Brown Peter: Securities (Local Authority Exemption) Amendment Bill — Second Reading 
Brown Peter: Securities (Local Authority Exemption) Amendment Bill — Second Reading 
[Volume:646;Page:15091] 
PETER BROWN (Deputy Leader—NZ First) 
: 
 I would like to compliment the member who has just resumed his seat Dr Worth. He at least has the honesty to suggest where the Securities (Local Authority Exemption) Amendment Bill emanated from—the Shand inquiry which was an inquiry into local body funding and alternative funding that came about as a New Zealand First initiative. That is putting it politely. 
We were put under huge pressure as the member well knows to support the rather naive Rodney Hide bill that the National Party wanted to support at that particular time. 
Hon Tau Henare 
: Be nice for a change. 
PETER BROWN 
: I am being nice. It was a rather naive attempt to cap rates. New Zealand First thought the issue through and demanded in a very tough manner that there be a formal inquiry into rate funding. It is known as the David Shand inquiry—it was named after the chairman—and it recommended quite strongly that local bodies local councils get more involved in debt funding. That is a view that New Zealand First has had for some time when it comes to infrastructure. In recent years we have progressed a little bit in the way in which we fund roads from when if we had the money we invested it in roads and if we did not have any more money we stopped until the next year when we got a little bit more money. That just does not make sense in the modern world. 
New Zealand First has always supported the idea of Governments and local councils debt funding on a reasonable responsible basis certainly when it comes to the cost of infrastructure and the like. We are very pleased that the Shand inquiry supported that contention. Infrastructure is not only for today’s ratepayers; it is for tomorrow’s. It is only right proper fair and equitable that infrastructure is funded in such a way that the users contribute to it. Debt funding is the way to go. As Dr Worth said this could open the door for some high-quality debt which investors can participate in and all going well there will be a nice little nest egg for people in the longer term. 
Dr Richard Worth 
: Better than Blue Chip perhaps. 
PETER BROWN 
: I knew that the member would say that. I am conscious of whom he is sitting next to right now. Yes it will be darn sight better nest egg than Blue Chip was I would suggest. 
In essence this bill relaxes the rules and allows two councillors—and the Hon Paul Swain touched on this—to sign the prospectus. Currently every councillor has to sign it. That is a case of living in the dark ages because it means that one councillor who wants to be awkward bloody-minded or who for some reason wants to stall the development can do so. 
Hon Tau Henare 
: Steady on man! 
PETER BROWN 
: There is one talking right now whom I could think of if he were a councillor—but I am sure he would not. This could stop a whole project going ahead or even more than that. This bill improves the situation considerably. 
As the Hon Paul Swain said every councillor will be liable—otherwise nobody would sign the prospectus—but it allows progress to be undertaken. Of course there are some rules and safeguards. It is only right and proper that there are safeguards. I have to compliment the Commerce Committee which I might add New Zealand First was not on on proposing to amend section 5 of the Act by inserting subsections (3B) (3C) and (3D) basically in order to put in safeguards when it comes to having accounts up to date and investors seeing the most current financial position. New Zealand First concurs with that and we compliment the select committee on inserting those provisions. Obviously there have to be safeguards. If we have investors we need proper safeguards. We do not want anything to be set up that in any way resembles a fly-by-night type of operation. 
New Zealand First is pleased with this bill. We know that it had its beginning out of the Shand inquiry and we are grateful to the Government for taking on board the recommendation made by that inquiry team. We will support the passage of this bill through the House.