NEWS ON POLICY
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IN PARLIAMENT The speech from the throne The policy priorities IN OTHER NEWS Inquiry into disclosure of funding shortfall in ACC Non-Earners Account more... 90-day workplace trial legislation introduced more... IN PARLIAMENT Bills Introduced /Awaiting First Reading more... Taxation (Urgent Measures and Annual Rates) Bill Bills reinstated more... Regulations more... IN CONSULTATION more...
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The speech from the throneIt had none of the careful political branding that characterised the last Speech from the Throne. Gone were the multiple references to 'sustainability' and centrally determined appeals to Kiwi identity. Instead, the statement of the Government's legislative and policy intent with which the 49th Parliament was opened presented a direct and, in places, blunt agenda. That is not to say that this year's Speech from the Throne was without its polemic. The new administration's view of the role of Government versus that of the individual was clear - it will be guided by "individual freedom and New Zealanders' capacity to shape and improve their own goals." In addition to raising an impudent digit to the surviving remnants of the Labour-led Government, that simple proposition will almost certainly bring the administration into conflict with interventionist minded agencies, like the Ministry of Health and the lobby groups they support. Used to a ready political patronage for the latest "what's good for you" measure it is clear that these organisations will find life radically altered. The humble and, for some, ego-popping, acknowledgement that "the true builders of a stronger economic future are not sitting in [the Parliamentary] chamber today," was also an important signal that the administration sees itself in a supporting role only. The stars of long-term social and economic security are to be found elsewhere. Although significant National's ideological burp was generally muted. In the end the Speech was less political than it was a management agenda, the main theme of which was building economic growth and resilience in the face of global recession. Identifying falling productivity levels, the decline in after-tax wage rates relative to Australia, and an historical failure to grasp opportunities as the obstacles, it has set a general goal for New Zealand to lift its game. The policy prioritiesThe Government's priorities, as outlined in the Speech from the Throne, were: Infrastructure Investment National has reaffirmed its commitment to stimulate the economy through an incremental programme of personal tax cuts, and increased infrastructure investment. Signalling an intention to work with the private sector to "maximise the impact of public investments", the focus with be on transport projects, schools and broadband development. Regulatory reform Acknowledging the long-standing business complaint that Government regulation is often more of a hindrance than it is enabling, the Government has also affirmed its intention to undertake a "regulatory review programme" to remove inefficient regulation and ensure regulation is used "sparingly and effectively". Also, it will undertake a two-step reform of the Resource Management Act 1991. The first step will involve measures to remove costs, delays and uncertainties. Step two will involve improvements to decision making in respect of water allocation and urban design. Financial system The Government will continue to shore up the liquidity of the financial system by maintaining support for the retail deposit and wholesale banking government guarantees for as long as they are required to ensure the effective operation of the banking system. Promoting New Zealand investment, the new Government also proposes to set the New Zealand based investment target for the $14 billion of assets in the Government Superannuation Fund at 40%, up from the current 25%. Also, the Government has indicated its intention to announce details of its "Restart" support package for those affected by the recession and confirmed that it will reduce the minimum employee contributions to Kiwisaver to 2% of an employee's gross salary, to ensure that "saving is a more affordable choice". Public spending An examination of public spending is also on the cards with the objective of eliminating waste and focusing resources on frontline services. Emissions Trading Scheme As part of its confidence and supply agreement with the ACT Party, the Government will embark on a review of the Emissions Trading Scheme ("ETS"). It will strive to find a balance between the country's environmental responsibilities against economic means available. Priorities include:
Education Reflecting the Prime Minister's own passion for education as a lever for economic development, the Government has announced its intention to modernise the school system, prepare students for employment and ensure that students are equipped to succeed. National Standards in literacy and numeracy will be introduced at primary level and parents will receive "Plain English" reports on their children's progress. A "Trades in Schools" policy will be introduced at secondary level. Specialised Trades Academies and school-based apprenticeships will be made available, along with "trades and technology-based learning opportunities". At the senior end of secondary education, the Government will introduce a "Youth Guarantee", providing 16-17 year olds with an entitlement to free school-level education at a greater range of institutions - including wananga, polytechnics and private training establishments. Voluntary Bonding In tertiary education, the Government aims to reduce the bureaucracy and respond to employers' and students' needs. In particular, "Voluntary bonding schemes", based on student-loan write-offs, will be introduced for graduates in "hard-to-staff professions", including doctors, nurses and teachers. Law and order The get tough approach signalled in National's election campaign will be reflected in the provision of stronger sentencing, parole and bail laws, additional police in South Auckland, and giving police the power to issue on-the-spot protection orders and to take DNA at the time of arrest. On the preventative and rehabilitative side of the ledger, the Government will introduce "Fresh Start" programmes for youth offenders, incorporating military-style training and intensive mentoring. It will also increase rehabilitation programmes in prison and introduce compulsory work programmes. Public health The Government's health priorities will be to reduce surgery waiting lists and deal with the health workforce crisis. In a bland, but potentially significant statement, the Government has also indicated that it will give health professionals more say in the running of the health system and require DHBs to work more collaboratively. Māori and Treaty issues Unsurprisingly, fresh energy is to be devoted to the settlement of all Treaty grievances by 2014. Also, under the confidence and supply agreement with the Māori Party, the Government will undertake a review of the Seabed and Foreshore legislation to determine whether it enhances mana whenua. The Government will also establish a group to consider Māori representation as part of a wider constitutional review. Constitutional issues The Government will repeal the Electoral Finance Act which it regards as a "yoke on free speech" and as "eroding the democratic principles that underpin our country". The Electoral Act 1993 will be an interim replacement, with the parts of the Electoral Finance Act dealing with donations incorporated. MMP will be the subject of a referendum, as will a range of alternatives. Foreign policy A bipartisan approach will be taken to foreign policy decision making, including an "ongoing commitment to trade liberalisation and the pursuit of bilateral, regional and world-wide free trade agreements".
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Inquiry into disclosure of funding shortfall in ACC Non-Earners AccountThe Terms of Reference for the Ministerial Inquiry into the disclosure of the funding shortfall in ACC’s Non-Earners Account has been released by Finance Minister Bill English. “There are serious questions to be answered about why a serious hole in the Government accounts was not disclosed and what should be done to stop this situation recurring. I look forward to getting some answers,” Mr English said. The Inquiry will be carried out by Michael Mills of policy consulting firm, Martin'Jenkins. Mr Mills will consult with The Treasury, the Department of Labour, the State Services Commission, the Cabinet Office and the ACC Board and staff. He will report his finding to the Minister of Finance by Friday 27 February 2009. An initial account on why the ACC increase was not identified earlier and included in the Pre-election Financial Update, and what changes need to be made as a result, is expected prior to that date. Terms of Reference The terms of reference for the Inquiry are as follows:
90-day workplace trial legislation introducedLabour Minister Kate Wilkinson, announced that trial employment periods for up to 90 days will be available for employers with fewer than 20 employees, from April 2009. Indicating that an amendment to the Employment Relations Act 2000 will be introduced under urgency and passed through all its stages, Wilkinson describes the initiative as part of the wider effort of the Government to bring about economic and productivity improvements, as well as a means of increasing job opportunities. “Existing legislation exposes smaller businesses to the risk of costly employment action if an employment relationship does not work out, and discourages them from taking on new staff," Wilkinson said. “By lowering the legal risks employers face, they will be more confident in giving people the opportunity to prove themselves." The proposal has attracted criticism from unions and the Māori Party, concerned by the suspension of the usual consultative process. Wilkinson has given assurances that employees will retain all other rights including those relating to pay, conditions, leave, and health and safety. “Employees will still be able to take a personal grievance under the discrimination provisions of the Employment Relations Act through the Employment Relations Authority or Employment Court," she said. “This change brings us into line with the vast majority of OECD countries, where trial periods are an established part of employment law.” Treasury briefing releasedThe Minister of Finance has released the Treasury Briefing to the Incoming Minister In a related press release, Treasury Secretary John Whitehead said that the Briefing document "purposefully looks past the immediate financial and economic issues impacting on New Zealand and discusses what is required to lift the country’s economic performance and raise living standards over the medium to long term." The briefing advances a number of initiatives, including tax and regulatory reform, raising skills and innovation levels, better international connectedness, fiscal management and improved public sector performance. Treasury's position on capital gains tax and reductions in superannuation has been emphatically rejected, inviting questions from the Opposition on what precisely the Government will do to promote productivity. It is a rebuff that Whitehead is no stranger to and one that he has taken in his stride. He intends to speak further about Treasury's updated view of the current economic situation before the release of the BPS later this month. The Briefing can be found at: http://www.beehive.govt.nz/sites/all/files/Treasury_BIM_0.pdf .
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Bills Introduced /Awaiting First ReadingTaxation (Urgent Measures and Annual Rates) Bill This Bill gives effect to the taxation and Kiwisaver changes foreshadowed in National's general election campaign, including:
The Bill received its first reading under urgency. Employment Relations Amendment Bill This Bill amends the Employment Relations Act 2000 to implement Government policy on trial employment periods for new employees of small and medium sized businesses, and to support Government policy on KiwiSaver that is being enacted through amendments to the KiwiSaver Act 2006. The Bill is being read under urgency. Bills reinstatedThe following Bills that lapsed with the dissolution of the 48th Parliament have been reinstated: Alcohol Advisory Council Amendment Bill RegulationsExcise and Excise-equivalent Duties (Tobacco Products Indexation) Amendment Order 2008
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Whats New
Whats New
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© Russell McVeagh 2005. All rights reserved.