Friendly Societies and Credit Unions (Regulatory Improvements) Amendment Bill – Second Reading – V..

members So it is with great pleasure members

So it is with great pleasure members So it is with great pleasure I commend the members So it is with great pleasure I commend the pleasure I commend the bill to the House pleasure I commend the bill to the House The pleasure I commend the bill to the House

The question pleasure I commend the bill to the House The question is pleasure I commend the bill to the House The question is that pleasure I commend the bill to the House The question is that House The question is that the motion House

The question is that the motion be House The question is that the motion be agreed to House The question is that the motion be agreed to I House

The question is that the motion be agreed to I call Clare motion be agreed to I call Clare Curran motion be agreed to I call Clare Curran

First of motion be agreed to I call Clare Curran First of motion be agreed to I call Clare Curran First of all I would motion be agreed to

I call Clare Curran First of all I would motion be agreed to I call Clare Curran First of all I would like to Curran First of all I would like to acknowledge Curran

First of all I would like to acknowledge and Curran First of all I would like to acknowledge and Curran First of all I would like to acknowledge and commemorate the acknowledge and commemorate the acknowledge and commemorate the acknowledge and commemorate the member Stuart Smith for acknowledge and commemorate the member Stuart Smith for acknowledge and commemorate the member Stuart Smith for having a acknowledge and commemorate the member Stuart Smith for having a acknowledge and commemorate the bill progress through the House bill progress through the House That bill progress through the House

That is a bill progress through the House That is a big bill progress through the House That is a big deal And bill progress through the House That is a big deal

And bill progress through the House That is a big deal And also to bill progress through the House That is a big deal And also to the That is a big deal

And also to the Finance and Expenditure Committee That is a big deal And also to the Finance and Expenditure Committee Finance and Expenditure Committee for the Finance and Expenditure Committee for the work Finance and Expenditure Committee for the work that Finance and Expenditure Committee for the work that Finance and Expenditure Committee for the work that it has done Finance and Expenditure Committee for the work that it has done Finance and Expenditure Committee for the work that it has done to for the work that it has done to make it for the work that it has done to make it for the work that it has done to make it a better for the work that it has done to make it a better for the work that it has done to make it a better piece of for the work that it has done to make it a better piece of make it a better piece of legislation make it a better piece of legislation and make it a better piece of legislation and for the make it a better piece of legislation and for the legislation and for the cooperative, collaborative legislation and for the cooperative, collaborative legislation and for the cooperative, collaborative approach which has legislation and for the cooperative, collaborative approach which has collaborative approach which has occurred collaborative approach which has occurred which is a demonstration collaborative approach which has occurred which is a demonstration of occurred which is a demonstration of how well parliament can occurred which is a demonstration of how well parliament can occurred which is a demonstration of how well parliament can work I'm occurred which is a demonstration of how well parliament can work I'm how well parliament can work I'm very pleased how well parliament can work

I'm very pleased to how well parliament can work I'm very pleased to be how well parliament can work I'm very pleased to be how well parliament can work I'm very pleased to be able to stand how well parliament can work I'm very pleased to be able to stand how well parliament can work

I'm very pleased to be able to stand in very pleased to be able to stand in support very pleased to be able to stand in support very pleased to be able to stand in support of very pleased to be able to stand in support of Stuart Smith's member's support of Stuart Smith's member's support of Stuart Smith's member's support of Stuart Smith's member's bill Credit support of Stuart Smith's member's bill Credit unions support of Stuart Smith's member's bill Credit unions support of Stuart Smith's member's bill Credit unions operate on support of Stuart Smith's member's bill

Credit unions operate on support of Stuart Smith's member's mutuality principles They are support of Stuart Smith's member's mutuality principles They are mutuality principles They are an essential part of New mutuality principles They are an essential part of New mutuality principles

They are an essential part of New Zealand's essential part of New Zealand's market essential part of New Zealand's market market for banking services, particularly market for banking services, particularly market for banking services, particularly for people market for banking services, particularly for people market for banking services, particularly for people on particularly for people on low incomes particularly for people on low incomes particularly for people on low incomes and beneficiaries who can particularly for people on low incomes and beneficiaries who can incomes and beneficiaries who can find it incomes and beneficiaries who can find it incomes and beneficiaries who can find it difficult to incomes and beneficiaries who can find it difficult to incomes and beneficiaries who can find it difficult to obtain find it difficult to obtain banking services through find it difficult to obtain banking services through find it difficult to obtain banking services through banks find it difficult to obtain banking services through banks Credit services through banks Credit unions have changed services through banks Credit unions have changed services through banks

Credit unions have changed hugely over the services through banks Credit unions have changed hugely over the unions have changed hugely over the past 35 years The unions have changed hugely over the past 35 years The unions have changed hugely over the past 35 years The value unions have changed hugely over the past 35 years

The value of unions have changed hugely over the past 35 years The value of the past 35 years The value of the assets under credit past 35 years The value of the assets under credit past 35 years The value of the assets under credit unions' assets under credit unions' controls has quadrupled in real assets under credit unions' controls has quadrupled in real assets under credit unions' controls has quadrupled in real terms to assets under credit unions' controls has quadrupled in real terms to has quadrupled in real terms to more has quadrupled in real terms to more has quadrupled in real terms to more unions have fallen by a lot

In 1992 credit unions have fallen by a lot In 1992 credit unions unions have fallen by a lot In 1992 credit unions unions have fallen by a lot In 1992 credit unions control assets of unions have fallen by a lot In 1992 credit unions control assets of credit unions control assets of less than 1 million credit unions control assets of less than 1 million credit unions control assets of less than 1 million on average in credit unions control assets of less than 1 million on average in today's than 1 million on average in today's many

Now than 1 million on average in today's many Now than 1 million on average in today's many Now the than 1 million on average in today's many Now the afternoon than 1 million on average in today's many Now the afternoon is than 1 million on average in today's many

Now the afternoon is million There has been much registry million There has been much registry change over million There has been much registry change over million There has been much registry change over that time, million

There has been much registry change over that time, registry change over that time, prudential registry change over that time, prudential supervision registry change over that time, prudential supervision prudential supervision and investor protection prudential supervision and investor protection prudential supervision and investor prudential supervision and investor have both op strengthened considerably have both op strengthened considerably have both op strengthened considerably However, considerably However, the governance considerably

However, the governance framework considerably However, the governance framework contained considerably However, the governance framework contained governance framework contained in the friendly governance framework contained in the friendly societies the friendly societies and credit unions act the friendly societies and credit unions act has the friendly societies and credit unions act has not kept up the friendly societies and credit unions act has not kept up unions act has not kept up with the way that unions act has not kept up with the way that credit unions act has not kept up with the way that credit unions have changed way that credit unions have changed Although way that credit unions have changed

Although the way that credit unions have changed Although the way that credit unions have changed Although the core concepts way that credit unions have changed Although the core concepts Although the core concepts of mutuality and common Although the core concepts of mutuality and common Although the core concepts of mutuality and common bond continue mutuality and common bond continue mutuality and common bond continue mutuality and common bond continue to remain as relevant as mutuality and common bond continue to remain as relevant as to remain as relevant as they ever were, to remain as relevant as they ever were, to remain as relevant as they ever were, it is to remain as relevant as they ever were, it is to remain as relevant as they ever were, it is clear that other parts to remain as relevant as they ever were, it is clear that other parts were, it is clear that other parts of the act, were, it is clear that other parts of the act, were, it is clear that other parts of the act, as it applies were, it is clear that other parts of the act, as it applies to were, it is clear that other parts of the act, as it applies to credit of the act, as it applies to credit unions of the act, as it applies to credit unions and associations of the act, as it applies to credit unions and associations of the act, as it applies to credit unions and associations of unions and associations of credit unions are out of unions and associations of credit unions are out of date unions and associations of credit unions are out of date

This unions and associations of credit unions are out of date This unions and associations of credit unions are out of date This bill unions are out of date This bill will make three unions are out of date This bill will make three unions are out of date

This bill will make three important sets of will make three important sets of changes will make three important sets of changes to the act will make three important sets of changes to the act will make three important sets of changes to the act First unions will become bodies corporate with unions will become bodies corporate with perpetual succession with perpetual succession

Incorporation with perpetual succession Incorporation will reduce with perpetual succession Incorporation will reduce with perpetual succession Incorporation will reduce the Incorporation will reduce the cost of operating credit Incorporation will reduce the cost of operating credit Incorporation will reduce the cost of operating credit unions because Incorporation will reduce the cost of operating credit unions because of operating credit unions because they will no longer of operating credit unions because they will no longer of operating credit unions because they will no longer need of operating credit unions because they will no longer need to have of operating credit unions because they will no longer need to have they will no longer need to have internal trustees in they will no longer need to have internal trustees in they will no longer need to have internal trustees in whom the credit they will no longer need to have internal trustees in whom the credit internal trustees in whom the credit unions property vests, instead, unions property vests, instead, unions property vests, instead, unions property vests, instead, credit unions unions property vests, instead, credit unions will have the unions property vests, instead, credit unions will have the credit unions will have the capacity and credit unions will have the capacity and credit unions will have the capacity and powers to credit unions will have the capacity and powers to undertake credit unions will have the capacity and powers to undertake credit unions will have the capacity and powers to undertake activities and powers to undertake activities and enter into and powers to undertake activities and enter into transactions and powers to undertake activities and enter into transactions in and powers to undertake activities and enter into transactions in and enter into transactions in much the same and enter into transactions in much the same and enter into transactions in much the same ways as other entities and enter into transactions in much the same ways as other entities the same ways as other entities that are the same ways as other entities that are the same ways as other entities that are legal persons The the same ways as other entities that are legal persons

The the same ways as other entities that are legal persons The Finance and the same ways as other entities that are legal persons The Finance and are legal persons The Finance and Expenditure Committee has made are legal persons The Finance and Expenditure Committee has made Expenditure Committee has made important modifications Expenditure Committee has made important modifications Expenditure Committee has made important modifications to important modifications to the capacity important modifications to the capacity important modifications to the capacity and power provisions

important modifications to the capacity and power provisions Those capacity and power provisions Those changes capacity and power provisions Those changes will capacity and power provisions Those changes will remove any doubts capacity and power provisions

Those changes will remove any doubts changes will remove any doubts that credit unions changes will remove any doubts that credit unions changes will remove any doubts that credit unions must changes will remove any doubts that credit unions must act in changes will remove any doubts that credit unions must act in credit unions must act in accordance with their credit unions must act in accordance with their objects credit unions must act in accordance with their objects Giving with their objects Giving credit unions legal with their objects Giving credit unions legal with their objects

Giving credit unions legal personality with their objects Giving credit unions legal personality will also unions legal personality will also unions legal personality will also unions legal personality will also better protect the unions legal personality will also better protect the better protect the interests of third better protect the interests of third better protect the interests of third parties better protect the interests of third parties that deal with better protect the interests of third parties that deal with third parties that deal with credit unions in good faith third parties that deal with credit unions in good faith third parties that deal with credit unions in good faith In third parties that deal with credit unions in good faith

In addition, third parties that deal with credit unions in good faith In addition, unions in good faith In addition, incorporation will unions in good faith In addition, incorporation will unions in good faith In addition, incorporation will have incorporation will have certainty and accountability incorporation will have certainty and accountability incorporation will have certainty and accountability benefits because incorporation will have certainty and accountability benefits because and accountability benefits because it will be and accountability benefits because it will be and accountability benefits because it will be clear that and accountability benefits because it will be clear that the it will be clear that the responsibility for all aspects it will be clear that the responsibility for all aspects responsibility for all aspects of a credit responsibility for all aspects of a credit responsibility for all aspects of a credit union's strategy, responsibility for all aspects of a credit union's strategy, responsibility for all aspects of a credit union's strategy, governance credit union's strategy, governance and oversight, will rest with credit union's strategy, governance and oversight, will rest with and oversight, will rest with the board

The and oversight, will rest with the board The and oversight, will rest with the board The second important and oversight, will rest with the board The second important board The second important change will board

The second important change will board The second important change will be to permit credit board The second important change will be to permit credit will be to permit credit unions to make will be to permit credit unions to make will be to permit credit unions to make loans direct will be to permit credit unions to make loans direct will be to permit credit unions to make loans direct to will be to permit credit unions to make loans direct to businesses make loans direct to businesses that are make loans direct to businesses that are make loans direct to businesses that are owned make loans direct to businesses that are owned or substantially make loans direct to businesses that are owned or substantially are owned or substantially owned by their members are owned or substantially owned by their members This are owned or substantially owned by their members

This their members This change will reduce their members This change will reduce their members This change will reduce compliance costs their members This change will reduce compliance costs their members

This change will reduce compliance costs because it their members This change will reduce compliance costs because it reduce compliance costs because it will reduce compliance costs because it will be reduce compliance costs because it will be reduce compliance costs because it will be no longer necessary reduce compliance costs because it will be no longer necessary will be no longer necessary for the credit union to will be no longer necessary for the credit union to will be no longer necessary for the credit union to make the loan will be no longer necessary for the credit union to make the loan credit union to make the loan to the member credit union to make the loan to the member with credit union to make the loan to the member with the member then member with the member then member with the member then member with the member then onlending to the business member with the member then onlending to the business The onlending to the business The enterprise onlending to the business

The enterprise lending onlending to the business The enterprise lending provisions onlending to the business The enterprise lending provisions enterprise lending provisions will also provide enterprise lending provisions will also provide enterprise lending provisions will also provide credit enterprise lending provisions will also provide credit unions with enterprise lending provisions will also provide credit unions with also provide credit unions with the onlending also provide credit unions with the opportunity to grow also provide credit unions with the opportunity to grow A also provide credit unions with the opportunity to grow

A opportunity to grow A number of credit unions opportunity to grow A number of credit unions opportunity to grow A number of credit unions made this opportunity to grow A number of credit unions made this credit unions made this point in their written and credit unions made this point in their written and their written and oral submissions on the bill

their written and oral submissions on the bill their written and oral submissions on the bill The final their written and oral submissions on the bill The final on the bill The final set of changes was on the bill

The final set of changes was on the bill The final set of changes was to provisions in on the bill The final set of changes was to provisions in changes was to provisions in the act that changes was to provisions in the act that changes was to provisions in the act that relates changes was to provisions in the act that relates to changes was to provisions in the act that relates to the changes was to provisions in the act that relates to the that relates to the registration of an that relates to the registration of an that relates to the registration of an Association of that relates to the registration of an Association of that relates to the registration of an Association of credit that relates to the registration of an Association of credit unions that relates to the registration of an Association of credit unions and an Association of credit unions and describes an association's an Association of credit unions and describes an association's an Association of credit unions and describes an association's objects, describes an association's objects, like credit describes an association's objects, like credit like credit unions associations of credit like credit unions associations of credit like credit unions associations of credit unions will like credit unions associations of credit unions will like credit unions associations of credit unions will become bodies credit unions will become bodies corporate credit unions will become bodies corporate This credit unions will become bodies corporate

This corporate This will provide associations corporate This will provide associations corporate This will provide associations with corporate This will provide associations with the same associations with the same governance associations with the same governance benefits associations with the same governance benefits protections

So the bill also provides protections So the bill also provides welcome clarity about protections So the bill also provides welcome clarity about provides welcome clarity about the change provides welcome clarity about the change provides welcome clarity about the change of services that associations provides welcome clarity about the change of services that associations provides welcome clarity about the can provide and who provides welcome clarity about the can provide and who they can provide and who they can provide them can provide and who they can provide them to can provide and who they can provide them to can provide and who they can provide them to

Changes can provide and who they can provide them to Changes contained in the them to Changes contained in the them to Changes contained in the them to Changes contained in the bill make it clear them to

Changes contained in the bill make it clear them to Changes contained in the bill make it clear that them to Changes contained in the bill make it clear that other them to Changes contained in the bill make it clear that other than them to Changes contained in the bill make it clear that other than bill make it clear that other than providing bill make it clear that other than providing services bill make it clear that other than providing services to providing services to members, associations providing services to members, associations providing services to members, associations can associations can also provide services associations can also provide services associations can also provide associations can also provide authorised to do so by its rules

There authorised to do so by its rules There had authorised to do so by its rules There had authorised to do so by its rules There had been authorised to do so by its rules There had been a dispute authorised to do so by its rules

There had been a dispute authorised to do so by its rules There had been a dispute about this authorised to do so by its rules There had been a dispute about this There had been a dispute about this There had been a dispute about this bill was introduced in April last year bill was introduced in April last year The bill was introduced in April last year

The bill was introduced in April last year The dispute bill was introduced in April last year The dispute was year The dispute was resolved by the High year The dispute was resolved by the High year

The dispute was resolved by the High Court year The dispute was resolved by the High Court in year The dispute was resolved by the High Court in year The dispute was resolved by the High Court in November year The dispute was resolved by the High Court in November 2017 year

The dispute was resolved by the High Court in November 2017 the High Court in November 2017 in Osborne the High Court in November 2017 in Osborne the High Court in November 2017 in Osborne V the High Court in November 2017 in Osborne V first the High Court in November 2017 in Osborne V first credit union the High Court in November 2017 in Osborne V first credit union It Osborne V first credit union It stated Osborne V first credit union It stated Osborne V first credit union

It stated it has another Osborne V first credit union It stated it has another Osborne V first credit union It stated it has another action to take Osborne V first credit union It stated it has another action to take stated it has another action to take another action in stated it has another action to take another action in another action in pursuant to its ones provided another action in pursuant to its ones provided another action in pursuant to its ones provided the action another action in pursuant to its ones provided the action another action in pursuant to its ones provided the action is ones provided the action is authorised by ANAZU's rules or ones provided the action is authorised by ANAZU's rules or authorised by ANAZU's rules or the act The changes authorised by ANAZU's rules or the act

The changes authorised by ANAZU's rules or the act The changes contained in authorised by ANAZU's rules or the act The changes contained in the act The changes contained in the bill are act The changes contained in the bill are consistent bill are consistent with the approach bill are consistent with the approach bill are consistent with the approach outlined by bill are consistent with the approach outlined by bill are consistent with the approach outlined by the High Court

approach outlined by the High Court I approach outlined by the High Court I acknowledge that approach outlined by the High Court I acknowledge that approach outlined by the High Court I acknowledge that some credit I acknowledge that some credit I acknowledge that some credit I acknowledge that some credit unions oppose the I acknowledge that some credit unions oppose the I acknowledge that some credit unions oppose the bill in part I acknowledge that some credit unions oppose the bill in part unions oppose the bill in part or in whole

unions oppose the bill in part or in whole There unions oppose the bill in part or in whole There were unions oppose the bill in part or in whole There were unions oppose the bill in part or in whole There were concerns in unions oppose the bill in part or in whole

There were concerns in whole There were concerns in particular whole There were concerns in particular about particular about whether incorporation particular about whether incorporation particular about whether incorporation would particular about whether incorporation would compromise particular about whether incorporation would compromise or incorporation would compromise or under mine incorporation would compromise or under mine mutuality, incorporation would compromise or under mine mutuality, which is incorporation would compromise or under mine mutuality, which is incorporation would compromise or under mine mutuality, which is a incorporation would compromise or defining feature of credit incorporation would compromise or defining feature of credit defining feature of credit unions Several supporters of defining feature of credit unions Several supporters of defining feature of credit unions

Several supporters of the bill defining feature of credit unions Several supporters of the bill Several supporters of the bill stated there Several supporters of the bill stated there Several supporters of the bill stated there is no incompatibility stated there is no incompatibility If stated there is no incompatibility If there were any stated there is no incompatibility

If there were any doubts If there were any doubts about this, as If there were any doubts about this, as If there were any doubts about this, as a matter If there were any doubts about this, as a matter If there were any doubts about this, as a matter of law, then the If there were any doubts about this, as a matter of law, then the as a matter of law, then the select committee has removed as a matter of law, then the select committee has removed as a matter of law, then the select committee has removed them as a matter of law, then the select committee has removed them by as a matter of law, then the select committee has removed them by committee has removed them by adding a subsection committee has removed them by adding a subsection committee has removed them by adding a subsection to committee has removed them by adding a subsection to section a subsection to section 101 of the act, a subsection to section 101 of the act, a subsection to section 101 of the act, which states a subsection to section 101 of the act, which states act, which states that a credit union act, which states that a credit union must act, which states that a credit union must operate for act, which states that a credit union must operate for act, which states that a credit union must operate for the union must operate for the mutual benefit and union must operate for the mutual benefit and union must operate for the mutual benefit and assistance of union must operate for the mutual benefit and assistance of its benefit and assistance of its members To benefit and assistance of its members To benefit and assistance of its members To summarise, the benefit and assistance of its members To summarise, the bill, members

To summarise, the bill, as reported members To summarise, the bill, as reported members To summarise, the bill, as reported back by the members To summarise, the bill, as reported back by the reported back by the Finance and Expenditure Committee, reported back by the Finance and Expenditure Committee, retains Expenditure Committee, retains all of Expenditure Committee, retains all of Expenditure Committee, retains all of the main reforms Expenditure Committee, retains all of the main reforms Expenditure Committee, retains all of the main reforms proposed in Expenditure Committee, retains all of the main reforms proposed in Expenditure Committee, retains all of the main reforms proposed in the Expenditure Committee, retains all bill as introduced Expenditure Committee, retains all bill as introduced

So Expenditure Committee, retains all bill as introduced So well Expenditure Committee, retains all bill as introduced So well done bill as introduced So well done Stuart Smith The bill as introduced

So well done Stuart Smith The bill as introduced So well done Stuart Smith The committee Stuart Smith The committee has made a number Stuart Smith

The committee has made a number Stuart Smith The committee has made a number of important Stuart Smith The committee has made a number of important a number of important changes that have a number of important changes that have a number of important changes that have improved the a number of important changes that have improved the quality, have improved the quality, clarity and accessibility of the have improved the quality, clarity and accessibility of the have improved the quality, clarity and accessibility of the bill My have improved the quality, clarity and accessibility of the bill My and accessibility of the bill

My overall and accessibility of the bill My overall view is that this and accessibility of the bill My overall view is that this overall view is that this is good legislation overall view is that this is good legislation The overall view is that this is good legislation

The changes legislation The changes will legislation The changes legislation The changes will benefit credit unions and legislation The changes will benefit credit unions and benefit credit unions and their members benefit credit unions and their members benefit credit unions and their members and provide benefit credit unions and their members and provide members and provide new opportunities for members and provide new opportunities for members and provide new opportunities for credit unions members and provide new opportunities for credit unions to opportunities for credit unions to compete opportunities for credit unions to compete opportunities for credit unions to compete against other opportunities for credit unions to compete against other compete against other banking service providers

I compete against other banking service providers I compete against other banking service providers I would compete against other banking service providers I would like compete against other banking service providers I would like compete against other banking service providers

I would like to compete against other banking thank the Finance and Expenditure thank the Finance and Expenditure thank the Finance and Expenditure thank the Finance and Expenditure select committee for its pork thank the Finance and Expenditure select committee for its pork select committee for its pork on the bill select committee for its pork on the bill I select committee for its pork on the bill I call select committee for its pork on the bill I call the select committee for its pork on the bill

I call the Hon Jacqui Dean select committee for its pork on the bill I call the Hon Jacqui Dean I bill I call the Hon Jacqui Dean

I want bill I call the Hon Jacqui Dean I want bill I call the Hon Jacqui Dean I want to congratulate Stuart bill

I call the Hon Jacqui Dean I want to congratulate Stuart Smith, want to congratulate Stuart Smith, which I know a want to congratulate Stuart Smith, which I know a want to congratulate Stuart Smith, which I know a number of members want to congratulate Stuart Smith, which I know a number of members which I know a number of members of the which I know a number of members of the which I know a number of members of the House have which I know a number of members of the House have which I know a number of members of the House have done the which I know a number of members of the House have done the which I know a number of members of the House have done the same which I know a number of members of the House have done the same thing the House have done the same thing but, the House have done the same thing but, the House have done the same thing but, Mr the House have done the same thing but, Mr Smith, well the House have done the same thing but, Mr Smith, well but, Mr Smith, well done because you have brought but, Mr Smith, well done because you have brought but, Mr Smith, well done because you dry yourself in the media and it could dry yourself in the media and it could be described as dry yourself in the media and it could be described as dry yourself in the media and it could be described as a bit dry yourself in the media and it could be described as a bit