Back to the Beehive

Parliament has its first sitting next week, so it is back to being in the full swing of things in the Beehive. In fact, Cabinet meetings recommenced in January, and I have been out and about throughout Botany and the country assisting with constituents' issues and attending many events. The two-week break is a distant memory, but I did have the opportunity to explore the many home-grown wonders that we have on offer here in Botany.

The clear priority for the Government in 2010 is to increase growth and productivity and continue to steer our great country out of the worst global recession since the 1930s.

Last year, our focus was on protecting jobs, and while unemployment is still expected to rise in the first part of this year, our focus has paid off, with the jobless rate tracking well below forecasts. The latest Household Labour Force Survey shows that job numbers have stabilised, however the number of people joining the workforce has increased, accounting for the rise.

While we were focused on jobs we also set out a comprehensive programme to lift the long term living standards of New Zealanders. Last year, the Government established two key taskforces to improve investor confidence and promote economic growth, which have recently reported back.

The Capital Market Development Taskforce assessed how capital markets have been performing and what improvements can be made. Their report focuses on delivering better outcomes for investors, in both the quality and range of products available, and developing and growing access to capital for businesses.

The Government will look closely at some of the recommendations as part of the current review of the Securities Act and the wider work programme for the financial sector. Our capital markets cannot be allowed to under-perform. They are a key means of wealth creation for New Zealanders and a vital source of finance for businesses. 

The Tax Working Group identified a number of issues with the structure and sustainability of the current tax system. Their report suggested our tax system is too heavily weighted towards taxes on wage earners and companies and that these taxes are the most damaging to growth.
It also says tax on consumption is low by international standards and there is a large gap when it comes to investment property. The report suggests changes to the tax mix to create a better tax system.

The report also noted the misalignment of tax rates which encourages the use of trusts and companies to shelter income that would otherwise be taxed at the higher personal tax rate. This is unfair to the wage and salary earner who is then left to bear a disproportionate share of the personal tax burden. The top 10% of taxpayers now pay 76% of net tax, if the impact of Working for Families, New Zealand Superannuation and other benefits are taken into account.

This Government believes that our tax system should reward effort, encourage savings and help families to get ahead. Any changes we adopt would have to meet tests of equity and fairness, alongside delivering benefits for households and the economy.

Volunteers are the heart of our community

On 30 January, I had the pleasure of meeting with the Fo Guang Shan South Island volunteers for their Chinese New Year celebration in Christchurch.

It was a great opportunity for me to say thank you to them for all the hard work they have put into ensuring that our community continues to grow.

Volunteers and charitable organisations are a crucial part of any community and it was humbling to be among a group of people who are so dedicated to helping out others from within our patch.

New Zealanders are generous people. An estimated 1.3 million people take part in voluntary activities and donations to charities and other non-profit organisations amounted to $356 million. In 2007, the Government removed the current $1,890 rebate threshold on donations made by individuals and the 5 per cent deduction limit on donations made by companies.

The National-led Government is committed to promoting a culture of generosity and giving, and getting behind the community and voluntary groups that make a real difference in our communities. And that is why we have kicked off the New Year by starting our Payroll Giving Scheme.

Under this voluntary scheme, employees can donate to worthy charities automatically from their pay packets. For every dollar an employee donates, they will receive a third of it back automatically through a tax break.

The automatic payment coming out to the pay packet means that people who donate in this way will not have to collect receipts and submit claims at the end of the tax year and that they will get instant recognition for their kind donations.

More than 18,000 community organisations have already been approved by Inland Revenue to receive donations under the Payroll Giving Scheme, which is a low-cost and effective way to donate to organisations such as charities, schools, and other local initiatives.

As well as helping out worthy causes, it also helps businesses and their staff to build closer connections within their community to the benefit of our economy. The more we can give through steady, committed donations to organisations, the more financial certainty those organisations will have to support our communities.

Our patch has celebrations aplenty

Tomorrow, Barry Curtis Park will host Auckland's largest Waitangi Day celebrations as our country comes together to mark the day the Treaty of Waitangi was signed.

Over the past year or so, I have visited Barry Curtis Park for a number of functions and events and it is an outstanding place to host public events and the perfect choice for Waitangi Day celebrations.

We are also approaching the Chinese New Year celebrations at the TelstraClear Pacific Events Centre on 13 February 2010 from 3pm to 11pm.

This will see the skies above East Auckland sparkle with a fantastic fireworks display. There will also be cultural dances and performances, traditional and modern music, arts and crafts, Asian food, as well as games organised indoors and outdoors within the venue.  Magic and a variety of ethnic performances will also add colour to this year's carnival.

Let's hope that the warm, beautiful summer weather continues as we continue to celebrate.

Hangi with his Highness

On 17 January, the warm balmy weather provided a perfect backdrop as Prince William visited New Zealand and got a taste of a traditional hangi - which I'm sure many will be enjoying tomorrow for Waitangi Day.

It was a pleasure to meet and talk with the second in line to the British throne about a range of subjects - including his charity work with the homeless (where he famously slept rough for a night on the streets of London) and his "Harry Potter Scar" on his forehead.

He is a tall, strapping young man who represents the Royal family well.