NEWS ON POLICY
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IN POLITICS A matter of opinion IN THE NEWS Royal Commission on Auckland Governance Overseas Investment Amendment Regulations Stapled securities revenue loss halted Emissions Trading and Deforestation Carbon Abatement PROGRESS OF LEGISLATION Bills Introduced/Awaiting First Reading more... Bills Open for Submissions more... Bill Reported Back / Further Reading more... Second Reading Negatived more... Supplementary Order Papers
Acts Assented more... Regulations more... In Committee more... Justice and Electoral Committee - Real Estate Agents Bill. more... Transport and Industrial Relations Committee - Land Transport Management Amendment Bill and the Public Transport Management Bill. more... Foreign Affairs, Defence and Trade Committee - Customs and Excise Amendment Bill (No 3) more... Local Government and Environment Committee - Biofuel Bill. more... Utilities Access Amendment Bill more... Petroleum Mining Tax more... Restructuring and Redundancy more... Changes to the Trade Marks Act 2002 more...IN CONSULTATION more...
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A matter of opinion…Labour strategists may have been troubled by whatever local parallels may be drawn with America’s ‘mood for change’, but they will also have been pleased by the greater rigour to which Barack Obama has more recently been subject. The possibility that the experience and resolve of National’s John Key may come under similar scrutiny must also be in the forefront of their minds. Key’s equivocating response to Labour’s sudden intervention in the Overseas Investment Rules is unlikely to overshadow the grilling that Health Minister David Cunliffe is enduring in the Hawke’s Bay. But it is a sign of the depth of National’s anxiety about alienating ‘middle New Zealand’ sentiment, particularly when it concerns money and ‘them there ferreners’. It is a sensitivity that may be both justified and reasonable, but it leaves National struggling to rebut the long standing criticism that it is less concerned with principle that it is with what it sees as the pragmatics of winning the Treasury benches. The fact that Labour’s own move was a populist one is largely irrelevant. It was National’s point to lose. And, for the first time in the past several months, it did. |
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Royal Commission on Auckland GovernanceThe Royal Commission on Auckland Governance is calling for submissions on Auckland’s local and regional governance arrangements. The Commission has released a discussion document which provides background information on Auckland’s current organisation and outlines the major issues it will be investigating. The document can be downloaded from the Royal Commission website, www.royalcommission.govt.nz. Submissions to the Royal Commission close on 22 April 2008. The Commission will consult with interest groups, conduct hearings, review submissions, and present a report with recommendations to the Governor-General by 1 December 2008. Any enquires about the consultation process or development of submissions can be directed to Tim Clarke or Doug Bailey of the Russell McVeagh Public Law Policy team Overseas Investment Amendment RegulationsCabinet has advanced the Overseas Investment Amendment Regulations 2008, which allow consideration of "whether the overseas investment will, or is likely to, assist New Zealand to maintain New Zealand control of strategically important infrastructure on sensitive land". This change was prompted by the Canada Pension Plan Investment Board's bid for a 40% stake in Auckland International Airport. The intervention has attracted vocal criticism from investment groups, which claim that its nature and timing will damage New Zealand's reputation in foreign capital markets, on which the country is dependant. Stapled securities revenue loss haltedCabinet has agreed to amend the law on certain types of stapled securities to prevent loss to the revenue base from the use of those instruments. Staples securities combine two or more securities which cannot then be separately traded. Companies can use stapled stock instruments to pay tax-deductible interest to shareholders as a substitute for dividends, which creates problems for tax-gatherers if the instruments are issued to foreign investors in New Zealand companies. Under the Income Tax Act, stapled securities will now be treated as equity for tax purposes, and no deductions for interest payments will be available. Michael Cullen and Peter Dunne have issued a statement detailing that the change will be included in the next available taxation bill and will apply to stapled stock issued or stapled after 25 February 2008. It also explains that the announcement was made without prior consultation "because it is a matter of urgency, since some companies may be contemplating the issue of the type of stapled stock in question". We note that the Canadian Pension Plan Investment Board fund bidding for Auckland International Airport has included stapled securities in its offer. The Ministers have said that tax policy officials will consult with interested parties on the detail of the proposed changes before legislation is introduced. Emissions Trading and DeforestationThe Climate Change (Emissions Trading and Renewable Preference) Bill (2007), currently at Select Committee stage, seeks to introduce a greenhouse gas Emissions Trading Scheme. If passed, owners of pre-1990 exotic forests (who have not been granted an exemption) will have to surrender emissions units to cover emissions from deforestation. A Ministry of Agriculture and Forestry survey of forest owners indicates that there will be substantially less deforestation under this policy than under other policy scenarios allowing forest-owners greater flexibility. However, MAF has cautioned that many forestry land-owners are taking a "wait and see" approach until the emissions trading policy is finalised. Carbon AbatementFuture governments might be forced to restrict electricity usage if the country is to achieve its carbon emissions targets. In a joint paper (Carbon abatement effects of electricity demand reductions), the Ministry of Economic Development and the Electricity Commission have developed a "rule of thumb" test to assess the emission reduction effects of projects which reduce electricity use. Their analysis indicates that, in the longer term, "demand reduction measures may be the key to ensuring that demands on the generation system are held at a level that can feasibly be met with renewables". Limiting electricity usage may a necessary measure for future governments, if they choose to retain New Zealand's current long-term strategy of moving away from reliance on fossil fuels for reliable supply.
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PROGRESS OF LEGISLATION |
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Bills Introduced/Awaiting First ReadingBishop Suter Art Gallery Governance Restructuring Bill The purpose of this Bill is to reform the legal structure of the Bishop Suter Art Gallery Trust Board. The existing structure is seen to create problems of administration and accountability and the Bill seeks to install modern governance arrangements for the Suter Art Gallery. Bills At Select CommitteeThe Children, Young Persons, and Their Families Amendment Bill (No 6) was read for the first time and referred to the Social Services Committee. Submissions are due on 28 April 2008. The Committee is due to report back on 4 September 2008. The Alcohol Advisory Council Amendment Bill was read for the first time and referred to the Health Committee. Submissions are due on 26 March 2008. The Committee is due to report back on 26 June 2008. The Māori Trustee and Māori Development Amendment Bill was read for the first time and referred to the Māori Affairs Committee. Submissions have not yet been called for. The Committee is due to report back on 3 September 2008. The Corrections Amendment Bill (No 2) was for read for the first time and referred to the Law and Order Committee. Submissions are due on 8 April 2008. The Committee is due to report back on 20 August 2008. The Summary Offences (Tagging and Graffiti Vandalism) Amendment Bill was read for the first time and referred to Law and Order Committee. Submissions are due on 11 March 2008. The Committee is due to report back on 21 April 2008
Bills Reported Back / Awaiting Second ReadingMelanesian Trusts (Income Tax Exemption) Amendment Bill Bills Passed Second Reading / Awaiting Third ReadingBroadcasting Amendment Bill Second Reading NegativedNone Supplementary Order PapersSOP 179 Limited Partnerships Bill
SOP 177 Misuse of Drugs (Classification of BZP) Amendment Bill
SOP 176 Limited Partnerships Bill The amendments to the tax clauses of the Bill correct remedial drafting issues. The amendments ensure that:
SOP 174 Corrections (Mothers with Babies) Amendment Bill SOP 173 Waitakere Ranges Heritage Area Bill SOP 141 Waitakere Ranges Heritage Area Bill This SOP proposes to amend the Waitakere Ranges Heritage Area Bill so that the considerations to be taken into account by a consent authority, when considering an application for resource consent for a controlled or restricted discretionary activity in the heritage area, include:
Bill PassedNone Acts AssentedNew Zealand Guardian Trust Company Amendment Act 2008 RegulationsHealth Entitlement Cards Amendment Regulations 2008
Securities Act (Telecom Corporation of New Zealand Limited) Exemption Revocation Notice 2008 In CommitteeThe Justice and Electoral Committee is hearing oral submissions on the Real Estate Agents Bill. Issues presented include whether property management activities should be captured by the Bill, the degree of industry participation in the processes of the proposed new regulatory body, the proposed requirement to require bidder registration prior to auction, and training and education in the real estate sale industry. It also continues to hear submissions on the Trustee Amendment Bill. The Transport and Industrial Relations Committee continues to hear submissions on the Land Transport Management Amendment Bill and the Public Transport Management Bill. In relation to the former, a number of submissions have commented on the issue of regional fuel tax. Submitters include the various regional and city councils, as well as Local Government New Zealand. The Foreign Affairs, Defence and Trade Committee is hearing submissions on the Customs and Excise Amendment Bill (No 3), including an oral submission from British American Tobacco (NZ) Limited in support of the move to increase regulation of illegal tobacco manufacture in New Zealand. The Local Government and Environment Committee is hearing submissions on the Biofuel Bill, including from the Sustainable Energy Forum, Argent Energy, BP Oil New Zealand Limited, Mobil Oil New Zealand Limited, and the New Zealand Refining Company. Mobil's submission included comment that the biofuel sales obligation should be reduced because biofuel manufacturing capacity in New Zealand is not sufficient to meet the proposed target of 3.4%.
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Utilities Access Amendment Bill Petroleum Mining Tax Restructuring and Redundancy Changes to the Trade Marks Act 2002
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IN CONSULTATION |
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What's New
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| RELEASED BY ... | ISSUE | SUBMISSIONS
CLOSE ON... (2007) |
| Auckland CC | Future Auckland Governance | 25 March |
| Biosecurity NZ | Draft Standard for Low Security Farm Animal Transitional Facilities | 4 April |
| Commerce Commission | Next Generation Neworks – Terms of Reference | 28 March |
| Electricity Commission | Grid Planning Assumptions | 13 March |
| Food Safety Authority - NZ; Biosecurity NZ | Review of Agricultural Compounds & Veterinary Medicines (Fees & Charges) Regulations 2002 | 26 March |
| IRD | Disputes Resolution Process Commenced by a Taxpayer | 4 April |
| Labour - Dept of | Restructuring and Redundancy Law (contact r&[email protected]) | 20 April |
| Maritime NZ | Draft navigation plans - Wairau River; Lake Brunner | 31 March |
| Standards NZ | Glass in buildings – Selection and installation | 27 March |
| Transpower | Pole 1 | 4 April |
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publication is intended only to provide a summary of the subject
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advice. No person should act in reliance on any statement contained
in this publication without first obtaining specific professional
advice. If you require any advice or further information on the
subject matter of this newsletter, please contact the partner/solicitor
in the firm who normally advises you, or alternatively contact:
| Tim Clarke - Partner Ph 04 819 7532 [email protected] |
Doug Bailey - Consultant Ph 04 819 7572 [email protected] |
© Russell McVeagh 2005. All rights reserved.