Williams Andrew: Companies and Limited Partnerships Amendment Bill — First Reading 
Text is incorporated into the Bound Volume 
Williams Andrew: Companies and Limited Partnerships Amendment Bill — First Reading 
[Sitting date: 24 July 2012. Volume:682;Page:3863. Text is incorporated into the Bound Volume.] 
ANDREW WILLIAMS (NZ First) 
: 
 I take a call on behalf of New Zealand First in the first reading of the Companies and Limited Partnerships Amendment Bill. I also note that this is the first reading and we similarly have the concerns mentioned by some of the other Opposition parties that this bill has taken 2 years to get to this House for its first reading while many other bills have been pushed through under urgency by this Government in order to follow its agenda of selling State assets pushing through social welfare reforms and other such things. As something that does assist the New Zealand economy does tighten up the laws in terms of the way companies act onshore and offshore in relation to New Zealand commerce and has unanimity across this House across all parties to support it it is somewhat concerning that this Government has sat on its hands for 2 years and done very little since the days of the Hon Simon Power taking it to Cabinet back on 28 July 2010. 
It is disappointing too that this bill is seen suddenly as being able to be pushed up to the top of the list while bills that for instance a month or so ago were in the name of the Hon John Banks such as the Trade (Safeguard) Measures Bill and also the Regulatory Reform (Repeals) Bill which were right at the top of the list and being considered mysteriously disappeared off the list around about the same time as the inquiry by the police commenced in terms of the mayoral electoral returns for the Auckland mayoral race. So it is somewhat disappointing that this Government chooses to operate in this manner in that suddenly bills disappear off the list that were previously being considered—because of other agenda reasons it chooses to take them off the list and remove Ministers from being in the firing line or in the debating chamber to respond to such things—while others because of obviously media attention such as that given to this one in the last week in the  
National Business Review 
 suddenly rise to the top. 
 However it is at the top and we are very pleased that it has now finally surfaced. It is particularly pleasing that it has surfaced in the 19th birthday year of New Zealand First. How appropriate that it does come to the fore. We will support it as a party as we did all those years ago back in 1994 the wine-box inquiry into corruption and incompetence in those days. You can imagine how pleased our party is. It has always been the party that has championed and pushed for investigation into corrupt and incompetent practices in commerce and we are very pleased to see that this bill has now seen the light of day 2 years after it first went to Cabinet. 
It is disappointing to hear that we have been dropped off the EU white list along with that other vanguard of good commercial practice Russia. New Zealand is now linked in the same boat as Russia having been dropped off the EU list and it is concerning that our country comes to that point with our very good friends in the European Union. We would hope that this bill can be moved through very quickly so that we can perhaps once again get back on to that auspicious list to ensure that as a result New Zealand is not held in lower regard. 
Basically there are some very good points in this bill in that it does require a New Zealand resident administrative agent to be living in this country. So it will take away the risk where up until now companies have been able to register from offshore in New Zealand and basically there is no one residing here. Therefore as we have heard in the House tonight activities have been able to occur through “window” companies and shell companies. It is a very good move to close that loophole down. It also means that at least one person must live here who is legally responsible for the entity’s administrative affairs and therefore there is somebody answerable in this country for what is going on within the particular company or organisation. 
The bill also gives the power to warn the public about suspect entities by a note in the register. Again this is a good move. These enhanced powers of the registrar allow the public to be warned about things in the register. This is a good thing and it alerts unsuspecting people in New Zealand and internationally to perhaps some of the goings-on within organisations and companies. 
I also like the fact that in terms of the criminalisation of breaches of certain directors’ duties the bill does now allow for imprisonment not exceeding 5 years or a fine not exceeding $200000. Again that is a good direction in terms of sending the right message out there that if people are going to break the laws of New Zealand in relation to the Companies and Limited Partnerships Amendment Bill when it becomes an Act they could face up to 5 years’ imprisonment as a result. 
Also it is interesting that this bill basically tidies up a lot of other administrative errors in terms of some of the commerce things to do with the Limited Partnerships Act and other similar Acts to do with commerce and other commercial Acts. Therefore really it is very much also an administrative bill to close some of the loopholes to tidy up some of the red tape around some of the commercial activities and to ensure that the Companies Office and the registrar’s office are able to act according to these prescribed laws in this bill. 
So New Zealand First is happy to support the bill. It has got the support of all the parties across the House that we have heard from tonight which is very pleasing. We commend the Minister of Commerce and hope that this bill does not go back down to a lower level on the list. We hope that it is maintained at pace and moved through the Government’s business and Government bills before this House. We hope that it can be expedited very quickly so that the reputation of New Zealand and our standing in the international commercial community can get back to where they were. So New Zealand First supports this bill and commends it to the House.