NEWS ON POLICY AND POLITICS
11 September, 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

A MATTER OF OPINION

Reform over Substance?
It was a near-run thing, but in the end Rodney Hide's Rating Cap Bill simply wasn't able to get past its first reading. more...

IN PARLIAMENT

Bills Introduced more...
First Readings more...
Before Select Committee more...
Reported Back
Immigration Advisors Licensing Bill more...
Unsolicited Electronic Messages Bill more...
Second Reading more...
Committee stage more...
Third Reading more...
Acts Assented more...

IN CONSULTATION

more...

IN OTHER NEWS

KiwiSaver Legislation Passed
more...
Courts Receive Resource Boost more...
Law Change Planned for ACC Levy Rates more...

 


A MATTER OF OPINION

Reform Over Substance?

It was a near-run thing, but in the end Rodney Hide's Rating Cap Bill simply wasn't able to get past its first reading. As a result, the notion of limiting the power of local governments to raise revenue has, once again, been relegated to the back burner. There it will stay, until resurrected by more sympathetic government or otherwise addressed as part of the independent inquiry into local body rates announced last month.

The chances of rating caps being revisited as part of any government-directed inquiry, though, is remote. Cynics might observe that this latest inquiry was driven simply by government desire to head off the investigation into local body rating by the Local Government and Environment Select Committee foreshadowed a week earlier by National's John Carter. There may well be something to that. Confronted with the prospect of an inquiry over which it had no control - as well as terms of reference that were likely to be inconveniently broad - government might have decided to follow the battle-tested rule that if you have to have an inquiry, make sure you have it on your own terms.

Whatever the reasoning behind it, the announcement of an inquiry had the immediate advantage of taking at least some of the heat out of an increasingly trying political issue. The niceties of whether that inquiry is by select committee or independent body will be irrelevant to most people, who will simply be pleased that 'gumint' has stirred itself to do something. For the time being that will be enough.

But government should have no illusions about its lee-way with the punters on this one. Announcements of extended rates rebates for the impecunious notwithstanding, people are looking for meaningful action. How meaningful that action will be will rest on the extent to which government is prepared to open up the inquiry to public submissions and allow a proper examination of year on year rates inflation.

The parameters of the inquiry - and who will undertake it - are still unknown. In announcing it, Minister of Local Government, Mark Burton, said that the terms of reference would be made clear "in due course". That was nearly three weeks ago.

Any further announcements about the reach of the inquiry probably will rest on Ministers' decision over what should be done about that most vexed of political problems, Auckland.

Until recently, local government reform was a nettle that central government was unwilling to grasp - not least when it came to Auckland. As recently as last week Minister of Auckland Issues, Judith Tizard, reflected this reluctance by telling Parliament that local government reorganization was just a distraction and a likely waste of time.

Whatever Ms Tizard's personal views might be, her colleagues' frustration with the obstacles thrown in the way of infrastructure development by Auckland's increasingly Byzantine governance has become palpable. It is this that lies behind the Prime Minister's meeting - also last week - with Auckland mayors on options for fundamental change in the larger city's governing structures.

A hard look at that will no doubt be welcome to a lot of Aucklanders. But the form of government doesn't of itself deal with the substance of how its funded, by whom and by how much. These are the questions that the public will once again focus on once the dust of any restructuring settles. There is therefore another nettle that the government should grasp and that is to ensure that the independent inquiry should address what a structural review will not.

Powers of local competence, consultation obligations, long term community plans, rates differentials and development contributions all need to be on the table, as should that even more difficult question, how much local government is enough government?

 

IN PARLIAMENT

Bills Introduced

Official Information (Openness of District Health Boards New Zealand) Amendment Bill: Members Bill (Jackie Blue, National)

The Bill seeks to amend Schedule 1 of the Official Information Act 1982 by adding words to the item relating to Hospital boards. This is to clarify that any entity representing one or more District Health Boards is covered.

First Readings

Building (Late Consent is a Free Consent) Amendment Bill. Members Bill
The Bill seeks to amend the Building Act 2004 (the Act) “ …. to prevent a territorial authority from charging fees to building consent applicants where the territorial authority has processed the consent in breach of a statutory timeframe."

Human Rights (Women in Armed Forces) Amendment Bill: Members Bill (Lynne Pillay, Labour).
This Bill seeks to repeal section 33 of the Human Rights Act 1993 to remove discrimination preventing women serving in combat in the armed forces. The Bill passed its first reading and has been referred to select committee.

Legal Services (Territorial Customary Rights) Amendment Bill. Government Bill

The Bill seeks “ … to amend the Legal Services Act 2000 to ensure that it applies to persons making application to the High Court for territorial customary rights orders under the Foreshore and Seabed Act 2004."

Minimum Wage and Remuneration Amendment Bill. Members Bill (Darien Fenton) .

This Bill seeks to amend the Minimum Wage Act 1983 to extend its provisions to apply to payments made under contracts for services that are remunerated below minimum wage. The Bill has been referred to the Transport and Industrial Relations Select Committee and submissions have been called for. Submissions close on 12 October 2006.

Resource Management (Restricted Coastal Activities) Amendment Bill. Members Bill (Dr Hon Nick Smith)
The bill seeks to amend the Resource Management Act 1991 (the Act) to reduce the role of the Minister of Conservation (the Minister) in the issuing of a coastal permit by making the Environment Court’s determination of an inquiry into an application for a permit for a restricted coastal activity under Section 118(6) of the Act the final decision and to provide “ … that the coastal permit commences on the date of the decision or a later date determined by the Environment Court."

Southland Agricultural and Pastoral Association Empowering Bill: Private Bill (Eric Roy, National)
The Bill seeks to empower the Southland Agricultural and Pastoral Association Incorporated to sell its fee simple and leasehold interests in the Invercargill Showgrounds, and any other land it may acquire, without having to apply the money received from the sale to purchase other land suitable for the purposes of the Society as required by the Agricultural and Pastoral Societies Act 1908.

Weathertight Homes Resolution Services Amendment: Government Bill

The Bill seeks to amend the Weathertight Homes Resolution Services Act to make enhancements to the assessment and resolution of leaky building claims.

Before Select Committee

Open for submissions

Bill Select committee Submissions close Report due
Customs and Excise Amendment Bill (No 2) Foreign Affairs, Defence and Trade 22 September 31 January 07
Health (Drinking Water) Amendment Bill Health 15 September 20 December
Minimum Wage and Remuneration Amendment Bill Transport & Industrial Relations 12 October 22 February 07
Principles of the Treaty of Waitangi Deletion Bill* Justice & Electoral 20 October 25 January 07

Submissions closed

Bill Select committee Report due
Animal Welfare (Restriction on Docking of Dogs’ Tails) Bill
Govt Administration 14 December
Arms Amendment Bill (No 3) Law & Order 30 September
Business Law Reform Bill Commerce 19 October
Corrections ( Mothers With Babies) Amendment Bill* Law & Order 16 January 07
Crimes (Abolition of Force as a Justification for Child Discipline) Amendment Bill* Justice & Electoral 31 October
Crimes of Torture Amendment Bill Foreign Affairs, Defence & Trade 27 September
Easter Sunday Shop Trading Amendment Bill Commerce 16 November
Electoral (Reduction in Number of Members of Parliament) Amendment Bill Justice & Electoral 14 September
Employment Relations (Flexible Working Hours) Amendment Bill Transport & Industrial Relations 30 April 07
Employment Relations (Probationary Employment) Amendment Bill* Transport & Industrial Relations 14 September
Evidence Bill Justice & Electoral 31 October
Human Tissue (Organ Donation) Amendment Bill Health committee 2 November
Immigration Advisers Licensing Bill Transport & Industrial Relations 13 September
Justices of the Peace Amendment Bill Law & Order 18 January 07
Kerikeri National Trust Bill Local Govt & Environment 25 May 07
Law Reform (Epidemic Preparedness) Bill Govt Administration 26 October
Manukau City Council (Control of Graffiti) Bill Local Government & Environment 14 December
Manukau City Council (Control of Street Prostitution) Bill Local Government & Environment 14 December
Maori Purposes Bill Maori Affairs 21 November
Marine Reserves (Consultation with Stakeholders) Amendment Bill Local Government & Environment 16 November
Marine Reserves Bill Local Government & Environment 28 February 2007
Minimum Wage (Abolition of Age Discrimination) Amendment Bill Transport & Industrial Relations 1 March 2007
NZ Bill of Rights (Private Property Rights) Amendment Bill Justice & Electoral 28 February 2007
NZ Day Bill* Justice & Electoral 28 February 07
Ngati Mutunga Claims Settlement Bill Maori Affairs 27 October
Overseas Investment (Queen's Chain Extension) Amendment Bill Local Government & Environment 28 February 2007
Rail Network Bill Govt Administration 26 May
Reserve Bank of New Zealand Amendment Bill Finance & Expenditure 9 October
Residential Tenancies (Damage Insurance) Amendment Bill * Social Services 2 November
Resource Management (Climate Protection) Amendment Bill Local Government & Environment 14 December
Rotorua Library Trust Fund Variation Bill Government Admin 16 January 07
Sale of Liquor (Youth Alcohol Harm Reduction) Amendment Bill* Law & Order 20 October
Sale of Liquor (Youth Alcohol Harm Reduction: Purchase Age) Amendment Bill* Law & Order 20 October
Sex Offenders Registry Bill Justice & Electoral 31 August
Shop Trading Hours Act Repeal (Easter Trading) Amendment Bill* Commerce 13 December
Social Security (Long-term Residential Care) Amendment Bill Social Services 30 September
Taxation (Annual Rates, Savings Investment, and Miscellaneous Provisions) Bill Finance & Expenditure 24 November
Telecommunications Amendment Bill Finance & Expenditure 6 November
Waitakere Ranges Heritage Area Bill Local Govt & Environment 21 November
Waste Minimisation (Solids) Bill Local Govt & Environment 13 December
Weathertight Homes Resolution Services Amendment Bill Social Services 4 December
Young Offenders (Serious Crimes) Bill Law & Order 28 September

Reported Back

Immigration Advisors Licensing Bill

Insolvency Law Reform Bill

This Bill was reported back from the Commerce Committee last month. The committee has recommended that be passed with amendments.

The Bill updates the process for conducting insolvency under the Companies Act 1993, and repeals and replaces the personal insolvency provisions in the Insolvency Act 1967. Alternative methods of dealing with personal insolvency, a new no-asset procedure, a system of voluntary administration and improving the law on cross-border insolvency are all addressed in the Bill.

Unsolicited Electronic Messages Bill

The Bill is designed to control the flow of spam email, has been reported back to the House by the Commerce select committee. A number of changes have been recommended by the committee, including:

  • deletion of references to "promotional messages";
  • amendment of the Clauses 23, 24 and 25 to remove the requirement that complaints from spam recipients be directed to Internet service providers. This was considered onerous;
  • amendment of clauses 23 and 25 to expand and clarify the powers of the central enforcement agency and include the functions to monitor the industry and liaise and coordinate with foreign agencies;
  • amendment of clause 25 to enable the agency to monitor spam of a sexual nature.
  • amendment of the definition of “commercial electronic message” to apply to links to commercial goods or services;
  • extension of the clause 2 transition period from 4 to 6 months;
  • a provision to ensure that unsubscribing is free of charge and that the “unsubscribe” option is delivered by the same method as the email itself.
  • deletion of the requirement that the primary purpose of the email must be the promotion or marketing of a good or service. The committee wanted no argument as to the “primary” purpose of the email;
  • addition of a new clause 9(1A) to ensure that the unsubscribe option must be implemented within five working days
  • addition of a new clause 17A so it refers specifically to the use (not also the acquisition) of address-harvesting software;
  • alignment of the search and seizure provisions (clauses 48-58) with the Summary Proceedings Act 1957;
  • inclusion of a right of appeal against infringement notices;
  • clarification of when matters under the legislation go to the District Court and the High Court.

Second Reading

Standards and Conformance Bill
Climate Change Response Amendment Bill
Communications Legislation Bill
Crimes (Intimate Covert Filming) Amendment Bill
Criminal Procedure Bill
CYF Amendment Bill (No 4)
Disabled Persons Employment Promotion (Repeal & Related Matters) Bill
Education (Establishment of Universities) Amendment Bill –2nd reading 28 August
Energy Safety Review Bill
Insolvency Law Reform Bill 2nd reading
Oaths Modernisation Bill 2nd reading
Police Amendment Bill (No 2)
Residential Tenancies Amendment Bill
Sports Anti-Doping Bill
Standards and Conformance Bill
Statutes Amendment Bill (No 5)
Unsolicited Electronic Messages Bill
Veterinarians Bill

Committee stage

Employment Relations Amendment Bill
Independent Police Complaints Authority Amendment Bill
Conservation (Protection of Trout as a Non-commercial Species) Amendment Bill (Stalled at committee stage)
CYF Amendment Bill (No 2)
Securities Legislation Bill

Third Reading

Child Support Amendment Bill (No 4)
Criminal Procedures Bill
Geographic Indications (Wine & Spirits) Registration Bill
Parental Leave and Employment Protection (Paid Parental Leave for Self-Employed Persons) Amendment Bill
Westpac NZ Bill
Te Arawa Lakes Settlement
War Pensions Amendment Bill - 3rd Reading Interrupted

Acts Assented

KiwiSaver Bill
Meat Board Amendment Bill
Protected Objects Amendment Act 2006 (2006 No 37).
Gisborne District Council (Alfred Cox Park) Validation Act 2006 (Local Act 2006 No 1).
Appropriation (2006/07) Estimates Act 2006 (Public Act 2006 No 35)

 

IN CONSULTATION
AGENCY SUBJECT CLOSE CONTACT
Auckland CC Waste Management Plan – Hauraki Gulf islands 8 September Neil Abel - 027 454 5630
Auckland CC Management Plan for Maungawhau Mt Eden Paper to be released 9 August  
Department of Conservation E/Coast Hawke’s Bay ConservationManagement Strategy On hold 06 869 0460;
[email protected]
Department of Conservation Whanganui National Park Draft Management Plan 29 September Katy Amundsen - 06 348 8475; [email protected]
Department of Conservation Review of the Level of Protection for Some Wildlife 3 November Michael Gee - 04 471 3140; [email protected]
Ministry of Economic Development Business Tax Review 8 September [email protected]
Ministry of Economic Development Standards, Accreditation and Measurement: Supporting Our Economy 24 November 04 472 0030 [email protected]
Ministry of Economic Development Registration of Financial Institutions; Insurance Supervision of Issuers; Consumer Dispute Resolution and Redress; Non-Bank Deposit-Takers; Collective Investment Schemes; Mutuals' Governance; Securities Offerings; Platforms and Portfolio Management Services 1 December 04 472 0030
Ministry for the Environment Proposed National Environmental Standard for the Clean Up of Contaminated Land Paper coming – no date yet  
Ministry for the Environment Good Practice Guide on Assessing Discharges to Air from Industry; Good Practice Guide on Assessing Discharges to Air from Land Transport Closed 04 439 [email protected]
Ministry of Fisheries Review of fisheries management measures for 2006/07 1 October  
Electricity Commission Discussion Paper On Issues Arising From 19 June Grid Emergency No closing date Darryl Renner – 04 460 8849
Electricity Commission Cross-submissions on its Draft Benchmark Agreement & Draft Interconnection Rules 27 September Jenny Walton - 04 460 8858; [email protected]
Electricity Commission Duplicate Protection Rule Amendment Proposal 4 October Jenny Walton - 04 460 8858; [email protected]
Electricity Commission Electricity Hedge Market – Overview; Technical paper 25 October Jenny Walton - 04 460 8858; [email protected]
Fisheries – Ministry of Review of fisheries management measures for 2006/07 1 October Dave Allen - 09 820 7688; [email protected]
Food Safety Authority - NZ Animal Feed 20 October Carole Inkster - 04 463 2505
Ministry of Health Maternity Facility Access Agreement 21 September  
Ministry of Social Development Review of the Accommodation Supplement 30 September  

 

IN OTHER NEWS

KiwiSaver Legislation Passed

The Minister of Finance Michael Cullen said the passing of the KiwiSaver Bill is an important milestone towards helping hundreds of thousands of New Zealanders secure their financial future.

"The passing of the legislation by 71 votes to 48 underlines the Labour-led government's commitment to making saving a priority. We promised to put financial security in retirement within the reach of every New Zealander and we have delivered," Dr Cullen said.

Courts Receive Resource Boost

The Minister for Courts announced the creation of 19 additional positions within key Courts on Friday.

The positions will be spread across the Auckland District Court (10), Manukau District Court (3) and Christchurch District Court (6).

Law Change Planned For ACC Levy Rates

ACC Minister Ruth Dyson has announced plans for a law change to treat the self-employed and employers the same when setting ACC levy rates.

Legislation will be introduced shortly to amend the Injury Prevention, Rehabilitation and Compensation Act 2001, to allow a merger of the ACC Self-Employed Work Account and ACC Employers’ Account, effective from 1 April 2007.

"The account merger will ensure that ACC levies paid by businesses are fairer, as they will be based on injury risk rather than business structure. It will also ensure that the levies are more stable, for both self-employed and employers," Ms Dyson said.

 


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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 04 495 7532
[email protected]
Doug Bailey - Consultant
Ph 04 495 7572
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