Gallagher Martin: Financial Service Providers (Registration and Dispute Resolution) Bill — First Reading 
Gallagher Martin: Financial Service Providers (Registration and Dispute Resolution) Bill — First Reading 
[Volume:644;Page:14007] 
MARTIN GALLAGHER (Labour—Hamilton West) 
: 
 I rise to support the Financial Service Providers (Registration and Dispute Resolution) Bill and to say that this bill has in common with the Real Estate Agents Bill that one of its purposes is to try to protect small investors. I was not in the Chamber at the time but I certainly hope that the Opposition supported the first reading of the Real Estate Agents Bill. [ 
Interruption 
] I hope that it did support that very important bill. Dr Cullen says— 
Simon Power 
: Why when the whole industry has been vilified? 
MARTIN GALLAGHER 
: To be honest I am staggered and surprised to learn that it did not. The issue addressed in that bill relates to this bill in the sense that the Hon Clayton Cosgrove who is a very very good Minister wants to protect the consumer—the ordinary person—who wants to get a fair shake and that is also the case with regard to this bill. Frankly yes I will concede that the Hon Clayton Cosgrove’s style can be robust but it is a robustness on behalf of the ordinary little people in this country who want to have a fair shake and he is to be strongly commended for that.  
We talked before in relation to other legislation previously in front of the House in terms of the buy-out of minority shareholders about having an environment that protects small investors whether they are investing in their own home or a rental property or are lending their hard-earned money to financial providers. I acknowledge that Simon Power certainly illustrated the huge impact on our economy of the collapse of various finance companies and how mum and dad shareholders and particularly older investors have been swept up in that. Any legislation be it the Real Estate Agents Bill—which seems to me to be a pretty good bill and I am shocked and staggered to have to absorb the information that the Opposition did not support its first reading—or any other bill that helps to protect the small investor is to be commended.  
The Financial Service Providers (Registration and Dispute Resolution) Bill contributes to the aim of our Government’s major reform programme of promoting confidence and participation in the financial markets by investors and institutions no matter how big or how small they may be. The Government also wants to promote a sound and efficient non-banking financial sector which again is very important in terms of international investment in our economy. I note that the bill sets up a registration system for financial service providers and establishes an industry-based dispute resolution system to improve consumer access to redress in the financial sector.  
I will not take too long a call— 
Hon Dr Michael Cullen 
: Oh go for it; there’s no rush. 
MARTIN GALLAGHER 
: There we go the Minister is encouraging me to take a longer call but I will not take very long except to say that I note the bill will set up a registration system for financial service providers that will identify all entities providing financial services in the New Zealand market. As well it establishes a comprehensive industry-based dispute resolution system.  
The registration system set up by this bill will assist the relevant regulatory authorities to monitor and enforce the law and enable sectoral data to be collected. That is a good thing. The register will provide easy access to information about financial service providers to investors and institutions who seek to utilise them and that is another good thing. At present it can be very costly for investors to seek information on the products provided by the various financial service providers. This bill will allow investors to be well informed in their investment decisions. It does not matter whether one is a large investor or a small investor; that is obviously a very very important thing.  
The dispute resolution system will improve customer access to redress in the financial sector. I notice also that the dispute resolution in this bill will be industry-based providing an effective alternative to court action. That is a positive thing. Indeed the involvement of industry participants in the operation of the dispute resolution body encourages the adoption of customer service - oriented attitudes. Reflecting on previous speakers I think it has been extremely sobering to read in the media of the collapse of various finance institutions and the terrible devastating impact that has had on life savings.  
I hope obviously there will be a wide cross-section of submissions to the Finance and Expenditure Committee on this bill. I commend the chair of that committee Mr Charles Chauvel. I think he is making a very very good contribution. He is certainly a very hard-working member of our team. As I said before I see this particular bill very much in the context of other legislation that has been introduced over the last day or two including the Real Estate Agents Bill. I have to say I am still trying to come to terms with the fact that the Opposition for reasons totally lost to me is not supporting that particular bill.  
I commend the first reading of this bill. Thank you.