Bayly AndrewANDREW BAYLY (National—Port Waikato): Yes that was a bit of a rush wasn't it? I was expecting the new member to take the full opportunity to talk about this topic because it is obviously a vitally important thing for the Government and for Minister Shaw who I see in the chair and also for New Zealand to make sure we get this right.I'm sure most people have covered off this issue but it is a case of commercial naivety. This is a case of commercial naivety and I'm surprised given the background of the Minister that we've arrived at this situation because we all know that we have an existing trading scheme—the emissions trading scheme (ETS)—where you can buy units freely. Obviously you have to pay for them but you can freely exchange them over the system by bidding and that's fine. But this is about setting a new primary market for when the Government decides to issue new units into the market and this is the system. What's staggering is the mechanism for pricing this. The primary market is like every other Government bond that is issued into the market. There's no difference. There's no mystique about the trading system being proposed. Mr Shaw I'm sure his advisers no doubt just had to go down to the trading floor and say what happens with Government bonds at the moment? The simple situation is if you are bidding for a Government bond a new issue of Government bonds you as the bidder bid the quantum how many units you want to buy and the price you're prepared to pay. Of course it's a cascade down to the level where the amount of bond is totally extinguished and that is the bottom price. Obviously this is the way that has been proposed for this primary market. Of course we know we've got our first auction on 15 March.Stuart Smith: No 15 March is the commencement date.ANDREW BAYLY: Sorry commencement date but the trading system is going to happen very quickly. That's why we have to have this bill completed by the 4th. So the issue is anyone following any market in the world whether it's Government stock in New Zealand whether it's shares on the New Zealand Stock Exchange whether it's trading oil or any other grain around the world—all the markets operate under certain principles. The thing that strikes me is why the Government—and I understand it went through the Cabinet went right through the Cabinet and no one seemed to pick up on the fact that this system without a floor to it without the person in this case the Government being able to set a minimum floor then you are totally at the vagaries of a market. So it's like offering your house without setting a reserve. So if you get one bid for a dollar and you never set a reserve then hey presto you sell for a dollar. So for a Cabinet to go right through all the processes committees and to get to that stage—they have a sign-off—and then realise subsequently that there was an issue that they may end up being in a situation where the Government issues a whole lot of units and it could be millions of units to find that the strike price which is the term is below the current market. It could in fact be below ETS the secondary trading market right now. I just think it's an indictment actually on commerciality of members of the Government and particularly the Cabinet who allowed this to go through and not one person must have stood there and gone That's not how markets work." So here we are rushing through a piece of legislation under urgency or just about I understand—under a real strict time frame—and we're here to deal with an issue that had been flagged but deemed not sufficiently robust or important enough to be dealt with. So I don't think I need to say any more but here we are. We're wasting Parliament's time and we know the cost of that. This should have been dealt with some time ago."