McNair Craig: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — In Committee 
McNair Craig: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — In Committee 
[Volume:621;Page:16500] 
CRAIG McNAIR (NZ First) 
: 
 I will speak to Part 1 which confirms the annual rates of income tax for the 2004-05 income year. I want to speak about tax rates which will have to be addressed at some time or other and which some other members of Parliament have been speaking about tonight. When I speak about tax rates I am not talking just about income tax although I am including income tax specifically because we are talking about that in this part of the bill. I am also talking about taxes in general—the amount of tax that this Government has raised on petrol and a whole raft of things. 
The Government would have us believe that we have an economic boom in this country whilst it is taxing individuals up to 39c income tax. That is a 39c tax rate for people who are earning around $60000 a year because they are considered to be rich by this Government. In this country a wealthy person according to this Government is somebody who earns $60000 a year. Members of this House know that $60000 a year is not a lot to live on these days. People are struggling on $60000 a year to have a couple of kids a mortgage and at least one car. For a lot of people it is impossible. 
This Government says that there is an economic boom. The New Zealand dollar is at 70c against the US dollar and we are not even offering any tax concessions for our exporters in order to grow our export sector. There is not the economic boom that this Government would have us believe. The Minister of Finance gets up to speak day in day out along with other Ministers like the Minister in the chair David Cunliffe. I heard Parekura Horomia talking today on the Ngati Tuwharetoa (Bay of Plenty) Claims Settlement Bill. He said how great the farmers and exporters are getting on but we have a trade deficit in this country. As I said people who are earning over $60000 a year are being taxed at 39c in the dollar and we do not even have a Government with enough vision or positive outlook to say that the export sector needs at least to be given a fair run for its money and given some tax concessions. 
Hon Maurice Williamson 
: Buy back Telecom! 
CRAIG McNAIR 
: That is a very good idea. Mr Williamson has tried to steal another New Zealand First idea by saying “Buy back Telecom”. I am sorry but we own that idea and he will not pinch it off us. New Zealand is continually sliding down the OECD rankings. The average Australian earns $120 a week more than the average Kiwi. 
Dr the Hon Lockwood Smith 
: It is $175. 
CRAIG McNAIR 
: It is probably more. I stand corrected. Dr Lockwood Smith says that Australians earn $175 more per week per person than Kiwis. We say and this has every relevance to Part 1 that if the average New Zealander earns $120 or $175 less than the average Australian the Government and individuals here in New Zealand are worse off. We say that when it comes to taxation we need to think outside the square. That is what New Zealand First is saying. We are firm advocates for all Ministers and MPs paying their taxes. 
I will also say and I mentioned this briefly in the second reading that New Zealand First would have supported the notion that to preserve the present tax thresholds in purchasing-power terms the present bands should be adjusted from $9500 to $10750 from $38000 to $43000 and from $60000 to $68000 at least. We would have supported that.