Smith Lockwood: Public Finance (State Sector Management) Bill — In Committee 
Smith Lockwood: Public Finance (State Sector Management) Bill — In Committee 
[Volume:622;Page:17931] 
Dr the Hon LOCKWOOD SMITH (National—Rodney) 
: 
 I will also pick up on clause 238 in Part 8 of this Public Finance (State Sector Management) Bill because it has huge implications. As I am aware for the first time the Government is proposing with this legislation that if our State-owned enterprises are to negotiate a collective agreement with their employees they must consult with the State Services Commissioner. 
Just to be on the safe side clause 238(3) states: “The Governor-General may by Order in Council apply subsection (2)”—that is the clause I just read out—“to any State enterprise named in the Second Schedule.” That means the second schedule of the State-Owned Enterprises Act. I am looking now at the second schedule of the State-Owned Enterprises Act because the Committee needs to be reminded of the scope of New Zealand’s activity so to speak that is covered by State-owned enterprises. 
If we look at the second schedule of the State-Owned Enterprises Act we see that we are talking about electricity generating companies and Transpower. Now they are at the heart of New Zealand’s economic success and we are talking about a whole range of them especially those that have a huge impact on New Zealand such as those involved in our energy sector not to mention the forestry sector. Landcorp farming is a large hunk of the agricultural sector. They are significant economic businesses and energy companies and Transpower have a huge impact on New Zealand’s economic success. 
The Government is suggesting here that in those major economic entities in those State-owned enterprises that have that significant impact on our economy the State Services Commissioner will be able to interfere in their employment arrangements. “State Services Commissioner” is just another term for “lackey of the Government” I think it is fair to say; I do not want to be unkind to the current State Services Commissioner but obviously the person in that role does the Government’s bidding. 
It is important for Parliament to consider that the State-Owned Enterprise Act was passed back in the 1980s under the previous Labour Government. It set up those State-owned enterprises for one very good reason: to get such important business activities out of the clutches of politicians and Government. But what is this clause doing in this Public Finance (State Sector Management) Bill? It is bringing that crucially important function about employment arrangements back within the realms of political interference. That is a very backward step. 
The Minister in the chair the Hon Margaret Wilson who I am told is to become the Speaker of the House— 
Simon Power 
: She is Speaker designate. 
Dr the Hon LOCKWOOD SMITH 
: The Speaker designate—OK. The Minister in the chair ought to have a real interest in legislation if she is to become the Speaker of the House. 
Why is the Government moving to bring back those important economic entities under political influence? A large chunk of the energy sector is owned by the Crown under schedule 2 of the State-Owned Enterprises Act. Why is the Government moving to bring back those important economic entities into a situation where the Government can meddle in their employment arrangements? One can only assume that it is because the Government wants to push its agenda and we know from various parts of this bill what that agenda is: the Government wants to force those entities to employ certain people of certain racial backgrounds and it wants to force the entities to address diverse interests in their employment arrangements. 
Those may be things this Labour Government considers important and matters of ethnic origin are important in some areas but when it comes to employment employers should be colour blind. Employers in those vitally important companies like Transpower New Zealand Ltd Mighty River Power Ltd Meridian Energy Ltd Landcorp Farming Ltd should be colour blind. They should be employing people on the basis of their skills and of what they can contribute to the organisation. People should be equal in terms of their employment opportunities in these hugely important economic entities. The Minister in the chair should get to her feet and explain what the Government is seeking to do with section 8(2) inserted by clause 238.