Carter David: Financial Service Providers (Registration and Dispute Resolution) Bill — First Reading 
Carter David: Financial Service Providers (Registration and Dispute Resolution) Bill — First Reading 
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Hon DAVID CARTER (National) 
: 
 As my colleague Simon Power has said National will support the Financial Service Providers (Registration and Dispute Resolution) Bill going to a select committee. I guess 2007 will be recalled in history for quite a long time as the year in which we saw a substantial collapse of finance companies here in New Zealand. Mr Power mentioned a $1.3 billion loss which was largely to smaller investors who will suffer that sort of loss for a long long time.  
I note that the Government in this bill and in other bills associated with this legislation is moving to restore confidence within this particular industry. A lot of investors have been badly hurt and I would like to note that this is not entirely the Government’s fault. This trend is not unique to New Zealand. It started in particular in the United States with second-tier lenders there under pressure so there has been a world-wide trend. In many cases it is a loss of confidence that is causing the problems to the extent that some very well-founded finance companies have been pressured although not to the point of collapse because their long-term investors have been scared by some of the horror stories.  
The package we are discussing in this legislation will be coupled with the Financial Advisers Bill. I note that Charles Chauvel interjected during Mr Power’s speech and said that we will be discussing it on Thursday of next week. Mr Chauvel should know. He is a very very senior member of the Labour Government. He is the one who welcomed his own appointment as a parliamentary private secretary to the Attorney-General on 1 November this year. 
Simon Power 
: How is he going? 
Hon DAVID CARTER 
: I think he is going very well in his role. I must admit that he has not had a huge amount of publicity. He got a lot of publicity when he announced his own appointment but he has not had not a lot since. But I am sure that Mr Chauvel is indeed in touch with the Attorney-General who will be well aware of the programme for next week so he has announced to us today that we are back here not only on Tuesday but clearly on Wednesday and Thursday to debate the Financial Advisers Bill. 
On a more cautious note I say that any of this legislation must be balanced. The consumer deserves protection but at the same time any Government initiative to deliver that protection and confidence back into this industry must be very very carefully balanced because if it is not done correctly the protective legislation will become both cumbersome and costly. If that happens it will ultimately be the investors themselves who pay.  
I conclude by echoing the comments made by my colleague Simon Power in congratulating the Minister of Commerce on the way she has worked with the industry to deliver this legislation. I have had the opportunity to speak to a number of people over the last week who certainly welcome the legislation. They feel they have been very adequately consulted and they have been treated with absolute respect. That is in sharp contrast to the response I know Mr Clayton Cosgrove has received from the Real Estate Institute. Mr Cosgrove if he is listening should take heed of the way in which his colleague Lianne Dalziel has delivered this.  
My final point is one I hope Dr Cullen will consider carefully. This legislation is heading to the Finance and Expenditure Committee. I express concern here about the workload we have put on that select committee in the last couple of days. It has received the Reserve Bank legislation and the emissions trading legislation which in itself as acknowledged by the Minister is landmark legislation more so than we have seen in this House in a long time. Here we are loading the committee again with the Financial Services Providers (Registration and Dispute Resolution) Bill and no doubt on Thursday it will get the Financial Advisers Bill as well. 
Simon Power 
: On Thursday? 
Hon DAVID CARTER 
: On Thursday of next week. It will be a long long week but the Opposition is up to it. We have enjoyed the last couple of days and we are looking forward to coming back on Tuesday to continue the debate for the rest of the week.