Key John: Business Law Reform Bill — First Reading 
Key John: Business Law Reform Bill — First Reading 
[Volume:609;Page:6537] 
JOHN KEY (NZ National—Helensville) 
: 
 I was tremendously excited when I picked up this legislation. In fact I was virtually beside myself when I read that this bill was coming before the House. I rushed back from a number of functions that had been on around Wellington this evening to participate in this debate. 
Frankly I was amazed by the Minister’s speech. She was so modest in her claims about the bill that I said to myself I should take a moment longer to review the legislation. Her claims were not the kinds of claims I expected to see in the bill. I read the provisions cutting the corporate tax rate slashing it to 15 percent. So we were there with Hong Kong. I feverishly worked my way through the bill desperately looking for the clause that stated the company tax rate would be 15 percent. I forgave the Minister for that. I said that the Minister gave a modest speech. She left that off the agenda because Dr Cullen is difficult to negotiate with so I moved on. I said not to worry about that. 
Hon Lianne Dalziel 
: Don’t be like Tony Ryall. Be your own man. You can do it. 
JOHN KEY 
: I am my own man. I said to move on to employment legislation. Let us look for the provisions covering the Employment Relations Act. Did I find any amendments to that Act? I was grossly disappointed. Then I looked for the business friendly legislation that would put Air New Zealand in the hands of Singapore Airlines as a partner. I looked for the legislation that would say that Toll Holdings would play a significant role in New Zealand’s rail network. All those things were missing. I then said to myself that I had been conned. 
This is not the Business Law Reform Bill the Minister had promised to me over a quiet candlelight dinner in Bellamy’s. This is not the legislation that I had hoped and dreamt for. This is not the legislation for which I came to this Parliament from my seat in Helensville promising the business community that I would champion through. This is omnibus legislation that is fairly non-controversial. So for the rest of my time this evening I will focus on what this bill really does talk about not on the wonderful things I was looking for such as the Utopia that would have served to the business community the very heights of business law reform that they look for. 
However before I move on to the parts of the bill I implore the Minister to go back to her office to look at what is coming out of the business community to look through that bevy of information across her desk and to make those reforms so that business in New Zealand can go forth. 
Part 10 looks at the Securities Act. In particular it looks to change the provisions as they relate to a prospectus—that is a prospectus can be admitted. I simply flag for the select committee—and I understand the legislation will go before the Commerce Committee— 
Dail Jones 
: A bevy of lawyers. 
JOHN KEY 
: The bevy of lawyers on the Commerce Committee should be careful when looking at that provision. I say that simply because Rod Donald made a very good point in his presentation that the number of employer superannuation schemes has fallen from 2242 to 560. There may be only 560 but the prospectus is a road map. Just as it serves as a road map for the current negotiations happening in Palestine and Israel the prospectus is a road map for peace with investors in a superannuation scheme. If that prospectus is not delivered because of the need to cut costs and because of the need for efficiency but if a manager was to go about activities that were not the intention of those investing in the scheme that could lead to disaster. I would hate to see any member who is an investor in one of those 560 employer superannuation schemes—and hopefully there will be more—get into any danger at all. 
One of the provisions of the bill is that it changes the definition of a wealthy person. Mr Stephen Franks touched on that when he gave his submission to the House a few moments ago. It talks about a wealthy person having net assets of $2 million and an income of at least $200000. That is wealthy when one looks at New Zealand’s household income research and sees that 53 percent of all New Zealand household incomes are under $40000. That is probably an accurate reflection of wealthy. 
But I also want to reflect on the words of Dr Michael Cullen the Minister of Finance in the Labour Government who said that the increase in the top personal tax rate from 33 cents to 39 cents was a “wealth tax”. Those persons were earning $39000 20 percent of the annual income of a wealthy person as registered here. I hope that Dr Cullen will see it within his heart to come to the House and make a personal statement or a ministerial statement and confess that he was indeed wrong— 
Dail Jones 
: Again. 
JOHN KEY 
: —that he was wrong again that a wealthy person is not someone who earns above $60000 but someone who earns above $200000 and that he will change the top personal tax rate to reflect that. 
The legislation includes a number of other important parts and I touch now on the provisions dealing with the Superannuation Schemes Act which include the ability to send abridged accounts to investors in the scheme instead of the annual report. In some respects it is an important amendment that could play an important role in the sense that so many of us as investors receive information that is really wasteful. There are better ways of transmitting that information. We could transmit it by a set of abridged accounts with a full set of accounts available on the website. That could be a far more effective and efficient way of investors being able to get that information. 
I also touch on the provisions dealing with the Unit Trusts Act which see the maximum penalty for offering or issuing unit trusts contrary to the Act increased from $1000 to $1 million. That has to be one of the most substantial increases that has come before this House. For dishonesty the penalty has gone from $200 to $200000. Those are significant increases and I am sure the Commerce Committee will look at them and apply them to see whether they befit the legislation. 
I also touch on the provisions dealing with the Commerce Act which allow the Commerce Commission to use video technology. As someone who has spent a considerable period of time in the business community and managing a business of a global nature I certainly understand videoconferencing and the benefits of that and I would argue very strongly that the Commerce Commission should have that tool available to it. It is one of the reasons that National supports this legislation. 
National is happy to put forward and promote any legislation that comes before the House that is business friendly. We are supporting this legislation. We will support it to the select committee but we urge the Minister to go back to her office tonight because it is never to late to put out a Supplementary Order Paper that might put a smile on the dial of the business community in New Zealand and make it even more productive so that we might go forward as a richer and wealthier nation. 
Bill read a first time and referred to the Commerce Committee. referred to the Commerce Committee