Frank Newman: Straight talk - Oh dear: Deborah Russell

Deborah Russell is the Labour MP for New Lynn. She is apparently, a tax expert and a well respected academic - respected by whom is not clear. 

These things she may be, but based on her comments about the collapse of small businesses she does not seem to have much comprehension of what it’s like to run a business and nor does she seem to have much empathy with people who actually contribute the wealth that she and her colleagues consume.

I presume the point of her comment was to state that there will be some people who are so hopeless at running a business that they have not been able to build up short-term resilience against an adverse event. She does not seem to appreciate those businesses are relatively few, and she is well off-the-mark to even think out loud on that issue in the midst of a nationwide shut-down.

Someone who claims to be a tax expert should understand that all businesses require revenue to survive. That may be an alien concept to a cotton-wool socialist who in November last year said she would like New Zealand to be "the most equal country in the world – full stop… I want to aim for real, radical equality because I think that is how you get a decent functioning democratic society".

As a tax expert, she should also know that there are many reasons why a business may not have the resources to operate without income. If that's a bit hard to grasp, Ms Russell might like to imagine what these past four weeks would have been like had she not received her taxpayer-funded salary. I expect she would have enough money tucked away in the taxpayer subsidised super scheme to not be affected, but others are not so fortunate.

As a tax expert, Ms Russell will also be aware that all of the costs of collecting GST, PAYE, and so on that fund her salary is paid by businesses and small business feel the burden of that cost and unproductive time more than others.

Perhaps Ms Russell should also be reminded that as an MP she adds zero income to GDP. MPs produce nothing and for the last four weeks have continued to receive a very attractive salary while workers in the private sector have taken pay cuts, some have lost their jobs, and businesses have lost huge amounts of money. Those businesses are not bleeding money because they are poor operators. COVID-19 is not of their making, and it’s the government, of which Ms Russell is a part, that has decided to "go hard" and close the economy down.

Deborah Russell is said to be a shining star in the Labour Party and she does have a senior role as chair of Parliament's Finance and Expenditure select committee, which would suggest her star is, or was, on the rise. For that reason, it is more important that she take the time to consider that everyone benefits from a strong business sector, including government because the politicians in power grab 28% of the profits to not only spend on things that matter like health, welfare, and education, but also on their numerous pet projects – many of dubious merit. As a tax expert Ms Russell should have been able to figure that out by now. 

She could even consider the merits of lower taxation as an economic stimulus, but that may be simply too far-reaching for some-one who preaches radical equality. Or what about reducing MP salaries to the average wage? But then wasn't it the pigs in Animal Farm who proclaimed, "All animals are equal, but some animals are more equal than others". 

Frank Newman, a writer and investment analyst, is a former local body councillor.