NEWS ON POLICY AND POLITICS
12 September, 2007


Watching Brief is a regular publication from Russell McVeagh on developments in public law and policy of interest to New Zealand business.

www.russellmcveagh.com

IN POLITICS

Emissions trading regime a flagship for Labour's fortunes?
The Prime Minister's opening address to Parliament this year left no doubt that the government intended to hang its hat on all things Green. more...

IN OTHER NEWS

Sydney Declaration on Climate Change and Energy
The Sydney Declaration on Climate Change and Energy was the major outcome of this week's APEC summit. more...

Final report issued for Quality Regulation Review
Commerce Minister Lianne Dalziel has announced the final report of a 15-month Quality Regulation Review to address regulatory barriers to business growth. more...

Official Information Bill lost on second reading
The Official Information (Openness of District Health Boards New Zealand) Amendment Bill failed to survive its second reading. more...

IN PARLIAMENT

Bills Introduced more...

Before Select Committee

Open for submissions more...
Submissions closed more...

Delayed more...

Bills Reported Back / Awaiting Second Reading more...

Bills Passed Second Reading more...

Supplementary Order Papers more...

SOP 144: Aviation Security Legislation Bill
SOP 143: Copyright (New Technologies) Amendment Bill
SOP 139: Taxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters) Bill
SOP 140: Aviation Security Legislation Bill
SOP 116: Independent Police Complaints Authority Amendment Bill

Bills Passed more...

Acts Assented more...

Regulations more...

HEARINGS OF NOTE more...

LEGISLATION IN THE WINGS more...

IN CONSULTATION more...

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What's New
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Current

IN POLITICS

Emissions trading regime a flagship for Labour's fortunes?

The Prime Minister's opening address to Parliament this year left no doubt that the government intended to hang its hat on all things green.  Since then, a small sustainability industry has been spawned within Wellington's bureaucracy and the resources of several core ministries have been bent upon the design and development of an emissions trading regime.

The timing of any announcement about the scope and shape of the new scheme is closely guarded. But this and the fact that several Ministers have been involved in the decision making are a reliable indication that the scheme will be significant and very probably the flagship of Labour's efforts to restore itself in the eyes of disaffected voters. 

Minister Parker's comments at a recent climate change conference in Wellington were consistent with that and the inference can be drawn that government intends to deal not only with carbon emissions, but also all other greenhouse gases.

That will be ambitious. The Europeans have found the development of a carbon trading system complex enough and the concern here will have to be whether the government might bite off more than it can chew. Parker's undisguised enthusiasm for what's in the wings might play politically, but both he and the government will take a severe knock if the proposed scheme is not practicable, particularly within the limited timeframes available.

As to when all will be revealed, it remains anyone's guess. However, with the Prime Minister freshly back from APEC and allowing time for any tweaking that might be required as a result of the Sydney declaration, late next week seems a reasonable bet. At the very least the government will want this particular rabbit pulled from the hat well before the Labour Party conference at the beginning of November.

 

IN OTHER NEWS

Sydney Declaration On Climate Change And Energy

The Sydney Declaration on Climate Change and Energy was the major outcome of this week's APEC summit.  John Howard highlighted the significance of the agreement in uniting major polluters under one "aspirational" emissions reduction goal.  However, environmental organisations have criticised the Declaration as being a "distraction" from the UN process.
                       
The Sydney Declaration centres on an APEC-wide "aspirational goal" to reduce energy intensity by 25% by 2030 (with 2005 as the base year).  This contrasts with a recent meeting in Vienna, where 175 nations party to the Kyoto Protocol discussed 25-40% emissions reductions by 2020 (with 1990 as the base year) for industrialised nations.  The Sydney Declaration's target has been criticised both for being non-binding, and for referring to energy intensity rather than emissions in absolute terms.  The Sydney Declaration also contains a goal to increase forest cover in the region by 20 million hectares of all types of forests by 2020.  However, the reference to "all types of forests" has caused concerns, because it fails to prevent logging of old-growth indigenous forests and replacement with plantations.

Though the Sydney Declaration's aspirational goals contrasted with talks in Vienna, APEC leaders reaffirmed their commitment to the UN process for a post-2012 international agreement.  Momentum is building for the December UN Framework Convention on Climate Change talks in Bali, Indonesia.

Final Report Issued For Quality Regulation Review

Commerce Minister Lianne Dalziel has announced the final report of a 15-month Quality Regulation Review to address regulatory barriers to business growth. The Review has resulted in a long list of small changes, with no large amendments to the pieces of legislation that many had hoped would be focussed upon, such as the Holidays Act, Health and Safety in Employment Act, or the Employment Relations Act - all issues raised by businesses through the Business Consultation Website and the interviews carried out in the horticulture, hospitality, retail and wine industries.

Several changes are being or have already been made to the government's policy process, such as changes to the regulatory impact analysis requirements, the introduction of the business cost calculator, and new guidance for policy makers on regulatory flexibility and enforcement.

The government also has several initiatives planned over the short and medium terms. They are:

  • annual sector studies, which may focus on a sector, rule, or piece of legislation;
  • a study into the feasibility of Standard Business Reporting (where businesses can submit financial information to all relevant government agencies in one transaction) and a Centralised Information Repository (which would allow all information to be submitted to one place and then relayed to government agencies);
  • continued availability of the Business Consultation Database as an avenue through which businesses can raise issues with regulation.

The government's objectives for the ongoing improvement of regulation are:

  • ensuring the quality of new regulation;
  • improving the quality of existing regulation;
  • developing a culture of good regulatory practice; and
  • building the capability of regulators and of business.

Official Information Bill Lost On Second Reading

The Official Information (Openness of District Health Boards New Zealand) Amendment Bill failed to survive its second reading. Intended to subject DHBNZ to the Official Information Act, the Bill had a relatively uncontentious passage through Select Committee and had the support of the Opposition. Government elected to vote against the Bill asserting that there regulatory means of achieving the same effect as the primary legislation.  According to Health Minister Hon Pete Hodgson, a relevant Order in Council was assented to on 9 July, before the Select Committee reported back to the House.

 

IN PARLIAMENT

Bills Introduced

Securities (Local Authority Exemption) Amendment Bill
Type of Bill: Government
Member in Charge: Hon Lianne Dalziel

This Bill amends the Securities Act 1978 with the intention of providing local authorities with an exemption from the full disclosure requirements of that Act when issuing debt securities to the public. This reduced disclosure requirement will exempt local authorities from the requirement to produce a prospectus signed by all councilors when issuing debt securities to the public.

Auckland Regional Amenities Funding Bill
Type of Bill: Private
Member in Charge: Hon Judith Tizard

This Bill is intended to establish a statutory framework for the secure and sustainable funding of particular organisations that provide arts, educational, rescue or other community facilities or services that have been identified by the public as being vital for the Auckland region.

Bills Before Select Committee

Dairy Industry Restructuring Amendment Bill (No 2)
Gambling Amendment Bill (No 2)
Immigration Bill
Limited Partnerships Bill

Open For Submissions

Bill Select committee Submissions close Report due
Broadcasting Amendment Bill Commerce Submissions not yet called 5 March 2008
Dairy Industry Restructuring Amendment Bill (No 2) Primary Production 14 September 31 October
Electricity (Disconnection and Low Fixed Charges) Amendment Bill Commerce 21 September 7 February 2008
Family Court Matters Bill Social Services 29 October 3 March 2008
Gambling Amendment Bill Government Administration 12 October 21 February 2008
Immigration Bill Transport & Industrial Relations 12 October 15 February 2008
Limited Partnerships Bill Commerce 5 October 3 December
New Zealand Geographic Board (Nga Pou Taunaha o Aotearoa) Bill Govt Admin 21 September 7 February 2008
Social Assistance (Debt Prevention and Minimisation) Amendment Bill Social Services 24 September 7 February 2008


Submissions Closed

Bill Select committee Report due
Airport Authorities (Sale to the Crown) Amendment Bill Transport & Industrial Relations Committee

31 October

Arms Amendment Bill (No. 3) Law & Order 28 September
Births, Deaths, Marriages, and Relationships Registration Amendment Bill Govt Administration 31 October
Building Amendment Bill Social Services 5 November
Corrections (Mothers With Babies) Amendment Bill* Law & Order 21 November
Criminal Proceeds (Recovery) Bill Law & Order 26 October
Education (Tertiary Reforms) Amendment Bill Education & Science 8 November
Electoral Finance Bill Justice and Electoral 25 January 2008
Fisheries Act 1996 Amendment Bill Primary Production 2 November
Human Tissue Bill Health 1 October
Human Tissue (Organ Donation) Amendment Bill Health 1 October
Marine Reserves (Consultation with Stakeholders) Amendment Bill Local Govt & Environment 14 December
Marine Reserves Bill Local Govt & Environment 14 December
Minimum Wage and Remuneration Amendment Bill Transport & Industrial Relations 12 October
Overseas Investment (Queen's Chain Extension) Amendment Bill Local Government & Environment 14 December
Palmerston North Reserves Empowering Amendment Bill Local Government & Environment 27 September
Porirua City Council (Pauatahanui Burial Ground) Bill Local Government & Environment 16 January 2008
Principles of the Treaty of Waitangi Deletion Bill Justice & Electoral 21 December
Regulatory Responsibility Bill Commerce 16 January 2008
Resource Management (Climate Protection) Amendment Bill Local Government & Environment 1 November
Sale of Liquor (Youth Alcohol Harm Reduction) Amendment Bill
Law & Order 20 October
Taxation (Annual Rates, Business Taxation, Kiwisaver and Remedial Matters) Bill Finance & Expenditure 16 November
Terrorism Suppression Amendment Bill Foreign Affairs, Defence & Trade 28 September
Treaty of Waitangi (Removal of Conflict of Interest) Amendment Bill Justice & Electoral 16 January 2008
Waste Minimisation (Solids) Bill Local Govt & Environment 31 October
Young Offenders (Serious Crimes) Bill Law & Order 30 November

Bills Delayed

The report back dates for the following Bills have been delayed:

  • Arms Amendment Bill (No 3) now to be reported back on 30 November;
  • Minimum Wage and Remuneration Amendment Bill now to be reported back on 12 October; and
  • Young Offenders (Serious Crimes) Bill now to be reported back on 30 November.

Bills Reported Back / Awaiting Second Reading

Armed Forces Law Reform Bill
Crimes (Repeal of Seditious Offences) Amendment Bill
International Finance Agreements Amendment Bill
NZ Bill of Rights (Private Property Rights) Amendment Bill

Bills Passed Second Reading

Aviation Security Legislation Bill
Employment Relations (Flexible Working Hours) Amendment Bill
Statutes Amendment Bill

Supplementary Order Papers

SOP 144: Aviation Security Legislation Bill
Member: Hon Harry Duynhoven
Type: Substantive

This SOP divides the Aviation Security Legislation Bill into the following two Bills:

  • The Aviation Crimes Amendment Bill; and
  • The Civil Aviation Amendment Bill.

SOP 143: Copyright (New Technologies) Amendment Bill
Other Member:  Gordon Copeland
Type: Substantive

This SOP amends the Copyright Act 1994 to replace section 88 of that Act with a new provision that also permits the satellite retransmission of free-to-air television broadcasts.  Further, the SOP makes some consequential amendments to sections 148 and 189 of the Copyright Act 1994.

SOP 139: Taxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters) Bill
Member: Hon Peter Dunne
Type: Substantive

This SOP amends the Taxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters) Bill.  It contains an amendment to the KiwiSaver Act 2006 to require KiwiSaver and complying fund providers to disclose their approach to responsible investment, effective on and from 1 April 2008.

SOP 140: Aviation Security Legislation Bill
Member: Hon Harry Duynhoven
Type: Substantive

This SOP seeks to amend the Aviation Security Legislation Bill.  The amendment to clause 6: new section 12 inserts new subsection (5B), which clarifies that with respect to a person searched under new section 12(1), a member of the police, an aviation officer, a Customs officer, or an agent of the carrier authorised by the carrier for the purpose may not use an aid or device that produces an unclothed image of the person.

SOP 116: Independent Police Complaints Authority Amendment Bill
Member in Charge: Hon Mark Burton
Type: Substantive

This SOP amends the Independent Police Complaints Authority Amendment Bill, primarily in order to align the provisions of the Bill with the legislative changes made by the Crown Entities Act 2004. And to give effect to the recommendations in the Report of the Commission of Inquiry into Police Conduct issued in March 2007.

We note that the name of the Police Complaints Authority is to be changed to the Independent Police Conduct Authority.  Therefore, the names of the principal Act and the Bill are amended accordingly. 

Bills Passed

Independent Police Conduct Authority Amendment Bill
Minimum Wage (New Entrants) Amendment Bill

Acts Assented

Building (Consent Authorities) Amendment Act 2007
Farmers' Mutual Group Act 2007
Major Events Management Act 2007
Weathertight Homes Resolution Services (Remedies) Amendment Act 2007
Wills Act 2007

Regulations

Land Transport (Offences and Penalties) Amendment Regulations (No 2) 2007
Securities Act (Contributory Mortgage Brokers) Exemption Amendment Notice 2007
Land Transport (Road User) Amendment Rule 2007
Securities Act (ING Real Living (Holdings) Limited) Exemption Notice 2007
Dairy Industry Restructuring (Raw Milk) Amendment Regulations 2007
Fisheries (Transfer of Functions, Duties, and Powers to The New Zealand Seafood Industry Council Limited) Amendment Order 2007
Fisheries (Cost Recovery Levies for Fisheries Services) Order 2007
Fisheries (Cost Recovery Levies for Conservation Services) Order 2007
Fisheries (Southland and Sub-Antarctic Areas Amateur Fishing) Amendment Regulations (No 3) 2007
Fisheries (Reporting) Amendment Regulations (No 4) 2007
Fisheries (South-East Area Amateur Fishing) Amendment Regulations (No 2) 2007
Fisheries (South-East Area Commercial Fishing) Amendment Regulations 2007
Fisheries (Infringement Offences) Amendment Regulations (No 2) 2007
Fisheries (Registers) Amendment Regulations 2007
Fisheries (Commercial Fishing) Amendment Regulations (No 2) 2007
Student Allowances Amendment Regulations (No 2) 2007
Sentencing Amendment Act 2007 Commencement Order 2007
Sentencing Amendment Regulations 2007
Parole Amendment Act 2007 Commencement Order 2007
Parole Amendment Regulations 2007
Bail Amendment Act 2007 Commencement Order 2007
Corrections Amendment Regulations (No 3) 2007
Electoral Amendment Regulations 2007
Land Transfer Amendment Regulations (No 2) 2007
Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations (No 2) 2007
Securities Act (Five Mile Holdings Limited) Exemption Notice 2007
Securities Act (One Riccarton Road Limited) Exemption Notice 2007

 

HEARINGS OF NOTE

The Commerce Select Committee began its consideration of Rodney Hide's Regulatory Responsibility Bill.  The Law Commission agreed that there are problems with the current situation, but advised that the Bill is not a suitable solution.  The Law Commission suggested the alternative could be that regulatory impact analysis is undertaken at the front end of the policy development process, rather than at the end.  The New Zealand Institute of Chartered Accountants also suggested that alternatives to the Bill should be considered.  On the other hand, the New Zealand Chambers of Commerce voiced support for the Bill, and Business New Zealand sees the Bill as a step in the right direction (albeit with some amendments). 

The Justice and Electoral Select Committee commenced its consideration of the controversial Electoral Finance Bill. Submitters voiced some strong concerns, stating that the Bill "smacks of tyranny", it adopts "a scattergun approach" to electoral issues, and the Bill is a "regressive" piece of legislation.

The Primary Production Select Committee received a report from the Lincoln University Professor Caroline Saunders on "Comparative Energy and Greenhouse Gas Emissions of New Zealand's and the UK's Dairy Industry".  This research focused on the current 'food miles' issue in respect of carbon emissions produced as a result of New Zealand exporting products overseas to the European market.

 

LEGISLATION IN THE WINGS

Business Regulation Review
Commerce Minister, Hon Lianne Dalziel, has announced fast-track legislation is to be introduced to fix anomalies found in a number of existing regulations (Cabinet has approved an omnibus Regulatory Improvement Bill).  The anomalies were identified as part of the recent Quality Regulation Review.

PIE Tax Loopholes
The Government will act quickly to close loopholes in the tax rules on portfolio investment entities (PIE) to prevent their use by land-owning companies seeking tax advantages for their shareholders.  The new rules are set to come into force on 1 October 2007.  The Ministers of Finance and Revenue have stated the loopholes will be shut down as soon as possible, with legislation introduced at the earliest opportunity in the next few weeks.

Land Transport Bill
Cabinet has approved the Land Transport Bill for introduction.

New Police Regulations
The Government has signed off on proposed regulations for the Police which will enable the New Zealand Police to implement a new Code of Conduct for all staff by 1 January 2008.  The proposed regulations are currently being drafted into legislation.

 

IN CONSULTATION

What's New

AGENCY ISSUE SUBMISSIONS CLOSE ON...
(2007)
Building & Housing, Dept of Compliance Standards For Solar Water Installation 26 September
Conservation, Dept of

Marine Protected Areas Policy and Implementation Plan;

MPA Protection Standard and Classification System

Draft Hector's and Maui's dolphin Threat Management Plan

Westland Tai Poutini National Park Management Plan Amendment

Seal lion Population Management Plan;

Species Management Plan

30 September

30 September

24 October

26 October

 

29 October

29 October
Economic Development, Min of

Review of Section 62 of the Electricity Act 1992 "Continuance of Supply"

Telecommunications Service Obligations Regulatory Framework

Proposed changes to minimum flow regimes in Canterbury rivers

23 September

 

29 September

 

5 October
Electricity Commission Electricity Market Compliance Framework Review 1 October
Fisheries, Min of

Operational plan for the 2007-08 squid fishery operating around the Auckland Islands

Letter to Interested Parties (Kaimoana regulations for North Island); Kaimoana Regulatory Impact Statement

1 October

 

23 November
Food Standards Authority NZ Amendments to animal products regulations (export exemptions, offences and game estates) 28 September
Intellectual Property Office Broad Specifications - Trade Mark Practice Guidelines 30 September
IRD GST - Lottery operators and promoters 31 October
Land Information NZ Cadastral survey options for creation & editing of survey & title plans in Landonline 28 September
Standards NZ Medical Laboratories - Particular requirements for quality and competence 18 September



Current

RELEASED BY... ISSUE SUBMISSIONS CLOSE ON...
Building and Housing, Dept of Building Code Review 2007

28 September

Conservation, Dept of Draft West Coast Te Tai o Poutini Conservation Management Strategy 5 October
Economic Development, Ministry of

Radio Frequency Auction: 2.3 GHz and 2.5 GHz Bands

Improving regulation of environmental effects in NZ’s Exclusive Economic Zone

Bioprospecting - Harnessing Benefits for NZ: A Policy Framework Discussion

14 September

30 September

 

12 October
Education, Min of Ka Hikitia - Managing for Success: The draft Māori Education Strategy 2008-2012 31 October
Electricity Commission Disclosure of risk management contract information 21 September
Environment, Min of Improving regulation of environmental effects in NZ’s Exclusive Economic Zone 30 September
Food Standards Australia NZ Asparaginase as a processing aid; Use of nisin in processed meat products; Food derived from glyphosate-tolerant soybean MON 89788; Agarose ion-exchange resin as a processing aid for beer 19 September
Health, Min of Review of the Health and Disability Services (Safety) Act 2001 21 September
IRD GST - apportioning supplies 30 September
Land Transport NZ Draft Land Transport Rule: Omnibus Amendment 2007 14 September
Law Commission Further Reform of Habeas Corpus Procedure 17 September
Social Development, Ministry of Carers' Strategy for NZ 14 September
Standards NZ Glazing in public buildings - Part 1; and Glazing - Part 4 (weather conditions) 14 September

 


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