Watts SimonSIMON WATTS (National—North Shore): Thank you very much Madam Chair. Just a short call from me on this one as I think we've traversed quite a lot. I'd like to reflect back on the Hon Eugenie Sage's Supplementary Order Paper that the Minister has noted they are going to support and it's quite interesting where in effect against the recommendations of the Attorney-General we're going to now imply this new trigger point which is our moral obligation"! Who cares what everyone else thinks; we're just going to come up with a new position! No major party in this House has ever indicated an interest in privatisation. This is political spin by both the Greens and Labour to try and rark up a story that doesn't exist. That is a real disappointment but that is what is going on here—and against the advice of other players. They know it's not a practical mechanism—that even in an eventuality which would never occur this would be effective. It is cynical political spin.The clause I want to talk about is in regards to clause 128(2)—a little addition that was made and you have to go right to the end of the bill to find this—"The head office of a water services entity must be located within its service area." Interesting. Interesting little clause that one. I cast my mind back and I was remembering in the select committee deliberations as we were talking about a whole lot of issues of substance this little one just slipped through the gaps. I'm wondering what was going on there. What was happening? What was the thinking? I'm looking at my colleague across the way there from the beautiful Hawke's Bay. So my question Minister is as follows: I'm particularly interested around—and we go to Schedule 2; I know that's part of a different part but I'm using that for clarity and contrast just to ask this question—the Eastern-Central Water Services Entity in Part 3. So we've got mighty councils in there like Hastings District Council and Napier City Council—I could go on and on but I think we all know who they are. And then we've got other councils which are equally deserving: Wellington City Council and Porirua City Council and Palmerston North City Council. The clause 128(2): "The head office of a water services entity must be located within its area."So my question Minister is quite simple: what advice if any have you had from your officials or officials in the Department of Internal Affairs around where they believe the head office should be located for Entity C? Is it the Hawke's Bay or is it Wellington or is it somewhere else? I'm interested to know if you've had any advice in regards to that. I mean I would expect so because we're advertising for the CEO roles for these entities which are noted in clauses as part of this part. So the conversation really has to be: so where are these head offices and what constitutes a head office? Because we know—and my good colleague Andrew Bayly—what constitutes a head office in a tax sense of course. Is it a centre of management or is it where the majority of staff are or is it where the decision-making is made?The point I'm making here is that it's pretty challenging to see how a head office could be located in any other location in Entity C that is not Wellington because the reality is with the co-location of Government services and entities and all of that the decision making is happening in Wellington. So on that basis I'm interested in a little bit of context on that. And while the Minister is on it it would be good to get a little bit of advice around where the head office is going to be—where it's going to be in the South Island as well. And I'm appreciating Madam Chair I'm not sure about protocol—Andrew Bayly: Madam Chair?SIMON WATTS: I'm not sure about protocol in the House but I'm still talking—CHAIRPERSON (Barbara Kuriger): Mr Bayly Mr Watts hasn't finished yet.SIMON WATTS: Yeah thank you very much. Crikey! Sorry Minister—oh a new Minister—crikey. You close your eyes and you open them again and we've had a change! So let's have a little bit of context around that point and that's all I'm going to say on that."