NEWS ON POLICY AND POLITICS
28 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

IN POLITICS

I will survive?
Helped by the previous week's favourable poll results, National's Don Brash this week survived what Party watchers had speculated might be 'crunch time' for his leadership more...

Brian Connell Suspended
Whilst Dr Brash has survived the immediate fall-out of the revelations about his private life, Rakaia MP, Brian Connell, did not more...

Government Blues
The other loser of the political wrangling of the past few weeks has, of course, been the government itself more...

IN PARLIAMENT

Waiting in the Wings
Parliament might be in recess, but the world continues to turn and, as expected, members bills are figuring as an increasingly important part of the political process more...

Bills Introduced more...
First Readings more...
Bills Before Select Committee
Open for submissions more...
Submissions closed more...
Second Reading more...
Committee Stage more...
Third Reading more...
Bills Reported Back
Te Arawa Lakes Settlement Bill more...
Immigration Advisers Licensing Bill more...
Testing Laboratory Registration Amendment Bill more...
Act Assented more...

IN OTHER NEWS

Tax Compromise on Offshore Investment Issue more...
Biofuels Proposal more...
Takeovers Panel Re-appointments Announced more...

IN CONSULTATION

Discussion documents and requests for submissions more...


IN POLITICS

I Will Survive?

Helped by the previous week's favourable poll results, National's Don Brash this week survived what Party watchers had speculated might be 'crunch time' for his leadership. Despite a series of political missteps and the unwelcome revelations about his private life, Brash has managed to retain the support of his caucus.

He is, however, far from out of the woods. Dissatisfaction with his performance is high, particularly among those annoyed at the gift his association with the Exclusion Brethren and his personal life made for a beleaguered government.

However, the combination of good luck and public sentiment that has seen National emerge the winner from the recent imbroglio also played a part in reducing caucus temperatures. Some effective management by Deputy Leader, Gerry Brownlee should be acknowledged. So should Brash himself in managing to 'stick to message' in the face of severe provocation. Whilst caucus is for now content to wait and see, the lingering question around a leadership challenge is not 'if', but 'when'.

The maintenance of the leadership status quo is not for want of talent in National's ranks. John Key is the obvious front-runner, while a strong performance in the education portfolio and a couple of statesman-like speeches have brought Bill English back into contention. Parallels with John Howard are premature, but English should not be discounted over the longer term - even if he might over the coming months. Katherine Rich also stands out as a worthy candidate for advancement in any new line-up that may eventuate.

Perhaps one of the surprises - and an unexpected winner - of recent weeks has been Gerry Brownlee. Not regarded as a serious challenger for the top slot, Brownlee has succeeded in impressing the previously unimpressed and seems likely to have won for himself the role of Deputy, no matter who eventually steps into Dr Brash's shoes.

For all that this speculation makes for entertaining reading over the lattes, it should not be allowed to divert from National's real problem, which is how to form a government. Despite the growing unpopularity of the Labour-led administration and its 11 point lead in the polls, National would still find it hard to govern. The cards of the MMP deck are stacked against it and it is yet to demonstrate the coalition building skills that have seen Labour returned to power for a second and third term.

National's choices are limited. There are always dangers in discounting the redoubtable Winston Peters, but it's likely that in the aftermath of the next election the major parties will have a shallower pool from which to draw. United Future and ACT might well hang in at the margins, but it is the Maori Party and the Greens who, on current numbers, will call the shots. Both are likely beneficiaries of the disaffection with Labour and both will be forces with which to reckon. In this light Brownlee's recently hinted support for a reassessment of the Foreshore and Seabed legislation is timely and may indicate that National might be equipping itself to make a better fist of forming a working coalition than it did in 2005.

Brian Connell Suspended

Whilst Dr Brash has survived the immediate fall-out of the revelations about his private life, Rakaia MP, Brian Connell, did not. Rightly or wrongly fingered for his public comments about discussions within the sanctity of the caucus room, Connell was suspended on an indefinite basis.

The decisiveness with which this was done was a welcome signal and makes it clear that patience for destabilising gamesmanship of the sort that has plagued the Party over the past few years has worn thin and it will not be tolerated in the future.

Government Blues

The other loser of the political wrangling of the past few weeks has, of course, been the government itself. Public opinion has decisively turned against it and the potential for it to command the numbers that will allow it to pass retrospective legislation to deal with the pledge card problem is looking increasingly remote. Whether this will produce a much-needed change of style remains to be seen, but Labour strategists will undoubtedly be exercised by the general disaffection with its tactics to date.

 

IN PARLIAMENT

In The Wings

Parliament might be in recess, but the world continues to turn and, as expected, members bills are figuring as an increasingly important part of the political process.

Some 27 members bills are waiting in the wings. They range across areas as diverse as the drinking age, 'death with dignity', teen health checks and contract prisons. Not included in the count, but likely to be in the near future, are additional bills repealing the foreshore and seabed legislation and banning the public sale of fireworks.

How many see the light of day is moot, but the possibilities are:

  • Health and Safety in Employment (Limitation of Duties in Relation to Farm Land) Amendment Bill. Shane Ardern - National
  • Conservation (Net Conservation Gain) Amendment Bill. Chris Auchinvole - National
  • Injury Prevention, Rehabilitation, and Compensation (Abolition of Vocational Independence Assessments) Amendment Bill. Sue Bradford - Greens.
  • Broadcasting (2005 Election Broadcasting Reimbursement) Amendment Bill. Don Brash - National
  • Death with Dignity Bill. Peter Brown - New Zealand First.
  • Land Transport Management (Public Private Partnerships) Amendment Bill. Gordon Copeland - United
  • Education (Establishment of Universities of Technology) Amendment Bill. Brian Donnelly - New Zealand First
  • Education (National Standards of Literacy and Numeracy) Amendment Bill. Bill English - National
  • Sale of Liquor (Objections to Applications) Amendment Bill. George Hawkins - Labour
  • Local Government (Rates Poll Demand) Amendment Bill. Rodney Hide - ACT
  • Country of Origin Food Labelling Bill. Sue Kedgley - Greens
  • Auckland Local Government Reform Bill. John Key - National
  • Resource Management (Overdue Consents) Amendment Bill. Colin King - National
  • Head of State Referenda Bill. Keith Locke - Greens
  • Sale of Liquor (Increase of Drinking Age) Amendment Bill. Ron Mark - New Zealand First.
  • Health and Safety in Employment (ILO Convention 155) Amendment Bill. Sue Moroney - Labour
  • Treaty of Waitangi (Removal of Conflicts of Interest) Amendment Bill. Pita Paraone - New Zealand First
  • Parole (Truth in Sentencing) Amendment Bill. Heather Roy - ACT
  • Local Electoral (Repeal of Race-Based Representation) Amendment Bill. Tony Ryall - National
  • Land Transport (Left Hand Law) Amendment Bill. Lockwood Smith - National
  • Weathertight Homes Resolution Services (Timely and Fair Resolutions) Amendment Bill. Lockwood Smith - National
  • Teen Health Check Bill. Barbara Stewart - New Zealand First
  • Education (Schools Review Authority) Amendment Bill. Nandor Tanczos - Greens
  • Adoption (Equity) Amendment Bill. Metiria Turei - Greens
  • Corrections (Contract Prisons) Amendment Bill. Judy Turner - United
  • Control of Noisy Exhausts Bill. Nicky Wagner - National.

Bills Introduced

Wills Bill
Government Bill. Introduced 08/09/06. Hon Clayton Cosgrove.

This Bill is intended to restate the existing law governing wills in a single statute in plain, modern language that is clearer and more accessible, and implement certain reforms to enhance and modernise the substantive law and remove certain anomalies.

Succession (Homicide) Bill
Government Bill. Introduced 08/09/06. Hon Clayton Cosgrove.

The Bill is intended to codify the law that precludes a person who unlawfully kills another person from benefiting as a result of the death, whether from the victim's estate, or from other property arrangements.

Arbitration Amendment Bill
Government Bill. Introduced 08/09/06. Hon Clayton Cosgrove.
This Bill is intended to improve the operation of the Arbitration Act 1996 by implementing the principal recommendations of the Law Commission's 2003 report, Improving the Arbitration Act 1996.

Members Bills Introduced

Airport Authorities (Sale to the Crown) Amendment Bill.
Introduced 07/09/06. Darren Hughes.

The Bill is intended to address problems identified in the petition of Ross Sutherland and 584 others surrounding the sale of Paraparaumu Airport. The Transport and Industrial Relations select committee recommended several changes to the Airports Authorities Amendment Act 1966 to ensure that airports of strategic importance remain in operation even if commercial imperatives would see the airport closed and sold.

Liquor Advertising (Television and Radio) Bill
Introduced 07/09/06. Jeanette Fitzsimmons.

The Bill seeks to address what its drafters represent as the "aggressive promotion of alcohol" through the broadcast media. The association of alcohol consumption with lifestyle benefits is specified as a contributing factor to New Zealand's binge drinking culture and, in something of an over-reach, the Bill proposes to ban all liquor advertising through the broadcast media.

Exceptions are specified, but only in respect of broadcast material originating outside New Zealand where liquor promotion is not the primary purpose and trademark identification is other than incidental. The Bill intends that film or broadcast intended for sale or distribution in New Zealand, or targeting a New Zealand audience, will be subject to the ban. Offence provisions specify a fine of up to $50,000 for broadcasters and $100,000 for manufacturers, importers or distributors.

The Bill is expected to receive its first reading on the next member's day, which is 11 October.

First Readings

Arbitration Amendment Bill (awaiting 1st reading)
Resource Management (Restricted Coastal Activities) Amendment (awaiting 1st reading)

Before Select Committee

Open for submissions

Bill Select committee Submissions close Report due
Human Rights (Women in Armed Forces) Amendment Bill Foreign Affairs, Defence & Trade Submissions not yet called 5 March 07
Marine Reserves (Consultation with Stakeholders) Amendment Bill Local Government & Environment Submissions not yet called 16 November 07
Minimum Wage and Remuneration Amendment Bill Transport & Industrial Relations 12 October 22 February 07
Official Information (Openness of District Health Boards New Zealand) Amendment Bill Health 27 October 5 March 07
Principles of the Treaty of Waitangi Deletion Bill* Justice & Electoral 20 October 25 January 07
Weathertight Home Resolution Services Amendment Bill Social Services 6 October 4 December

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 29 March 07
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
Customs and Excise Amendment Bill (No 2) Foreign Affairs, Defence and Trade 31 January 07
Easter Sunday Shop Trading Amendment Bill Commerce 16 November
Electoral Integrity Amendment Bill Justice & Electoral 5 June
Employment Relations (Flexible Working Hours) Amendment Bill (set aside for one year from 24 March 06 for further research) Transport & Industrial Relations 30 April 07
Employment Relations (Probationary Employment) Amendment Bill* Transport & Industrial Relations 16 November
Evidence Bill Justice & Electoral 31 October
Health (Drinking Water) Amendment Bill Health 20 December
Human Tissue (Organ Donation) Amendment Bill Health 2 November
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
Maori Purposes Bill Maori Affairs 21 November
Marine Reserves Bill Local Government & Environment 28 February 2007
Minimum Wage (Abolition of Age Discrimination) Amendment Bill Transport & Industrial Relations 1 March 2007
Ngati Mutunga Claims Settlement Bill Maori Affairs 27 October
NZ Bill of Rights (Private Property Rights) Amendment Bill Justice & Electoral 28 February 2007
NZ Day Bill* Justice & Electoral 28 February 07
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
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
Shop Trading Hours Act Repeal (Easter Trading) Amendment Bill* Commerce 13 December
Social Security (Long-term Residential Care) Amendment Bill Social Services 30 September


Second Reading

Climate Change Response Amendment Bill
Crimes (Intimate Covert Filming) Amendment Bill
Crimes Torture Amendment Bill
Criminal Procedure Bill
CYF Amendment Bill (No 4)
Disabled Persons Employment Promotion (Repeal & Related Matters) Bill
Education (Establishment of Universities) Amendment Bill
Electoral (Reduction in Number of Members of Parliament) Amendment Bill
Energy Safety Review Bill
Immigration Advisers Licensing Bill
Oaths Modernisation Bill
Police Amendment Bill (No 2)
Residential Tenancies Amendment Bill
Residential Tenancies (Damage Insurance) Amendment Bill
Sports Anti-Doping Bill
Statutes Amendment Bill (No 5)
Unsolicited Electronic Messages Bill
Veterinarians Bill

Committee Stage

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)
Communications Legislation Bill
Criminal Procedures Bill
Geographic Indications (Wine & Spirits) Registration Bill
Insolvency Law Reform Bill
Parental Leave and Employment Protection (Paid Parental Leave for Self-Employed Persons) Amendment Bill
Standards Amendment Bill
War Pensions Amendment Bill - 3rd Reading Interrupted

Bills Reported Back

Te Arawa Lakes Settlement Bill
This Bill was reported back from the committee of the whole House on 12/9/06.

The Bill records the acknowledgements and apology given by the Crown to Te Arawa in the deed of settlement dated 18 December 2004 and gives effect to certain provisions of the deed of settlement, which settles the Te Arawa lakes historical claims and the Te Arawa lakes remaining annuity issues. The committee has examined the Bill and recommends it be passed with amendments.

Immigration Advisers Licensing Bill
This Bill was reported back from the Transport and Industrial Relations Committee on 4/9/06.

The Bill creates a licensing regime for individuals who provide immigration advice. The purpose of the Bill is to promote and protect the interests of consumers receiving immigration advice, and to enhance the reputation of New Zealand as a migrant destination. The committee has examined the Bill and recommends it be passed with amendments.

Testing Laboratory Registration Amendment Bill
This Bill was reported back from the committee of the whole House on 13/9/06. The Bill was formerly part of the Standards and Conformance Bill as reported from the Commerce Committee.

Act Assented

Meat Board Amendment Act 2006
KiwiSaver Act 2006
Child Support Amendment Act 2006
Standards Amendment Act 2006
Te Arawa Lakes Settlement Act 2006
Testing Laboratory Registration Amendment Act 2006

 

IN OTHER NEWS

Tax Compromise On Offshore Investment Issue

Finance Minister Michael Cullen and Revenue Minister Peter Dunne find themselves taking what has been described as "a messy U-turn" on the foreign investment rules detailed in the Taxation (Annual Rates, Savings, Investments and Miscellaneous Provisions) Bill.

Concerned by the extent of opposition to the proposal to tax unrealised capital gains from overseas investment, Government has agreed to set up a “deemed rate of return” system which approximates what the earnings might be, and tax that.

The Finance Expenditure select committee has been inundated with thousands of submissions, supplementing the thousands more letters and presentations to individual MPs.

Biofuels Proposal

Government has released a discussion document outlining a proposed sales obligation for biofuels, as part of the government's response to climate change. The proposal would require oil companies to sell a minimum percentage of biofuels in transport fuels, beginning with 0.25% of sales in 2008, and rising to 2.25% by 2012.

The discussion document reports on the supply, distribution, vehicle compliance, and economics of bringing biofuels to the market in New Zealand and can be found at www.transport.govt.nz or from the Ministry of Transport.

Submissions close on 20 October.

Takeovers Panel Re-appointments Announced

Commerce Minister Lianne Dalziel has announced three re-appointments to the Takeovers Panel. They are: Alastair Lawrence (for a two year term); and Colin Giffney and David Quigg, for five year terms.

Alastair Lawrence has a background in investment banking and has substantial experience in debt and equity markets. He has been a member of the panel since 1995, and worked on formulating the code (and its subsequent revision).

Colin Giffney was a managing director of Jordan Sandman Were, and in 1995 established Giffney & Jones, a specialist corporate advisor firm. Mr Giffney has been a member of the New Zealand Stock Exchange since 1979.

David Quigg is a lawyer with a Master's degree based on takeovers law. He is a mergers and acquisitions corporate partner with the firm of Quigg Partners.

These re-appointments take effect from 25 September 2006.

 

IN CONSULTATION
RELEASED BY... ISSUE SUBMISSIONS CLOSE ON...
Ministry of Economic Development Standards, Accreditation and Measurement: Supporting Our Economy This discussion paper seeks comment from stakeholders on New Zealand's standards and conformance infrastructure. 24 November 2006
Ministry of Agriculture & Fisheries Building Resilience: A review of the on-farm adverse events recovery framework. 31 October 2006
Auckland CC Management Plan for Maungawhau Mt Eden Paper to be released 9 August
Dept of Building & Housing Proposed changes to Compliance Documents 6 October
DoC Whanganui National Park Draft Management Plan 29 September
EECA Increasing the uptake of Solar Water Heating 29 September
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
Environment Bay of Plenty Regional Land Transport Strategy 29 September
DoC Review of the Level of Protection for Some Wildlife 3 November
Ministry of Fisheries Review of fisheries management measures for 2006/07 1 October
Ministry of Education Tertiary Education Strategy 2007/12 link to etc etc etc 27 October
Electricity Commission Discussion Paper On Issues Arising From 19 June Grid Emergency No closing date
Electricity Commission Cross-submissions on its Draft Benchmark Agreement & Draft Interconnection Rules 27 September
Electricity Commission Duplicate Protection Rule Amendment Proposal 4 October
Electricity Commission Electricity Hedge Market – Overview; Technical paper  
Ministry of Social Development Review of the Accommodation Supplement 30 September
IRD Ability to Rule Where an Arrangement is Being Audited 30 September
IRD Tax consequences of adopting international financial reporting standards 20 October
IRD Question We've Been Asked on Real Estate Sale and Purchase: GST Apportionments of Income and Expenditure 27 October
IRD Definition of Place Of Effective Management 3 November
IRD Sale of long-term residential rental properties: GST implications 24 November
Land Transport New Zealand Changes to transport services licensing fees and charges 13 October



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