In any auction, a reserve price is the lowest price that the seller—in this case, the Government—is willing to accept for the auctioned product. It is a way of protecting the Government from selling units at a level significantly below the prevailing secondary market price, which, in the absence of this bill, could occur as a result of unexpectedly weak competition during the auction, or from bidders seeking to gain from a low clearing price by withholding bids or bidding in a coordinated way at prices significantly below the secondary market price. And so what this bill does is introduce a mechanism for New Zealand units to be held back from sale if, at the end of an auction, the clearing price for units is lower than the reserve price.