Speech: Taxation (Canterbury Earthquake Measures) Bill
te-pati-maori
Fri May 20 2011 12:00:00 GMT+1200 (New Zealand Standard Time)
Speech: Taxation (Canterbury Earthquake Measures) Bill
Friday, 20 May 2011, 7:19 pm
Speech: The Maori Party
Taxation (Canterbury Earthquake Measures) Bill
Rahui Katene, MP for Te Tai Tonga
First reading
Friday 20 May 2011; 5.15pm
I am proud to stand to this Bill to discuss the proposed measures to deal with taxation issues arising from the earthquakes that occurred on 4 September 2010 and 22 February 2011 and affected the entire Canterbury region.
This Bill is absolutely necessary to enable the communities of Christchurch to respond to and recover from the impacts of the Canterbury earthquakes.
There are dual purposes – the restoration and rehabilitation of communities left shattered by the natural disaster – and the rebuilding of the greater Christchurch area.
The Maori Party has actively supported the rebuilding of the Maori community in Otautahi.
In doing so, we have been very aware of the impressive iwi contribution to recovery effort of this scale. Iwi organisations sent donations and people to support relief efforts including roopu from Te Arawa; Tainui and Ngati Rarua. Enormous containers of supplies were distributed from Pipitea marae here in Wellington. IN short there has been a systematic effort by iwi to relief and reconstruction.
In the immediate aftermath of the quake, Marae opened their doors to all people in search of refuge, food and compassion. The marae in Otautahi became Command Centres for different agencies – Maori sectors of the police, fire service, health providers, Te Puni Kokiri, Maori media, Ngai Tahu and so on.
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Seventy Watene Maori assisted police and non government organisations checking on people in the hotspots In other rohe – Takitimu, Te Arawa, Tai Tokerau – whanau arrived either in transit or returning home to an uncertain future.
And of course this weekend we are all gearing up for the Global Telethon being led by Maori Television – Rise Up Christchurch – Te Kotahitanga.
I was really moved by the words of MTS Chief Executive, Jim Mather,
Rise Up Christchurch – Te Kotahitanga will inspire and unite New Zealanders across the globe to support the people of Christchurch as they ‘Rise Up Christchurch’ from this challenge that Papatūānuku has presented.
This Bill then, the Taxation (Canterbury Earthquake Measures) Bill falls well within the context of the leadership that Maori communities and whanau have already shown in leading up to this point.
We must ensure the Canterbury Earthquake Recovery Authority learns from this history; leans on this leadership.
And we can apply that same thinking to the proposed measures to deal with taxation issues arising from the earthquakes.
A focused and timely recovery of greater Christchurch and its communities will be assisted by all of us pitching in.
So we support the intention of this bill to
exempt from income tax and fringe benefit tax certain welfare contributions made by some employers to their employees in the two months after each of the two big earthquakes;
provide income tax and gift duty relief to businesses that donated trading stock with the intention of helping alleviate the impact of the Canterbury earthquake and its aftershocks from the 4 September 2010 to 31 March 2012;
provide a discretion to exclude from the “other payments” category of income for Working for Families certain payments made to people adversely affected by the Canterbury earthquakes and similar events; and
and extending the redundancy tax credit by six months to 30 September 2011.
These proposals will work in many ways.
It is proposed that a tax exemption apply where targeted welfare, in the form of cash (including pro rata payments to Canterbury staff) and/or goods or services has been provided to known staff.
Some employers have provided emergency accommodation for their staff. It is also proposed that this be tax-exempt.
Some employers have made welfare contributions that fall into sundry benefits available to all staff; and targeted welfare to known recipients.
It is proposed that these welfare-type benefits be tax exempt for compliance and equity reasons where they are unclassified benefits; generally available to all staff; and provided in the eight weeks after both the Canterbury earthquake and the Christchurch earthquake. These benefits have an obvious welfare intention.
Mr Speaker, in essence this bill is both pragmatic and technical in its application.
In having said so, however, I would be very interested to learn from the Minister what the response of mana whenua has been to the provisions included within.
In a recent submission to Parliament, Te Runanga o Ngai Tahu stated, and I quote:
“Like the Crown and Local Government, we are a perpetual presence, with histories, aspirations and accountabilities to contribute to the recovery and rebuilding of Christchurch”.
The Maori Party has therefore been very pleased that Te Runanga o Ngai Tahu is explicitly stated as one of the entities that the Canterbury Earthquake Recovery Authority must work alongside and that Ngai Tahu and other Maori will be included in the community forum.
Mana whenua must remain essential part of the Recovery Strategy and have help to lead development of CBD Recovery Plan and other statutory plans.
To this end, whether it be about employer welfare contributions; targeted welfare; tax relief for donated trading stock; tax relief for other categories of income for Working for Families; or a redundancy tax credit – such details should still benefit from ample consideration with Ngai Tahu as to their application.
We are supportive of the measures included in this Bill, and we believe they represent a commitment to doing whatever it takes to enable the people of Christchurch every opportunity to respond to and recover from the impacts of the Canterbury earthquakes.
We are happy to support this Bill.
ends
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