McNair Craig: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — First Reading 
McNair Craig: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — First Reading 
[Volume:616;Page:12500] 
CRAIG McNAIR (NZ First) 
: 
 In rising to speak to the Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill I want to indicate to the House that New Zealand First will support this bill going to the select committee so that the public companies businesses and corporations—whatever—can have their say. With regard to the number of significant changes this bill will make to taxation laws New Zealand First’s priority is first and foremost to encourage New Zealanders to save and invest in our economy and keep the resources of New Zealand in the hands of New Zealanders as stated in our 15 founding fundamental principles. So we will be keeping a close eye on that part of the bill. 
I now want to focus mainly on Part 1. The commentary states: “The rates in Schedule 1 vary from the rates that applied for the 2003-04 income year in the following ways:”. One of the ways is: “a rate of 19.5% will apply to Maori authorities (see section 78(2) of the Taxation (Maori Organisations Taxpayer Compliance and Miscellaneous Provisions) Act 2003);”. In speaking to the Taxation (Annual Rates Maori Organisations Taxpayer Compliance and Miscellaneous Provisions) Bill about a year ago on Wednesday 19 March 2003 I moved an amendment on behalf of New Zealand First that all sections of the New Zealand community should be able to take advantage of the proposal relating to basic tax rates of 19.5 percent. We did not support that part of the bill because we felt it was unfair. I reiterate that New Zealand First wants to treat all New Zealanders equally and at that time I put forward an amendment to give effect to that view. 
I want to read that amendment; briefly I want to inform the House again of what that amendment was. I moved in Committee the following amendments in relation to clause 24(1): that the words “Subpart 1—Maori authorities” on page 18 line 9 be deleted and be substituted by the words “Maori authorities and applicants”; and that on page 21 between lines 6 and 7 the following words be inserted: “Election to become applicant—(1) The applicant whose tax characteristics and tax rates are similar to those of a Maori authority as referred to in this Act shall be entitled to make a similar application to the Commissioner as a Maori authority can under this Act by giving notice to the Commissioner as a Maori authority is entitled to do in terms of section HI 1C of this Act and shall receive the same treatment as a Maori authority is entitled to receive in terms of this Act. (2) The words ‘applicant or applicants’ shall include all persons legally entitled to be called a legal person in terms of any and all Inland Revenue Department and any other tax legislation including (but not exclusively) individuals companies incorporated societies charitable trusts sole traders partnerships and any other parties liable to pay income tax. (3)” —the last part—“the provisions of Subpart 1 as applicable to Maori authorities shall apply to an applicant.” Regarding the amendments I proposed I would also like to add that the Federation of Maori Authorities welcomed the amendment I put forward to the House at about this time last year. 
Staying on Part 1 I want to say that unlike the Greens New Zealand First is not in favour of tax increases and as I mention many times in this House unlike the National Party which just wants tax cuts for the rich we advocate tax incentives for exporters. For example we would announce tax abatement and concession policies such as a 20 percent tax rate on new export net income to ensure that viable exporting opportunities and innovation are not lost. 
In ending I want to say that New Zealand First is looking forward to hearing submissions on this bill at the select committee and we will make our decision from there. But as always we support good legislation and we oppose bad legislation.