Adams Amy: International Finance Agreements Amendment Bill — Third Reading 
Text is incorporated into the Bound Volume 
Adams Amy: International Finance Agreements Amendment Bill — Third Reading 
[Sitting date: 21 February 2013. Volume:687;Page:8123. Text is incorporated into the Bound Volume.] 
Hon AMY ADAMS (Minister for the Environment) 
on behalf of the Minister of Finance: I move  
That the International Finance Agreements Amendment Bill be now read a third time 
. Following the first reading the bill was examined by the Finance and Expenditure Committee which recommended that it be passed with no amendments. The bill amends the International Finance Agreements Act 1961. That Act allows the Government of New Zealand to meet its obligations as a member of various financial institutions including the International Monetary Fund the World Bank and the Asian Development Bank. This bill updates the principal Act so that New Zealand legislation takes account of changes the IMF has made to its articles of agreement. These changes were agreed to by the IMF governors in 2008 and 2010. 
New Zealand sees clear value in being a contributing member of the IMF. As a small open economy we benefit heavily from a stable and prosperous global economy. The IMF supports this by providing a global safety net that can mitigate the effects of financial crises and help support trade and economic activity. The financial commitments that we have made to the IMF are effectively premiums to an insurance policy against damage to our economy from an unstable world. Contributing to the IMF and global financial stability is also important for New Zealand’s international reputation. Supporting the IMF and the work it does places New Zealand alongside countries that we often benchmark ourselves with internationally. 
The changes to the articles of agreement reflected in this bill are part of a series of governance reforms the IMF has been undertaking over the past few years. The reforms are designed to enhance the IMF’s legitimacy and effectiveness by ensuring that members’ voting shares and representation reflect their relative economic weight in the global economy. In addition the IMF has linked the reforms that are incorporated in this bill to quota changes to improve the representation of emerging markets at the IMF taking account of their increased role in the world economy. The governance reforms also facilitate an agreed change in the membership of the IMF’s executive board. Once these new rules come into effect the five largest IMF members will no longer be able to appoint an executive director meaning that there will now be an all-elected board. 
In addition to updating the principal Act to take account of the IMF reforms this bill also updates New Zealand’s legislation by repealing some now redundant legislation. The bill also creates a regulation-making power in the principal Act so that future updates to the articles can be made by regulation. 
This bill will simplify the process by which New Zealand meets its international obligations. Overall passing this bill will signal New Zealand’s support for reform additional resourcing and better legitimacy in an important international financial institution. I commend the bill to the House.