NEWS ON POLICY
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IN POLITICS Three strikes? One Of These Things Is Not Like The Other Russell McVeagh Climate Change Seminar more... IN THE NEWS Australian ETS Proposal Water Update
Water Conservation Order Kiwisaver Changes Tribunal Reform PROGRESS OF LEGISLATION Bills Introduced/Awaiting First Reading more...
Bills Open for Submissions more... Bills Reported Back / Awaiting Second Reading more... Bills Passed Second Reading / Awaiting Third Reading more... Supplementary Order Papers more... Bills Passed Third Reading more... Acts Assented more... Regulations more... IN COMMITTEE more... IN CONSULTATION more...
LEGISLATION IN THE WINGS more...
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A Matter Of Opinion Three Strikes?It may cross our minds in the deeper watches of the night, but no-one is quite prepared to voice the possibility that Winston Peters' time in the political trenches may at last be up. Always a survivor, the Silver Fox has demonstrated a canny appreciation of what drives his support base. Crafting his positions accordingly, Peters has been able to galvanise support as and when he needs it. For those discontented with the standard political choices and susceptible to his particular brand of jingoism, Peters has provided an alternative. Whilst Peters' policies may be simplistic they are the work of an astute political gamesman. A fund for the purchase of strategic assets; the 'I told you so' of his comments on Asian immigration, these are part and parcel of what his supporters and the odd commentator might call 'the old magic'. But Peters' astuteness in playing to his particular bit of the electorate has not been matched by his management of wider public perception of things like the donation of election over-expenditure to charity, his acceptance of the famous 'baubles of office', and, most recently, the donation of billionaire Owen Glenn to the legal challenge mounted against Bob Clarkson's Tauranga win in 2005. Even so, it continues to be true that Peters can rely on his core constituency. As one NZ First conference goer said on the weekend, "right or wrong he's still got my support". Just as with the main political parties, Peters has a bedrock of support. But just as with the main parties he also has a softer constituency that can be swayed by negative public sentiment of the sort that now surrounds his sophism over when a donation is not a donation. That brand of sophism - the same applied to Peters' acceptance of the baubles of office - in the past has raised a grin. It played well with those fond of someone able to raise a cheeky digit to the political process. But now is not then and a different approach is needed. The appearance of genial impudence can soon morph into an appearance of hypocrisy and, in the current game, can become a strike when, in the public eye, there has been one strike too many. One Of These Things Is Not Like The OtherWith the release of the Green Paper on Australia's version of an emissions trading scheme, those aligned with the New Zealand Government have been quick to point to the similarities. The detail of that is discussed here. But a closer examination shows a few distinctions that might appear alien to New Zealanders used to bearing the costs of newer and better Government policies. Recognising that the advent of an ETS scheme will have massive economic impact, the Australians have delivered not only messages of reassurance but proposals for transition that will allow people and the economy time to adjust. A series of "key commitments" have been outlined. They are:
Some of these things have been talked about in New Zealand - most particularly the familiar territory of compensating beneficiaries and those on fixed incomes. But a lot have not, or have been dismissed out of hand as unaffordable, or inconsistent with the economic signals Government wants to send. Russell McVeagh Climate Change Seminar
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Australian ETS ProposalLast week, Federal Minister for Climate Change and Water, Penny Wong, released the much anticipated Green Paper setting out the Federal Government's preferred model for an emissions trading scheme, to be called the Carbon Pollution Reduction Scheme ("Scheme"). The Scheme is to operate as a cap and trade model as follows:
The Scheme will cover all six greenhouse gases and will apply to the stationary energy, industrial processes, fugitive emissions, waste, and transport sectors. It will also cover forestry on an opt-in basis (forests established after 1990 will be eligible to receive permits for carbon sequestration). Notably, the agriculture sector (which accounts for only 16% of Australia's emissions) will not be included in the Scheme. The Government has committed to making a final decision in 2013 on whether agriculture will enter the Scheme in the future, but has guaranteed that this sector will not enter the Scheme before 2015 at the earliest.
Although it is planned that the Scheme will have the ability to link to other international trading schemes, the Government proposes to limit the volume of international units (eg CERs) that can be surrendered for compliance with the Scheme (to a maximum percentage of that entities' obligation). The details around this are yet to be confirmed. The Government is now calling for submissions on the Green Paper, after which it will release a White Paper and draft legislation in December 2008. Water UpdateNew National Environmental Standards are on the way, relating to:
The Ministry for the Environment ("MFE") is consulting on a proposed National Environmental Standard for the treatment of onsite waste-water. The Standard will establish a framework under which regional councils will require property owners with an on-site wastewater system to obtain and hold a current warrant of fitness for their system. Regional councils will identify the areas where the proposed standard would apply, based on a set of environmental criteria. Submissions close on 26 September. MFE is also aiming to get recommendations to Cabinet by the end of the year for the drafting of new National Water Measuring Standards. The Ministry has been working with a taskforce of territorial authorities, the primary sector and manufacturers to work out an implementation programme to recommend to Cabinet. The Standards will be introduced by way of regulations and will affect about 20,000 operations. A significant number of these are dairy farms. All existing users will be given some time to introduce meters and all new consents will require meters and data logging systems. The average cost is estimated at around $2,000 although a significant variable will be whether data will be transmitted electronically to territorial authorities. Bulk tendering for meters and data loggers is already being discussed in the Canterbury region. Water Conservation OrderThe Associate Minister for the Environment, Hon Nanaia Mahuta, has appointed a special tribunal to consider an amendment to the water conservation order on the Kawerau River in Central Otago. The tribunal will comprise Richard Fowler (lawyer, Wellington), Prof Carolyn Burns (zoologist, University of Otago, Dunedin) and Rauru Kirikiri (Māori issues consultant). The amendment application was made by Fish and Game New Zealand. Its aim is to prohibit damning or diversion of the Nevis River, a tributary of the Kawerau River. The amendment application is based on scientific research which has revealed new information about sensitive trout and galaxiid populations and the historical importance of the nineteenth century alluvial gold mining sites on the river. The original water conservation order on the Kawerau was promulgated in 1997. Water conservation orders are made under Part 9 of the Resource Management Act 1991 and are to protect "outstanding amenity or intrinsic values" of water, whether in its natural state or not. Orders can specify minimum flows, prohibit damming and other environmental conditions. Regional councils must adhere to orders when granting resource consents. Since introduced by Muldoon's government in 1981, 14 water conservation orders have been promulgated. Kiwisaver ChangesThe Government announced changes to the Kiwisaver scheme last week through amending the Employment Relations Act 2000. The Minister of Labour, Hon Trevor Mallard, promised to introduce legislation abolishing "total remuneration packages". Under the proposed changes an employer could not pay two employees different amounts by virtue of one being a Kiwisaver member and the other not. Mr Mallard said that evidence existed that some employers paid their compulsory 1% Kiwisaver contribution out of the entitled employee's salary. The result, he said, was that some employees were "paid less each week in their take home pay than another employee doing the same task". Another change the ERA amendments would introduce would be outlawing an employer offering "non-Kiwisaver members a 4% pay rise, and offer Kiwisaver members a 3% pay rise", Mr Mallard continued. The proposed amendments to the ERA will not alter employer eligibility to employers' tax credits nor will the proposed amendments alter any employment agreements entered into prior to the amendments coming into force. The Kiwisaver employer contribution is currently 1% of an employee's gross income but this figure rises to 2% on 1 April 2009. The National Party has yet to release its Kiwisaver policy. Business New Zealand's Chief Executive, Phil O'Reilly, said that the ERA amendments would hurt employees. He said the changes would create uncertainty amongst employers because they would have to pay all employees more and "then cop even more costs when some employees decide to join Kiwisaver". The result would be "extra conservative pay increases". The country's largest union, the Engineers Printers and Manufacturers Union, meanwhile praised the changes. The EPMU's National Secretary, Andrew Little, said the changes ensured working people who entered Kiwisaver were not disadvantaged. Mr Little also suggested that employers who passed the costs of their 1% Kiwisaver contribution onto their employees were "simply dishonest" because they continued to receive "considerable tax credits". The CTU President, Helen Kelly, meanwhile said that the ERA amendments meant that the employer contributions were "a new entitlement workers can expect, and not something their employer can trade off". The Government intends that this legislation be introduced and passed before the end of the year, which raises questions about the management of the Select Committee process. The Government may seek to avoid reference to Committee by introducing the amendment through a supplementary order paper. Given the material nature of the amendment this is likely to be attacked as an abuse of process. Tribunal ReformLegislation to rationalise the country’s 47 tribunals may be introduced in mid-2009. The Ministry of Justice has published a consultation paper "Tribunals in New Zealand: the Government's Preferred Approach to Reform", following earlier work with the Law Commission. It proposes that 22 tribunals be brought together in one structure, the Tribunal Service. This would be a new unit within the Courts structure, similar to the Environment Court (also a stand-alone specialist body) and on the same hierarchical level as the District Court. The Tribunal Service would headed by a Principal Judge and the Ministry of Justice would be its administering body. It is also proposed that four tribunals be disestablished - the Copyright Tribunal, Maritime Appeal Authority, Land Valuation Tribunals, and Health Act Boards of Appeal. These hear few cases and it is considered that the District Court can carry out their functions. Submissions close on 29 August. |
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IN PARLIAMENT |
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Bills Introduced/Awaiting First ReadingPatents Bill This Bill is designed to replace the Patents Act 1953. It will update the New Zealand patent regime to ensure that it provides an appropriate balance between providing adequate incentives for innovation and technology transfer, while ensuring that the interests of the public and the interests of Māori in their traditional knowledge are protected. Reserves and Other Lands Disposal Bill This Bill makes a number of changes to the status of parcels of land, land titles, and previous Reserves and Other Lands Disposal Acts affecting 16 locations around New Zealand. Bills Referred To Select CommitteeNone
Bills Reported Back / Awaiting Second ReadingHolidays (Transfer of Public Holidays) Amendment Bill Bills Passed Second Reading / Awaiting Third ReadingNone Supplementary Order PapersNone Bills Passed Third ReadingNone Acts AssentedLand Transport Management Amendment Act 2008 RegulationsElectricity (Transpower's Pricing Methodology) Regulations Revocation Order 2008 In CommitteeThe Finance and Expenditure Select Committee continues to hear submissions on the Financial Advisers Bill and the Financial Service Providers (Registration and Disputes Resolution) Bill. If enacted in its current form, the Financial Advisers Bill would introduce a conduct and disclosure regime for those offering financial advice. The Committee heard from myriad submitters, including the Banking Ombudsman, trading banks, mortgage brokers, New Zealand Institute of Chartered Accountants, social service providers, NZX and insurers. The Finance and Expenditure Select Committee also released its report on the Reserve Bank of New Zealand Amendment Bill (No 3), recommending its passage with amendments. The Health Select Committee heard two petition submissions last week, the first from the Roslyn Freeth on behalf of the Pelorus Area Health Trust (seeking a reclassification to rural to assist with GP retention) and the second from the National Organisation for Normalisation of Marijuana Laws (NORML) (seeking marijuana's recognition as a medicinal remedy). The Justice and Electoral Select Committee The Justice and Electoral Select Committee also released its report on the Lawyers and Conveyancers Bill (No 2), recommending its passage with amendments. The Committee also released its report on the Trustee Amendment Bill, recommending by majority its passage with amendments (the National Party in the minority). The Law and Order Select Committee commenced submission hearings on the Serious Fraud Office (Abolition Transitional Provisions) Bill. The Bill would abolish the SFO and transfer its functions to the Police. The Local Government and Environment Select Committee heard submissions on the Christchurch City Council (Lancaster Park) Land Vesting Bill. The Bill facilitates the Council's funding of Lancaster Park's redevelopment in exchange for the assets of the Victory Park Board. The Local Government and Environment Select Committee released its report on the Affordable Housing (Enabling Territorial Authorities) Bill, recommending its passage with amendments. The Standing Orders Committee released its report on the Parliamentary Services Amendment Bill, recommending its passage with amendments. The Bill clarifies election time funding for incumbent MPs who are not re-elected and newly-elected MPs who have not yet been declared elected. The Transport and Industrial Relations Select Committee released its report on the Holidays (Transfer of Public Holidays) Amendment Bill, recommending it pass without amendments.
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IN CONSULTATION |
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What's New
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| RELEASED BY... | ISSUE | SUBMISSIONS CLOSE ON... |
| Commerce Commission | Mergers and Acquisitions Clearance Process Guidelines Next Generation Networks Study – consultation paper; letter |
30 July 29 August |
| Electricity Commission | Reconciliation Participant and Distributor Audit Guidelines (+ Appendix 1 & Appendix 2) | 25 July |
| Environmental Risk Management Authority | Re-notification of Application for Biological Control of Tradescantia | 29 July 14 August |
| Fisheries – Min of | Review of Sustainability Measures and Other Management Controls for the 2008-09 Fishing Year Maori Commercial Aquaculture Settlement: Valuation Methodology Report; Peer Review Report |
11 August 31 October |
Trans-Tasman Court Proceedings Agreement
Cabinet approved the signing of an agreement with Australia on court proceedings and regulatory enforcement. The agreement will be considered by a Select Committee.
Aquaculture Bills
Cabinet has approved the introduction of two aquaculture Bills which relate to the application process and the consideration of applications.
Employment Relations Act 2000 Amendments
The Minister of Labour, Hon Trevor Mallard, has announced proposed amendments to the ERA which will outlaw "total remuneration packages". Cabinet has approved the content of the Bill.
Fisheries Amendment Bill
Cabinet approved the introduction of the Bill in response to a recent court decision.
Private Security Personnel and Private Investigators Bill
Previously discussed in Watching Brief. Cabinet indicates that the Bill is not ready for introduction.
Trans-Tasman Court Proceedings Agreement
Cabinet approved the signing of an agreement with Australia on court proceedings and regulatory enforcement. The agreement will be considered by a Select Committee.
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© Russell McVeagh 2005. All rights reserved.