NEWS ON POLICY AND POLITICS
4 April, 2006

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

Cullen on the Move?
Is this Michael Cullen's last term? Speculation has been fuelled about whether Labour's safe pair of hands has had enough. more...

Parker to Return to Cabinet?
The ink is barely dry on his resignation, but already the way is being smoothed for David Parker's return to the Cabinet fold. more...

IN PARLIAMENT

Progress of Bills more...

Bills Before Select Committee more...

IN CONSULTATION

Government reports and discussion papers released for consultation. more...

OTHER NEWS

PPP or not PPP?
Treasury Working Paper hammers another nail into the PPP coffin. more...

Small businesses to be rewarded for workplace safety schemes
ACC levies to be abated for categories of small business that put workplace safety plans in place. more...

Welfare Net Grows
1 April marks the commencement of the much-advertised "Working for Families" package. A flagship of Labour's social policy platform, the package extends welfare entitlement well into that category of earner the administration has itself labelled "rich". more...

Cullen on the Move?

Is this Michael Cullen's last term? Speculation has been fuelled about whether Labour's safe pair of hands has had enough.

Certainly his performance during Question Time has lacked its customary zing and observers have questioned for some time whether the good doctor was thinking of a life after politics.

The last election wasn't easy on the Deputy Prime Minister. Reported to have felt compromised by Labour's naked appeal for the student vote, Cullen's grumpiness was marked. One apocryphal account doing the rounds is that, in the course of an election address to a sparsely populated electorate meeting, Dr Cullen was asked what he intended doing in retirement. "Doing what the rest of New Zealand will do," he replied, "taking out a student loan."

True or not, there can be no doubt that the pre-election budget was not to Dr Cullen's taste. Whether this has been a catalyst for a move, or it's simply time, only the Deputy Prime Minister knows.

Should Cullen resign at the next election, the obvious question is who will step into his shoes? Steve Maharey has been touted by some, but the popular choice is long-time Labour fixer, Trevor Mallard. Regardless of who wins that particular tussle, the loss of Cullen will be felt. His intelligence, tendency to steer a middle fiscal course, wit and command of the debating chamber are a rare combination.

Parker to Return to Cabinet?

The ink is barely dry on his resignation and already the way is being smoothed for David Parker's return to the Cabinet fold. This, according to the Prime Minister, is the likely sequel to any decision by the Companies Office not to prosecute the erstwhile Minister for his "mistakes" in filing false company returns.

Such a result might be welcomed by Parker's beleaguered Cabinet colleagues, but it will also be another test for the former Minister, whose honour in resigning his portfolios will be tainted by too early a return from the cold of Labour's back bench.

Against this of course, the Prime Minister must weigh the problems that flow from Parker's continued time in Coventry. With transport, energy and health becoming a major test for this government, Health Minister Pete Hodgson is unlikely to cope with the additional strain. With no obvious or favoured successors Parker is very much "the man".

Whether, in the end, the public will care about what happens either way is moot. Cynicism and a rational ignorance are increasingly common in an electorate which regards politicians as being "as bad as one another". That surely is also part of the Prime Minister's political calculation.

Progress of Bills

Introduction / First Reading

Crimes of Torture Amendment Bill
The Bill is to implement the Optional Protocol to the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (the Optional Protocol) which was adopted by a vote in the United Nations General Assembly on 18 December 2002 and signed by New Zealand on 24 September 2003.

Human Tissue (Organ Donation) Amendment Bill
The Bill amends the Human Tissue Act 1964 to facilitate the donation of human organs for transplant purposes.

Local Government Law Reform Bill
The Bill refines “ … the legislative framework within which local authorities operate to reflect recent policy decisions, to clarify existing provisions, and to improve the effectiveness of regulatory tools.” Among the changes are provisions to facilitate the establishment of a national dog registration database.

Meat Board Amendment Bill
The Bill amends the Meat Board Act 2004 to clarify that the Meat Board may allocate access to quota markets to persons registered as meat exporters whether or not they currently export meat products.

Residential Tenancies (Damage Insurance) Amendment Bill
The aim of the Bill is to amend the Residential Tenancies Act 1986 by adding a new responsibility for landlords to insure the interests of the tenant against liability for damages to the premises.

Resource Management (Climate Protection) Amendment Bill
The Bill aims to allow “ … the consideration of climate change in the granting of air discharge consents and the formulation of regional plans."

Westpac New Zealand Bill
The Bill establishes “ … Westpac New Zealand Limited (Westpac New Zealand) to assume and carry on the New Zealand retail banking business of Westpac Banking Corporation.”

Young Offenders (Serious Crimes) Bill (Members Bill - Ron Mark)
The Bill proposes to lower the age of criminal responsibility.

Second reading

Children, Young Persons and Their Families Amendment Bill (No 4)
Climate Change Response Amendment Bill
Crimes (Intimate Covert Filming) Amendment Bill
Criminal Procedure Bill
Disabled Persons Employment Promotion (Repeal and Related Maters) Bill
Education (Establishment of Universities) Amendment Bill
Historic Places Amendment Bill
Oaths Modernisation Bill
Protected Objects Amendment Bill

Committee stage

Appropriation (2004/05 Financial Review) Bill
Children, Young Persons and Their Families Amendment Bill (No 2)
Education Amendment Bill
Independent Police Complaints Authority Amendment Bill
Judicature Amendment Bill (No 3)
New Zealand Council of Law Reporting Amendment Bill
Securities Legislation Bill

Third reading

Legal Services Amendment Bill (No 2)
New Zealand Sign Language Bill
Crimes Amendment Bill
Customs and Excise Amendment Bill
District Courts Amendment Bill (No 2)
Immigration Amendment Bill
Misuse of Drugs Amendment Bill
Privacy Amendment Bill
Sentencing Amendment Bill
Summary Proceedings Amendment Bill
Tax Administration Amendment Bill

Bills Before Select Committee

Open for submissions

Submissions closed

Acts Assented To

Lawyers and Conveyancers Act 2006
Transport Amendment Act 2006

Bills Passed

The Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Bill

The current government reports and discussion papers released for consultation are:

PPP or not PPP?

Public-private partnerships have long been mooted as a partial solution to the funding of major public infrastructure. That said, Finance Minister, Michael Cullen, has been consistently cool on the idea. The difficulties of the risk-reward calculation and the prospect of commercial failure have long dissuaded him from taking the leap.

That position has now been bolstered by the latest Treasury Working Paper, which points to options for obtaining private sector finance without complications and costs of negotiating PPP agreements. The use of government finance remains high on the list of preferences. PPPs are a distant runner.

Perversely, the Treasury analysis points to the relatively high level of success of PPP projects, with a delivery rate of 89% against time and budget. Treasury's conclusions, then, seem to amount to a case of PPPs working in practice, but not in theory.

Although this particular Treasury report will find favour with Dr Cullen, it may not do much for relationships with United Future, which has a Bill intended to bring the PPP option to the fore.

Small Businesses to be Rewarded for Workplace Safety Schemes

Over 180,000 small businesses which put workplace safety plans in place will soon be able to ask for a 10 per cent discount on their ACC levies.

From 1 April the government will introduce an ACC levy discount programme specifically aimed at small business employers and the self-employed in the agriculture, forestry, construction, road freight transport, motor trades, and in-shore fishing industry sectors.

Welfare Net Grows

1 April marks the commencement of the much-advertised "Working for Families" package. A flagship of Labour's social policy platform, the package extends welfare entitlement well into that category of earner the administration has itself labelled "the rich".

Whatever discomfort might be engendered by the policy, and indeed whatever good may follow from it, the most likely outcome is to solidify Labour's political support in New Zealand's middle ground and raise the bar for any alternative policy that National will have to present to the electorate if it ever hopes to govern.

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