GEORGINA BEYER (Labour—Wairarapa): I move, That the Masterton District Council (Montfort Trimble Foundation) Bill be now read a second time. I am very pleased that the Local Government and Environment Committee has dispatched this bill, and I would like to acknowledge it straight out, as part of my initiating remarks. I would like to compliment and thank Jeanette Fitzsimons, who is the chairperson, David Parker, who is the deputy chairperson, Shane Ardern, Larry Baldock, Dr Ashraf Choudhary, Sandra Goudie, Ann Hartley, Nanaia Mahuta, the Hon Damien O’Connor, Jim Peters, the Hon Ken Shirley, and the Hon Dr Nick Smith for their contributions throughout the committee’s deliberations.

This bill was referred to the select committee on 4 December 2002, so it is only just over a year since it first went before it. The committee heard a number of submissions—seven to be precise. I would like to thank the committee for finding the time to deal with this bill. I recognise and acknowledge its very heavy workload. It got through the Masterton District Council (Montfort Trimble Foundation) Bill as expediently as it could.

The committee has come back with some recommendations, which I support. I think the recommendations are fair, and also are consistent with more modern legislation that has come to pass in recent times. The Government supports the legislation. I have to say that I personally heard select committee members wonder from time to time why on earth a bill like this actually needed to be before them. However, with the new powers now delegated to local government under the new Local Government Act 2002, there will be less of this type of legislation coming before the committee in the future, one would hope.

The Masterton District Council (Montfort Trimble Foundation) Bill establishes public afforestation in the Masterton district. It gives more flexibility to the council, as trustee of the Trimble Forest, and to the New Zealand Guardian Trust Co. Ltd, as trustee of the Trimble Trust. For example, the foundation created by this legislation will be able to undertake activities in areas outside the boundaries of the former Masterton County Council, subject to the marginal discretion allowed by the bill. Also, it will distribute proceeds outside the original county boundaries, but still for the benefit of persons within those boundaries. It also sets up the Montfort Trimble Foundation as a publicly elected body corporate that promotes public afforestation.

To give a little bit of background, the bill establishes—as I have just mentioned—the Montfort Trimble Foundation as a charitable trust, with the intention to administer proceeds arising out of the Trimble Trust and the harvesting of the Trimble Forest. Under the will of Dr Montfort Trimble, who died in 1940, a charitable trust was established for the purposes of public afforestation in the then area of the Masterton County. In 1942 the Masterton County Council used income from the Trimble Trust to purchase a 127-hectare forestry block, known as the Trimble Forest, which was administered under separate trust arrangements. Currently, the Masterton District Council administers the Trimble Forest trust, while the Trimble Trust is administered by the Guardian Trust. The Trimble Forest is now being harvested, and the proceeds from the sale of harvested timber are expected to exceed the cost of replanting.

I shall give a quick summary of some of the recommendations from the select committee. On the powers of the foundation, the select committee recommends that the Montfort Trimble Foundation’s capacity to carry out or undertake any business or activity, do any act, or enter into any transaction in order to further its objectives should be limited to activities related to public afforestation, so the committee recommends inserting the word “related” in clause 6(1)(a).

The select committee also discussed the matter of the removal of board members. It recommends adding a new clause to specify that the Masterton District Council or Guardian Trust may remove a board member only if the board member is unable to perform his or her duties adequately, or for neglect of duty or misconduct.

The committee also recommends, on the matter of casting votes, amending the bill to omit the provision for the chairperson to have the casting vote, because under the Local Government Act 2002 chairpersons are not allowed a casting vote, and this amendment will ensure consistency with the Local Government Act.

Some of the wider distributions that this bill enables will help to enhance such things, with regard to afforestation, as amenity and flood protection. The beneficiaries of such afforestation, because of the establishment of this foundation, will be primarily those living within the former trust areas of the Masterton County, but also a percentage—although it is capped—of the proceeds can be distributed outside that particular area, but inclusive of what are now known as the Masterton District Council boundaries.

I add that in the Committee stage I have a small amendment to make, because officials omitted to do a small thing that is a consequential effect of a unanimous decision to strike out a piece of the bill. I flag now to members that I will propose that amendment, which is currently on the Table for members’ information.

In conclusion, I thank all those people who, I hope, will support the passage of the bill. It is primarily non-controversial, and will be of benefit to the environment, I might add.