Little AndrewINCORPORATED SOCIETIES BILLSecond ReadingHon ANDREW LITTLE (Minister of Health) on behalf of the Minister of Commerce and Consumer Affairs: I seek leave to present a legislative statement on the Incorporated Societies Bill.SPEAKER: Leave has been sought for that course of action. Is there any objection? There is none. The legislative statement is published under the authority of the House and can be found on the Parliament website.Hon ANDREW LITTLE: On behalf of the Minister I move That the Incorporated Societies Bill be now read a second time.The Incorporated Societies Act as it currently is is a vital piece of legislation that supports civil society. It supports our liberal democratic ways that we have in this country. But it was enacted in 1908 which is well more than 100 years ago more than 110 years ago and it was well overdue for reconsideration. And so I'm very grateful on behalf of the Minister for the work that the Economic Development Science and Innovation Committee have done on the Incorporated Societies Bill to refashion the framework that we have for incorporated societies in this country.There are literally thousands tens of thousands possibly even hundreds of thousands of organisations representing all sorts of interests and endeavours in life. The reason we have this legislative framework is to protect the members but actually also to protect those on the committees those wielding the extent of executive power within those incorporated societies so that they can make decisions free from the risk of personal liability although not responsibility. We need a piece of legislation that makes sure that it reflects the modern mores of both accountability and responsibility but allows people to get on and do those things that they enjoy doing when they come together with like-minded citizens to do that.The select committee has made a number of changes. There was considerable support for the rewriting of the legislation but the bill in its current form prohibits incorporated societies from being carried on for financial gain and of course that continues. Under clause 23 of the bill the society is deemed to be carried on for financial gain if members distribute any gain or profit or assets that they have and of course that is an absolute no-no for an incorporated society. I know that one of the things I was very keen to see is a change in the law—because it's not unusual for different groups of people in different parts of the country to form together for the same activity and then for those groups in different parts of the country to want to come together and the ability to amalgamate different incorporated societies all with the same object and with the same activity to come together without falling afoul of tax laws. This provision about benefiting members has been very important and that is now provided for in the bill. Some societies who submitted on the bill were concerned that the way this non - profit-making clause was drafted might prevent them offering hardship grants or scholarships and what have you and so it has been amended to make sure that those sorts of benefits even if they benefit a member are legitimate in the pursuit of the objects of the particular society.Another area is umbrella societies or federations perhaps—national organisations whose members are themselves different societies and there may be a need for some cash that goes to the national organisation to go to some of the regional organisations or the federated members. And so that is not prohibited in this—members being able to gain financially as part of an incorporated society.The second set of changes relate to the financial reporting of incorporated societies. Under the bill societies that qualify as being small would benefit from that exemption. I know for most members of incorporated societies the prospect of an annual general meeting is the highlight of the calendar year! And being able to go through the accounts and find out how the executive committee has spent the money how they've raised the money where the money has gone which loans have been taken out what loans have been repaid—these are all vital matters in the lives of many people and in the life of our communities and societies. I think the provisions for this in the bill have been modernised are now relevant to the 21st century and to what it means to be in an incorporated society in Aotearoa New Zealand in the 21st century.The select committee has recommended lifting the thresholds for the exemption to qualify as small and therefore not required to produce these audited accounts. This will mean that hundreds of amateur sports clubs in particular around the country won't be required to hire an accountant and pay the associated fees. And I know being involved in the periphery in a fledgling sport—the sport of floorball—in New Zealand where little societies are coming together now to form these teams and are doing a great job but they are of a size that it just does not make sense to have to go out and pay an accountant to present accounts. In every group of 10 or 20 people in New Zealand there's usually somebody who is sufficiently mathematically inclined and accounting-concepts literate to be able to pull together a set of relevant accounts that gives people an idea about what money's been spent and how it's been spent and where the money is.So those changes have been made. Altogether I think we can see that we are now developing this House is now developing a piece of incorporated societies legislation that is relevant to the 21st century that will I think engender great excitement great hope and great confidence in people being able to come together and enjoy their like-minded activities with each other and benefit New Zealand as a whole. On that basis I commend the bill to the House.SPEAKER: The question is that the motion be agreed to.