Third Readings

It is a pleasure for me to take a final call on the legislation arising from the Regulatory Reform Bill, and I want to especially thank the Minister for Regulatory Reform, the Hon John Banks. He has been disparaged in this House this afternoon, but he has done tireless work to make New Zealand a better place to do business in, to make this country a better place to work in, and to make this country a better place to live in.

This legislation is about getting rid of unnecessary regulations, so that businesses can focus on core activities, grow the economy, and, in particular, grow the export economy. What does this legislation do? The legislation will amend 13 different Acts and bring some of the outdated Acts into the 21st century of doing business—I will get to some of them.

Amendments to the Companies Act will enable companies to hold shareholder meetings over the internet, and also allow electronic voting. Companies domiciled here with connections overseas and across the country will be able to do business via telephone, videoconference, and, obviously, the internet. Not only does this reduce our carbon footprint but also it saves New Zealand companies a total of $1.5 million a year, going forward.

We have also heard in the debate so far about changes to the Films, Videos, and Publications Classification Act. This will be done to modernise labelling. As we have heard from the Minister, this will reduce compliance costs by an estimated $1.3 million next year, and that figure will rise to $2 million per year by 2018. We also have changes to the Conservation Act, which will allow time limits to be set within which applications for concession, such as the permit to carry out activities in a conservation area, must be processed. These applications may be affected particularly during duck hunting season in this country. Changes to the Agricultural Compounds and Veterinary Medicines Act, as I said last night in the debate, will save up to $50,000 per year—medicines for the treatment of that world-renowned “Ugly Mallard” species, which was last seen selling, scalping, tickets to teenagers in the Hutt Valley and which is otherwise known as “TradeMe Trev”. There are changes to the Radiocommunications Act, which will save around $46,000 per year.

These are great examples of what can be achieved by systematic and considered reform of regulations. It is good news for business, good news for consumers, and good news for our kids. The measures implemented under the National-led Government to cut red tape have so far contributed to—

💬 Hon Trevor Mallard: Did the member get that tie from Tony Ryall?

—an estimated $200 million per year. Let me repeat that for the scalper—$200 million per year. Why is that important? Well, that money can be reinvested into those companies and be used for more productive outcomes. That money can be used to hire more staff, expand operations, and invest in research and development. It is also about putting more money back in the pockets of everyday New Zealanders, due to the reduced costs of production.

As is clear from this legislation, high-quality regulation is a source of competitive advantage for our country. We want to take every advantage we can to grow the economy, reduce barriers to trade, and become more competitive internationally. Ultimately, it is about delivering a brighter, better, and bolder future for all New Zealanders, including our friends across the aisle and their families. I am proud that this John Key - led Government is continuing to do this, and I recommend this legislation to the House. Thank you.

My call will be extraordinarily brief because, as I outlined last night, the change being made in this legislation to the provision in the Films, Videos, and Publications Classification Act that is costing the film and music industry $50,000 a week epitomises, I think, the good that is in this legislation, but the bad continues to cloud us for any moment longer that we drag this legislation through the House. A total of $7 million is what the industry has suffered as a consequence of delayed legislation because of the fact that one simple word has not been changed. It is my hope that we see this legislation go through the House this evening. If it does not get through the House this evening, I would say it is on the National Government’s head that another $50,000 a week of expense falls on the industry that it claims to support.

So that is my challenge to the members in this House tonight. If we truly believe in reforming regulation, then we will let this legislation pass this evening. I commend this legislation to the House.

I stand to support the third readings of the legislation arising from the Regulatory Reform Bill, which was divided into 13 different bills, and the Regulatory Reform (Repeals) Bill. These bills in fact streamline frivolous red tape and bring order and regulation to the regulatory environment. The Government is strongly focused on assisting businesses by removing duplication, getting rid of unnecessary requirements, and clearing up irregularities, thereby raising economic growth and living standards. New Zealand businesses face enough challenges without having to grapple with the compliance costs caused by unnecessary regulations. The world is changing dramatically. It is highly competitive, and New Zealand needs to move with the times. It is vital that improved but essential legislation be set in place.

The 13 bills amend 13 Acts and remove duplications, unnecessary requirements, and inconsistencies. Among the changes is a proposal to amend the Companies Act 1993 to allow companies to choose whether to use electronic shareholder participation. This could save New Zealand companies up to $1.5 million in total each year. Another change was to amend the Unit Trusts Act 1960 so that financial statements and accounts could be distributed electronically, and another to amend the Films, Videos, and Publications Classification Act 1993 to modernise labelling. That will reduce compliance costs by an estimated $2.4 million in the first year and $3.1 million in 5 years. Through the Regulatory Reform (Revocations) Order, 206 regulations will be repealed.

These are just three measures that will make enormous differences to New Zealand businesses. These changes are made in a single omnibus bill that amends all the affected Acts at the same time. The National-led Government promised it would review existing regulations in order to identify and remove requirements that are unnecessary, ineffective, and excessively costly. This saving will eventually be returned to the New Zealand economy, benefiting all concerned. I commend this legislation to the House.

I am happy to take a call on the regulatory reform legislation. I would like to commend the Minister for Regulatory Reform, the Hon John Banks, for making sure that this legislation got the attention that it needed, and that it is in the House now for its third reading.

I would have to say that, really, this legislation is about helping our business community and our businesses—the private sector. The future for my kids, the future for our kids, and the future for the next generations in New Zealand does not lie in the growth of our public sector; it lies in the growth of our private sector. It lies in the growth of our tradable and export sector. Anything that this Government can do to make those sectors more competitive and to give them a competitive advantage, we should be doing, and this regulatory reform legislation is about that.

I myself have been holding business forums for the last 8 months in my own electorate of Rodney, and the common theme that is coming through from all my local businesses—whether they be small business, medium-sized business, exporters, or retailers—is that we need to reduce red tape and regulation. This is exactly what this legislation is doing: it is reducing red tape and regulation.

High-quality regulation is a source of competitive advantage. We might scoff—and I have heard scoffing from the other side—at small gains in some areas, but every gain matters. A thousand dollars on the bottom line of a small business means something to it. It has an impact on its business. We might scoff at small gains, but let us remember that the overall impact of this legislation is maybe a $200 million saving within the economy annually. That is a fairly significant saving to our private sector. The growth in this country and the future of this country lie with our private sector, as I have said, and anything that we can do to help it, we must do to help it.

We believe that better regulation and less regulation is essential to assist New Zealand to become more internationally competitive and a more attractive place to live and do business. We hear every day in this House—week in, week out—from Labour members talking about people having to leave New Zealand. Well, you know what? Let us support a bill that actually goes some way towards making more jobs and making more opportunities available to New Zealanders and Kiwis to come home, to come back to New Zealand, to get involved in business, to get involved in the economy, to bring their kids home, and to do something about the future and the growth of New Zealand.

We have made improvements, among others, to the Resource Management Act, the electricity sector, the transport and communications sectors, and ACC. We are all aware that the Resource Management Act is something that can have a profound effect on businesses. I am sure that they all welcome the changes that are being made to ensure that they are more competitive.

The 2009 Government Statement on Regulation made two major commitments: we will introduce new regulation only when we are satisfied that it is required, reasonable, and robust, and we will review existing regulation in order to identify and remove requirements that are unnecessary, ineffective, or excessively costly. This is another great thing that is happening through this regulatory reform legislation: we are getting rid of unnecessary, ineffective, and excessively costly regulation.

This legislation slashes red tape and it makes life easier for businesses. It contains amendments to 13 Acts, removing duplication, getting rid of unnecessary requirements, and clearing up inconsistencies with the aim of reducing compliance costs and regulatory burdens to businesses. New Zealand businesses face enough challenges without having to grapple with compliance costs caused by unnecessary regulation. I am very happy to commend this legislation. Thank you.

During the third reading debate the Greens indicated that they wished to vote against one of the bills. So I propose to put the bills in three parcels to allow that to happen.

Agricultural Compounds and Veterinary Medicines Amendment Bill, Animal Products Amendment Bill, and Companies Amendment Bill (No 2) read a third time.