Smith Lockwood: Taxation (Annual Rates Maori Organisations Taxpayer Compliance and Miscellaneous Provisions) Bill — Instruction to Committee In Committee 
Smith Lockwood: Taxation (Annual Rates Maori Organisations Taxpayer Compliance and Miscellaneous Provisions) Bill — Instruction to Committee In Committee 
[Volume:606;Page:4087] 
Dr the Hon LOCKWOOD SMITH (NZ National—Rodney) 
: 
 This is the start of the Committee consideration of a very important bill. Clause 1 of course is the title and this bill has been called the Taxation (Annual Rates Maori Organisations Taxpayer Compliance and Miscellaneous Provisions) Bill. There is always a bit of a debate about whether a bill’s title accurately reflects what is in it. The title of this bill at least makes an attempt to describe what is in it—one has to comment reasonably positively on the fact that it does make an attempt—but is it accurate? I refer to the first part of the title which concerns annual rates. It might have been more appropriate to state what this bill actually does—it confirms very high annual rates. 
If we look at the most recent publication of  
The Economist 
 we will see that although New Zealand may not rank in the top half of the OECD in terms of growth rates it sure as hell does in terms of tax rates on working families. In fact New Zealand ranks sixth in the OECD. This bill is confirming those tax rates so it would be slightly more accurate to call this bill the “Taxation (High Annual Tax Rates) Bill” or the “Taxation (Sixth in the OECD Annual Tax Rates) Bill” because that is what the latest data from the OECD shows. The latest data from the OECD shows that the direct tax burden on a working family in New Zealand is the sixth highest in the developed world. I am surprised that a Labour Government would want to confirm under this legislation those kinds of tax rates on working families. Labour claims to support working families. We are getting used to this Labour Government claiming all sorts of things. There is lots of rhetoric and lots of political spin but no action and everyone is starting to realise that now. People listen to Prime Minister Helen Clark with one ear because they know that what is going on behind the scenes is something totally different. That is why it might be more appropriate for the title of this bill to refer to the high annual tax rates that are being confirmed. 
The next bit of the title is: “Maori Organisations”. What that does not tell us is that a large number of members of this House consider that that the part of the bill covered by that part of the title is introducing a racist piece of tax legislation. Therefore it might be more appropriate to call the bill the “Taxation (High Annual Rates Racist Rates) Bill” because under the “Maori Organisations” bit of the title special tax rates are being conferred on the basis of race. 
Clayton Cosgrove 
: Rubbish! 
Dr the Hon LOCKWOOD SMITH 
: I invite Clayton Cosgrove to take a call and name one person in New Zealand other than a Maori person who can gain any benefit from the special tax rate being imposed under the bit in the title called “Maori Organisations”. If he can name one person in the whole of New Zealand other than a Maori person I will stand and apologise. I give the member that guarantee. If he takes a call and can identify one person other than a Maori person who under the “Maori Organisations” part of this legislation is going to get a favourable tax rate I will stand and apologise to him directly in this Parliament. That is what the bill does and that is why the title is too bland—it refers to taxation and to Maori organisations. In fact a racist tax rate is being imposed here and the title should reflect that. 
Hon George Hawkins 
: I raise a point of order Mr Chairperson. The member keeps referring to racist legislation. That is out of order. 
The CHAIRPERSON (H V Ross Robertson) 
: No. 
Dr the Hon LOCKWOOD SMITH 
: It was not only my view. In fact distinguished consultants such as Chen Palmer and Partners came to the Finance and Expenditure Committee. The Rt Hon Geoffrey Palmer is a former Prime Minister and a former leader of the Labour Party. His consultancy considers that that measure is a racist measure. His consultancy came to the select committee and said that it considered that measure to be inappropriate. In fact they submitted to the select committee—and I can refer members to the day they did it—that what is going on in this legislation is probably contrary to the New Zealand Bill of Rights Act.