NEWS ON POLICY
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This is the last watching Brief for the 2008. With some relief, we put down our quills until 10 February when the 49th Parliament resumes. Our thanks for your constructive feedback during the year. It has been appreciated. Have a safe and happy holiday season. IN POLITICS National's enthusiasm for passing legislation through urgency in the weeks before Christmas has been mirrored by a return to cheerfully acerbic form by former Finance Minister, Michael Cullen. more... IN PARLIAMENT 2009 Parliamentary Sitting Programme Recommendation Select Committees membership decided IN OTHER NEWS Treasury Secretary speaks to Auckland business forum more... PROGRESS OF LEGISLATION Headlines Biofuel Obligation repealed Bills Before Select Committees more... Bills Passed Third Reading more... Acts Assented more... Regulations more... IN CONSULTATION more...
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National's enthusiasm for passing legislation through urgency in the weeks before Christmas has been mirrored by a return to cheerfully acerbic form by former Finance Minister, Michael Cullen. Exposing weaknesses in the Government's command of the Standing Orders - as well as its Pavlovian tendency to refer to Opposition members as Minister - Cullen gave Labour a narrow points victory in the House. That margin ought to have been greater. National's determination to advance legislation without proper scrutiny and the perceived erosion of New Zealand's Green credentials has left it exposed. But just as Minister's found answering Parliamentary Questions difficult, so too did the Opposition in asking them. Opportunities went begging and it repeatedly fell to an avuncular Dr Cullen to coach members on both side of the House and, on occasion, the Speaker himself on what to do and how. Away from the debating chamber, though, it was a different story. The pre-Christmas round unequivocally went to Key. Expected to be tentative in his opening sallies as Prime Minister, he instead demonstrated both an easy command and some of the steel that his normally open and friendly manner belies. "He's someone who means business", as one senior Auckland executive observed - with all of the nuances of that assessment intended. But meaning business and bringing it off are not the same thing and Key will need all his steel and more if he is to lead a credible, long-term administration. In the face of the global economic crisis, fundamental structural weaknesses in the New Zealand economy, and difficult policy decisions in climate change and energy policies, his media honeymoon will not be the Indian summer enjoyed by the previous administration. Matters will not be helped by the land-mines left by erstwhile Government. Shortfalls in ACC funding, Treaty settlement commitments and unresolved issues of water ownership and allocation will make for Key and his front bench a difficult few months, if not years. Certainly, Key will need a level of energy and engagement from his front bench that will be demanding in its nature and conspicuous should it fall short. Nor are things likely to become any easier in Parliament. Sitting speaker Hon Dr Lockwood Smith will be a stickler in the chair and he can be expected to set the bar for Government responses during Question Time higher than was done by his predecessor. Margaret Wilson may have been content with Ministers peripherally 'addressing' a question posed of them, but Smith has already indicated he will not. Not a few on the Government benches would have been delighted that - when in Opposition - but they are likely to be less than thrilled as Ministers. Of course any difficulties for Government that may be posed by greater rigour from the chair will depend on the effectiveness of the Opposition's questions. Cullen's casual strength on attack contrasts with others on the Opposition front bench and early opportunities to score points off an inexperienced administration before the House rises for the year were lost. School is back, but no-one, with exception of the former head boy, seems comfortable with the rules. |
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2009 Parliamentary sitting programme RecommendationUnder Standing Order 78 the Business Committee has recommended the following sitting programme for 2009.
Select Committees membership decidedThe composition of the Select Committees for the 49th Parliament has been decided. The membership by Committee is: Commerce Education and Science Emissions Trading Scheme Review Finance and Expenditure Foreign Affairs, Defence and Trade Government Administration Health Justice and Electoral Law and Order Local Government and Environment Māori Affairs Primary Production Regulations Review Social Services Transport and Industrial Relations |
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Treasury Secretary speaks to Auckland business forumTreasury Secretary John Whitehead this week spoke to Auckland business leaders on the global financial crisis and the challenges faced by New Zealand at a briefing hosted by Russell McVeagh. The speech was as a precursor to Thursday's release of the Government’s Budget Policy Statement and the latest economic and fiscal forecasts, and covered the causes of the crisis, its expected impacts, and the local and international policy responses. Although a dire account of the international situation, Mr Whitehead's speech noted that the flexibility of New Zealand's economic framework meant that New Zealand is better placed than many to weather the storm. Low government debt levels, for example, allowed New Zealand the luxury to contemplate actions that others could not sustain. Mr Whitehead stressed that this favourable position could be quickly eroded and noted the importance of dealing with structural imbalances in the economy over the longer term. He also noted the need for greater engagement between the Treasury and the business community over the coming months and years. Mr Whitehead's speech is available on the Treasury website at: http://www.treasury.govt.nz/publications/media-speeches/speeches/globalcrisis Government resolved on economic courseThe Budget Policy Statement issued yesterday morning confirmed the grim situation foreshadowed by Treasury Secretary John Whitehead earlier this week. Commenting on the Statement, Finance Minister Bill English said that the Government's resolve to raise New Zealanders' incomes by improving productivity and economic growth had been strengthened. “We understand that 2009 and beyond will be tough for many New Zealanders, who will be anxious and concerned about their families, their businesses and the economy more generally. The coming year in particular will be very challenging for everyone," Mr English said. He added that “The economic and fiscal update shows the economy will benefit from a large fiscal impulse over the next two years totalling around 5% of GDP, or around $9 billion. This includes the 1 April tax cuts that were legislated for last week, the 1 October tax cuts, and the 2008 Budget. This will go some way towards cushioning families and businesses from the worst effects of the downturn." Mr English also noted that the Treasury’s forecasts of sharply increasing public sector debt and higher fiscal deficits over the next five years were outside the range the Government considered prudent. “While New Zealand has one of the lowest levels of Government gross debt and net debt in the OECD, the Treasury forecasts show that the Government will have to take action to bring debt levels back under control. The Government is committed to a range of effective policy responses to ensure the worst-case scenarios for debt and deficits will not happen.” However, in contrast to the policy responses elsewhere, the National-led Government has reaffirmed that it does not intend to make cuts to Government expenditure in an attempt to balance the books. "[This would] have a substantial impact on demand, would simply push the economy deeper into recession,” Mr English said. “We want to come out of this with an internationally competitive economy. We will do this in a way that is both fiscally responsible and provides New Zealanders with a solid platform to achieve higher and sustainable economic growth over the medium-term and beyond.” RMA reform group announcedEnvironment Minister Nick Smith has announced the composition of the RMA Technical Advisory Group to support the Government’s programme of reform of the Resource Management Act. The group will be chaired by barrister Alan Dormer Members will include Russell McVeagh partner Paul Majurey, environmental consultant Guy Salmon, Rodney Mayor Penny Webster, Tasman District Council Environment and Planning Manager Dennis Bush-King, barrister Michael Holm, planning consultant Michael Forster, and businessman and former Deputy Prime Minister Rt Hon Wyatt Creech. Dr Smith noted that “streamlining and simplifying the Resource Management Act is an important part of the new Government’s programme. The advisory group will be tasked with assisting in the drafting of the reform bill to be introduced to Parliament in February”. Climate change - political signals A total of seven paragraphs were devoted to climate change in last week's Speech from the Throne. Other priorities included meeting New Zealand's Kyoto Protocol obligations, balancing emission reductions with economic growth, seeking international recognition of New Zealand's unique emissions profile (dominated by livestock) and ensuring that our emission reductions are matched by other countries. The latter point is significant. It gives life to National's stated intention during the election campaign that New Zealand will not seek to lead the world in greenhouse gas emission reductions. New Zealand will join, but not lead, the pack. The Minister for Climate Change Issues, Hon Dr Nick Smith, has since fleshed out some of the policy priorities, announcing that it was unrealistic for New Zealand to purport to be leading the world in climate change initiatives when our emissions have grown so significantly since 1990. New Zealand will take a "modest" view of our international leadership on climate change which focuses on New Zealand contributing its "fair share". Also, at the international climate change conference in Poznan, Poland, the Associate Minister for Climate Change Issues (International Negotiations) Hon Tim Groser last weekend expanded further on the Government's position. Stressing the importance of agriculture to the New Zealand economy, Groser pointed to New Zealand's record as an efficient agricultural producer with internationally low carbon emissions (for agriculture) at every stage of the production chain. He asked the Poznan conference how it would benefit the global effort to fight climate change if efficient New Zealand were forced to cut agricultural production, thus leaving other less-efficient nations to pick up the slack. He also stated that while New Zealand intended to invest significantly more into researching agricultural emission reductions, cutting production was not an economically viable option for New Zealand. Groser made frequent appeals to developing nations. He painted New Zealand as a developed nation with a developing nation's emissions profile. The subtext is two-fold: The first is that New Zealand deserves a special place in a successor agreement to Kyoto. The second is that New Zealand plans to use relationships with developing nations increasingly in international negotiations. Click here to view Mr Groser's speech. Emissions trading scheme review The Government has established a special Select Committee under the chairmanship of United Future Leader Hon Peter Dunne to review the Emissions Trading Scheme and related matters.
The Committee's terms of reference are to:
At his post-Cabinet press conference on 8 December, the Prime Minister stated that he expected the ETS Committee to report back to Parliament by March 2009 and that any amending legislation would be in place by September 2009. The tight timeframe for the Committee's review suggests that we should not expect wholesale change. Moreover, the ambitious timeframe raises doubts about whether the review can actually be completed by March 2009. Certainly neither the timeframe nor the terms of reference point towards public consultation as part of the review. Australia announces greenhouse gas targetsOn Monday the Prime Minister of Australia, Hon Kevin Rudd, released a white paper detailing Australia's planned greenhouse gas targets. The white paper comes a year after Australia ratified the Kyoto Protocol following the election of Mr Rudd's Labour Government. The paper is available at http://www.climatechange.gov.au/whitepaper/summary/index.html. Australia proposes unilaterally reducing its emissions of the six core greenhouse gasses five percent below 2000 levels by 2020. If all major economies commit to reducing emissions in Kyoto's successor agreement, then Australia will reduce emissions 15 percent below 2000 levels by 2020. The door is also left open for reductions of up to 25 percent by 2020. The emission reduction targets come in the context of Australia introducing an ETS. Commerce Commission and green marketing claimsThe Commerce Commission released its guidelines on green marketing. The Commission has become increasingly concerned about the veracity of so-called green claims made by businesses in their advertising, especially at a time when the number of green marketing claims proliferate. The Director of Fair Trading at the Commission, Adrian Sparrow, explained the rationale behind the guidelines by saying "environmental claims can be a powerful marketing tool...consumers are increasingly aware of their own impact on the environment and may choose one product or service over another based on the green claims made on the label or in advertising." The Commission has already investigated a number of green marketing claims for being misleading or deceptive for consumers earlier this year (for example, Wellington Combined Taxis and Meridian Energy). The purpose of the guidelines is to ensure consumers are not mislead or deceived by encouraging businesses to explain what part of a product or process green claims relate to in their marketing. The Commission has confirmed this is a priority focus for the next three years, and as such, has been resourcing itself to begin investigations and prosecutions in the near future. Mr Sparrow from the Commission said "we already have active investigations in this area and businesses would be well advised to read the guidelines and seek legal advice about any green marketing claims they are making." Pharmac's Commerce Act exemption questionedLast month's Court of Appeal decision in Astrazeneca Ltd v Commerce Commission & Pharmac [2008] NZCA 479 looked at the question of how far Pharmac's exemption from Part 2 of the Commerce Act extends. Specifically, it looked at whether the exemption can be invoked by the pharmaceutical companies in the context of their dealings with Pharmac. Currently, nothing in Part 2 of the Commerce Act applies to "any agreement to which Pharmac is a party". This has typically been seen as an exemption for Pharmac's own benefit, enabling it to pursue bargaining tactics against the large pharmaceutical companies that might otherwise be considered anti-competitive. However, the wording of the exemption is broad, extending to: "any act, matter, or thing, done by any person for the purposes of entering into such an agreement". Astrazeneca had argued that this would cover a refusal to supply one drug in order to secure another drug's subsidisation. Because the exemption applied, it argued, there would be no point in allowing the Commerce Commission to proceed with a section 98 notice it had issued to Atrazeneca. While the majority declined to consider the scope of the exemption in the absence of a full factual background, it was considered possible that the exemption could extend to protect anti-competitive conduct on behalf of the pharmaceutical industry. The dissenting judgment thought that Astrazeneca's conduct fell squarely within the words of the exemption. The Commerce Act exemption was the subject of a 2005 Member's Bill put forward by Heather Roy. This sought to remove the exemption in the interests of promoting market competition and consumer choice. While it received cross-party support to an extent, much of this was premised on a Select-Committee considering the "big picture" of Pharmac's role, not Roy's specific proposal. There have been recent murmurings that Ms Roy may look to revive this Bill under the new Government.
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HeadlinesThe Government advanced four additional Bills this week, bringing Parliamentary business to a close for the year. Two new Bills were taken through all their stages under urgency. The first - the Energy (Fuels, Levies, and References) Biofuel Obligation Repeal Bill, repealed the biofuel sales obligation. The second, the Electricity (Renewable Preference) Repeal Bill repealed the ban on new thermal power generation. The two remaining Bills were:
Biofuel obligation repealedOn the repeal of the biofuel sales obligation, Energy and Resources Minister, Gerry Brownlee, said it was "a pragmatic environmental step." "There has been a lot of mock outrage from the Opposition over this repeal, but the reality was the previous Government’s law was no more than an exercise in greenwash and could have created more damage than good," he said. The Government wants to promote biofuels and a biofuel industry by applying consistent tax incentives. Bills Before Select CommitteesOpen for submissions
Submissions closed
Bills Passed Third ReadingElectricity (Renewable Preference) Repeal Bill Acts AssentedBail Amendment Bill RegulationsSecurities Act (Calibre Asset Services Limited) Exemption Notice 2008
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Whats New
Whats New
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