Insolvency Law Reform Bill

National, as members have heard in the debate on the Committee stage this evening, has supported most parts. However, we had concerns with Part 3, Part 5, and Part 8; consequently, we voted against those parts. If we reflect on National’s minority view, which is set out in the commentary on the bill, we see that our speakers and our members who were on the select committee have identified that: “The centrepiece of this bill is the ‘voluntary administration’ scheme which will replace the seldom-used ‘compromise’ scheme.” It is interesting to note that all submitters on that provision were unanimous in their view that unless the Government addressed the issue of priority status for the Inland Revenue Department, the voluntary administration scheme would be severely compromised. With that in mind, our speakers, especially Pansy Wong, who led the debate in this area, were adamant that we had to vote against the voluntary administration provisions.

Further, we do not believe that Parliament should pass another piece of redundant legislation, when there is a groundswell of opinion from practitioners who believe that the legislation will not work without the removal of the Inland Revenue Department’s priority status.

The other point we were very mindful of was the newly introduced no-asset procedure, whereby an individual can choose to enter into a scheme for 12 months in return for a write-off of $40,000. We ask where the personal responsibility is—the individual responsibility—for the debts that have been incurred.

Overall, with that in mind, National says that while we support some parts, we will be voting against this bill.

Clause 1 agreed to.

Clause 2 agreed to.

The Committee divided the bill into the Insolvency Bill, the Companies Amendment Bill, and the Insolvency (Cross-border) Bill, pursuant to Supplementary Order Paper 61.

Bill to be reported with amendment presently.

House resumed.

The Chairperson reported the Reserve Bank of New Zealand Amendment Bill without amendment, and that the Committee had divided it into two bills; the Communications Legislation Bill without amendment, and that the Committee had divided it into two bills; and the Insolvency Law Reform Bill with amendment, and that the Committee had divided it into two bills.

Report adopted.

The House adjourned at 9.55 p.m.