NEWS ON POLICY AND POLITICS
27 March, 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 POLITICS

A matter of opinion
Speaking to the National Press Club in Wellington, John Key took the question of National's position on the role place and size of the state sector, head on. more...

IN THE NEWS

Discussion document released on ecological flows and water levels
The Ministry for the Environment has released a Proposed National Environmental Standard on Ecological Flows and Water Levels for public comment. more...

NPS on Electricity Transmission
A National Policy Statement on Electricity Transmission has been released. more...

Government Stance on Forestry Carbon Price Negotiations
Carbon News, a new daily online intelligence service for the carbon markets, states that the government is lobbying its Kyoto Protocol partners to introduce forest offsetting to the rules covering the second commitment period from 2012 to 2025. more... 

PROGRESS OF LEGISLATION

Bills Introduced/Awaiting First Reading more...

Commerce Amendment Bill
Family Proceedings (Paternity Orders and Parentage Tests) Amendment Bill

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...

Supplementary Order Papers more...

Bills Passed Third Reading more...

Acts Assented more...

Regulations more...

IN COMMITTEE

Reports on proceedings of the Committees on Health, Justice and Electoral, Transport and Industrial Relations, Finance and Expenditure, Local Government and Environment, and Commerce more...

LEGISLATION IN THE WINGS more...

IN CONSULTATION more...

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What's New
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Current

IN POLITICS

A matter of opinion…

Speaking to the National Press Club in Wellington, John Key took the question of National's position on the role place and size of the state sector, head on.

The risk he faced in doing so was one of handing the government a stick to beat him with, particularly at a time when the media seemed keen to get some licks in of its own.

Certainly, the Prime Minister's hair-trigger readiness to link National's calls for tax cuts with cuts in public services had given National's strategists pause. Against that backdrop, calls for a halt to the steady growth of the core public service were sure to be held out as evidence of National's dark intention to make the holes in the nation's safety net of public services a lot larger.   

And so it proved. But the fact that Key's message coincided with revelations of a forthcoming spend-up on what looked like a world trip for Parliament's retirees, took more than a little shine off the government's scare mongering. Evidence of a right wing conspiracy was made even harder to come by as a result of Key's singular focus on Wellington bureaucracies. Playing to the widely held perception - even amongst senior state servants - that Wellington was awash with badly targeted cash, Key pointed out that a dollar spent on chair warmers in the capital was a dollar not spent on front-line services.

It was message that will resonate with those living outside Wellington's beltway - not least in Auckland.  The citizen-government relationship might be the stuff of many a fuzzy departmental statement of intent, but as the sector's own research shows, it is looked upon more cold-bloodedly by those more interested in the state being there when it's needed and up to the job.

 

IN THE NEWS

Discussion document released on ecological flows and water levels

The Ministry for the Environment has released a Proposed National Environmental Standard on Ecological Flows and Water Levels for public comment.

The proposed NES is part of the Sustainable Water Programme of Action and is intended to complement and enhance the existing Resource Management Act process for establishing environmental flows and water levels through regional plans. 

The specific objectives of the NES will be to:

  • ensure that all resource consent decisions on applications to take, use, dam and divert water from rivers, lakes, wetlands and aquifers are made in the context of a clear limit on the extent to which flows and water can be altered;
  • ensure that all resource consent decisions on applications to take, use, dam and divert water from rivers, lakes, wetlands and aquifers are made in the context of a clear specification of available water; and
  • to reduce conflict and provide consistency on the appropriate technical methods used to assess the ecological component of environmental flows and water levels.

Commenting on the document's release, Environment Minister Hon Trevor Mallard observed that the future health of the nation's rivers and lakes depended on greater consistency in the way in which demands on water are managed. "The standard proposes that interim limits be imposed for regional plans which do not already place limits on the alteration to flows and water levels," Mr Mallard said.  He added that if the levels of rivers, groundwater systems, lakes and wetlands run too low it can put fish and plant life at risk and make them less enjoyable.

The discussion document is available on www.mfe.govt.nz.  The submissions process will begin on 29 March and close on 31 July 2008.

NPS on Electricity Transmission

A National Policy Statement on Electricity Transmission was released by the Government this month, and will take effect from 28 days after notification in the New Zealand Gazette.  The Statement provides guidance to local government for the management and future planning of the national grid.  It requires decision makers to consider the national significance of a reliable and secure electricity supply, as well as any adverse environmental effects, in the assessment of proposals affecting New Zealand's national grid.  

In introducing the Statement, Trevor Mallard made clear that its main purpose is "to make it explicit that electricity transmission is a matter of national significance under the Resource Management Act in order to meet the electricity needs of present and future generations of New Zealanders".

The Government is also preparing a National Policy Statement on Renewable Electricity Generation, covering energy produced from solar, wind, hydro, geothermal, biomass, tidal, and wave and ocean current sources.  A board of inquiry will be charged with the development of this statement.  The two policy statements are key elements for the Government in its pursuit of the National Energy Strategy, with its goal of 90% renewable energy by 2025.

Government Stance on Forestry Carbon Price Negotiations

Carbon News, a new daily online intelligence service for the carbon markets, states that the Government is pleading with its Kyoto Protocol partners to introduce forest offsetting to the rules covering the second commitment period from 2012 to 2025.

Currently under the Kyoto Protocol no carbon charges will be levied if the landowner immediately replants a harvested pre-1990 forest.  Carbon News, quoting a "well-placed source", claims New Zealand is calling for pre-1990 forests to be allowed to be cleared at no carbon cost, provided a similar amount of new forest is planted elsewhere.  The news service suggests this stance has been formulated partly in response to the demands of the climate lobby group, the Flexible Land Use Alliance.  However, Carbon News goes on to say that New Zealand is alone in this cause and its chances of influencing international opinion are remote.  

Negotiations on changes to the Kyoto Protocol are under way and are expected to be finalised by the end of 2009. 

 

PROGRESS OF LEGISLATION

Bills Introduced/Awaiting First Reading

Commerce Amendment Bill
Type of Bill: Government
Member in Charge: Hon Lianne Dalziel

This Bill proposes fundamental reform of the regulatory control provisions of the Commerce Act 1986.  Amendments are made to Parts 4, 4A, 5 and 6 of the Act.

Part 4 of the Act has generic provisions enabling price and quality control to be imposed where competition is limited and control would be in the interests of acquirers.  The Bill introduces a purpose statement specifically for this Part of the Act to give clearer guidance to the courts and to the regulator that the aim of regulation is to promote investment, in balance with preventing the exercise of market power in non-competitive markets.  Regulations proposed include a requirement for the Commerce Commission to clearly set out the regulatory rules (input methodologies) applying to regulated businesses by 30 June 2010.

The Bill gives the Commerce Commission powers to impose information disclosure requirements, default/customised price paths, and negotiation/arbitration regimes on regulated businesses.  It specifically sets a default/customised price path regime for electricity lines and gas pipelines, and enhanced information disclosure regulation for the three major airport companies (Auckland, Wellington and Christchurch).  Certain consumer-owned lines businesses will also be subject to information disclosure requirements under this Bill. 

The Bill extends the Court's jurisdiction to cover applications for certain orders and breaches of regulatory requirements. These replace current powers that enable the Commission to impose penalties and remedies without reference to the courts

The Bill also provides a power of search for the purpose of determining whether there has been a contravention of the Act and creates offences relating to the Commission's enforcement powers.  Amendments are made to various privileges under the Act.

Family Proceedings (Paternity Orders and Parentage Tests) Amendment Bill
Type of Bill: Member's Bill
Member in Charge: Judy Turner

The purpose of this Bill is to enable a man who has reasonable grounds to believe he either is or is not the father of a child to make an application for a paternity order.  The Bill also empowers the Family Court to order a buccal sample (a cheek swab which can be tested for DNA) be taken from a child whose parentage is at issue or from any person who may be the natural parent so that a parentage test can be carried out in respect of that child.

Bills At Select Committee

None

Open For Submissions

Bill Select committee Submissions close Report due
Children, Young Persons, and Their Families Amendment Bill (No 6) Social Services 28 April 4 September
Commerce Amendment Bill Commerce 9 May 22 July
Corrections Amendment Bill (No 2) Law and Order 8 April 20 August
Financial Advisers Bill Finance and Expenditure 4 April 20 June
Māori Trustee and Māori Development Amendment Bill Māori Affairs 14 May 3 September
Land Transport (Driver Licensing) Amendment Bill Transport and Industrial Relations Submissions not yet called 30 June
Policing Bill Law and Order 28 March 31 May
Waka Umanga (Māori Corporations) Bill Māori Affairs 28 March 10 June


Submissions Closed

Bill Select committee Report due
Affordable Housing: Enable Territorial Authorities Bill Local Government and Environment 10 June
Airport Authorities (Sale to the Crown) Amendment Bill Transport & Industrial Relations Committee

20 June

Alcohol Advisory Council Amendment Bill Health 26 June
Arms Amendment Bill (No. 3) Law & Order 30 April
Auckland Domain (Auckland Tennis) Amendment Bill Local Government and Environment 20 May
Auckland Regional Amenities Funding Bill Local Government and Environment 18 September

Biofuel Bill

Local Government and Environment 15 April
Climate Change (Emissions Trading and Renewable Preference) Bill Finance and Expenditure 10 June
Companies (Minority Buy-out Rights) Amendment Bill Commerce 10 June
Criminal Proceeds (Recovery) Bill Law & Order 25 July
Customs and Excise Amendment Bill (No 3) Foreign Affairs, Defence and Trade 10 June
Dog Control Amendment Bill (No 2) Local Government and Environment 10 June
Education (Establishment of Universities of Technology) Amendment Bill Education and Science 6 May
Electricity Industry Reform Amendment Bill Commerce 10 June
Family Courts Matters Bill Social Services 4 April
Financial Service Providers (Registration and Dispute Resolution) Bill
Finance and Expenditure 10 June
Gambling Amendment Bill (No 2) Government Administration 23 May
Immigration Bill Transport & Industrial Relations 30 June
Injury Prevention, Rehabilitation, and Compensation Amendment Bill (No 2) Transport and Industrial Relations 12 May
Land Transport Amendment Bill (No 4) Transport and Industrial Relations 30 June
Land Transport Management Amendment Bill Transport and Industrial Relations 23 May
Māori Purposes Bill (No 2) Māori Affairs 11 April
Marine Reserves (Consultation with Stakeholders) Amendment Bill Local Govt & Environment 13 June
Marine Reserves Bill Local Govt & Environment 13 June
Mauao Historic Reserve Vesting Bill Māori Affairs 11 April
New Zealand Guardian Trust Company Amendment Bill Finance and Expenditure 16 April
Overseas Investment (Queen's Chain Extension) Amendment Bill Local Government and Environment

13 June

Protected Disclosures Amendment Bill Government Administration 22 April
Public Health Bill Health 10 June
Public Transport Management Bill Transport and Industrial Relations 30 June
Real Estate Agents Bill Justice and Electoral 10 June
Regulatory Responsibility Bill Commerce 1 May
Reserve Bank of New Zealand Amendment Bill (No 3) Finance and Expenditure 10 June
Resource Management (Climate Protection) Amendment Bill Local Government & Environment 1 May
Summary Offences (Tagging and Graffiti Vandalism) Law and Order 21 April
Treaty of Waitangi (Removal of Conflict of Interest) Amendment Bill Justice and Electoral 31 March
Trustee Amendment Bill Justice and Electoral 15 April
Waste Minimisation (Solids) Bill Local Govt & Environment 7 April

Bills Reported Back / Awaiting Second Reading

Biosecurity and Hazardous Substances and New Organisms Legislation Amendment Bill

Bills Delayed

The following Bills have been delayed:

  • Auckland Regional Amenities Funding Bill (Select Committee Report delayed from 18 March to 18 September)
  • Māori Purposes Bill (No 2) (Select Committee Report delayed from 27 March to 11 April 2008)
  • Mauao Historic Reserve Vesting Bill (Select Committee Report delayed from 27 March to 11 April 2008)

Bills Passed Second Reading / Awaiting Third Reading

Copyright (New Technologies) Amendment Bill
Securities (Local Authority Exemption) Amendment Bill
Social Assistance (Debt Prevention and Minimisation) Amendment Bill

Second Reading Negatived

None

Supplementary Order Papers

SOP 186 Statutes Amendment Bill (No 2)
Member in Charge: Hon Lianne Dalziel
Type: Motion to divide Bill

This SOP divides the Statutes Amendment Bill (No 2) into 14 separate Bills.  The Statutes Amendment Bill (No 2) was an omnibus Bill consisting entirely of amendments to different Acts.  This SOP separates that Bill into Bills specific to those different Acts.   They are the Biosecurity Amendment Bill, the Cadastral Survey Amendment Bill, the Crimes Amendment Bill, the Criminal Investigations (Bodily Samples) Amendment Bill, the District Courts Amendment Bill, the Fisheries Amendment Bill, the Historic Places Amendment Bill, the Misuse of Drugs Amendment Bill, the National Parks Amendment Bill, the New Zealand Horticulture Export Authority Amendment Bill, the Radiocommunications Amendment Bill, the Reserves Amendment Bill, the Summary Proceedings Amendment Bill, and the Veterinarians Amendment Bill.

SOP 185 Social Assistance (Debt Prevention and Minimisation) Amendment Bill
Member in Charge: Hon Ruth Dyson
Type: Motion to divide Bill

This SOP divides the Social Assistance (Debt Prevention and Minimisation) Amendment Bill into three Bills:

  • Corrections (Social Assistance) Amendment Bill:
  • Customs and Excise (Social Assistance) Amendment Bill:
  • Injury Prevention, Rehabilitation, and Compensation (Social Assistance) Amendment Bill.

SOP 184 Social Assistance (Debt Prevention and Minimisation) Amendment Bill
Member in Charge: Hon Ruth Dyson
Type: Substantive Amendment

This SOP sets out drafting amendments to the Social Assistance (Debt Prevention and Minimisation) Amendment Bill. The amendments simplify references to sentences of imprisonment, omit references to corrective training (removed by the Sentencing Act 2002), and correct an erroneous cross-reference.

SOP 183 Manukau City Council (Control of Graffiti) Bill
Member in Charge: Hon George Hawkins
Type: Substantive Amendment

This SOP amends the Manukau City Council (Control of Graffiti) Bill to remove inconsistencies between the wording and substance of clauses 6, 7, and 10 of the Bill and the recently introduced Government Bill, the Summary Offences (Tagging and Graffiti Vandalism) Amendment Bill.  It also makes consequential amendments reflecting these changes.  It is considered undesirable to have two laws creating inconsistently worded offences on exactly the same topics.

SOP 182 Manukau City Council (Control of Graffiti) Bill
Member in Charge: Hon George Hawkins
Type: Substantive Amendment

This SOP amends the Manukau City Council (Control of Graffiti) Bill to require that retailers of spray paint cans secure cans of spray paint so that members of the public cannot access them without the assistance of the seller or his or her employee or agent.  A new commencement clause delays the commencement of this provision for three months so that affected retailers have time to alter their retail premises to comply with the Act.  This SOP also removes a clause requiring persons detained for an offence under the Act to provide their name, address, and the address and whereabouts of others who may be connected with the offence. This clause appeared to infringe section 23(4) of the New Zealand Bill of Rights Act 1990, where any person detained for an offence or a suspected offence has the right to refrain from making a statement.

SOP 181 Misuse of Drugs (Classification of BZP) Amendment Bill
Member in Charge: Dr Paul Hutchison
Type: Substantive Amendment

This SOP amends the Misuse of Drugs (Classification of BZP) Amendment Bill to require that the effects of the reclassification of BZP be monitored by the Expert Advisory Committee on Drugs.  This Committee must present a report to the House of Representatives within a specified time. The SOP was introduced because of the great concern from submitters and the select committee as to the effect of the reclassification of BZP as a controlled drug.  There is a widespread view that action against illicit drug use should be based on evidence.

SOP 180 Misuse of Drugs (Classification of BZP) Amendment Bill
Member in Charge: Hon Jim Anderton
Type: Substantive Amendment

This SOP amends the Misuse of Drugs (Classification of BZP) Amendment Bill to:

  • postpone the date that the Bill comes into force from 18 December 2007 to 1 April 2008; and
  • consequentially adjust the six month amnesty expiry date to the end of September 2008.

Bill Passed Third Reading

Appropriation (2006/07 Financial Review) Bill
Statutes Amendment Bill (No 2)

Acts Assented

Limited Partnerships Act 2008 
Broadcasting Amendment Act 2008
Building Amendment Act 2008
Misuse of Drugs (Classification of BZP) Amendment Act 2008
Taxation (Limited Partnerships) Act 2008 

Regulations

Aviation Crimes Amendment Act 2007 Commencement Order 2008
Civil Aviation Amendment Act 2007 Commencement Order 2008
Animal Products (Exemptions and Inclusions) Amendment Order 2008
Geographical Indications Act 1994 Repeal Order 2008
Securities Amendment Regulations 2008
Securities Act (Cadbury Schweppes Public Limited Company) Exemption Notice 2008
Securities Act (Maui Capital Indigo Fund Limited) Exemption Notice 2008

In Committee

The Health Committee is considering submissions on the Public Health Bill. Many submitters have focussed on the non-communicable diseases provisions of the Bill, including advertising restrictions.

The Justice and Electoral Committee continues to hear submissions on the Real Estate Agents Bill. Issues considered include the independence from the Government of the proposed new Real Estate Agents Authority, why agent vicarious liability and the property management sector have not been included in the Bill, how competence requirements will be set, and trans-Tasman mutual recognition issues. Submitters include the Real Estate Institute of New Zealand (REINZ), the REINZ Industry Training Organisation, the Commercial and Industrial Property Group, Colliers International New Zealand Ltd, and the Auctioneers Association of New Zealand.

The Transport and Industrial Relations Committee continues to hear submissions on the Public Transport Management Bill, the Land Transport Amendment Bill (No 4), and the Land Transport Management Amendment Bill. The Committee is now hearing submissions on the Industry Prevention, Rehabilitation, and Compensation Bill (No 2), including on issues such as ACC cover for mental injury, vocational rehabilitation, and case manager discretion.

The Finance and Expenditure Committee continues to hear submissions on the Reserve Bank Amendment Bill (No 3). Issues considered include capital requirements, credit ratings, and the definition of 'deposit taker'.

The Local Government and Environment Committee continues to hear submissions on the Biofuel Bill. Issues considered include the fast timetable, operational risks associated with biofuels, and increased fuel costs.

The Commerce Committee continues to hear submissions on the Companies (Minority Buy-out Rights) Amendment Bill. Issues considered include share valuation methodology, dissenting shareholder and general creditor rankings, and the passing of share title from shareholder to company. The Committee also continues to consider the Electricity Industry Reform Amendment Bill.

 

LEGISLATION IN THE WINGS

Unit Titles Bill

Cabinet has agreed to a Unit Titles Bill, which will replace the Unit Titles Act 1972.

Misuse of Drugs Act 1975

The Law Commission has released information about the review it has been asked to undertake concerning the Misuse of Drugs Act 1975. To view the terms for reference for the review, see www.lawcom.govt.nz/ProjectTermsOfReference.aspx. It is not intended that the Commission will make recommendations with respect to the regulation of alcohol or tobacco.

 

IN CONSULTATION

What's New

RELEASED BY ... ISSUE SUBMISSIONS CLOSE ON...
(2007)
Building & House - Dept of Timber treatment survey 14 April
Economic Development - Min of Draft Government Policy Statement on Electricity Governance 4 April
Environment - Min of National Water Environment Standard Submissions sought from 29 March
Fisheries - Min of Review of Regulatory and other Management Controls 23 April
Health - Min of National Strategic Plan of Action for Breastfeeding 2 May
Labour - Dept of Proposed Changes to the Scale of Payments made under the ACC Review Costs and Appeals Regulations 18 April

 

Current

RELEASED BY... ISSUE SUBMISSIONS CLOSE ON...
Biosecurity NZ Draft Standard for Low Security Farm Animal Transitional Facilities 4 April
Commerce Commission Next Generation Networks – Terms of Reference 28 March
Conservation - Dept of

Proposed new conservation park - Ka Whata Tu O Rakihouia

Threatened status of NZ birds - current list to be updated

2 April

1 May

Culture and Heritage - Min of & Economic Development - Min of

Digital Broadcasting: Review of Regulation

Broadcasting and New Digital Media: Future of Content Regulation

4 April

4 April

Education - Min of & Te Puni Kokiri Te Marautanga o Aotearoa 22 April
IRD Disputes Resolution Process Commenced by a Taxpayer 4 April
Labour - Dept of Restructuring and Redundancy Law (contact r&[email protected]) 20 April
Maritime NZ Draft navigation plans - Wairau River; Lake Brunner 31 March
Transpower Pole 1 4 April

 


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