Bayly AndrewANDREW BAYLY (National—Hunua): Oh thank you. It's a pleasure to be talking on this issue. Having been a member the Finance and Expenditure Committee is—as the previous speaker Paul Eagle noted—an august body that spent a lot of time working through the fine elements of this bill. I think it's a great opportunity to be here supporting my colleague the MP for Kaikōura Mr Stuart Smith who I think has done an excellent job—excellent job—working through what is quite a technical bill into a piece of legislation that takes the industry from a very obsolete sort of framework into something that is now of a stage where it is flexible modern and progressive.So it is with some alarm that I see Supplementary Order Paper (SOP) 40 tabled by the honourable member from Epsom and it's not like it's just a one-page SOP. This is a substantial Supplementary Order Paper—David Seymour: Has the member read it?ANDREW BAYLY: I have been reading it and I am staggered that the member who's putting forward this SOP who was actually in many of the discussions has chosen to use this opportunity to present such a comprehensive SOP. I just can't understand the rationale for the member to be wanting to put up an SOP that absolutely puts a dividing line through what is really a very small industry in terms of the number of operators—as we've heard before 13 credit unions in New Zealand. I cannot understand the rationale for it. I cannot understand why a member from ACT would want to propose such an approach of having a two-stage framework.Of course these people represent 190000 people across New Zealand have $1.6 billion in assets and look after good New Zealanders. As the previous speaker noted it's not only the fire brigades they look after; it's a whole range of organisations playing such an important part in all of our communities across New Zealand. That's why I just want to say that I absolutely support this.I think one of the key elements of this bill is in terms of making sure that the first thing is that the incorporation of credit unions could occur. They were locked into this prehistoric sort of framework and what this has done is modernise that and given it a flexibility which I think is a very good move.The second thing is—as the speaker Dr Deborah Russell across the way recently spoke about—the issue of mutuality. We spent some time on that and it's not an easy topic to understand but basically a credit union has to operate in the best interests of all its members and for its members. That's what essentially mutuality is about. What this does is it ensures—even though we're putting through the other changes—that the credit union must still operate on those purposes or those bases. I think retaining that provision is absolutely essential.Not only that but given that modernisation what it also does is it allows credit unions to go and get more sources of capital. There's a whole clause—clause 9B which inserts sections 58A to 58E into the principal Act. What it does is it creates more opportunity and makes it easier for credit unions to go and raise additional funds to meet their minimum capital requirements. As we all know these entities are under the control of the Reserve Bank and it's important that they meet their prudential controls and also make sure that they run an operation that's financially viable.In terms of the area of operations I think there is a slight widening of scope. One of the critical things we heard about was this inability for a credit union to lend directly to a member's business or operation or non-incorporated entity partnership and all that's been opened up provided that member has greater than a 25 percent share. I think that creates a more modern vehicle to make sure that these things are much more relevant today. Also with the accessing of other financial services like ATMs and all that sort of stuff using up-to-date platforms this creates a vehicle for those 190000 people and hopefully more to be able to continue to get finance from reputable institutions across New Zealand.