Logie JanJAN LOGIE (Green): Thank you Madam Speaker. Boy did I get lucky today to get to speak on this bill which obviously so many people have been fighting to get to speak on and to offer the Green Party's support for the Financial Market Infrastructures Bill. This is basically setting up regulation of financial market infrastructures (FMIs) and I must put on record that I share the view of Dr Russell and the Hon Judith Collins of my concern and discomfort with pluralising infrastructure". I hope the committee does debate that quite thoroughly because it's jarring and I think we want our legislation the titles particularly not to be quite so jarring.I would recommend anyone who's following this debate or looking at this speech randomly to go to the speeches of Dr Russell and the previous speaker Mr Bayly for actually a fuller understanding of what financial market infrastructures are. It was described by a previous speaker as the plumbing of our financial system but I don't think I'm going to be the best person to represent the detail of it and I would commend people to those speeches. I don't think that the phrase "[these infrastructures are] systems that provide trading clearing settlement and reporting services [for] payments securities derivatives and other financial transactions." will mean anything to most New Zealanders. But I am encouraged that we have James Shaw on behalf of the Green Party who will be engaging with the detail of this along with others in this House who are more familiar with this context and language.I have heard in some of the previous speeches an issue or concern raised that there doesn't seem to be a problem in the system so just a questioning about the need for this legislation. I would note that the need or the value of this was raised by the International Monetary Fund in looking at this as our position within a global system and that the Cabinet paper also recognises market failure in this area in four particular areas. So one that there are currently coordination difficulties across the financial market infrastructure high concentration of market power which means if there's failure—and the example that was given previously of one financial market infrastructure being EFTPOS—in that system that would have massive impact on our entire economy. So we have an interest as a country and a responsibility I would argue as this House of ensuring that we have appropriate oversight and can do whatever's possible to prevent any failure in that area. And imperfect information—that many people who are participating and using say derivatives or engaging in other aspects of the financial system; historically we've seen the consequences of when people are not aware of the risks that they may be exposed to because of the complexity of many of these arrangements. So this legislation helps us create a system to give assurance to people and to reduce that risk or ensure people are aware of it where it exists.The fourth point of market failure that was identified in the Cabinet paper was negative network externalities where a financial market infrastructure operator may not fully consider the wider social cost of their conduct. So I think that really is raising in more simple language I guess that it can be very easy for businesses to consider their work in a very narrow frame without looking at the impact on the entire society. There is a responsibility for us when we're looking at our financial system to make sure that it is fitting with the rest of our social context.So it will address this market failure by establishing information-gathering powers that allow for ongoing regulatory oversight and monitoring will create a designation scheme to enable the creation of regulatory standards for FMI operators and provide for different types of penalties for breaches which will include civil penalties for technical breaches and criminal for high-level moral culpability. We do need to acknowledge the potential and the historical international experience of that. It also creates significant crisis management powers for regulators including establishing statutory power to issue directions to financial market infrastructure operators or institute a statutory management plan when specific grounds are met. So they're the key parts of what this legislation does and we are happy to support it. Thank you."