Mark RonHon RON MARK (Minister of Defence): Thank you Madam Assistant Speaker. Actually it's been quite interesting that the passage of this debate has gone from being sort of those of us who are not particularly versed in financial derivatives and in financial markets listening to the odd speaker—Andrew Bayly and Deborah Russell who has just left I think—talking about some of the finer detail. It did actually tweak my mind to some things that I had seen and observed in international media going back to that time of the global financial crisis.Dr Deborah Russell is quite right to point out what occurred in that time. I think if you go and google up and have a quick look at around that time when we were talking about swaps and Andrew Bayly raised the issues there members might recall one of the things that occurred that gave the EU such concern. If we go back to that time JP Morgan were fined $65 million Cargill were fined $10 million dollars Commerzbank were fined $12 million and then there was a bigger action taken against JP Morgan I think and Deutsche Bank. There was a partnership arrangement in some dealings with swaps and that incurred a €485 million fine. Deutsche Bank—another fine of about 7.8 million. And all this comes back to the way in which swaps were being managed and deemed by the courts of those jurisdictions to have been improper and were punished accordingly.If members want to get a look as to what was going on at that time I'd probably recommend that they watch the movie The Big Short which was an excellent movie showing how players at this very high end of the financial markets made considerable amounts of money dealing in things that most of us mere mortals of modest income and modest investments just only dream of. So I guess it's with that backdrop that New Zealand First wholeheartedly and wholesomely supports this legislation that's before the House.It actually has also got me reflecting somewhat on the circumstances and trading and the way certain financial transactions were managed and decisions were made in this country that were highlighted by the Rt Hon Winston Peters when he exposed the dealings in the wine-box; different to this I know but it does serve to remind us that unless we keep our eye on the ball in some of these areas where most of us don't have a lot of understanding there are very high risks of penalties and consequences being foisted upon the average New Zealander who does end up paying through increases in banking charges and increases in interest and increases in insurance and all the rest of that.So this bill from a New Zealand First perspective brings us to meeting the requirements set by both the G20 and the EU. This bill aligns New Zealand with international best practice and will improve the integrity of our financial system. This bill is an omnibus bill. It brings New Zealand into line with other countries who have over recent years made changes to address significant risks in global financial markets specifically the G20 and the EU. With these changes New Zealand entities can continue to access these international markets. Our legislation must put us in a position to be able to meet the requirements of the reforms made overseas and particularly as we know in the EU—somewhat critical if this Government is hoping to secure a free-trade agreement with the EU and something I am looking forward to our wonderful Ministers Parker and Rt Hon Winston Peters successfully concluding in this term of Government. I have my fingers crossed and I look forward to something of that nature happening.If we are shut out internationally through not passing this legislation the disruption to businesses and the increase in funding costs may be very significant including through the impact on the banking sector and the possibility of increases in interest rates. The big picture is that without these amendments through this bill there is the potential for significant risk to the New Zealand economy and we can't as a trading nation afford for that to happen. New Zealand First wholeheartedly supports the passage of this bill.Bill read a first time. Bill referred to the Finance and Expenditure Committee.