NEWS ON POLICY AND POLITICS
20 November, 2008


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

The Cabinet
The capacity to calculate and accept risk that Key learned as a trader is a defining feature of his Cabinet appointments. more...

Agreements for confidence and supply
Balancing the right of the political spectrum with the left, Key has built the basis for a strong alignment of parties as well as a foundation for the 2011 election. more...

Flashpoints
Even without the global economic crisis National has some potential flashpoints in both policy and political management. more...

IN PARLIAMENT

Progress of legislation more...
Regulations more...

IN CONSULTATION more...

 


IN POLITICS

The election result and the decisiveness with which Key has moved to form his Government have been amply covered in the media.  However, some observations about the character of both the outgoing and incoming administrations are worth noting, as are the likely policy flashpoints for the administration over the coming Parliamentary term.

The Cabinet

The capacity to calculate and accept risk that Key learned as a trader is a defining feature of his Cabinet appointments. Relegating National's older hands, at the same time as offering face-saving positions, Key has created senior positions for a number of relatively inexperienced MPs. Parliamentary newbie (but no tyro) Stephen Joyce has found challenging homes in Transport and Infrastructure, whilst able second termer Paula Bennett has been allocated social development. Legal savant and workhorse Chris Finlayson is another welcome addition to the front bench as Attorney-General, Treaty Negotiator, and Arts Minister, while former Uruguay negotiator Tim Groser is a wise choice for Trade Minister and climate change negotiator. Much has been thrust on the shoulders of Simon Power, at number four, and he has a demanding role in the Justice and Commerce portfolios.  Second term MP, Kate Wilkinson has also made her debut as Labour Minister, reflecting Key's confidence in the hard work she has done as Opposition spokesperson on Labour.

Among the more experienced players, Nick Smith has been rewarded for the hard work he has done in Opposition on the Resource Management Act, climate change and the environment generally. His measured comments on privatisation in his capacity as ACC Minister will also be welcome to those concerned by his sometimes frenetic approach to complex policy in the past.  Similarly, Tony Ryall enters the lists in Health and State Services, both difficult portfolios that will call on the generally good political judgment he has shown in opposition.

As well as able to draw on the able, Key has the benefit of a reserve of young MPs such as up-and-comer Nathan Guy to whom Select Committee chairs will be offered as training grounds for later Cabinet appointment. Likely contenders, possibly disappointed by their relegation this time will already have been reassured about their chances when an election oriented shuffle is undertaken in a couple of years.

Proving yet again that a week is a long time in politics, National has partners and prospects where the pundits said they had none.

The Cabinet was sworn in this morning and the shuffle of Ministerial offices will be completed over the weekend.

Agreements for confidence and supply

Balancing the right of the political spectrum with the left, Key has built the basis for a strong alignment of parties as well as a foundation for the 2011 election. The allocation of meaningful portfolios to Hide, Roy, Turia and Sharples, albeit outside Cabinet, is indicative of Key's willingness to offer a real stake in the game.  Dunne will continue as Minister of Revenue and Associate Minister of Health. Broadening his focus beyond the New Zealand medicines strategy, Dunne has indicated a commitment to the use of private health providers to clear the backlog in elective surgery, as well as private public partnerships in other areas.

The text of the confidence and supply agreements may be found below.

http://www.national.org.nz/files/agreements/National-UF_agreement.pdf

http://www.national.org.nz/files/agreements/National-Maori_Party_agreement.pdf

http://www.national.org.nz/files/agreements/National-Act_Agreement.pdf

Flashpoints

Even without the global economic crisis National has some potential flashpoints in both policy and political management.  Rodney Hide has much he wishes to do in the local government portfolio that may bring him into conflict with National at the many points where his interests rub up against National's.  Infrastructure, the Royal Commission for Auckland and the ETS are cases in point.

The foreshore and seabed legislation and freshwater management are other difficult areas that will test relations with ACT and the Māori Party alike. In both instances the opportunity to balance left against right will be limited given to the largely aligned position of ACT and the Māori Party on the question of property rights. National's past pragmatism on the issue will come under strain.

Freshwater management generally promises to be a vexed area and enough to test the relationship between central and local government. The ETS also offers up a minefield as those invested in the current arrangement seek to preserve the status quo.

 

IN PARLIAMENT

Dates for the commencement of the 49th Parliament have yet to be finalised, but the expectation is that business will resume on 9 December. Work will commence immediately on the tax cuts legislation and relief package legislation.

Progress of legislation

When Parliament resumes consideration will be given to Bills for reinstatement. These include:

  • Building Amendment Bill (No 2)
  • Children, Young Persons, and Their Families Amendment Bill (No 6)
  • Climate Change (Transport Funding) Bill
  • Commerce Commission (International Co-operation, and Fees) Bill
  • Copyright (Artists' Resale Right) Amendment Bill
  • Copyright (Commissioning Rule) Amendment Bill
  • Corrections Amendment Bill (No 2)
  • Criminal Proceeds (Recovery) Bill
  • Domestic Violence Reform Bill
  • Education (National Standards of Literacy and Numeracy) Amendment Bill
  • Electoral Finance Amendment Bill
  • Employment Relations Amendment Bill (No 3)
  • Energy Efficiency and Conservation Amendment Bill
  • Family Proceedings (Paternity Orders and Parentage Tests) Amendment Bill
  • Foreshore and Seabed Act (Repeal) Bill
  • Government Superannuation Fund Amendment Bill
  • Health and Safety in Employment Amendment Bill (No 2)
  • Immigration Bill
  • Judicial Matters Bill
  • Land Transport Amendment Bill (No 4)
  • Legal Services Amendment Bill
  • Māori Trustee Amendment Bill
  • Marine Reserves Bill
  • Minimum Wage and Remuneration Amendment Bill
  • Misuse of Drugs (Medicinal Cannabis) Amendment Bill
  • Organised Crime (Penalties and Sentencing) Bill
  • Overseas Investment (Queen's Chain Extension) Amendment Bill
  • Patents Bill
  • Privacy (Cross-border Information) Amendment Bill
  • Rail Network Bill
  • Residential Tenancies Amendment Bill (No 2)
  • Resource Management (Climate Protection) Amendment Bill
  • Sale and Supply of Liquor and Liquor Enforcement Bill
  • Search and Surveillance Powers Bill
  • Serious Fraud Office (Abolition and Transitional Provisions) Bill
  • Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill
  • Therapeutic Products and Medicines Bill
  • Trade Marks (International Treaties and Enforcement) Amendment Bill
  • Unit Titles Bill

Regulations

The following regulations have been passed:

Public Lending Right for New Zealand Authors Regulations 2008
Central North Island Forests Land Collective Settlement Act Commencement Order 2008
Major Events Management Regulations 2008
Gas Governance (Critical Contingency Management) Regulations 2008
Gas Governance (Compliance) Amendment Regulations 2008
Securities Act (Overseas Employee Share Purchase Schemes) Exemption Amendment Notice (No 3) 2008
Marine Mammals Protection (Banks Peninsula Sanctuary) Amendment Notice (No 2) 2008
Fisheries (Kaipara Harbour Temporary Closure) Notice 2008
Health Practitioners (Quality Assurance Activity---Joint Faculty of Intensive Care Medicine) Notice 2008
Fisheries (Remaining Cost Recovery Settlement Balance) Notice 2008

 

IN CONSULTATION

Whats New

AGENCY SUBJECT CLOSES ON...
(2008)
Electricity Commission Proposed changes to the System Security Forecast by Transpower 12 December
Food Standards Australia NZ

New microbial source for phospholipase A2; new cellulase enzyme preparation

Voluntary Addition of Fluoride to Packaged (bottled) Water + Policy Guideline

9 December


3 December

Inland Revenue Department Payments made by parents or guardians of students to state schools - GST treatment 19 December
Land Information NZ Tenure review – Awakino Station 23 December
Standards NZ Adoption of AS 3806:2006 Compliance programs 20 January 2008

Whats New

AGENCY SUBJECT CLOSES ON...
(2008)
Accident Compensation Commission & Health, Ministry of NZ Ambulance Service Strategy 12 December
Biosecurity NZ Report on the American Foulbrood National Pest Management Strategy 29 November
Conservation, Department of

Management of dogs on Canterbury land administered by DoC

Waikato Conservation Management Strategy

21 November


January 2009

Economic Development, Ministry of

Review of Franchising Regulation

Review of Rules of Origin for CED

21 November

17 December
Electricity Commission Responsibility for Retailers' Wholesale Market Obligations 24 November
Environment, Ministry for the

National Policy Statement for Freshwater Management

National Policy Statement on Urban Design

Draft regulations: stationary energy and industrial processes

To be announced

To be announced

15 December
Foreign Affairs and Trade, Ministry of Expansion of the Trans-Pacific Agreement to include the United States 8 December
Health, Ministry of Maternity Action Plan 2008–2012 31 December
Internal Affairs, Department of Building Sustainable Urban Communities 29 November
Law Commission

Towards a New Veterans’ Entitlements Scheme: A Discussion Paper on a Review of the War Pensions Act 1954 (Parts 1 & 2; Part  3)

Review of the Land Transfer Act 1952

Compensating Victims of Crime

28 November

 

19 December  

24 December
Medical Training Board Integrated and Coordinated Medical Training; The Curriculum Framework; The Future of the Medical Workforce; Overview paper 16 January 2009
Standards NZ Fire hydrant systems for buildings 25 November



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This 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:

Tim Clarke - Partner
Ph 04 819 7532
[email protected]
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Ph 04 819 7572
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