Something Private and Nasty in the Woodshed
Sometimes ill-conceived and too often poorly executed, the asset privatisations of the late 1980s and early 1990s left an bad and enduring taste in the mouths of 'ordinary New Zealanders'.
For the Opposition politicians of the day these events were far from calamitous. In fact they were a godsend, delivering up a stick with which to beat the political right not only then, but in perpetuity. It didn't matter if privatisation was actually on the agenda, simply alluding to its mephitic stench was enough to firm the resolve of the uncommitted voter.
As far as tying Government hands goes, it's a strategy that has worked. Despite the provocations of the current fiscal crisis, National has stuck to its "not in this term" pledge. Asset sales remain off-limits. 'There be tygres.'
Whether by accident or design, the definition of privatisation is now being extended. No longer about the alienation of public assets and means of production, it seems that privatisation now includes contracting for services.
The management of prisons, delivery of health services, and the provision of policy advice have all been cited as instances of creeping privatisation and evidence of National's perfidy. The aim, if there is one, seems to be twofold: to keep alive in the public mind the bogeyman of a right wing agenda and to broaden the range of things that can be shelved alongside nuclear ships and the ebola virus as things you don’t go near.
But in this the Opposition may have reached too far. One too many poorly supported claim and one too many unconstructive economic jibe from the safety of the Opposition benches may have worn thin with a public that understands the harsh realities of managing on a budget.
The suggestion that New Zealand's already limited options should be reduced still further in the name of preserving the status quo, may not have the audience it once did. And while this is no excuse to repeat the mistakes of the past, it is time to examine the options.
Dame Sian Crosses the Line?
Judges do not like to invite political controversy and presumably New Zealand's Chief Justice is no exception.
But last month Dame Sian Elias did just that, delivering a speech to the Wellington Women-in-Law Committee that touched on the problem of prison overcrowding and pointed to executive amnesties as a means of dealing with it. However fleeting, that observation was enough to goad Justice Minister Simon Power into delivering a swift rebuke for what he saw as case of a judge crossing the established constitutional line between Government and the judiciary.
"This is not Government policy," he thundered. "The Government was elected to set sentencing policy, judges are appointed to apply it." The Sensible Sentencing Trust took up the cry, and TV One's Breakfast presenter Paul Henry called for the Chief Justice's head. "The law," he offered somewhat opaquely, "should be as clear as maths."
Going to first principles, the separation of powers is at the heart of our system. Politicians should not comment on the workings of the judiciary and vice versa. Circumspection is the order of the day. In legal-speak it's about the 'comity' of our institutions. But did the Chief Justice's comment on criminal justice and allusion to executive amnesty as a means of dealing with prison overcrowding merit the response it got?
Reading her speech, it's clear that Dame Sian did not criticise the Government. Nor did she dictate a course of action. Instead, she drew on her experience to observe on the increasing bias of criminal justice system towards victims and the apparently consequential increases in the prison population. She noted the failure of alternatives and invited consideration of new approaches to the problem, including crime prevention and greater investment in early intervention and executive amnesty.
In so doing, she drew on her considerable legal experience to throw options on the table. In the process she took pains to acknowledge the primacy of Parliament and its laws, as well as public anxiety about crime.
University of Otago legal savant Professor Andrew Geddis came to her defence, noting that it is not unheard of for judges to make such comments. If judges are constitutionally barred from giving their first-hand insights, he argues, where will we get that information?
But is this proper, particularly when delivered by the Chief Justice? In the United States the answer would be an emphatic no. As Supreme Court nominee Sonia Sotomayor is discovering, even a hint on her part that judges have a role in policy formation has been enough to place her appointment in jeopardy. The separation of powers is jealously guarded and whatever sophistry may be involved, the general view is that the distance between the political and the judicial ought to be a gulf, not a line. There if you want to make policy the rule is simple - get elected.
Here, we are less familiar or careful with administrative conventions and have a greater tolerance for judicial activism. By those lights Dame Sian's error was less constitutional than it was an under-estimation of populism and the Government's sensitivity to the barrenness of a lock-em-up-and-throw-away-the-keys solution.
It was still an error. Even here the prevailing rule for judges and politicians when tempted to comment on the other's business should be a rigid one - don't.
You can read Dame Sian's full speech here.
ETS Target Discussed While Energy Sector Emissions Rise
The debate over New Zealand's 2020 greenhouse gas emissions target has been dominated by some unlikely leaders. With New Zealand needing to table a new emissions reduction target for the year 2020 at the Bonn conference in August, heavyweight celebrities such as Keisha Castle-Hughes and Robyn Malcolm have fronted in the debate as climate change ambassadors. Greenpeace's "sign on" campaign has taken up prime-time television and newspaper slots, pressing for a 40% reduction of 1990 greenhouse gas levels by 2020.
Yet for National, it could have been quite different. Despite establishing a broad climate change policy post-election, which aimed to balance New Zealand's environmental role alongside the economic development of the country, few specific targets were implemented. With the Bonn conference looming, National is still publicly consulting on the post-2012 target. Without a clear policy, Greenpeace were able to enter into the discussion and establish the 40% target as the touchstone for further debate on the subject.
But this new target has not been squarely rejected by New Zealand business groups. Federated Farmers and Business New Zealand have denounced the target as unrealistic, and Minister for Climate Change Nick Smith has challenged Greenpeace to explain how New Zealand can pay for such a drastic reduction. This balancing act between the environment and the economy has yet to be resolved by the National Government, who are simultaneously reviewing the Emissions Trading Scheme that will implement these policies on a domestic level.
While this 2020 target has dominated the media inches on climate change, the Ministry of Economic Development released an important document that will provide the Government with further greenhouse gas-induced headaches. A report on emissions from the New Zealand energy sector for 2008 has indicated an almost 4% rise in emission levels in the sector, as compared to 2007. Major findings in the report include:
- A total increase in greenhouse gas emissions from the energy sector of 3.6%.
- Emissions from national transport made up 42% and electricity generation made up 22% of the total emissions from the energy sector.
- Energy emissions from coal increased by 36.6%, which was reflected in a 15.2% increase in emissions by electricity generation compared to 2007.
- National transport emissions fell by 4% from 2007 levels.
- Emissions from fuel combustion have increased at a rate double that of the global increase between 1990 and 2006.
The continued public debate about future emission reductions has failed to address the reality that even a stabilisation of current levels is a challenge in itself, which this MED report shows. New Zealand has released a greater amount of emissions from fuel combustion in this first year of Kyoto accounting than in 2007, all the while debating a new reduction level for the post-2012 climate. The immediate challenge for the National Government is how to reverse this worrying trend.
While the coming months may explain how the National Government plans to tackle domestic greenhouse gas emissions, the implementation will prove whether or not these policies are all just hot air.
Cluster Munitions (Prohibition) Bill
Type of Bill: Government
Member in Charge: Hon Georgina te Heuheu
This Bill will affirm New Zealand's commitment to the international Cluster Munitions Convention, which New Zealand signed in December last year. The Bill prohibits the use of cluster munitions and also prohibits other activity including the acquisition, possession, retention, stockpiling, and transfer of cluster munitions.
Customs and Excise (Prohibition of Imports Made by Slave Labour) Amendment Bill
Type of Bill: Private Member's Bill
Member in Charge: Hon Maryan Street
This Bill amends the Customs and Excise Act 1996 to prohibit importing goods that are produced in whole or in part by slave labour.
Local Government (Protection of Auckland Assets) Amendment Bill
Type of Bill: Private Member's Bill
Member in Charge: Phil Twyford
This Bill would amend the Local Government Act 2001 so that none of the existing or future local authorities in Auckland, including the Auckland Transition Authority, could sell or privatise assets on a list of protected assets without holding a referendum. The Bill would also limit the ability to dispose of parks, swimming pools, public libraries and public housing assets.
Search and Surveillance Bill
Type of Bill: Government
Member in Charge: Hon Simon Power
This Bill boosts the tools available to law enforcement agencies to fight crime. It implements reforms based on the Law Commission's Search and Surveillance Powers Report (R97). This Bill has been introduced as a replacement for the Search and Surveillance Powers Bill, which was introduced by the previous government and has now been discharged.
Taxation (Consequential Rate Alignment and Remedial Matters) Bill
Type of Bill: Government
Member in Charge: Hon Peter Dunne
This Bill makes several changes to taxation legislation, including introducing new resident withholding tax rates for interest paid to individuals in order to bring these rates in line with the new personal tax rates. It also clarifies how the expenses of participants in the Permanent Forest Sink Initiative are to be treated for tax purposes and clarifies that the new waste disposal levy is subject to GST.
Te Rā o Matariki Bill / Matariki Day Bill
Type of Bill: Private Member's Bill
Member in Charge: Rahui Katene
This Bill proposes to make Matariki, sometimes called Māori New Year, New Zealand's twelfth public holiday. It proposes that, like the Christmas and New Year holidays, if Matariki falls on a weekend then the following Monday would be a public holiday. The Bill proposes that Matariki be observed as a public holiday on the day of the next new moon after the Matariki constellation has risen, which usually occurs in May or June. There is some variation between iwi of when Matariki is celebrated, which the Bill would resolve by having the Minister of Māori Affairs declare the Matariki day in the Gazette, after consulting with people who have knowledge and experience in tikanga and astronomy.
Bills To Select Committees
Open for submissions
Bill |
Select committee |
Submissions close (2009) |
Report due (2009) |
Anti-Money Laundering and Countering Financing of Terrorism Bill |
Foreign Affairs, Defence and Trade |
6 August |
15 September |
Māori Commercial Aquaculture Claims Settlement (Regional Agreements) Amendment Bill |
Māori Affairs |
31 July |
30 September |
Motor Vehicle Sales Amendment Bill |
Commerce |
20 August |
30 December |
Public Works (Offer Back and Compensation for Acquired Land) Amendment Bill |
Local Government and Environment |
14 August |
17 December |
Radio New Zealand Amendment Bill |
Commerce |
13 August |
24 December |
Submissions not yet called
Land Transport (Driver Licensing) Amendment Bill
Marine Reserves (Consultation with Stakeholders) Amendment Bill
Methodist Church of New Zealand Trusts Bill
Road User Charges Amendment Bill
Submissions closed
Bill |
Select committee |
Report due (2009) |
Aquaculture Legislation Amendment Bill (No 2) |
Primary Production |
24 August |
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 |
Eden Park Trust Amendment Bill |
Government Administration |
29 July |
Education Amendment Bill |
Education and Science |
28 August |
Electricity (Continuance of Supply) Amendment Bill |
Commerce |
31 July |
Franklin District Council (Contribution to Funding of Museums) Amendment Bill |
Local Government and Environment |
4 September |
Land Transport (Enforcement Powers) Amendment Bill |
Transport and Industrial Relations |
10 September |
Legal Services Amendment Bill |
Justice and Electoral |
2 October |
Local Government (Auckland Council) Bill |
Auckland Governance Legislation |
4 September |
Marine Reserves Bill |
Local Government and Environment |
30 December 2010 |
Palmerston North Showgrounds Act Repeal Bill |
Local Government and Environment |
30 September |
Patents Bill |
Commerce |
5 November |
Privacy (Cross-border Information) Amendment Bill |
Justice and Electoral |
1 October |
Private Security Personnel and Private Investigators Bill |
Justice and Electoral |
30 March 2010 |
Regulatory Improvement Bill |
Commerce |
12 November |
Reserves and Other Lands Disposal Bill |
Primary Production |
10 September |
Residential Tenancies Amendment Bill |
Social Services |
5 October |
Resource Management (Simplifying and Streamlining) Amendment Bill |
Local Government and Environment |
14 August |
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 |
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 |
Trade Marks (International Treaties and Enforcement) Amendment Bill |
Foreign Affairs, Defence and Trade |
7 October |
Unit Titles Bill |
Social Services |
5 September |
Vehicle Confiscation and Seizure Bill |
Transport and Industrial Relations |
10 September |
Waikato-Tainui Raupatu Claims (Waikato River) Settlement Bill |
Māori Affairs |
31 December |
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.
Children, Young Persons and Their Families Amendment Bill (No 6)
Cultural Property (Protection in Armed Conflict) Bill
Dog Control Amendment Bill (No 2)
Domestic Violence (Enhancing Safety) Bill
Gangs and Organised Crime Bill (Report of the Law and Order Committee)
Judicial Matters Bill
Māori Trustee and Māori Development Amendment Bill
Oaths Modernisation Bill
Public Health Bill
Rail Network Bill
Regulatory Responsibility Bill
Serious Fraud Office (Abolition and Transitional Provisions) Bill
Settlement Systems, Futures, and Emissions Units Bill
Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill
Therapeutic Products and Medicines Bill
Trade (Safeguard Measures) Bill
Trustee Amendment Bill
Waka Umanga (Māori Corporations) Bill
Whakarewarewa and Roto-a-Tamaheke Vesting Bill
Bills Awaiting Third Reading
Building Amendment Bill (No 2)
Insolvency Amendment Bill
Port Nicholson Block (Taranaki Whānui ki Te Upoko o Te Ika) Claims Settlement Bill
Disputes Tribunals Amendment Bill
Financial Advisers Amendment Bill (formerly part of the Securities Disclosure and Financial Advisers Amendment Bill)
Securities (Disclosure) Amendment Bill (formerly part of the Securities Disclosure and Financial Advisers Amendment Bill)
Customs and Excise (AANZFTA) Amendment Act 2009
Tariff (AANZFTA) Amendment Act 2009
Financial Reporting Act (Overseas Issuers) Exemption Amendment Notice 2009
Futures Contracts (Figure Eight Global Investors Limited) Exemption Notice 2009
Securities Act (Employer Superannuation Schemes) Exemption Amendment Notice 2009
Securities Act (Kingdom Resources Trust) Exemption Notice 2009
Securities Act (Neuren Pharmaceuticals Limited) Exemption Amendment Notice 2009
Takeovers Code (Just Water International Limited) Exemption Notice 2009
The coming week should see the first readings of the Taxation (Consequential Rate Alignment and Remedial Matters) Bill, the Cluster Munitions (Prohibition) Bill and the Inquiries Bill. Progress could also be made on the Road User Charges Amendment Bill and the Building Amendment Bill (No 2).
Wednesday is a members' day, meaning that non-Government business takes preference. This will see the Green Party's Sustainable Biofuel Bill and the Marine Animals Protection Law Reform Bill have their first reading debates. The three new private member's Bills introduced last week (see the New Bills section above) may also have their first reading debates.
Thursday will see the third reading of the Port Nicholson Block (Taranaki Whanui ki Te Upoko o Te Ika) Claims Settlement Bill.
Select Committee action over the past fortnight has been dominated by the issue of the "Super City", with three weeks of oral submissions before the Auckland Governance Legislation Select Committee drawing to a close.
Auckland Governance Legislation
In the course of an extended series of meetings the Committee has heard over 830 submissions on the proposed Auckland governance legislation.
Among the main theme were calls for the recognition of different communities when defining geographical boundaries and opposition to the election of Auckland councillors "at large". That opposition was not uniform, with many submissions recognising the problem of local parochialism immobilising the unitary Council. Dedicated Māori representation also featured as an issue with wide support, albeit with a lack of consensus as to how it should be implemented.
The role and status of Community Boards has attracted divided views. A smaller number of boards could wield more power and influence, whilst a larger number could provide greater contact with communities of interest at a grassroots level. As for their powers, there is strong support for community owned assets and their benefit staying within the jurisdiction of community boards. Submitters have argued that only the responsibility for wider regional issues such as motorways, water management, and ports be allocated to the wider Auckland Council.
Water control and management was a matter of considerable discussion. Misperceptions of vertical integration as 'privatisation' were common despite the legislative bar on asset sales. The North Shore City Council submitted that the Bill should provide for further and better consultation on the issue of water and wastewater management, whilst the Waitakere submission made reference to the possibility of a water ombudsman.
Commerce
Minister of Consumer Affairs Heather Roy briefed the Committee. The three focus points of the Ministry are finding the correct regulatory balance between consumer protection and calculated risk, complying with the Weights and Measurements Act, and increasing the provision of consumer protection information. A "one law, one door" review of all outdated consumer legislation is also underway, in light of the need to harmonise and simplify consumer rights and avenues of redress.
Education and Science
Secretary of Education Karen Sewell and Group Manager Mary Chamberlain briefed the Committee on consultation in the education sector regarding the proposed public release of selected school information.
Health
The Committee heard submissions on reforms within alcohol regulation to deal with Foetal Alcohol Spectrum Disorder.
Justice and Electoral
The Committee heard submissions on the Sale and Supply of Liquor and Liquor Enforcement Bill from Christchurch Police Area Commander Derek Erasmus. I n a widely publicised submission Erasmus advocated a "one way door policy", and greater regulation of bar operating hours to combat the problem of public drunkenness in Christchurch.
Law and Order
The Committee heard further submissions from individuals on the Corrections (Contract Management of Prisons) Amendment Bill.
Maori Affairs
Minister of Justice Simon Power outlined to the Committee that the Government was now considering joining the United Nations Declaration on the Rights of Indigenous Peoples. Notable areas of concern currently being investigated are articles 19, 32, 26, and 28.
Social Services
The Committee heard submissions on the Social Assistance (Payment of NZ Super and Veterans Pension Overseas) Bill.
Transport and Industrial Relations
The Committee heard submissions on the Land Transport (Enforcement Powers) Amendment Bill and the Vehicle Confiscation and Seizure Bill, both of which deal with illegal street racing. Submissions focussed on noise levels, the increase of maximum fines, compulsory insurance and the role of alcohol as a contributing factor.
This week, we bring you a new segment of Watching Brief summarising important speeches on law and policy made in the last few weeks.
Chris Finlayson gives Apirana Ngata Memorial Lecture
On 14 July Attorney-General and Minister of Treaty Negotiations Chris Finlayson gave the Apirana Ngata Memorial Lecture, on the topic of Treaty settlements. The speech is notable for its frank admission of Treaty breaches by the Crown. In particular, Finlayson stated that Tuhoe's involvement in the Ureweras was gradually diminished by the Crown by deliberately undermining the District Native Reserve Act as soon as it was passed and later repealing it in 1921.
Finlayson also said, "I believe that if New Zealanders were properly appraised of the issues [between Māori and the Crown historically], they would understand why people behave the way they do, why there is such distrust, why when we talk about restoration of the honour of the Crown we're not talking weasel words but we are talking about something that is very important indeed."
He also expressed his view that the Treaty settlement process is ongoing, requiring the Crown to continue its partnership with iwi after a settlement has been executed. "We're in the era of co-management or co-governance", he said.
Reform of Criminal Justice System
Having sketched out the justice sector reforms undertaken by the current Government to date, Justice Minister Simon Power last week considered the issue of delays in the justice system, and posed the question: "who is the justice system for?"
Characterising the justice system as archaic, clunky, and slow, Power noted that "court waiting times have increased to unacceptable levels." He also criticised the "excessively complex and outdated legislative framework" under which courts operate, and found that both minor trials and late guilty pleas were wasting the courts' time. Furthermore, the Minister said, "there is an over-reliance on onerous paper-based processes and an under utilisation of modern technology" and the alienation of victims from court processes. The Ministry of Justice, he said, estimates that there are 14,000 unnecessary court appearances each year.
The response from the Justice Ministry and Law Commission has been a set of proposals designed to streamline the justice system, including:
- requiring inter-party discussions to try to resolve issues prior to trial;
- requiring the defence to identify issues prior to trial;
- raising the jury trial threshold;
- improving the jury trial location process (ie which court);
- clarifying the rules for proceeding in the absence of the defendant; and possibly
- introducing legislation to enable the video-links in court.
Further matters addressed by the Minister included the review of legal aid, a focus on preventative measures for crime, a consideration of alcohol's impact on crime, family violence, the protection of children, sexual violence and the reform of provocation in homicide cases.
The text of the speech can be found here.
Reverse Sensitivity - Stop the Complaints!
Increasing urban sprawl and intensification of development in New Zealand raises its own set of problems for many of the country's existing infrastructure providers, manufacturers, farmers, and industrial operations - particularly where those existing activities are variously noisy, smelly, in operation 24 hours per day - or a combination of all three.
Of particular concern is the encroachment of residential development nearby to these existing activities. This too often gives rise to "reverse sensitivity" which has been helpfully defined as:
"The legal vulnerability of an established activity to complaint from a new land use. It arises when an established use is causing adverse environmental impact to nearby land, and a new, benign activity is proposed for the land. The "sensitivity" is this: if the new use is permitted, the established use may be required to restrict its operations or mitigate its effects so as not to adversely affect the new activity." [Affco New Zealand v Napier City Council].
Too often, local authorities are content to allow for, or simply lax in managing, such development which comes at the risk of constraining infrastructure and industry through council's inattention to or lack of a willingness to impose appropriate controls on new activities in their district plans.
To some extent, private law remedies have developed to address this issue, principally through so-called "No Complaints" covenants which are registered against titles and, as the name suggests, prevent an individual who purchases a property near to an existing noisy or smelly activity from complaining against the effects of that activity. The legality of No Complaints Covenants (which act to curb a person's right to participate in public planning processes) was upheld by the High Court in South Pacific Tyres N.Z. Limited v Powerland (NZ) Limited. The Court found that covenants of this type were "valid and enforceable" and that "specific performance... is warranted." This decision is welcome confirmation for many existing operators who have negotiated such covenants. However, these covenants do not address the underlying issue of inappropriate planning in the first instance which is requiring ports, airports, and other industry participants to expend considerable sums on challenging planning proposals simply to protect their businesses.
The Return of Section 92A
The controversial section 92A of the Copyright Act has risen from the dead once more, this time to face a working group. Originally stalled indefinitely on 23 March 2009, the amendment to the Copyright Act became the centre of a demonstration by citizens concerned about its implications for freedom of speech and due judicial process. The original amendment section allowed internet service providers ("ISPs") to uphold copyright by investigating potential breaches of copyright (such as downloading unlicensed music), and terminating internet accounts if satisfied that this had occurred. However, between public protests and the ISPs' inability to agree on a code of practice, the Government adopted a "better safe than sorry" approach and stalled the amendment.
A new document released by the Ministry of Economic Development, Section 92A Review Policy Proposal Document for Consultation outlines the Government's new suggested take on section 92A. The new process envisages three "phases": an infringement notice (able to be disputed), seeking the downloader's contact details from the Copyright Tribunal, and then involvement of the Copyright Tribunal to mediate and solve the dispute. A copy of the policy document can be found here. Submissions close on 7 August 2009.
Bill to make Matariki a Public Holiday Introduced
The Ministerial Advisory Group appointed to review the Holidays Act 2003 has now called for submissions on the Act, which must be received by 21 August 2009. Issues that the group seeks feedback on include:
- allowing one of the four weeks of annual leave entitlement to be "cashed in"
- allowing employees to transfer public holidays to another day (based on the example of observing Ramadan instead of Good Friday)
- what can be done to make sure that an employee's choice to do the things listed above are genuine
- how to deal with casual employees
- the significance of each of the public holidays
At about the same time as this call for submissions, Māori Party MP Rahui Katene has tabled the Te Rā o Matariki Bill / Matariki Day Bill which proposes to make Matariki a "Mondayised" public holiday (so that, like the Christmas and New Year holidays, if Matariki falls on a weekend the following Monday is a public holiday).
The Ministerial Advisory Group will report to Minister of Labour Kate Wilkinson and any decisions on reform to the Holidays Act will ultimately be made by the Government.
Opposition Parties to Run Own Banking Inquiry
Labour, the Green Party and the Progressive Party have launched a self-styled independent inquiry into New Zealand's banks. Labour finance spokesperson David Cunliffe has called it the equivalent of a Parliamentary Select Committee inquiry into bank profits.
The inquiry is being undertaken following the decision of the National, ACT and Māori Party members of the Finance and Expenditure Committee not to undertake an inquiry into banks, which angered the opposition parties. The opposition parties are essentially going to try and run the inquiry anyway. They have asked the Speaker to approve the use of parliamentary resources, such as a venue, to support the inquiry. Without any logistical support the inquiry could struggle to be more than an idea.
Russel Norman of the Green Party has said “We’re giving the National Government and its support parties a second chance to open the books on our major banks." The inquiry will focus on how short term interest rates are affected by the Official Cash Rate. The three opposition parties have asked Reserve Bank Governor Dr Allan Bollard to consider asking Finance Minister Bill English for approval to attend and give evidence at the inquiry.
All businesses, farmers, exporters and banks are being encouraged to make a submission here.
Folic Acid Bread is Toast (For Now)
The Government has decided to pause and have a cup of tea on the issue of the mandatory fortification of bread with folic acid. A food standard made in 2007 was about to come into force and require folic acid to be added to bread. The Government is now considering whether to delay commencement of the mandatory fortification of bread with folic acid until 31 May 2012. Pressure from an agreement with Australia to harmonise food standards and the Government's desire not to place an unnecessary cost burden on industry and limit consumer choice has caused National to re think the issue. A discussion document on the issue has been released by the New Zealand Food Safety Authority with submissions due by 12 August 2009.
Overseas Investment Process to Get Shake Up
The Government has announced a streamlining of the procedure for obtaining consent for overseas investments. The announcements take into account advice provided by a technical reference group which is working with Treasury on the review and are the first stage in a two stage process to update the overseas investment rules. The changes are intended to increase investment into New Zealand by providing simplified and more certain rules, whilst addressing public concerns relating to overseas ownership of national assets. A key focus for the Government is speeding up the time it takes to gain approval. Minister of Finance Bill English has also suggested that the strategic asset test will be removed.
The first changes will be made to the overseas investment rules and then changes will be made to the Overseas Investment Act. For a more comprehensive report, see Russell McVeagh's latest edition of the Corporate Advisory Alert, here.
Committee Appointed to Create Code of Conduct for Financial Advisers
Another step has been taken in the implementation of the new far-reaching financial advisers regime, with the Commissioner for Financial Advisers Annabel Cotton appointing the committee that will create the code of professional conduct for authorised financial advisers. This code will determine what experience or qualifications a person needs in order to become an authorised financial adviser.
The committee has not yet called for submissions. The code is expected to be drafted by early 2010, with the entire regime planned to come into force in late 2010. Details of the members can be found here.
The Ministry of Economic Development released its online eco-friendly self-assessment tool for small- to medium-sized businesses, Envirostep. Businesses can access this tool, and answer a number of questions about their operations and structure to determine a self-perceived result of how environmentally-friendly they are, and are advised to undertake this process annually to track their changes and progress. Depending on the type of business, between 33 and 119 questions are to be answered. The usefulness of Envirostep is yet to be determined, especially given the subjective nature of some of the questions which require businesses to, for example, judge whether their own measures are effective or whether they have maximised or minimised certain things.
Envirostep's results are confidential, except insofar as they will be aggregated to form a national "environmentally-friendly" business average against which individual results may be compared. Individual results will also return a recommended "action plan" for the business, so its score may be improved (through reducing operating costs, environmental impacts, and risks). As this action plan is automatically-generated from generic advice options based on the businesses' answers, the MED notes that this Envirostep is "not a definitive assessment of environmental performance". Envirostep can be found here.
Who |
What |
By when… (2009) |
ACC |
Proposed changes to high-tech imaging service provision |
17 August |
Biosecurity New Zealand |
Draft import risk analysis: Equine germplasm from Australia, Canada, the European Union and the USA |
4 September |
Draft import risk analysis: White Rhinoceros (Ceratotherium simum) from Australia |
4 September |
Commerce Commission |
Draft mergers and acquisitions guidelines: supplementary guidelines on failing firms |
6 August |
Department of Conservation |
Review of Dusky Dolphin management in Kaikoura |
31 August |
Review of Kahurangi National Park Management Plan |
4 September |
Ministry of Consumer Affairs |
Financial Advisers: draft guidelines for approved dispute resolution schemes |
31 July |
Financial Advisers: proposed reserve dispute resolution schemes |
31 July |
Ministry of Economic Development |
Copyright Act section 92A review |
7 August |
Financial Advisers: disclosure regulations |
12 August |
Ministry of Fisheries |
Review of sustainability measures and other management controls for 1 October 2009 |
7 August |
Marine protected areas for the South Island’s West Coast Te Tai o Poutini |
21 August |
New Zealand Food Safety Authority |
Fortification of bread with folic acid food standard |
12 August |
Food Standards Australia New Zealand |
Amendments to Part 3 of the FSANZ Application Handbook |
7 August |
Primary production and processing standard for seed sprouts |
26 August |
Ministry of Health |
Preventing and minimising gambling harm 2010-2016 |
21 August |
Inland Revenue Department |
Fines and penalties - income tax deductibility |
14 August |
Department of Labour |
Draft brittle roofing best practice guidelines |
7 August |
Holidays Act 2003 review |
21 August |
Maritime New Zealand |
Review of maritime qualifications and operational limits |
31 August |
Securities Commission |
Financial Advisers: Staff Paper on Regulating and Supervising Financial Advisers |
30 July |
Standards New Zealand |
Energy efficiency - installing insulation in residential buildings |
13 August |
Stability of freestanding chests of drawers, wardrobes and bookshelves/bookcases |
18 August |
Fire sprinkler systems for houses |
1 September |
Essential safety requirements for electrical equipment |
7 September |
Specific requirements for electrical safety regulatory applications |
7 September |
General rules for use of the regulatory compliance mark |
7 September |
Specific requirements for electromagnetic compatibility regulatory applications |
7 September |
Specific requirements for radio apparatus regulatory applications |
7 September |
Who |
What |
By when… (2009) |
Biosecurity New Zealand |
Review of the Undaria commercial harvest policy |
31 July |
Draft import risk analysis: Onions (Allium cepa Liliaceae) fresh bulbs for consumption from China |
31 July |
Proposed IHS amendment for fish food and fish bait from all countries |
3 August |
Review of submissions and supplementary draft RA - freshwater / marine ornamental fish, marine molluscs and crustaceans |
17 August |
Commerce Commission |
Input methodologies discussion paper and Farrier Swier final report - treatment of expenditure in cpps |
31 July |
Reset of DPP for EDBs |
31 July |
Revised draft guidelines on the cost of capital and experts’ report |
31 July |
Department of Conservation |
Implementation of the marine protected areas policy in the territorial seas of the subantarctic biogeographic region of New Zealand |
31 July |
Lichens and freshwater invertebrates |
30 September |
Ministry of Fisheries |
Development of a fisheries plan for Southern Shellfisheries |
31 July |
Proposal to review the TAC for the Coromandel scallop fishery for 2009-10 |
31 July |
Marine protected areas around the sub Antarctic Islands |
31 July |
Maori commercial aquaculture settlement |
Not yet set |
New Zealand Geographic Board |
Place name change from Wanganui to Whanganui |
17 August |
For other name change consultations click here |
17 August |
Ministry of Health |
Maternity action plan 2008–2012 |
31 July |
Inland Revenue Department |
The taxation of distributions from profit distribution plans |
7 August |
Standards New Zealand |
Fire sprinkler systems for life safety in sleeping occupancies |
7 August |
Specification for Portland and blended cements (General and special purpose); and Specification for pozzolan for use with Portland and blended cement |
12 August |
New Zealand Transit Agency |
SH20 Waterview connection |
31 July |
