15 April 2009

In this edition:

IN POLITICS

Cullen has (almost) left the building
It was nearly 28 years ago that Michael Cullen entered Parliament as MP for St Kilda. In the intervening years he distinguished himself both in Government and in Opposition, gathering along the way - as all long term politicians do - enduring friends and even more enduring enemies. more...

Let the games commence
The departure of both Clark and Cullen from Parliament will take the lid off what has been an unusual period of calm with the Labour caucus. more...

Privatisation bogeyman stalks ACC
The Opposition and media have continued on the theme of ACC privatisation - the former in pursuit of political points and the latter apparently in pursuit of sales. more...

PROGRESS OF LEGISLATION Business Statement Bills Introduced / Awaiting First Reading Eden Park Trust Amendment Bill Disputes Tribunals Amendment Bill Bills to Select Committee Open for submissions Submissions closed Supplementary Order Papers Bills Passed Third Reading Acts Assented Regulations

SELECT COMMITTEE HEARINGS Emissions Trading Scheme Review Committee Foreign Affairs, Defence and Trade Committee Law and Order Committee Primary Production Committee Privileges Committee LEGISLATION IN THE WINGS IN OTHER NEWS State-Owned Enterprises' Boards Arise Sir / Dame …. Charities Commission Appointments IN CONSULTATION

It was nearly 28 years ago that Michael Cullen entered Parliament as MP for St Kilda. In the intervening years he distinguished himself both in Government and in Opposition, gathering along the way - as all long term politicians do - enduring friends and even more enduring enemies.

That outcome had as much to do with Cullen's considerable intelligence as it did the passage of time. Incisive and with an acerbic wit, Cullen was formidable in caucus and Parliament alike. The tribalism characteristic of his generally less able political colleagues provided both a focus and a vehicle for that wit, giving rise to a sometimes withering snideness in debate and prompting the observation that his level headedness was the consequence of having chips on both his shoulders.

Certainly, his "rich prick" and "we won, you lost, eat that" comments will forever be judged in that vein, as will his maiden speech in which he famously said of his educational benefactors: "I ripped them off for five years then, and I shall get stuck into them again in the next few years." More recently he expressed regret about utterances that owed much to either emotion, youth or, according to Cullen, political myth, which has taken away some of the sting. Properly, they should be seen as part of the colour of the man rather than the man himself.

There should be no doubt that Cullen's contribution to politics has been significant. In his successful political pairing with former Prime Minister Helen Clark alone, he has made an enduring political mark. Without Cullen, Clark's capacity to sustain her administration for three terms would have been very much harder, notwithstanding her own formidable skills as a political technocrat. Throughout his career, he demonstrated consistent political mastery and an always solid command of the House. His absence from the Chamber will be noted - with relief by some and regret by many others.

Cullen now leaves Parliament to assume a directorship at New Zealand Post and to take up Treaty advisory roles with Waikato-Tainui, Ngāti Tūwharetoa and a Napier-based claimant group.

The departure of both Clark and Cullen from Parliament will take the lid off what has been an unusual period of calm with the Labour caucus. Absent have been the recriminations for the Party's solid electoral loss. Absent too has been any debate - at least publicly - about Labour's future direction and the hands that should be on the tiller in the run up to the 2011 election.

Clark and Cullen may well have stepped aside from their former roles as leader and deputy leader in the aftermath of defeat, but their very presence in caucus has to have stifled necessary questions and even more necessary answers about where Labour has been and where it is going.

Certainly, the loss of the political middle ground and an apparent bias to the left are matters with which Labour must come to grips. Failure to do so will reflect an unwarranted sense of self-satisfaction and sense of inevitability about a return to the Treasury benches.

The Opposition and media have continued on the theme of ACC privatisation - the former in pursuit of political points and the latter apparently in pursuit of sales. Yet the evidence for this plot remains wanting.  Nick Smith has consistently rebutted claims of a privatisation agenda. Labour, in response, has pointed to the 'beat up' over the ACC deficit as laying the ground for a betrayal of the social contract over accident compensation.

Certainly National has announced its desire to open the ACC Work Account to competition, but that's not where the trouble is.  Change, where is occurs, is more likely to consist of a winding back of the extensions to coverage made by Labour in the last few years.  The possibility of extending the accredited employer scheme is also on the cards.

The House is in recess and will resume on April 28. When business resumes priority will be given to the committee stage of the Protected Disclosures Amendment Bill, the Māori Trustee Amendment Bill and first readings of Bills introduced.

It is anticipated that Hon Dr Michael Cullen will give his valedictory statement on Wednesday 29 April.

Eden Park Trust Amendment Bill

Type of Bill: Private
Member in Charge: Hon Murray McCully

In 2007 an agreement was made between the Crown, the Eden Park Trust Board and the Eden Park Board of Control whereby the Crown undertook to underwrite the redevelopment of Eden Park for the Rugby World Cup 2011, provided that new governance arrangements were agreed.  This Bill amends the Eden Park Trust Act 1955 to implement these new governance arrangements.  The amendments include:

• providing that the Trust Board is established "exclusively for charitable purposes";
• providing that the Trust Deed can be amended by regulations rather than an Act of Parliament;
• protecting former trustees by retrospectively declaring valid all of their acts and omissions concerning the trust; and
• providing that all past and future trustees are not personally liable for their acts and omissions concerning the trust.

Disputes Tribunals Amendment Bill

Type of Bill: Government        
Member in Charge: Hon Simon Power

This Bill amends the Disputes Tribunals Act 1988 to increase the maximum claim levels of the Disputes Tribunal from $7,500 or $12,000 (with the consent of all parties) to $15,000 or $20,000 (with the consent of all parties).  The Explanatory note records that this change is necessary to "enable an increased number of New Zealanders to resolve their disputes in a simple, cheap, fast, and less formal forum.  The Tribunal will continue to operate on its current basis, balancing the required protections for parties against the need to provide simple, cheap, and fast access to justice."

Corrections (Contract Management of Prisons) Amendment Bill
Disputes Tribunals Amendment Bill
Insolvency Amendment Bill
Legal Services Amendment Bill
Privacy (Cross-border Information) Amendment Bill
Social Assistance (Payment of New Zealand Superannuation and Veterans Pension Overseas) Amendment Bill

Open for submissions

Bill	Select committee	Submissions close (2009)	Report due (2009)
Building Amendment Bill (No 2)	Local Government and Environment	9 April	11 May
Children, Young Persons, and Their Families (Youth Courts Jurisdiction and Orders) Amendment Bill	Social Services	17 April	18 August
Corrections (Contract Management of Prisons) Amendment Bill	Law and Order	22 May	26 September
Disputes Tribunals Amendment Bill	Justice and Electoral	27 April	31 May
Franklin District Council (Contribution to Funding of Museums) Amendment Bill	Local Government and Environment	24 April	3 September
Gangs and Organised Crime Bill	Law and Order	27 March	9 August
Insolvency Amendment Bill	Commerce	16 April	28 May
Land Transport (Driver Licensing) Amendment Bill	Transport and Industrial Relations	Submissions not called	30 June
Legal Services Amendment Bill	Justice and Electoral	Submissions not called	2 October
Marine Reserves (Consultation with Stakeholders) Amendment Bill	Local Government and Environment	Submissions not called	30 June
Privacy (Cross-border Information) Amendment Bill	Justice and Electoral	14 May	1 October
Reserves and Other Lands Disposal Bill	Primary Production	24 April	9 September
Sale and Supply of Liquor and Liquor Enforcement Bill	Justice and Electoral	23 April	10 September
Securities Disclosure and Financial Advisers Amendment Bill	Commerce	20 March	30 April
Sentencing and Parole Reform Bill	Law and Order	24 April	17 August
Social Assistance (Payment of New Zealand Superannuation and Veterans Pension Overseas) Amendment Bill	Social Services	29 May	30 September
Trade (Safeguard Measures) Bill	Foreign Affairs, Defence and Trade	14 April	10 September
Unit Titles Bill	Social Service	24 April	5 September

Submissions closed

Bill	Select committee	Report due (2009)
Aquaculture Legislation Amendment Bill (No 2)	Primary Production	30 June
Arms Amendment Bill (No 3)	Law and Order	30 June
Criminal Investigations (Bodily Samples) Amendment Bill	Justice and Electoral	12 August
Cultural Property (Protection in Armed Conflict) Bill	Government Administration	30 June
Domestic Violence (Enhancing Safety) Bill	Justice and Electoral	15 June
Electricity (Continuance of Supply) Amendment Bill	Commerce	30 June
Judicial Matters Bill	Justice and Electoral	30 June
Land Transport Amendment Bill (No 4)	Transport and Industrial Relations	30 June
Marine Reserves Bill	Local Government and Environment	30 June
Palmerston North Showgrounds Act Repeal Bill	Local Government and Environment	30 June
Port Nicholson Block (Taranaki Whanui ki Te Upoko o Te Ika) Claims Settlement Bill	Māori Affairs	30 June
Resource Management (Simplifying and Streamlining) Amendment Bill	Local Government and Environment	19 June
Sale of Liquor (Objections to Applications) Amendment Bill	Social Services	30 June
Sentencing (Offender Levy) Amendment Bill	Justice and Electoral	12 August
Settlement Systems, Futures, and Emissions Units Bill	Commerce	30 June
Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill	Finance and Expenditure	30 June
Waikato-Tainui Raupatu Claims (Waikato River) Settlement Bill	Māori Affairs	30 June
Whakarewarewa and Roto-a-Tamaheke Vesting Bill	Māori Affairs	30 June

 

Land Transport Amendment (No 4) Bill - SOP10
Minimum Wage and Remuneration Amendment Bill - SOP13
Wanganui District Council (Prohibition of Gang Insignia) Bill - SOP12

Parole (Extended Supervision Orders) Amendment Bill

Taxation (Business Tax Measures) Act 2009

Adoption Amendment Act 2008 Commencement Order 2009 (SR 2009/76)
Administration (Prescribed Amounts) Regulations 2009 (SR 2009/70)
Child Support Amendment Act 2008 Commencement Order 2009 (SR 2009/78)
Children, Young Persons, and Their Families Amendment Act 2008 Commencement Order 2009 (SR 2009/79)
Civil List Determination 2009
Care of Children Amendment Act 2008 Commencement Order 2009 (SR 2009/77)
Copyright (New Technologies) Amendment Act 2008 Commencement Amendment Order (No 2) 2009
Commodity Levies (Non-proprietary and Uncertified Herbage Seeds) Order 2009
Corrections Amendment Act 2009 Commencement Order 2009
Customs Export Prohibition (Toothfish) Order 2009
Customs Import Prohibition (Toothfish) Order 2009
Domestic Violence Amendment Act 2008 Commencement Order 2009 (SR 2009/80)
Game Licence, Fees, and Forms Notice 2009
Family Courts Amendment Act 2008 Commencement Order 2009 (SR 2009/81)
Family Courts Fees Regulations 2009 (SR 2009/88)
Family Proceedings Amendment Act 2008 Commencement Order 2009 (SR 2009/83)
Family Protection Amendment Act 2008 Commencement Order 2009 (SR 2009/82)
Fisheries (Interim and Annual Deemed Values) Notice (No 3) 2003 Amendment Notice 2009
Fisheries (Interim and Annual Deemed Values) Notice 2003 Amendment Notice 2009
Fisheries (Quota Management Areas, Total Allowable Catches, and Catch Histories) Amendment Notice 2009
Fisheries (Southern Blue Whiting Total Allowable Catch) Amendment Notice 2009
Fisheries (Southern Blue Whiting Total Allowable Commercial Catch) Amendment Notice 2009
Injury Prevention, Rehabilitation, and Compensation (Motor Vehicles Levies) Regulations 2009
Intellectual Disability (Compulsory Care and Rehabilitation) Amendment Act 2008 Commencement Order 2009 (SR 2009/84)
Mental Health (Compulsory Assessment and Treatment) Amendment Act 2008 Commencement Order 2009 (SR 2009/85)
Product Safety Standards (Children's Nightwear and Limited Daywear Having Reduced Fire Hazard) Amendment Regulations 2009
Property (Relationships) Amendment Act 2008 Commencement Order 2009 (SR 2009/86)
Protection of Personal and Property Rights Amendment Act 2008 Commencement Order 2009 (SR 2009/87)
Resource Management (Forms, Fees, and Procedure) Amendment Regulations 2009 (SR 2009/73)
High Court Amendment Rules 2009 (SR 2009/75)
Securities Act (Fletcher Building Limited) Exemption Notice 2009 (SR 2009/68)
Securities Act (Short Form Prospectus) Exemption Notice 2009
Securities Act (General Electric Company) Exemption Notice 2009
State Sector (Employee Provisions Applied to Transfer of Government Technology Services Functions from State Services Commission to Department of Internal Affairs) Order 2009 (SR 2009/72)
Supreme Court Amendment Rules 2009
Takeovers Code (Opus International Consultants Limited) Exemption Notice 2009 (SR 2009/89)
Takeovers Code (Phitek Systems Limited) Exemption Notice 2009 (SR 2009/67)
Takeovers Code (Westgate Power Centre Limited) Exemption Notice 2009 (SR 2009/69)
Trans-Tasman Mutual Recognition (Changes to Permanent and Special Exemptions and Special Exemptions Extension) Regulations 2009 (SR 2009/71)
United Nations Sanctions (Somalia) Amendment Regulations 2009 (SR 2009/74)

Most Select Committees met in the past fortnight to consider Crown agency financial reviews.  The financial review process is all but over now, with most Committees presenting their reports to the House, which noted and debated the reports on Tuesday afternoon as part of the committee stage of the Appropriation (2007/2008 Financial Review) Bill.  Other topics discussed at Committees are detailed in the sections below. 

The Committee continues to meet each Thursday as it works towards its tight reporting deadline.  Last week the Committee's chairman, Peter Dunne, released a list of 108 submitters from whom the Committee would hear.

In the past week the Committee heard from:

• Holcim.  Holcim accepted the need for the ETS and the need to combat climate change.  However, the ETS in its present form does not encourage investment in new technology and cannot address swings in demand.  An ETS with intensity-based credit allocations for at risk industries would be best (intensity-based allocations reward initiatives that will reduce the intensity at which businesses emit greenhouse gases).
• Methanex.  Methanex advocated an intensity-based ETS, like Holcim, and the allocation of more free units.  Failing to allocate more free units could make Methanex's New Zealand operations unsustainable.
• New Zealand Steel.  NZ Steel submitted that the global recession made the ETS harder to bear for the company than even last year. 
• Temperzone.  Temperzone submitted that hydroflurocarbons should not be included in the ETS at all and that a consequence of including HFCs in the ETS could include fewer refrigerants being used in New Zealand, which would result in the consumption of more electricity to achieve the same refrigeration ends.
• Fletcher Building.  Fletchers supported an ETS to reduce emissions but highlighted the risks to the emissions-intensive industries from the current ETS, which could see the demise of New Zealand's cement and steel production.  Fletchers did not advocate aligning Australia's and New Zealand's schemes because of the countries' different emission profiles.
• O-I.  O-I, based in Auckland, is the country's only glass bottle manufacturer.  O-I also recycles glass.  The business consumes vast quantities of electricity and fears that the ETS will render it internally uncompetitive.  O-I submitted that the ETS should be delayed.
• Sustainability Council.  The Council emphasised the importance of a greenhouse price in reducing emissions, however, the Council views the ETS as "unfair and ineffective" because it will only reduce emissions marginally and imposes 90 percent of its costs on 30 percent of emissions.  The Council sees agriculture's exclusion until 2012 from the ETS as a "gross distortion" of carbon prices.  Reducing agricultural emissions is also the best way for the country to seriously cut its emissions.  The Council does not support a trans-Tasman ETS because of the different emissions profiles.
• Seafood Industry Council.  The Council called for equitable treatment of the seafood industry compared to other export-exposed industries which could suffer under the ETS.  The ETS could add $30m per annum to the industry's costs, via increased fuel costs.
• Talleys Group.  Talleys characterised the ETS as a greater threat to the country than climate change.  New Zealand should not be a global guinea pig for climate change policies.  Talleys submitted that the fishing industry should be excluded altogether from the ETS and, as an alternative, that overseas vessels operating in New Zealand waters should be subject to the ETS.
• Te Ohu Kaimoana, Aotearoa Fisheries, Sealord and Endurance Fishing.  The joint submitters warned that implementing the ETS would impact adversely on the profitability of iwi fishing and aquaculture investments.  They asked for a complete exemption from the ETS and, as an alternative, free unit allocations like export-exposed industries.
• Council of Trade Unions.  The CTU highlighted risks to competitiveness and the lot of low-paid workers from the ETS, but concluded that the current ETS was a compromise which the CTU could accept.  The CTU implored the Committee to provide a unified recommendation to the Government.

An extensive summary of the evidence presented to the Committee by submitters in available in PDF here.

The Committee received a briefing on the conflict in Sri Lanka and heard a submission from Prof Jane Kelsey (University of Auckland) on the ASEAN Free Trade Agreement, to which New Zealand is a signatory.

The Committee heard from the State Services Commissioner on the Auditor-General's report into managing prisoners on parole by the Department of Corrections.

The Committee heard submissions on the Aquaculture Amendment Bill No 2 from representatives of iwi, commercial operators and local government.  Most submitters concentrated on the permitted size of experimental aquaculture farms under the Bill.

In the past fortnight, the Committee heard from two leading academics on the issue of parliamentary privilege relating to suppression orders and other matters before the courts.  The Committee considered the treatment of statements made in the House relating to court orders which are then repeated outside the House by media outlets, and the sanctions that should lie against MPs and/or the media for making such statements.

The Solicitor-General, David Collins QC, suggested to the Committee that Parliament should retain control over the conduct of members, and punish accordingly for contempt of the House, and that the courts would be responsible for punishing media for contempt of court when reporting such statements by MPs.

Prof Philip Joseph (University of Canterbury) appeared before the Committee and stated that the current law was unsatisfactory.  Currently MPs enjoyed protection from defamation proceedings for matters said in the House under their absolute privilege and the news media enjoyed a qualified privilege reporting on matters in the House provided that their reports were not malicious.  No privilege attaches to the news media if it reports a statement by a MP which is in contempt of court, no matter how accurate the reporting. 

Prof Joseph believed the balance between Parliament and judiciary should be upheld and that the two branches of government should not interfere with one another.  He suggested that a condition of accreditation as a parliamentary reporter in the press gallery should include a binding obligation not to publish material in breach of court orders. 

Associate Prof Andrew Geddis (University of Otago) took a slightly different view to Prof Joseph.  Geddis did not believe the media should be afforded a qualified privilege and that the news media should not be allowed to breach court suppression orders by reporting what MPs said on such matters in the House.  Just because a suppressed issue was raised in the House, the news media had no greater right to report it than it otherwise would.  Geddis thought the news media should face the consequences of their actions if they chose to report suppressed matters.  As for MPs, if they breached suppression orders, the House should punish them accordingly.  The courts should not involve themselves in the proceedings of Parliament.

Legislation enabling the establishment of a transition board to oversee changes to Auckland governance arrangements will be introduced when the House resumes business. Further legislation to implement the reforms will be introduced mid-year.

Two anti-boy racing legislative amendments will be introduced. Car crushing will be a feature.

The Minister of State-Owned Enterprises, Simon Power, announced new appointments to SOE Boards on Tuesday.  In all, there are 22 new SOE directors.  The appointments, which follow hot on the heels of the new appointments to the ACC board, represent the Government's desire for increased commercial aptitude amongst the directors of government commercial operations.

The appointments are, on the whole, uncontroversial.  The appointments certainly do not herald a wholesale change in the direction of SOEs and numerous appointees of the previous Government continue in place.  At Landcorp Farming Limited, for instance, former Labour Cabinet Minister Jim Sutton, was reappointed as chairman.

Perhaps most interesting is Hon Dr Michael Cullen's appointment.  Dr Cullen appears to be assuming the mantle enjoyed by Jim Bolger, as the doyen of cross-party SOE appointments.  Dr Cullen becomes a director of New Zealand Post Limited and will take over the deputy chairmanship in October this year.  In assuming the deputy chairmanship at Post, Dr Cullen will take over from Labour Party favourite and former President of the Council of Trade Unions, Ken Douglas ONZ.  Dr Cullen is also rumoured to be the next chairperson of New Zealand Post subsidiary Kiwibank and perhaps the next chairman of Post itself (both positions currently held by Bolger).

As for Bolger, he continues as chairman of New Zealand Post, and has been reappointed as chairman of the New Zealand Railways Corporation.

Other notable new appointments to SOE Boards include:

• former Commerce Commission chairwoman, Paula Rebstock, as deputy chairperson of the New Zealand Railways Corporation.
• Joan Withers, currently a director of Auckland International Airport Limited, as a director of Mighty River Power Limited.
• Dr Don Brash, as a director of Transpower New Zealand Limited.

Appointments to SOE Boards are usually for three years. 

A full list of SOE boards is available here.

In related news, the Minister of Internal Affairs, Richard Worth, announced on Tuesday that retiring National Party president Judy Kirk would be the next chairperson of the Lotteries Commission.

Two issues ago we reported on the reinstatement of the titles Sir and Dame for the top two tiers of the New Zealand Order of Merit.  The Government had left it to recipients to decide whether they would opt for the status quo or accept the traditional honour. Of the 85 New Zealanders created as Principal or Distinguished Companions of the New Zealand Order of Merit, 46 (or 87% of the number of those who have responded to government's offer of election to date) had accepted a knighthood or damehood.

The Chief Executive of the Charities Commission, Trevor Garrett, has appointed three general managers for the Commission.  The general managers will cover registration and compliance, corporate services, and education at the Commission.  The restructuring and appointment of three general managers represents a bedding down of the Commission as it moves from and registering charities to the ongoing management of the New Zealand charities sector.

Who	What	By when…(2009)
Department of Conservation	Mt Aspiring National Park Draft Management Plan	30 June
Economic Development, Ministry of	Government Broadband Initiative Spectrum Management in the Radio Licensing Regime	27 April 19 May
Electricity Commission	Rulings Panel Procedures Electricity Market Compliance Framework Review - Update	1 May 15 May
Environmental Risk Management Authority	Cosmetic Products Group Standard	14 May
Food Standards Australia New Zealand	Food derived from herbicide-tolerant soybean line DP-356043-5	1 May
Health, Ministry of	Interim Specification for the Midwifery First Year of Practice Programme	15 May
Land Information New Zealand	Carrick pastoral lease preliminary proposal	29 April
New Zealand Qualifications Authority	Draft guidelines on further assessment opportunities	8 May
Standards New Zealand	Sound and television broadcast receivers and associated equipment – Immunity characteristics – Limits and methods of measure (Revision of AS/NZS CISPR 20:2006) Stand alone maritime survivor locating systems Digital radio equipment operating in land mobile and fixed services bands in the frequency range 29.7 MHz to 1 GHz Interconnected smoke alarms for single household units Pedal bicycles - Safety requirements	18 May     21 May 21 May   25 May   3 June

 

Who	What	By when… (2009)
Commerce Commission	Draft determination on Fonterra vs Kaimai Cheese Company & The Grate Kiwi Cheese Company	17 April
Conservation, Department of	New listing of threatened status of New Zealand freshwater fish	22 May
Environment, Ministry for the	Waste Minimisation in New Zealand	15 May
Health, Ministry of	Draft Maternity Action Plan 2008–2012	30 April
Law Commission	Invasion of Privacy - Parts 1 and 2	29 May
Local Government Commission	Transfer of Hauraki Gulf Islands from Auckland City and Auckland Region to Thames-Coromandel District and Waikato Region	20 April
Maritime New Zealand	Maritime Rules Part 80B – Commercial rafting operations safety kayaks	4 May
Pharmac	Proposals regarding multiple diabetes management products and mesalazine	1 May
Standards New Zealand	Wind farm noise standards DR09013 continuity management system specification to provide a structure for a business continuity management system (BCMS). DR09014 strategic and operational risk management approach that focuses on downside & upside risks to the organisation DR09015 provides a structure and requirements for the development and implementation of a BCM audit and assurance programme DR09017 promotes safe working practice relevant to the operation of plant and equipment in laboratories   Safety in laboratories	30 April 29 April 29 April   29 April   7 May     7 May

 

This publication is included in Russell McVeagh's website : www.russellmcveagh.com

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:

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