Business Law Reform Bill

I rise to speak to Part 4 of the Business Law Reform Bill, which refers particularly to the Friendly Societies and Credit Unions Act 1982. This bill allows these organisations to expand and increase their services. National is very supportive of this. Indeed, National’s record in commerce tends to support moves to increase, improve, and expand commercial activities. Whereas, I guess, it would be a fair observation to say that the present Labour Government has a penchant for introducing regulation at every possible opportunity. So it is with pleasure that I rise to support something that will actually ease regulation for one specific part of the organisation. I note the applause of the Minister, and I thank her for that. It must have been a difficult thing for her to do.

The changes that are incorporated into this bill are at the behest of Government officials, lawyers, and business people. I would like to note that there is not actually a shortage of suggestions from groups of business people for changes to legislation affecting business. Quite apart from the standard representative groups comprising chambers of commerce, export and import institutions, professional bodies, and others, this Government established the Small Business Advisory Group. I can remember that being initially established, and I thought: “Yay, what a good idea!”. However, the group took a while to establish. Its formation was plagued, and I am sure the Minister will agree with me, by frequent changes in portfolio. I think Minister Dalziel is the fourth Minister for Small Business in a relatively short space of time. Hopefully there will now be a period of maturity in the portfolio.

One of the frequent requests by the Small Business Advisory Group is for some relief from the ever increasing number of taxes, fees, and levies. I understand this Government has introduced, or increased, 40 different fees, taxes, and levies since taking office—40 of them—and a further four are proposed. It appears that the Minister has assiduously avoided selecting some of the group’s proposals judging from the 5.3 out of 10 score that the advisory body has given to the Labour Government’s performance. My colleagues earlier listed the 17 percent rise in the average cost to a firm of $43,200 in 2003 for compliance.

I guess this brings to mind a simple fact about the attitude of this Government towards small business that I have developed a feeling about. I acknowledge that very few of the present Labour Government members seem to have been exposed to the rigours and disciplines of running a small business. I acknowledge that many of the present members on the Government benches have backgrounds, and significant backgrounds, in trade unions, which are primarily involved in regulation. I understand the need for regulation, but why so much? The reality is that regulations—

💬 Darren Hughes: I raise a point of order, Mr Chairperson. I am sorry to interrupt the speaker, I know he is not given many opportunities to speak in the Committee, but this is Part 4 and it sounds very much to me like a prepared third reading speech. I just wondered whether you could give some guidance to the member.

The CHAIRPERSON (H V Ross Robertson): I was listening to the member and I was actually at the stage of starting to wonder myself. Would the member speak to Part 4, clauses 43 to 53.

I have no difficulty in doing that and will be very happy to oblige the member who raised that point of order. I just thought he would be interested in the debate and the circumstances behind my considerations. To continue with Part 4—

💬 Craig Foss: You’ve only got 2 more years of speaking!

💬 Darren Hughes: You watch it!

Indeed, that member should never cut his fingernails; he is clinging to his electorate with them. In the case of Part 4 there are a number of specific amendments that favour credit unions such as the ability to set any qualification that can be objectively determined as their common bond. This takes away the subjective judgment of the registrar in friendly societies and credit unions. This will be helpful in the event of liquidation or suspensions.

Part 4 agreed to.

Part 5 Insurance Companies' Deposits Act 1953