NEWS ON POLICY AND POLITICS
21 February, 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

The Prime Minister's address
There were no surprises in it. Capitalising on the concerns of the chattering classes, Prime Minister's opening address to Parliament last week banged heavily on the drum of environmentalism and all things Kiwi. more...

IN THE NEWS

Rates Inquiry underway
Almost six months after it was announced, the Rates Inquiry is underway, with a series of meetings announced at various venues around the country. more...

….and schedule of public meetings
The Inquiry panel will hold public meetings as follows: more...

Terms of Reference for Liquor Review released
Justice Minister, Mark Burton and Associate Health Minister, Damien O'Connor, have released the terms of reference for the Government's review of the sale and supply of liquor to under-18-year-olds. more...

IN PARLIAMENT

At select committee
Select committees began their year dealing mostly with financial reviews (following on from the end of 2006). more...

Bills introduced more...

Bills before select committee more...

Open for submissions
Submissions closed

Regulations more...

LEGISLATION IN THE WINGS

The Prime Minister outlined the Government's legislative plans for 2007 in her Statement to Parliament on 13 February. Plans include: more...

IN CONSULTATION

The Prime Minister's address

There were no surprises in it. Capitalising on the concerns of the chattering classes, Prime Minister's opening address to Parliament last week banged heavily on the drum of environmentalism and all things Kiwi.

Confronted with an opposition leader bent of reclaiming the support of New Zealand's middle ground, this was a critical speech for Clark. If its purpose was to take the steam out of Key's championing of the underclass, it succeeded - but only just.

Certainly, a flurry of media about "sustainability" and the number of times the word was used did something to distract from the government's embarrassment at being reminded by a "rich Tory" about realities of life for the working poor.

But light on both substance and soundbites, Clark's address came a definite second to the performance by Key in his address in reply. It is no small irony that the relatively limited coverage given to Key's formal outing as leader of the opposition owed more to the day's revelations about the fate of Mangere MP, Phillip Field than the force of the PM's call to action.

Those less interested in Parliamentary theatre and the cut of Key's jib than the government's policy direction for 2007 will also have been disappointed by the PM's opening salvo. The Biofuels Sales Obligation provided one 'hard' straw to clutch at, but otherwise the 'how' of government's programme of sustainability was in the 'to be announced' category. This left the PM wide open to accusations of sloganeering - something upon which Key was quick to seize.

For better or worse, attention now goes on the responsible Ministers, with Energy Minister, David Parker at centre stage. The PM has firmly pointed at the various energy and climate change consultations that are currently in train and it's down to Parker to come up with the goods.

That won't be easy. The absence of hard economic analysis in respect of the proposals already on the table is a cause for concern and the Minister has a long road ahead of him if a consistent, well-integrated and effective policy platform is to emerge with anything like an industry blessing. But whether the political imperatives will allow sufficient time for an effective policy consensus to emerge is in doubt and the risk is of a confused policy framework redolent of the land transport management legislation of 2003.

Rates Inquiry Consultation Underway

Almost six months after it was announced, the Rates Inquiry is getting under way, with a series of meetings announced for various venues around the country. However, the passage of time and the apparent cynicism with which the Inquiry and its terms of reference have been greeted may mean a half-hearted attendance on the part of those with the greatest to win and lose from the inquiry process. The risk is all too real that the panel will be confronted mainly by those with time on their hands and a penchant for public expenditure.

For critics of the current state of local body funding, it is the purpose clause of the Local Government Act, rather than the power of general competence, which is the real villain of the piece. Unfortunately, though, discussion of this and other fundamentals have been expressly excluded from the panel's purview. This has left open speculation that the Inquiry is simply a means of validating past work done by officials at DIA and the Local Government Commission, and finding newer and better ways to take money from the punters.

Encouragingly, in a statement released just last week Panel Chair David Shand put a welcome edge on things by noting the need for an examination of whether ratepayers receive value for money:

"Fundamentally, we are looking at the wider issue of funding of local government, not just rates. We will look at whether rates are equitable and affordable, and value for money for ratepayers and whether councils are using all the powers of rating flexibility they currently have."

As encouraging the recognition of value for money might be, the panel's focus on equity and affordability is all too likely to cloud the more fundamental of how and what councils spend money on. The risk that the exercise will simply produce demands for increased local welfare through a further expansion of the rates rebate scheme seems very real.

Shand's observation that "we want to know whether councils are making enough use of the available, non-rate revenue tools, such as development contributions, user charges and borrowings," also reinforces fears that the Inquiry is less about rationalisation of local government than finding new sources of money.

Rates Inquiry - Schedule of Public Meetings

The Inquiry panel will hold public meetings as follows:

Hamilton
Monday 26 Feb, Kingsgate Hotel Hamilton, 100 Garnett Avenue, Te Rapa, Hamilton.

Auckland
Tuesday 27 Feb, Mt Smart Stadium, Beasley Ave, Penrose, Auckland.

Wellington
Monday 5 Mar, National Library Auditorium, Atiken Street Entrance, Wellington.

Napier
Thursday 8 Mar, Napier Municipal Theatre, 119 Tennyson Street, Napier.

Palmerston North
Friday 9 Mar, Palmerston North Convention Centre, Palmerston North.

Nelson
Monday 12 Mar, Rutherford Hotel Nelson, Trafalgar Square, Nelson.

Christchurch
Thursday 22 Mar, Christchurch Convention Centre, Kilmore Street, Christchurch.

Dunedin
Friday 23 Mar, Dunedin Centre - Fullwood Room, The Octagon, Dunedin.

Rotorua
Monday 16 Apr, Rotorua Convention Centre, 1170 Fenton Street, Rotorua.

Gisborne
Tuesday 17 Apr, Emerald Hotel Gisborne, Corner Reads Quay and Gladstone Road, Gisborne.

Whangarei
Friday 20 Apr, Forum North - Convention Centre, Rust Avenue, Whangarei.

Two meetings will be held each day:

1. Meetings with councils - 9:30 am to 12:30 pm. (The public and media may attend this session in an observer capacity); and
2. Public meetings - 2:00 pm to 4:30 pm.

Terms of Reference for Liquor Review released

Justice Minister Mark Burton and Associate Health Minister Damien O'Connor have released the terms of reference for the Government's review of the sale and supply of liquor to under-18-year-olds.

The review is intended to:

• Determine the harms arising from the sale and supply of liquor to minors;
• Evaluate the effectiveness of current restrictions on sale and supply to minors; and
• Develop policy proposals, as necessary, that address the causes of harms arising from sale and supply to minors.

The review will consider the sale and supply of liquor to persons under the age of 18. This will include a review of provisions of the Sale of Liquor Act 1989 relating to sale and supply to minors, including proposals for reform to address the causes of harm to minors. Among the proposals that will be considered will be:

• Tighter controls on sale and supply of liquor, both from licensed premises and from family, friends and others; and
• Increased enforcement options to address breaches of the Act by minors and by persons who sell or supply liquor.

The review will proceed under the oversight of a Steering Group drawn from the Ministry of Justice, Ministry of Health, the Alcohol Advisory Council of New Zealand (ALAC), and the Police. The Steering Group will be chaired by the Ministry of Justice and will report to the Minister of Justice and the Associate Minister of Health.

In select committee

Select committees began their year dealing mostly with financial reviews (following on from the end of 2006).

The Finance and Expenditure committee heard submissions on the Budget Policy Statement (the Budget will be released on 17 May). Submitters included the Smokefree Coalition, the Council of International Development, the Business Roundtable and Federated Farmers.

The Local Government and Environment committee began hearing submissions on the Waste Minimisation (Solids) Bill. The committee has received 130 submissions and hearings will accordingly take up a good deal of the committee's time in upcoming months.

The Primary Production committee received a briefing on Biological Agriculture (specifically soil health) from Dr Arden Andersen (world-recognised soil scientist). Dr Andersen claims that New Zealand's current system of sustainable agriculture is not working and that sustainable technologies are required (via appropriate nutritional management).

Bills Introduced

Te Roroa Claims Settlement Bill

Before Select Committee

Open for submissions

Submissions Closed

Regulations

Immigration Amendment Regulations 2007
Taxation (Use of Money Interest Rates) Amendment Regulations 2007
Takeovers Code (Westgate Power Centre Limited) Exemption Notice 2007
Injury Prevention, Rehabilitation, and Compensation (Accredited Employers Framework) Amendment Notice 2007

• Legislation to give effect to the new Biofuels Sales Obligation (and provide for regulation of biofuel quality);
• Amendments to the Waste Minimisation (Solids) Bill - including confirmation that "some form" of a waste levy will be introduced, as well as improved product stewardship measures;
• Amendments to clean up election campaign funding;
• New Therapeutic Products and Medicines Bill (establishing the new trans-Tasman body);
• New Terrorism Suppression Act (part of New Zealand's international obligations);
• Education (Tertiary Reforms) Amendment Bill - regarding investments made in the tertiary sector;
• New Property Law Bill - re-writing the out-dated 1952 Act;
• New Public Health Bill - updating the current 1956 Act;
• New Treaty Settlements Bill;
• A major overhaul of immigration legislation;
• Legislation providing for the superannuitants' Supergold Card and the Veterans' Card (these cards will be available from August); and
• Changes to public transport procurement legislation to enable regional councils to get better value for money.

What's New

Current

Links

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