Thanks for the opportunity to speak as part of your Government Boardroom series.

I want to talk about two related areas that I've been focusing on in my Commerce portfolio.

The first will be of particular interest to Trans-Tasman Business Circle members - and that's the Government's desire to accelerate the development of the Single Economic Market with Australia.

The Prime Minister has spoken about this recently, setting out his vision of New Zealand and Australia working together to create a stronger, more connected, and more streamlined trans-Tasman trade and business environment.

The second area I'll speak about is our financial markets policy - which is also very relevant in the trans-Tasman context, given that our financial markets are highly integrated with Australia's.

This is an area where confidence is essential in the current global economic climate.

Single Economic Market

Earlier this year, John Key and Kevin Rudd pledged their commitment, in the face of the global economic downturn, to accelerate trans-Tasman regulatory harmonisation and alignment in order to stimulate business and create jobs.

Such a commitment requires lifting the game on the Single Economic Market agenda.

In August, they announced a new framework of principles and a range of shared practical outcomes for developing cross-border economic initiatives.

The outcomes framework sets out the goals we hope to achieve in specific areas, while keeping open the range of options for achieving them.

The framework principles recognise that by working together, Australia and New Zealand can achieve economies of scale and scope in regulatory design and implementation. 

By operating under the same regulatory umbrella where possible, we can cut the cost of running a comprehensive modern regulatory system.  And those reductions in the cost of regulation will flow through to the business sector.

The outcomes complement and build on the extensive work already under way under the Single Economic Market.

The outcomes-based approach moves the mindset to one focused on possible solutions to achieve a goal, rather than the difficulties that can occur with harmonisation.

The new framework will help us address the transaction costs which companies face when doing business on either side of the Tasman, especially as a result of different laws and regulations.

This work will foster our international competitiveness and improve the environment for doing business - no matter which side of the ditch we're on.

With our already closely integrated trans-Tasman market, many companies are doing business in both countries, and are dealing with suppliers, customers or investors from both countries.

So, the easier we can make it for them to operate by removing unnecessary compliance costs and, where possible giving businesses one set of rules, the better it'll be for New Zealand's productivity.

The Government welcomed the Australia's invitation earlier this year to participate in the Business Regulation and Competition Working Group.

This group has been established by the Council of Australian Governments.  Its primary task is to oversee and accelerate a far-reaching regulatory reform agenda aimed at creating a seamless Australian national economy and reducing the regulatory burden on business.  Being part of the working group is another way for us to share ideas and align our approaches to economic and regulatory reform.

To illustrate the benefits of this approach, I'll mention a couple of the outcomes agreed as part of the new framework.

Firstly, we've agreed to aim for a single insolvency proceeding where an insolvent business has trans-Tasman interests.

Both countries have already adopted the United Nations Commission on International Trade Law's Model Law on Cross-border Insolvency. 

Countries that have adopted the Model Law should take the same approach to insolvency proceedings. 

However, we want to go further and have one process so we can minimise costs and make available to creditors the maximum possible amount of the money they're owed.

Another of the outcomes we want to achieve is for trans-Tasman businesses to have to file company information only once to meet the requirements of both governments. 

We have taken a first step towards this already, with the New Zealand Companies Office and Australian Securities and Investments Commission (ASIC), through a data exchange, able to receive information relating to companies operating on both sides of the Tasman. 

This removes the need for companies to file the same information in duplicate. 

But this data exchange is based on the current legislative requirements in both countries, so where each country has different requirements, companies still have to meet both.

One option for complete achievement might be for each country to look at all the information they require companies to file to see if requirements can be aligned.

It's not likely such an exercise would take place without the overall objective of businesses having to file things just once.

So what New Zealand is looking to do in the trans-Tasman arena is, in fact, mutually reinforcing what we're both doing at home.

It isn't just harmonisation of law or the creation of joint institutions that can provide benefits. 

Some of the outcomes may be achieved through other pragmatic approaches - for example, cooperation between regulators or arrangements to use the same software or IT systems.

The Commerce portfolio is central to the single economic market because it includes responsibility for the framework of laws regulating the broader business environment - whether setting up a business, looking at how to protect its intellectual property, the obligations when reporting financial performance, considering how to raise capital, or seeking a merger or a takeover.

Most of the shared outcomes that have been identified in the new framework fall within the Commerce portfolio - those that relate to insolvency law, financial reporting policy, financial services policy, competition policy, business reporting, company law, personal property securities law, and intellectual property law.

Developments in financial markets policy

Which brings me to the work we're doing to ensure New Zealand has a sound regulatory regime that supports efficient and dynamic financial markets.

Part of getting the framework for a Single Economic Market right is ensuring we have appropriate domestic regulatory frameworks.

An efficiently operating financial system aids economic development by allocating limited capital to its best use.

This is key to higher productivity and economic growth.

A robust and efficient financial sector that is resilient to economic shocks is an essential prerequisite for a strong and dynamic economy.

The events of the past 12 months have highlighted the various gaps in our financial sector regulatory framework.

Since the election, the National-led Government has moved swiftly to close those gaps and improve New Zealand's resilience to the instability in the financial sector.

We have also taken opportunities where we could to remove some of the red tape and make things easier for businesses.

Earlier this year, the Securities (Disclosure) Amendment Act 2009 was passed.

This allows listed businesses to publish a simplified prospectus when issuing further securities. This will make it easier for businesses to raise capital while continuing to ensure that prospective investors have the information they need for decision-making.

The new Securities Regulations 2009, which came into force last week, further the objectives of the legislation and specify much of the detail of the simplified disclosure prospectus.

The regulations also re-organise and fix minor aspects of the Securities Regulations in an effort to make the regulations more user friendly. They reduce compliance costs, improve flexibility for issuers and enhance disclosure to investors.

I'm confident these initiatives will help our capital market's road to recovery.

We want to make it easier for organisations to raise money, and I want to be very clear that a regulatory framework that supports investor confidence is critical to that end.

Accordingly, the Cabinet has recently agreed to a number of proposals that will improve the trustees' supervision of issuers.

This includes a licensing regime for trustees that supervise debt issuers and certain collective investment schemes. The regime also removes the automatic right for the six statutorily approved trustee corporations to supervise such issuers.

The Securities Commission will have the power to tailor licences so trustees have processes in place that are in proportion to the level of risk associated with the issuers they supervise.

They'll take into account matters such as the trustee's competence, systems and processes for supervising issuers, and financial strength.

The regime will have additional measures to improve the quality of supervision provided by trustees, including:

• Enhanced powers of enforcement against trustees who fail to comply with their duties.
  
• Greater prescription around matters that must be addressed in trust deeds.
  
• Mandatory reporting to the Securities Commission by trustees when issuers may be nearing default on securities.
  
• Giving the commission the power to direct trustees to take action against issuers.

We're also implementing the Financial Advisers and Financial Service Providers legislation. The main obligations created by the legislation include:

• The registration of all financial service providers to provide a means of identifying and monitoring financial service providers, and
  
• Regulation of financial advisers by the Securities Commission to encourage professionalism and public confidence in the sector.

We aim to have the regime fully in force by the end of next year.

I'm confident that the higher quality of advice that will flow from this will play a crucial part in encouraging informed participation in our capital markets.

It'll also contribute to another of our Single Economic Market outcomes - that financial advisers should be able to operate across the Tasman without further approvals.

Furthermore, in August, Cabinet agreed to the development of new regulations for debt issuers proposing moratoria.

These regulations will ensure key information is available to investors who're being asked to make significant decisions about their investments based on onerous and highly complex disclosure documents.

Debt issuers will be required to provide clear and concise investment statements about moratoria proposals, along with independent expert advice, the views of the trustees, and the considerations of the company directors.

The aim of the regulations is to ensure the right information is made available in a transparent and easy-to-understand way.

Most significantly, my officials have also begun reviewing the Securities Act 1978.

I've asked them to look into:

• The scope and objectives of New Zealand's securities regime.
  
• The provision of investor information.
  
• The regulation of managed funds, and ...
  
• The institutional arrangements for the regulation of securities.

This is a critical initiative to ensure that our capital markets are effective and efficient and play their role in supporting economic growth. 

The officials are working with the Capital Markets Development Task Force on these issues.

In all these areas there is also an important trans-Tasman dimension to pursue.

As should be most evident, we have a very ambitious work programme ahead of us, both from a domestic and a trans-Tasman perspective.

I'd like to emphasise that I'm giving very high priority to the Single Economic Market agenda, and I'll be working very closely with my counterparts in Australia to ensure progress is made.

This Government's foremost priority is to find outcomes that will benefit all New Zealanders, and I welcome your input on how we can work together to achieve that.