O'Connor GregGREG O'CONNOR (Labour—Ōhāriu): Thank you Mr Speaker. I just would reflect on that previous speaker Lawrence Yule. It's an interesting day to be talking about having some overseas businessmen around for dinner but I'll take his word that there was no donation involved. So if I can get on with the rest of my presentation.As someone who has sat nervously for about three years as a director of a company who required personal guarantees for the investment that they had borrowed for their directors so that they could go to the next step I can fully understand the nervousness of anyone who is borrowing money and who is making a decision to expand. Fortunately for myself and my family that particular period passed and the company did expand and we were fortunate.However the reality of it is that New Zealand is a country where many of those successful businesses that operate today were actually built on the basis of Government investment. We only really need to go to New Zealand's wealthiest man Graeme Hart who made all his money—and Mr Scott will know—from Government Print which he got for a song in the Wairarapa and which he very wisely smartly and through great business acumen has turned that and other businesses he acquired into a worldwide significant fund.But the important point is that New Zealand Print—the organisation that he bought—was something that was built on the basis of taxpayer's money. So it is with those of us who may have shares in power companies and those with shares in the utilities that have been sold off which actually accounts for much of the wealth here and of overseas investors. All those things were built up on the basis of New Zealand taxpayer investment. They got to a certain level and they were then sold on. New Zealanders got the opportunity. Some held on to them. Some moved them on. The reality of it was the base was built by New Zealanders—the base was built by taxpayers.That's what this seeks to do. It's an understanding that New Zealand—all the speakers opposite have talked about it and on this side of the House—is a small market. New Zealand is a small market. Mr McKelvie talked about the fact that there have been problems at various times in New Zealand with companies making that next step. There's that great myth in New Zealand of the batch the BMW and the boat: boat batch and BMW. Now they're the thing that so many New Zealand companies New Zealand start-ups New Zealand people who've done the right thing taken the chance worked hard but get to a certain level and going to that next step is just too hard.The good old Kiwi way—Well I've got my BMW I've got my bach I've got my boat I'll sell the thing on now and move on and enjoy it". But that really underlines what the problem has been in New Zealand that we haven't gone to that next level. The odd company has—Frucor the creator of V down in the territory of South Canterbury. That was a company that grew considerably went to Australia—was successful here went to Australia. V you'll see that brand around the world. But of course it's now owned by Suntory I believe it is the Japanese company. So these are the very companies that—we reach a certain level in New Zealand. Again whether it's the fact that we are isolated in more ways than geographically that when it just gets too big—I do consider from my very early days you might remember the Mr Asia syndicate in New Zealand. It was a syndicate that grew New Zealand out. Hon Grant Robertson: That's not the kind of venture capital we're after Greg. GREG O'CONNOR: It was actually—if I can stand here and contradict my Minister of Finance—true venture capital a true market where a group of New Zealanders not only cornered the heroin market in New Zealand they cornered the heroin market in Australia and they then went on to attempt to corner the heroin market in the United Kingdom. It was only when they fell out in their very traditional criminal way and instead of sorting the issue out in court they sorted the matter out in a much more traditional manner which ended up with one of them the protagonist lying upside down in a quarry in Chorley in northern England minus his hands and his head—perhaps there are those who argue that's a much cleaner way of doing business. But can I just go back—I know it's a long way from the New Zealand Venture Capital Fund Bill which we are discussing today but I think I'd like to build a picture of what we're trying to achieve here. While there are those I would think that perhaps lying upside down in a quarry in Chorley handless and headless [Interruption] some might think it might be a good place for them to end up—no I couldn't possibly say that. But the reality of it can I say that the venture capital—what it does mean is that was purely a market where people did go and they fell apart. Perhaps if there had been better invested along the way things might have been different. But in New Zealand and I go back to what I've talked about before is that necessity to be able to take another step. This Government we've come in we've had to rebuild a lot. We've had to rebase this country. I'm someone who believes before you go to the next step you've actually got to have a pretty good base to build on. What we've found when we've come into Government is we haven't got a good base to build on. I don't want to repeat the things we've found the money we've had to invest in virtually every Government department. Anyone listening anyone in this town will know full well that every Government department—every stone that we have picked up there has been rats running under it and those rats represent an absolute lack of investment lack of funding over years. We've had to fix it and fix it we are. But fixing it as is often pointed out—fixing those things that are the base of New Zealand that make New Zealand the country it is that make New Zealand one of the easiest countries to do business in that is one of the best countries to live in but you can never take that for granted. As it's constantly pointed out someone's got to pay the bills. What this piece of legislation is about is ensuring that we can pay the bills because those who pay the bills those who create the wealth create the wealth built on the basis of what we as a Government are doing—built on the basis of good education built on the basis of good secondary services good education right across the board our polytechs etc. This is so important that for those that come out of that we build on that base but they've got to have jobs. They've got to have the ability to create that wealth when we give them those skills. This is what this bill is meant to do. This isn't a start-up; it isn't a start-up. As someone pointed out to Mr Bayly—Mr Bayly was talking about those parts of start-ups those investments that are the most risky. The most risky are the start-ups; this isn't a start-up. This is actually people who have actually proven they have a track record. These are people who have proved that they can make it.We've talked a bit about Rocket Lab. It's interesting that the Opposition did bring up Rocket Lab. Rocket Lab under the system that was actually in place then were turned down for this very investment that would have meant that now when we do see those rockets taking off from Māhia Peninsula and sit there in pride and know what they're delivering to space—there's still that "Wouldn't it be nice if that was truly a company that was fully owned by New Zealanders?". That actually it was a true New Zealand company that New Zealanders had the opportunity to invest in. Let's just make sure—but there's no point lamenting that. What this is about is making sure that when the next Rocket Lab does come along there is the opportunity and yes there is some risk involved; of course there is going to be risk involved. However the risk is mitigated somewhat by the fact that those who are going to be accessing this fund will have a track record and will have an idea that has been shown to work. It's that $2 million to $20 million—that area as say if you're bigger than that you will be able to attract those overseas financers; you will be able to attract that overseas capital. But there's that middle ground of probably too small to be a risk for the big venture capitalists from overseas probably too big for the local mum and dad investors in New Zealand. So this fills a gap. But what it really is is it just shows that this Government is addressing issues right across the board from fixing up the infrastructure that we've found—and under our leader under the Hon Jacinda Ardern this country will end up in much better shape across the board. I commend this to the House."