Lee MelissaMELISSA LEE (National): Thank you Mr Speaker. It's a great pleasure to rise in support of this bill. Earlier my learned colleague the Hon Judith Collins raised some concerns that we had. It's not something that we feel that is enough to oppose the bill but raising and bringing some light to the reason why we are having some concerns is the duty as members of the Opposition as decent members of our society concerned that it might have likely impacts that for example the Credit Contracts and Consumer Finance Act (CCCFA) has actually had on the ability for some people to get a bank loan for example. What we're saying is that officials and Parliament and particularly a select committee should actually pay attention to the impact that this legislation may have on incorporated societies and what that might actually mean.Incorporated societies play a huge role in New Zealand. Many of us here probably all of us have been part of incorporated societies in our local communities. I personally have been involved with ethnic communities. I have run an ethnic film festival particularly the Korean Film Festival every two years and fundraising is a major—trying to make sure that we do everything right and tick all of the boxes and do all of the financial returns and everything is a huge burden for a lot of people who also have very busy lives. And when a piece of legislation actually requires these people to have added responsibility it might prevent some people who will be really good at these jobs as chair or as treasurers or secretaries of these societies—they might think twice. That's what my colleague Judith Collins actually laid out very very clearly. So given the role that they actually play in New Zealand I think it is really important to ensure that the rules governing them are fit for purpose and sensible and straightforward and easy to actually comply with.I was listening to the Minister last night when he spoke in the beginning stages of this third reading and he thanked the Economic Development Science and Innovation Committee all of the members—because I think we worked really really hard to actually get to this point questioning the officials who have advised us. I remember distinctly the discussions that we actually had on the limitations that it might pose on those people who might have skills to actually join incorporated societies—will it not prevent them from actually volunteering? That was one of our biggest concerns.The very fact that this Incorporated Societies Act 1908 really needed to be modernised is probably an understatement. It really needed to actually be modernised. I think when you look at more than 23000 incorporated societies that currently exist on the incorporated society register actually making it clear and simpler and putting their fiduciary duties clearly I think makes it easy for people to actually say Yes I want to be involved." or "No I don't want to be involved."I think the clarity where the—I can never pronounce this word—fiduciary duty is actually clarified where people who are in those incorporated societies do make sure that their conflict of interest is managed that they are actually not convicted criminals for example and that they actually see their duty as something that they might do and actually bringing the responsibility up to where it is perhaps required if someone was managing a limited liability company—I understand the rationale for it. I understand that we need to train some of our members who volunteer for incorporated societies so that they do actually do their duty professionally and I think as members said execute their duty well and making sure that our incorporated societies are not a disservice as a result of their non-performance.I think one of the things that I'm actually really quite proud of in the way that the select committee actually operated is in relation to looking after the smaller societies where the thresholds of their finances are much lower and where the additional requirements of external reporting—what standards might have actually put extreme pressure on their abilities both financially and also expertise wise and we actually raised the threshold to $50000 operating payment and $50000 current asset. So their reporting duties are actually much less than if it was a much bigger operation with people who actually have professional services that they could hire and pay for as well. I think it's actually a good thing that the select committee has actually come to that and it is reflected in the legislation.Going to the comments of the Hon Andrew Little who commented that he agrees with clauses 53 and 54 and he doesn't actually agree with the Hon Judith Collins' comment in our concern I'd just like to sort of say that the bill already provides in clause 49 adequate protection as it requires officers to act in good faith and in the best interests of the incorporated society when exercising powers to performing duties as an officer. In relation to clauses 53 and 54 I just want to basically raise the issue that when—you know I think the Hon Judith Collins actually made it quite clear that it seemed like a cut and paste job of section 135 and 136 of the Companies Act. What that particular Act had was a legal opinion and also a judge—I think it was Justice Goddard who actually said that in respect of sections 135 and 136 in respect of Yan v Mainzeal Property and Construction Ltd in a liquidation case that these clauses are not fit for purpose.I think often when legislators make law it is reliant on case law to see if it's actually working or not and I think when we're looking at this legislation we should reflect on sections 135 and 136 of the Companies Act which has actually had case law to see whether it is in fact going to work or not. We have today and in select committee raised the concerns and today as I close my third reading speech I just want to put on note that I agree completely with the Hon Judith Collins when she actually says we should look at this issue make sure that we're monitoring it and if it's not working we need to actually fix the problem and hopefully that won't be in 10 years' time. But hopefully we'll look at it in one year so that we don't have the same situation like we do with the CCCFA issue where people cannot even get bank loans because they have far too many coffees or go to the nail shop or go to the hairdressers. I think we need proper laws and to make sure that we encourage more people to take part in incorporated societies because volunteers are really really hard to come by and we need to encourage them not discourage them. I commend the bill to the House."