Coffey TamatiTAMATI COFFEY (Labour—Waiariki): Thank you Madam Assistant Speaker. It's a pity that the previous speaker Tim van de Molen isn't going to be supporting this bill through the House because it is a good one. I got the compliment in there too because he started talking about KiwiSaver and just how well it's doing. We need to just give a little nod to the fifth Labour Government who brought that in back in 2007. So based on the success of how KiwiSaver has gone we're currently in this position now where we're having this conversation at all.I support this bill—this KiwiFund Bill. I think it's a great initiative. I'm going to support it through to the first reading. It's designed by my colleague over here Fletcher Tabuteau from New Zealand First. It sets up a working group—yes—and that was the main criticism from the previous speaker: that working groups are bad and Labour sets up too many working groups and we probably shouldn't. If by setting up working groups we're talking about setting up a group that is going to do its due diligence and give advice in areas that they are experts in then actually that's a really good thing. In fact that's called consultation—consultation with experts. So I don't quite understand where he's coming from—where he bats down the thought that a working group is a bad thing. I think that a working group is a great thing.In terms of what this bill is going to do it's going to establish this group and we're talking about five people who are experts in their field. So we're looking for people from banking from savings and people that are experts in retirement issues. These people are going to convene get together and they're going to investigate into something that the Opposition might not think is that important—you know a fee here a fee there. But what this bill does is it goes in to bat for the little guys you know—the people that can't actually afford a few dollars here and a few dollars there; those Kiwis out there that have got their money invested in KiwiSaver. Yes per provider it might not be so much but in fact if we have a look at collectively how much was taken recently—I've got it right here. Simplicity which is a low-cost passive KiwiSaver scheme provider—Sam Stubbs—he said that In January [2018] KiwiSaver schemes charge a combined $40 million in fees."—$40 million in fees. Yes the KiwiSaver fund is doing well—$40 billion is what it's doing—but when it's skimming off the top and taking $40 million in fees then we need to look at this. We need to decide what actually is going on here.So the idea of setting up a working group to look into the accountability requirements of current KiwiSaver providers relating to their fees and their investment practices—it's a good thing. Also second to that establishing this working group—advising on whether or not we should be establishing a Government owned and operated KiwiSaver provider. These are two very very simple aims of this working group and this KiwiFund Bill is talking about this. I think that it's a great thing and we need to be supporting this through. I just can't understand the Opposition's opposition to it because Labour and New Zealand First both share the concern that KiwiSaver fees are way too high. So if what we need to do is set up a working group to sort this out then that's exactly what we need to do.I'd also like to talk through a couple of other points. A Treasury report from September 2015 also pointed to the fee levels for KiwiSaver measured with reference to the OECD's operating expense ratio data being in the upper third of comparative countries. We've even got a couple of Auckland University of Technology (AUT) academics that in their report KiwiSaver Who is Really Reaping The Benefits? alluded to the fact that "Annual fees [on] KiwiSaver … are far above international standards and are not justifiable given their relatively poor performance since inception." That's the opinion of two academics but that's what we're going to be sending to select committee—advice like that; columns like that—so that this working group can actually investigate into this.Also the Commission for Financial Capability stated recently that KiwiSaver fees are one area where it's not necessarily true that you get what you pay for. Higher fees don't necessarily mean high returns or better service. Dr Ayesha Scott from AUT also said and I quote "Ultimately the best advice for anyone embarking on KiwiSaver investment is to choose the fund with the lowest fee structure for the fund type that you are investing in".This is a good piece of legislation and I'm going to support it through to the first reading. It's going to head over to the Economic Development Science and Innovation Committee of which I am a member so I'll be following the progress of this bill through the House and I welcome it. Kia ora."