NEWS ON POLICY AND POLITICS
27 June, 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

Greens opt for the political margins?
The wholesale adoption of environmentalism by New Zealand's political mainstream, has left the Green Party struggling for an identity. more...

IN OTHER NEWS

Waste levy bill delayed
The Local Government and Environment Select Committee has deferred the report back of the Waste Minimisation (Solids) Bill to 31 October. more...

Local body spending … and revenue raising more...

Review of Financial Products Providers more...

Kiwisaver more...

Official Statistics Out more...

IN PARLIAMENT

Bills Introduced more...

At Select Committee

Open for submissions more...
Submissions closed more...

Delayed more...

Bills Reported Back/Awaiting Second Reading more...

Supplementary Order Papers more...

Bills Passed more...

Regulations more...

IN THE WINGS more...

IN CONSULTATION more...

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What's New
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Current

IN POLITICS

Greens opt for the political margins?

The wholesale adoption of environmentalism by New Zealand's political mainstream has left the Green Party struggling for an identity.

Jeanette Fitzsimons' 'fact not faith' comments on climate change earlier in the year and her recognition of the role of the market in successful environmental solutions suggested that the Party might be trying to build credibility with the political centre as a non-partisan and therefore uncompromised voice on environmental issues.

But such a rebadging would have involved a quantum shift for a Party content with being pigeon-holed as political 'watermelons' (green on the outside and red in the middle). The socialist roots of Keith Locke and Sue Bradford, and the social crusading of Tanczos and Kedgley has made left-liberalism a natural philosophical base. Moving from it was never going to be easy.

And if Sue Bradford's recent championing of votes for 16 year-olds suggests, it is simply a bridge too far. Coming full on the heels of her well-meaning essay into smacking bans, this latest proposal runs the risk of reinforcing perceptions of the Greens as less an environmental party than one on the political fringe.

Some might say that this is all that the Party has left to it. Certainly, the case for abandoning its more radical social brand in favour of a dedicated environmental focus is difficult to make when Labour and National are doing their level best to out-green them on their home turf.

But what that calculation ignores is whether the Greens have a credible raison d'etre beyond environmentalism. It also neglects the doubtful wisdom of trying to out-left Labour when the electorate is leaning increasingly to the right. Most tellingly of all, it fails to recognise the potential for an environmental advocacy that stands apart from political left and right and keeps the main parties honest. Fitzsimons seemed to be taking some steps in that direction, only to be undercut by Bradford and a policy position that, by any judgement, is marginal at best.

For as long as the main parties paid lip-service to environmental concerns the Greens had licence to range across the extremes of the social policy spectrum. They were, after all, the only game in town. No doubt the loyalties of the Party's green support base will remain strong, but in the face of credible alternatives, the Greens will need to be careful that they don't test that loyalty by one too many appeal to those on the political margins. It is not a long-term survival strategy.

 

IN OTHER NEWS

Waste levy bill delayed

The Local Government and Environment Select Committee has deferred the report back of the Waste Minimisation (Solids) Bill to 31 October. Given the pressures on the Committee and the substantial redrafting of the Bill that has been foreshadowed, the motives behind the delay are probably benign. However, it is fairly noted that the revised timing is also convenient in that it post-dates this year's local body elections (due 13 October) and avoids the risk of a negative public response to anything that smacks of a cash grab by local authorities.

Environment Minister Benson-Pope has remained relatively silent on government's preferences for any revised Bill.  It is, he has said, a matter for the select committee. However, what is known is that Ministers are concerned about the adequacy of voluntary industry management and want the capacity to deal more effectively with those players who are seen as taking advantage of the current regulatory framework. The 'regulate yourselves or we will' model is one with which industry has become very familiar and that generally delivers the outcomes government wants. In this instance, though Ministerial concerns about industry product stewardship give rise to the question whether this time government will be inclined to apply regulatory or economic disincentives in the hope of bringing the recalcitrant into line.

The government's position will be made clearer in a supplementary order paper that is currently in  preparation. Expectations are that it will present four main areas of the government's thinking - product stewardship, waste levies, a container deposit regime and public place recycling.  It's very much a case of watch this space. 

In the meantime, the Ministry for the Environment boxes on with the waste levies concept, endeavouring to dodge the problems of defining what is waste by suggesting that levies should only apply at point of disposal - in this case municipal landfills.

Local body spending … and revenue raising

Statistics New Zealand's March quarter data show a 12 percent increase in local spending over the same quarter last year. This brings the increase for the past five years to 54 percent, ahead of rates revenue rises of 46 percent for the same period.

Potentially easing the growing burden on ratepayers, Commerce Minister Lianne Dalziel announced government's intention to remove some of the obstacles to raising funds from sources other than rates as a means of funding infrastructure projects. The proposed initiative will see the restoration of an exemption for local authorities to the current Securities Act regime when issuing debt securities. The move is intended to bring disclosure requirements for local bodies in line with existing exemptions to the Crown, the Reserve Bank and Housing New Zealand Corporation.

Review of Financial Products Providers

Cabinet has released its decisions on the Review of Financial Products and Providers ("RFPP"). These decisions are intended to complement the Review of Financial Intermediaries, and are intended to rationalise the currently confused regulatory regime to deal with gaps and inconsistencies in the treatment of non-bank financial products and providers.

The main changes include:

  • regulation of financial advisers by a co-regulatory model involving Approved Professional Bodies (APBs) with oversight by the Securities Commission;
  • registration of all financial service providers on a publicly-searchable database;
  • implementing comprehensive consumer dispute resolution and redress mechanisms;
  • licensing trustees and retaining them as frontline supervisors while enhancing the approval and monitoring role of the Securities Commission;
  • making the Reserve Bank of New Zealand the single prudential regulator for banks, non-bank deposit takers and insurers.

The second stage will involve decisions by 30 November 2007 in respect of:

  • supervision by corporate trustees of collective investment schemes and debt issuers;
  • security offerings disclosure;
  • insurer prudential and market conduct regulation;
  • regulation of the governance of mutuals; and
  • portfolio management services.

Details of the decisions and their background can be found on the Ministry of Economic Development's website at www.med.govt.nz.

Kiwisaver

In the coming week, Finance Minister, Michael Cullen will trumpet the introduction of Kiwisaver, in the face of union and employer concern about the practicalities of the scheme. John Key will question the likely uptake of the scheme, noting wryly that if National had introduced the Mark II Version of Kiwisaver, he would be castigated for weeks about giving tax breaks to the 'rich'.

Official Statistics Out

Also this week the nation's official statistics will be released, sending critical signals about economic growth and the probable implications for inflation and interest rates.

 

IN PARLIAMENT

Bills Introduced

Porirua City Pauahatanui (Burial Grounds) Bill (Local)
Hon Luamanuvao Winnie Laban

This Bill confirms the vesting of property in Porirua City Council, and provides for the status, control and management of the Pauatahanui Burial Ground.

At Select Committee

The Crimes (Repeal of Seditious Offences) Bill has passed its first reading and has been referred to the Justice and Electoral Committee.

Open For Submissions

Bill Select committee Submissions close Report due
Crimes (Repeal of Seditious Offences) Amendment Bill Justice & Electoral 17 July 18 December
Education (Tertiary Reforms) Amendment Bill Education and Science 29 June 8 November
Farmers' Mutual Group Bill Primary Production 6 July 12 December
Taxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters) Bill Finance & Expenditure 12 July 16 November


Submissions Closed

Bill Select committee Report due
Airport Authorities (Sale to the Crown) Amendment Bill Transport & Industrial Relations Committee

31 August

Animal Welfare (Restriction on Docking of Dogs’ Tails) Bill Govt Administration 14 December
Armed Forces Law Reform Bill Foreign Affairs, Defence & Trade 14 September
Arms Amendment Bill (No. 3) Law & Order 28 September
Aviation Security Legislation Bill Transport & Industrial Relations 16 July
Births, Deaths, Marriages, and Relationships Registration Amendment Bill Govt Administration 31 October
Building (Late Consent is a Free Consent) Amendment Bill Local Govt & Environment 30 June
Copyright (New Technologies and Performers' Rights) Amendment Bill Commerce 25 July
Corrections (Mothers With Babies) Amendment Bill* Law & Order 21 November
Criminal Proceeds (Recovery) Bill Law & Order 19 September
Employment Relations (Flexible Working Hours) Amendment Bill (set aside for one year from 24 March 06 for further research) Transport & Industrial Relations 31 July
Fisheries Act 1996 Amendment Bill Primary Production 31 August
Health (Drinking Water) Amendment Bill Health 6 August
Human Tissue Bill Health 31 July
Human Tissue (Organ Donation) Amendment Bill Health 31 July
Income Tax Bill Finance & Expenditure 16 July
International Finance Agreements Amendment Bill Foreign Affairs, Defence and Trade 8 November
Marine Reserves (Consultation with Stakeholders) Amendment Bill Local Govt & Environment 31 August
Marine Reserves Bill Local Govt & Environment 31 August
Minimum Wage (Abolition of Age Discrimination) Amendment Bill Transport & Industrial Relations 30 June
Minimum Wage and Remuneration Amendment Bill Transport & Industrial Relations 31 July
NZ Bill of Rights (Private Property Rights) Amendment Bill
Justice & Electoral 28 September
Official Information (Openness of District Health Boards New Zealand) Amendment Bill Health 30 June
Overseas Investment (Queen's Chain Extension) Amendment Bill Local Government & Environment 24 August
Palmerston North Reserves Empowering Amendment Bill Local Government & Environment 27 September
Principles of the Treaty of Waitangi Deletion Bill Justice & Electoral 21 December
Property Law Bill Justice & Electoral 25 June
Resource Management (Climate Protection) Amendment Bill Local Government & Environment 1 November
Sale of Liquor (Youth Alcohol Harm Reduction) Amendment Bill
Law & Order 20 October
Sex Offenders Registry Bill Justice & Electoral 31 August
Statutes Amendment Bill Govt Administration 31 October
Terrorism Suppression Amendment Bill Foreign Affairs, Defence & Trade 28 September
Waste Minimisation (Solids) Bill Local Govt & Environment 31 October
Young Offenders (Serious Crimes) Bill Law & Order 28 September

Bills Delayed

Copyright (New Technologies and Performers' Rights) Amendment Bill (now 25 July)
Health (Drinking Water) Amendment Bill (now 6 August)
Resource Management (Climate Protection) Amendment Bill (now 1 November)
Waste Minimisation (Solids) Bill (now 31 October)

Bills Reported Back / Awaiting Second Reading

Evidence Amendment Bill
Major Events Management Bill
Weathertight Homes Resolution Services (Remedies) Amendment Bill
Therapeutic Products and Medicines Bill

Supplementary Order Papers

SOP 120: State-Owned Enterprises (AgriQuality Limited and Asure New Zealand Limited) Bill: Hon Trevor Mallard

This SOP amends the State-Owned Enterprises (Agri-Quality Limited and Asure New Zealand Limited) Bill. It inserts a new definition of "Examination services" in clause 3 and consequentially amends clause 5. It also adds two new subparts to Part 2 of the Bill.

New subpart 3 requires the Commerce Commission to investigate and report on the prices charged for animal material and animal products examination services provided in accordance with the Animal Products Act 1999.

New subpart 4 provides for the Crown to continue to negotiate with its international trading partners in order to allow animal material and animal product examination services to be provided by agencies other than the Crown.

SOP 119: Taxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters) Bill: Hon Peter Dunne

This SOP amends the Taxation (Annual Rates, Business Taxation, Kiwi Saver, and Remedial Matters) Bill by inserting an amendment to the definition of finance lease in the Income Tax Act 2004, together with consequential amendments to that Act. The amendment to clause 2 provides for the commencement of the amendments on 20 June 2007, which is the date of the announcement of the change.

SOP 118: Wills Bill: Metiria Turei

This SOP contains amendments to the Wills Bill to enable a person under 18 years, who has dependent children but are not (nor ever have been) in marriage, civil union, or de facto relationship, to make wills without prior Family Court approval. This SOP recognises that these young people have entered into the adult community and are expected to bear the full responsibilities as adults therefore, it is important that the law recognises their capacity.

Bills Passed

Social Security Amendment Bill
State Owned Enterprises (Agriquality and Asure New Zealand Limited)

Regulations

KiwiSaver Amendment Regulations 2007
Commodity Levies (Southern Scallops) Order 2007
Forestry (East Coast) Grants Amendment Regulations 2007
Takeovers Code (Utilico Limited) Exemption Notice 2007
Local Government Elected Members Determination 2006 Amendment Determination 2007 Takeovers Code (CanWest MediaWorks (NZ) Limited) Exemption Notice 2007
Takeovers Code (Class Exemptions) Notice (No 2) 2001 Amendment Notice 2007
Takeovers Code (Offers Unconditional as to Level of Acceptance) Exemption Revocation Notice 2007
Public Finance (Departmental Guarantees and Indemnities) Regulations 2007
Commodity Levies (Vegetables and Fruit) Order 2007
Dairy Industry Restructuring (Reallocation of Licences) Order 2007
State Sector (New Zealand Food Safety Authority) Order 2007
Ombudsmen Act (Schedule 1) Order 2007
Coroners (Fees) Amendment Regulations 2007
Coroners (Pathologists Fees) Regulations 2007
Social Security (Income Exemption: Health Services and Disability Support Services Funded or Provided by the Crown) Regulations 2007
Corrections Amendment Regulations 2007
Immigration Amendment Regulations (No 2) 2007

 

IN THE WINGS

Financial Products and Providers

Legislation will be introduced before the end of the year to implement the first stage of the Government's proposed changes for the financial sector.

The Minister has committed to announce plans for Phase Two implementation before the end of the year.

Limited Partnerships

Legislation will be introduced next month to replace the special partnerships section of the Partnerships Act 1908 with a new section on limited partnerships.

Securities Act - exemption for Local Authorities

The Government is planning on restoring the exemption for local authorities under the Securities Act disclosure regime in an Amendment Bill to be introduced later this year.

 

IN CONSULTATION

What's New

AGENCY ISSUE SUBMISSIONS CLOSE ON...
(2007)
Australia NZ Therapeutic Products Authority

Draft Standard for the Uniform Scheduling of Medicines and Poisons;

Draft Scheduling Policy Framework

25 July

25 July

Commerce Commission Unbundled local loop and co-location regulated services 28 June
Economic Development, Min of

SME Compliance Costs

Proposed National Environmental Standards for Telecommunications Facilities

16 July

10 August

Fisheries, Min of

Review of Sustainability Measures and Other Management Controls for the 2007-08 Fishing Year

Marine Protected Areas Policy and Implementation Plan; MPA Protection Standard and Classification System
(joint consultation with Dept of Conservation)

27 July


31 August

Health, Min of A Career Framework for the Health and Disability Workforce 31 July
Land Information NZ

Standard for title adjustments arising from water boundary changes;

Guideline for accretion claims;

Guideline for dry stream or river bed claims;

Guideline for registration under the Crown Pastoral Land Act 1998;

Standard for notification of re-entry by lessor

Standard for New Zealand Geodetic Datum 2000; Standard for New Zealand Geodetic Datum 2000 Projections; Standard for Ross Sea Region Geodetic Datum 2000

11 July


11 July

11 July

11 July


11 July

30 July

Land Transport NZ Manual of Traffic Signs and Markings
27 July
NZ Qualifications Authority Good Practice Guidelines for the Moderation of Standards Based Assessment 25 July
Social Development, Min of

Out of School Services
(joint consultation with Families Commission)

22 July
Transport, Min of Mandatory Vehicle Immobilisation Initiative 12 July



Current

RELEASED BY... ISSUE SUBMISSIONS CLOSE ON...
Australia NZ Therapeutic Products Authority

Draft Order: Packaging Requirements for Specified Therapeutic Products

Medical Device Standards for Medical Devices Required to be Sterile

Conformity Assessment Standard for Quality Management Systems and Quality Assurance Techniques for the Manufacture of Medical Devices

13 July


13 July

13 July

Building & Housing, Dept of Energy efficiency of buildings (domestic hot water and commercial heating, ventilating and air-conditioning systems)
29 July
Conservation, Dept of Mountain Biking on Public Conservation Land
30 June
Economic Development, Ministry of

Review of Regulatory Control Provisions Under the Commerce Act 1986

Review of the Clearance and Authorisation Provisions under the Commerce Act 1986


6 July


10 August

Electricity Commission

Market Design Review Issues Paper

29 June

Environment, Ministry for the National Policy Statement on Electricity Transmission 25 July
Fisheries, Ministry of Ten new species for Quota Management System 29 June
Food Standards Australia NZ Mannoproteins as a food additive for wine; Steviol glycosides as intense sweeteners; Ratio of long chain polyunsaturated fatty acids in infant formula; Food derived from amylase-modified corn line 3272; Review of cyclamate permissions; 4 July
Health, Ministry of

Terms of Reference for the Review of the Health
Practitioners Competence Assurance Act 2003

 

6 July

Inland Revenue Department

Deductibility of feasibility expenditure

Transfer of depreciable property between associated persons

30 June

2 July

Internal Affairs, Dept of New Fire Legislation: A framework for New Zealand's fire and rescue services and their funding
30 June
Justice, Min of

Preferred Options for Reform of the Real Estate Agents Act 1976

10 July
Land Information NZ Standard for memorials 3 July
Land Tansport NZ Vehicle exhaust emission standards
9 July
Law Commission / TPK Waka Umanga (Maori Corporations) Bill (consultation) 31 July
Police, NZ Policing Directions for the 21st Century 31 July
Standards NZ

Electricity and Gas Industries – Safety Management Systems for Public Safety

Electrical Installations - Floor and Ceiling Heating Systems

Automatic Fire Sprinkler Systems


13 July


20 July

23 uly

Tertiary Education Commission Foundation learning progressions for listening, speaking, reading, writing & numberacy - draft consultation document
30 June

 


Links


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 04 495 7532
[email protected]
Doug Bailey - Consultant
Ph 04 495 7572
[email protected]

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