NEWS ON POLICY
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CLIMATE CHANGE UPDATE Climate Change Update - Five Weeks and Counting PROGRESS OF LEGISLATION Bills Introduced/Awaiting First Reading more... Bills At Select Committee more... Acts Assented more... Regulations more... Designated Settlement Systems Bill more... Possible Amendments to Dog Control Act more... IN CONSULTATION more...
Digital Broadcasting more... Financial Regulation - Status more... Review of Financial Intermediaries (Advisers) more... Reserve Bank of New Zealand Amendment Bill (No 3) more... Financial Service Providers (Registration and Dispute Resolution) Bill more... Financial Advisers Bill more... Fire Services Levy in Election Year Limbo more... |
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Climage Change Update - Five Weeks and CountingThe Climate Change (Emissions Trading and Renewable Preference) Bill was introduced to Parliament just before Christmas and has been referred to the Finance and Expenditure Select Committee for consideration. Submissions are currently sought by the Select Committee and are due before Friday 29 February. That leaves only five weeks for businesses to understand the Bill and its implications, and ensure that they have their final say on the proposed plans and possible consequences for their business, and the economy as a whole. That's a big ask for such a complex and important piece of legislation! The Bill will establish the New Zealand Emissions Trading Scheme (NZ ETS), which will apply to the various sectors as follows: 1 January 2008 Forestry This Bill is a key priority for the Labour Government. The stated intention is to ensure that the Bill is passed well before the General Election - with the expectation being that we will see the Bill coming into force in July or August. The intention is to capture those parties carrying out activities that result in greenhouse gas emissions at the highest point in each supply chain, placing obligations on them to: monitor emissions, report on emissions (annually), and surrender emissions units (carbon credits) to the Government each year to cover all emissions made during that year. The expectation is that the NZ ETS participants who are captured under the legislation will then be able to pass through the resulting costs straight down the supply chain - so that all emitters (including households) are paying for their share of emissions. The Bill also introduces a 10-year ban on new baseload fossil fuelled-thermal electricity generation in New Zealand (except to the extent required to ensure the security of electricity supply). A key issue we have identified for a number of clients we are advising and assisting with submissions is the inability to pass through emissions costs due to existing contractual arrangements that either do not allow for cost pass throughs at all, and/or provisions that appear to allow cost pass through but are insufficiently worded to allow for the proposed NZ ETS costs (for example, existing provisions mentioning only "carbon tax" or similar wording). This issue could result in millions of dollars in new costs needing to be absorbed by certain businesses, and others getting away with not being required to pay anything in the short or long term. For those clients wishing to find out more, please click here to visit our climate change webpage. This page has a condensed summary and overview of the relevant background and developments - with useful links to the Government's website and other relevant websites. Alternatively, please contact one of us for a discussion: Tim Clarke ([email protected]) or Doug Bailey ([email protected]).
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PROGRESS OF LEGISLATION |
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Parliamentary ScheduleThe House resumes on 12 February 2008.
Bills Introduced/Awaiting First ReadingNo new Bills have been introduced since our last report. Bills At Select CommitteeOpen For Submissions
Acts AssentedBroadcasting Amendment Act (No 2) 2007 RegulationsSecurities Act (World Bank) Exemption Notice 2007 |
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Designated Settlement Systems Bill This Bill is planned for early 2008 and makes technical changes to the regulatory framework for securities and futures exchanges and the clearing and settlement systems to support the introduction of the emissions trading system. Possible amendments to Dog Control Act The Minister of Local Government, Hon Nanaia Mahuta, has released a discussion document seeking views that could help further improve dog control and public safety around dogs.
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IN CONSULTATION |
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What's New
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Digital BroadcastingThe advent of digital broadcasting and increasing media convergence over the next few years are likely to trigger some fundamental changes in the current broadcasting structure, including the theoretical possibility of Sky losing its exclusive rights to national sports. Also, New Zealand could find itself with a single body to manage the converged media similar to the Australian Communications and Media Authority, rather than today’s Press Council and Broadcasting Standards Authority. Those are among a number of possibilities explored in a research report and two discussion papers prepared by the Ministry Economic Development and the Ministry of Culture and Heritage :
Also released are two Cabinet papers on the issues - Digital Broadcasting Review of Regulation: Options Paper for Public Consultation and Broadcasting and Digital Technology: Future of Broadcasting Content Regulation. Submissions on the four papers close on 4 April. Financial Regulation - StatusOfficials continue to advance the Ministry of Economic Development's Review of Financial Products and Providers ("RFPP") and Review of Financial Intermediaries. The RFPP process began in March 2005. The aim of the review was to develop an effective and consistent regulatory framework, and promote confidence and participation in non-bank financial markets by investors and institutions. The scope of the RFPP included nine separate categories which were summarised in discussion documents released for consultation in mid-2006:
Copies of the nine discussion documents are available from www.med.govt.nz. Following a consultation phase at the end of 2006 on all of the nine categories (and associated discussion documents), proposals were sent to Cabinet in June 2007 where it was agreed to introduce legislation for the proposed reform in a two-stage approach. Stage one has begun, with the introduction of the Reserve Bank of New Zealand Amendment Bill (No 3) in respect of non-bank deposit takers in November, and the Financial Service Providers (Registration and Dispute Resolution) Bill and the Financial Advisers Bill in December last year. Also as part of stage one, it is expected that the Government will introduce a Trustees Supervisory Model Bill in the near future once Parliament has resumed in mid-February. Stage two of the legislative reform programme will begin in mid-2008 and will include the reform of the supervision of corporate trustees of collective investment schemes and debt issuers; security offerings disclosure; the regulation of mutual's governance; and platforms and portfolio management services. With respect to insurance, it was announced just prior to Christmas 2007 by the Finance Minister, Hon Michael Cullen, that all insurance providers (including life, health and general) will have to be licensed by the Reserve Bank under a new prudential regulatory framework. The new legislation and associated details of the new framework will take time to implement due to the complexities involved. It is expected that legislation will be introduced later this year, and it will then take some time before the new legislation is brought into force (currently expected to be in 2010). Review of Financial Intermediaries (Advisers)A parallel review undertaken by the MED was that into financial intermediaries. It should be noted that this work stream applies to all intermediaries working in the financial sector. An independent taskforce was established in 2004 to consider and report on the regulation of financial intermediaries. In summary, the taskforce recommended a regulatory framework under which industry bodies ("approved professional bodies") and the government (through legislation and government entities such as a Minister and a regulator) would set standards, rules and obligations for financial intermediaries and would carry out dispute resolution and disciplinary functions. In late 2006, at the same time as consultation on the RFPP discussion documents was occurring, the government consulted on the proposed options for financial intermediaries. This work has led to the introduction of the Financial Advisers Bill in December 2007 (as mentioned above). Reserve Bank of New Zealand Amendment Bill (No 3)The Reserve Bank of New Zealand Amendment Bill (No 3) was introduced in the House on 21 November 2007, and had its first reading on 11 December 2007. It has been referred to the Finance and Expenditure Select Committee, which has called for submissions before 15 February 2008. The Select Committee is then scheduled to report back to the House on 10 June 2008. The primary purposes of the Bill are to implement elements of the new regulatory framework for non-bank deposit takers and enhance the Reserve Bank's accountability and transparency arrangements in relation to its financial sector functions. The Bill requires all deposit takers, as defined in the Bill, to be licensed by the RBNZ; all directors and senior managers of deposit takers will be subject to fit and proper requirements; and deposit takers will need to comply with minimum prudential standards prescribed in regulations and enforced by trustees and the RBNZ. Financial Service Providers (Registration and Dispute Resolution) BillThis Bill was introduced in the House on 4 December 2007, and had its first reading on 11 December 2007. It has been referred to the Finance and Expenditure Select Committee, which has called for submissions before 28 February 2008. The Select Committee is then scheduled to report back to the House on 10 June 2008. The Bill sets up a registration system for financial service providers that will:
In addition, the Bill also establishes a comprehensive, industry-based dispute resolution system. The Minister may approve any number of dispute resolution schemes which meet certain criteria. All financial service providers must be a member of at least one of these schemes. Financial Advisers BillThe Financial Advisers Bill was introduced in the House on 5 December 2007. It is still awaiting its first reading, which is expected in mid-February after the House resumes sitting on Tuesday 12 February 2008. It will then be referred to the Finance and Expenditure Select Committee for consideration. The purposes of the Bill are to:
Fire Services Levy in Election Year Limbo?On the heels of its report on the response to its discussion paper New Zealand Fire Legislation: A framework for New Zealand's fire and rescue services and their funding, the Department of Internal Affairs has prepared a briefing and Cabinet paper for the responsible Minister, Hon Rick Barker. There is as yet no formal indication when any proposals will be forwarded for Cabinet consideration and the Minister is understood to be "in discussion" concerning the content of the Department's proposals. Given the unpopularity of the department's proposed funding mechanism, any approach to funding that seeks to extend property levies is likely to be regarded with caution by a government committed to a non-controversial run-up to the election.
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LinksThis
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
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© Russell McVeagh 2005. All rights reserved.