McClay Todd; Clark DavidHon TODD McCLAY (National—Rotorua): Thank you Mr Chair. Minister Clark the final Supplementary Order Paper (SOP) of the three that I've put in there is around when these obligations will be placed upon the businesses covered by the scope of the legislation. As I understand as it's currently written it will be 12 months after Royal assent—so entering into force. However the External Reporting Board (XRB) although the Minister has said they're currently consulting they haven't set the standards yet and there isn't a requirement in the legislation as to when they might do that. Look I think the XRB will take its responsibility seriously but I am concerned that there won't be enough time for companies to take their responsibility seriously and meet these requirements. So this isn't about not having to meet the requirements; it's about a fair period of time. What I've suggested is a—CHAIRPERSON (Adrian Rurawhe): Is that in the commencement clause?Hon TODD McCLAY: So there are two parts. I think it's in Part 1 and Part 1A is my understanding.CHAIRPERSON (Adrian Rurawhe): OK.Hon TODD McCLAY: Part 1 amends a date and then Part 1A also does but maybe the Clerk can clarify that for me. I understood that—[Chairperson seeks advice]CHAIRPERSON (Adrian Rurawhe): Yeah you can actually have that debate under clause 2 but I'm happy that you've mentioned it in passing. It is a little bit irrelevant.Hon TODD McCLAY: Yeah so well I'm at your guidance Mr Chair but with the exception of 1A my colleagues finding it erroneous we probably won't debate much longer since we're supporting. But in this respect the suggestion is that actually the dates be changed so from when the XRB brings forward the reporting requirements companies have two years to be able to meet those requirements. Look it's actually not about an extended period of time because these companies will take it seriously; in many respects they're probably already considering this. It is good that the XRB is talking to them but ultimately for some of these very large businesses particularly when one considers they do have investments around the world it could be quite some amount of work and we don't want undue pressure to come on them or unreasonable cost because whether they meet it in the first year or two years afterwards actually means the same to the climate. The reason for that is this legislation doesn't make them alter anything they're doing in meeting lower levels of climate emissions or anything else.So I'll have one more question after this but to the Minister the SOP suggests allowing more time—not unreasonably I think—for the entities covered by the scope of this legislation to meet the requirement once the XRB publishes the standards.Hon Dr DAVID CLARK (Minister of Commerce and Consumer Affairs): This is a new point the member's raised. In addition to climate standards the XRB intends to issue an adoption standard which lays out a pathway for climate reporting entities to adopt some of the more challenging disclosure requirements. Adoption standards offer various provisions to entities when a new standard or new requirements are to be applied for the first time and can include practical expedience phased adoption or relief from providing comparative information. It's a recognition that for those who are doing it the first time a more pragmatic approach will be taken.