NEWS ON POLICY
AND POLITICS |
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IN POLITICS Labour has an uphill battle - but how steep? EMISSIONS TRADING UPDATE The countdown continues towards the 29 February 2008 deadline for submissions on the Climate Change (Emissions Trading and Renewable Preference) Bill. more...PROGRESS OF LEGISLATION Bills Introduced/Awaiting First Reading
Bills Open for Submissions more... Regulations more... At Select Committee more... Review of effectiveness of the criminal law to prevent organised threats to public safety and security more... Fuel economy requirements more... Habeas Corpus more... Amendments to Land Transport Act more...IN CONSULTATION more...
Financial Review of the Guardians of New Zealand Superannuation more... Interest-free loans for students on NZ exchange programmes more... |
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Labour has an uphill battle - but how steep?With the running average of political polls showing a consistent double-figure gap between Labour and National, time is running out for the Government to recapture public confidence and imagination. Increasingly, voter preference seems to be solidifying - well ahead of what might normally be expected in an election year. Failing to wrest the initiative from National in the opening political salvos for the year and likely to face sustained attack over its relationship with billionaire Owen Glenn, Labour will be looking to the May budget as its circuit breaker. But if the Deputy Prime Minister's cautionary comments about economic downturn and fiscal rectitude are any indication, meaningful tax cuts may yet be missing from Government's package of pre-election sweeteners. However, for all that commentators busily note that the last four-term administration was that of Keith Jacka Holyoake and cast doubt on Labour's ambition, MMP is a confounding factor. The strongly left-wing leanings of the Greens and the undecided place and loyalties of United Future, New Zealand First and the Māori Party make a fourth term far more realisable for Clark than a fifth term was ever going to be for Holyoake. For all of Key's appeal as a fresh and human face, the absence of coalition partners will be telling.
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| EMISSIONS TRADING UPDATE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The countdown continues towards the 29 February 2008 deadline for submissions on the Climate Change (Emissions Trading and Renewable Preference) Bill. Draft regulations were released for Liquid Fossil Fuels and Forestry sectors on 13 February 2008, along with an explanatory bulletin for each - a little over two weeks shy of the 29 February deadline. Feedback on the regulations is a separate process from submitting on the Bill (so the 29 February deadline does not apply). However, understanding the regulations is an important part of understanding the Bill's implications for businesses who are "obliged persons" under the ETS - so a period of more than two weeks to digest these and understand the implications would have been helpful for submitters. In the case of the liquid fossil fuel sector, the draft regulations set out the fuels that are concerned by the Bill and the methodologies for participants to monitor and calculate their emissions from those fuels. Methodologies are also set out for participants who opt in for jet fuel to monitor and calculate their emissions. The proposed regulations for the forestry sector cover obligations under the emissions trading scheme for owners of forests planted before 1990. These regulations contain the measurement methodologies which pre-1990 forest owners will apply to determine their liability for any deforestation occurring from 1 January 2008. The regulations relating to post 1989 forest land (these owners have a choice about whether to opt in to the scheme) are still in development. No regulations are expected at this stage around issues such as acceptability of units into the scheme, carryover of units, links to other emissions trading schemes etc - we have all the detail and information we are going to get at this stage. Meanwhile, two critical reports have been released by the private sector over the last three weeks or so. Castalia and the Greenhouse Policy Coalition released a follow up report on the Bill, assessing whether any of the concerns originally identified with Government's emissions trading policy (including lack of a price safety valve, and issues around allocation and compliance) had been addressed - concluding they had not. Another report, commissioned by the NZ Business Roundtable and PEPANZ, was undertaken by Infometrics (economic consultants the Government's emissions trading group have used previously). Based on economic modelling, this report concluded the ETS could cost NZ households up to $19,000 per year, and actually leave New Zealand further away from carbon neutrality than it is today. To date, the Government has not encouraged informed and critical public debate around issues and concerns which have been raised by groups such as the Greenhouse Policy Coalition and the NZBR. Nor have we seen widespread critical discussion and analysis comparing New Zealand's approach to its ETS, with the experiences of emissions trading schemes elsewhere in the world. A final point to note for those interested in opening an account with the NZ Emissions Unit Register (www.nzeur.govt.nz), is that details are pending (date, time, location) regarding free user training being conducted by the MED in February and March. |
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PROGRESS OF LEGISLATION |
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Bills Introduced/Awaiting First ReadingBiosecurity and Hazardous Substances and New Organisms Legislation Amendment Bill Biosecurity Minister, Hon Jim Anderton, this week introduced a Bill intended to clarify the roles played by the Biosecurity Act 1993 and the Hazardous Substances and New Organisms Act 1996 in managing risks to New Zealand from incidentally imported new organisms. Specifically, the Bill provides that:
In introducing the Bill, Anderton said: “If the law is not amended, we will have an unworkable situation at New Zealand’s border. We will impede imports and we will be potentially at risk of inconsistency with our World Trade Organisation obligations." The Bill will be considered by the Primary Production Select Committee. A short period will be allowed for consideration and the Bill will be reported back to the House on or before 17 March 2008. Christchurch City Council (Lancaster Park) Land Vesting Bill This Bill is intended to facilitate the redevelopment of Lancaster Park as a modern sports stadium. The redevelopment of the Park (to meet public and sporting demands) is beyond the financial resources of the Victory Park Board. It is expected that the redevelopment of the Park, when completed, will provide economic benefits to the Canterbury economy in excess of $20 million per annum. In return for the Council agreeing to fund the necessary redevelopment of the Park, the Board has agreed to hand over its assets to the Council. The Board will then go out of existence and the Bill gives effect to that agreement. Notably, the Ngai Tahu Claims Settlement Act 1998 provides that Te Runanga O Ngai Tahu has the right of first refusal to purchase the land in Schedule 1 from the Crown (including parts of the Park). Te Runanga O Ngai Tahu has agreed, in the interests of the Christchurch community, to consent to the promotion of this bill and the deferral of its rights under the 1998 Act. Insurance Contracts, Agency and Assignments Bill The Bill arises from the recent review of financial products and providers, and financial intermediaries. The Bill is intended to overhaul the law relating to insurance contracts, agency and assignments in order to bring certainty to the public taking out insurance. Introducing the Bill, Commerce Minister, Hon Lianne Dalziel stated that: The Bill will also require insurers to be responsible for the actions of their agents, clarifying an area of perceived uncertainty. Policing Bill The Bill repeals and replaces the Police Act 1958. It updates the law with respect to the organisation and powers of the Police. The Bill is intended to addresses key weaknesses of the present Police Act 1958 and Police Regulations 1992, including:
Summary Offences (Tagging and Graffiti Vandalism) Amendment Bill This Bill amends the Summary Offences Act 1981. It is intended to reduce graffiti vandalism and tagging by creating a specific offence for graffiti vandalism and limiting the sale of spray cans to people over the age of 18. Provision is made for a wider range of sentencing options, including:
Bills At Select CommitteeOpen For Submissions
RegulationsTelecommunications (Operational Separation) Amendment Determination 2007 At Select CommitteeThe Local Government Environment Committee continues its consideration of the Waste Minimisation (Solids Bill). The Transport and Industrial Relations Committee continues its consideration of the Immigration Bill and the Land Transport Management Amendment Bill (No 4). The Government Administration Committee continues its consideration of the Gambling Amendment Bill No 2. A number of Select Committees have busy schedules, including the Finance and Expenditure Committee, which will consider the Climate Change (Emissions Trading and Renewable Preference) Bill as well as a number of Bills coming out of the Review of Financial Products and Providers.
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Review of effectiveness of the criminal law to prevent organised threats to public safety and security The Government has settled the terms of reference for a report by the Law Commission on legal issues raised by the Solicitor-General's decision of 12 November 2007 not to apply the Terrorism Suppression Act to New Zealanders arrested on arms charges. The report will concentrate on the state of New Zealand's existing domestic law, particularly the relevant offences contained in the Crimes Act 1961, Arms Act 1983, and Terrorism Suppression Act 2002. The report will not examine other aspects of the law relating to terrorism or international aspects of terrorism. A timetable has not yet been agreed. In a Ministry of Transport discussion document, Improving the fuel economy of vehicles entering the NZ fleet, the government has indicated that its preferred option for improving fuel economy standards is to legislate for a vehicle fuel economy standard. It is thought that this is the best way to achieve fuel economy improvements while ensuring that vehicle choice is maintained as much as possible. Submissions on the discussion document close on 28 March 2008. The Law Commission has drafted a Bill setting out proposals to amend a number of rules relating to habeas corpus (a writ for a person's release from unlawful detention). Amendments to Land Transport Act Cabinet has agreed to amendments to the Land Transport Act 1998 relating to penalties for recidivist offenders.
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IN CONSULTATION |
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What's New
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Financial Review of the Guardians of New Zealand SuperannuationThe Commerce Select Committee heard from the Chairman of the Guardians of New Zealand Superannuation (GNZS), David May. May presented on market performance, responsible investment, organisational transition, and the management of sustainable growth. He advised that the superannuation fund's assets comprised 53% listed equities, 18% New Zealand and global fixed interest, 27% growth assets, with 2% cash. May reported that their risk taking had delivered better than expected returns in the initial investment period (2003-2007) and that there had only been 10 negative monthly returns in the 51 months of investment. However, problems of recent months have normalized long term returns. May said that recent sub-prime concerns have led to financial market volatility and asset price corrections mean that the equity risk premium has risen. Since inception the fund has grown by $1,561 million (12.68%), however value added is negative by $635 million (1%) for the last six months of 2007. No figures were yet available for December-January 2008, but negative news is expected. Interest-free loans for students on NZ exchange programmesRevenue Minister, Hon Peter Dunne, has announced the extension of interest-free loans to people studying full-time overseas as part of formal exchange programmes. “Extending the exemption to include these students will remove an obstacle to further education and training that will ultimately benefit New Zealand when they return from their overseas study,” Mr Dunne said. For these students to be granted the exemption, their New Zealand tertiary provider must certify that the study is full-time and towards a minimum of level seven on the New Zealand Register of Quality Assured Qualifications. The proposed change will be included in a Bill scheduled for introduction later this year. The exemption would be backdated to apply from 1 April 2007.
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LinksThis
publication is intended only to provide a summary of the subject
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© Russell McVeagh 2005. All rights reserved.