Connell Brian: Securities Legislation Bill — In Committee 
Connell Brian: Securities Legislation Bill — In Committee 
[Volume:634;Page:5482] 
BRIAN CONNELL (National—Rakaia) 
: 
 I appreciate the confidence my colleagues are showing in me in taking this call! I start by thanking the officials for the advice they offered to the Commerce Committee. I was negligent in not having raised this issue earlier when I took some calls because the officials did help the select committee work its way through some very complex issues. I know there were lots of questions and comprehension at times was lacking. The officials were very patient and we appreciate their indulgence. I also thank my select committee colleagues for the way they worked in drafting this Securities Legislation Bill as well. The same argument applies. It is complex legislation and we worked collectively in a collegial way in order to come up with the best legislation that we possibly could—albeit I have expressed some reservations about compliance costs and some of the complexities and have raised the spectre of revisiting this legislation in future years if the need arises. 
Importantly Part 3 deals with the sharing of information and I will talk about that in a little detail. The information-sharing power inherent in this bill recognises the public interest in ensuring that regulators working in similar areas cooperate in the performance of their duties and thus enhance the efficiency of their investigation and enforcement functions. It might surprise members of the Committee that that has not been the way we have done things as a matter of course in the past so I think that this is a very sensible initiative. Again I thank the select committee members for working to make this possible. 
Prohibitions against misleading and deceptive conduct have been introduced into this securities and takeovers law and the same considerations suggest that the information-sharing power should be extended to encompass the Commerce Commission’s role under the Fair Trading Act. Again I agree with that measure. It is a very significant and good initiative. My colleagues have touched on the significance of this legislation in the course of the debate and on how important this legislation will be in enhancing confidence in our capital markets. I think information sharing like this is absolutely critical to the success of this legislation so I commend this component particularly to members of the Committee as a cornerstone of the legislation and as something that is extremely important if successful prosecutions are to be brought. 
I have laboured the point in the past and I do not want to bore members with it again but bringing successful prosecutions for insider trading is notoriously hard to do. Without the ability to share information across Government departments and authorities we will continue to have a poor success rate. So this is a very important component of enhancing our intention to capture those who would engage in misleading deceptive or insider-trading activities in this country. 
We should have no sympathy for people who are prepared to engage in those activities. In the past I think there has been the view that white-collar crime like this is something we should not be overly concerned with. Well it is mum and dad investors who are often the target of some pretty unscrupulous people who engage in activity for personal gain which is why I feel so strongly about supporting this legislation and why again without labouring the point I think the information sharing inherent in this bill is a very significant step in the right direction. 
 I conclude by again thanking the members of the Commerce Committee for working through this bill. I know there is one more debate to be had on the title but I was remiss in not raising the point earlier. I know that some of the officials are here tonight. There are questions still unresolved in my mind that I am sure if I had access to the officials they would be able to answer. The Minister in the chair the Hon Lianne Dalziel has done a pretty good job in taking responsibility for answering tonight some of the legitimate concerns and questions and I thank her once again for answering those. With those few words I will conclude.