1 May 2009
Fire in the 'Big Smoke' - Government in danger of getting burnt
There's a political premium in decisiveness and its one that the National-led Government has derived a real benefit from in the polls. more...
Westies Rule?
Social Development Minister, Paula Bennett, will need to tread carefully as the Government's position on Auckland City's local boards develops. more...
SELECT COMMITTEE HEARINGS |
There's a political premium in decisiveness and its one that the National-led Government has derived a real benefit from in the polls. The measured response to the international economic crisis, the swift movement on the 100 day agenda, the early response to the recommendations of the Royal Commission on Auckland governance - all have pointed to a Government with a sense of urgency, direction and credibility.
But signs of nervousness are also evident and it’s a nervousness that may do much to undermine the goodwill that National has built up in that most critical of its constituencies - Auckland.
Of course Auckland politics have never been pretty. They have been rendered even uglier by the threat to vested interests represented by the super city and the integration of local infrastructure such as water services.
Some might call the response from mayors and officials signs of a functional unity, but it is a unity driven by the external threat. Talk of fighting funds, aggressive lobbying of Ministers and an apparently coordinated smear campaign of one supercity establishment board hopeful seem to have taken their toll. Concerned about the optics of proceeding with urgent legislation to enable the transition work to get underway, Government is in danger of being wobbly at the knees where once it stood firm.
The concern is reasonable enough. Being seen to make too great a use of urgency and likely to face criticism for ignoring the democratic process is something the Government will want to dodge. Far better, some would counsel, to put as much through the Select Committee process as possible so that the public can have its say.
The problem with that is the danger of inviting a relitigation of decisions that have already been made. Certainly, National's opponents will seize the opportunity to use the Select Committee process as a political platform and to continue the business of denying the Government a political win. The net result will be delay; delay that can be ill-afforded, given the Government's agenda of bedding the Auckland reforms in before the 2011 general election.
If there is an expectation amongst Auckland punters it's that Government should get on with it. Not doing so will come with a price.
Social Development Minister, Paula Bennett, will need to tread carefully as the Government's position on Auckland City's local boards develops. She has not, as some suggest, breached the rules of Cabinet collective responsibility, but as the Government's views solidify she will need to moderate her position. Westies do not rule, Cabinet does and if the able Ms Bennett is not to find herself offside that's a reality they will have to live with.
Type of Bill: Government
Member in Charge: Hon Tim Groser
This is an omnibus Bill to implement the Agreement Establishing the ASEAN (Association of South East Asian Nations) Australia-New Zealand Free Trade Area ("AANZFTA"), made in Thailand on 27 February 2009. Once the AANZFTA comes into force on 1 July 2009, New Zealand will benefit from:
Type of Bill: Government
Member in Charge: Hon Anne Tolley
This Bill makes minor policy changes to the Education Act 1989, including:
Type of Bill: Private
Member in Charge: Brendon Burns MP
This Bill provides a mechanism within the structures, laws and regulations of the Methodist Church for varying charitable trusts.
Type of Bill: Government
Member in Charge: Hon Peter Dunne
This Bill encourages student loan borrowers to make extra payments on their student loans by providing for a 10 percent repayment bonus to be made available to those who make voluntary payments on their student loans after 1 April 2009. Voluntary payments are defined as any repayments to Inland Revenue in respect of a tax year that exceed the borrower's compulsory repayment obligation for that tax year by at least $500, so that the bonus can still be received if the voluntary payments are made up of smaller contributions throughout the year. Accordingly, the Bill offers no benefit for student loan borrowers whose compulsory repayment obligation in the current tax year exceeds the balance of their loan.
ASEAN Australia and New Zealand Free Trade Area Bill
Education Amendment Bill
Private Security Personnel and Private Investigators Bill
Trade Marks (International Treaties and Enforcement) Amendment Bill
Bill |
Select committee |
Submissions close (2009) |
Report due (2009) |
Corrections (Contract Management of Prisons) Amendment Bill |
Law and Order |
22 May |
26 September |
Privacy (Cross-border Information) Amendment Bill |
Justice and Electoral |
14 May |
1 October |
Social Assistance (Payment of New Zealand Superannuation and Veterans Pension Overseas) Amendment Bill |
Social Services |
29 May |
30 September |
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 |
ASEAN Australian and New Zealand Free Trade Area Bill |
Foreign Affairs, Defence and Trade |
25 May |
Building Amendment Bill |
Local Government and Environment |
11 May |
Criminal Investigations (Bodily Samples) Amendment Bill |
Justice and Electoral |
12 August |
Cultural Property (Protection in Armed Conflict) Bill |
Government Administration |
30 June |
Children, Young Persons and Their Families (Youth Courts Jurisdiction and Orders) Amendment Bill |
Social Services |
18 August |
Disputes Tribunals Amendment Bill |
Justice and Electoral |
31 May |
Domestic Violence (Enhancing Safety) Bill |
Justice and Electoral |
15 June |
Education Amendment Bill |
Education and Science |
28 August |
Electricity (Continuance of Supply) Amendment Bill |
Commerce |
30 June |
Franklin District Council (Contribution to Funding of Museums) Amendment Bill |
Local Government and Environment |
4 September |
Gangs and Organised Crime Bill |
Law and Order |
10 September |
Insolvency Amendment Bill |
Commerce |
28 May |
Judicial Matters Bill |
Justice and Electoral |
30 June |
Land Transport Amendment Bill (No 4) |
Transport and Industrial Relations |
30 June |
Land Transport (Driver Licensing) Amendment Bill |
Transport and Industrial Relations |
30 June |
Legal Services Amendment Bill |
Justice and Electoral |
2 October |
Marine Reserves Bill |
Local Government and Environment |
30 June |
Marine Reserves (Consultation with Stakeholders) Amendment 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 |
Reserves and Other Lands Disposal Bill |
Primary Production |
10 September |
Resource Management (Simplifying and Streamlining) Amendment Bill |
Local Government and Environment |
19 June |
Sale and Supply of Liquor and Liquor Enforcement Bill |
Justice and Electoral |
10 September |
Sale of Liquor (Objections to Applications) Amendment Bill |
Social Services |
30 June |
Securities Disclosure and Financial Advisers Amendment Bill |
Commerce |
30 April |
Sentencing and Parole Reform Bill |
Law and Order |
18 August |
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 |
Trade (Safeguard Measures) Bill |
Foreign Affairs, Defence and Trade |
11 September |
Trade Marks (International Treaties and Enforcement) Amendment Bill |
Foreign Affairs, Defence and Trade |
7 October |
Unit Titles Bill |
Social Services |
5 September |
Waikato-Tainui Raupatu Claims (Waikato River) Settlement Bill |
Māori Affairs |
30 June |
Whakarewarewa and Roto-a-Tamaheke Vesting Bill |
Māori Affairs |
30 June |
Māori Trustee Amendment Bill - SOP9
Criminal Proceeds (Recovery) Bill
Protected Disclosures Amendment Bill
Appropriation (2007/08 Financial Review) Act 2009
Mutual Assistance in Criminal Matters Amendment Act 2009
Parole (Extended Supervision Orders) Amendment Act 2009
Sentencing Amendment Act 2009
Additional Statutes of the New Zealand Order of Merit
Administration (Prescribed Amounts) Regulations 2009
Adoption Amendment Act 2008 Commencement Order 2009
Care of Children Amendment Act 2008 Commencement Order 2009
Child Support Amendment Act 2008 Commencement Order 2009
Children, Young Persons, and Their Families Amendment Act 2008 Commencement Order 2009
Coroners (Salaries and Superannuation) Determination 2009
Domestic Violence Amendment Act 2008 Commencement Order 2009
Family Courts Amendment Act 2008 Commencement Order 2009
Family Courts Fees Regulations 2009
Family Proceedings Amendment Act 2008 Commencement Order 2009
Family Protection Amendment Act 2008 Commencement Order 2009
Financial Reporting Act (HSBC International Trustee Limited) Exemption Notice 2009
Fisheries (Amateur Fishing) Amendment Regulations 2009
Fisheries (Auckland and Kermadec Areas Amateur Fishing) Amendment Regulations 2009
Fisheries (Auckland and Kermadec Areas Commercial Fishing) Amendment Regulations 2009
Fisheries (Central Area Commercial Fishing) Amendment Regulations 2009
Fisheries (Challenger Area Amateur Fishing) Amendment Regulations 2009
Fisheries (Challenger Area Commercial Fishing) Amendment Regulations 2009
Fisheries (Commercial Fishing) Amendment Regulations 2009
Fisheries (High Seas Fishing Notifications: Western and Central Pacific Fisheries Commission) Notice 2009
Fisheries (Infringement Offences) Amendment Regulations 2009
Fisheries (Reporting) Amendment Regulations 2009
Fisheries (South-East Area Amateur Fishing) Amendment Regulations 2009
Fisheries (South-East Area Commercial Fishing) Amendment Regulations 2009
Fisheries (Southland and Sub-Antarctic Area Amateur Fishing) Amendment Regulations 2009
Fisheries (Southland and Sub-Antarctic Area Commercial Fishing) Amendment Regulations 2009
Health (Non-Seasonal Influenza) Order 2009
High Court Amendment Rules 2009
Intellectual Disability (Compulsory Care and Rehabilitation) Amendment Act 2008 Commencement Order 2009
Local Government Elected Members (2008/09) Amendment Determination 2009
Mental Health (Compulsory Assessment and Treatment) Amendment Act 2008 Commencement Order 2009
New Zealand Council for Educational Research (Electoral College) Order 2009
New Zealand Teachers Council (Impairment Process) Rules 2009
Property (Relationships) Amendment Act 2008 Commencement Order 2009
Protection of Personal and Property Rights Amendment Act 2008 Commencement Order 2009
Resource Management (Forms, Fees, and Procedure) Amendment Regulations 2009
Securities Act (BBI Networks (New Zealand) Limited) Exemption Notice 2009
Securities Act (Fletcher Building Limited) Exemption Notice 2009
Securities Act 1978 (Freightways Limited) Exemption Notice 2009
Securities Markets Act (Disclosure of Relevant Interests by Directors and Officers) Exemption Amendment 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
Takeovers Act 1993 Takeovers Code (Rubicon Limited) Exemption Notice 2009
Takeovers Code (Opus International Consultants Limited) Exemption Notice 2009
Takeovers Code (Phitek Systems Limited) Exemption Notice 2009
Takeovers Code (Westgate Power Centre Limited) Exemption Notice 2009
Trans-Tasman Mutual Recognition (Changes to Permanent and Special exemptions and Special Exemptions Extension) Regulations 2009
United Nationals Sanctions (Somalia) Amendment Regulations 2009
When Parliament resumes business next week the focus will go on first readings of the Student Loan Scheme (Repayment Bonus) Amendment Bill, the Private Security Personnel and Private Investigators Bill; the Regulatory Improvement Bill; the Patents Bill and the Inquires Bill), along with the remaining stages of the Māori Trustee Amendment Bill. Wednesday 6 May will be a Members’ Day.
Few Select Committees met in the past fortnight because of a Parliamentary recess.
The Committee heard oral submissions on the Resource Management (Simplifying and Streamlining) Amendment Bill. The Bill hit headlines in the past week when some utilities submitted that the amendments could in fact increase the time required for major developments. The concerns raised by Transpower and the NZ Transport Authority, among others, relate to their ability to make designations as requiring authorities. As it stands, the Bill will give territorial authorities (rather than the requiring authorities) the final say about the conditions in designations. The Utilities are concerned about the technical expertise at councils and the possibility of increased litigation.
Other submitters on the Bill, including the Heavy Haulage Association, the Retailers' Association and Fish and Game, expressed concern about restricting rights of appeal to just matters of law.
Nor is the Bill getting an easy ride on its proposed changes to deal with trade competition. The risk of excluding parties with a legitimate interest in planning changes and resource consenting has been highlighted by a number of submitters and ought to prompt a rethink by Government and its support parties.
The Committee also heard submissions on the Building Amendment Bill (No 2) which submitters generally supported.
The Committee received a briefing from pupils at Waihi College on a five-year study conducted at the school on carbon levels in different types of farmed soil. The Committee congratulated the pupils on the rigour and content of their study and noted that not enough agricultural research occurred at schools. Subsequently, Sandra Goudie MP moved in the House on 29 April "[t]hat this House congratulate Waihi College on their research on carbon sequestration in soils and their promotion of a carbon faming policy."
The Ministry for the Environment and the Foundation for Research Science and Technology are seeking feedback on a draft water research strategy. The strategy is intended to improve the management and use of freshwater and sets out the issues and desired outcomes for water and uses as a basis for defining research objectives and a set of recommendations. These recommendations will be used by FRST for considering investment in water research over the next 10 years.
Feedback is requested by 22 May 2009 and should be directed to Julia Duzant ([email protected]). Any changes will be incorporated and we anticipate the strategy will be finalised by the end of July 2009.
The Government plans to release a white paper (official policy position paper) on defence in early 2010, 13 years since the last major defence review in 1997. The white paper will state the Government's strategic defence priorities.
The Minister of Defence, Wayne Mapp, and his associate minister, ACT's Heather Roy, formed an independent review panel consisting of Martyn Dunne (Comptroller of Customs), Rob McLeod (Ernst and Young New Zealand CEO) and Simon Murdoch (outgoing Secretary of Foreign Affairs and Trade). The panel will assist in the review and consider the review's terms of reference, which are:
In reporting the announcement the media focused on Heather Roy's suggestion that defence bases might be sold and leased back, thereby freeing up capital for immediate projects. Whether or not the Government is actually serious about sell and lease back, it certainly reflects a marked departure in philosophy from the previous Government. That, we suspect, was the point.
Media coverage has now moved on to Roy's proposal that school leavers take a gap year for military training. The coverage reflects Roy's specific delegated authorities as Associate Minister of Defence. Moreover, it reflects ACT's desire to be seen as a useful part of the Government.
Posturing and support party relationships aside, the Defence review is a significant undertaking which will affect many serving and future personnel and result in large capital spending priorities.
Outgoing MP Michael Cullen recently released Labour's position on the Foreshore and Seabed Act 2004 ("Act") to the ministerial panel reviewing the Act. Cullen's summary is at once a pithy justification for Labour's controversial legislation and a policy back-down.
The Court of Appeal sparked the Act when it held that the Māori Land Court enjoyed jurisdiction to rule on customary property issues affecting the foreshore and seabed. The Court never stated unequivocally that Māori might own it. Nevertheless, the Act vested the land in the Crown.
Labour's position is now at variance with the legislation it promoted in 2004. It supports restoring the Māori Land Court's ability to award customary title (where appropriate) to the foreshore and seabed. At face value, New Zealand went to much effort and endured much aggravation for very little.
Labour, however, supports many other aspects of the Act. It still wants to retain the statutory tests of when the courts can consider customary title, rather than leaving the test(s) open to the courts to decide via case law. And Labour will not entertain private title: customary title (with guarantees of cost-free public access) is as far as it is willing to go.
Labour's policy position could well reflect Cullen's personal attitude. After all, as witnessed in his valedictory speech on Wednesday, he is not afraid to apologise.
On Wednesday the New Zealand Institute, a think-tank headed by Dr Keith Turner, released its prescription for the budget in Not just a case of passing Recessionary Flu: The Budget must also address and underlying lack of economic fitness.
In the paper, the Institute contends that New Zealand's economy is subject to more than just a passing economic decline. The recession risks setting the economy back significantly, which the retirement of the baby boom generation will then compound.
The thrust of the Institute's case is that the recession provides the Government an opportunity to recalibrate the economy. The window will only be open for about two years, though, because we will be left behind if our affairs are not in order by the time of the wider global recovery.
The Institute thus recommends that the Government must address the following in the budget on 28 May 2009:
A plan so radical is probably beyond a Government under MMP. The Minister of Finance has already distanced himself from the Institute's paper in statements in House on Wednesday afternoon. The paper nevertheless indicates just how high the expectations on Bill English are for bold action on 28 May. Bold action that does not deepen the fiscal deficit.
A full copy of the Institute's report is available here.
The Prime Minister announced last week that the much-vaunted (but little-used) nine day fortnight is being extended to businesses with 50 or more employees. Currently the scheme is only available for businesses with 100 or more employees. Three businesses have accepted the support from the scheme, which offers to pay $12.50 per hour per employee to a maximum of five hours a fortnight.
The extension of the scheme is intended to help medium-sized businesses who are struggling. John Key, however, ruled out extended the nine day fortnight to small businesses because it would be too difficult to administer.
The Minister of Commerce, Simon Power, recently released his paper to Cabinet's Economic Growth and Infrastructure Committee. The paper recommended regulations for levies on gas and electricity line operators and major international airports (namely Auckland, Christchurch and Wellington airports). The levies will fund the Commerce Commission's new responsibilities under Part 4 of the Commerce Act 1986, under which the gas and electricity line businesses and airports will be subject to (to varying degrees) information disclosure and price quality regulations requirements. The levies, which will replace existing gas and electricity sector levies, will also recover the Commission's costs input methodologies development costs.
The new levies will be based on the fixed asset valuations of each business. Power's paper suggests that most businesses consulted agreed with the proposed basis for calculating levies, (although the airports and Vector did not).
A full copy of the Cabinet committee paper and its recommendations is available here.
Plans to address human-induced climate change are teetering in Australia. Kevin Rudd's Labour ("ALP") Government faces an uphill battle to pass legislation establishing Australia's carbon pollution reduction scheme (an ETS) through the federal Senate.
The ALP does not hold a majority of seats in the Senate, where seats are more proportional than in the House of Representatives. The ALP cannot rely on the Greens, going so far as dismissing the Greens as "irrelevant" and their requirement of an unconditional 40 percent cut in emissions as "lunacy". The ETS legislation can only now pass in the Senate with the support of the Opposition Liberals. The Liberals, however, want to force major changes to the ALP's ETS, based on an independent report released on Thursday.
The independent report from the Centre for International Economics says that the proposed ETS fails to quantify short- to medium-term economic adjustment costs and does not use inexpensive but effective carbon-reduction initiatives, such as encouraging energy-efficient buildings.
Australia is now experiencing the same partisan fighting about climate change response as New Zealand did last year, much to the chagrin of business commentators over the Tasman who are seeking investment certainty. The standoff in the Senate, however, could force the ALP and the Liberals to agree, thus creating a joint Government and Opposition initiative. One this is certain: the confusion in our biggest trading partner, closest neighbour and best friend makes the New Zealand Parliament's Select Committee review of the ETS even harder.
Meanwhile the Rudd Government recently announced the creation of 10 offshore greenhouse gas storage areas. Permits will be released for exploration to assess the carbon injection and storage potential of the 10 areas. The Rudd Government sees carbon capture and storage as going hand-in-hand with its ETS development. Last year it established a Global Carbon Capture and Storage Institute which will receive $AUD100 million funding per annum. Regulations under the Offshore Petroleum Amendment (Greenhouse Gas Storage) Act 2008 (Cth) are expected later this year formally establishing the offshore carbon storage areas.
Good Friday's events in Fiji are now well-trodden in the news media. Commodore Frank Bainimarama resigned as interim Prime Minister following a decision of the Fiji Court of Appeal. Within a day the aged President, Ratu Josefa Iloilo, suspended Fiji's constitution, dismissed the judiciary and other state offices and appointed Bainimarama PM under the "new legal order".
The Fiji Court of Appeal in Qarase v Bainimarama comprised three Justices of Appeal: Francis Douglas QC, Ian Lloyd QC and Randall Powell SC (all barristers from Sydney). The Court effectively called Bainimarama's bluff. Since becoming interim PM in December 2006 he claimed that the Constitution was still in place. Some notable parts of the Constitution, such as Parliament and elections, were just not operating. The Court held that, because the Constitution was in place and because the Constitution provided for how to appoint and dismiss the PM, PM Qarase's dismissal by the President in December 2006 (which led to Bainimarama's elevation) was illegal.
The Court ruled against Bainimarama's pretence of legality, therefore, Bainimarama had nothing to lose by having the President abrogate the Constitution and appoint him PM in an extra-constitutional regime. Just as important, though, the decision threatened Bainimarama's position because the Court ruled that the President should call an election and restore Parliament.
The three Justices of Appeal reached their decision by analysing the prerogative powers enjoyed by the President (prerogative powers being the sources of power outside statutes enjoyed by British monarchs and Governors-General). They held that the prerogative power to dismiss a PM did "travel" to Fiji but that it had since been extinguished when Fiji adopted a Constitution stating the specific circumstances when the President could dismiss the PM.
Qarase v Bainimarama puts Fiji in the same category as South Africa. Both are countries whose head of state and Parliament owe much to their British constitutional inheritance, however, in both countries the head of state's position can no longer be equated with the Queen's. Declaring a republic and adopting a constitution does not allow the powers to jump simply between the offices. New Zealand (and Australia) would need to consider the implications of Qarase v Bainimarama if we became a republic.
The Court criticised the President's decision to act on his own accord. It emphasises that the President should only act on the advice of his ministers who enjoy the confidence of Parliament: the principle of responsible government. In December 2006 Qarase enjoyed the confidence of Parliament, therefore he could advise the President. The President should have acted on Qarase's advice if there was an emergency, not dismiss him.
The Court in Qarase v Bainimarama did not consider the validity of laws made since the coup in December 2006, all without the consent of Fiji's Parliament. The status of those laws is unclear. The longer the laws go unchallenged, though, the more likely they will assume legal legitimacy.
Qarase v Bainimarama is an important decision. Its discussion of prerogative and reserve powers will likely add much to jurisprudential debate in New Zealand and around the Commonwealth. Whether the decision has any immediate effect in Fiji is moot. The "new legal order" established on Good Friday has seen new courts and judges appointed. Fiji's new judges may not wish to follow the precedent established by a now-disbanded court.
Who |
What |
By when… (2009) |
Agriculture and Forestry, Ministry of |
Requirements for export of live animals and germplasm |
14 June |
Commerce Commission |
Authorised Financial Adviser Competence |
29 May |
Inland Revenue Department |
The relationship between section 113 of the Tax Administration Act 1994 and the second proviso to section 20(3) of the GST Act |
12 June |
Reserve Bank |
Insurance (Prudential Supervision) Bill |
22 June |
Standards New Zealand |
Water efficient products - Rating and labelling Acoustics – Road traffic noise – New and altered roads Performance of electrical appliances, air conditioners and heat pumps Part 2: Energy labelling and minimum energy performance standard (MEPS) requirements |
4 June
12 June
17 June |
Statistics New Zealand |
Draft updates to area units and definitions of urban and rural |
? |
Takeovers Panel |
Upstream Takeovers |
12 June |
Who |
What |
By when…(2009) |
Conservation, Department of |
New listing of threatened status of New Zealand freshwater fish Mt Aspiring National Park Draft Management Plan |
22 May
30 June |
Economic Development, Ministry of |
Spectrum Management in the Radio Licensing Regime |
19 May |
Electricity Commission |
Electricity Market Compliance Framework Review - Update |
15 May |
Environmental Risk Management Authority |
Cosmetic Products Group Standard |
14 May |
Health, Ministry of |
Interim Specification for the Midwifery First Year of Practice Programme |
15 May |
Law Commission |
Invasion of Privacy |
29 May |
Maritime New Zealand |
Maritime Rules Part 80B – Commercial rafting operations safety kayaks |
4 May |
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 |
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TIM CLARKE - Partner DOUG BAILEY - Consultant |
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