Williams Andrew: Accounting Infrastructure Reform Bill — Second ReadingText is incorporated into the Bound VolumeWilliams Andrew: Accounting Infrastructure Reform Bill — Second Reading[Sitting date: 03 July 2014. Volume:700;Page:19247. Text is incorporated into the Bound Volume.]ANDREW WILLIAMS (NZ First):I am pleased to take a call on behalf of New Zealand First on the second reading of the Accounting Infrastructure Reform Bill. New Zealand First will be supporting this bill. Initially we had a few concerns about some aspects of the bill but we were pleased that this received close scrutiny through the select committee process allowing New Zealand accounting firms auditors and all those involved to have their say in the legislative process.New Zealand First supports the bill due to the fact that it will help reduce compliance costs for small companies. We are a party that supports New Zealand enterprise and we stand by the reduction in cost to operate small companies in New Zealand which are increasingly burdened by compliance costs. The audit and accounting industry will be more efficient as a result of this legislation. Accredited bodies will allow members to conduct audits under their umbrella controls. Therefore as a result if you are part of an accredited body and auditing company there will be controlled accreditation to conduct such audits. Longstanding terminology of “chartered accountant” will be replaced with a new terminology of “qualified statutory accountant”. It will be interesting to see whether this is just playing with names or whether there is any real substance to that name change.This bill will also when enacted allow overseas audit companies to operate in New Zealand. We are advised that many companies that have international auditors currently have difficulties because they have to have a local auditor undertake the work which provides some difficulties for some international firms. There is merit in this. We would hope that as result of this bill many international firms might see fit to establish offices here in New Zealand to conduct such audits on behalf of some of their global companies. Therefore New Zealand will gain by the local establishment of audit branches of international audit companies.The bill requires larger charities to be audited by qualified auditors. We see merit in that as well. When you are the purse-holders of money given by the public and are taking public money in excess of $1 million we must ensure that those funds are managed and audited correctly. New Zealand has a reputation for being one of the highest-donating countries in the world per capita so this added scrutiny is more than justified.This bill also brings the opportunity for New Zealand and Australian accounting bodies to come together as one trans-Tasman statutory body to oversee Australasian auditing. This is an interesting process bringing those trans-Tasman accounting practices together. We operate in a Closer Economic Relationships situation with Australia and there are significant advantages from having harmonisation with our Australian cousins. This can potentially bring great benefit to both sides of the Tasman by being able to offer standard accounting and auditing practices for businesses operating on both sides of the Tasman.In closing New Zealand First has always stood on the basis of supporting New Zealand commerce and supporting New Zealand domestic and export businesses and we support reducing compliance costs. We hope that New Zealand citizens and businesses will operate more effectively as a result of this bill. We commend the bill to the House.