Guy Nathan: Securities Disclosure and Financial Advisers Amendment Bill — Second Reading 
Guy Nathan: Securities Disclosure and Financial Advisers Amendment Bill — Second Reading 
[Volume:654;Page:3112] 
NATHAN GUY (National—Otaki) 
:  
I wish to make a contribution on the second reading of the Securities Disclosure and Financial Advisers Amendment Bill. This is an important bill; it is the Government getting on with its business. Indeed this bill has two parts and two clauses covering the title and commencement. The important point of this bill is that it will free up capital which will be very important for business and in particular corporate business but it will flow through to small and medium businesses as well. The important thing is to get our economy moving in a forward direction and I guess this bill also covers things like the collapse of financial companies as occurred last year. We have heard other speakers speak about that and about the hardship it has caused right across New Zealand. It has affected all sorts of Kiwis and right now those who are lucky enough to have some money in the bank are concerned about interest rates. Of course that helps young couples as well but I guess it is to the demise of people who may be lucky enough to have some money in the bank. 
The other thing that is really important with this bill is that it will make changes around the way shares are issued. Currently there are a whole lot of double-ups around the information that is provided when shares are offered. This amendment bill aims to reduce the inefficiencies of the reporting processes leading ultimately to less bureaucracy and less time and money spent on reporting. There are some key definitions that I think are worth traversing in this second reading including that around the prospectus which is the financial bill of health. The other important area is the investment statement which allows banks and companies to confer on exactly what the investment statement should include. That is for non-export investors as well. There is also information about disclosure which is the process by which companies and banks give financial information to investors or indeed to the public. 
This is the second reading of an important bill this evening and most speakers across the House have concurred with the current situation in relation to the financial slow-down across most of the world—the credit crunch—and the difficulty a whole lot of people have in accessing capital and accessing debt as well. It is interesting that banks are placing on businesses quite a bit of stress and strain concerning debt levels as the cash flow of some businesses tends to be slowing up. Yet other businesses we speak to when going around the streets as I do in my Otaki electorate say to us “What recession?”. So it is wide and varied across the whole of New Zealand. 
This bill will reduce compliance costs. Investors at all levels will be given information that is easy to understand which is imperative. The bill is part of the Government’s response to the current economic climate in order to help ease the credit crunch we find ourselves in. The amendments also cover businesses listed on the stock market and unlisted businesses as well. The Government supports the second reading of this bill and I commend it to the House.