Incorporated Societies Bill

I present a legislative statement on the Incorporated Societies Bill.

ASSISTANT SPEAKER (Hon Jacqui Dean): That legislative statement is published under the authority of the House and can be found—[Interruption] Order! Order!

💬 Hon Judith Collins: They’re very frisky over here, Madam Speaker.

ASSISTANT SPEAKER (Hon Jacqui Dean): Yeah, if the members could just—while the Speaker is presiding over some procedural stuff, if members could just keep silent. Very excitable tonight.

That legislative statement is published under the authority of the House and can be found on the Parliament website.

I move, That the Incorporated Societies Bill be now read a third time.

I’d like to start by thanking the Economic Development, Science and Innovation Committee, again. There’s much legislation in the House that they have worked on this evening. It’s a pleasure to speak to the third bill I’m progressing this evening in the House, but that committee worked on the Incorporated Societies Bill in a really bipartisan way. They worked in a way to develop a collaborative approach to achieve legislation that we will be passing through this House which will be enduring.

I want to thank also the officials who have advised on this work stream since its genesis in around 2010, including the now retired Geoff Connor. I want to thank the public from the outset, who submitted on this work stream, whether it was in a submission to the Law Commission in their 2011 process, to the Ministry of Business, Innovation and Employment in 2015, when the exposure draft was published, or to the select committee in 2021.

There are around 24,000 incorporated societies in New Zealand, and that number is rising. They do great work. They speak up for workers, they teach our children sports, they raise money for good causes, and, frankly, they deserve a governing statute that is up to date and fit for purpose.

The current statute that they’re operating under is 114 years old, and that is why it is so good to be updating it in a way that I hope will be enduring for perhaps another 114 years. While world leading at the time, the current statute has a real focus on the creation of societies and on their winding up. It has a whole lot less to say about how they operate during their life cycle—how they should conduct themselves in the interim. Really, if we look at the issues that we see as MPs—and electorate MPs up and down the country will be familiar with this—it is really important that this Act is reformed and that it speaks to those issues which come in through our electorate offices, often in the form of conflict, when it comes to unclear guidance as to how those institutions should conduct themselves.

Now, I would like to cover the three main aspects of the bill as I see them. First, the bill lists the matters that must be included in a society’s constitution, and that includes procedures for resolving internal disputes. Those are the things, as I’ve just mentioned, that we see as MPs and electorate MPs up and down the country too often, sadly, where a dispute has emerged in one of those incorporated societies, and too many constitutions don’t currently contain dispute resolution rules. That leads to unnecessary and damaging delay and confusion in addressing internal disputes, and this bill provides a remedy by requiring societies to have dispute resolution rules that meet natural justice standards. That change will help societies to focus their efforts on what they’re about—on their purpose—rather than on internal disputes, and on serving society on the very purposes they’ve been set up with, instead of spending their time in the courts.

Secondly, the bill provides a basic set of duties for society officers, similar to company directors’ duties. Until now, company directors’ duties have been buried, really, in old case law. So they’re not apparent to most people who are putting themselves forward to volunteer into a role to offer their services to their community, and setting them out in primary legislation means that people who are taking on roles as officers in incorporated societies will know very well before they take on the role what it is likely to entail. They can make informed decisions before accepting a role as a society officer, and if they do accept a role, it will help ensure that they understand better what conduct in their role is and is not lawful.

I’d like to quote Emeritus Professor John Burrows in this regard. In his 2003 Harkness Henry Lecture, he stated that “It would be good if ordinary members of the community could consult the law that affects them, and understand it, particularly if it imposes duties on them.”, and the bill seeks to do exactly that. It provides those people who hold the community together with their volunteering, with accessible legislation that explains their duties in accessible terms.

The third point I’d like to cover off is that the bill requires larger societies to prepare their financial statements in accordance with the accounting standards issued by the External Reporting Board (XRB). That will improve the quality, reliability, and consistency of financial reporting, and, in turn, will help creditors, donors, and ordinary society members to understand the society’s financial position and performance, and easily compare it with other similar societies.

Lastly, I need to point out that my own work on the incorporated societies area will not end here today. The bill provides for a period of up to 18 months for the necessary regulations to be prepared and consulted on before the new regime will enter into force. Then, and only then, will the reregistration process begin for our 24,000 incorporated societies. I look forward to cracking on with that work, of course, as we get this long overdue process underway.

So in conclusion, I do think we really are making history here today. I want to thank all of those who do serve on our incorporated societies across New Zealand for the work that they do in our communities. I want to place on record my thanks again to those who served on the Economic Development, Science and Innovation Committee, ably chaired by Jamie Strange, for the way that they worked together to produce enduring legislation that has support across the House. Thank you for that. I certainly hope that I am not around when this law is likely next updated, perhaps in another 114 years. Thank you, Madam Speaker.

Members, the time has come for me to leave the Chair. The House stands adjourned until 2 p.m. tomorrow.

Debate interrupted.

The House adjourned at 9.57 p.m.