the Government\u2019s legislative package to modernise Companies Office funding, and with that I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022 data-id=\u002236a6fb92b4e14d9887acfc5e03ba6c44\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000492\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002236a6fb92b4e14d9887acfc5e03ba6c44\u0022\u003EDr JAMES McDOWALL (ACT):\u003C/span\u003E Thank you, Mr Speaker. What a privilege being the second speaker on a bill. This is certainly a slightly unusual situation. This is like the Diet Coke version of lawmaking.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000493\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022\u003EI thank the Minister for, at the very least, providing the House with a legislative statement in both readings so far. I\u2019ll note that this is an omnibus bill. There\u2019s a lot of aggregation being made in the law, in a heartbeat. Note we\u2019ll have no submissions from the stakeholders, so we can\u2019t particularly terse out the unintended consequences in advance.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000494\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022\u003EWe just have to hope that the Government has done its homework with this one and that the regulations work as expected. The fact that they\u2019re doing this in Budget week, in the traditional urgency segment, it kind of\u2014the reasons given for using urgency were not overly compelling, but at least it\u2019s something that has cross-party support.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000495\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022\u003EThe Minister said New Zealand wants it to be a fair, transparent, and easy place to do business. In the global context, that\u2019s quite true. You know, New Zealand is a relatively easy place to start a business. Those of us that have done that before know that.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000496\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022\u003EBut lawmaking like this can cause a bit of uncertainty, sometimes, with the levies that were mentioned in the forthcoming bill. You know, when we\u2019re talking about enabling\u2014like this bill does\u2014a future unknown law, we really should ensure that the first one goes through a proper process, not just the second one.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000497\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022\u003EBut in any case, with some reservations\u2014certainly some reservations about the process and this, frankly, very unusual and strange way of making laws on a Friday afternoon\u2014we are going to support the bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u0022b012ea223d9b4a69862557f9cf3c2976\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000498\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022b012ea223d9b4a69862557f9cf3c2976\u0022\u003EASSISTANT SPEAKER (Ian McKelvie)\u003C/span\u003E: Our next call is a remote call. The question is that the motion be agreed to. In going to the remote call, I call Dr Emily Henderson\u2014I suspect, the first of three doctors I\u2019d want to visit.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002217bfa49a-da49-4001-9466-0b4bfd70b3f3\u0022 data-id=\u00225a0a556d7adb43f1b73d3543ade58a40\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000499\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002217bfa49a-da49-4001-9466-0b4bfd70b3f3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00225a0a556d7adb43f1b73d3543ade58a40\u0022\u003EDr EMILY HENDERSON (Labour\u2014Whang\u0101rei) (remote):\u003C/span\u003E T\u0113n\u0101 koe, Mr Speaker, again, and any visit from you is, of course, a welcome one, especially in this House. I rise to speak in support of this Companies Office Registers Funding Validation Bill again. The Companies Office fulfils a vital function in New Zealand life, providing the authoritative source of information about New Zealand businesses, and it is absolutely vital we keep it running. However, under current legislation, each individual register is supposed to be funded from fees charged to users of that register. Some run at a surplus, others run short, and in those case, the Companies Office has, understandably, been applying the excess funds from one to the support of the other. This in fact ultra vires the legislation, and thus we gather today to make this small but vital fix. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000500\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002217bfa49a-da49-4001-9466-0b4bfd70b3f3\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000501\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002217bfa49a-da49-4001-9466-0b4bfd70b3f3\u0022\u003EBill read a second time.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u00222a3054e0a49940ce949f7ffd849c7580\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000502\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00222a3054e0a49940ce949f7ffd849c7580\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: I declare the House in committee for consideration of the Companies Office Registers Funding Validation Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000503\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022505b5d438c224509b6287430a36fe78e\u0022\u003EIn Committee\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u00226979766f1314405186843b9b20e5e1d6\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000504\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226979766f1314405186843b9b20e5e1d6\u0022\u003ECHAIRPERSON (Ian McKelvie)\u003C/span\u003E: Members, the House is in committee on the Companies Office Registers Funding Validation Bill. I remind members that they are able to participate remotely. If you are on Zoom and want to take a call, please type \u201Ccall\u201D into the chat. You should also use the chat if you wish to raise a point of order. If we receive new tabled amendments, I will advise members so that they can refresh the House papers page to see the new amendments. Finally, it would helpful for members to ask multiple questions, if they have them, of the member in charge during their call. Members, we now come to Part 1.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022 data-id=\u0022b9d247626ba64caba922c1c25de96e95\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000505\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022b9d247626ba64caba922c1c25de96e95\u0022\u003ECHRIS PENK (Senior Whip\u2014National):\u003C/span\u003E Excuse me\u2014point of order. I seek the leave of the House that all provisions within the bill be taken as one debate.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u0022406a517cddce4a43a6326622929c0bf1\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000506\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022406a517cddce4a43a6326622929c0bf1\u0022\u003ECHAIRPERSON (Ian McKelvie)\u003C/span\u003E: Is there any objection? There is no objection.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000507\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u002246989e9fede64ee8b220b53ccd99cfcc\u0022\u003EParts 1 and 2, Schedule 1, and clauses 1 and 2\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u00222138002be8ed4985933609f03d9e9cbb\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000508\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00222138002be8ed4985933609f03d9e9cbb\u0022\u003ECHAIRPERSON (Ian McKelvie)\u003C/span\u003E: The question is that Parts 1 and 2, Schedule 1, and clauses 1 and 2 stand part.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000509\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003EParts 1 and 2, Schedule 1, and clauses 1 and 2 agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u00228d3ac2b33b544a3589d47997e841ff43\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000510\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00228d3ac2b33b544a3589d47997e841ff43\u0022\u003ECHAIRPERSON (Ian McKelvie)\u003C/span\u003E: I will report this bill without amendment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000511\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003EHouse resumed.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u0022c7a1558dba5d4f7e9f8570b541fa57a5\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000512\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c7a1558dba5d4f7e9f8570b541fa57a5\u0022\u003ECHAIRPERSON (Ian McKelvie)\u003C/span\u003E: Mr Speaker, the committee has considered the Companies Office Registers Funding Validation Bill and reports it without amendment. I move, That the report be adopted.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000513\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000514\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003EReport adopted.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000515\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u00225a74c5de8cbb449abafbe2dcef9df117\u0022\u003EThird Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022 data-id=\u002212eb9d7d5fff4e9fbdf58ca11e22b0a7\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000516\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002212eb9d7d5fff4e9fbdf58ca11e22b0a7\u0022\u003EHon Dr DAVID CLARK (Minister of Commerce and Consumer Affairs):\u003C/span\u003E I move, That the Companies Office Registers Funding Validation Bill be now read a third time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000517\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EThe bill, as outlined in the various stages in the debate so far, is the Government\u2019s first step in the implementation of a better and more fit for purpose model for funding the New Zealand Companies Office. The model will reflect the modern realities of running the corporate registry system. It\u2019ll allow the Companies Office to leverage information technology developments and realise efficiencies. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000518\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EThe bill that we are passing now through the House validates the past collection and use of fees collected by the Companies Office across all of its 16 registers it maintains, and also expressly allows existing surpluses within the Companies Office to be used to meet funding deficiencies on some of its registers while the new funding model is implemented. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000519\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003EI do want to thank the members across the House for their cooperation and thoughtful comments through the passage of this bill. I have appreciated the quality of the debate. I mean that quite earnestly, Mr Penk, because the contributions, certainly the early ones, canvassed the issues involved, I thought, quite thoroughly, including the speech by Mr Bayly. And I have also appreciated the brevity of the latter speeches. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000520\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225bbd9f26-fdb0-4b85-a836-0fc46e1bba3c\u0022\u003ESo the bill forms a package with the Companies (Levies) Amendment Bill, which lays out the legislative framework for the new Companies Office funding regime. That\u2019s a bill that I will introduce to the House before too long and refer to the Finance and Expenditure Committee. But, for now, I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u002223cf4772ac864cdfa6d9507f5c4d6556\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000521\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002223cf4772ac864cdfa6d9507f5c4d6556\u0022\u003EASSISTANT SPEAKER (Ian McKelvie)\u003C/span\u003E: The question is that the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022 data-id=\u0022bd46d3e50e27433da2de39783ec1b219\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000522\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022bd46d3e50e27433da2de39783ec1b219\u0022\u003EANDREW BAYLY (National\u2014Port Waikato) (remote):\u003C/span\u003E Thank you, Mr Speaker. It\u2019s a pleasure to be speaking on this third reading. Yes, I do acknowledge the Minister. It\u2019s important that we do proceed with this bill quickly, and shortly it\u2019ll be an Act, which is better. I think the one thing we haven\u2019t had a debate on\u2014it didn\u2019t come up\u2014was the operative clauses around how this comes to pass. There\u2019s a new section, new section 84A, which provides that \u201Ca fee to which the section applies is and always has been validly imposed.\u201D\u2014that\u2019s the validation of fees component. \u201CMoney received by a Registrar of any register maintained by the Companies Office\u201D\u2014and we know there\u2019s 16 of them\u2014\u201Cin payment of the fee is declared to be, and always to have been lawfully collected and applied.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000523\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003EAnd so the other, second component of that is it defines the Companies Office as the \u201Cdivision or part of each of the following departments\u201D or agencies. As I alluded to in my first reading speech, the amendments are to the Building Societies Act 1965, the Companies Act 1993, the Financial Markets Conduct Act 2013, the Financial Services Providers (Registration and Dispute Resolution) Act 2008, the Friendly Societies and Credit Unions Act 1982, the Incorporated Societies Act 1908, the Insolvency Practitioners Regulation Act 2019, the Limited Partnerships Act 2008, the Personal Property Securities Act 1999, and the Retirement Villages Act 2003.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000524\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022859e13f9-33bb-41bb-b2f0-d848eaf25407\u0022\u003ESo just for completeness, for people listening\u2014if they were, on a Friday afternoon\u2014but they are the operative elements, and, of course, that\u2019s the reason this bill is broken up into the components\u2014because each of those 13 pieces of legislation will have the same clauses inserted in them. So, on that note, I certainly commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022489d736b-2629-4bc7-8d38-6319c7797a33\u0022 data-id=\u0022df42c37838534667a490678e4d80b565\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000525\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022489d736b-2629-4bc7-8d38-6319c7797a33\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022df42c37838534667a490678e4d80b565\u0022\u003EMARK CAMERON (ACT):\u003C/span\u003E Oh, for the sake of good virtue in this final reading, and I think we\u2019ve canvassed it well in the House, I congratulate the bipartisan nature of the support for the Companies Office Registers Funding Validation Bill. It is a shame that we are having a very truncated process under urgency, and, you know, as legislators, I think it\u2019s incumbent upon all of us to have proper and honest scrutiny about legislation. This withstanding, this is a good piece of legislation. It mitigates the problems that we have all canvassed through the various speeches today, and the ACT Party supports it in this third and final reading.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000526\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022489d736b-2629-4bc7-8d38-6319c7797a33\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000527\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022489d736b-2629-4bc7-8d38-6319c7797a33\u0022\u003EBill read a third time.\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022\u003EBills\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000528\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u00229f2b4feaca9e4d8198da4295864726a6\u0022\u003ECustoms and Excise (Tobacco Products) Amendment Bill\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000529\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022d62ac30bb617495fa1111fc4ee7261be\u0022\u003EFirst Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022 data-id=\u00229a0c0e89afd5401096e8b20eed1bed38\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000530\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00229a0c0e89afd5401096e8b20eed1bed38\u0022\u003EHon MEKA WHAITIRI (Minister of Customs):\u003C/span\u003E I present a legislative statement on the Customs and Excise (Tobacco Products) Amendment Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000531\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022387fa343d0714e0ebb2bfa0a88cbbcac\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: That legislative statement is published under the authority of the House and can be found on the Parliament website.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000532\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022dd280fd6bfa847c7a3013197528149d6\u0022\u003EHon MEKA WHAITIRI\u003C/span\u003E: I move, That the Customs and Excise (Tobacco Products) Amendment Bill be now read a first time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000533\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EThe purpose of this bill is to ensure the correct excise and excise-equivalent duty is able to be applied to certain tobacco goods and to reduce revenue evasion. Tobacco products are highly taxed for public policy reasons, in particular to reflect the negative health impacts and costs of tobacco consumption on individuals and society. The bill addresses two issues: under-declaration of the tobacco content of water-pipe tobacco, and the need for technical amendment to the definition of tobacco products in the Customs and Excise Act 2018. These issues are not related but are both urgent due to their impacts on Crown revenue and the potential to undermine the Smokefree Aotearoa 2025 Action Plan. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000534\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EWater-pipe tobacco is also known as flavoured shisha, hookah, molasses, and fruit tobacco. Unlike other tobacco, water-pipe tobacco contains other items, including glycerol. It may also contain aromatic oils and extracts, molasses, or sugar, and may be flavoured with fruit. These other items may make up a significant proportion of the weight of the product. It is for this reason that in New Zealand it is taxed based on the kilo of tobacco content. When importing water-pipe tobacco, importers are required to declare the kilograms of tobacco content on their import entry. Customs suspects that self-declaration of the tobacco content by some importers is leading to material under-declaration of tobacco content in water-pipe tobacco products and revenue evasion.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000535\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EIn the cases of other goods where Customs question the information provided, testing and investigations can be undertaken to determine the accuracy of the information. As there is no testing facility available internationally or domestically, it is not technically possible for Customs to accurately determine the tobacco content of water-pipe tobacco. Customs is forced to use the declared tobacco content provided by importers to determine the excise on the product. As the accuracy of the declared tobacco content cannot be determined, this also means Customs is unable to meet the evidential threshold for seizure and prosecution. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000536\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EThe bill addresses the difficulty in accurately determining tobacco content in water-pipe tobacco for the correct levying of excise and excise-equivalent duty. The bill achieves this through imposing import controls, changing the statistical unit for calculating duty, and creating a new excise and excise-equivalent duty rate for water-pipe tobacco.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000537\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EPaying incorrect revenue denies the Crown of revenue that is due to it and also undermines our health strategy of using tobacco taxation to increase prices, reduce consumption, and reduce the harm that smokers cause to New Zealanders\u2019 health. The supply of cheaper tobacco products can also counteract the incentive to quit tobacco products that are fully taxed. It also creates an uneven playing field in the market, as honest importers who correctly declare the tobacco content of their goods are able to be undercut on price by dishonest importers who evade duty.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000538\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003ETo combat this, the bill changes the method of calculating excise and excise-equivalent duty from per kilo of tobacco content to total weight of the water-pipe tobacco, including anything added to the tobacco during manufacturing or processing. This brings New Zealand into line with a number of other countries, such as the United Kingdom and Australia, who have encountered the same issues in determining tobacco content of this product. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000539\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EMoving from tobacco content to total weight requires a new excise and excise-equivalent duty rate. The bill amends the rate to one based on an assumed tobacco content of 15 percent. Customs believes 15 percent is a fair, standardised percentage, broadly in line with the actual tobacco content that most of this type of product is likely to contain. The bill sets the excise and excise-equivalent duty rate for water-pipe tobacco at $234.77 per kilogram based on the current tobacco excise rate and a tobacco content of 15 percent. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000540\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EThis bill imposes the same import controls on water-pipe tobacco that most other tobacco products are subject to, making it a prohibited import. Those wanting to import water-pipe tobacco will require a permit to be issued by Customs prior to importation. The bill is not about making the system harder for compliant importers. It will have minimal impact on them. They will need to apply for a permit to import. There is no cost for a permit to import. This bill aligns with the Government\u2019s vision of eliminating the harm that smoked tobacco causes communities and of having a tax system that is efficient and fair. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000541\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EFinally, this bill also amends the definition of \u201Ctobacco products\u201D in the Customs and Excise Act 2018 to include new tariff and excise headings. These new headings are required as a result of changes made to the Harmonized Commodity Description and Coding System, an international system that codifies all goods, that came into effect on 1\u00A0January 2022. The Customs and Excise Act 2018 defines tobacco products for the purpose of the annual inflation adjustment by reference to specific tariff and excise headings. The harmonised code has reclassified some tobacco products under a newly created tariff heading, which also needs to be included in the relevant excise item. These must be included in the definition of tobacco products to enable the goods to be adjusted annually for inflation. Without this, they will become out of step with the excise and excise-equivalent rates for other tobacco products. This bill amends the definition of tobacco products to include the new excise item and tariff heading, ensuring that excise on all tobacco products can be adjusted for inflation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000542\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EI ask Parliament to support this bill. It will come into force the day after Royal assent. I am confident that it will ensure a fair market playing field for legitimate importers of water-pipe tobacco, protect Crown revenue, and support the Government\u2019s Smokefree Aotearoa 2025 Action Plan. I am pleased to commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u002217e106b278504248958efd7d057d736d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000543\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002217e106b278504248958efd7d057d736d\u0022\u003EASSISTANT SPEAKER (Ian McKelvie)\u003C/span\u003E: The question is that the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022861a1798-a396-4a6c-b9e2-7d2f15d4a001\u0022 data-id=\u002203304bac7bc845439b423d15c1408f42\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000544\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022861a1798-a396-4a6c-b9e2-7d2f15d4a001\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002203304bac7bc845439b423d15c1408f42\u0022\u003EDr SHANE RETI (National):\u003C/span\u003E Thank you, Mr Speaker. National will be supporting this amendment to the Customs and Excise Act, a bill that fundamentally is trying to deal with two problems: first of all, the avoidance of excise tax on tobacco products and, secondly, to standardise the tobacco in flavoured tobacco with other tobacco products. The use of flavoured tobacco is very common\u2014also known as water-pipe tobacco\u2014and we\u2019ve heard some of the names. It\u2019s also known more commonly as shisha, hookah, nargile, goza, and hubble-bubble\u2014is how you might hear it, certainly through the Middle East. I was very familiar with this where it\u2019s a common practice.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000545\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022861a1798-a396-4a6c-b9e2-7d2f15d4a001\u0022\u003EThe difficulty that we\u2019ve got is that the tobacco in the flavoured tobacco product is also bundled together with glycerol and aromatics and molasses, and you can\u2019t tell the weight of just the tobacco content, the KTC or the kilo tobacco content. In fact, the regulatory impact statement describes the challenge and the difficulty in trying to determine that. You\u2019d think you could just send it to a laboratory or do some sort of test, but it\u2019s not quite how it is. In 2016, Customs engaged Company A to test an importation to determine the tobacco content. Company A had to clean the samples with a bleaching treatment followed by water washes, as the leaf material was deeply coloured by other materials that are added to the leaf fragments during manufacture, and the samples then had to be dried to allow microscopic examination. The result they came up with was about 4 to 5 percent kilo tobacco content, which they suspected was substantially less, which is the problem we\u2019re dealing with, than what the tobacco content actually was. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000546\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022861a1798-a396-4a6c-b9e2-7d2f15d4a001\u0022\u003EThe regulatory impact statement also talks about the high index of suspicion of avoidance where manufacturers or importers, actually\u2014of which there\u2019s about 15, it turns out\u2014commercial importers, are reporting 0.4 percent KTC as a self-declared importer, where, in fact, the suspicion is that it\u2019s at least up to the 10 percent, if not the 15 percent level. The excise over the past two years, the excise tax on these products, has been $5 million. The suspicion is that there may be $31.5 million of excise avoidance over that two-year period, and so the suggestion is that it move to a total weight and then a percentage of that total weight\u2014and a threshold analysis was done as to what that percentage should be, 15 percent, 20 percent, and 30 percent, and 15 percent was thought to be a fairer proportion and probably more representative of the true KTC component. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000547\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022861a1798-a396-4a6c-b9e2-7d2f15d4a001\u0022\u003ESo this bill tries to simplify\u2014it\u2019s a bit of a guess, but it\u2019s as much of a guess as any other jurisdiction as well\u2014the mechanism and get some more accuracy as far as possible into assessing the true tobacco content of flavoured tobacco or water pipe tobacco. And it suggests this be done just by the total weight times the 15 percentage points. The second thing it does is to standardise the reference to tobacco across these products with the rest of the tobacco framework. So National will be supporting this bill. Thank you. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022 data-id=\u0022201abd5ba4eb4c75b112f13a30c3f02e\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000548\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022201abd5ba4eb4c75b112f13a30c3f02e\u0022\u003ECHL\u00D6E SWARBRICK (Green\u2014Auckland Central):\u003C/span\u003E E te M\u0101ngai, t\u0113n\u0101 koe, t\u0113n\u0101 koutou e te Whare. I\u2019d like to join with other parties so far in their contributions in stating that the Greens, of course, will be supporting this piece of legislation today.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000549\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EAs others have outlined, this Customs and Excise (Tobacco Products) Amendment Bill amends the Customs and Excise Act 2018 and the Excise and Excise-equivalent Duties Table\u2014or, for those who are well-initiated, the EEDT\u2014to ensure that the correct excise and excise-equivalent duty is applied to certain tobacco goods and reduce duty evasion, as was just well-outlined by my colleague Dr Shane Reti. It is very much the case that this is primarily for water-pipe tobacco or for those who may know it as hookah, shisha, molasses tobacco, and also fruit or flavoured tobacco.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000550\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EIt obviously makes sense to simplify this system, as others have well outlined, to ensure that some are not avoiding taxes that are levied on others by exploiting a loophole. Just to really drive this home, I want to thank the Minister\u2019s officials for getting back to me on some of the concerns and considerations that the Greens had here\u2014always making sure that we are trying to put in place the best form of harm reduction measures that don\u2019t err too far towards prohibition and, in turn, have those perverse consequences of an extreme underground black market.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000551\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ESo, to that effect, I understand that some importers have been basing their import entry on tobacco content of between 2 and 5 percent and one at 0.4 percent. However, it is the case that rates that are this low are simply not credible, but due to the unavailability of testing facilities and some of the complexity around it\u2014which Dr Shane Reti just outlined\u2014Customs are unable to meet the evidentiary threshold for seizure and for prosecution.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000552\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EI understand that Customs has also been trying to work alongside these importers, and has contacted some of the overseas manufacturers to enable the true tobacco content to be identified. However, as Customs has found, when overseas manufacturers are refusing to cooperate, there is, in fact, little that Customs can do because, of course, they fall outside of Aotearoa New Zealand\u2019s legal jurisdiction.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000553\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EAll in all, this creates an unfair situation, or an uneven playing field, which impacts negatively on those who are playing by the rules and those who are not able to exploit this loophole. In turn, Customs has decided, advised the Minister, and we\u2019ve ended up with this legislation, that assessing on around the 15 percent average basis is a fair standardised percentage, broadly in line with the actual tobacco content that most of this type of product is likely to contain.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000554\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EI asked the Minister\u2019s officials about what this would actually look like in practice, we\u2019re not often, when we\u2019re debating in this House, talking about what that looks like for the people on the street. So for those who may find themselves, for whatever reason, tuned in to Parliament TV on this Friday, listening to these budgetary debates, I can tell you that a typical retail price, in New Zealand, for a 50 gram pack of flavoured tobacco is currently around $25. With the changes to the way that excise and excise-equivalent duty is charged on these types of tobacco products, it\u2019s estimated that that price could increase by $3, to around $28 including GST.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000555\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EOn the point around flavoured tobacco, we understand that it is, of course, a niche product in Aotearoa. There were only 15 importers of this product operating here in 2021. All importers will need to pay that new rate. It\u2019s not a greater rate, because, of course, it assumes a tobacco content of 15 percent, which, as I just outlined before, Customs believes is a fair averaging out, based on the limited data that is available internationally.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000556\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EJust in closing, in my contributions, particularly alluding to the concerns and considerations that the Greens have, just a brief comment on the notion of sin taxes for those who are interested in harm reduction and prohibition and what it looks like to regulate substances in such a way that we actually do go about achieving the things that we purport to want to achieve.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000557\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ESin taxes, for those who are uninitiated, are the kinds of taxes that we as the State or as a Parliament levy on the kinds of social harms that we want to see less of. This is, in practice, a kind of nudge economics, whereby we are trying to encourage people to do less of harmful things and, hopefully, to be moved into doing more of better things.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000558\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EHowever, it\u2019s really important to note again that when you really look into sin taxes, there is a point at which these sin taxes progress beyond the point of efficacy. That is, that they err in to being something incredibly regressive but also producing a substantial black market\u2014actually, again, on the regulatory spectrum, kind of potentially more towards the end of prohibition in practice. This, of course, drives the black market model.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000559\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EI\u2019d note that, in the broader Budget, the Government has put aside millions of dollars for tackling the underground black market that is currently starting to get a grip in Aotearoa. To that effect, I just think it\u2019s really important that we, as a House, when reflecting on the efficacy of the likes of not only the regulatory models for the kinds of social harms that exist out there, particularly in substances, which we can all approach with evidence if we want to, but also when we\u2019re talking about the likes of these sin taxes, that we try and get it right.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000560\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EAs far as I\u2019m concerned, as far as the Greens are concerned, there is a need to continue to look into the evidence, particularly as the Government considers, per the Cabinet papers proactively released around getting to Smokefree Aotearoa 2025, that we, of course, are paying heed to what the most evidentially based harm reduction model would look like.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000561\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ESo the Greens support this bill because it closes that tax loophole, which creates an unfair market, frankly, but we also pay heed to the fact that we have to continue to have an evidence-based policy when it comes to drug harm reduction. Kia ora.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022 data-id=\u0022dc683cebdee14cb5b42e572114bedf0b\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000562\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022dc683cebdee14cb5b42e572114bedf0b\u0022\u003EDr JAMES McDOWALL (ACT):\u003C/span\u003E Thank you, Mr Speaker. Well, the ACT Party will go into a slightly different direction here because I think we are in different territory compared to previous bills this afternoon. Here, we believe we\u2019ve got a slightly inappropriate use of urgency. The objectives of this bill may be perfectly well intentioned, but frankly if the under-declaring of water pipe tobacco products was such a big deal, one would assume that the Government would want to go through a full select committee with submissions, and a full consultation so they could really get a grip on all of this. We would ask what evidence exists to show that this bill is needed under urgency following the Budget\u2014what\u2019s the rush, what are the costs and benefits? And it would have been nice to have had the regulatory impact statement released in good time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000563\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022\u003EBut, you know, there are some interesting points in the documents leading up to this. There has been no stakeholder consultation, and the regulatory impact statement mentions the limitation on analysis\u2014the lack of quality data and evidence used in developing the proposal\u2014and Customs acknowledge that the data limitations were significant. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000564\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022\u003EAssuming this is part of the Smokefree Aotearoa 2025 scheme or objective, the evidence around taxation as a disincentive\u2014or an effective disincentive\u2014to reduce smoking is slightly marginal. In fact, skyrocketing prices through taxation has had mixed results\u2014it works for some communities, but for others it actually causes quite a lot of harm. It certainly hurts the poorest communities the most. I wonder if this bill will increase the black market sale of water pipe tobacco, and we just ask: are these regulations actually well designed or will they make things worse? Will people find other ways to bring things in? I assume they will, because they bring all sorts of things in that they\u2019re not supposed to. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000565\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022\u003ESo, in this case, the objectives of the bill, as I said, may be well intentioned, but the process by which the Government is doing this is not good enough, especially given the lack of data analysis and consultation. So for those reasons, we oppose this bill. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022 data-id=\u00229ff16c3b2bca42668bcaba689ecb4148\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000566\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00229ff16c3b2bca42668bcaba689ecb4148\u0022\u003ESIMON WATTS (National\u2014North Shore):\u003C/span\u003E I rise on behalf of the National Party, and as a member of Parliament for North Shore, in support of the Customs and Excise (Tobacco Products) Amendment Bill. We\u2019ve heard, from prior speaker Dr Shane Reti, the importance of this bill in terms of putting in place assessment criteria to ensure that the appropriate quantity of tobacco is within a product and that assessment is done in a way that can substantiate that in a more accurate manner than what is currently available\u2014will lead to the avoidance of excise tax under the current model.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000567\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022713ccc5b-7ff0-4fa5-ab58-4780620184fe\u0022\u003EObviously, the consumption of these products is something that is a burden on our society. We are, obviously, in support of ensuring that excise tax, in regards to these products, is proportionate and appropriate. It is our belief that what this bill will achieve is changes that will achieve that outcome. On that basis, we support this bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00222170b5bd-171f-4d9f-bfa6-cab72178f108\u0022 data-id=\u0022048977e7eaa946f7af164c65bfc080a1\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000568\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00222170b5bd-171f-4d9f-bfa6-cab72178f108\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022048977e7eaa946f7af164c65bfc080a1\u0022\u003EJOSEPH MOONEY (National\u2014Southland):\u003C/span\u003E I take a brief call on the Customs and Excise (Tobacco Products) Amendment Bill. I have only one chance in my life to do so, so I\u2019ll take that opportunity this afternoon. This bill is designed to combat suspected under-declaration of tobacco content by importers of water-pipe tobacco and to secure Crown revenue from taxes on the same. It imposes import controls, changes the statistical unit for calculating duty, and creates a new excise and excise-equivalent duty rate for water-pipe tobacco, which is also known as flavoured tobacco, hookah, shisha, molasses tobacco, and fruit tobacco. The National Party will be supporting this bill as it is a relatively straightforward and simple solution to a problem that has been identified. With that, I will end my words this afternoon.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u0022b8449486dda2428b82aa92de98a8882a\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the Customs and Excise (Tobacco Products) Amendment Bill be now read a first time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 109\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; New Zealand National 32; Green Party of Aotearoa New Zealand 10; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000569\u0022\u003EBill read a first time.\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000570\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022edd3fddc63244253b684868941379807\u0022\u003ESecond Reading\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000571\u0022\u003E\u003Cbr\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022 data-id=\u0022947ea6f3c103492ca1f9755c79704081\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000572\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022947ea6f3c103492ca1f9755c79704081\u0022\u003EHon MEKA WHAITIRI (Minister of Customs):\u003C/span\u003E I move, That the Customs and Excise (Tobacco Products) Amendment Bill be now read a second time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000573\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EThe bill will combat the suspected underpayment of excise-equivalent duty on water-pipe tobacco and make a technical amendment to the Customs and Excise Act 2018 so that all tobacco excise continues to be annually adjusted for inflation. This is a short bill, barely more than a page, but it is important and it is urgent. The bill directly supports both the Government\u2019s aim to reduce the harm from smoking and protect an important source of Government revenue. It will help New Zealand achieve its Smokefree Aotearoa 2025 Action Plan because, yes, even with a water pipe, users still inhale tobacco smoke, and we all know the personal tragedies that can result and the impact on our health system. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000574\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EThe bill will help Customs better oversee the importation of water-pipe tobacco and ensure that the correct amount of excise is paid. It does this by creating a new statistical unit based on the total weight of water-pipe tobacco; secondly, setting a new excise and excise-equivalent rate based on the current tobacco excise rate and tobacco content of 15 percent; and, thirdly, making water-pipe tobacco a prohibited import without a permit. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000575\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EThe bill will also protect excise revenue by ensuring that the correct rate of excise-equivalent duty continues to be paid on all tobacco into the future. The Customs and Excise Act 2018 provides that tobacco excise is annually adjusted for inflation. The provisions doing this refer to tobacco types by using international numerical descriptors. However, the latest international revision of those descriptors has created a new tariff heading. The Customs and Excise Act 2018 consequently needs updating. Without this update, the annual inflation adjustment would not apply to all those types of tobacco that it should. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000576\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EYou may ask why this bill needs to be passed with the urgency of Budget night legislation\u2014from my colleagues in the ACT Party. Well, it is urgent because there is revenue at stake: (1) if announcements were made about proposed changes to the requirements for water-pipe tobacco, such is that which comes with a public consultation process, this would enable unscrupulous importers to import greater amounts and stockpile it to reduce the excise-equivalent duty they would pay; (2) the technical amendment updating the numerical descriptors needs to be in effect by 1 January 2023 when the next inflation adjustment will occur. Otherwise, we will have some tobacco not subject to the same excise and excise-equivalent rates as the rest. This has the potential to create an uneven playing field and will undermine the Smokefree Aotearoa 2025 Action Plan. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022861a1798-a396-4a6c-b9e2-7d2f15d4a001\u0022 data-id=\u0022faaa48709e50492fb8873592ac85e6f0\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000577\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022861a1798-a396-4a6c-b9e2-7d2f15d4a001\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022faaa48709e50492fb8873592ac85e6f0\u0022\u003EDr SHANE RETI (National):\u003C/span\u003E Thank you, Mr Speaker. I do agree with other members that it\u2019s hard to imagine that this is urgent in Budget urgency. There is some urgency, I accept that. And that urgency is shown in the regulatory impact statement by the substantial increase in capture at the Customs border. In the one year from 29 June 2019 to 29 June 2020, Customs seized a total of 32 grams of molasses; the following year, it had gone up to 430 kilograms. Wow! That\u2019s a substantial increase. The number of seizures had also increased substantially. That June to June 2019 to 2020 had one seizure, but the following year, 2020 to 2021, it had gone up to 57, I think I did see. So there\u2019s no doubt that avoidance is increasing, and so that does lend some urgency. It\u2019s also a substantial volume of material we\u2019re talking about. This is not trivial: 14,000 kilos suspected undeclared imports. That\u2019s just the undeclared imports, so quite a large quantity. So there is a need to be doing this, there is a timeliness. I don\u2019t think it\u2019s under Budget urgency, but this is where we find ourselves. And as I said, National will be supporting this bill. Thank you, Mr Speaker.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u00222e8a3fe6c9be48cab1741e58fcbdba58\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000578\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00222e8a3fe6c9be48cab1741e58fcbdba58\u0022\u003EASSISTANT SPEAKER (Ian McKelvie)\u003C/span\u003E: The question is that the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022 data-id=\u0022b499f83305d9401bbef7ab3e09e5d5d5\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000579\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ff1ad5a3-e02a-4ffe-a961-ef69bdaee1c9\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022b499f83305d9401bbef7ab3e09e5d5d5\u0022\u003EDr JAMES McDOWALL (ACT):\u003C/span\u003E Thank you. I just want to make a few comments; they\u2019ll be short comments. It was interesting there, the Minister addressing one of the points I made about why this was urgent, and the answer was, \u201CWell, it\u2019s about revenue.\u201D I thought that was a bit ironic. I thought these sorts of things were supposed to be about health. But in any case, in terms of revenue capture, in terms of, you know, actually getting duties off these sorts of things\u2014look, this is the problem of these sorts of regulations, right? You create a prohibition or a duty and then suddenly it all goes underground and you can\u2019t actually tax it properly anyway, and then it just joins the black market with everything else coming in. So there are certainly lots of questions to be had here, and I just want to reaffirm our opposition to this whole process. Thank you, Mr Speaker.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u0022d66773424ea84eccb6619138b1a84165\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the Customs and Excise (Tobacco Products) Amendment Bill be now read a second time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 109\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; New Zealand National 32; Green Party of Aotearoa New Zealand 10; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000580\u0022\u003EBill read a second time.\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000581\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022b105e6fae36a4ef08b5c8272cb04c506\u0022\u003EIn Committee\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u00228d9e94dde4fb42e78d9426e1bd0972c5\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000582\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00228d9e94dde4fb42e78d9426e1bd0972c5\u0022\u003ECHAIRPERSON (Ian McKelvie)\u003C/span\u003E: Members, the House is in committee on the Customs and Excise (Tobacco Products) Amendment Bill. I remind members they are able to participate remotely. If you\u2019re on Zoom and want to take a call, please type \u201CCall\u201D in the chat. You should also use the chat if you wish to raise a point of order. We\u2019ve received new tabled amendments. I will advise members so they can refresh the House papers page to see the new amendment. Finally, it would be helpful for members to ask multiple questions if they have them, of the member in charge during their call. Members, we now come to Part 1.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a1f7bbd1-b6ae-41c0-963b-dbe1251f5540\u0022 data-id=\u00223160e4ec726f40719b953fef5a65cccd\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000583\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a1f7bbd1-b6ae-41c0-963b-dbe1251f5540\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00223160e4ec726f40719b953fef5a65cccd\u0022\u003EKIERAN McANULTY (Labour\u2014Wairarapa):\u003C/span\u003E I raise a point of order, Mr Chairperson. I seek leave for all provisions to be taken as one question.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u002223879d5f259c48ea82f1b0d5e9d5f4b9\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000584\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002223879d5f259c48ea82f1b0d5e9d5f4b9\u0022\u003ECHAIRPERSON (Ian McKelvie)\u003C/span\u003E: Leave has been requested for that. Is there any objection? There\u2019s none. The question is that Parts 1 and 2, the Schedule, and clauses 1 and 2 stand part.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000585\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022836bf13d05b04bf89e3218d0395f9269\u0022\u003EParts 1 and 2, the Schedule, and clauses 1 and 2\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022 data-id=\u002290fa0d42a5724a0f917477257bd8f039\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000586\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002290fa0d42a5724a0f917477257bd8f039\u0022\u003ECHL\u00D6E SWARBRICK (Green\u2014Auckland Central):\u003C/span\u003E Just referring to the regulatory impact statement\u2014it might be interesting for members given the content of the debate that we\u2019ve had so far. It refers to, in 2020 and 2021 combined, and I\u2019m quoting here from the regulatory impact statement: \u201CWe collected $5 million in total duty in goods and services tax on flavoured tobacco. We estimate the loss to Crown from evasion could be up to $31.5 million over the two years.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000587\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EIt does then, however, go on to say: \u201CIn addition, importers are exploiting the regulatory environment in New Zealand and using it to smuggle flavoured tobacco to Australia. Large shipments can be declared at low [per kilo tobacco content] in New Zealand and smuggled to Australia to avoid the much higher excise rates Australia applies to flavoured tobacco. For example, we\u2019re aware of cases where flavoured tobacco has been smuggled from New Zealand to Australia by sending it as smaller parcels that were falsely declared as body scrub.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000588\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EI have just two questions to the Minister in relation to both that but also other parts within this regulatory impact statement and the other contributions that I made in the debate so far, particularly around the black market.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000589\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EThe first is just in relation to that point about smuggling into Australia and where this puts us in line with the rest of the world. Do these changes now mean that our flavoured tobacco excise rates are at the same level that they are in Australia\u2014i.e., meaning that this issue, as outlined in the regulatory impact statement, will be removed; if not, what is the disparity there?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000590\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ESecondly, it\u2019s a question about consideration of the black market. Just in relation to the contribution that I made in the first reading about the fact that the Government\u2019s investing millions of dollars in tackling black market tobacco and the potential for the black market to grow were there to be a regulatory or a tax environment which erred far more towards kind of in-practice prohibition. Is the Minister concerned, or has the Minister seen reports, about what kind of impact this may have on the potential for the growth of the black market in this water-pipe tobacco?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000591\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ESo those two questions: around the comparison to Australia, and around the impact on the potential black market.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022 data-id=\u002222479e860cca4d81a85b04492923fc43\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000592\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002222479e860cca4d81a85b04492923fc43\u0022\u003EHon MEKA WHAITIRI (Minister of Customs):\u003C/span\u003E While I\u2019m getting some answers, I just want a comment about the Australian import that\u2014apparently no, the Australian rate is higher.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000593\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EActually, I want to share with the member that in some jurisdictions\u2014which is obviously Australia\u2014water-pipe tobacco is taxed as if it was 100 percent tobacco. The rate that New Zealand will apply, which I\u2019ve given in my speeches, is calculated on the assumption that tobacco content is 15 percent, which is, I guess, the best current estimate of the typical tobacco content of this product. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000594\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003ESo the answer to, \u201CIs the Australian rate higher?\u201D: no. Like I said, it\u2019s 100 percent. But in terms of your black market question, the black market definitely is an issue and Customs see it probably more so than any other agency. I guess that\u2019s why the Government has allocated $10.4 million in this Budget for enforcement to try and stem the black market that you\u2019ve alluded to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022 data-id=\u00228830568a5a5a4fe589a8267cace16503\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000595\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00228830568a5a5a4fe589a8267cace16503\u0022\u003ECHL\u00D6E SWARBRICK (Green\u2014Auckland Central):\u003C/span\u003E I thank the Minister and the officials for offering those questions at such a rapid-fire rate.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000596\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EJust to that first question around the comparison to Australia, in particular, and that disparity in the 15 percent and 100 percent rate, and, obviously, that story that I alluded to before around smaller parcels being funnelled through Aotearoa New Zealand to Australia, sometimes being falsely declared as body scrub. Given that disparity which seems to currently exist even were we to make these changes as we are today\u2014is there not still some concern that we might end up seeing Aotearoa being, potentially, that back-door to the Australian black market?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000597\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EAs a result\u2014kind of as a secondary question to that\u2014what kind of collaboration are we seeing with Australian Customs, in particular, to try and either clamp down on or work together or collaborate or try and see some kind of alignment in what our policies might look like?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022 data-id=\u0022524a7363e312493b87f783285b958d9d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000598\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022524a7363e312493b87f783285b958d9d\u0022\u003EHon MEKA WHAITIRI (Minister of Customs):\u003C/span\u003E To that member, we work quite closely with our Australian border agencies and have a post in Australia. We work on a range of Customs-related issues, and this will be but one of many that we work in tandem with our Tasman neighbours.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000599\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EAgain, going to the black market issue, this is why we\u2019ve made decisions in this year\u2019s Budget to actually address whether it\u2019s in scrubs, whether it\u2019s hidden anywhere, so not only the bill that we\u2019re passing today but the extra resourcing\u2014the $10.4 million we got in Budget 2022\u2014would absolutely put a spotlight to actually disincentivise people smuggling any illegal substances, either into this country or to other countries because New Zealand is thought as a soft spot.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000600\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EThat\u2019s not what the intention is here, and with Customs\u2019 constant watching, we want to monitor it and manage that in, I think, a very professional way.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022 data-id=\u002206aadb3398b54a39bfa00024d18836b6\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000601\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002206aadb3398b54a39bfa00024d18836b6\u0022\u003ECHL\u00D6E SWARBRICK (Green\u2014Auckland Central):\u003C/span\u003E Following up on that line of questioning, I totally take on board the Minister\u2019s point with regard to extra resourcing, particularly for clamping down on the black market in tobacco. That is, of course, I think, the key point of interest or curiosity, particularly for the Greens, when we\u2019re looking at harm reduction for all substances.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000602\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EHow do we regulate a substance, knowing that a substance can be harmful, in order to reduce that harm, noting that even with the imposition of prohibition or taxes to the point of practical prohibition that we\u2019re not going to necessarily eliminate this thing? In fact, there\u2019s the potential for perverse outcomes, where we might see people cooking things up in their kitchens and distributing them on the streets, which then means that these things are unregulated and, in turn, that there might more harm produced.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000603\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EJust again, alluding to that point that the Minister made about how we get that balance right and obviously our international cooperation too, and that extra resourcing to the tune of\u2014I believe, off the top of my head, if I\u2019m correct from my recollection of Budget documents\u2014around $10 million for clamping down on black market tobacco. What kind of consideration has the Government given to whether there is a chance to perhaps err into the space of chasing one\u2019s tail, where you\u2019re throwing good money after bad without potentially getting that balance right on what the level of effective tax rate is for the likes of tobacco, noting that there is now needing to, obviously, be more money put into policing the black market; is there potential that we end up getting into a situation like, I might say, with cannabis?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022 data-id=\u00226e7208b4750a4c38b2ab824d71c3c1f7\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000604\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226e7208b4750a4c38b2ab824d71c3c1f7\u0022\u003EHon MEKA WHAITIRI (Minister of Customs):\u003C/span\u003E I want to thank the member for the questions. This isn\u2019t about eluding the questions she\u2019s asking, but we are trying to debate this bill, and I think I\u2019ve attempted to address what Customs is doing with this bill. I\u2019ve declared the 15 percent that we are targeting and also why we\u2019re doing it under urgency. I feel I\u2019ve answered the questions, and if members want to ask something specifically about the bill, then I\u2019m more than happy to answer that here this afternoon.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022 data-id=\u0022a578366ee56642fa94abbb1d20b5e4d5\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000605\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022a578366ee56642fa94abbb1d20b5e4d5\u0022\u003ECHL\u00D6E SWARBRICK (Green\u2014Auckland Central):\u003C/span\u003E A specific question, then, if I may. What impacts, if any, does the Minister think that this would have on the potential for the increased black market for water-based tobacco?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022 data-id=\u0022c01533589fc5408ca8394ce7e1b25b03\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000606\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c01533589fc5408ca8394ce7e1b25b03\u0022\u003EHon MEKA WHAITIRI (Minister of Customs):\u003C/span\u003E I think it\u2019s going to have a significant impact, both with the changes to the legislation, the Act that governs it, but also, like I said, the $10.4 million that\u2019s invested by the Government in Budget 2022.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u002233d9546e5a28436b8102d4eb60f5da86\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That Parts 1 and 2, the Schedule, and clauses 1 and 2 stand part.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 109\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; New Zealand National 32; Green Party of Aotearoa New Zealand 10; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the Customs and Excise (Tobacco Products) Amendment Bill be now read a third time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 109\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65; New Zealand National 32; Green Party of Aotearoa New Zealand 10; Te Paati M\u0101ori 2.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 10\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000607\u0022\u003EParts 1 and 2, the Schedule, and clauses 1 and 2 agreed to.\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000608\u0022\u003EBill to be reported without amendment.\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000609\u0022\u003EHouse resumed.\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022 data-id=\u00220419228be6a94ac09841cac01b45c5f8\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000610\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220419228be6a94ac09841cac01b45c5f8\u0022\u003ECHAIRPERSON (Ian McKelvie)\u003C/span\u003E: Mr Speaker, the committee has considered the Customs and Excise (Tobacco Products) Amendment Bill and reports progress without amendment. I move, That the report be adopted.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000611\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000612\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a6c42c44-3622-4c9c-98b8-793fb5ec15cc\u0022\u003EReport adopted.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000613\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u00220fc7f46c899e4da383e458b163f6dda5\u0022\u003EThird Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022 data-id=\u00228212b23662a142d4a3fe93aa2b3847d3\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000614\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00228212b23662a142d4a3fe93aa2b3847d3\u0022\u003EHon MEKA WHAITIRI (Minister of Customs):\u003C/span\u003E I am pleased to come to the third reading of the Customs and Excise (Tobacco Products)\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000615\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b38cb7d3cabd49bca84c6255dd2b4a41\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: The Minister needs to move the motion.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000616\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022083a474d3a8b48629a0c2d841bdd332b\u0022\u003EHon MEKA WHAITIRI\u003C/span\u003E: Sorry, Mr Speaker; my bad. I move, That the Customs and Excise (Tobacco Products) Amendment Bill be now read a third time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000617\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EAs I said, I am pleased to come to the third reading of the Customs and Excise (Tobacco Products) Amendment Bill. As I\u2019ve said before, this short bill will both protect Crown revenue and help protect New Zealanders\u2019 health. I am therefore both happy and relieved to see it come to its final reading. The bill is a straightforward and pragmatic response to suspected non-compliance and a technical change in an international tool of trade. Both affect tobacco, and this bill, therefore, helps protect the nation\u2019s health and the Crown revenue needed to fund Government services.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000618\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EAs a final re-cap, the bill achieves these objectives in the following ways. It sets a new rate for water-pipe tobacco based on the total weight of the tobacco. This will overcome the current problem where some importers are thought to be under-declaring the tobacco content of their water-pipe tobacco in order to pay less duty. I can\u2019t tell you the extent of this practice, as it is not technically feasible for Customs to verify the tobacco content of water-pipe tobacco. That has enforcement implications. This bill will fix the situation by charging excise on water-pipe tobacco at $234.77 per kilogram of total weight. For good measure, the bill will also prohibit the importation of water-pipe tobacco without a permit. This will help Customs monitor imports and discourage any other forms of non-compliance. This regime already applies to most other tobacco.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000619\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EThe international Harmonized Commodity Description and Coding System, which provides numerical descriptors for all types of goods is periodically reviewed. In the last review, a new tariff and excise heading was created for some tobacco products. This has changed some of the descriptors cited in the Customs and Excise Act 2018. This bill updates those so that all tobacco excise will continue to be adjusted annually to reflect inflation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000620\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022073496a0-73b7-426f-97f8-916bd542b0fa\u0022\u003EThroughout the passage of this bill, I have talked about possible non-compliance. Some importers are under-declaring the tobacco content of water-pipe tobacco so as to pay less duty than they should. When some practices are identified, it is appropriate for me to take action to protect the fairness and integrity of the tax system by taking legislation such as this through the House. But non-compliance is the exception. I want to take this opportunity to publicly recognise that the overwhelming majority of traders are law abiding. I am proud that by closing off avenues for non-compliance, tax evasion, I and this bill are giving honest traders a level playing field. I therefore commend this bill, at its final reading, to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u002237316256c743456b8d2bb2c5fd5f8210\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000621\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002237316256c743456b8d2bb2c5fd5f8210\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: The question is that the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022861a1798-a396-4a6c-b9e2-7d2f15d4a001\u0022 data-id=\u0022caf6f6e1a4054b8eb1dc5fbf0a7fddc0\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000622\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022861a1798-a396-4a6c-b9e2-7d2f15d4a001\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022caf6f6e1a4054b8eb1dc5fbf0a7fddc0\u0022\u003EDr SHANE RETI (National):\u003C/span\u003E T\u0113n\u0101 koe, Mr Speaker. Look, thank you, National will be supporting this bill through its progress here at the third reading, and while this is a customs and excise bill, I just want to focus for a moment that the end outcome we\u2019re looking for is, actually, a human outcome to have a deterrence to reduce smoking. That\u2019s the end outcome we want to reach. And while this all about the excise and the customs part to that, I want to bear that in mind. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000623\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022861a1798-a396-4a6c-b9e2-7d2f15d4a001\u0022\u003ETo take that a step further, looking at the regulatory impact statement, they make notes that when they\u2019ve been out to stakeholders, they\u2019re unable to determine the material implications for M\u0101ori, children, seniors, disabled people, women, gender diverse, Pacific peoples, veterans, and rural communities, but they don\u2019t believe it\u2019s significant. I was looking at some data from Australia, and certainly, the use of tobacco water pipes is quite small and infrequent\u2014well less than 1 percent, as I recall. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000624\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022861a1798-a396-4a6c-b9e2-7d2f15d4a001\u0022\u003EThere is also commentary, as I mentioned in my first reading speech, that I saw mostly through the Middle East, and that some of the Middle Eastern communities here in New Zealand may be affected by this. The reflection from officials is that this is a niche product and one which is unlikely to have a large impact on that community. So I\u2019m reassured by that. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000625\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022861a1798-a396-4a6c-b9e2-7d2f15d4a001\u0022\u003EI just want to briefly come to and conclude on the health impact, because for a while, there was some thinking that tobacco water-pipe smoking might be safer because, as the tobacco comes through the water, it\u2019s almost been purified or reduced in some way. That\u2019s actually not correct. It turns out that a number of studies have shown that for people who use water-pipe tobacco frequently, they have levels of nicotine in their urine, generally equivalent to smoking 10 cigarettes a day, and that every one session of using water-pipe tobacco is equivalent to, actually, smoking two cigarettes. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000626\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022861a1798-a396-4a6c-b9e2-7d2f15d4a001\u0022\u003ESo I just wanted to bring the discussion back to the purpose: we\u2019re actually doing this so we can offer some protection for people who might be bound by tobacco and offer some hope and a sense that we can help them change this behaviour. We commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022 data-id=\u0022acdbd23ff3ea47bb81b9b4a62ea68899\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000627\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022acdbd23ff3ea47bb81b9b4a62ea68899\u0022\u003ECHL\u00D6E SWARBRICK (Green\u2014Auckland Central):\u003C/span\u003E E te M\u0101ngai, t\u0113n\u0101 koe. T\u0113n\u0101 koutou e te Whare. If I may take the opportunity at this third reading to do, as the good Dr Shane Reti just did, in kind of contextualising this Customs and Excise (Tobacco Products) Amendment Bill and the broader framework of how it is that we approach substances that can cause harm. Just referencing those contributions, and I want to thank the Minister for the back and forth in the committee of the whole House just before, and her officials as well, especially for coming back to me overnight with a number of responses to some questions on what this would look like in practice. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000628\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EFundamentally, this bill is, for the Greens, and the reason that we support it, just about ensuring that we have a system that is applied simplistically across all tobacco products, hopefully to address those concerns as raised by the ACT Party and also by the National Party around why this is happening now. Otherwise, it seems pretty straightforward to me as to why this is necessary. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000629\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EBut that, of course, is not to detract from the core point that I was making during the committee of the whole House. That is, of course, that, again, if we are to recognise that substances like alcohol or tobacco or cannabis or whatever else can cause harm, the question then becomes, how do we create a regulatory and tax environment in order to reduce that harm? And what does the evidence say about how we go about doing that, without necessarily imposing our ethics or our morals or our ideology beyond the points of those purported intentions becoming effective? \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000630\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EThat was the point that I was making in the first reading as well, around the notion of syntax, which is that we sometimes risk, in levying things like these excises, going beyond the point of efficacy and drifting far too much into a space that is in practice like prohibition, that drives the likes of the black market, where you have no regulation because there is nobody who is checking ID. There is no quality control and there is, in the case of substances like cannabis, next to no education for consumers or ability to intervene in problematic usage. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000631\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ESo when we were talking about the kind of range of different approaches that we can take in that regulatory and that tax environment, such as is outlined in this bill, you have, on the one side of things, a kind of complete prohibition where you have a clamping down and, obviously, criminal penalties associated to the sale and supply of the substance. That doesn\u2019t get rid of the substance in most instances. As I alluded to before, it can end up meaning that we have far more harmful substances and versions of them that are cooked up in people\u2019s kitchens or in their garages or otherwise. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000632\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EOn the other side of the spectrum, you have a complete free market, which is, effectively, without regulation. And, obviously, 20 or 30 - odd years ago we were far closer to that, when it comes to tobacco, with the likes of the ability to advertise at sports games and otherwise. At both ends of that spectrum, at the end of prohibition or criminal prohibition and at the end of a complete free market, with that lack of regulation around how those who are seeking to sell the substance can access consumers, you have what the Greens would argue, and, actually, what the international evidence and the Global Commission on Drug Policy says, which is that you have the maximisation of harm. That is, you have entities, whether they be organised crime or whether they be those who are large commercial entities, who are seeking to make a quick buck by exploiting vulnerable communities to sell as much of this product as possible. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000633\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ENow, again, to boil it down to what this bill actually does in practice, it is about simplifying the excise that is levied on water-pipe tobacco. That is about making sure that this is applied universally across all different types of tobacco that are coming through Customs. And I acknowledge that the Minister\u2019s role is solely within that realm of Customs. But, none the less, I ask all of those in the Chamber who are contributing today, particularly my colleagues in the ACT Party, who were not particularly keen to come out throughout the cannabis referendum campaign in 2020 and to stake their colours to the mast, to say that there is an opportunity for ideological consistency here. There is an opportunity for us to acknowledge that all substances can cause harm and that we can regulate them and that we can tax them in such a way that reduces that harm.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000634\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ETo the point around excise on tobacco products, again, I think it is really important, as we get towards Smokefree Aotearoa 2025, that we continue to pay attention to what is effective. At what point is this syntax potentially pushing more of the supply into the unregulated black market and potentially creating more problems that we\u2019re going to have to mop up further down the track? And I just see the first little red flag of that with that $10 million allocated to policing the black market for underground tobacco. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000635\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EHowever, the Greens support this bill today, again, because it is about simplifying that excise system, but we\u2019d just like members across the Chamber to reflect on that broader point. Kia ora.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000636\u0022\u003EBill read a third time.\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022\u003EBills\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000637\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022744645f61c1e4902beb0f566bde7f298\u0022\u003ECoroners (Coronial Cap) Amendment Bill\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000638\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022618ef63bc5ec4822a14af2abb099cb4c\u0022\u003EFirst Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022 data-id=\u0022b0103127a0c64114b3602b716a0f9415\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000639\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022b0103127a0c64114b3602b716a0f9415\u0022\u003EHon AUPITO WILLIAM SIO (Minister for Courts):\u003C/span\u003E I present a legislative statement on the Coroners (Coronial Cap) Amendment Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000640\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002265c5395d65ef4b39849e4261f8a4b153\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: That legislative statement is published under the authority of the House and can be found on the Parliament website.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000641\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00223e1bfdcf4e484d8a8e2e0a85fb497f82\u0022\u003EHon AUPITO WILLIAM SIO\u003C/span\u003E: I move, That the Coroners (Coronial Cap) Amendment Bill be now read a first time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000642\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EThe bill will amend the Coroners Act 2006 to increase the maximum number of coroners that can be appointed at any time from 20 fulltime-equivalent (FTE) coroners to 22 fulltime-equivalent coroners. This bill is being considered under urgency because Budget decisions to appoint four additional coroners on top of the current 18 cannot be fully implemented until the statutory cap in the Coroners Act has been amended. Appointment processes will commence as soon as possible after enactment. The new coroners will be appointed by the Governor-General on the advice of the Attorney-General. I consider urgency to be appropriate to the technical nature of this bill because its purpose is to give effect to Budget decisions. The usual parliamentary process would delay these appointments for several months. This would mean more waiting before we can start to alleviate workload pressures on our existing coroners. It would mean an increase in the times for coroner\u2019s findings and the distress being experienced by grieving families and wh\u0101nau.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000643\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EThe coronial system exists to help prevent deaths and promote justice by investigating the causes of sudden and unexplained deaths and making findings that help reduce the chances of further deaths occurring in similar circumstances. The coronial system is currently under considerable pressure. Since 2014, coroners have struggled to keep pace with the number of cases being accepted into the coronial jurisdiction. This has resulted in an increasing active caseload and an increase in the average time taken to conclude coronial inquiries. Key drivers for these increases include more deaths entering the coronial jurisdiction that turn out to be from natural causes and several periods in recent years when the coronial bench has not been operating at full capacity due to vacancies.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000644\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EThe current coronial system and its resourcing is not fully meeting the needs of bereaved families and the public. The increasing length of time they are waiting to receive a coroner\u2019s findings is severely impacting the wellbeing of many bereaved families and wh\u0101nau. These families and wh\u0101nau are victims because they have been harmed by the unexpected, violent, or suspicious death of a loved one, and the coroner\u2019s findings can help provide answers about their loved one\u2019s death and bring closure during the grieving process.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000645\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EThis year\u2019s Budget finding for coronial services, coupled with the increase to this coronial cap, will enable the appointment of four additional permanent coroners. These positions will be on top of the current 18 full-time permanent coroners, taking the total to 22 fulltime-equivalents, but there are also seven FTE relief coroners who are not counted with the cap. These additional coroners will enable faster resolution of coronial cases. Many more families and wh\u0101nau will receive coroner\u2019s findings sooner than would otherwise be possible.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000646\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EThe bill is needed to give effect to Budget decisions. It will contribute to reducing coronial wait times, thereby relieving a little of the distress felt by families and wh\u0101nau, or ainga, who have lost their loved ones, and I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u00222d0c8ba3f0c844629c4c99af5da31698\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000647\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00222d0c8ba3f0c844629c4c99af5da31698\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: The question is that the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022 data-id=\u002255d8b74e31d8441d8f88d404205893f9\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000648\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002255d8b74e31d8441d8f88d404205893f9\u0022\u003ECHRIS PENK (National\u2014Kaipara ki Mahurangi):\u003C/span\u003E Thank you, Mr Speaker. We support this bill, the Coroners (Coronial Cap) Amendment Bill\u2014I\u2019ll put everyone out of their misery. So we acknowledge that the Minister has brought to the House a bill that\u2019s worthwhile in itself, and we do thank him for doing so. The context, however, in relation to the coroner\u2019s court and the place that we find ourselves now, is instructive, and I do want to take a moment to set that out for the House and acknowledge that what is taking place now is far later than it should have been. We do also want some assurances from the Minister, and we\u2019ll seek those in subsequent readings and the committee of the whole House stage, about the effect that this measure will have. I think it\u2019s fair to acknowledge to the Minister not only in the bill itself increasing the cap from 20 to 22 of the number of coroners as the maximum fulltime-equivalents but also that there is funding in the Budget to make that so for the appointment of four additional coroners, seven coronial registrars, and four clinical advisers. These things are all positive, and so, as I say, the National Party will support the bill. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000649\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EIt\u2019s fair to acknowledge, however, that with access to justice being so important, it\u2019s really disappointing that huge problems exist in the system, with massive delays across the whole judicial branch, including courts\u2014the coroner\u2019s court particularly, as we\u2019re discussing today\u2014tribunals, and so forth. These are longstanding issues. They have existed across Governments of both stripes. They existed prior to COVID-19, and they exist now. The problems have been exacerbated by the Government\u2019s response to COVID-19. To some extent, this is fair enough. To some extent, it is understandable that there have been delays. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000650\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EBut the Government\u2019s response has lacked imagination. It\u2019s lacked urgency\u2014lower case \u201Cu\u201D. Of course, now we find ourselves in urgency with an uppercase \u201CU\u201D, such that the Parliament is being asked now to approve with some haste the passage of a bill to increase the cap of coroners to match the fact that increased funding is being provided in the Budget. National\u2019s supporting not only the bill itself but also the use of urgency for the reasons that the Minister has outlined. It does support measures that the Government is entitled to make in the Budget. So with the bill in itself being so straightforward, as a matter of, frankly, overdue good practice, of course we are prepared in good faith to consider that and, for the record, any further amendments that the Minister might bring forward to the operation of the coronial court, of course, in conjunction with the Chief Coroner.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000651\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003ESo I do acknowledge that there are other players than the Government of the day in the sense of the executive Government. It\u2019s appropriate for the executive and also Parliament to operate in a way that reflects comity between the branches. So I think it\u2019s right that I acknowledge that constraint but also that opportunity. I would urge those who are involved in the operation of this particular court to work closely with the current Minister, and the offer is made too to work constructively with the Opposition. I was disappointed to be refused a full, unredacted copy of the recommendations paper that was made from the Chief Coroner to the Minister some time ago. I think it would be helpful in the spirit of bipartisan dedication to improvement of the access to justice in this country if all key players were enabled to participate in that and there were greater transparency in that space. So I do want to take that opportunity to put that on the record. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000652\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EThe Minister has rightly referred to distress being the result of emotional, financial, and social problems caused by delays in the coroner\u2019s court. Many years\u2019 worth of additional delays have accrued over the course of time\u2014again, I acknowledge, across successive Governments, pre- and post - COVID-19 onset, and so forth. Related systems have been under severe strain\u2014health systems, social assistance being required, and the legal profession itself. All are groaning under the weight of the shortfalls and the shortcomings of the coroner\u2019s system, some improvement to which is going to be made today and going forward. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000653\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EAlthough I do give the Minister fair notice that in the committee of the whole House stage, we will want to know more about the extent to which we can expect the delays to be reduced, the backlog cleared, and so on. If urgency is to be used, and we\u2019ve said that it\u2019s appropriate in this case, then the quid pro quo is that the Minister and the Government have done a serious and thorough job of understanding the implications of what they\u2019re bringing forward to the House. So I do expect more rigour and more detail in the provision of that information simply than to say that more coroners will be appointed \u201Cas soon as possible\u201D.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000654\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EThe issues in the coronial system are even more acute than in many of the other types of court that operate in this country. We talk generally about lack of access to justice. We talk about the stress and strain on individuals, but the lack of closure for families of those who have died suddenly and the mental health implications for that have been particularly acute. The lack of access to services that are unlocked when the official status is provided by a coroner\u2019s determination is a very serious consideration as well\u2014for example, victim support services requiring a finding of the coroner in relation to a particular accident or non-accidental sudden death as well.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000655\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EWe think of the disruption to the lives of those who are left behind, and we also bemoan the inability of a system to learn the lessons that are meant to be learnt by a coronial finding. Where those are delayed, we are denied the opportunity in the intervening months and even years to understand where systems failures may have led to an accident taking place, whether in an industrial setting or otherwise. So we hope that this is not the end of the Government\u2019s intentions and actions in this space. But we do acknowledge that it is a step in the right direction. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000656\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EBy way of heads-up to the Minister and the team that he may have supporting him in the committee of the whole House stage, we will be wanting to know what the analysis has been about the effect that these extra coronial appointments will be. We want to know when the backlog can be expected to reduce accordingly, and we\u2019d actually also like to challenge the Minister, just as we challenge ourselves, to understand how the system can work better, including why there is a cap on the number of appointments in the first place. I acknowledge that\u2019s something that previous Governments of a National or National-led nature have also not addressed. There may be good reasons for it, of which I am unaware, but I do remember in a previous Budget\u2014and I think it may have been last year, but I don\u2019t swear that that\u2019s the case\u2014the urgency process being used to increase the maximum number of district court judges as well. I wonder if there\u2019s appetite across the side of the House\u2014and it might be that we don\u2019t thrash this out today, and fair enough if more time and analysis is needed. But it might be that we decide collectively that actually it\u2019s not particularly productive to have a cap in the number of judges so that we\u2019re here following the Budget in a very truncated process, without opportunity for public input, merely to increase the number from 20 to 22 fulltime-equivalents\u2014just 10 percent. I do wonder if there\u2019s a danger that in a following occasion in this House, perhaps the next Budget, we\u2019ll be here extending the number from 22, say, to 24. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000657\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003ESo all these questions I look forward to prosecuting in the committee of the whole House stage, but for now I leave my comments at that. Again, just to emphasise: a good step in the right direction, albeit disappointing to have taken so long, and we hope that this will not be the end of the Government\u2019s efforts in this regard.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022 data-id=\u0022095249b0624c49ab89eb2d62c20bbfe5\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000658\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022095249b0624c49ab89eb2d62c20bbfe5\u0022\u003EGINNY ANDERSEN (Labour\u2014Hutt South):\u003C/span\u003E T\u0113n\u0101 koe e te M\u0101ngai o te Whare. Thank you very much, Mr Speaker. Look, it\u2019s great to see that Budget 2022 delivers a package of investment to improve the coronial system and reduce delays, particularly for those families who are grieving. The operating funding of $28.5 million over four years and $1.6 million of capital funding aims to ensure that families and wh\u0101nau receive coroner\u2019s findings sooner than they have been, and also to reduce the coronial caseload.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000659\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EIt\u2019s really heartening to hear that, as a Budget piece of legislation, the Opposition are voting in favour of this\u2014it\u2019s good to see that indeed. This is a good bill. We know for a fact that the coronial process, by its very nature, can take time. It is designed to find out the facts about a particular death, provide resolution for families, and also to produce findings that may help potentially prevent future deaths and to learn from what has happened in the past.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000660\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EThe additional coroners provided through the Budget, and enabled through this bill, will support the coronial cases to be considered far more quickly. These additional coroners will enable faster resolution of coronial cases\u2014that way, giving families relief and a sense of closure as well.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000661\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c21f4beb-20c4-4b12-bc6f-fdc931e2dc96\u0022\u003EThis is a bill that, I think, will be welcomed by many New Zealanders. I commend it to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022 data-id=\u0022707c1ea050fb43529be1c04eb45f586b\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000662\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022707c1ea050fb43529be1c04eb45f586b\u0022\u003EHon PAUL GOLDSMITH (National):\u003C/span\u003E Thank you, Mr Speaker. I acknowledge the enthusiasm of my worthy colleague from the ACT Party Nicole McKee, and I\u2019m sure she will get her chance before too long. I do want to acknowledge the Minister Aupito William Sio\u2014the Minister in charge of this bill, the Coroners (Coronial Cap) Amendment Bill. And National, of course, is supporting this legislation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000663\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EWe do want to see progress made on what is a significant blight, I think, in the justice area where New Zealanders have been kept for far too long to get the results out of the coronial system when their loved one has died. The process is far too slow\u2014the system has been too slow for a long time but has got substantially worse over the last few years, and even worse again over COVID. So we support both the investment in the Budget and, secondly, this legislation to lift the cap on the number of coroners. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000664\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EObviously, we don\u2019t particularly like urgent legislation such as this and we would have preferred they could have done it in a normal pattern, but given the relatively straightforward nature of the issue, that\u2019s something we can support. What we worry about, of course, is not so much\u2014this Government has demonstrated its ability to announce stuff and spend stuff. What\u2019s not quite so clear is the ability to have the actual improvement in delivery of time frames within this part of what the Government does, and so we\u2019d be very keen to see some very clear plans about how this will actually improve things on the ground.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000665\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EThe other point we\u2019d make, of course, is there are much wider issues around access to justice in the court system, which I would hope the Minister has been very focused on over the last little while. So we\u2019ve seen the time taken between cases being taken in the criminal courts and also the civil courts hugely extended over the last four years since this Government has been in place. It\u2019s a longstanding problem, but it\u2019s been getting worse; likewise, in areas like the Employment Relations Authority\u2014huge delays. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000666\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002253f86481-33c1-48b2-893b-c11cc0bd673d\u0022\u003EIn all these areas, people\u2019s lives have been put on hold for far too long. When we look at the justice sector in the broadest sense, the issues that confront you are, first, the rise in violent crime; second, the rise in gangs and youth crime being out of control, or of great concern. But the second broader issue is this whole issue of how can we get the court system working much more efficiently and effectively so that New Zealanders can get access to justice, but also access to speedy justice so that they can get on with their lives after a criminal case, both in terms of victims and their perpetrators. But also in the civil court, so people can get on with their business lives as well. So I just encourage the Government to show equal enthusiasm in that space as well. Mr Speaker, thank you very much. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002283dca3a7-93a6-4a78-a313-6fce42ebe49e\u0022 data-id=\u0022b2ce7541475d4d099b922317634f55e5\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000667\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002283dca3a7-93a6-4a78-a313-6fce42ebe49e\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022b2ce7541475d4d099b922317634f55e5\u0022\u003EVANUSHI WALTERS (Labour\u2014Upper Harbour):\u003C/span\u003E Thank you, Mr Speaker. This is a bill that makes a very small legislative change, but it will have a big practical effect for many New Zealanders. I think a lot of people assume that the coroners don\u2019t get referred many cases, but in fact they have a very broad mandate. What we know is that about 3,500 cases are referred to the coroner every year. What we also know is that we\u2019ve seen an increase in the time taken to process those cases, and we know that despite extra part-time coroners being appointed in 2019, those longer processing times continue to occur. Those of us who sit on the Justice Committee know that in particular because we heard from a petitioner about this very issue. Corinda Taylor submitted to us on this particular issue, so it is wonderful to see that this is being addressed with urgency today, that allows these changes to be made in sync with the Budget commitments. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022 data-id=\u0022d848732b0ec2406694407099f5bd1ee4\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000668\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022d848732b0ec2406694407099f5bd1ee4\u0022\u003ENICOLE McKEE (ACT):\u003C/span\u003E Thank you, Mr Speaker. I rise to speak on behalf of ACT for the Coroners (Coronial Cap) Amendment Bill in this, the first reading. I do acknowledge the Minister, and the fact that we actually have something in place at the moment, or now, to be able to get through some of the backlog in the Coroners Court. The intent, of course, is to lift the cap from 20 to 22 fulltime-equivalents (FTEs), and I do note in the disclosure statement that there\u2019s no inquiries, no reviews, no evaluations, no reports, but there was, actually, a briefing from the Chief Coroner. And as my colleague across the House has already mentioned, the copies that have been received are redacted.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000669\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EAnd in order for all of us to be able to assist our communities, it would be really great if we could understand the full issues so that we can support whomever is in Government to make sure that we have communities who can move past their grief and move on. So it is under urgency that it\u2019s being held now, but the urgency has actually been going on for quite a number of years. And when we have a cap at 20, we want to lift it to 22, and we only have 18 coroners, then we need to do more, in our humble opinion. The seven coronial registrars and the four clinical advisors is a great result, because by lifting the cap and getting more coroners, they are going to need more support. So I appreciate that the Government has looked to that as well.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000670\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EBut the reality is that we are expected to have a blowout in coronial cases\u2014an expected 400 extra cases over the next three years. We have these delays, but by increasing to 22, we\u2019re barely keeping our heads above the water, especially as the population continues to increase. ACT says the Government needs to do more. We need to fix this issue so that we can support families in their time of grief. And while this is under urgency, it almost feels like a bit of tokenism, especially when we know there are so many more needed. So the cap being set at 20 was set at a time when our population was 4.2 million, and now that our populations is sitting at 5.1 million, that would actually equate to 24.4 FTEs being required just to keep up with the population. And this bill is increasing our cap to 22.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000671\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EI have tabled an amendment in the House, where we would like to increase the cap to 30. We believe that this will allow the clearance of the backlog that is in place at the moment. It will help to give families closure, and it will mean that the Minister will not have to come back at Budget time 2023 to put through another urgent request. We\u2019re hoping, come that time, the Government is actually giving more money to be able to progress the coronial matters that we\u2019re hearing. Thank you, Mr Speaker. We support the bill.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022 data-id=\u002266300cc74aa747dd9b3c6d3e33f50380\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000672\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002266300cc74aa747dd9b3c6d3e33f50380\u0022\u003ECHL\u00D6E SWARBRICK (Green\u2014Auckland Central):\u003C/span\u003E E te M\u0101ngai, t\u0113n\u0101 koe. T\u0113n\u0101 koutou e te Whare. Just opening my contribution to this bill, this evening, I just wanted to confirm that the Greens will, of course, be supporting the Coroners (Coronial Cap) Amendment Bill, as it appears that we have unanimity across the House. It\u2019s exciting. We don\u2019t often get that. This is, as others have articulated, a really important piece of legislation that goes some way towards addressing what has been actually, for a number of wh\u0101nau, years\u2019 worth of backlog in processing these coronial inquiries.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000673\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EHere I want to acknowledge, as my colleague from the Labour Party did, Corinda Taylor, but also the life matters trust, who in 2019 tabled a petition which I was alongside to accept, which then went on to the Justice Committee. And I\u2019d note, unfortunately, we still actually don\u2019t have a report back from the Justice Committee on it. The petition requests therein spoke to not only the issues here with the amount of coroners that are available to process these cases but to the far broader issue. Their petition request, I think, is important to put on record in justice to the ask that they made of this Parliament about the justice system and about the coronial system, particularly for those families that are bereaved by suicide.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000674\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ETheir petition request was that the House of Representatives urge the Ministry of Justice to appoint more coroners, introduce free legal representation for all suicide-bereaved families and wh\u0101nau, provide funding to suicide-bereaved families and wh\u0101nau for specialist legal representation and expert witnesses equivalent to that of any State bodies, public authorities, and corporate bodies represented, and notes that 3,834 people have signed an online petition in support of this request. So I want to acknowledge that work is done by the community, particularly given that they were coming to that mahi from a place of grief and from a place of experiencing a system that was failing them. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000675\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EThat said, what this bill does, while increasing the cap and also matched, as other colleagues have contributed, with a Budget commitment, is it lifts the cap from 20 to 22 fulltime-equivalents (FTEs), but it does not require that any given Government of the day is required to meet that as a minimum. I think that that is a really important consideration that all of us should have. Unfortunately, it is not something, I think, that would be accepted were it to be tabled as an amendment in later stages of this debate today, because of the potential financial implications. But, none the less, just in conferring with my colleague in the ACT Party Nicole McKee, and then conferring quite quickly with my Green Party colleagues, we will be supporting that amendment to the maximum number of coroners to 30 FTEs in line with the increase of our population. I also want to join in acknowledging the fact that this is not only an increase in the FTE for coroners but also for those who work in the coronial and justice support and administrative staff, which is, of course, incredibly important for continuing to progress this work.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000676\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EThe Greens support this legislation. It\u2019s been a long time coming. It\u2019s unfortunate, again, that what we\u2019re still talking about is a maximum and not a minimum. I want to acknowledge Corinda Taylor and the life matters trust, whose petition was tabled back in 2019. For those families and wh\u0101nau who are still caught up in that system, this cannot come soon enough. And therefore, I think that it is due that this bill is afforded urgency.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002217bfa49a-da49-4001-9466-0b4bfd70b3f3\u0022 data-id=\u002238d69d254d0c4fa7b222f8dd38acb33b\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000677\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002217bfa49a-da49-4001-9466-0b4bfd70b3f3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002238d69d254d0c4fa7b222f8dd38acb33b\u0022\u003EDr EMILY HENDERSON (Labour\u2014Whang\u0101rei) (remote):\u003C/span\u003E Kia ora e te M\u0101ngai o te Whare. As a member of the Justice Committee dealing with the petition of Corinda Taylor, I\u2019m pleased to be able to support the first reading of the Coroners (Coronial Cap) Amendment Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000678\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002217bfa49a-da49-4001-9466-0b4bfd70b3f3\u0022\u003EIt will be a bill that will bring relief to wh\u0101nau already sorely burdened by the grief of a loss of a loved one and who have been further burdened by the longstanding delays in the coronial process. The Government has listened, and this year\u2019s Budget will enable the appointment of four additional permanent coroners, taking the total from the current 18 to 22, alongside our seven full-time relief coroners.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000679\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002217bfa49a-da49-4001-9466-0b4bfd70b3f3\u0022\u003EIt\u2019s a hugely important appropriation for this court; but, to realise it, the first step is to amend the Coroners Act 2006 to raise the cap on further coroner appointments to 22. As a purely technical amendment, it\u2019s appropriate for urgency, but most of all, urgency is appropriate so we can bring the Budget decisions to fruition and reduce the waiting times and the distress to grieving families and wh\u0101nau as quickly as we possibly can. I commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022868f3a11-6a23-474f-a25e-6bc1d4c6e93f\u0022 data-id=\u00227abb16e3271542738a51747aa7f6dab9\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000680\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022868f3a11-6a23-474f-a25e-6bc1d4c6e93f\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00227abb16e3271542738a51747aa7f6dab9\u0022\u003EHARETE HIPANGO (National):\u003C/span\u003E It is a privilege to take a call on this bill, which the National Party is supporting, the Coroners (Coronial Cap) Amendment Bill. However, the most important message that I can impress with the Minister is that justice delayed is justice denied. I remember being in the House, speaking to the bill. It was back in May 2019, when Minister Little announced the appointment of eight relief coroners. That was in May 2019. And here we are in May 2022.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000681\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022868f3a11-6a23-474f-a25e-6bc1d4c6e93f\u0022\u003EIt\u2019s been interesting listening to the debate\u2014with it noted under the Coroners Act that there is a maximum capacity for 20 full-time coroners to be appointed, yet there are only 17 to 18 who have been acting full time in the capacity\u2014knowing the pressures not just on the coroner\u2019s court; not just on the coroners but, most importantly, on the grieving family members, on the wh\u0101nau.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000682\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022868f3a11-6a23-474f-a25e-6bc1d4c6e93f\u0022\u003EI also speak from having been a lawyer, many years ago, for a grieving mother who was a party at the inquest of a deceased baby. The burden of the grief of losing a child was immense, but what added to that was the delay, at that time, in getting the matter heard before the court.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000683\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022868f3a11-6a23-474f-a25e-6bc1d4c6e93f\u0022\u003ESo I heed the submissions debate from my colleague Mr Penk, just in terms of the calibration of this, whether it should just be capped from 20 to 22\u2014bearing in mind the pressures and the demands that are already on the coronial court. So I\u2019ve made reference that, back in 2019, eight relief coroners part-time had been appointed. I did a little bit of research and was looking at some media commentary. That media commentary was dated August and September 2021, where the number of unresolved coroner\u2019s inquiries are expected to blow out\u2014and that was at that time back in 2021. So it\u2019s worsened over that time to now. They\u2019re expected to blow out by 400 in the next three years, despite the appointment of the eight new part-time coroners. So the burden and the pressure that\u2019s on the court is going to require innovation in addition to appointment of more coroners to the court.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000684\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022868f3a11-6a23-474f-a25e-6bc1d4c6e93f\u0022\u003ESo the average time to close a coronial case increased 42 percent between 2018 and 2021, from 321 days to 455 days. Now, cases needing an inquiry\u2014so I talked about a coronial case where that\u2019s an initial investigation, evidence is accumulated for a judge to be able to determine and make findings of fact as to the cause of death. Taking it further to an inquest is the actual hearing of evidence before a court where the parties themselves present their position to the court. So cases needing an inquiry take an average of 877 days, and those going to an inquest\u2014which is the hearing that I was talking about\u2014take 1,451 days; four years.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000685\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022868f3a11-6a23-474f-a25e-6bc1d4c6e93f\u0022\u003ESo the point that I make, and impress upon the Minister, is: justice delayed is justice denied. Is the increase, by a further two full-time to the maximum cap of 20, really going to address the pressure and the burden that\u2019s on the court, on the coroners, but on the families most importantly? So that\u2019s my point at the moment. It\u2019s wonderful that this is now being rushed through Parliament under urgency. But I implore of the Government: this is a matter that should\u2019ve been brought to the House soon after 2019, knowing the evidence of the numbers and the pressures that are there, to deal with matters in a more expedient, appropriate manner. The National Party commends this bill to the House.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000686\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022868f3a11-6a23-474f-a25e-6bc1d4c6e93f\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000687\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022868f3a11-6a23-474f-a25e-6bc1d4c6e93f\u0022\u003EBill read a first time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000688\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u00229bd1c6a87d9b46f4ba86095dfd9a503d\u0022\u003ESecond Reading\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000689\u0022\u003E\u003Cbr\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022 data-id=\u0022634154d9b142487f9562b45b9de06a67\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000690\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022634154d9b142487f9562b45b9de06a67\u0022\u003EHon AUPITO WILLIAM SIO (Minister for Courts):\u003C/span\u003E I move, That the Coroners (Coronial Cap) Amendment Bill be now read a second time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000691\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003ELet me just find my speech. Can I just firstly acknowledge the commentary that I\u2019ve heard from across the House and concur with the issues that have been raised. But I do want the House to note that, as I said earlier, this bill, for the reasons that have been mentioned about the concerns of urgency, is very much targeted towards amending the Coroners Act 2006 to simply increase the maximum number of coroners that can be appointed any time from 20 fulltime-equivalent coroners to 22 fulltime-equivalent coroners.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000692\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EThe last speaker, Harete Hipango, made mention that, yes, we did increase it in 2019, but no one took into consideration that people move on, people would get sick, people would retire. Therefore, the temporary relief coroners were to try and help resolve that. However, it doesn\u2019t take away the fact that we do need to address this. This is the first phase. This bill is being passed under urgency because Budget decisions to appoint four additional coroners cannot be fully implemented until this bill has been enacted.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000693\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003ESo I say, again, the recruitment of the additional coroners will commence immediately after enactment. The new coroners will be appointed by the Governor-General on the advice of the Attorney-General. The additional permanent coroners will relieve some of the pressure currently sitting with existing 18 fulltime-equivalent coroners. But sharing the workload will enable faster resolution of coronial cases, and, together with other changes under way within the coronial system, this should reduce the length of time our bereaved families and wh\u0101nau are waiting for coronial findings. This will help alleviate some of the considerable stress of families and wh\u0101nau going through the system. I therefore commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022 data-id=\u0022ba1716f7519940bbb6762bb373f6d257\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000694\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022ba1716f7519940bbb6762bb373f6d257\u0022\u003ECHRIS PENK (National\u2014Kaipara ki Mahurangi):\u003C/span\u003E Mr Speaker, thank you very much, and I acknowledge the comments of the Minister. I think it\u2019s clear that across the House, as evidenced by the various first reading speeches, there is clear agreement on the problem faced. There is agreement on the solution required, at least so far as it is represented by the bill and also measures in the Budget. So I do want to acknowledge that. I think it\u2019s positive that we have a bipartisan agreement on a matter so fundamental to the civil and political rights, and human rights, actually, of New Zealanders, in this case.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000695\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EI do want to make just a couple of brief remarks at this the second reading to acknowledge, first of all, the comments of the ACT Party member. I won\u2019t steal her thunder by speaking to the Supplementary Order Paper. That\u2019s more appropriate for the committee of the whole House stage. But, actually, as it happens, I wasn\u2019t aware of that measure that she was proposing in relation to increasing the cap when I made my remarks at the first reading that it might be that a cap at all is not appropriate. And it did occur to me that if we were to come back each subsequent year, starting this year, then we\u2019d be increasing the number of fulltime-equivalent coroners as follows: 2022, 2022 to 2023; 2023, 2023 to 2024; 2024, 2024\u2014anyway, it will be a lot and I don\u2019t think we need to end up in a bidding war against ourselves and against the population and against, as the Minister said, the realities of attrition within the judicial officer framework. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000696\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EThe point that was made very well by my colleague and friend Harete Hipango, regarding the delays in quantifying those by reference to those statistics she used\u2014I just want to amplify that a little bit by noting, in the form of written questions, that we have seen increases across various different measurement categories. So the average age and days of completed coronial cases by year 2017, 337; up to the present day, 512. The percentage of active coronial cases that are more than 24 months old: 16 percent in 2018 and 31 percent in 2022, an increase of nearly double. And the percentage of active coronial cases that are more than 36 months old as at the end of February: from 4 percent in 2018 to 13 percent in 2022. I think we can all agree, and it seems we do all agree, that this is an intolerable situation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000697\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EWhen the press release was provided in conjunction with the Budget documents yesterday, the Minister said, quite rightly\u2014and I quote\u2014\u201CI know the coronial system is under pressure and that is why we have introduced these measures.\u201D The question is begged, therefore, at what point did the coronial system come under pressure and why has it taken until now that these measures have been introduced? If it\u2019s the case that the system was under pressure\u2014let us say, in 2019, at the point that that excellent petition was put forward by Ms Taylor and accepted by colleagues in this House\u2014why has it taken until 2022 before any measures to alleviate those problems have been put forward?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000698\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EThe other question, or rather, point, in relation to the press release is that the Minister has told us that officials have been working closely with the Chief Coroner on ways to reduce delays in the coronial system. And I note \u201Cways\u201D\u2014plural\u2014implies that there are a number of different measures that will be offered up. That\u2019s good news if so, but, given that, effectively, we have one way of alleviating the pressures in this bill, namely the increase of coroners and more broadly coronial staff, as implied in the Budget funding, a point that Ms Swarbrick made quite rightly, my question then would be, of course, what other ways does the Government contemplate and when might we see those? So I\u2019ll leave my contribution there, at this point, except to emphasise, of course, that National, notwithstanding that we have concerns about the operations system more generally, does continue to support this bill and the measures in the Budget in this place. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022 data-id=\u0022457f4e410e2649d886fac711e5095204\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000699\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022457f4e410e2649d886fac711e5095204\u0022\u003ENICOLE McKEE (ACT):\u003C/span\u003E Thank you, Mr Speaker. I stand to speak on the second reading of the Coroners (Coronial Cap) Amendment Bill. I think that there are some figures that have already been mentioned that do need to be repeated just to put into context the tabled amendment that I have placed on the Table this afternoon. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000700\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EBetween 2018 and 2021, the average time to close a coronial case\u2014it took 42 percent of time to actually close it, and, as was mentioned, 321 days had been lifted to 455 days. In 2021, that actually averaged 494 cases, and we\u2019ve just heard this afternoon that it\u2019s even up on that in May 2022: that an inquiry is averaging 877 days to process; that an inquest is averaging 1,451 days to process\u2014and that is four years. We\u2019ve also heard through the Justice Committee where some cases have been waiting eight years on, and that is simply not good enough. As I mentioned earlier, I have tabled an amendment to look to increase the cap from 20 to 30. I had outlined earlier the reasons why, and that was the cap being set at 20 was when our population was at 4.2 million; now that our population is sitting at 5.1 million, we actually require 24.4 fulltime-equivalents to be able to cover the workload. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000701\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003ENow, the reason why we have suggested that the cap should be increased to 30, even though the Minister wants to ensure that we can have four coroners appointed immediately\u2014we respect that and we want that to stand\u2014but with the 30, it\u2019s because there have been concerns about the number of inquiries and inquests that are not occurring because of the backlog within the court system. So if we do not appoint or are not able to appoint quickly in the future more coroners for the Coroners Court, then there is a possibility that some of the inquiries and some of the inquests will not occur. Now, it is really essential that they do occur. The reason for that is because you have families that have questions about what happened to their loved ones. They wait for an inquiry or they wait for an inquest so that officials can delve into the reasons why their loved one has passed on. So to deny them that ability to take part in an inquiry or an inquest simply because we don\u2019t have enough staff to process it is, as my colleague said, denying justice to the families of individuals who are already suffering. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000702\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EThe delays will mean that there would be no inquests and no inquiries, as I stated before, and the stats have shown that when the bill went through last time to increase the cap, they thought they would reduce perhaps the inquests and inquiries by a number of 10 if we got an overload, but, in actual fact, it\u2019s ended up decreasing them by 10 percent, not 10 cases. And that\u2019s 10 percent too many for many of our families. It stops the families from getting the answers and from being able to have full closure about the death of their loved ones. If we have enough coroners within the system, we just may be able to get back to processing coronial cases within a six- to 12-month time frame. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000703\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EMy tabled amendment is not asking for the 30 coroners; it\u2019s asking for the cap to be increased. If it\u2019s not going to be accepted by the Government, I hope that through the committee of the whole House stage it can be explained to everybody why. We were told that the reason why we have had an issue is we\u2019ve had coroners retire and we\u2019ve had coroners that get sick. I think that\u2019s an important issue for why we need to lift the cap: so that we don\u2019t get into a situation of continued backlogs and the Minister having to come back to the House for more urgent bills. The ACT Party commends this bill to the House.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000704\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000705\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EBill read a second time.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u00224d439dd54a214ea6a01f2cf75fd67cc7\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000706\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00224d439dd54a214ea6a01f2cf75fd67cc7\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: This bill is set down for committee stage forthwith. I declare the House in committee for consideration of the Coroners (Coronial Cap) Amendment Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000707\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u002284cdf3675afa4d67a0f02cc512b972fb\u0022\u003EIn Committee\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u0022be33a2eb6e45475c88c83e8c0ff8010b\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000708\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022be33a2eb6e45475c88c83e8c0ff8010b\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: Members, the House is in committee on the Coroners (Coronial Cap) Amendment Bill. I won\u2019t bother going through some of the reminders. You\u2019ve heard them many times. So, members, we come now to clause 1, and the question is that clause 1 stand part.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022 data-id=\u0022789aa228132349769cfecc72f02f786c\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000709\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022789aa228132349769cfecc72f02f786c\u0022\u003ECHRIS PENK (Senior Whip\u2014National):\u003C/span\u003E Point of order. I seek leave of the committee that all provisions within the bill be taken as one debate.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u00226176cfda28c34206b9b67f1519ad58ee\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000710\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226176cfda28c34206b9b67f1519ad58ee\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: Leave is sought for that purpose. Is there any objection? There is none.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000711\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022092d8e6d8f60474489403f5c9ce37b49\u0022\u003EClauses 1 to 4\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022 data-id=\u00224d82aa216e4643fab68b09813d6edd93\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000712\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00224d82aa216e4643fab68b09813d6edd93\u0022\u003EHon AUPITO WILLIAM SIO (Minister for Courts):\u003C/span\u003E I thank my colleagues on the other side for raising that so that we can dispense with the bill as quickly as possible while also maintaining the ability to be able to respond to our colleagues\u2019 questions.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000713\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EClause 1 is really simple\u2014it\u2019s the title clause. The title of the bill is the Coroners (Coronial Cap) Amendment Bill. The title reflects the purpose of the bill, to raise the statutory cap on the maximum number of coroners.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000714\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EClause 2 is the commencement clause. The amendment Act will come into force on the day after the date of Royal assent. This will enable the recruitment of additional coroners to commence as soon as possible. Clause 3 notes that the principal Act to be amended is the Coroners Act.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000715\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EClause 4 is the substantial clause here, and that contains the only substantive amendment in this bill. Clause 4(1) amends section 109(1) of the Coroners Act 2006 to increase the maximum number of coroners that can be appointed at any time, from 20 fulltime-equivalent coroners to 22 fulltime-equivalent coroners. Clause 4(2) makes a consequential amendment to section 109(2)(e) of the Coroners Act 2006 to change the example that illustrates how full-time equivalents are calculated. The number given in the example has been increased from 13.5 to 21.5 to reflect the new maximum number of coroners.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000716\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EJust before I sit down, I do want to say, with the greatest respect to the ACT Party, that I\u2019m not accepting the Supplementary Order Paper as provided. I\u2019ve been advised that the Ministry of Justice modelling from November 2021 shows that the appointment of the additional four coroners should bring caseloads to within a manageable range. The ministry\u2019s modelling works on the basis that 3,000 active cases represents a sustainable caseload for the coronial jurisdiction, and this is based on historical data when the coroner was closing the same number of coronial cases as were entering the coronial jurisdiction each month. The number of active cases will never decrease to zero, because there is a minimum length of time a case will take to resolve, regardless of the amount of coroner resource. The appointment of more coronial resource is only one component of a broader work programme to reduce the coronial caseload and maintain it at a sustainable level.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000717\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EI\u2019ve heard members of the House raise issues about moving these things with urgency. I acknowledge that, and it\u2019s why this bill is specifically about these case numbers. But coronial inquiries, by their nature, can take time. For example, a coroner may put the inquiry on hold pending the outcome of another agencies\u2019 investigation\u2014for example, by the Police or Health. That is another piece of work that is not being debated here in this case.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022 data-id=\u0022e38df37223864831b85be7fe340a1d71\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000718\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022e38df37223864831b85be7fe340a1d71\u0022\u003ECHL\u00D6E SWARBRICK (Green\u2014Auckland Central):\u003C/span\u003E I appreciate the contributions of the Minister, just before, particularly in addressing the Supplementary Order Paper as tabled by my colleague Nicole McKee. However, I\u2019m not quite sure if I align with the rationale, and I\u2019d like to challenge it somewhat, as I\u2019m sure others may interrogate in their contributions.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000719\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ESo I\u2019m just asking the Minister and his officials in this very brief time that we have to consider this legislation\u2014and it\u2019s really important for those who are following along at home, for all of those unfortunate individuals tuned into Parliament TV that what we\u2019re looking at here is a piece of legislation that increases the maximum amount of fulltime-equivalent (FTE) coroners that may be appointed. That is not a minimum, and it is quite separate to the issue of budgeting for those coroners.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000720\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EThe point that the Minister was making just before around the estimations that he\u2019s got are from the Ministry of Justice around how an extra four would bring caseloads into something that is considered manageable. Per the contributions of other members, it would be really good to get a greater understanding of what \u201Cmanageable\u201D actually means, in terms of definition. I\u2019d note that he gave the example of around 3,000 cases being active as being considered sustainable; obviously a number of those cases come with different variables in terms complexity and other ways, which the Minister himself alluded to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000721\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ESo my question becomes: when we\u2019re looking at amending the legislation in order to align with the Budget of that increase of FTEs here, why is it the case that we did not settle on, for example, an amendment to the enabling legislation of raising the cap to, for example, a proportion of population so that we wouldn\u2019t in future need to look at again amending this legislation if it\u2019s the case that the Government next year or the year thereafter seeks to increase the funding the Budget, which again is a separate piece of legislation to what we\u2019re currently considering in terms of the very literal coronial cap? And if it is the case, as it is the case that we\u2019re here looking at a maximum of coroners, why, again, was it set at two?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000722\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EI note that the Minister was, again, alluding to the fact that, in current circumstances, that brings workloads into what is considered by the ministry to be manageable. But again, given that we\u2019re going to see population increasing and given that there are all of these other variables around the likes of complexity and otherwise, why was it not four or five, given that there is, obviously, in all Budgets, typically planning for several years in advance and for future caseload to come online?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000723\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ESo those are questions to the Minister\u2014around particularly why, in amending this legislation, it wasn\u2019t considered that we, for example, looked at a proportion of the population being represented in the coronial cap, or alternatively, look perhaps at something like a minimum so that future Governments would actually need to bring these coroners and fund those coroners in the aligned Budget. Why is it\u2014or rather, could he please provide greater information into those words as just put on Hansard around the likes of what it means to be manageable and what it means to be sustainable, given those other variables around complexity of cases and not just caseload?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u002240552180ba324643844285add85443ca\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000724\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002240552180ba324643844285add85443ca\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: I should have said, before I took the first call, that the question is that clauses 1 to 4 stand part.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022 data-id=\u0022844fd9769afd4508b18959778d86170d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000725\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022844fd9769afd4508b18959778d86170d\u0022\u003ECHRIS PENK (National\u2014Kaipara ki Mahurangi):\u003C/span\u003E Thank you very much, Madam Chair. I\u2019ve got a number of questions, some of which I\u2019ve already flagged at an earlier stage of the afternoon\u2019s debate in the spirit of helpfulness. I think I will start by acknowledging the point that the Minister made, which is a reasonable one. Of course there is a certain period of time that coronial cases will always be required to take. And, of course, for that reason we talk about average length of cases, and it\u2019s not right to highlight individual cases without the context. It\u2019s also not appropriate for MPs to talk about how individual cases are tracking to the extent that that might represent an intrusion on the work of the judiciary. So we do talk about averages and what we\u2019re interested in is the extent to which the average time to dispose of a case is greater than what would be reasonable given, as the Minister says, there are not only complexities with the cases themselves, but also other Government agencies might conduct investigations and so on.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000726\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EChl\u00F6e Swarbrick has rightly asked what \u201Cmanageable\u201D looks like in terms of the range, and that was a question that I would have asked, but I would also like to supplement that by asking: at what point does the Minister anticipate that the manageable range will be reached? So a supplementary there, effectively, to ask not only what but also when. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000727\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EI do want to acknowledge the discussion that\u2019s taken place across the House in different approaches to the cap. Whereas I\u2019ve said that National\u2019s approach would be to try and understand if there\u2019s any reason that there should be a cap at all, the Greens\u2019 point was around possible indexation of that, and it sounds to me sensible, acknowledging Ms Swarbrick\u2019s point that it might be a minimum rather than a maximum or a floor rather than a ceiling that is appropriate. And as the ACT member Nicole McKee has said in relation to the amendment in her name, there is the possibility of increasing beyond the increase that the Minister is already making, National is open to all of those and indeed actively supportive in the case of at least what Ms McKee has put on the Table.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000728\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EFinally, my questions are around the analysis that\u2019s been made. To some extent, the Minister has answered that. I do acknowledge at the start of the committee stage, he talked about that manageable range and, effectively, then it all does come down to the approach to reduce the backlog, whether that is an aggressive one to try and bring that down as soon as possible or really over a long period of time, which seems to me the approach if we\u2019re only increasing the cap by two. So I\u2019ll put those questions to the Minister and look forward to those and, no doubt, the rest of the committee does as well.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022 data-id=\u002269a8e1f77b044af4983951ac8c37d7cb\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000729\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002269a8e1f77b044af4983951ac8c37d7cb\u0022\u003ENICOLE McKEE (ACT):\u003C/span\u003E Thank you, Madam Speaker. Minister, I hear your response in regard to lifting the cap, and I just have a few more comments on that. I wonder, in a question to you, Minister, when your advisers have suggested that the number of cases will be under control, whether or not there is, or will be, key performance indicators set to ensure that we do not continue to have a reduction in the number of inquiries and inquests because we have enough coroners to be able to go through that huge case backload. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000730\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EI also wonder, Minister, why we are unable to lift the cap to 30 so that we are futureproofing the coroner\u2019s courts for other Governments so that they do not have to bring urgent bills, but, rather, can get on with business.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000731\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EAnd a final question for you, Minister. In your legislative statement, you said that there are seven fulltime-equivalent relief coroners and that they do not count as part of the cap. So I wonder, then, Minister, whether or not you can confirm whether you have, apart from the seven that you\u2019ve already suggested as the coronial registrars, more relief coroners on board to help when it has been reported by the Chief Coroner that part of the reason why we have a large backload is because of an unprecedented number of deaths. So if we have a higher population and we have, with COVID, deaths occurring as well, we have an increase in unprecedented numbers\u2014whether or not we would be able to manage that and whether or not we can guarantee that we won\u2019t have inquiries and inquests not being held because of that backlog. Thank you.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022 data-id=\u00222df28a163ed046d3aeca619bddcd22b5\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000732\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00222df28a163ed046d3aeca619bddcd22b5\u0022\u003EHon AUPITO WILLIAM SIO (Minister for Courts):\u003C/span\u003E I can confirm that currently we have 18 fulltime-equivalent coroners plus seven relief coroners who are not counted as part of the cap. So, at the moment, Budget funding has only been allowed for the four additional permanent coroners. I suppose that\u2019s why, but I also want to say that the appointment of more coronial resources is only one component of a broader work programme.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000733\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EWith the greatest respect, I\u2019d say to the House that we can debate this tool till midnight tonight. The problem is that it\u2019s a political solution that often fails to achieve what we\u2019re wanting to do. There is a comprehensive piece that\u2019s not part of this legislation that we will debate at another time.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u0022ceeabe77d8a04f7ba2b0c6a6a6e2ad18\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000734\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022ceeabe77d8a04f7ba2b0c6a6a6e2ad18\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: The question is that Nicole McKee\u2019s tabled amendments to clause 4 to increase the coronial cap be agreed to. \u003C/span\u003E\u003C/p\u003E\u003Ca id=\u00220c470e37a1124da7bdf393ad89607410\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the amendments be agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 52\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 32; Green Party of Aotearoa New Zealand 10; ACT New Zealand 10.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 65\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand Labour 65.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAmendments not agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u002243a9764daa5c4684a3f0c3207bed7857\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000735\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002243a9764daa5c4684a3f0c3207bed7857\u0022\u003ECHAIRPERSON (Hon Jacqui Dean)\u003C/span\u003E: The question is that clauses 1 to 4 stand part.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000736\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003EClauses 1 to 4 agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000737\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003EBill to be reported without amendment.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000738\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003EHouse resumed.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022 data-id=\u00221467719e27c7489a8948ae916c8b695d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000739\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00221467719e27c7489a8948ae916c8b695d\u0022\u003EASSISTANT SPEAKER (Hon Jacqui Dean)\u003C/span\u003E: Mr Speaker, the committee has considered the Coroners (Coronial Cap) Amendment Bill and reports it without amendment. I move, That the report be adopted. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000740\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000741\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a25943b-cb3b-49c3-bd10-74316fae17f1\u0022\u003EReport adopted.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000742\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022710f6ee0966f4d25a61438d24b31bfc2\u0022\u003EThird Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022 data-id=\u0022bdeaf65e65aa48ad9bb9aaf9ab762740\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000743\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022bdeaf65e65aa48ad9bb9aaf9ab762740\u0022\u003EHon AUPITO WILLIAM SIO (Minister for Courts):\u003C/span\u003E I move, That the Coroners (Coronial Cap) Amendment Bill be now read a third time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000744\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EI do want to genuinely thank members for the commentary afforded from across the House. As I\u2019ve said before, this bill will increase the maximum number of coroners that can be appointed at any time to 22 fulltime-equivalent coroners. This will enable the implementation of Budget decisions to fund an additional four coroners. An amendment is being made under urgency to enable the recruitment of the coroners to be begin immediately. The new coroners will be appointed by the Governor-General on the advice of the Attorney-General.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000745\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b398827c-6bf5-403e-90dc-ff03205302a5\u0022\u003EThe coronial system has been under pressure to keep pace with the number of cases being accepted into the jurisdiction, and this has meant that wh\u0101nau and families have had to wait longer to receive the findings from coroners. The additional coroners provided through the Budget and enabled through this bill will support coronial cases to be considered more quickly and will alleviate some of the distress felt by families and wh\u0101nau who are grieving the loss of a loved one in difficult circumstances, but that is only one part of a more comprehensive approach so that the solution is lasting. I commend this bill to the House\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u002263122a40813e47bf812e729761965031\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000746\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002263122a40813e47bf812e729761965031\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: The question is that the motion be agreed to.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022 data-id=\u0022a01775a5d75340368eb75019abd402c6\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000747\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022a01775a5d75340368eb75019abd402c6\u0022\u003ECHRIS PENK (National\u2014Kaipara ki Mahurangi):\u003C/span\u003E Thank you very much, Mr Speaker. Thank you to the Minister Aupito William Sio. Thanks to all who have taken part in what I think\u2019s been a really constructive and collegial debate.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000748\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003ESo far as I\u2019m concerned, as National Party\u2019s courts spokesperson, we\u2019ll always be open to supporting measures that are made in good faith and will have a positive effect on the court system, including in this case, as we\u2019ve said, a step in the right direction\u2014albeit a small one\u2014to reduce the backlog in the coronial system. We\u2019ve talked about the implications for Kiwis of the current backlog: the emotional, financial, and social problems caused by those, and indeed, the distress to those caught up in the system who have lost loved ones suddenly, unexpectedly, and who deserve answers as soon as reasonably possible.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000749\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EThe National Party has made its position \u201Ctolerably clear\u201D, in the delightful phrase of my friend and former colleague the Hon Christopher Finlayson QC. And having made that tolerably clear, I repeat only for the sake of the record at this, the third reading, that we think that increasing the cap is worthwhile. Perhaps removing it altogether would be even more helpful, and we support the increasing capacity\u2014not only the appointment of additional coroners but also coronial staff, to use that shorthand, as implied by the Budget funding announcement of yesterday.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000750\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f96cdca1-b63c-4602-b2b3-276f58ebb518\u0022\u003EThis is not the end of the matter in terms of what is needed to improve the coronial system. It is not even necessarily the beginning of the end of the matter. It might be, at least, however, the end of the beginning, which is to say it\u2019s a good start, the National Party supports it, and we look forward to further discussions with the current Government and any other players who wish in good faith to improve the lives of Kiwis in this regard. We commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022 data-id=\u0022fec279fc0bb14a48b30ada906eb877e4\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000751\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022fec279fc0bb14a48b30ada906eb877e4\u0022\u003ECHL\u00D6E SWARBRICK (Green\u2014Auckland Central):\u003C/span\u003E E te M\u0101ngai, t\u0113n\u0101 koe. T\u0113n\u0101 koutou e te Whare. The Greens, of course, will be supporting this legislation this evening. I just want to, once again, put on record a huge congratulations to Life Matters Suicide Prevention Trust, and to Corinda Taylor, who, of course, tabled a petition on this issue amongst a context of many others around the coronial system and the support for particularly suicide-bereaved families and wh\u0101nau back in 2019.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000752\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EAgain, I want to acknowledge that they did that immense amount of advocacy and work to try and make the system work better for those who are grieving while they themselves were occupied with that grief and with those delays in the coronial and the justice system. The point made by my colleague Harete Hipango about how justice delayed is justice denied, I think very much continues to echo throughout this debate.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000753\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EIt\u2019d be remiss of me not to address the points that were made in the committee of the whole House as we wrap up this debate tonight. I just again emphasise that what we\u2019re talking about with the Coroners Act is a piece of legislation which is quite unique in that it limits how many people in this country can have the job of doing these kinds of inquests and inquiries. That\u2019s quite unusual in that it doesn\u2019t come with a floor or a minimum that is required to be funded by any given Government of the day.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000754\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EThis sits alongside, obviously, the Budget legislation, which empowers the spending to do the things that this legislation seeks to do in terms of increasing fulltime-equivalents (FTEs). But, once again, I think it is a lost opportunity not to be looking at potentially benchmarking the number of coroners in this country to, for example, a proportion of the population or increasing the cap\u2014as proposed by my colleague Nicole McKee\u2014to 30, given that that initial FTE allocation in the original Act, which we\u2019re of course amending tonight, was set when the population was 4.2 million.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000755\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EIt is the case that under Budget urgency, and urgency in general, we\u2019ve just gone through the entire process of passing a bill through first, second, committee of the whole House, and third reading\u2014bypassing the select committee stage\u2014in less than two hours. The process for a bill like this usually takes somewhere between six and 12 months\u2014sometimes even longer if we have to take serious consideration through select committee, engage with the Business Committee for extensions and officials to work through this process.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000756\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ESo I want to, and we need to, acknowledge the Minister and for his mahi and obvious advocacy around the Cabinet table for increasing the amount of coroners in this country. It is still the case that it feels like quite a lost opportunity when, in future, we are going to need to amend this again and there\u2019s going to be a lot of delays again.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000757\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003ESo I support this piece of legislation. It goes quite some way to addressing the concerns of those who have been so let down by the justice and the coronial system\u2014not, I think, for\u2014for any lack of trying for those who exist inside the system, but because a lack of resourcing to get through the immense caseload that sits on their desk.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000758\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dbaac12b-3efa-4d95-a08d-f0f637a48bab\u0022\u003EJust in closing, again, need to acknowledge those who\u2019ve been advocating for this for so long now. We\u2019ve done it. Kia ora.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022 data-id=\u0022f5dc55155f2e4bdaa71bda086281009f\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000759\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f5dc55155f2e4bdaa71bda086281009f\u0022\u003ENICOLE McKEE (ACT):\u003C/span\u003E Thank you, Mr Speaker. I\u2019d like to begin my third reading speech by acknowledging the Minister and the work that he has been doing to ensure that we can actually get this backlog completed, or at least processed in a very timely manner. I would have hoped that, as my colleagues have suggested, we could have been able to make a maximum number rather than a smaller amount, to increase the cap, or to make it increase with population. That would have been a way that we could futureproof the processes going forward. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000760\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EI do acknowledge that the Minister has said there is a bigger piece of work that is coming in this space. Minister, I do hope that you will reach out to the parties across the floor here, because you will realise, after today\u2019s debate, that you have our support to make sure that we can process any future legislation to ensure that we can give families some closure as quickly as possible. Because if we are able to support a good initiative, we most certainly would like to. At the end of the day, it\u2019s about our communities, it\u2019s about our families, and when they\u2019re grieving for up to four years through an inquest, up to eight for some others, we need to give them that closure quickly.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000761\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EI don\u2019t want to take up too much more time, but I\u2019d like to hope that any future legislation is looking at futureproofing. What we will be seeing, especially if we have another pandemic or a flu go through\u2014if we have more deaths we don\u2019t want to be coming back to this House to have to do this again. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000762\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EBack in my early twenties I worked for the coroner in Rotorua. His name was Roger Brewster and he was with the firm East Brewster, where Paul East, who was a former member of this Parliament, and Roger Brewster worked. Back in that day it was absolutely horrifying to be putting together a lot of the documents that the coroner needed, and I know and felt the suffering of so many families as they went through that process. I\u2019ve been quite passionate about this particular one, because to think that some are waiting up to four years to go through that inquest, I can just imagine how heartbreaking it is.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000763\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EMinister, I commend you for making a start, for doing it under urgency, and for having four coroners ready to go and work on that backlog. I thank you for that. I just hope that in the future we don\u2019t have further delays, and perhaps in the next part of your work we can assist you to ensure that that does not occur. We do commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000764\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000765\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002258baa209-edaf-42a5-92d6-b2613c144bfb\u0022\u003EBill read a third time.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022 data-id=\u002245de311c720e47598d7ae97aeea1ec89\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000766\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002245de311c720e47598d7ae97aeea1ec89\u0022\u003EDEPUTY SPEAKER\u003C/span\u003E: Members, before we finish, can I just acknowledge all members for the work during urgency. In particular, can I acknowledge the Opposition whips and the Government whips for keeping the presiding officers informed of progress during urgency, and can I thank the Office of the Clerk and the Chamber staff and Hansard. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000767\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003EN\u014D reira, kia koutou katoa. Ka nui te mihi atu ki a koutou. T\u0113n\u0101 r\u0101 t\u0101tou katoa. The House stands adjourned until Tuesday, 31 May 2022. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20220519e502ba738e9d45c592623f2200e8910c000768\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a434482b-7ac1-4862-9ce7-13e63289dee3\u0022\u003EThe House adjourned at 5.26 p.m. (Friday)\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n  \u003C/body\u003E\n\u003C/html\u003E"