McNair Craig: Taxation (Annual Rates Maori Organisations Taxpayer Compliance and Miscellaneous Provisions) Bill — Instruction to Committee In Committee 
McNair Craig: Taxation (Annual Rates Maori Organisations Taxpayer Compliance and Miscellaneous Provisions) Bill — Instruction to Committee In Committee 
[Volume:606;Page:4102] 
CRAIG McNAIR (NZ First) 
: 
 It is very interesting to be talking to this bill. It is an undeniable fact and I am sure that people from different parties will agree with me that the higher one’s taxes are the more that stifles growth. That is a fact. Would the member agree with me? 
Brian Connell 
: Basic construct! 
CRAIG McNAIR 
: That is right; yes that is very true. That is in honour of the Minister of Maori Affairs. If we are to look at the basic construct as the Minister of Maori Affairs would say as far as tax weighing down the growth of a country is concerned we have to look at a few facts. So let us do that. We see that New Zealand’s average gross domestic product (GDP) volume growth since 1985 was 2 percent. If we compare that with the growth rate of other nations we find that every year for the last 16 years we have been falling behind. So the predicted growth that is being described as robust by this Government continues to lag behind the predicted growth in other OECD countries and is far below both our potential and our requirements. When we compare our performance with that of other countries of similar populations but with fewer resources the picture is even gloomier. That all comes back to what I was talking about as far as the annual rates of income tax for 2002-03 are concerned. 
New Zealand First has always been and still is on a campaign to think outside the square a little more. We need to think more creatively with regard to taxation and what is going on in terms of economic growth in New Zealand and how to expand growth. One of the ways that we can expand growth is by providing taxation incentives to exporters. We just need to look at a few figures with regard to that. New Zealand’s exports total US$3600 per man woman and child. The figure for Ireland is US$19300—over 530 percent more. Our beautiful country has many resources and things to export but Singapore’s exports are US$34700 per person—10 times more than New Zealand’s. 
Gordon Copeland 
: I raise a point of order Madam Speaker. I am reluctant to interrupt the speaker but I really fail to see the connection between the export levels of various countries and the rates of taxation. 
Madam DEPUTY SPEAKER 
: That is a valid point. One clause is about income tax. 
CRAIG McNAIR 
: That is exactly what I am saying and Gordon Copeland has to agree with me—I heard him talking in his maiden speech about how taxes weigh down an economy. If one can reduce the taxes then one can create more growth. That can be done in many ways. I am talking about tax incentives; that is one way of increasing growth. The National Party members agree with me. I have heard Dr Lockwood Smith many a time saying that the amount of income tax— 
Madam DEPUTY SPEAKER 
: It is about the basic rates of income tax. 
CRAIG McNAIR 
: The higher the basic construct of the income tax rates the harder it will be for a country to grow. That is all I have to say about that. 
I also feel that higher annual rates of income tax will put a heavy weight on families. United Future members are supporting the Labour Government. 
Dr Muriel Newman 
: No are they supporting the Labour Government? 
CRAIG McNAIR 
: That is what I hear through the grapevine. Those members are strong advocates of the family.