Paraone Pita: Insolvency Law Reform Bill — Second Reading 
Paraone Pita: Insolvency Law Reform Bill — Second Reading 
[Volume:633;Page:5181] 
PITA PARAONE (NZ First) 
: 
 Tena koe Mr Deputy Speaker. I stand on behalf of New Zealand First to take a call on the second reading of the Insolvency Law Reform Bill. I say from the outset that New Zealand First supports this reform bill. The introduction of voluntary administration brings New Zealand into line with Australia the United Kingdom Asia and Europe. We believe that it is in New Zealand’s interests to adopt a statutory procedure capable of delivering increased returns to creditors from corporate failure. The introduction of similar legislation in Australia saw the immediate take-up of voluntary administration. It is now the dominant proceeding over liquidations and receiverships. 
New Zealand First is aware of concerns that the Inland Revenue Department retains its preferential creditor status. If the House gives this issue a bit of thought rather than react as some parties have done members will see that there can be no other fair way to go. If other creditors are given precedence over the Inland Revenue Department then all New Zealanders suffer from the reduction in funds available for services provided by the Government. 
New Zealand First is a party that has always wished to protect the New Zealand tax base. We are a party that advocates positive Government intervention on behalf of businesses and exporters. We are pleased to note that after examination of this bill the Commerce Committee recommended that it be passed but with some amendments. As a party New Zealand First campaigned for excellent public health and education. Those things can be provided only by taxation and the protection of the tax base is in the interest of all New Zealanders. Therefore we believe that it would be unwise to remove the Inland Revenue Department’s preferential creditor status in the bill. 
New Zealand First continues to support this bill particularly with the amendments recommended by the select committee. We note there is a continued and marked increase in the number of bankruptcies of those we shall call private people—not through a case of their going broke through enterprises they had started up or through a turn for the worse in circumstances their businesses large or small had been involved in but just through sheer consumerism. They had gone out and spent. Unfortunately that is something that has become symptomatic for many people here in New Zealand. 
The bill is important because it brings into line consistency with other legislation particularly in the area of the Personal Property Securities Act 1999. It is intended that this bill should be consistent with that particular Act. A number of submitters in the select committee process we understand raised some of the differences in terminology between the bill and that Act. The other Act this bill is providing some consistency with is the Companies Act 1993 and I note that the select committee recommended there should be some changes in order to bring the bill into line with the Companies Act. Another Act that this reform bill will align is the Lawyers and Conveyancers Act 2006. 
In conclusion I say that New Zealand First supports this bill in its second reading notwithstanding some of the comments made by those who intend to oppose it. Kia ora.