MP fails in bid to remove GST from healthy food | Hawkes Bay News | Local News in Hawkes Bay

The Maori Party's bid to have GST removed from healthy food failed in Parliament on Wednesday night when Rahui Katene's member's bill was defeated 64-56 on its first reading.

The MP put up a strong argument, saying it would make a big difference to the health of low-income families who couldn't afford to pay exorbitant supermarket prices for fruit and vegetables.

Ms Katene said food prices had increased 20 percent over the last three years while wages had barely moved.

``There are huge mark-ups on some items, in some cases 500 percent, and those prices really hit low-income families hard,'' she said.

The bill defined healthy food as fruit and vegetables, breads and cereals, milk and milk products with some exceptions like ice cream, lean meat, poultry, seafood, eggs, nuts, seeds and legumes.

Labour said it would back the bill on its first reading so it could go to a select committee and the public could have a say on it.

But the Government didn't want to know, and National MPs said exemptions would damage the integrity of an efficient GST system which was envied by many countries.

They also said there was no guarantee that prices would fall if GST was removed and definitions would become a nightmare.

``The markets get the prices that are charged now and they would continue to get those prices,'' said National's David Bennett.

Labour leader Phil Goff said healthy food was going to be even more expensive when GST went up to 15 percent in October and National was scared to have a public debate.

National, ACT and United Future voted against the bill. Labour, the Greens, the Maori Party and the Progressive Party supported it.