The measures of political success can be arcane. This is never more so than in the pundits' admiring assessment of Phil Goff's handling of Richard Worth's spectacular own goal. Commanding day after day of media Goff certainly succeeded where most Opposition leaders fail, seizing the political initiative and keeping the Prime Minister on the back foot. Even Key acknowledged the point, frankly admitting at last weeks' public sector excellence awards that the whole thing caused him "to age 18 months in eight days".
If that is only measure of the game, then it was advantage Goff. But the standards of the press gallery are not the only ones in play. When these other measures are applied the picture is not quite so rosy and calls into question Goff's judgement about when to press home and when to keep his own counsel. Certainly, the image of a hard working, intelligent and genuinely nice guy took a hit by association with what, regardless of the truth, looked like a bit of political muck-raking taken too far for too long.
But that said, it has in all other respects been Christmas for Labour. The general election had only just been lost and yet they have been able to bag both a Minister and - at least in part because of it - a more decisive than expected win in the Mt Albert by-election. The achievement resonated in this week's Goff Report. David Shearer's victory capped, Goff said "a horror month for National."
But understated in Labour's schadenfreude was the role that timing rather than tactics played in the result. With Aucklanders' anxieties running high over Waterview and the local governance reforms, together with some less than deft management of Melissa Lee by National's senior rankers, it was easy pickings. The risk for Labour in this is that they mistake the Mt Albert result for a trend and the beginning of the end for the still inexperienced National government. However, as yet unexamined - at least in the public eye - is why they are in a position where the Mt Albert victory and Worth's scalp should mean so much.
Clock Ticking for Local and Regional Government
It is no secret that Local Government Minister has little regard for local bureaucracy. Never a fan of local bodies' general power of competence, Hide last month shepherded a paper through the Cabinet Economic Growth and Infrastructure Committee which had the aim of enhancing the transparency, accountability and financial management mechanisms within which local body decisions are made.
Central to Hide's proposal is that the Local Government Act 2002 should be reviewed. That work is to be guided by the following principles:
- local government should operate within a defined fiscal envelope;;
- departure from that for large projects should be subject to referenda;
- councils should focus on core activities; and
- decision making should be clear, transparent and accountable.
Consultation fatigue, the extension of council activities well beyond core functions and the absence of mandatory requirements for councils to seek ratepayer authorisation for major projects are all cited as issues demanding the Government's attention.
The response from the Greens and Labour was immediate, but far from telling. The spectre of privatisation was offered up by Labour's spokesperson on Auckland issues Phil Twyford, whilst Green Party co-leader Russel Norman said - somewhat perversely given ratepayer sentiment - that the cabinet paper proposals would restrict council work to certain core services. It was Twyford who got the only glancing blow in by pointing out that the Minister wanted local referenda for large project expenditure, but was unprepared to have one on Auckland governance.
But as the political focus has turned to local body powers and the future of council vanity projects, more far-reaching discussions about the future of regional government have gone unremarked. As the Government considers the next phase of the RMA reforms and the future role of the Environmental Protection Agency, questions have been asked about the capacity of regional government to deliver on key resource decisions. Water allocation has been chief among these and advocates among both NGO's and regional government itself have suggested a lesser role for regional government in keeping with the importance of a national approach to national resource questions. The soon-to-be-finalised water co-management arrangements in the Waikato may well be the domino that brings this about.
The implications have not escaped regional government interests, which can see a diminution of their role and ratepayer questions about what exactly they get for their rates dollar from this additional layer of regional bureaucracy.
The implications have not been lost either on local government lobby group Local Government New Zealand. LGNZ is understood to have commissioned economic research on how rate capping has impeded community development, and is looking at the downside of private ownership of utility infrastructure.
But the knotty problem for both LGNZ and councils to address is the analysis of draft 2009 -19 Long term Council Community Plans, which shows that councils' costs and income rise by 40% over 10 years, while rates rise 60%. All this when CPI projections for the period are 30%.
The Local Government Minister has those figures in his sights and as self-styled Minister for ratepayers he will continue to place an interpretation on them that will be less than kind to those proposing a business as usual response.
Appropriation (2008/09 Supplementary Estimates) Bill
Type of Bill: Government
Member in Charge: Hon Bill English
This Bill implements the 2009 Budget.
Climate Change Response (Emissions Trading Forestry Sector) Amendment Bill
Type of Bill: Government
Member in Charge: Hon Dr Nick Smith
This Bill amends the Climate Change Response Act 2002 and it delays reporting and certain other obligations on the forestry sector under the ETS.
Limitation Bill
Type of Bill: Government
Member in Charge: Hon Chris Finlayson
This Bill changes the law on limitation defences in civil court cases by implementing recommendations of the Law Commission and repealing the Limitation Act 1950.
Public Works (Offer Back of and Compensation for Acquired Land) Amendment Bill
Type of Bill: Member's
Member in Charge: Te Ururoa Flavell
The purpose of this Bill is to ensure that former owners of Māori or general land taken or acquired by the Crown for the purposes of a public work are given the first right of refusal to purchase that land where the Crown no longer requires it for the public work for which it was originally taken or acquired.
Radio New Zealand Amendment Bill
Type of Bill: Government
Member in Charge: Hon Dr Jonathan Coleman
Radio New Zealand's Charter is required to be reviewed by the House of Representatives every five years. This Bill implements a new Charter based on the last review.
Taxation (Budget Tax Measures) Bill (now enacted)
Type of Bill: Government
Member in Charge: Hon Bill English
This Bill has already been passed under urgency following the Budget. Now enacted, it has repealed the next phases of National's planned tax cuts and makes changes to the Kiwi Saver mortgage diversion facility.
Bills To Select Committees
Land Transport (Enforcement Powers) Amendment Bill
Residential Tenancies Amendment Bill
Vehicle Confiscation and Seizure Bill
Open for submissions
Bill |
Select committee |
Submissions close (2009) |
Report due (2009) |
Education Amendment Bill |
Education and Science |
10 June |
28 August |
Land Transport (Enforcement Powers) Amendment Bill |
Transport and Industrial Relations |
3 July |
10 September |
Local Government (Auckland Council) Bill |
Auckland Governance Legislation |
26 June |
4 September |
Maori Commercial Aquaculture Claims Settlement (Regional Agreements) Amendment Bill |
Māori Affairs Committee |
31 July |
30 September |
Patents Bill |
Commerce |
2 July |
5 November |
Private Security Personnel and Private Investigators Bill |
Justice and Electoral |
12 June |
30 March 2010 |
Public Works (Offer Back of and Compensation for Acquired Land) Amendment Bill |
Local Government and Environment Committee |
N/A |
17 December |
Regulatory Improvement Bill |
Commerce |
16 July |
12 November |
Residential Tenancies Amendment Bill |
Social Services |
3 July |
5 October |
Vehicle Confiscation and Seizure Bill |
Transport and Industrial Relations |
3 July |
10 September |
Submissions not yet called
Land Transport (Driver Licensing) Amendment Bill
Marine Reserves (Consultation with Stakeholders) Amendment Bill
Methodist Church of New Zealand Trusts Bill
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 |
26 February 2010 |
Corrections (Contract Management of Prisons) Amendment Bill |
Law and Order |
26 September |
Criminal Investigations (Bodily Samples) Amendment Bill |
Justice and Electoral |
12 August |
Children, Young Persons and Their Families (Youth Courts Jurisdiction and Orders) Amendment Bill |
Social Services |
18 August |
Domestic Violence (Enhancing Safety) Bill |
Justice and Electoral |
29 June |
Eden Park Trust Amendment Bill |
Government Administration |
29 July |
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 August |
Legal Services Amendment Bill |
Justice and Electoral |
2 October |
Marine Reserves Bill |
Local Government and Environment |
30 June |
Palmerston North Showgrounds Act Repeal Bill |
Local Government and Environment |
30 September |
Port Nicholson Block (Taranaki Whanui ki Te Upoko o Te Ika) Claims Settlement Bill |
Māori Affairs |
30 June |
Privacy (Cross-border Information) Amendment Bill |
Justice and Electoral |
1 October |
Reserves and Other Lands Disposal Bill |
Primary Production |
10 September |
Resource Management (Simplifying and Streamlining) Amendment Bill |
Local Government and Environment |
27 July |
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 2010 |
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 |
Social Assistance (Payment of New Zealand Superannuation and Veterans Pension Overseas) Amendment Bill |
Social Services |
30 September |
Student Loan Scheme (Repayment Bonus) Amendment Bill |
Education and Science |
30 July |
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 |
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.
ASEAN-Australia-New Zealand Free Trade Area Bill
Children, Young Persons and Their Families Amendment Bill (No 6)
Cultural Property (Protection in Armed Conflict) Bill (Report of the Government Administration Committee)
Disputes Tribunals Amendment Bill (Report of the Justice and Electoral Committee)
Dog Control Amendment Bill (No 2)
Insolvency Amendment Bill (Report of the Commerce Committee)
Judicial Matters Bill
Oaths Modernisation Bill
Port Nicholson Block (Taranaki Whānui ki Te Upoko o Te Ika) Claims Settlement Bill (Report of the Māori Affairs Committee)
Public Health Bill
Rail Network Bill
Regulatory Responsibility Bill
Resource Management (Climate Protection) Amendment Bill
Serious Fraud Office (Abolition and Transitional Provisions) Bill
Therapeutic Products and Medicines Bill
Trustee Amendment Bill
Waka Umanga (Māori Corporations) Bill
Resource Management (Climate Protection) Amendment Bill
Sale of Liquor (Youth Alcohol Harm Reduction) Amendment Bill
Appropriation (2009/10 Estimates) Bill
Land Transport Amendment Bill (No 4)
Parliamentary Service (Continuation of Interim Meaning of Funding for Parliamentary Purposes) Bill
Taxation (Budget Tax Measures) Act 2009
Agricultural Compounds and Veterinary Medicines (Fees and Charges) Amendment Regulations 2009
Airport Authorities (Hawke’s Bay Airport Limited) Order 2009
Alcohol Advisory Council Levy Order 2009
Animal Products (Fees, Charges, and Levies) Amendment Regulations 2009
Dairy Industry Restructuring (Raw Milk) Amendment Regulations 2009
Executive Travel, Accommodation, Attendance, and Communications Services Determination 2009 [promulgated under the Civil List Act 1979]
Financial Reporting Act (American International Assurance Company (Bermuda) Limited) Exemption Notice 2009
Fisheries (Pukerua Bay Temporary Closure) Notice 2009
Gas (Levy of Industry Participants) Regulations 2009
Health (Infectious and Notifiable Diseases) Amendment Regulations 2009
Health Practitioners (Quality Assurance Activities—Otago District Health Board) Notice 2009
Health Practitioners (Quality Assurance Activity—ANZCA Continuing Professional Development Program) Notice 2009
Health Practitioners (Quality Assurance Activity—Compass Health Limited) Notice 2009
Local Government Elected Members (2008/09) Amendment Determination (No 2) 2009
Major Events Management (FIBA U19 World Championship 2009) Order 2009
Maori Trustee Regulations 2009
Overseas Investment Amendment Regulations 2009
Parental Leave and Employment Protection (Rate of Parental Leave Payment) Regulations 2009
Referenda (Postal Voting) Regulations 2009
Securities Act (American International Assurance Company (Bermuda) Limited) Exemption Notice 2009
Securities Act (Charitable and Religious Purposes) Exemption Amendment Notice 2009
Securities Act (Rights, Options, and Convertible Securities) Exemption Amendment Notice 2009
Takeovers Code (Pike River Coal Limited) Exemption Notice 2009
Wine Amendment Regulations 2009
Next week Parliament is expected to pass the first readings of the recently introduced Residential Tenancies Amendment Bill and the Māori Commercial Aquaculture Claims Settlement (Regional Agreements) Amendment Bill. The Land Transport Amendment Bill (No 4) will receive its second reading. The Inquiries Bill, a result of a Law Commission report into the Commissions of Inquiry Act 1908, may also receive its first reading (after this debate was interrupted on 12 May).
Select Committees met regularly over the past three weeks. Below is a summary of the submissions they heard and their deliberations.
Commerce Committee
The Committee heard submissions on the Electricity (Continuance of Supply) Bill from Marlborough Lines Ltd and the Electricity Networks' Association. Marlborough Lines did not believe the Bill would achieve its aim of continued supply to people in remote and uneconomic locations because the only fair way to replace uneconomic lines would be a Government subsidy. Marlborough Lines recommended that Parliament delay passing the Bill until a proper assessment (perhaps by a working group) of its implications. The Electricity Networks' Association submitted that the Bill would increase line charges for remote customers and that the market for alternative means of supply could be inhibited by the Bill.
Education and Science Committee
The Ministry of Education briefed the Committee on issues relating to the educational needs of autistic children. The J R McKenzie Trust's initiative See Here briefed the Committee on its work with children (most under 15 years) with impaired sight.
Finance and Expenditure Committee
The Committee heard from the Governor of the Reserve Bank, Alan Bollard, about the June monetary policy statement. Most of the Committee's discussion with Dr Bollard concentrated on the effect of the Official Cash Rate on the exchange rate and banks' lending rates. Labour members asked Dr Bollard repeatedly what actions the Reserve Bank was taking to ensure that banks are not profiting excessively from their current lending rates. Dr Bollard also indicated to the Committee that the OCR was unlikely to affect the exchange rate noticeably, especially because many other counties currently have lower OCRs than New Zealand.
On Thursday the Committee announced that it would not rule out an inquiry into the relationship between the OCR and short-term interest rates.
Government Administration Committee
The Committee heard submissions on the Eden Park Trust Amendment Bill.
Health Committee
The Ministry of Health, the New Zealand Society of Paediatric Surgeons and the Privacy Commissioner briefed the Committee. The Privacy Commissioner addressed issues raised by the Petition of Sally Fisher and 1,283 Others, which called for an investigation into the care of patients receiving mental treatment. The Ministry of Health addressed the issue of a national organ donor register. The Ministry believes increased clinician awareness of donors would help identify more potential donors than a register.
Law and Order Committee
The Committee heard submissions on the Sentencing and Parole Reform Bill (the "three strikes" Bill). Submitters, including the New Zealand Law Society, opposed the Bill. The Law Society's opposition stemmed mainly from section 9 of the New Zealand Bill of Rights Act 1990, which reads:
Everyone has the right not to be subjected to torture or to cruel, degrading, or disproportionately severe treatment or punishment.
The removal of discretion under the Bill to assess individual sentencing cases on their merits is one of the reasons why the Law Society believes that the Bill falls foul of section 9. The Howard League for Penal Reform, the Napier Pilot City Trust and the Restorative Justice Network, amongst others, also submitted against the Bill.
Local Government and Environment Committee
The Committee heard from the Minister for the Environment, Hon Dr Nick Smith, about a biennial report on the administration of the RMA by local authorities. The Minister also spoke about the Resource Management Amendment (Simplifying and Streamlining) Bill.
Māori Affairs Committee
The Minister of Broadcasting, Hon Jonathan Coleman, briefed the Committee on the Government's broadcasting priorities and how abolishing the TVNZ charter would affect Māori broadcasting specifically. More recently, the Ministry of Consumer Affairs briefed the Committee on the over-representation of Māori and Pacific peoples as borrowers from "fringe" lenders and the possible policy responses to the situation.
Primary Production Committee
The Committee heard submissions on the Reserves and Other Lands Disposal Bill. The Bill addresses issues concerning myriad parcels of land.
Social Services Committee
The Committee heard submissions on the Children, Young Persons, and Their Families (Youth Courts Jurisdiction and Orders) Amendment Bill. The Bill will, inter alia, lower the age of criminal prosecution from 13 to 12 years of age. Most submitters opposed the Bill.
The Committee also heard submissions on the Unit Titles Bill, which repeals the Unit Titles Act 1972 and replaces it with a new regime. Those submitting said, amongst other things:
- The New Zealand Property Investors' Federation supported the Bill.
- The New Zealand Holiday Ownership Council wanted greater protection for time-share interests in properties, although the Council supports the Bill overall.
- The New Zealand Law Society supported the Bill generally but suggested numerous specific amendments, including opposition to using the Tenancy Tribunal as a units dispute resolution body. The Society also commented that it was difficult to comment fully on the legislation because the Bill envisages the promulgation of so many regulations.
- The New Zealand Institute of Chartered Accountants expressed concern about the reporting requirements in the Bill. Under the Bill, bodies corporate could not approve financial statements or appoint auditors. The Institute recommended reporting requirements similar to those for small businesses.
- The Retirement Villages' Association presented a joint submission with Ryman Healthcare and recommended that the Retirement Villages Act 2003 should prevail in the event of conflict between it and the Bill. The Association identified areas where the Bill conflicted with the Retirement Villages Act 2003 and predicted that such conflicts could cost each retirement village resident up to $1,000 per annum.
New Start For Fresh Water?
Fresh water management remains firmly on the Government's agenda and has the potential to be one of the biggest policy issues of the current Parliamentary term. The reform process was restarted recently with a paper to the Cabinet from the Minister for the Environment and the Minister of Agriculture.
The paper originated in Cabinet's Economic Growth and Infrastructure Committee, which points to the role the Government sees water filling. Bill English's comments at the Budget lock up two weeks ago reinforce such a view. There English described water as one of New Zealand's advantages over trade competitors and emphasised that water management reform was one of the planks for economic productivity gains.
The Government's paper tries to straddle the competing demands of incremental change, not upsetting current water users and potentially radical changes to allocation mechanisms. These competing demands will be reconciled through a lot more talking with "a stakeholder-led collaborative process" to develop "a shared understanding" of how water should be managed.
The paper envisages the following long-term results for water management:
- Mixed-use of most water bodies (lakes, rivers, wetlands etc) for both "public values" and varying levels of economic use.
- Few water bodies being highly protected in a pristine and un-altered state.
- Some water bodies being degraded (in flow or quality) because it is agreed that the economic benefits of doing so outweigh other costs.
- Some form of categorisation of water bodies to meet the above outcomes.
- A two-stage allocation model for water bodies, with part reserved for public values and part allocated to the most valuable economic use (most likely through a market-based mechanism).
- Much greater use of water storage and distribution infrastructure, including addressing the procedural barriers to more water storage.
If implemented, the proposals would represent a significant shift in New Zealand's water management. Significant potential changes include:
- Creating a market and a price for water. For decades New Zealand has effectively licensed people to use water on a first-come, first-served basis.
- Central government directing regional councils as to water quality and other outcomes. When enacted in 1991 most commentators (including the then Minister for the Environment, Simon Upton) anticipated central government direction of regional council decisions. To date this scenario has still not emerged.
- Categorising waterways, so effectively picking loser workhorse waterways.
- Creating incentives for more damming and irrigation.
Recognising the enormity of potential changes, the Government is treading cautiously. Between now and July 2010 the Government plans to talk about possible changes and create detailed policy options. This is the time to get ahead of the game and shape the policy options. After July next year the Government will consult further and then reach final decisions. The implementation phase could easily go through to the next election.
Throughout the remainder of this Parliamentary term the Government will also engage with Māori leaders over fresh water issues and improve central government direction over regional councils' water allocation decisions (through national policy statements and national environmental standards under the RMA).
A full copy of the Cabinet paper is available here.
ETS Implementation Delay for Forestry
On Thursday the Minister for Climate Change Issues, Hon Dr Nick Smith, announced that he was introducing a Bill to delay the reporting requirements for forestry under the ETS. It is the first amendment to the Climate Change Response Act 2002 since the last Government introduced the ETS in September 2008.
Dr Smith cites the following reasons for the amendments:
- The reporting requirement for deforestation in 2008 and the deadline for applying for small block exemptions is unreasonable because of the ETS Select Committee review and the lack of public knowledge about the reporting requirement.
- It is nonsensical for the Government to publish an allocation plan for pre-1990 forests by 30 June 2009 when the ETS is being reviewed by a Select Committee.
- New Zealand needs to take time to consider its approach to forestry under the ETS because we are the first country to include forestry in a trading scheme.
The delay for forestry reporting appears uncontroversial and National has consulted other parties about the Bill. Dr Smith expects the Bill to pass into law by 30 June 2009.
Introducing the Bill is a timely reminder that the ETS is still in place and that any changes to the scheme must be done via statutory amendment. It also emphasises that the Government is prepared to delay parts of the ETS.
Dr Smith said that he expects amending legislation from the ETS Select Committee before the House later in the year.
The Ministry for the Environment commissioned a report by the NZ Institute of Economic Research and Infometrics into the costs of the ETS. The report indicates that the ETS could cut expected growth in per capita income by 2025, but that the economic effects of the ETS depended on some notable variables, namely:
- How easily businesses can move away from carbon-intensive operations.
- Carbon pricing actions by the rest of the world.
- The availability and cost of carbon abatement technology.
A full copy of the Report is available here.
Australia's ETS up in the air
Kevin Rudd's Labour Government has not yet got legislation establishing an ETS through Australia's federal Parliament. As previously reported, neither the opposition Liberals nor the Greens will support the ALP's proposed ETS, meaning that the legislation cannot pass in the Senate where the ALP is without a majority.
The ETS debate is turning into a titanic struggle. Rudd hopes to bring the ETS legislation before the Senate in the next few weeks. There are now open murmurings that Rudd will advise the Governor-General to dissolve both Houses and call an election if the legislation cannot pass in the Senate. Double dissolutions are rare, and the Senate would have to twice-reject the legislation. Fighting an election on the issue would be risky for Mr Rudd, just as the Opposition is closing on the Government in opinion polls. Failing to enact the ETS legislation would, however, humiliate Mr Rudd.
The ETS legislation is equally a test for Opposition leader Malcolm Turnbull. Mr Turnbull personally supports emissions trading and is trying to keep the Liberals united on the issue. Both the ALP and Australian business leaders have criticised the Liberals, though, with business leaders yesterday saying that the party's policy amounted to nothing more than delaying the ETS by a year.
The political posturing in Canberra certainly makes the job of the ETS Select Committee review in Wellington harder because the committee is expressly tasked with considering policy developments in Australia.
Reserve Bank Guidelines for Non-bank Deposit Takers
Last week the Reserve Bank released its draft risk management programme guidelines for non-bank deposit takers. The guidelines will help takers of deposits interpret section 157M of the Reserve Bank of New Zealand Act 1989, which comes into force on 1 September 2009.
Submissions on the guidelines close on 29 June 2009.
A full copy of the 10-page draft guidelines is available here. A summary of the Reserve Bank's policy position on the definition of "non-bank deposit taker" is available here.
The Minister of Commerce, Hon Simon Power, last week announced an overhaul of the Government's procurement policies. According to a released Cabinet paper, the aim of the reform is four-fold:
- cost savings;
- building capability and capacity of procurement within the state sector;
- enhanced New Zealand business participation in supplying goods and services to government; and
- improved governance, oversight and accountability of procurement.
Amongst other things, the Government is contemplating more whole-of-government procurement which can reduce costs markedly according to case studies from Australia.
Power has set a firm but tight deadline for achieving the procurement reforms. He will report back as to progress to Cabinet's Expenditure Control Committee at the end of August 2009, November 2009 and February 2010.
A full copy of the Cabinet paper is available here and an overview of the procurement review is available here.
Oxfam Slams New Zealand - Climatically
Oxfam has criticised New Zealand's negotiating position at international climate change negotiations in Bonn, Germany. The Climate Change Network has twice awarded New Zealand the runner up "fossil of the day" award during the negotiations, which are a precursor to the Copenhagen conference in December 2009. New Zealand's failings include not announcing medium-term emissions reductions targets last week. Oxfam describes New Zealand now as one of the "laggards" at the negotiations.
Oxfam also posits a new scheme to get climate change negotiations back on track and to ensure that greenhouse gas emissions are cut sufficiently to keep global temperature increases within 2°C of pre-industrial temperatures. But the world can only achieve such a goal with deep cuts by both developed and developing countries.
How to reach these lofty aims? Oxfam's plan has three limbs:
- Developed countries bear a "double duty" to the world. The first is to reduce emissions 40 percent by 2020. Australia, Canada, the European Union, Japan, Russia and the United States currently emit 95 percent of the emissions that the developed world needs to cut.
- The second duty on the developed world is to provide funding of up to US$150b per annum to assist developing countries. Oxfam proposes that these funds are raised via the sale of Kyoto-compliant credits.
- Finally, Oxfam proposes a "Global Mitigation and Finance Mechanism". The mechanism would provide constant financial flows from developed countries in return for emissions reductions from developing countries (while also aiming to lift living standards in the developing word). The mechanism proposes a sliding scale "development threshold" to assess how much aid countries receive. For example, Uganda would receive 100 percent funding for emissions reduction activities, whereas China would receive a lesser percentage because of the latter's comparative wealth among developing countries.
A full copy of Oxfam's latest report and recommendations is available here.
The Minister of Labour, Hon Kate Wilkinson, recently created an advisory group to consider the Holidays Act 2003. The group will likely advise the Government to change aspects of the current holiday regime.
Peter Kiely (partner at the law firm Kiely Thompson Caisley) will chair the advisory group. The other members are:
- Helen Kelly (CTU president) and James Ritchie (Dairy Workers' Union) for employees.
- Philip Doak (Senior Counsel, Air NZ) and Paul Mackay (Business NZ) for employers.
Overall the group will consider making the Holidays Act easier for employers and employees to understand, reducing compliance costs and making the legislation more flexible in more situations. Specifically, it will report to the Minister of Labour on the following issues:
- trading some annual leave entitlements "for cash";
- allowing the transfer of public holiday observance to another day;
- the treatment of leave entitlements for casual employees;
- the treatment of public holidays; and
- trading hours on Easter Sunday.
Some issues are too politically hot to handle. The group may not, therefore, consider reducing the current "core" holiday entitlements (despite the possibility that holidays could be traded for cash) and may only consider trading leave entitlement at an employee's request.
The group is expected to consult widely as part of its review.
The advisory group must report to the Minister by 15 December 2009. Kate Wilkinson expects to bring a paper to Cabinet with recommended changes to the Holidays Act in March 2010.
The full review terms of reference are available here.
Law Commission Report Says Everything Largely Alright
New Zealand's statute drafting is largely fine according to the Law Commission.
The Commission recently reviewed the Statutes Drafting and Compilation Act 1920. The Act establishes the Parliamentary Counsel Office ("PCO"), which drafts statutes. The Commission's president, Rt Hon Sir Geoffrey Palmer SC, said of the PCO that "there is nothing quite like the institution…in other systems…we have managed to get the essential elements of law drafting right in New Zealand."
In a self-described "conservative" report, the Law Commission makes some recommendations to update that 1920 Act and to preserve the independence of the PCO.
The full report is available here.
Rail Acquisition Criticised
The Minister of Transport, Hon Steven Joyce, recently criticised the last Government's purchase in 2008 of Toll Ltd's rail assets and the establishment of KiwiRail. With the release of Treasury documents on KiwiRail under the Official Information Act, it has become apparent that the $690 million purchase price required to return the railway to public ownership has come at a heavy price, with KiwiRail now valued $388 million. In addition to this large drop in value, KiwiRail also required a further $316 million investment in capital grants, debt repayments, loan facilities, operating support, and an equity injection.
The Treasury documents released last week reveal a grim picture of KiwiRail's profitability, with the expectation being that rail must continue to be heavily subsidised by the Government, despite not turning a profit, or must have its operations severely reduced. Treasury indicates that the lines would need to shrink from 4000km to 2300km for a return to profitability without subsidies. In 2009, the Government will subsidise KiwiRail to the tune of $90 million, with further subsidies requiring Cabinet approval. Treasury also expressed the view "that public subsidy is only justified where there are clear public benefits that are not included in the commercial price (eg reduction in congestion or reduced emissions)."
Mr Joyce questioned the wisdom of the purchase of KiwiRail by Labour, noting that New Zealand now needs "some hard-nosed realism about future investments." Treasury predicts rail in New Zealand to be profitable for bulk goods being hauled for long stretches only. Rail alone cannot likely support shorter trips, smaller-sized goods or and passenger trips, especially when competing with air, sea and road.
Full copies of the publicly-released documents are available here.
Who |
What |
By when… (2009) |
Biosecurity New Zealand |
Import risk analysis: Cats, dogs and canine semen |
17 July |
Review of the Undaria Commercial Harvest Policy |
31 July |
Department of Conservation |
Lichens and freshwater invertebrates |
30 September |
Electricity Commission |
Distribution Pricing Methodology |
3 July |
Ministry for the Environment |
Draft regulations for the stationary energy and industrial processes sectors (under the Emissions Trading Scheme) |
30 June |
Ministry of Fisheries |
Proposed In-Season TAC Increase for the 2008-09 Fishing Year for Flatfish (FLA 3) |
26 June |
Department of Labour |
Draft of Code of Practice for Cranes |
3 July |
New Zealand Transit Agency |
Traffic control devices manual: direction, service and general guidance signs |
17 July |
Traffic control devices manual: advertising signs |
17 July |
Who |
What |
By when… (2009) |
Ministry of Agriculture and Forestry |
Shelf-stable spray dried egg powders or egg crystals from specified countries |
26 June |
Department of Conservation |
Mt Aspiring National Park Draft Management Plan |
30 June |
Ministry of Economic Development |
800-960 MHz Band Replanning Options |
30 June |
New Zealand Food Safety Authority |
Unpasteurised Milk Products |
3 July |
New Zealand Geographic Board |
Place name change from Wanganui to Whanganui |
17 August |
For other name change consultations click here |
Various dates |
PHARMAC |
Revised Funding Application Guidelines |
1 July |
Standards New Zealand |
Electrical equipment for mines and quarries - General requirements; Distribution, control and auxiliary equipment; Substations |
17 July |
Statistics New Zealand |
Draft updates to area units and definitions of urban and rural |
Unknown |
New Zealand Transit Agency |
SH20 Waterview Connection |
31 July |
