NEWS ON POLICY AND POLITICS
3 December, 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

The "New" New Labour
The new Labour leadership managed a smooth transition to the opposition benches, assisted by the decisiveness with which Helen Clarke and deputy, Michael Cullen disposed of any contention about their leadership. more...

Workers Fly The Hive
Underpinning the transition from one Government to another are those officials who provide continuity and keep the routine of Ministerial business ticking over. more...

IN THE NEWS

Post Cabinet Commentary - Climate Change more...

US Double Tax Arrangement more...

Expert Panel on Electoral Administration Disbanded more...

New Crown Research Institute formed more...

IN PARLIAMENT

State Opening more...
Regulations more...

IN CONSULTATION more...

 


IN POLITICS

The "New" New Labour

The new Labour leadership managed a smooth transition to the opposition benches, assisted by the decisiveness with which Helen Clarke and deputy, Michael Cullen disposed of any contention about their leadership.

Leader Phil Goff also earned early points for his mea culpa on the Electoral Finance Act and an inclusiveness that sets him apart from Clark and the redoubtable Heather Simpson.

However, those early gains suffered a setback with Goff's ill-judged advice to the Māori Party that it avoid entering into a confidence and supply arrangement with National. Playing into Turia's hands, Goff gave the Māori Party the opportunity to trot out set-piece remarks about the client-patron nature of the relationship between Labour and the tangata whenua, as well as the telling observation from the ever-feisty Hone Harawira that Māori had got more out of National in three days than it had in years from Labour.

Justified or not, Harawira's comment was a pointed reminder to Goff that Labour and the Māori Party are more competitors than they are allies - something not lost on the hui convened to decide on what position the Māori party should take.

It was a slip that Clark's instinctual political management would not have allowed and it must be with a sense of mounting frustration and periodic grumpiness that the former leader looks on from her perch on the middle benches.

A technocrat by inclination and ambition, Clark's tolerance for not having her hands on the levers of power will be low and we suspect it will be only a matter of time before international appointments take her from the House and these shores. Cullen's time may also be limited and as Wellington Mayor Kerry Prendergast sees out her last term, one wonders when Annette King will make her move into the world of local government.

Workers Fly The Hive

Underpinning the transition from one Government to another are those officials who provide continuity and keep the routine of Ministerial business ticking over. Comprised variously of Ministerial services personnel and the many private secretaries placed in Minister's offices by public sector departments and ministries, they provide a conduit for policy advice and allow the business of Government to proceed without disruption.

Normally any incoming administration could expect a staff retention level of 80 - 90%. This time though retention is as low as 30%, doing few favours for an administration determined to hit the ground early and running.

The problem is made no easier by the departure of the several scores of political appointees whose career fortunes are tied to those of their political masters. You would expect them to go as a matter of course, but their absence this time will be felt more keenly, at least in terms of knowing how things work.

Those tempted to read political disgruntlement into the apparent flight of career bureaucrats from the Beehive should think again. A simpler explanation is that after an exhausting and sometimes difficult few years, many want to return to their parent organisation to recuperate and/or take the next step on the political ladder.

Whatever the reason, the situation has done little to ease the chaos that has characterised the Beehive over the weeks since the election.  Boxes are still being unpacked, staff selections being made and senior private secretaries being brought to breaking point.  

Those keen to arrange meetings with Ministers would do well to bear that in mind.  With the House likely to go into urgency next week the chances of an appointment on anything other than the most urgent matter are slight and supplicants are likely to be advised to wait until the New Year.

 

IN THE NEWS

Post Cabinet Commentary - Climate Change

The Greens have raised warning signals about New Zealand's trade position and overall credibility should National back away from commitments New Zealand made on agricultural emissions.

National's response has been the pragmatic one; environmental responsibilities need to be balanced against economic opportunities. The Government will argue that New Zealand, where the bulk of greenhouse gas emissions come from agriculture, has a different emissions profile to other countries. Prime Minister John Key said at this week's press conference that New Zealand is still committed to playing its part on climate change. In a departure from the optimism shown by former Environment Minister David Parker, Key told reporters that New Zealand had to recognise that agricultural emissions did not have technological solutions. Simply cutting production could have unintended consequences. At the same time, he reiterated his commitment to a reduction in Greenhouse emissions by 50% by 2050.

Key affirmed National belief that human induced climate change was occurring and we needed to act to stop it. He stated that National wanted an ETS that would work and balance environmental responsibilities with economic opportunities. Key said he didn’t believe the current ETS achieved that balance and he intended to deliver a record that showed improvement in emissions, not rapid deterioration, as had been the case under Labour.

On the subject of the forestry sector and its concerns about the possible disruption to the arrangements agreed under the last administration, the Prime Minister said the sector wouldn’t have had a market until 2010 when the “buy” side of the market came in. He said that he was sympathetic to any sector that wanted predictability and confidence on climate change and affirmed that the goal was to provide predictability and transparency as quickly as possible.

A statement on the Government's intentions concerning ETS legislation will be made shortly. However, Key's comments suggest that deferral may not be necessary and that a review of the terms of the emissions trading scheme will proceed without the contention that would accompany amending legislation.

US Double Tax Arrangement

The Cabinet approved a paper in relation to a New Zealand/United States double tax agreement. The agreement is intended to improve the tax relationship between the two countries by reducing withholding tax on interest, dividends and royalties.

Expert Panel on Electoral Administration Disbanded

The Government this week disestablished the Expert Panel on Electoral Administration set up by the Labour Government only two months ago.

The three review panel members were Associate Professor Andrew Geddis (Chair) of Otago University, Dr Jean Drage of Canterbury University/Victoria University, and Professor Stephen Levine of Victoria University. The reviewers had been given the task of considering the administration of the electoral system under the Electoral Finance Act and the desirability of state funding of political parties - an express preference of former Prime Minister Helen Clark.

Among the review panel's terms of reference was a requirement to convene a Citizens' Forum of 70 people to consider the findings of the panel. The cost of the exercise had been budgeted at $4.57 million.

Announcing the decision, Justice Minister Simon Power said “The Electoral Finance Act 2007 was passed without a broad base of support across parties represented in Parliament. Similarly, the Expert Panel was established without wider political consultation. National opposed both of these measures. So we are disbanding the panel and will start this whole process afresh".

Power has indicated that the Government will repeal the EFA as an interim measure. “Following the repeal of the EFA, we will start work on a new law that will seek as broad a range of parliamentary and public support as possible, to provide an enduring framework for the administration of elections,” he said.

New Crown Research Institute formed

Two former Crown Research Institutes - Crop & Food Research and HortResearch - have been brought together as the New Zealand Institute for Plant and Food Research Ltd (Plant and Food Research). The new agency will continue its predecessors' focus on sustainable production, elite genetics and food and health, but under one roof.

Jim McLean, the outgoing Chair of HortResearch, has been appointed as Chair of the new Plant and Food Research Board.

 

IN PARLIAMENT

The first meeting of the 49th Parliament will be at 2:00 pm on Monday 8 December. Members will be sworn in and the election held for the position of Speaker.

The State opening of Parliament will be on Tuesday, 9 December at 11 am. The Governor-General will come to Parliament House to formally open the 49th Parliament and deliver the speech from the Throne, setting out the Government’s legislative agenda. This will be followed by the Address-in-Reply debate.  All events will be televised.

Although no formal announcement has been made we expect that the new Government will introduce those Bills that it wants passed before the House rises for Christmas.  These include:

  • A Bill to introduce National’s tax cuts in April.
  • A Bill to amend the Resource Management Act; and
  • A Bill to repeal the existing bail laws.

Regulations

Securities Act (Meridian Energy Limited) Exemption Notice 2008
Securities Act (Stock and Station Agents) Exemption Amendment Notice 2008
Securities Act (New Zealand Deposit Guarantee Scheme−Collective Investment Schemes)
Exemption Notice 2008
Securities Act (New Zealand Deposit Guarantee Scheme) Exemption Amendment Notice 2008
Securities Act (Richina Pacific Limited) Exemption Notice 2008
Takeovers Code (RLV No. 3 Limited) Exemption Notice 2008
Securities Act (Pohutukawa Private Equity II Limited) Exemption Notice 2008
Parliamentary Salaries and Allowances Determination 2008

 

IN CONSULTATION

Whats New

AGENCY SUBJECT CLOSES ON...
(2008)
Biosecurity NZ Draft Import Health Standard for the importation into NZ of Horses from Australia 22 December
Conservation – Dept of New listing of threatened status of New Zealand reptiles and amphibians 28 February
Electricity Commission Electricity Governance (Security of Supply) Regulations and AUFLS rule (arrangements for rolling stoppages) 12 December
Environment Bay of Plenty Kaituna River and Ongatoro/Maketu Estuary Strategy 18 February
Environmental Risk Management Authority Revised methodology for assessing new hazardous substances and organisms

8 December

Food Safety  Authority - NZ Inclusion of Porcine in the National Microbiological Database 23 January
Health – Min of & Statistics NZ Health Expectancy: Toward Tier 1 official statistic status 31 January
Land Information NZ Corrections to the Land Register - Draft standard 8 December
Standards NZ Adoption of AS 3806:2006 Compliance programs 20 January
Standards NZ NZS 4218 Energy efficiency - Housing and small buildings 2 February

Whats New

AGENCY SUBJECT CLOSES ON...
(2008)
Accident Compensation Commission & Health – Min of NZ Ambulance Service Strategy 12 December
Dunedin CC Coastal Dune Reserves Management Plan 12 December
Economic Dev – Min of Review of Rules of Origin for CED 17 December
Electricity Commission

Issues and Indicative Options for the Spot Market Pricing

Process and UTS Provisions
5 February
Electricity Commission Proposed changes to the System Security Forecast by Transpower 12 December

Environment – Min

National Policy Statement for Freshwater Management

National Policy Statement on Urban Design

Draft regulations: stationary energy and industrial processes

To be announced

To be announced

15 December

Fisheries – Min of Treaty strategy – input and participation 31 March

Food Standards Australia NZ

New microbial source for phospholipase A2; new cellulase enzyme preparation

Voluntary Addition of Fluoride to Packaged (bottled) Water + Policy Guideline

9 December


23 December

Foreign Affairs and Trade – Min of Expansion of the Trans-Pacific Agreement to include the United States 8 December
Health – Min of Maternity Action Plan 2008–2012 31 December
Internal Affairs – Dept of Building Sustainable Urban Communities 29 November
IRD Payments made by parents or guardians of students to state schools - GST treatment 19 December
Land Information NZ Tenure review – Awakino Station Ltd 23 December

Law Commission

Review of the Land Transfer Act 1952

Compensating Crime Victims

19 December  

24 December



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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 04 819 7532
[email protected]
Doug Bailey - Consultant
Ph 04 819 7572
[email protected]

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