A new report has backed Queenstown's bed tax bid, but the tourism industry has hit back saying "New Zealand doesn't need new taxes" and that Kiwi travellers will be caught out by the levy.

The draft Productivity Commission report said the Queenstown Lakes District Council was one of several local authorities experiencing pressure on their infrastructure as a result of high tourism numbers.

They needed new funding tools, including accommodation levies.

David Seymour joined Mike Hosking to discuss the notion that Stuart Nash has mislead parliament about not working on a bed tax after he got answers through parliamentary questions.

"I think already, on the basis of the contradiction between what he said in the house and his admissions, he'd have to think very carefully about whether he has mislead the house."

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