Willis NicolaNICOLA WILLIS (National): I welcome the opportunity for Parliament to consider this bill. The reason for that is that I am a big believer that we can bring market mechanisms to bear on the challenge of addressing climate change and we can by using market mechanisms create strong financial incentives for the private sector for businesses and for individuals to innovate and to make changes that will mean fewer emissions. This bill I think could potentially be a step to ensuring that the market can more properly react to the challenge of climate change and make changes to business practices accordingly.I can't help but think that this is the sort of bill that may not have happened if we had a different leader of the Green Party. I want to commend Minister James Shaw for his recognition that climate change will never be an issue that can be solved by the Government acting alone nor is it an issue where we need pit business against Government; in fact the best thing we can do is motivate businesses and individuals to see the upside and to innovate in order to address climate change. I think that that is a constructive approach to take.So in creating further disclosure requirements around climate-related issues what does that achieve in terms of the market? Well first of all if done well it can ensure that better risk assessment takes place. It can facilitate better capital allocation so that consumers and investors can be more aware of how the activities of a particular financial entity are both contributing to and addressing climate change but importantly also so that investors can understand where the risk for a company may lie if it continues with a current set of activities that will actually further climate change emissions or that will put the financial stability of that entity at risk. These disclosures done well can also help with strategic planning.But of course the challenge always with a Government-mandated set of reporting requirements is getting the balance right between the good aims of transparency and consistency and the flip side of that which can be that companies face a heavy compliance burden and where the reporting is not relevant to their activities or it potentially creates significant costs in its collection that aren't outweighed by the benefits. So it is important that we get this right.I am encouraged by the fact that many commercial entities in New Zealand listed on the NZX—banks insurers—have already started this process of reporting to their stakeholders where they sit in terms of climate change risks opportunities and the way they conduct their activities; what they see coming on the horizon. I'm encouraged by the fact that many of those same entities have welcomed a bill of this sort because they know that it would provide consistency across entities and across agencies.But I think as I say that it is very important that we analyse this. I note the recommendation that this bill go to the Economic Development Science and Innovation Committee. I have to say Minister Shaw I'm a bit surprised by that—not Minister Shaw's responsibility but I note that in reference to his earlier speech—because I think as many members will agree fundamentally this is an issue about business reporting financial reporting and I would have seen a strong case for the Finance and Expenditure Committee to be the select committee that assesses this bill. I also want to register my concern and National's concern with the shortened report-back period of four months. These are detailed disclosures with far-reaching consequences for the commercial entities involved and a thorough select committee process is warranted.So National supports this bill and we look forward to a thorough select committee process. It is important we get this right.