Allan KiritapuKIRITAPU ALLAN (Labour): Thank you Madam Deputy Speaker. It is indeed a delight to speak in respect of the State Sector and Crown Entities Reform Bill. Reflecting on the general intent and purpose of these reforms you've kind of got to feel a bit sorry for the State Services Commissioner. Poor old Peter Hughes he's out there flogging the horse and doing the best that he can do to put up recommendations that are pragmatic that make sense for the good governance of our Crown entities. He puts up these amendments he goes through he does all of the due diligence—you know he has a statutory function—what is it?—to promote the spirit of service to the community. So he goes about he does all this hard work he puts up his recommendations on what the pay rise and thresholds should be to these boards—and they ignore him.Dame Rebstock she got a pretty clear direction: OK you know the CEO he's done a good job. Let's put his wage up by 1 percent. It's already a hefty thwack anyway it's up there in the $800000 mark but all right he's doing a good job. We've got to stay competitive etc. etc. All right." So all the advice came back—we'll give him a 1 percent rise. Well the board they took that into consideration. You know they had to consult they got some advice but in the end the poor old State Services Commissioner doesn't have any teeth.So what this legislation does—it's a pragmatic approach to enable those with the statutory duties and responsibilities to ensure that our Crown functions and our State services are indeed promoting the spirit of our services to the community that our State Services Commissioner can ensure that our State services are promoting the interests of New Zealand that we are being transparent that there is integrity and that trust and integrity are being imbued into our State services.I mean several of my colleagues made comments prior about comments the State Services Commissioner had made and I was reflecting on some of them as well. He was talking about the upward trajectory of chief executives' salaries in the State sector and in particular some of the Crown entities. It's not sustainable and it's time for change and this was a direct response at that point to the New Zealand Superannuation Fund's then chief executive receiving a pay increase of about $140k—which was a 36 percent pay rise if I recall correctly.I must applaud the Hon Chris Hipkins the Minister of State Services. In a very swift amount of time he has managed to turn around some prudent and decent legislation that addresses the concerns that the State Services Commissioner had raised. Indeed the former Government and the former Minister of Finance—he too observed that there was a gross inconsistency. It goes back to that point around the teeth that the State Services Commissioner has when it comes to making these recommendations.Part 1 of the bill makes these two key changes as has been highlighted by the Minister requiring the boards of statutory Crown entities to obtain the State Services Commissioner's written consent to the terms and the conditions of employment of a chief executive and that that term for appointment is limited for up to five years with the right to be able to be renewed. Again I guess the pragmatic rationale that sits below all of that is that you've got a board that might not necessarily have appointed that chief executive who currently can be in there for as long as they might like to be. So these amendments here put some suitable time constraints and again increase I guess the transparency and accountability of those chief executives back upwards to their board and again to the State Services Commissioner. So on these grounds I'm pleased to commend this bill to the select committee."