NEWS ON POLICY AND POLITICS
23 April, 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 THE NEWS

Report on Compliance by Government Agencies with Regulatory Impact Analysis Requirements more...                     

Further Consultation on Financial Advisers Bill more...

New Government Policy Statement on Gas Governance more...

Greenhouse Gas Inventory 2006-2006 more...

National Water Strategy more...

Transmitting Renewable Energy more...

IN PARLIAMENT

Bills Introduced/Awaiting First Reading more...

Bills Open for Submissions more...

Submissions Closed more...

Bills Reported Back / Awaiting Second Reading more...

Bills Delayed more...

Bills Passed Second Reading / Awaiting Third Reading more...

Second Reading Negatived more...

Supplementary Order Papers more...

Bills Passed Third Reading more...

Acts Assented more...

Regulations more...

IN COMMITTEE more...

LEGISLATION IN THE WINGS more...

IN CONSULTATION more...

Report on Compliance by Government Agencies with Regulatory Impact Analysis Requirements

The Government's Regulatory Impact Analysis requirements are Cabinet requirements and are set out in Cabinet Office Circular CO (07) 03.  The requirements apply to the process behind, and Regulatory Impact Statement attached to, policy papers submitted to Cabinet that result in Government Bills or regulations.

Of eight examples assessed for the quality of analysis and the process followed, only five were found to be adequate. The main areas of weakness were problem definition, demonstrating the scale of the relevant issue, and the analysis of costs and benefits.  Risk assessment also tended to be weak.

In an analysis of 12 Regulatory Impact Statements, which considered their communication function, only five were found to be satisfactory - "none were particularly good".

The review found that "consultation is usually done well".

Further Consultation on Financial Advisers Bill

The Finance and Expenditure Committee has called for further submissions on the Financial Advisers Bill, largely due to concerns raised about the Bill's scope and institutional arrangements.  A discussion paper has been released which prompts submitters to provide responses on:

• scope;
• institutional accreditation;
• budget advisers;
• institutional arrangements;
• regulations; and
• enforcement.

New Government Policy Statement on Gas Governance

Energy Minister David Parker has released the Government's revised and updated Government Policy Statement ("GPS") on Gas Governance.  The GPS on Gas Governance sets out the objectives and desired outcomes for consumers, retail arrangements, the wholesaling of gas, infrastructure access, contingency management and other gas matters the Government wants the Gas Industry Company (the approved industry body) to pursue and report against.

The GPS has been modified to be consistent with the New Zealand Energy Strategy and the New Zealand Energy Efficiency and Conservation Strategy, as well as to reflect general changes that have taken place since the previous GPS was released in October 2004.

Greenhouse Gas Inventory 2006-2006

The Ministry for the Environment's Greenhouse Gas Inventory 2008 shows New Zealand’s emissions rose less than one per cent between 2005 and 2006.  

The Inventory collects information on New Zealand’s greenhouse gas emissions to provide a snapshot of emissions by sector, as well as the removal of greenhouse gases by sinks.  The inventory includes data from 1990 to 2006 inclusive.  The 2008 Inventory has been submitted to the United Nations Framework Convention on Climate Change secretariat.  Submission of an inventory report is now a requirement to continue carbon-trading.

Climate Change Minister David Parker says that the increase of less than one percent is an improvement on the previous year’s increase of three percent.  However, while small, the increase reinforces the need for the Government to continue to add to its roll of climate friendly policies.  The report states that the causes of increasing emissions include the expansion of dairy farming, more cars and trucks on the road, and an increase in demand for electricity.

National Water Strategy

The Government has approved a Plan of Action developed by the Primary Sector Reference Group ("PSRG"), representing dairying, forestry, horticulture and fertiliser interests, as well as irrigators and arable farmers, in support of the Sustainable Water Programme of Action ("SWPA").  PSRG was asked to develop the Plan by the Ministry of Agriculture and Forestry and the Ministry for the Environment to address the overall objectives of SWPA.  However, concerns over public reaction to the document have resulted in the decision not to make the Plan publicly available.  Instead, PSRG will begin engaging with regional authorities to discuss implementation of the plan.

Transmitting Renewable Energy

The Electricity Commission has released a draft report for public consultation on the transmission investments required for renewable energy.  It focuses on hydroelectric, wind and geothermal generation on the basis that they are the only economically viable technologies at present.  On that basis, solar power is excluded.

The report identifies potential opportunities for efficient management of the grid, including investment in upgrades and transmission alternatives.  The information contained in this report, and submissions received in relation to it, is intended to be used in preparing and finalising the Grid Planning Assumptions and the next Statement of Opportunities.  The Commission will release a draft of the next Statement of Opportunities later this year.

Submissions on the draft report close 9 May 2008.

Overseas Investment in Auckland International Airport Rejected

On 11 April 2008, Land Information Minister David Parker and Associate Finance Minister Clayton Cosgrove jointly declined the application by the Canadian Pension Plan Investment Board to buy a 40 percent shareholding in Auckland International Airport Limited.

The Ministers stated their decision was based on the law as it stands: “Under the Overseas Investment Act 2005, Ministers are required to decline consent if they are not satisfied that all of the applicable criteria are met.  In this case we are not satisfied that the ‘benefit to New Zealand’ criterion is met”.

Leader of the Opposition John Key responded that the move sends a message to investors that the Labour Government is prepared to play recklessly with investment rules: "Labour has put up a ‘don’t invest here’ sign on the New Zealand sharemarket".

Bills Introduced/Awaiting First Reading

Holidays (Transfer of Public Holidays) Amendment Bill
Type of Bill: Government
Member in Charge: Hon Trevor Mallard

This Bill provides for the transfer of public holidays for employees whose work shifts cross midnight.  It ensures that when a shift spans two days, at least one of which is a public holiday, an agreement can be reached for the public holiday to be transferred to cover one whole shift.

Walking Access Bill
Type of Bill: Government
Member in Charge: Hon Damien O'Connor

The Bill is intended to provide for the establishment and administration of walkways in New Zealand and to establish the New Zealand Walking Access Commission ("Commission").  The Bill provides, in general, that members of the public may, at any time and without charge, pass or repass over any walkway on foot and may perform any activity that is reasonably incidental to that passing or repassing. 

The Commission is to lead and co-ordinate the provision of public access to the outdoors, especially around the coast, lakes, and along rivers. The Commission's responsibilities will include the provision of information about the location of existing public access, the provision of a code of responsible conduct for the guidance of the public and landholders in respect of recreational access to the outdoors, and the facilitation and funding of negotiations for new public access across private land.  

Bills At Select Committee

Employment Relations (Breaks and Infant Feeding) Amendment Bill

The Employment Relations (Breaks and Infant Feeding) Amendment Bill was read for the first time and referred to the Transport and Industrial Relations Committee.  Submissions are not being called for.  The Committee is due to report back on 22 July 2008.

Bishop Suter Art Gallery Governance Restructuring Bill

The Bishop Suter Art Gallery Governance Restructuring Bill was read for the first time and referred to the Local Government and Environment Committee. Submissions close on 21 May 2008.  The Committee is due to report back on 30 June 2008.

Christchurch City Council (Lancaster Park) Land Vesting Bill

The Christchurch City Council (Lancaster Park) Land Vesting Bill was read for the first time and referred to the Local Government and Environment Committee.  Submissions close on 6 June 2008.  The Committee is due to report back on 15 October 2008.

Walking Access Bill

The Walking Access Bill was read for the first time and referred to the Local Government and Environment Committee.  Submissions close on 21 May 2008.  The Committee is due to report back on 31 July 2008.

Wanganui District Council (Prohibition of Gang Insignia) Bill

The Wanganui District Council (Prohibition of Gang Insignia) Bill was read for the first time and referred to the Law and Order Committee.  Submissions are not being called for.  The Committee is due to report back on 15 October 2008.

Open For Submissions

Submissions Closed

Bills Reported Back / Awaiting Second Reading

• Protected Disclosures Amendment Bill
• Treaty of Waitangi (Removal of Conflict of Interest) Amendment Bill (the Justice and Electoral Committee recommended that this Bill not be passed)
• Waste Minimisation (Solids) Bill

Bills Delayed

The following Bills have been delayed:

• Summary Offences (Tagging and Graffiti Vandalism) Amendment Bill (Select Committee Report delayed from 21 April to 5 May)
• Regulatory Responsibility Bill (Select Committee Report delayed from 1 May to 1 July)
• Injury Prevention, Rehabilitation, and Compensation Amendment Bill (No 2) (Select Committee Report delayed from 12 May to 3 June)
• Arms Amendment Bill (No 3) (Select Committee Report delayed from 30 April to 3 June)

Bills Passed Second Reading / Awaiting Third Reading

Family Courts Matters Bill
Māori Purposes Bill (No 2)
Mauao Historic Reserve Vesting Bill

Second Reading Negatived

None

Supplementary Order Papers

SOP 202 Family Courts Matters Bill
Member in Charge: Hon Rick Barker
Type: Motion to divide Bill

This SOP divides the Family Courts Matters Bill into the following 12 Bills:

• Adoption Amendment Bill
• Care of Children Amendment Bill
• Child Support Amendment Bill
• Children, Young Persons, and Their Families Amendment Bill
• Domestic Violence Amendment Bill
• Family Courts Amendment Bill
• Family Proceedings Amendment Bill
• Family Protection Amendment Bill
• Intellectual Disability (Compulsory Care and Rehabilitation) Amendment Bill
• Mental Health (Compulsory Assessment and Treatment) Amendment Bill
• Property (Relationships) Amendment Bill
• Protection of Personal and Property Rights Amendment Bill

SOP 201 Family Courts Matters Bill
Member in Charge: Hon Rick Barker
Type: Substantive amendment

This SOP amends the Family Courts Matters Bill to provide for the appointment of Senior Family Court Registrars.  Senior Family Court Registrars will be able to make orders and give directions in Family Court proceedings, in relation to such matters as are specified in regulations made by the Governor-General by Order in Council.

SOP 200 Family Courts Matters Bill
Member in Charge: Hon Rick Barker
Type: Substantive amendment

This SOP amends the Family Courts Matters Bill to make minor technical drafting improvements.

SOP 199 Family Courts Matters Bill
Member in Charge: Hon Rick Barker
Type: Substantive amendment

This SOP amends the Family Courts Matters Bill by:

• substituting an expanded definition of "approved provider" for the purposes of the Care of Children Act 2004 so that it includes a supervised contact service provider approved by the Secretary for Justice, or by an officer of the Family Court, who must be nominated by the Family Court or Registrar;
• providing that, where supervised contact with a child is imposed as a special condition of a protection order under the Domestic Violence Act 1995, the Court must specify whether the supervised contact is to occur under the supervision of an approved provider or in the immediate presence of a person approved by the Court; and
• providing for the number of sessions of supervised contact supervised by an approved provider and for the fees in respect of that contact to be determined in accordance with regulations or, in the absence of regulations, the Registrar of the Court.

SOP 198 Births, Deaths, Marriages and Relationships Registration Amendment Bill
Member in Charge: Hon Rick Barker
Type: Substantive amendment

This SOP makes minor drafting amendments to the Births, Deaths, Marriages, and Relationships Registration Amendment Bill so that it is consistent with the enactment of the Human Tissue Act 2008.

SOP 197 Māori Purposes Bill (No 2)
Member in Charge: Hon Parekura Horomia
Type: Motion to divide Bill

This SOP divides the Māori Purposes Bill (No 2) into the:

• Māori Commercial Aquaculture Claims Settlement Amendment Bill;
• Māori Fisheries Amendment Bill;
• Te Ture Whenua Māori Amendment Bill / Māori Land Amendment Bill; and
• Treaty of Waitangi Amendment Bill.

SOP 196 New Zealand Geographic Board (Ngā Pou Taunaha o Aotearoa) Bill
Member in Charge: Hon David Parker
Type: Substantive Amendment

This SOP amends the New Zealand Geographic Board (Ngā Pou Taunaha o Aotearoa) Bill by:

• changing the commencement date to a date to be appointed by the Governor-General by Order in Council, to ensure that the Act does not come into force until the requisite funding is allocated to enable the Board to undertake its additional functions under this Bill;
• providing a new definition and several corrections to specify the scope of the jurisdiction of the Board in terms of the Antarctica Act 1960 and to correct the citation of that place name;
• changing the scope of the consultation required by s 25; and
• clarifying that the Board must appoint the chair of any committee that is established.

Bill Passed Third Reading

Manukau City Council (Control of Graffiti) Bill
Copyright (New Technologies) Amendment Bill
Electricity (Disconnection and Low Fixed Charges) Amendment Bill
Human Tissue Bill

Acts Assented

Appropriation (2006/07 Financial Review) Act 2008
Waitakere Ranges Heritage Area Act 2008
Melanesian Trusts (Income Tax Exemption) Amendment Act 2008
Biosecurity Amendment Act (No 2) 2008
Hazardous Substances and New Organisms Amendment Act 2008
Securities (Local Authority Exemption) Amendment Act 2008
Corrections (Social Assistance) Amendment Act 2008
Customs and Excise (Social Assistance) Amendment Act 2008
Injury Prevention, Rehabilitation, and Compensation (Social Assistance) Amendment Act 2008

Regulations

Commodity Levies (Feijoas) Order 2008
Hazardous Substances (Fireworks) Amendment Regulations 2008
Trans-Tasman Mutual Recognition (Special Exemptions Extension) Order 2008
Injury Prevention, Rehabilitation, and Compensation (Motor Vehicles Levies) Regulations 2008
Fire Service Levy Amendment Order 2008
Marine Reserve (Tapuae) Order 2008
Building (Building Code: Energy Efficiency of Temperature, Humidity, and Ventilation Systems) Amendment Regulations 2008
Building Practitioners (Register of Licensed Building Practitioners) Regulations 2008
Civil Aviation Charges Amendment Regulations 2008
Securities Act (Industrial and Provident Societies) Exemption Amendment Notice 2008
Local Government Elected Members Determination (No 2) 2008

In Committee

The Finance and Expenditure Committee continues to hear submissions on the Climate Change (Emissions Trading and Renewable Preference) Bill.  It has re-opened submissions on the Financial Advisers Bill, and has released a discussion paper to help guide responses.

The Health Committee is hearing submissions on the Public Health Bill.  Issues have been raised in the areas of public health inequalities, the role of nurse practitioners, rising health costs in New Zealand, emergency powers relating to the control of contagious diseases, consent issues relating to the medical examination of children, provisions in the Bill affecting local government, and provisions enabling the establishment of voluntary codes of practice by the Ministry of Health or regulations to address risk factors associated with non-communicable diseases.

The Justice and Electoral Committee continues to hear submissions on the Real Estate Agents Bill.

The Law and Order Committee is hearing submissions on the Policing Bill, including on the issues of the role and powers of the Commissioner and the command structure, the role of non-sworn police officers, improved employment rights for police, victims' rights, and the ability of police to close roads.

The Local Government and Environment Committee continues to hear submissions on the Affordable Housing (Enabling Territorial Authorities) Bill.

The Māori Affairs Committee is hearing submissions on the Waka Umaga (Māori Corporations) Bill.  Issues considered include whether the Bill addresses problems with existing legislation, the provisions for dealing with dissent on a proposed corporate structure (it has been submitted that the Bill is likely to increase debate and litigation), and the Bill's complexity. The New Zealand Māori Council has stated in an oral submission that it opposes the Bill in its current form due to the Bill's level of complexity, which creates the potential for interpretation that would differ from what is intended.

The Transport and Industrial Relations Committee continues to hear submissions on the Public Transport Management Bill and the Injury Prevention, Rehabilitation and Compensation Amendment Bill (No 2).

Income splitting
As part of the confidence and supply agreement that Labour has with United Future, a discussion document has been prepared on income splitting for tax purposes.

Standards and Accreditation Bill
Cabinet has made policy decisions regarding consultation on a new Standards and Accreditation Bill.

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