Cunliffe David: Financial Markets (Regulators and KiwiSaver) Bill Auditor Regulation and External Reporting Bill — First Readings 
Cunliffe David: Financial Markets (Regulators and KiwiSaver) Bill Auditor Regulation and External Reporting Bill — First Readings 
[Volume:667;Page:14188] 
Hon DAVID CUNLIFFE (Labour—New Lynn) 
: 
 Occasionally in this House I feel as if I have come down in a parallel universe: a universe where National is no longer putting up “Iwi/Kiwi” billboards but is passing foreshore and seabed legislation that is half-decent and a universe where National is telling Labour that we were too soft on white-collar crime and corporate embezzlement. I am glad that I have come down in this parallel universe because I rather like the new tough anti-market National members and it is about time they got off their backsides and passed this legislation. We will support its referral to the select committee but we are going to have a very careful eye. 
John Hayes 
: Are you the second or the third coming David? 
Hon DAVID CUNLIFFE 
: There is the brain of the Wairarapa. He must be taking stimulants rather than depressants today because he is making a wonderful contribution to the House. 
I will not repeat history; I will not go through the very many things that Labour did to tidy up the regulatory wasteland that we inherited from the previous National Government. All I will say is that it is good to see the work in which the Hon Lianne Dalziel made huge progress being continued by this Government— 
John Hayes 
: The violin. 
Hon DAVID CUNLIFFE 
: —and I commend the intent. I am being nice to Mr Hayes; it will not happen often. I commend the intent of this legislation. 
However it is important for us to note right at the outset that if the Government and this Parliament are to collectivise the enforcement powers of the market into a single financial markets regulator it is essential that that regulator is beyond reproach and is able willing and ready to deliver the scrutiny that this legislation demands. In light of the debacle of South Canterbury Finance and the endemic conflict of interest accusations surrounding Mr Simon Botherway the chair of the committee of the Securities Commission and the chair of the establishment board of the Financial Markets Authority let me say two things on behalf of the Opposition. 
Mr Botherway must immediately stand aside from the establishment board. The conflict management process has been appalling and he is tainted by it. He is tainted by his late declaration in relation to the fact that Allan Hubbard’s South Canterbury Finance bankrupted his brother by putting his companies into receivership. That should have been put on the table at the start; it was put on the table only when my colleague Ruth Dyson put in written parliamentary questions and that is appalling. That is why the Ombudsman is investigating and that is why Mr Botherway must immediately stand aside. 
But I am afraid that the issue goes rather deeper than that because it is not just the process that led up to the statutory management of the Hubbards that has caused great concern around New Zealand. Mr Botherway also appears to have worked closely over many years with the primary beneficiary of the taxpayers’ bail-out of depositors in South Canterbury Finance Mr George Kerr. In fact I am informed tonight that they were at school together at Christ’s College from 1978 to 1984. They studied at Otago University doing B Com degrees together at the same time and they then worked together at Spicers Portfolio Management where they encouraged its sale to AXA at Brook Asset Management then at Sterling Grace and Tempus Capital. In other words the numero uno regulator and the numero uno sharpie who has made tens of millions of dollars from the taxpayer are bosom buddies from way back. 
I want the Minister of Commerce to assure the House right now that the chair designate of the establishment board of the Financial Markets Authority has severed all ties with George Kerr and all ties with any entities associated with the heartland bank that is poised to sweep up the assets of South Canterbury Finance. 
Peseta Sam Lotu-Iiga 
: I raise a point of order Mr Speaker. We have heard in the last 3 minutes this gentleman a former Minister refer to a Simon Botherway. I just want to see the relevance of what he is saying to this bill— 
Mr DEPUTY SPEAKER 
: No I need no further comments. This is a first reading speech which is a wider-ranging speech than some speeches and the member is relating what he is saying back to the primary bill before us. 
Hon DAVID CUNLIFFE 
: To clarify that I say of course Mr Botherway is the chair of the establishment board that will set up the Financial Markets Authority which this bill seeks to put in place so he is likely to become the chair of that authority. 
Debate interrupted.