Andersen GinnyGINNY ANDERSEN (Labour): Thank you very much Madam Assistant Speaker. Thank you to their member who's spoken as well. It's a great privilege to be able to speak on the second reading of the Trusts Bill and before anyone claims any glory I think it's important that we name and acknowledge all of those that have had a role in developing this much-needed piece of legislation. So it is true that this bill was introduced in August 2017 but off the bat can I please note that the proposed reforms are largely based on the good work and recommendations done by the New Zealand Law Commission back in 2013. It's important that we have that research done and that good work done in order to inform policy and legislation such as the bill before us right now. So I would like to acknowledge the work of Amy Adams and the previous Government and the Law Commission in terms of where this bill has got to today. I would also like to acknowledge the work done by David Goddard QC who was a really good help and assistance to the committee in a particular technical area and gave further insight and help to develop and modernise this important piece of legislation. In addition to that we had two lawyers on board. We had Dr Duncan Webb and the Hon Christopher Finlayson who helped form a subcommittee within the committee with expertise to be able to make sure all the proper work was done. In doing that we received 34 written submissions and 14 of those presented to the committee—and there was a range. The submitters included those from the judiciary professional organisations and interested groups and individuals.When we're talking about trusts it's important to acknowledge just how prevalent they are in New Zealand. The estimated number is between 300000 and 500000 trusts ranging from professional to family trusts. You only need to take a look at the annual declaration of pecuniary interests to see how prevalent trusts are to members even in this very House. Trusts are a key part of our infrastructure so it's very important that that legislation is up to date and that's exactly what this bill does.Let's just take a very quick look at the main issues with the current law and why this bill is needed. There's a clear lack of understanding in the general public around how trusts work and the fact that we are requiring lawyers to act at times when it would be easier if the law was just clearer to understand. So in order to not have things get progressed to court in an unnecessary way it's important that we modernise this legislation. In saying that it is at least 60 years since the trusts legislation has been updated so we can understand how there would be a big change over that period.The second point I'd like to make is how the current legislation does not reflect how trusts are working in practice right now. It is narrow in scope and it is making it far more difficult to draft trust deeds. Trust administration is overly complicated when it doesn't need to be so so making changes to trusts can often require having to use lawyers and for it to be more expensive to the average household than it should be. Dealing with simple administrative matters often requires application to the courts when that shouldn't be needed. So what the bill does is it updates and modernises what we have. It will make trust laws easier to access and understand by replacing the Trustees Act 1956.The bill sets out the core trust principles and clear rules about how trusts should be managed so that trustees can clearly understand what is required of them and also of the beneficiaries so that they can understand their rights. The main change that this bill includes is a description of the key features of a trust and how it will operate and it spells out the duties of those trustees. There are clear rules when the trustees are required to act and when also they are required to provide information to beneficiaries so that beneficiaries are able to enforce the trust when they see that it is fit. Practical and flexible trustee powers will be able to make sure that the investment in the trust is done in the most appropriate way and it also makes the important rule which can be contentious about removing and appointing trustees without having to go to court if not necessary. So in terms of a time when we would like to see things not proceeding before a court it will provide a far more flexible piece of legislation that is workable in daily life.The ability to hold property for the benefit of somebody else in a trust is still an important one today and this is because trusts as I've mentioned are so important to very many New Zealanders. Some trusts hold the family home for the use of future generations some become trustees through a will and others set up a trust for a corporate structure purpose. But it's good to see that this bill is supported across the House as already mentioned.The Trusts Bill will be of significant benefit by supporting our wide and varied use of trusts in New Zealand but it's also important to mention that the bill is a modern statute that is fit for purpose in the 21st century. It's an ambitious bill because it seeks to keep alive much of the common law that has developed over many centuries. This bill will allow the courts to interpret the bill in the light of common law but it also adapts and responds to a modern and changing society and looks at the many different ways that trusts are being used and it enables the average New Zealand family to access and utilise a trust without having to draw upon unnecessary resources to go before the courts.I am pleased to be a part of this process. It's a good bill. I'm pleased it's supported across the House and I commend it to the House.