Vale David Parker MP
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2:08 pm, May 8th, 2025 - 20 comments
Categories: capital gains, climate change, Conservation, david parker, Diplomacy, economy, electoral systems, equality, human rights, labour, leadership, Left, monetary policy, Parliament, socialism, tax, water -
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David Parker’s Deputy Leader ‘s speech in 2014 at the Wellington Labour Party Conference for me ranks as the best I ever heard from a Labour Leader. Vision matched values in intensity and scope. Parliament now loses one of its very best.
I supported him for Leader in the contest following the 2014 election debacle. Besides the above attributes, Cabinet experience in some very demanding portfolios also marked him out from the other contenders. The anomalies of the selection procedure delivered a 10% union hole card to Andrew Little for a 1% win over Grant Robertson.
There are some in Parliament who do not make it to the top, but whose record of delivery marks their outstanding contribution. In her remarks at the valedictory post-match function, Helen Clark stated how she valued David as the person to whom some knotty policy problem could be handed, sure in the knowledge that the would be carried through to a wise and successful conclusion.
David’s valedictory repeated so many of the themes in the 2014 one; not a surprise because he is what he said he is, a politician of egalitarian conviction. Also unsurprisingly, he said it best himself:
Arena Williams recently surprised me by saying “You’re different”. I asked “How?” “You don’t need affirmation and so you’re happy to disagree.” It can be a weakness, too, yet officials thrived on it. That’s who I am: a conviction politician, clear in my values, my ideology; no communist, part capitalist, part socialist, class not race, and I’m 100 percent sure Labour’s my place. I’ve fought many battles. I’ve stood on principle, I’ve won, and I’ve lost. But I leave here knowing that on environment, civil liberties, and most precious of all, a prosperous, egalitarian society, I’ve tried to move the dial.
As far as I am concerned there is more than a twinge of regret at David’s departure from the Labour caucus. He is just turned 60, an age where when experience joins competence amazing things can result. In my opinion the Labour caucus has not always been good at using that talent to their advantage and our deliverance. I think of Ruth Dyson as another one who was moved down the prep school pecking order at a time when she had much to offer.
And perhaps the greatest regret is for what might have been in the reshaping of our tax and revenue policies. David’s speech will be mined for many years for its insight, no more so than on the issue of the tax.
Labour income is taxed; most capital income of the very wealthy is not. New Zealand, now, is a tax haven for billionaires. Their assets commonly sit in intergenerational trusts. The top 1 percent own 26 percent of everything. For investments outside the family home, it’s much more. The 1 percent owns over 60 percent of all direct New Zealand investment in New Zealand private and public companies—astounding.
Piketty was right. The wealthy earn much more than they spend, and they hoover up much more each year. R is greater than G—their rate of return is higher than growth in the economy. We’re fast becoming what my ancestors came here to escape.
The revenue-neutral tax which I proposed is sometimes described as a wealth tax, but it’s better seen as a tax on income from capital. Think of it as an average rate of return of 4.5 percent taxed at a third. In fact, it’s less because the family home and contents, plus an additional $5 million of investments each—$10 million for a couple—were excluded. It’s always been difficult to convince the other side on tax. At times, I’ve found it surprisingly hard on my own side too.
Now, there’s a debate about the relative merits of a capital income tax or realisation-based capital gains tax (CGT), which I’ve also advocated for, and either solution is good. And, yes, if I had my way, we would have both with appropriate credit for one against other. Capital income would not be double-taxed. That would allow everyone to get the first $20,000 income tax free, $10K immediately, and the next $10K phased in as CGT revenue grew. I’d fix interest deductibility again, and I’d let everyone inherit $1 million tax-free, be it from trusts or deceased estates. Then I’d treat the rest as income and tax it as such. None of these rates would be high. A broad-based low rate would at last be true.
Of one thing however we can be sure – we have not heard the last of David Parker. And for that we can be very grateful.
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I'm looking forward to David Parker in his next iteration.
He's done a good job that made a difference.
And yes I sure liked his farewell address, as well as his 2014 one when he was having a tilt.
But.
I'm hoping however that iteration is not in politics. The work he put into Blis Technologies and A2 Milk back in the day is testament to someone who really can push a startup hard, and now really are proud Otago successes.
What this country needs is better leadership in gutsy startups from people that are experienced in the machinery of government as well as of commerce.
So David when you read this I hope you put your valuable commercial and governance experience right back where it's needed.
I agree 100% Ad. David is a good person as well. Go well and enjoy your next chapter David.
I take Parker's warnings about inequality as seriously as I take his warnings about the dangers of A1 milk.
I take your comments as seriously as I take BS from trolls. Do you really want attention from Mods?
What warnings did he make about A1 milk?
A2 milk is a variety of dairy milk that may be easier to tolerate if your body has issues with A1 beta-casein.
When Parker was Chief Executive of A2 Corporation, its position was that A1 milk increased risks of diabetes, heart disease, autism and schizophrenia. It believed this strongly enough to sue Fonterra to put warning labels on A1 milk.
https://www.womenshealthcouncil.org.nz/a2-milk-story/
Well, is it?
[Typical troll behaviour. This is your only warning to stop trolling – Incognito]
Mod note
OK, let me expand. David Parker promoted an utterly baseless pseudoscience as Chief Executive of A2, which makes me suspicious of his warnings about other issues.
[Ok, let me ban you for a month because you keep repeating your unsupported claims about Parker related to company affairs. You paint Parker as untrustworthy on completely unrelated issues without any evidence to support your belief either. Lastly, you keep milking it till it curdles despite multiple hints + a Mod note to stop your diversion trolling. Bye for now – Incognito]
Mod note
Tenuous reply. Can you now focus on the OP and Parker’s career as MP?
Sure, he was Minister of Revenue, strongly supported a wealth tax, and got absolutely nowhere. Probably a lesson there.
CGT on any adults 2nd or more house. IE every adult tax free in first house. Couple can own a Bach or ONE rental. No trusts, no companies can own houses. Simple clear.. take the heat out of the market and fill the empties. Easy AF to implement. No complex wealth tax. Yours sincerely RWNJ
Just a bright line test doesn't bring in anywhere near enough money, though I agree a 20 year bright line test should be brought in (excluding main home) as recommended by the treasury.
A Wealth Tax along the lines of the one supported by Parker or the one supported by the Greens is the only way real progress can be made in reducing the stranglehold on wealth the top 5% have been the beneficiaries of over the last 30-40 years.
The Wealth Tax could be used to fund the public health service which needs an extra $8 billion annually.
I support ringfencing extra taxes for health budget.
Easy to implement via ACC mechanisms.
Coverage of sickness is long overdue.
The very rich will do anything to keep hold of their money.
Wall Street Journal (8 May) carries a story of whistleblowers at Credit Suisse bank who reported the bank had not followed terms of a settlement it made with US tax authorities.
Instead of fully disclosing the US accountholders who had dodged US tax, Credit Suisse tried to help them divert funds to other banks without letting on they were US citizens.
The whistleblowers stand to get $150 million collectively for uncovering the con. They remain anonymous because under Swiss banking law they risk prosecution.
https://www.rnz.co.nz/news/business/560481/inland-revenue-discovers-millions-in-unpaid-tax-from-property-developers-and-investors
The COC prefers to pay women unfairly rather than chase their tax fiddling mates.