Bayly Andrew; Webb DuncanANDREW BAYLY (National—Port Waikato): I did ask specifically about taxation. This is clause 27(1)(a)(iv) because it specifically mentions treatment of taxation. Hopefully he can turn to his advisers and might get a little bit of advice on: what is the nature of taxation; are these entities subject to some form of corporate tax or what form of tax are they subject to? And I see them just turning over a few pages there that would be great just to give them a bit of time before they brief you Minister.I just want to move on now to Subpart 4 new clause 34(2A): in relation to [the] statutory water … [entities] information required to be disclosed must include information about how the entity is fulfilling its objective to support and enable planning processes growth and housing and urban development and in particular the entity's level of responsiveness in relation to those issues". Now I'm going back under principal stuff which I think the Minister might be a bit more comfortable dealing with rather than specifics; what is the Minister's view around what these water entities must do to fulfil and support those objectives? Is it proactive? Is it reactive? Is it when the conflict comes between whether an entity is going to fund new developments for new housing let's say in a greenfields area as opposed to a brownfields infill or as opposed to repairing the pipes by putting plastic down the middle of them to meet the higher pressure standards which the Minister specifically referred to as part of the quality standards—what is the role of the water services entity and how does it balance those competing demands? Because sure as eggs those are competing demands.CHAIRPERSON (Hon Jenny Salesa): I call on the Minister the Hon Dr Duncan Webb.Andrew Bayly: Tax tax tax!Hon Dr DUNCAN WEBB (Minister of Commerce and Consumer Affairs): Well you are the party of "tax tax tax" and thank you for yelling that out Mr Bayly. So it would be expected that these not-for-profit entities would be unlikely to be paying income tax for obvious reasons but given how they are being structured it's likely that they will have residual tax obligations which will feed into the model. So that's really making sure that the input methodologies are fit for purpose in terms of taking these entities as they come so that the regulated water services providers may have some tax obligations—for example income derived from regulated water services provided as a trustee—and that's why there's the treatment of tax under clause 27(1)(a)(iv). It will allow the commission to specify methodologies which allow it to recognise the impact of tax in its price-quality path determinations. In respect of the material around the obligation to support and enable planning processes the member should be well aware because I think it was after a robust discussion at committee that those provisions were put into this—and I thank the member for his input into that I believe on the Finance and Expenditure Committee—and it is appropriate that that is part of the thinking around any role of the commission in regulating the entities to make sure they are discharging the function of supporting and enabling planning processes growth and housing and urban development and the entity's responsiveness in relation to those issues. And then that refers back to the other legislation which is entirely appropriate."