Urgent Debate: Insider Trading Dr Pita Sharples
te-pati-maori
Tue Jun 19 2007 12:00:00 GMT+1200 (New Zealand Standard Time)
Urgent Debate: Insider Trading Dr Pita Sharples
Tuesday, 19 June 2007, 4:28 pm
Speech: The Maori Party
Urgent Debate: Insider Trading Dr Pita Sharples;
Co-leader Maori Party Tuesday 19 June 2007
The Maori Party welcomes the initiative of Mr Peters in bringing the issue of insider trading to the Parliament.
We see it within the greater context of justice; of fairness; of transparency. Values we would expect to see right across the Government sector.
Alongside the Minister's praise to the Securities Commission, I believe it is important that this House also acknowledges the leadership that Mr Peters has demonstrated; and to also record our commendation to Bruce Shepherd of the Shareholders Association for his action in driving this case forward.
We will support any moves which combat corruption; which ensure that standards of accountability and transparency apply.
We are interested in the comments of the Shareholders' Association which were, inevitably, very positive; describing the final settlement in the Tranz Rail insider trading case as a good result for shareholders and the share market.
The Shareholders' Association went further to note that the settlement shows regulations will be rigorously policed in larger cases.
And in this respect, we in the Maori Party believe that the issue of accountability; following due process and indeed, ensuring the process that is followed is an honourable one, is timely in the context of recent damning reports from the Waitangi Tribunal about the flaws and unprofessional conduct of officials in the context of the Treaty Settlement process.
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What this whole issue is about is the devaluing of shares, an event which the Securities Commission has condemned in the way in which they suggest the directors, executives and major shareholders of Tranz Rail knowingly entered into a project which quickly headed into trouble.
The millions of dollars which the investors have agreed to pay as compensation to shareholders brings justice for the shareholders who have lost money in this deal.
But we were interested in the comments of the Securities Commission chairperson, Jane Diplock, who noted that it is important the share market is transparent and fair, especially when thousands of New Zealanders will be investing in it through KiwiSaver.
It shows to this world that insider trading is being policed in this country.
And it reminds us of another investment venture that this Government has pioneered; of course in terms of the context of superannuation funding.
A couple of months ago in March of this year, the Auckland University Students for Justice in Palestine organised a march down Queen Street in Auckland to protest against the Government's alleged "unethical investment" in companies producing nuclear weapons and cluster bombs.
Demonstrators explained their action against the New Zealand Superannuation Fund because it funds investments in corporations which produce weapons like cluster bombs which have been used in Lebanon.
But this protest also served to remind us all, how absolutely hypocritical a Government would be to promote a non-nuclear policy yet while at the same time, investing in companies that produced nuclear weapons.
The values that are behind this debate therefore of transparency; of accountability; of justice must be the values which are applied to every sector of our Government
They must be applied in the operations of Government investments such as superannuation.
They must be applied in the case of policies such as Kiwisaver and Working for Families, which we know New Zealanders do not benefit from in a consistent or fair way.
It is a question of wealth; and how it can corrupt democracies.
We must forever be alert to the possibilities and those people who in the interests of accumulating more, will use their economic influence to ensure gain for themselves.
The Maori Party acknowledges the advice of the Securities Commission that investors can be assured the share market is a level playing field, following the final settlement.
And we would only hope that this same fair level playing field, is a concept across Aotearoa that we would hope to have meaning for all citizens of this land.
What the Waitangi Tribunal has showed us in this past week, is that the concept of a fair level playing field is not being played out between the Crown, as controller; and iwi.
There is no regulator in the context of treaty settlements; there is no Securities Commission who can bring a prosecution against an entity which unfairly disadvantages its own citizens; in this instance Maori citizens of Aotearoa.
The Maori Party, looks therefore, to the precedent of this case as another example that we can learn from in establishing an Independent Settlements Authority or Commission to truly achieve justice; and perhaps even have the powers to prosecute.
ENDS
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