Excise and Excise-equivalent Duties Table (Budget Measures—Motor Spirits) Amendment Bill

Thank you, Madam Chair. I would like to raise a couple of comments on Part 2, as we conclude quite an extraordinary day.

💬 Hon Aupito William Sio: Give it some heart, Todd.

No, sometimes it’s worth deep reflection. And this is a day that I am sure will be reflected on by many for years to come, and “botched” sums it up perfectly.

I would like to raise two questions, specifically to the Minister of Transport, with respect to Part 2, to remind people we’re talking here about clause 5 and the rate of excise duty and excise-equivalent duty on motor spirits amended. We’re talking now about lifting from 66c—remember this has gone from 62c to 66c, and now 70c, with the changes that are explicitly outlined here in this clause. So, specifically, my question to the Minister relates to the modelling that he has done, or his officials have done, around demand elasticity and the point at which you load so many taxes on a particular part of society that your demand assumptions are proven false.

I think there is every chance that the revenue assumptions that have been built into this increased tax that we’re debating here tonight will be proven flawed because (a) of the regressive nature of it, and (b) the assumptions both in terms of amount of petrol consumed, if you like, by the national fleet may well actually not meet the expectations because the cost impost has become so great that it is starting to affect New Zealanders’ ability to be able to access fuel for their transport. So I would certainly like some comment from the Minister around that analysis.

Debate interrupted.

Sitting suspended from 10 p.m. to 9 a.m. (Friday)