Cunliffe David: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — In Committee 
Cunliffe David: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — In Committee 
[Volume:621;Page:16505] 
Hon DAVID CUNLIFFE (Associate Minister of Revenue) 
: 
 It might assist the House’s consideration if we test the credibility of the member who has just resumed his seat Dr the Hon Lockwood Smith. He quoted OECD reports and suggested that New Zealand’s tax burden was higher than the OECD average. In 2001— 
Dr the Hon Lockwood Smith 
: Don’t tell lies! 
Hon Rick Barker 
: I raise a point of order Mr Chairperson. That member is saying something that is completely and utterly unparliamentary. I ask him to withdraw and apologise. 
The CHAIRPERSON (Hon Clem Simich) 
: I thank the member for raising that. Dr Smith please withdraw and apologise. 
Dr the Hon Lockwood Smith 
: I withdraw and apologise. 
I raise a point of order Mr Chairperson. It is a responsibility of members speaking in this Committee to tell the truth. The Hon David Cunliffe knows because he just heard my contribution that I did not say—and he can check the  
Hansard 
—what he just said because I am very careful with the facts. What I said was that according to OECD data the tax take as a percentage of GDP had gone up in the latest data for 2001-02 from 33.3 percent to 35 percent. I am happy to table the article I was quoting. 
The CHAIRPERSON (Hon Clem Simich) 
: That is a debating point. 
Dr the Hon Lockwood Smith 
: I raise a point of order Mr Chairperson. Forgive me but it is not a debating point whether members tell the truth in this House. That is not a debating point. When I have made clear and am prepared to table what I was quoting from the Minister cannot assert that I said something I did not say. 
The CHAIRPERSON (Hon Clem Simich) 
: That is a debating point but the reason I asked you to withdraw and apologise was that I—and I think I was right—took what you said to be relating to the Minister. If I was wrong we will move on. 
Hon DAVID CUNLIFFE 
: Allow me to assist the Committee by clarifying this with some OECD data. For the year 2001 New Zealand’s average tax burden was 33.8 percent against an OECD-wide average of 36.9 percent. Of the 31 countries in the OECD New Zealand by my calculation was the 10th lowest. So not only were we lower than the average; we were the 10th lowest. We were in the bottom third of tax rates. 
There was one country that had tax rates in line with ACT policy. One country had a tax rate of 18.9 percent. Can members guess which country that was? It was Mexico. As far as I know the country with the lowest income in the whole OECD was the only one that mimics ACT policy. 
In 2002 the New Zealand average tax burden was 34.9 percent—not 35 percent as the member alleges—which is still below the OECD average of 36.3 percent. Once again New Zealand was in the bottom half of OECD taxation by being the 14th lowest out of 31 countries. If that member is going to stand up and quote facts and figures and pretend to table documents he had better get his numbers right first because this Government is in the habit of taking some care with its numbers.