Tisch Lindsay: Business Law Reform Bill — First Reading 
Tisch Lindsay: Business Law Reform Bill — First Reading 
[Volume:632;Page:4251] 
LINDSAY TISCH (National—Piako) 
: 
 I am reminded of what Thomas Jefferson said in 1808. 
Hon Maurice Williamson 
: What did he say? 
LINDSAY TISCH 
: He said that a Government’s role is as an umpire not a participant. It was Adam Smith in 1776 who said: “Experience shows that once government undertakes an activity it is seldom terminated.” What this Government has been doing for a number of years is increasing compliance regimes for businesses. We have heard some figures—how the compliance cost figure has gone from $46000 to $53000. But if we go back even a year earlier the figure then was $26000. We are seeing a Government that by promulgating regulations for its own means is using regulations to be able to stifle initiative stifle business growth and put huge compliance costs—or regulatory creep as it has been referred to—on to business. 
Although this legislation goes a little way in the right direction—a very little way—it does not really address some of the problem areas or the issues and challenges that business face which have been identified through numerous reports. I have here the Small Business Advisory Group’s reports one and two; the McLeod Tax Review report; and the report of the Ministerial Panel on Business Compliance Costs; and of course there have been numerous other compliance cost reports. This bill does not address areas of taxation such as accident compensation the Resource Management Act or labour law. If we are to be serious about taking compliance costs out of businesses—it does not really matter whether they be small businesses or big businesses—at the end of the day we have to be far more proactive and have policies in place that will be able to achieve that. 
We do not get rid of regulation or paperwork by passing more laws. This is what this Government has a tendency to do. It passes laws as symbolic gestures of public action rather than find practical solutions to the real problems we are facing. The Government commonly acknowledges there are problems but in fact makes only minor adjustments which are not sufficient. 
I took it upon myself a couple of years ago to travel to Canada. Ontario has had huge compliance cost issues and it developed a regime called the Red Tape Commission. I was fortunate to spend time with the commission when it looked very closely at legislation. The commission was able to take much of the compliance out of legislation and of course reduce costs to business. In New Zealand regulations are promulgated by the various Government departments or the State sector and there is no accountability but in Ontario any regulation must go through what are known as gateways where there has to be a cost-benefit ratio analysis. There must have been some advantage in introducing that legislation because if there were not why would one have done it? But this Government is commonly just adding more regulation to try to solve problems. If we want enterprise to grow we must be far more proactive than we are. 
I spent time in Australia with the Australian Productivity Commission. 
Hon Maurice Williamson 
: This man has been everywhere. 
LINDSAY TISCH 
: I have also been to Germany and studied Agenda 2010 which again is a significant initiative on compliance costs. 
Paula Bennett 
: I’ve been to Matamata. 
LINDSAY TISCH 
: Well Matamata has the best restaurant in New Zealand—Workman’s Cafe Bar. I have a notice of motion about it on today’s Order Paper— 
Hon Maurice Williamson 
: You’re becoming the Ross Robertson of the National Party.  
LINDSAY TISCH 
: This is a serious topic. If we are to pass regulations we should get them right the first time. Although this bill tonight is a move in the right direction it certainly does not go far enough. We need a drive to maximise opportunities. We want to make sure that the regulating culture within New Zealand is removed and that there is an incentive for public servants and bureaucrats to reduce regulations rather than to produce more when trying to solve small problems. 
I said that I would speak briefly on this matter because I know what Henry VIII said to his many wives: “I won’t keep you long.” So in bringing this matter together to crystallise and articulate this very important subject I tell the House that National will support the first reading of this bill. We want to reverse regulatory creep and to ensure that significant incentives are in place to reduce it. Although this bill is a start unfortunately in our view it does not go anywhere near far enough to make a significant impact on those thousands and thousands of businesses that are the lifeblood of the New Zealand economy. We will be looking very closely at the select committee deliberation to see whether there are opportunities for us to add some value and reduce the real problem of regulatory creep and compliance costs. 
Bill read a first time.