Supplementary Order Paper No 416

No 416

House of Representatives

Supplementary Order Paper

Tuesday, 10 December 2019

Venture Capital Fund Bill

Proposed amendments

Hon David Parker, in Committee, to move the following amendments:

Clause 10

In clause 10, new section 51(1)(b), delete Part 2 of” (page 5, line 3).

Clause 25

After clause 25(3) (page 8, after line 16), insert:

(4)

VCF money is not public money for the purpose of the Public Finance Act 1989.

In clause 25, compare reference, replace “s 38” (page 8, line 17) with “ss 38, 39(5)”.

Schedule 2

In Schedule 2, item relating to section HR 4B(2) and (3) of the Income Tax Act 2007, new section HR 4B(2)(b), delete , Part 2 (page 22, line 32).

Explanatory note

This Supplementary Order Paper amends the Venture Capital Fund Bill.

The amendment to clause 25 clarifies that Venture Capital Fund (VCF) money is not public money for the purpose of the Public Finance Act 1989. This is consistent with the position for New Zealand Superannuation Fund money that is not in a Crown Bank Account. This means, for example, that section 5 of that Act does not apply. Section 5 provides that public money must not be spent unless in accordance with statutory authority. The spending of VCF money is already subject to various controls, including those in clause 27. The Guardians of New Zealand Superannuation are also accountable for how they manage, administer, and invest VCF money through their duties (for example, in clauses 32 and 33). These controls and accountability arrangements give sufficient assurance that the VCF money will be properly spent.

This Supplementary Order Paper also makes minor amendments to facilitate dividing the Bill into 2 Bills:

  • the New Zealand Superannuation and Retirement Income Amendment Bill:

  • the Venture Capital Fund Bill.

Departmental disclosure statement

The Treasury considers that a departmental disclosure statement is not required to be prepared for this Supplementary Order Paper.