Chris Pearce (Aston, Liberal Party, Parliamentary Secretary to the Treasurer) Share this | Hansard source

I would like to thank those honourable members who have taken part in the debate today on this important piece of legislation, the Corporations (NZ Closer Economic Relations) and Other Legislation Amendment Bill 2007. The bill further cements Australia’s close economic ties with New Zealand and continues the move towards a single economic market based on common regulatory frameworks. The bill reduces duplication in regulatory compliance in trans-Tasman financial markets. It also allows the ACCC to exchange certain information with domestic and international regulators, including the New Zealand regulators, in certain circumstances.

The bill’s first initiative allows a New Zealand entity to offer securities in Australia and New Zealand based largely on compliance with New Zealand fundraising laws. Of course, mutual recognition means that Australian entities will also be able to offer securities in New Zealand under reciprocal similar regulatory arrangements. Importantly, this initiative will reduce compliance costs to business, with flow-on effects expected in the form of increased investor choice and enhanced competition in capital markets.

The second initiative reduces the filing burden on New Zealand companies operating in Australia, with equivalent simpler filing arrangements for Australian companies operating in New Zealand. This deregulatory initiative reduces the costs for approximately 1,500 Australian companies operating in New Zealand and 500 New Zealand companies operating in Australia. Whilst the two initiatives are framed with Australia and New Zealand in mind, these arrangements could also be extended to countries other than New Zealand. The importance of these initiatives is evidenced by the trade figures with New Zealand, which is Australia’s third-largest investment destination and fifth-largest trading partner in goods and services.

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