Tabuteau Fletcher: Third Readings —Text is incorporated into the Bound VolumeTabuteau Fletcher: Third Readings —[Sitting date: 30 October 2014. Volume:701;Page:466. Text is incorporated into the Bound Volume.]FLETCHER TABUTEAU (NZ First):May I take this opportunity to congratulate you personally Mr Assistant Speaker on your appointment to the Chair. It is great to see you there. On behalf of New Zealand First I rise in support of the bills divided from the Accounting Infrastructure Reform Bill. It is an exciting topic. I am sure one of the Ministers would class it as exciting and sexy.New Zealand First is very much supportive of enabling business and making business practice that much more efficient through the simplification of processes especially for our Kiwi-owned organisations. The question does arise however at what point does efficiency go beyond what is reasonable and fair? I reflect on previous discussions in the House today in fact on matters also of great importance to business and the people of New Zealand. It should not be the role of this Government for example to allow private enterprises to spend the next few generations treating their people as guinea pigs trialling employment scenarios that undermine the humanity inherent in their own human resource. It will come to a stage of protest and revolution as those in our casualised workforce desperate for what work they can find slowly realise they are not just numbers on a balance sheet and businesses will be forced to learn or hopefully will learn once again the true cost of undermining their human resource. They will be cutting and slicing up the livelihoods of people in New Zealand.But I do digress.The ASSISTANT SPEAKER (Hon Trevor Mallard): You do.FLETCHER TABUTEAU: It is important to note the intent of the bills divided from the Accounting Infrastructure Reform Bill. The legislation widens the definition of those entitled to perform audits—a more comprehensive and accountable system which will authorise registration of overseas audit firms for example. At the same time it fixes an anomaly that has very much restricted the structure of firms or organisations wanting to be recognised auditors. Now New Zealand auditing firms can incorporate using the company form if they so desire. New Zealand First expects to see an improvement in efficiencies in this area as firms structure themselves as they see fit.At the same time the legislation does remove some of the requirements set out in law. Initially one would be wary of the intent to broaden those qualified to undertake such a task and then additionally remove some of the rules outlining how certain tasks can be undertaken especially with regard to this very important role within our business sector. Many of us may think of a small bespectacled individual sitting in a darkened room and hovering over spreadsheets and calculators with their three coloured pens at the ready but let them show up in your office and one will invariably see the quiet power they wield. Woe betide you if you have a bad audit.Auditing is a tool for accountability. An audit is a thorough examination of a company’s financial records and typically involves a chartered accountant working through them to ensure they are a true and accurate reflection of a company’s financial position. An audit provides more financial transparency to shareholders and stakeholders and security that its financial position has been checked by a chartered accountant. New Zealand First is content however with the increase in those able to undertake audits given new section 42E being inserted in the Charities Act where for example with regard to charities if a charity entity fails to comply with new section 42C the charitable entity commits an offence and is liable on conviction to a fine not exceeding $50000. Further the legislation outlines the newly formed institute of accountants’ statutory requirements to control and regulate the profession of accountancy practised by members in New Zealand. We are satisfied there are checks and balances.A name change away from the New Zealand Institute of Chartered Accountants’ “chartered accountant” endorsement to a generic “qualified statutory accountant” title will allow for religious considerations and what the committee has decided are conflicts with the New Zealand Bill of Rights Act 1990. The legislation will improve the effectiveness of charities offering different criteria for different-sized charities.As outlined under the new Section 42D a charitable entity is defined as “large” essentially if its expenditure over the two preceding periods is more than $1 million or “medium” if over the two preceding periods its total operating expenditure is less than $500000. Because these are large sums of money it would seem to me it is important that our larger charities provide financial statements that are of a high quality. As noted earlier it is also heartening to see that our smaller charities will be able to use money as it is intended rather than towards overly onerous compliance costs.The intent of the legislation was to free up some of the restraints that were being imposed at the time on the Institute of Chartered Accountants. I note despite the legislation not having passed yet that the New Zealand Institute of Chartered Accountants is no longer and that we already have the organisation now named Chartered Accountants Australia and New Zealand. I was privy to some of the discussions held by the membership of the former New Zealand Institute of Chartered Accountants over the past year or more as a stakeholder as head of the business school. It was in this role that I was aware of the debate that did in fact rage up and down the country. I take this opportunity to commend my friends and those members for their decision to merge. I hope the combined approach works for you all as you hoped it would. I have seen much change within the organisation itself already. I acknowledge that the combined branding brings some inherent strengths especially for labour mobility across Australia and New Zealand particularly but also into the wider world.It was of interest to note also that the new legislation will allow the New Zealand Institute of Chartered Accountants to disestablish the role of president and vice-president. Unfortunately one of the arguments for this is that the Australian equivalent will have its own presidential roles rendering the New Zealand equivalent unnecessary. New Zealand First hopes that the New Zealand branch of the amalgamation can maintain its side of the relationship and hold New Zealand’s perspectives and interests to the fore.If this legislation was created in order to help businesses in meeting their obligations and in so doing to save them some costs and time then I commend the committee for its work. This legislation does what it sets out to do. The accounting and audit industry will now be that little bit more efficient and effective in what it can do. This is why New Zealand First stands in support of the legislation. New Zealand First will always stand in support of any legislation that is good for New Zealand business. We know the incredible work of the businessmen and businesswomen of New Zealand and this type of legislation which serves to lower costs of compliance is an example of a common-sense policy we can and will always support.The work of the Commerce Committee is indicative of what can be achieved when a bipartisan approach is taken when a committee is open to submissions and is willing to listen to those most affected by the changes proposed. I commend the committee for the amount of work the level of complexity that had to be worked through together in order to achieve this outcome. Can I suggest that this committee provides a good working model that should be followed by all other committees in this 51st Parliament. Thank you.