Smith Nick: Reserve Bank of New Zealand (Covered Bonds) Amendment Bill — First Reading 
Text is incorporated into the Bound Volume 
Smith Nick: Reserve Bank of New Zealand (Covered Bonds) Amendment Bill — First Reading 
[Sitting date: 22 May 2012. Volume:680;Page:2269. Text is incorporated into the Bound Volume.] 
Hon Dr NICK SMITH (National—Nelson) 
: 
 It is entirely appropriate in Budget week that the House is considering the first reading of the Reserve Bank of New Zealand (Covered Bonds) Amendment Bill because part of the Government’s agenda in the work that our Minister of Finance Bill English is doing is rebuilding confidence in the finance markets. It is part of a broader package— 
Andrew Little 
: When is that due to start? 
Hon Dr NICK SMITH 
: I see that Mr Little is interjecting. The challenge I have for Mr Little is this: when he was president of the Labour Party and Labour was in Government did he raise a finger— 
Hon Clayton Cosgrove 
: Oh careful. 
Hon Dr NICK SMITH 
: —for the tens of thousands of mum and dad investors who were burnt so badly in finance companies? The reality that Mr Little and Mr Cosgrove need to accept is that they passed over to this Government a basket case in terms of the management of our financial markets. Never in the history of New Zealand did so many investors lose so much because of the failed regulation of the finance companies that Mr Little’s Government was part of and what this Reserve Bank bill is about fixing.  
You see whether it is in terms of the growth agenda that this Government has around infrastructure regulation—and getting things right there—growth of our opportunities for irrigation growth in telecommunications in the work that Amy Adams is doing in the area of broadband work that the Minister for Primary Industries is doing in an area like aquaculture or work that is going on by David Carter in the area of the growth of our primary industries there is so much going on in the area of this Government’s programme of growing our economy of which this bill is a small part that I could give a speech well beyond the dinner hour— 
Hon Clayton Cosgrove 
: Oh please! We will move an extension of time this is so good. 
Hon Dr NICK SMITH 
: —it is such a comprehensive programme. Mr Cosgrove is interjecting. I invite him to reflect on his period as a Minister and the way in which he left a basket case for this Government. 
Hon Clayton Cosgrove 
: Oh! 
Hon Dr NICK SMITH 
: He interjects and asks how. Well let me tell you how. The very first report that this Government got on coming into office was that we were facing a decade of deficits in which we would see public debt grow out to over 70 percent of GDP. Over the 4 years since this is the ninth bill—the ninth bill—that has been introduced into this Parliament to tidy up the financial services sector. Let me give him a few examples. Take the new Financial Markets Authority. Every member of this House knows in their heart of hearts that we have had to provide far better controls over the finance companies of New Zealand. We have seen— 
Andrew Little 
: When did you call for that when you were in Opposition? 
Hon Dr NICK SMITH 
: I am sorry Mr Little? 
Andrew Little 
: When did you lead the march on Parliament to call for greater regulation of the finance sector? 
Hon Dr NICK SMITH 
: Oh well Mr Little who was the president of the Labour Party when we saw the— 
Hon Clayton Cosgrove 
: I raise a point of order Mr Speaker. Far be it for me to interrupt the robust nature of this member’s speech but this is the Reserve Bank of New Zealand (Covered Bonds) Amendment Bill; it is not about who was president of the Labour Party or years gone by. This is a specific— 
The ASSISTANT SPEAKER (Lindsay Tisch) 
: I thank the member. I have indicated to the member to come back on track.  
Hon Dr NICK SMITH 
: This bill is about improving the regulation of the New Zealand banks. If members opposite do not think that is particularly relevant to the global financial situation I can only recite the words of our Prime Minister today about those guys on “Planet Labour”. They do not live in the real world of what we are facing and the importance for New Zealand of having a growing economy having jobs and building a brighter future for New Zealanders. Part of that work involves providing better regulation of our finance sector and of our banks and providing for this legislation dealing with covered bonds.  
I also want to say that an important part of this Government’s programme is ensuring a greater degree of consistency between regulation of the financial markets in New Zealand and Australia. It has been noted by previous speakers that in 2011 the Government of Australia passed legislation to provide a registered framework for covered bonds in the Australian market. With the degree to which the New Zealand and Australian banking systems are integrated it makes absolute sense for New Zealand to follow in a similar mould.  
Access to affordable finance is absolutely crucial to the growth of the New Zealand economy. You see if banks are able to provide greater security and greater degrees of confidence they are able to secure capital at a lower cost. The benefit to New Zealand business from that is that if we have a growing economy and if businesses are going to invest in new plant new buildings new equipment and new technology then the price they pay for that capital is important. That is where this bill contributes to the Government’s overall growth programme for the New Zealand economy.  
I say again that this is a sound bill. This is a bill that is part of a broader programme that the Minister of Finance has been responsible for in terms of getting our economy on to a substantial footing. I am pleased it enjoys the broad support of the House. It is the sort of legislation this Parliament needs to advance if we are indeed to secure that brighter future for New Zealanders.