17 November 2009

In this edition:

A MATTER OF OPINION

Trouble at' mira
Hone Harawira was never one for subtlety.  But as provocative and, many would say, asinine as his latest outburst was, it would be a mistake to take him at face value. more...

IN POLITICS

Wag the Dog
Seizing the opportunity afforded by the Harawira gaffe and left begging by Labour nice guy Phil Goff, Winston Peters effortlessly commandeered prime news time to reinforce his credentials with the fearful and the elderly. more...

National and Green Party MOU disintegrates
National's memorandum of understanding to work with the Green Party on energy efficiency policy has fallen over, with the Green Party abandoning any pretence of engagement. more...

PROGRESS OF LEGISLATION

IN THE WEEK AHEAD

IN COMMITTEE

 

IN OTHER NEWS

IN CONSULTATION

A Matter Of Opinion

Trouble at' mira

Hone Harawira was never one for subtlety.  But as provocative and, many would say, asinine as his latest outburst was, it would be a mistake to take him at face value. 

An entrenched part of the Harawira whanau's militant wing, Hone has always been an attack dog, usefully aimed at opponent's throats when less direct alternatives aren't yielding results.  He might occasionally roam unmuzzled and unchipped, but more often than not his engagement was tactical and part of a bigger game.

But just whose game he was playing when he adopted the pose and racially charged language of his time as leader of the infamous Patu Squad is anyone's guess.  One thing is certain though the interests served were not those of the Māori Party.

Kicking into life a strand of aggressive racism that had been lying quiescent in the face of substantive Māori policy gains, Harawira succeeded in delivering a damaging, if not quite mortal, blow to the Māori party's mainstream appeal.  He also placed the Party's political aspirations in real jeopardy. 

For that reason alone, Māori Party co-leaders Turia and Sharples would be happy to see the back of him.  But the likely fall-out from those in Te Tai Tokerau happy with his bad boy ways and cold war rhetoric stands in the way of the fateful step of expulsion. 

Instead Turia and Sharples left it to Party President Professor Whatarangi Winiata to draw Harawira into open ground where his status as an 'independent' could be asserted.  It was, implied a canny Winiata, a case of Hone leaving the Party, rather than the Party leaving him.  At one blow, Harawira's future and future accountability were placed squarely in his own hands - and the hands of his northern elders.  The way back will be difficult, if it is open at all.

Harawira's back-tracking in the face of this suggests that a short, if colourful, life outside the Māori Party was not part of his agenda.  Nor, judging from the abuse aimed at Goff, was a prodigal return to client status within Labour.  Which leaves us not with a Machiavellian plan, but just with a guy with a sense of entitlement who hoped that some tactical bluster would shift attention from his appreciation of la vie Parisienne.  It did of course, but the price he will pay may be terminal.

As to the Māori Party's relationship with National, perversely it seems likely to be enhanced.  After the World Cup coverage debacle, the Harawira incident provides an opportunity for each party to overlook each other's missteps.  That mutuality should be enough to assure the security of the confidence and supply agreement and allow the partners to get on with more important things.

In Politics

Wag the Dog

Seizing the opportunity afforded by the Harawira gaffe and left begging by Labour nice guy Phil Goff, Winston Peters effortlessly commandeered prime news time to reinforce his credentials with the fearful and the elderly.  It was mother's milk that provided another fillip to Peters' campaign to return to Parliament.

Whilst the aging remains of 'Rob's Mob' and NZF diehards will be encouraged, those ambivalent about the future of MMP will be less sanguine about the prospect of a return to a dynamic where the political tail once more wags the dog.  It may be just enough to consign MMP to the trash.

But that will be in 2014; plenty of time for he-who-should-never-be-written-off to etch deeper his mark on the body politic.

National and Green Party MOU disintegrates

National's memorandum of understanding to work with the Green Party on energy efficiency policy has fallen over, with the Green Party abandoning any pretence of engagement.  Asserting that they were not being consulted over energy efficiency policy, the Greens said they opposed Government policy.  Jeanette Fitzsimons, in particular, said she was not consulted on plans to scrap the Energy Efficiency and Conservation Strategy.  The Government has asserted in  response that the Strategy is only being updated.

Walking away from the understanding will allow the Greens to return to the ground on which it has always been happiest - criticising Government from the margins.

Progress Of Legislation

The House has been in recess for the past two weeks and there are no new Bills or Bills to Select Committees.

Bills To Select Committees

Open for submissions

Bill

Select Committee

Submissions close

Report due

Dairy Industry Restructuring (Raw Milk Pricing Methods) Amendment Bill

Primary Production

3 December 2009

2 March 2010

Education (Freedom of Association) Amendment Bill

Education and Science

31 March 2010

28 May 2010

Electoral (Administration) Amendment Bill

Justice and Electoral

10 December 2009

27 April 2010

Injury Prevention, Rehabilitation, and Compensation Amendment Bill

Transport and Industrial Relations

26 November 2009

12 February 2010

 

Submissions not yet called

Land Transport (Driver Licensing) Amendment Bill
Marine Reserves (Consultation with Stakeholders) Amendment Bill
Subordinate Legislation (Confirmation and Validation) Bill

Submissions closed

Bill

Select Committee

Report due

Antarctica (Environmental Protection: Liability Annex) Amendment Bill

Foreign Affairs, Defence and Trade

20 February 2010

Arms Amendment Bill (No 3)

Law and Order

26 February 2010

Border (Customs, Excise, and Tariff) Processing Bill

Government Administration

17 November 2010

Children, Young Persons, and Their Families (Youth Courts Jurisdiction and Orders) Amendment Bill

Social Services

27 November 2009

Cluster Munitions (Prohibition) Bill

Foreign Affairs, Defence and Trade

28 January 2010

Education (Polytechnics) Amendment Bill

Education and Science

20 November 2009

Franklin District Council (Contribution to Funding of Museums) Amendment Bill

Local Government and Environment

30 April 2010

Inquiries Bill

Government Administration

28 January 2010

Limitation Bill

Justice and Electoral

4 February 2010

Marine Reserves Bill

Local Government and Environment

30 December 2010

Motor Vehicle Sales Amendment Bill

Commerce

30 December 2009

Patents Bill

Commerce

30 March 2010

Private Security Personnel and Private Investigators Bill

Justice and Electoral

30 March 2010

Public Works (Offer Back of and Compensation for Acquired Land) Amendment Bill

Local Government and Environment

17 June 2010

Radio New Zealand Amendment Bill

Commerce

24 December 2009

Sale and Supply of Liquor and Liquor Enforcement Bill

Justice and Electoral

30 June 2010

Sale of Liquor (Objections to Applications) Amendment Bill

Social Services

30 June 2010

Search and Surveillance Bill

Justice and Electoral

1 May 2010

Sentencing and Parole Reform Bill

Law and Order

30 November 2009

Student Loan Scheme (Exemptions and Miscellaneous Provisions) Amendment Bill

Education and Science

30 November 2009

Sustainable Biofuel Bill

Local Government and Environment

29 January 2010

Waikato-Tainui Raupatu Claims (Waikato River) Settlement Bill

Māori Affairs

31 December 2009

 

Bills Awaiting Second Reading

Bills that have recently been reported back to the House from a Select Committee are in bold and the Select Committee reports on these Bills are linked.

Aquaculture Legislation Amendment Bill (No 2)
Children, Young Persons, and Their Families Amendment Bill (No 6)
Carter Observatory Act Repeal Bill (Report of the Science and Education Committee)
Climate Change Response (Moderated Emissions Trading) Amendment Bill (Report of the Finance and Expenditure Committee)
Corrections (Contract Management of Prisons) Amendment Bill
Crimes (Provocation Repeal) Amendment Bill
Dog Control Amendment Bill (No 2)
Education Amendment Bill
Electricity (Continuance of Supply) Amendment Bill
Infrastructure Bill (Report of the Transport and Industrial Relations Committee)
Judicial Matters Bill
Māori Commercial Aquaculture Claims Settlement (Regional Agreements) Amendment Bill
Māori Trustee and Māori Development Amendment Bill
Methodist Church of New Zealand Trusts Bill (Report of the Finance and Expenditure Committee)
Oaths Modernisation Bill
Privacy (Cross-border Information) Amendment Bill
Public Health Bill
Rail Network Bill
Regulatory Improvement Bill
Regulatory Responsibility Bill
Remuneration Authority Amendment Bill
Reserves and Other Lands Disposal Bill
Residential Tenancies Amendment Bill
Serious Fraud Office (Abolition and Transitional Provisions) Bill
Taxation (Consequential Rate Alignment and Remedial Matters) Bill (Report of the Finance and Expenditure Committee)
Therapeutic Products and Medicines Bill
Trade (Safeguard Measures) Bill
Trade Marks (International Treaties and Enforcement) Amendment Bill
Trustee Amendment Bill
Unit Titles Bill
Waka Umanga (Māori Corporations) Bill

Bills Awaiting Third Reading

Biosecurity Amendment Bill
Cultural Property (Protection in Armed Conflict) Bill
Gambling Amendment Bill (No 2)
Legal Services Amendment Bill
Palmerston North Showgrounds Act Repeal Bill
Settlement Systems, Futures, and Emissions Units Bill divided into:

Bills Awaiting Assent

Immigration Bill
Insolvency Amendment Bill

Acts Assented

Whakarewarewa and Roto-a-Tamaheke Vesting Act 2009

Regulations

Land Transport (Road User) Amendment Rule (No 2) 2009
Health Practitioners (Quality Assurance Activity—Taranaki DHB) Notice 2009
Real Estate Agents Authority (Fees and Levies) Notice 2009
Securities Act (Kiwi Income Property Trust) Exemption Notice (No 2) 2009
Civil Aviation (Safety) Levies Amendment Order 2009
Parliamentary Salaries and Allowances Determination 2009
Excise and Excise-equivalent Duties (Tobacco Products Indexation) Amendment Order 2009
Health Practitioners (Quality Assurance Activities—Waikato DHB) Notice 2009
Health Practitioners (Quality Assurance Activity—Central Otago Health Services Limited) Notice 2009
Securities Act (Authorised Futures Contracts) Exemption Amendment Notice 2009

In The Week Ahead

This week we can expect the Ngāti Apa (North Island) Claims Settlement Bill to receive its first reading; the Bills divided from the Settlement Systems, Futures, and Emissions Units Bill to be passed; and the following Bills to receive their second readings:

Looking slightly further ahead, the heavy legislative agenda for the remainder of the year can be expected to result in further urgency motions.  One likely candidate for inclusion in an urgency motion is the Corrections (Contract Management of Prisons) Amendment Bill.

In Committee

As the House has been in recess over the past fortnight there have been few Select Committee meetings.

Finance and Expenditure Committee

Dr Allan Bollard presented an oral report on the Reserve Bank's November Financial Stability Report.  Dr Bollard noted global financial markets had improved considerably over the course of 2009, with particular focus on housing markets and the banking sector.  Whilst there is heavy reliance on offshore foreign capital markets, it seems the banking sector has held up well.  Dr Bollard was optimistic the peak in unemployment would be well below that of previous recessions, and expressed the intention of the Reserve Bank to explore prudential monetary policy options, in addition to incremental tools such as adjusting the Official Cash Rate.  There was also some positive discussion on the implementation of foreign exchanges transaction taxes and finance company moratoriums.

Foreign Affairs, Defence, and Trade Committee

The Committee has begun examining the following international treaties and is seeking submissions by 19 November:

In Other News

Select Committee reports on ETS changes

The Finance and Expenditure Committee has reported back the Climate Change Response (Moderated Emissions Trading) Amendment Bill, which makes changes to the Emissions Trading Scheme (ETS).  It was given a tight timeframe in which to consider the Bill, and has been hearing submissions at a rapid rate.

The report is a disappointing read for those hoping for cross-party agreement. Throwing up their hands, committee members agreed on one thing - that they disagreed:

"We were unable to reach agreement on whether to recommend that the ... Bill be passed, because of members' differing views ... . We also could not agree on the kinds of amendments from which the Bill might benefit if it were to be passed." 

The ensuing report consistent of a series of minority opinions, which amounted to a restatement of established political positions on the design of an ETS.

The changes officials have prepared for the Bill on the basis of this will be inserted by supplementary order papers.

The report can be found here.  

Reviews Affecting the Aquaculture and Mining Industries

The aquaculture and mining industries are each undergoing a major review.  The review of aquaculture is prompted by the industry's unused economic potential, and the complex regulatory structure which has applied to it in recent years, effectively stalling the industry's growth.  Mining, too, is being reconsidered by the Government, with an eye to discovering the depth of unmined mineral potential in New Zealand's national parks.

The report of the Aquaculture Technical Advisory Group (TAG) earlier this month made a number of recommendations to the Government in an attempt to allow the aquaculture industry to grow to its full potential.  Particularly innovative reforms suggested by the TAG include the appointment of a Minister of Aquaculture and the establishment of an aquaculture agency.  These signal a stronger guiding role for central Government in the growth of the aquaculture industry, and a desire to sweep away the regulatory binding which has been strangling the industry's growth for the past decade.  Also recommended is the establishment of an aquaculture fund, a contestable fund from which local authorities can draw for consenting and technical work related to aquaculture.  New "aquaculture zones" are also proposed, as opposed to the current "aquaculture management areas", with 20% of space to be allocated to iwi and the remaining 80% to be offered to the initiator of a zone.  Water quality testing is recommended to occur in parallel with consent applications, and the consenting process is recommended to be strengthened, while preserving numerous consenting processes.

A joint Ministry of Economic Development (MED) and Department of Conservation (DOC) review of Schedule 4 of the Crown Minerals Act 1991 was announced by Energy Minister Gerry Brownlee back in August.  Its reporting date has been extended to February 2009.  Land listed in Schedule 4 can generally be described as conservation land, and includes marine reserves.  Such land is specially protected against mining, but the MED has recommended a review of Schedule 4 in light of the discovery that Fiordland, Kahurangi and Paparoa national parks contain significant and untapped mineral potential.  Currently, policy and technical data is being gathered, and the extent and economic value of these untapped resources are being assessed.  A six week consultation process is planned once the report is released.  Whether minerals in the conservation estate will be available for access in the future remains up in the air.

If you are interested in either of these reviews, the Russell McVeagh National Resource Management Team has produced more comprehensive summaries, which are available by request to your usual legal advisor.

Procurement Reform: Economies of Scale

The four-year Government Procurement Reform that began in June has already recommended changes to the way the Government buys workplace equipment.  Minister of Economic Development Gerry Brownlee has announced that Government agencies will now begin to coordinate purchasing to attain better economies of scale.  As part of the reform initiative, new Centres of Expertise will be established and will be empowered to negotiate all-of-Government contracts.  The first such Centre will deal with IT equipment (from within the Department of Internal Affairs), and the second will deal with passenger vehicles and stationery (from within the Ministry of Economic Development).  By using all-of-Government contracts, the Minister expects significant savings, and has noted that other jurisdictions have achieved cost savings in the realm of 5-10% with an equivalent approach to procurement.  The rest of the Government Procurement Reform continues under its four themes: achieving cost savings; building procurement capability and capacity; enhancing New Zealand business participation; and improving governance, oversight, and accountability.

Multi-Party Banking Inquiry: Bark Sans Bite?

The Report of the Parliamentary Inquiry into Banking, a multi-party initiative by Labour, the Green Party and the Progressives, was recently returned to both media interest and political positioning.  Following hearings on 2 to 3 September and 50 submissions from certain interested parties, the Report noted that there was a "remarkable degree of agreement on a number of key banking and monetary policy issues" between the submitters, and found that the major banks had not passed on reductions in the Official Cash Rate to their short term interest rates.  This finding has been criticised by the National-led Government, who noted the complexity of the relationship between the Official Cash Rate and lending rates.  The Reserve Bank has also recently found that banks' interest rate margins have dropped and stabilised at a relatively low level, according to a spokesman for Finance Minister Bill English.

The Report also found or suggested a number of other issues facing the banking sector, including that the present monetary policy framework could have serious unintended consequences for New Zealand's economic recovery, and that there was a serious misallocation of resources in the economy, with demand factors accentuating monetary imbalances.

The findings in the Report were criticised heavily by the New Zealand Bankers' Association, who stated that the findings were unsustainable in fact, and that the findings undervalued the support banks had given to the economy during its stabilisation and gradual recovery.  The New Zealand Bankers' Association also disagreed with the Report's finding that there was insufficient competition between the major banks.

Consultation for Electricity Charge Components

The current Government Policy Statement on Electricity Governance (GPS) requires the Electricity Commission to ensure that domestic customer contracts address the "transparency of charge components".  Accordingly, the Electricity Commission has released a discussion document which outlines five options for carrying out this requirement, and recommends two.  The two preferred options centre on requiring electricity invoices to direct consumers to a website or telephone number where they can access information outlining unbundled lines charges and energy charges.

The Electricity Commission is seeking submissions by 14 December.  The full discussion document can be found here.

New Regulation of Real Estate Agents Begins

The new regulation of real estate agents begins this week, with the Real Estate Agents Act 2008 coming into force and the Real Estate Agents Authority being launched.  The new Authority replaces the Real Estate Institute of New Zealand (REINZ) as industry regulator.  There is a new licensing regime for real estate agents, branch managers and salespersons, as well as a new Code of Professional Conduct and Client Care.

ECan Review Team Announced

The Government has announced the team that will conduct the review of Environment Canterbury (ECan).  The review under Section 24A of the Resource Management Act into ECan's resource management functions will be undertaken by former National Party Minister Wyatt Creech, Doug Martin of Martin Jenkins and Associates, and independent consultant Greg Hill.  The review of ECan's governance, policy functions and relationships with other councils will be undertaken by civil engineer Doug Lowe, consultant Julie Clausen, and economist Alison Dalziel.  The reviews are due to report in January next year.

In Consultation

New

Who

What

By when… (2009)

Biosecurity New Zealand

Export laboratory programme

27 November

Draft import health standard for table grapes from China

11 December

Draft import health standard for pears from China

11 December

Ministry of Economic Development

The future of the telecommunications relay service in New Zealand

16 December

Electricity Commission

Bay of Plenty interconnection capacity upgrade investment proposal

24 November

Transparency of charge components

14 December

Environmental Risk Management Authority

Reassessment of methyl bromide as a hazardous substance

18 December

Ministry of Fisheries

"Re-starting Aquaculture"– Aquaculture Technical Advisory Group Report

16 December

New Zealand Food Safety Authority

Review of management of listeria monocytogenes in long- and short- shelf-life ready-to-eat seafood

20 November

Code of practice for cold and dry stores

27 November

Inland Revenue Department

GST treatment of payments to retirement villages

20 November

GST: Accounting for land and other high-value assets

18 December

New Zealand Transport Agency

Tolling motorcycles on the Northern Gateway Toll Road

27 November

SH1 Blenheim to Ashley River Bridge

27 November

SH6 route security strategic study

27 November

SH73 route security strategic study

4 December

Omnibus amendments to the Land Transport Rules

11 December

Standards New Zealand

Installing insulation in residential buildings

8 December

Electrical installations - construction and demolition sites

8 December

Backflow preventions devices

17 December

Land development and subdivision

5 February 2010

 

Current

Who

What

By when… (2009)

Biosecurity New Zealand

Animal welfare (transport within New Zealand) code

30 November

Proposal to amend National Bovine Tuberculosis Pest Management Strategy

30 November

Department of Building and Housing

Retirement villages disclosure statement

11 December

Department of Conservation

Planning for recreation in Ō Tū Wharekai (Canterbury)

30 November

Sir Edmund Hillary Outdoor Pursuits Centre Trust concession notification

17 December

Kauri National Park proposal

tbc

Draft Guidelines for Aircraft Access for Canterbury Conservancy

Ongoing

Ministry of Economic Development

Facilitating the deployment of broadband infrastructure

27 November (original deadline extended)

Statutory framework for financial reporting; and accounting and assurance standards under this framework

29 January 2010

Electricity Commission

Dispatchable demand options

16 November

Draft guidelines for reporting breaches of the Electricity Governance Rules

20 November

Transmission pricing review

7 December

Scarcity pricing and compulsory contracting options

7 December

Options for managing locational price risk

7 December

Minor editorial changes to the Electricity Governance Rules

29 January 2010

Ministry of Fisheries

Māori commercial aquaculture settlement

Not yet set

High Court Rules Committee

Reform of the law of discovery

20 November

Reform of the rules relating to written briefs

20 November

Inland Revenue Department

Depreciation rate for loose furniture

25 November

Reimbursing shareholder-employees for motor vehicle expenses

30 November

Approved issuer levy, non-resident withholding tax and the bond market

30 November

Land Information New Zealand

Pastoral leases at Glenrock, Holbrook, Rollesby, Gem Lake, Ben Nevis, and Craigroy

27 November

Maritime New Zealand

Life jackets in small craft

18 December

Medsafe

Good Clinical Research Practice Guideline

30 November

New Zealand Transport Agency

Farebox recovery policy

30 November

Ministry of Social Development

Whānau Ora: A whānau-centred approach to Māori wellbeing

30 November

Standards New Zealand

Bunk beds and other elevated beds

19 November

Garments for general use

20 November

Safety of chain saws

14 December

Safety of range hoods and other cooking fume extractors

14 December

Safety of spin extractors

14 December

Safety of surface cleaning appliances for household use employing liquids or steam

14 December

Safety of insect killers

14 December

Safety of fixed immersion heaters

14 December

Safety of portable immersion heaters

14 December

Safety of hedge trimmers

14 December

Safety of switch mode power supply units and transformers for switch mode power supply units

14 December

Structural design actions: wind actions

21 December

Fire-resistant doorsets and smoke-control doors

22 January 2010

New Zealand Walking Access Commission

Draft National Strategy for Walking Access

18 December

Draft New Zealand Outdoor Access Code

18 December

 

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:

TIM CLARKE - Partner
Ph 04 819 7532
[email protected]

DOUG BAILEY - Consultant
Ph 04 819 7572
[email protected]

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