NEWS ON POLICY
AND POLITICS |
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IN POLITICS Clock ticking on the fifth Labour government Gordon Copeland Strengthens Dunne's hand IN PARLIAMENT Bills Introduced At Select Committee Bills Reported Back more... IN THE WINGS Land Transport Sector more... IN CONSULTATION more...
IN OTHER NEWS more... |
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| BUDGET SPECIAL | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Clock ticking on the fifth Labour government?The 2007 budget was the government's last best chance to revive its political fortunes. Labour may yet get to deliver an election year special, but strategically targeted spending and the promise of tax cuts to come will do little to shift growing public perceptions of a government that has had its day. That perception has not been helped by the Finance Minister's cheery assertion that his eleventh hour changes to Kiwisaver were thought up at the beach. This and the many, apparently unforeseen, fishhooks in Labour's flagship policy have overshadowed the several more worthwhile aspects of the budget, leaving Labour with yet another liability to manage. The several political polls conducted since the budget announcement have underscored the point and the relegation of Helen Clark as preferred Prime Minister has delivered an unequivocal message that the public is looking for a new tune and fresher faces in the body politic. This won't be lost on Clark, who has long telegraphed a third term reshuffle to bring Labour's 'younger' talent onto Labour's front benches. First termers Maryan Street and Shane Jones are worthy candidates, but their elevation is unlikely to be enough to address public dissatisfaction, which has its sources higher in Labour's batting order. Of course, both Labour and National have downplayed the polls and pointed out that a lot can happen in 18 months. Amongst Wellington's latte-sippers, no-one is prepared to dismiss Clark's skills as a coalition builder and there is some speculation that National may have peaked too soon. In a pre-MMP world that may well have been the case. Then, even seriously wounded governments could, more often than not, limp home by sheer force of will. But that was then and as Labour's support parties assess the strength of public sentiment now, they will be alive to the very real disadvantages - and advantages - of propping up an unpopular regime. Already, Winston Peters raised the stakes of his pre-election negotiations with National by pointing to the safe seat that Labour has allegedly thrown his way. Peter Dunne has raised stakes of his own by reminding Labour that his support should not be taken for granted. Labour is on notice that United is looking for early wins - and credit - on the major points of its support agreement and the big hint has been dropped that political marriages are not eternal. It would be rash, on the basis of that, to assert that an early election is inevitable, or even probable. Labour continues to command a majority and the defection of one or even two parties, although crippling, will not necessarily be fatal. But with the hands of the minor parties being strengthened, the environment for horse trading on key policy planks, such as climate change, has been dramatically enhanced as Labour tries to buy the time necessary to shore up its position for 2008. Gordon Copeland Strengthens Dunne's handParadoxically, Gordon Copeland's desertion from United Future has added strength to Peter Dunne's hand. By making his continued support for the Government on matters of confidence and supply contingent on continued progress on Labour's post-election agreement with United Future, Copeland has provided Dunne with a useful edge in his behind the scenes dealings with the Prime Minster. Copeland's natural leanings are toward National and provide a useful counter-point to those of his former colleague, Judy Turner. This will lend Dunne credibility in any implied threats he may make about leaving his latest political home. While that bigger game is played out, Copeland will work with old colleague, Larry Baldock, on the formation of the 'Future New Zealand Party'. Issue-specific and based on 'Christian values' the Party will focus on the repeal of the recently passed 'anti-smacking' legislation, making that a contingency of any future negotiations on the formation of a government after the 2008 election.
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IN PARLIAMENT |
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Bills IntroducedTaxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters) Bill This Bill proposes to enact key decisions following from the Business Tax Review, including the introduction of a tax credit for research and development and the reduction of the company tax rate from 33% to 30% from the start of the 2008-09 income year. The Bill also proposes enhancements to the KiwiSaver Scheme (including a tax credit and compulsory employer contributions for members between 18 years of age and the age of eligibility to withdraw the member's interest); and tax incentives for giving to charitable organisations (by introducing measures to remove the current caps on the dollar amount of charitable donations that are eligible for tax relief). Weathertight Homes Resolution Services (Remedies) Amendment Bill The purpose of the Bill is to clarify the remedies that may be claimed under the Weathertight Homes Resolution Services Act and may be ordered by the Weathertight Homes Tribunal in determining a claim adjudicated by it. Those remedies may include general damages for mental distress and anxiety. At Select CommitteeThe Taxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters) Bill has been referred to the Finance and Expenditure committee for report back by 16 November. Submissions close on 12 July. The Weathertight Homes Resolution Services (Remedies) Amendment Bill has been referred to the Social Services committee for report back by 18 June. Submissions are not called.
Bills Reported BackKerikeri National Trust Bill Bills DelayedThe report-back dates on the following Bills have been delayed: Copyright (New Technologies and Performers' Rights) Amendment Bill: now 11 July Supplementary Order PapersSOP 114: Social Security Amendment Bill The amendment to clause 2 has the effect that all of Part 1 and Schedules 1 to 3 will come into force on 2 July 2007. The SOP also amends clause 20 and a new clause 33A replaces section 77(4)(b) of the principal Act with a provision that expands on the exceptions whereby a beneficiary who is absent from New Zealand may continue to receive a benefit. The beneficiary must be in receipt of an invalid's benefit on the grounds of sickness, injury, disability, or total blindness, and is absent in order to receive vocational training or disability assistance-dog training. Acts AssentedCrimes (Substituted Section 59) Amendment Act 2007 New RegulationsAccommodation Determination 2007 Hearings Of NoteThe Commerce committee heard further evidence on the Major Events Management Bill. It also commenced hearing evidence on its inquiry into valuation methodology and practice for valuing State-Owned Enterprises. Evidence was also heard in relation to the Housing Affordability Inquiry. The Committee is expected to finish its deliberations on the Bill by 12 June. It is scheduled to report back to the House on 15 June. The Education and Science committee was briefed on CCMAU's monitoring of Crown Research Institutes ("CRIs"). Discussion was held on the financial performance of the CRIs, with concerns from National that the CRIs were under-performing financially. Executive Director, Murray Wright, explained that CRIs have a range of financial and non-financial objectives and that they must be sufficiently profitable to maintain their capabilities. National questioned whether there is a case to consider a new structure for CRIs and Mr Wright advised the committee that alternative structure options have not been considered by CCMAU. The Government Administration committee has continued its consideration of the Therapeutic Products and Medicines Bill; the Animal Welfare (Restriction on Docking of Dogs Tails) Bill; the Births, Deaths, Marriages and Relationships Registration Amendment Bill; and the Statutes Amendment Bill. The Health committee considered further the Mental Health Commission Amendment Bill and the Official Information (Openness of District Health Boards New Zealand) Bill. Further evidence was heard on the Health (Drinking Water) Amendment Bill and evidence received from the Ministry of Health on its contract with the Order of St John for the supply of ambulance services. The sub-committee also continues its inquiry into obesity and type two diabetes. The Local Government and Environment committee continues to hear evidence on the Waste Minimisation (Solids) Bill. On 17 May, the committee was briefed by the Office of the Auditor-General on its performance audit of territorial authorities' waste management planning for solid waste. The committee also continues to hear evidence on the Building (Late Consent is a Free Consent) Amendment Bill. The Regulations Review committee has considered complaints regarding the Dairy Industry Restructuring (Raw Milk) Regulations 2001, and the Notice of Scopes of Practice and Related Qualifications prescribed by the Nursing Council of New Zealand. The committee is also considering regulation-making powers in the Aviation Security Legislation Bill. The Transport and Industrial Relations committee has continued to hear evidence on the Aviation Security Legislation Bill, the Airport Authorities (Sale to the Crown) Amendment Bill and the Minimum Wage (Abolition of Age Discrimination) Amendment Bill.
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Land Transport Sector Review Maori Governance
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IN CONSULTATION |
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What's New
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The Government's Preferred Options for Reform of the Real Estate Agents Act 1976 Click here to view the consultation document. The consultation document builds on earlier work and contains draft proposals for amendments to the current Act. Written submissions are requested and are due by 10 July.
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LinksThis
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© Russell McVeagh 2005. All rights reserved.