NEWS ON POLICY
AND POLITICS |
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A MATTER OF OPINION The New Year - a Fresh Start on Old Habits? Tauranga, Mon amour Water, Water Everywhere… IN OTHER NEWS Medicines Strategy Released Housing Affordability PROGRESS OF LEGISLATION Bills Introduced/Awaiting First Reading more... Bills At Select Committee more... Bills Reported Back/Awaiting Second Reading more... Bills Delayed more... Bills Passed Second Reading more... Supplementary Order Papers more... Bills Passed more... Acts Assented more... Regulations more... Hearings of Note more... Limitation Defences Bill Re-write of Police Act Amendments to the Motor Vehicle Sales Act Insurance Contracts Bill Interest on Money Claims Bill more... IN CONSULTATION more...
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| A MATTER OF OPINION | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The New Year - a Fresh Start on Old Habits?As 2007 gets left behind there is much the Labour-led Government would hope to leave behind with it, not least its poor showing in the polls. With the year's running average showing Labour a consistent 15 percentage points behind National, the Party's strategists will be relying on targeted tax cuts and the electorate's green consciousness to make up lost ground. What seems doubtful though is whether strategically targeted election policies will be the yardstick against which the administration will be judged. The more telling measure may in fact be one of attitude, not something repaired by one or two well-timed policy tweaks, no matter how finely judged. Perceptions of arrogance and bullying have been reinforced by a succession of political missteps, ill-judged attacks on public servants and a determination to cap the year off by enacting the highly unpopular Electoral Finance Bill. Ministers may have calculated that this latest government reform would not resonate outside Wellington's beltway, but the polls suggest otherwise. The unease felt by the capital's chattering classes has clearly reached a lot further than Labour expected it would. It is an unease that will outlive 2007. Absent a material change in the style as well as its substance of the administration, it is one that will attach itself to everything that the Government says or does from here on in. Accordingly, 2008 can be expected to present a real test of the Prime Minister's leadership and her capacity to maintain the rigid internal discipline that has served Labour so well up to now. Even that may not be enough. Another bad poll in the New Year and reinforced expectations of an election loss could well see Government backbenchers pushing for Labour's longer term agenda to be advanced, something that will not sit well with an incrementalist Prime Minister or an already disenchanted electorate. The risk that Labour will begin to cannibalise the support of its coalition and support parties will also become more real, eroding one of the main advantages the Party has enjoyed over National in the last three elections. Labour can afford none of these things. Nor can it afford an approach to the New Year that suggests it is simply making a fresh start on old habits. Tauranga, Mon AmourAbsent an electorate seat, New Zealand First may well turn out to be the biggest loser in next year's general election. With its polling falling consistently below the 5% threshold and the low political return on initiatives such as the 'Gold Card' and the ill-judged 'donation' of unpaid election funds to Starship Children's Hospital, chances of a return look slim. Also doubtful is whether the Party will survive the twin blows of an election defeat and any consequent departure of Party leader Winston Peters, who will presumably have better things to do than administer the Party from the political wilderness. However, writing Mr Peters off is never a good idea and Tauranga offers at least one opportunity for his return to the political fray post 2008. Standing in his way is the locally popular Bob Clarkson. But what isn't yet certain is whether Bob will make the running. Life as a backbencher is never thrilling and if you're someone used to running things it can be a frustrating affair. Both keen and knowledgeable about construction, Clarkson may be happier if there is a reasonable prospect of the junior portfolio dealing with building issues. But even that may not be enough. With a majority of only 730, Clarkson and National are vulnerable. In other circumstances the prize of the electorate seat would be well-within Winston Peters' reach. Those 'other circumstances' though may well prove too much for a Peters charm offensive. His Tauranga electorate committee is openly unhappy about their leader's support for the Electorate Finance Bill and the threatened withdrawal of not insignificant support from the Sensible Sentencing Trust for the same reason will make for heavy going. Much will hinge on Tauranga. Water, Water Everywhere…Government may be reluctant to grapple with the problems of water allocation in an election year, but a dry summer and additional pressure on already strained catchments will ensure that water policy remains a live issue throughout 2008. Headlines such as 'Water warning as usage rockets' (Marlborough Express), 'Region in for very parched summer' (Wairarapa Times-Age) and 'Water scheme gets big push' (Stuff) are familiar enough. But if the forecasters are right they will be even more so, underscoring not only the problem of water scarcity, but also the growing difficulty of reconciling the interests of existing and aspirational water users. The tendency to see water as an infinite resource, to which private interests should have largely unfettered access, is an abiding one. However, proliferating uses and increasing demand have combined with New Zealand's so-called dry years to bring personal and public interest into relief and sometimes open conflict. The Sustainable Water Programme of Action has been the government's response. Intended to provide greater central government leadership in water management, SWAPA began hopefully enough. However, since the initial round of regional hui and consultation of 2004, the programme has become mired in resource limitations of its own and, more tellingly, the problem of managing and disposing of customary and other use rights. Labelled by its critics as the 'Sustainable Water Programme of Inaction' SWPA has fallen victim to the realpolitik of managing a Maori constituency already tested by what it sees as the assertion of a public domain over its interests in the foreshore and seabed. The fight - for so it is shaping up to be - is not just one for Maori. Rural users and, indeed, anyone whose existing or potential water rights are likely to be impinged upon can be expected to join the fray. It's a fight that Government will be keen to avoid, particularly when trailing so far in the polls. But having staked its political fortunes of being the government of sustainability, Government cannot be seen to pick and choose where it shows its leadership. A falling aquifer in Canterbury is more immediate than a one degree increase in mean temperature in 80 years and one that is unlikely to be so easily deferred.
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Medicines Strategy ReleasedAssociate Health Minister, Hon Peter Dunne released Medicines New Zealand, described as "a bold new strategy to guide the future access to, and use of, prescription medicines by all New Zealanders." Medicines New Zealand and the associated implementation plan can be found at the following web addresses: Actioning Medicines New Zealand Summary of Submissions on Towards a New Zealand Medicine Strategy Up and ComingIn the last Cabinet meeting for the year approval was given to:
Housing AffordabilityThe Enabling Territorial Authorities Bill was introduced into Parliament this month with the intention of providing a solution to the problem of housing affordability. The Bill enables a territorial authority to assess the level of affordable housing in its district, and, if it wishes, develop an affordable housing policy. Under the Bill, territorial authorities will have much discretion when developing affordable housing policies, including the ability to require developments that meet certain criteria to:
The territorial authority can also require the developer to pay land or money to the territorial authority. The Bill voids covenants whose principal purpose is to stop the provision of affordable housing or social housing. The Minister of Housing, Hon Maryann Street, says the Bill aims to create more choice and opportunity for families by giving councils the flexibility to promote a wider variety of house sizes, ownership models, and costs in the new home market: “Although we are building a large number of new homes each year in New Zealand, very few have been designed for, or targeted at, first-time buyers or modest-income families." The Property Council has argued that the Bill is unlikely to be effective and the cost will be passed on to other homebuyers: "If the government wants 10 per cent of new housing to be designated as 'affordable housing', the cost of that output will have to be picked up by the other 90 per cent of new homeowners, who will experience further price increases in order to subsidise the lucky few". Certainly the compliance costs for territorial authorities and developers alike will be high and the process is likely to be a long one for those waiting for their first home. The Bill will be considered by the Local Government and Environment Committee. Submissions are due on 29 February 2008. The Committee's report back is due on 10 June 2008.
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PROGRESS OF LEGISLATION |
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Bills Introduced/Awaiting First ReadingAlcohol Advisory Council Amendment Bill This Alcohol Advisory Council Amendment Bill amends the Alcohol Advisory Council Act 1976 to update and simplify the current mechanisms for setting the Alcohol Advisory Council levy. The Alcohol Advisory Council is funded by a levy on all alcoholic beverages manufactured in or imported into New Zealand. "The Alcohol Advisory Council Amendment Bill will see separate levies retained for different alcoholic beverages but current categories will be replaced with a system based on alcohol classification bands. Alcoholic beverages with a higher volume of alcohol will contribute a higher proportion to the levy," said Mr O'Connor, Associate Health Minister. Further, Mr O'Connor has stated that the revised levy-setting provisions for the ALAC levy should not affect the price that consumers currently pay for alcoholic beverages but may influence the proportion that each type of alcoholic beverage contributes towards the ALAC levy. Appropriation (2006/07 Financial Review) Bill This Appropriation (2006/07 Financial Review) Bill confirms the Public Finance (Transfers Between Outputs) Order 2007, confirms expenses incurred for the 2006/07 financial year in excess but within the scope of an existing appropriation and validates unappropriated expenses and capital expenditure incurred for the 2006-07 financial year that were in excess of an existing appropriation, or without appropriation, by or under an Act of Parliament. Customs and Excise Amendment Bill (No 3) This Customs and Excise Amendment Bill amends the Customs and Excise Act 1996. The Bill's purpose is to enhance statutory appeal and review rights in relation to the forfeiture and seizure regime contained in Part 14 of the Act, provide greater flexibility for Customs to deal with ad hoc arrivals and departures and to remedy legislative inconsistencies relating to the illegal manufacture of tobacco. Electricity Industry Reform Amendment Bill The purpose of the Electricity Industry Reform Amendment Bill is to address the issues that discourage lines companies from investing in renewable generation while retaining key restrictions on cross-involvement. It achieves this through three main policy changes.
Financial Advisers Bill The Financial Advisers Bill establishes a co-regulatory regime for financial advisers, where the Securities Commission and industry-based approved professional bodies will work together to create and monitor standards for financial advisers. Financial Service Providers (Registration and Dispute Resolution) Bill This Financial Service Providers (Registration and Dispute Resolution) Bill aims to contribute to the promotion of confidence and participation in financial markets by investors and institutions, and to promote a sound and efficient non-banking financial sector. The proposed financial services provider registration system, as it currently stands in the Bill, will:
According to the Bill's sponsor, Commerce Minister Lianne Dalziel, "[a]n important feature of the Bill is that it will provide consumers with a simple, low-cost avenue for redress when they have a complaint". Māori Trustee and Māori Development Amendment Bill This Māori Trustee and Māori Development Amendment Bill introduces changes arising out of a review of the Māori Trustee and Māori Trust Office and out of work looking at ways to bring together functions supporting Māori business being undertaken by Te Puni Kokiri, the Māori Trustee, and potentially other organisations. The Bill aims to make the Māori Trustee and Maori Trust Office an independent, statutory body in its own right and brings together functions supporting Maori business currently being undertaken by Te Puni Kokiri, the Māori Trustee and potentially other organisations. The Bill also amends the title of the Māori Trustee Act 1953 to the Māori Trustee and Māori Development Act 1953 to better reflect the amendments. Māori Purposes Bill (No 2) This Māori Purposes Bill (No 2) is an omnibus bill amending four existing pieces of legislation relating to Māori Affairs matters: the Maniapoto Māori Trust Board Act 1988, the Māori Trust Boards Act 1955, the Treaty of Waitangi Act 1975 and Te Ture Whenua Māori Act 1993. The amendments are mostly minor in nature and appear to remedy errors in the existing legislation. Bills At Select CommitteeSeveral Bills have received last minute readings for the first time and have been allocated to various Select Committees including:
This Bill was briefly summarised in our previous edition of Watching Brief. The purpose of the Bill is to continue the Government's commitment to a sustainable ACC scheme for reducing the incidence and impact of personal injury. In the interest of completeness we note that this Bill is highly technical and the substantive amendments include:
Open For Submissions
Bills Reported Back/Awaiting Second ReadingLimited Partnerships Bill Bills DelayedNone Bills Passed Second ReadingTaxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters) Bill. Second Reading NegativedNone Supplementary Order PapersSOP 171: Dairy Industry Restructuring Amendment Bill (No 2) This SOP makes a minor drafting amendment to clauses 10 and 14 of the Dairy Industry Restructuring Amendment Bill (No 2). The amendments omit "over" and substitute "at" in the phrase "trade over the normal tariff". SOP 170: Electoral Finance Bill This SOP amends the Electoral Finance Bill to insert a new subpart 1A in Part 3. Subpart 1A establishes an Independent Review Panel to:
The public participation process consists of a Citizen's Assembly to give an independent and representative view on the financing of election campaigns and improving transparency and accountability of candidates, parties and other persons engaged in election activities. SOP 169: Taxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters Bill This SOP splits the Taxation (Annual Rates, Savings Investment, and Miscellaneous Provisions) Bill into 3 bills including:
SOP 168: Taxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters Bill The SOP 168 amends the Taxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters) Bill by:
SOP 167: Taxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters Bill This SOP amends the Taxation (Annual Rates, Savings Investment, and Miscellaneous Provisions) Bill. The main substantive amendments relate to the KiwiSaver scheme, an amended definition of finance lease, and tax relief for redundancy payments. There are also miscellaneous remedial amendments and drafting corrections relating to PIE rules, overseas portfolio investment rules, retirement scheme contributions rules, and tax penalty provisions. SOP 166: Electoral Finance Bill This SOP amends the Electoral Finance Bill to make it more workable and attempt to ensure that the legislation that New Zealanders are subject to during next year's general election is clear and understandable. One of the key planks of democracy is that all citizens are free to express themselves on all political issues. They are free to criticize the Government and the ZOpposition. These amendments go as far as is possible within the framework of the existing Bill to try to ensure that these principles are at least partially adhered to. In particular the amendments focus on clarifying key definitions (such as "publish" and "electoral advertisement"), placing fairer limits on those participating in the democratic process, and ensuring that liability is fairly identified and properly enforced. This SOP creates a new regime by providing for the indexation of the spending and donation caps contained in the legislation, as suggested by the Electoral Commission and currently the practice in Australia. A companion SOP creates a new enforcement regime. SOP 165: Electoral Finance Bill This SOP amends the Electoral Finance Bill by inserting New Part 2A to provide for an independent Chief Electoral Prosecutor to be responsible for prosecutions relating to electoral finance, rather than this responsibility being that of the Police. The Chief Electoral Prosecutor is to be appointed by the Governor-General on the advice of the Attorney-General and the Chief Executive of the Electoral Commission. SOP 164: Electoral Finance Bill This SOP divides the Electoral Finance Bill into three Bills including the:
SOP 163: Electoral Finance Bill This SOP amends the Electoral Finance Bill:
SOP 162: Electoral Finance Bill This SOP makes several key amendments to the Electoral Finance Bill which include:
Bills PassedDairy Industry Restructuring Amendment Bill (No 2) Acts AssentedNone RegulationsCompanies Amendment Act (No 2) 2006 Commencement Order (No 2) 2007 Hearings Of NoteThe Local Government and Environment Committee continues to hear evidence on the Waste Minimisation (Solids) Bill (submissions focus on the new SOP). The Transport and Industrial Relations Committee continues to hear submissions on the Immigration Bill. Recent submitters have included Ahmed Zaoui's lawyers, Deborah Manning and Richard McLeod, and the Human Rights Commission. The Government Administration Committee continues to hear submissions on the Gambling Bill.
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Limitation Defences Bill The Law Commission has released an exposure draft of a Limitation Defences Bill. Sir Geoffrey Palmer has described the Bill as follows: "The Bill will provide the basis for a modern comprehensive statute that contains clearer and more accessible rules about the periods within which claims must be filed in the courts. It is designed to balance the rights of claimants and the rights of defendants and bring the law up to date. The Courts have been crying out for Parliament to deal with the subject for years." Major re-write of Police Act Cabinet has approved a major re-write of the Police Act. A Bill is now ready for introduction following consultation. Amendments to the Motor Vehicle Sales Act Cabinet has approved amendments to the Motor Vehicle Sales Act. The amendments are designed to reduce compliance costs. Other Bills to be introduced Cabinet has approved policy for the following Bills:
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IN CONSULTATION |
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LinksThis
publication is intended only to provide a summary of the subject
covered. It does not purport to be comprehensive or to provide legal
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:
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© Russell McVeagh 2005. All rights reserved.