NEWS ON POLICY AND POLITICS
22 November, 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

Monitoring the exchange
The release of Don Hunn's report on the Madeleine Setchell affair provided plenty of ammunition for the National Party last week, and led to a concerted attack on Labour's front bench. more...

IN OTHER NEWS more...

PROGRESS OF LEGISLATION

Bills Introduced/Awaiting First Reading more...

Bills At Select Committee more...

Open for submissions
Submissions closed

Bills Reported Back/Awaiting Second Reading more...

Bills Delayed more...

Bills Passed Second Reading more...

Abandoned more...

Supplementary Order Papers more...

Bills Passed more...

Acts Assented more...

Regulations more...

In Committee more...

LEGISLATION IN THE WINGS more...

IN CONSULTATION more...

Parliament sits this week, takes a brief recess next week, and returns for the last session before rising for the year on 11 December.

Monitoring the exchange

The release of Don Hunn's report on the Madeleine Setchell affair provided plenty of ammunition for the National Party last week, and led to a concerted attack on Labour's front bench.  Opposition accusations that the Government was systematically politicising the public sector were given additional weight by the revelation that a Labour Party activist had been appointed to a senior communications role in the Ministry for the Environment.

The report back of the Electoral Finance Bill also provided renewed opportunities for the opposition parties to call the Government to account. Among the themes taken up were the want of Select Committee process and the lack of public release of the Ministry of Justice papers on the Bill. 

The proposed restructure of Fonterra was big news outside the House.  Inside the House, Labour gave assurances that it would introduce any legislation necessary to implement the decisions of Fonterra shareholders, once taken.  National couldn't argue with that, but New Zealand First could, asking whether debt funding had been considered as an alternative to letting foreigners buy into our biggest company. 

The Maori Party, in the form of Dr Pita Sharples, wondered how the Government was going to help those who had suffered through the Ureweras non-terrorism incident.  Ron Mark of New Zealand First, on the other hand, wondered what would happen if the Police did not have the ability to take action on groups who "declared war on New Zealand".

Sea Change: Government proposals to increase the volume of coastal freight

The Ministry of Transport has issued a discussion document Sea Change: Transforming Coastal Shipping in New Zealand. The proposed strategy is intended to remedy the neglected state of the New Zealand coastal shipping industry, which has been the unintended victim of successive governments' preoccupation with road transport.  

The proposals set an ambitious target of doubling the volume of coastal freight by 2040 to deal with what is predicted to be a substantial increase in the amount of freight moving around the country. Submissions are due on the discussion document on 19 December 2007

Voluntary identity verification service proposed

The Department of Internal Affairs has issued a discussion paper proposing a voluntary online identification service that is aimed at easing the process of verifying one's identity to the Government when interacting with any government agency online. At present, agencies cannot provide services which involve the exchange of money or personal information, such as student loans, unless they have verified someone's identity. This means that identity documents can be submitted many times, generating high transaction costs.

Bills Introduced/Awaiting First Reading

Companies (Minority Buy-out Rights) Amendment Bill
Type of Bill: Government Bill
Member in Charge: Hon Lianne Dalziel

This Bill is intended to amend the Companies Act 1993 to clarify how the share price will be calculated in a minority buy-out situation and how the provisions apply to special resolutions.  The Commerce Minister's objective is to improve the practical operations of the minority buy-out regime to ensure that it functions efficiently, cost-effectively, and appropriately.

The amendments proposed by the Bill follow the recommendations of a Law Commission report which arose out of a court decision (see Natural Gas Corporation Holdings Ltd v Infratil 1998 Ltd [2000] 3 NZLR 727).  In that case, Justice Doogue concluded that the provisions required further clarity to make the minority buy-out rights more beneficial and workable.

Amendments to the minority buy-out provisions include:

• providing that the price of the shares in a minority buy-out be calculated from the date that the company gives the shareholder notice agreeing to buy back the shares, but that the valuation be adjusted to disregard any change attributable to the event triggering the buy-out (except when a shareholder is being bought out against the shareholder's will); and
• clarifying and expanding the powers of the arbitrator to determine the share price in a minority buy-out.

The minority buy-out provisions of the Companies Act also apply to special resolutions that:

• alter the company's constitution in a way that imposes or removes a restriction on the company's activities; or
• approve a major transaction; or
• approve an amalgamation proposal.

Bills At Select Committee

The Education (Establishment of Universities of Technology) Amendment Bill was read for the first time and referred to the Education and Science Committee.  Submissions have not yet been called for on the Bill.  The Committee is due to report back on 6 May 2008.

The Land Transport Management Amendment Bill was read for the first time and referred to the Transport and Industrial Relations Committee.  Submissions are due on 20 December. The Committee is due to report back on 25 March 2008.

Open For Submissions

Submissions Closed

Bills Reported Back/Awaiting Second Reading

Corrections (Mothers with Babies) Amendment Bill
Electoral Finance Bill
Misuse of Drugs (Classification of BZP) Amendment Bill
Taxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters) Bill

Electricity (Disconnection and Low Fixed Charges) Amendment Bill
has been reported back to the House without change this afternoon by the Commerce Committee.

Bills Delayed

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

• Regulatory Responsibility Bill will now report back on 1 May 2008;
• Airport Authorities (Sale to the Crown) Amendment Bill will now report back on 20 June 2008; and
• Immigration Bill will now report back on 16 April 2008.

Bills Passed Second Reading

Appropriation (Continuation of Interim Meaning of Funding for Parliamentary Purposes) Bill
Building Amendment Bill

Abandoned

Principles of the Treaty of Waitangi Deletion Bill. Second reading not agreed to
Human Tissue (Organ Donation) Amendment Bill. Second reading not agreed to

Supplementary Order Papers

SOP 161: Education (Tertiary Reforms) Amendment Bill
Other member: Dr Paul Hutchison
Type: Substantive amendment

This SOP seeks to ensure that the Minister consults with representatives of the major tertiary organisations.  One of the objectives of the Bill is to reduce the levels of complexity and bureaucracy between the Tertiary Education Commission and the Ministry.

This SOP aims to co-ordinate the parties information requests so that duplicate information is not sought and requests for information are reasonable and well thought through.  It is held that too often government departments request vast amounts of information that is not used (section 159YC).

Increasingly, tertiary educational organisations are carrying out ventures with industry or private businesses.  It is important that a tertiary education organisation can carry out joint ventures with industry, and not have sensitive commercial information divulged inappropriately when non-government funded resources are used (section 159YO).

SOP 160: Employment Relations (Flexible Working Arrangements) Amendment Bill
Member in charge: Hon Trevor Mallard
Type: Substantive amendment

This SOP amends SOP 153, by omitting and substituting new section 179B.  New section 179B applies to an investigation by, or determination of, the Employment Relations Authority under new Part 6AA and provides that:

• The Authority may not refer a question of law to the Court under section 177 of the principal Act if the question of law arises during an investigation of the Authority under new Part 6AA (new section 179B(2)).
• No matter, or part of a matter, may be removed to the Court under section 178 of the principal Act if the matter, or the part of the matter, arises under new Part 6AA (new section 179B(3);
• No party who is dissatisfied with a determination, or part of a determination, of the Authority under new Part 6AA may elect, under section 179 of the principal Act, to have the matter heard by the Court (new section 179B(4)).

New section 179B does not preclude a decision of the Authority under new Part 6AA from being subject to judicial review.

SOP 158: Terrorism Suppression Amendment Bill
Other member: Keith Locke
Type: Substantive amendment

This SOP amends the Terrorism Suppression Amendment Bill as follows:

• New clause 5A relating to the definition of a terrorist act requires serious disruption of an infrastructure facility to be caught by the definition only when this disruption is with an intent to endanger human life.  This is to prevent the definition also catching non-violent disruptive protest.
• New clauses 16A and 16B amend sections 20 and 22 of the principle Act to provide that during all processes for terrorist designations, full consideration is given to the International Covenant on Civil and Political Rights.

SOP 157: Terrorism Suppression Amendment Bill
Member in charge: Rt Hon Winston Peters
Type: Substantive amendment

This SOP sets out technical and drafting amendments to the Terrorism Suppression Amendment Bill.

Bills Passed

Terrorism Suppression Amendment Bill

Acts Assented

Armed Forces Discipline Amendment Act (No 2) 2007
Court Martial Act 2007
Court Martial Appeals Amendment Act 2007
Defence Amendment Act (No 2) 2007

Regulations

New Zealand General Service Medal (Solomon Islands) Regulations 2007
New Zealand General Service Medal (Timor-Leste) Regulations 2007
Securities Act (Goodman (NZ) Limited) Exemption Notice 2007

In Committee

The Local Government and Environment Committee continues to hear evidence on the Waste Minimisation (Solids) Bill (submissions will focus on the new Supplementary Order Paper). The Committee has invited those who have made written submissions to present orally. Oral submissions have been made by a number of groups, including Federated Farmers, the Packaging Council and Local Government New Zealand. The Packaging Council argued that there should be exemptions from the Bill for successful voluntary recycling schemes, such as its own, and pointed to New Zealand's successful recycling figures (compared with other countries). The Committee is also hearing oral submissions on the Gambling Amendment Bill (No 2), including a submission from Bruce Robertson from the Hospitality Association of New Zealand.

The Transport and Industrial Relations Committee continues to hear submissions on the Immigration Bill.

Triangular Employment Relationship

Labour's Darien Fenton has put a new Member's Bill into the ballot dealing with temporary agency and labour hire workers.  The Bill would enable temporary workers to be covered by the collective agreement at the workplace in which they are employed. The joinder of temporary and primary employer in any personal grievance will also be provided for.

Bill on Emissions Trading

Ministers are considering a Bill on emissions trading, which is close to being finalised. The Bill will be introduced before Christmas.

Easter trading

The Government is considering making Easter Sunday a public holiday. It has issued a discussion document which considers a number of proposals to amend Easter trading laws, including allowing businesses to open on Easter Sunday and declaring it New Zealand's 12th public holiday.

Reserve Bank Amendment Bill

Cabinet has agreed to a Reserve Bank of New Zealand Amendment Bill, which deals with the regulation of deposit takers.

Changes to the Commerce Act

Cabinet has agreed to policy changes to the clearance and authorisation provisions of the Commerce Act. These changes are expected to be technical and will be included in omnibus legislation.

Changes to the Customs and Excise Act

Cabinet has agreed to changes to the Customs and Excise Act following the Law Commission's Review of Customs Powers of Forfeiture and Seizure.

What's New

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