Tizard Judith: New Zealand Guardian Trust Company Amendment Bill — In Committee Third Reading 
Tizard Judith: New Zealand Guardian Trust Company Amendment Bill — In Committee Third Reading 
[Volume:626;Page:21187] 
Hon JUDITH TIZARD (Labour—Auckland Central) 
: 
 I thank honourable members for their contribution in the Committee stage of this bill. I share the concern that this issue frequently comes back to Parliament. I also share the concern that Mr Catchpole and Mr Franks expressed. We all recognise I think that it is often the more vulnerable investors and beneficiaries who use the trustee companies. Four trustee companies have been established by a private Act: New Zealand Guardian Trust Co. Ltd; Trustees Executors Ltd formerly TOWER; Perpetual Trust Ltd and PGG Trust Ltd trading together; and New Zealand Permanent Trustees Co. Ltd. They have indeed asked for a privilege and it is a privilege that Parliament has given them through the method of private bills. 
I want to read into the record the Commerce Committee’s decision which I think is very thoughtful. It states that although the committee members felt that the proposal to deal with the matter by Order in Council has merit most of them believed that “the ability of a trust company to transact business with its parent company is such a significant departure from the general rule against trustees taking profit from their administration of a trust that approval to allow this should remain in Parliament’s hands. Most of us consider that the preparation and introduction of a private bill to Parliament does not constitute an onerous liability on a company. Further this obligation sends a clear message to trust companies and their parent companies about the paramount importance of their obligations to their beneficiaries and the trust that these beneficiaries place in them.” I am happy to accept the view of the committee. I do not think we can change the laws and provisions relating to four companies in the one private bill before us. 
I noted Mr Catchpole’s comment. It is not that I do not think this issue is a priority but unfortunately the Minister of Justice has meagre resources—because this Government is so frugal with taxpayers’ money—which means that we limit the number of public servants we employ. We note that the Minister of Justice informed the previous Commerce Committee that a review would be undertaken by the Ministry of Justice and completed by mid-2003. At the second reading I expressed my regret that that review had not taken place but I absolutely accept that taxpayers’ money should not necessarily be used to give highest priority to matters that are basically commercial issues for the benefit of commercial companies and not necessarily of the people who are the beneficiaries of the trusts they undertake. 
So I thank the Committee. I particularly thank Mr Franks for the useful comments he has made. I assure the Committee that I am not the owner of this bill. I am merely as the local member of Parliament proposing it on behalf of the New Zealand Guardian Trust Co. I readily accept the collective view of the select committee. After all that is its job and I think that this has been a very good process.