Bill English's first budget outing was an orthodox and necessary response to current local and international economic conditions. The content was well signalled ahead of time and there were no particular surprises. The theme was consistent - 'more for less', with an accountant's touch of robbing Peter to pay Paul.
Gone for the time being are National's planned tax cuts and automatic government superannuation contributions. Gone too are Labour's unfunded commitments and a reprioritising of more than $2 billion in planned expenditure into 'higher quality areas'. 'In' are the sensible - and politically pragmatic - areas of health and social services, maintenance of superannuation at 65% of the average wage for the 65s and up, spending on additional police, home insulation and the national cycleway project. Significantly too, provision is made for funding an ETS scheme. Pragmatic stuff.
The increase in money for public services will be generally welcome, albeit funded by savings achieved through the baseline review. But expect the state sector unions to be nervous about English's observations that "the PS must consider how it will adapt to… smaller or no increases in future…. Considered decisions now will avoid harsher decisions later." There will continue to be bums on seats, but the expectation is that they will belong to capable public servants rather than warm bodies.
The Budget itself forecasts government deficits for the next 10 years, including a $7.7 billion deficit in this Budget and a $9.3 billion deficit in next year’s budget. Government gross debt is forecast to peak at 43% of GDP in 2016/17. Unemployment is predicted to rise to 7.5% in 2010 and 2011, with forecasts of negative growth of 0.9% in 2009 and 1.7% in 2010. This predicted rise in unemployment is met by a 73% increase to the annual budget for unemployment and emergency benefits, to a total of $1.078 billion. In addition, $21 million has been budgeted for temporary redundancy assistance.
Forecasting a decade of deficits and the need for restraint, the Government has focused on higher value spending and productivity improvements with a focus on stimulating the business environment. Removing regulatory red tape, spending more on infrastructure, and improving government administration are all on the list.
However, beyond the high sentence the detail on how this will be achieved is limited. And what is there is not new. The roading and red tape are drums that have been beaten for at least five years. Government has also been conspicuously silent on investment in enhancing skills in the workplace - long identified as a key to enhanced productivity.
Spending priorities
Net new operating spending for new priorities will be $1.45 B. This increase is considerably less than recent years, with English noting correctly that it would be "imprudent" to grow new spending at the rate of recent years. Much of the 'new' funding and initiatives will be funded by the public sector $500 million annual savings achieved from the recent baseline review.
The spending priorities announced in the budget are, once again, no surprise:
Infrastructure spending
There will be an increased investment in state funding of roads through changes to the land transport fund. Rail will also receive its share. However nothing has been said about the need for a logistics based approach to transport and clearly more will need to be done before government policy embraces a cooperative approach to the strategic investment in the transport modes
Health
Provision has been made for $750 million per annum over the next four years in VOTE Health.
This includes $70 million for up to 800 additional health professionals to meet elective surgery needs, additional money for subsidised medicines, maternity needs and capital infrastructure for hospitals
Education
$1.43 billion has been allowed new operational spending and $340 million for new capital spending provide including provision for broad band investment in schools. Less happy will be the tertiary sector and students, who will have to find more money elsewhere.
Law and Order
Perhaps the surprise of the budget, it was the additional funding for 600 more police by 2011. Half of those will be deployed in South Auckland, reflecting the Prime Minister's personal concern about the plight of local communities.
Overall the budget did what it was meant to, maintaining a difficult balancing act between the expectations of international credit rating agencies and those of a public used to a high layout on public sector activity. On the first part of the equation maintaining New Zealand's credit rating was a done deal before Mr English opened his mouth. However, public expectations are never easy to satisfy, particularly with the public service unions inclined to put jobs and social spending ahead of productivity and utility.
What English failed to exploit was the rare opportunity to make more fundamental changes to New Zealand's economic fundamentals. He will no doubt have been conditioned in this by memories of Nordmeyer's Black Budget of 1958 and Ruth Richardson's 1991 'Mother of all Budgets'. Not a legacy any finance Minister would wish on his resume.
Now we sit back and wait for the withering attack from the Opposition on the Government's spending priorities and broken tax promises.
For Watching Brief's highlight of notable changes in spending between the 2008 and 2009 budgets. please see "Show me the money"
Auckland Transition Authority Established
The reform of Auckland governance may have started as Labour's idea, but that has not stopped Phil Goff bagging the Government for the urgent passage of the Local Government (Tamaki Makaurau Reorganisation) Act 2009 to give it all effect.
Arguably, Government's recourse to yet another urgency motion to establish the Transition Agency to oversee the establishment of a single unitary authority is deserving of criticism. It is a well that National has drunk from too often in recent months.
But Goff's attack on the Government's steamroller approach was in the end only a glancing blow. The issue - at least as Goff defined it - is the undemocratic nature of the Transition Agency's mandate and powers.
This was a bad call. The assertion of a need for more consultation and renewed mandate may resonate with those already opposed to the Auckland reforms, but the public eye that opposition is heavily tainted by vested interest. The danger is that Labour will be identified with that, not with the principle. Also, those with memories of the last major local government reform in 1989 will recall the unfettered spend up and feather-bedding that some indulged themselves without the benefit of a check on future decision making such as that to be offered up by the Transition Agency. A call for more of the same will not sit well with ratepayers sick of their money being used for vanity projects and poorly integrated infrastructure development
Also off Goff's radar is the risk that necessary projects and developments go on hold. The legislative requirement that Councils continue to undertake business as usual notwithstanding, concern is already being voiced about likely delays to regionally significant projects while officials busy themselves with the transition and wait for the new Auckland Council to take care of the long-term council community plan, the regional infrastructure investment plan and the spatial plan.
Keeping that momentum will prove a significant challenge for ATA Chair, Mark Ford. Charged with developing a change management plan, integrating the existing organisations and assets into a single entity, overseeing the vertical integration of water and waste water services, and to advise on the Local Government (Auckland Council) Bill as it proceeds through the House, Ford and his colleagues will find their demonstrated skills in complex issue management taxed.
Also taxed will be their patience as Auckland's vested political interests vie to maintain the status quo and deny the National-led Government a win in Auckland before the 2011 General Election.
Marching to a different pākiri
Most disappointing about this week's hikoi over Auckland's proposed governance arrangements was not the superficiality of media analysis. It was the dilution of a legitimate question of Māori representation by the rag tag of hangers on with their own agenda.
For many the question of tino rangatiratanga and local government representation was at best incidental. There were those with an unshakeable conviction that vertical integration of water services meant privatisation, those opposed to a perceived erosion of local democracy and those just opposed.
If a greater insight into the purposes of the hikoi was to be expected from those Auckland mayors motivated enough to brave both weather and the ire of Auckland's motorists, it was not forthcoming. Only North Shore's Andrew Williams affected any real appreciation of the hikoi's purpose. For others the march was just another convenient backdrop for the assertion of parochial interest.
If Pita Sharples is disappointed at the cooption of a Māori cause by local body politicians and others, he has said nothing. After all, a crowd is a crowd and the enemy of my enemy is my friend. But the result was a lot less than what Sharples and the hikoi organisers would have wanted. The cause may have been redeemed by the prominence of banners asserting "no super-city without us," but without these the hikoi was a collection of disparate interests, few truly aligned and some, in the end, opposed.
Certainly, it was not the strong card that Sharples would like to have played with the Prime Minister. And for the PM it did not provide a basis for going to the Party to make the case for pragmatism over principle in giving Māori a guaranteed place at the super-city table.
Land Transport (Enforcement Powers) Amendment Bill
Type of Bill: Government
Member in Charge: Hon Steven Joyce
This Bill allows local authorities to create bylaws to manage "boy racers" and vehicles involved in illegal street racing to be impounded. It will also introduce demerit points for noise offences, licence breaches and registration plate offences. (Car crushing is dealt with in the Vehicle Confiscation and Seizure Bill, summarised below.)
Local Government (Auckland Council) Bill
Type of Bill: Government
Member in Charge: Hon Rodney Hide
This Bill is the second of three Bills relating to the Auckland "Super City" (the third is expected later this year). This Bill establishes the governance framework of the Auckland Council, empowers the Local Government Commission to determine the boundaries of the Local Boards their membership andprovides for the integration of Auckland’s water infrastructure.
Maori Commercial Aquaculture Claims Settlement (Regional Agreements) Amendment Bill
Type of Bill: Government
Member in Charge: Hon Phil Heatly
This Bill amends the Māori Commercial Aquaculture Claims Settlement Act 2004 to provide the Crown with an additional option for complying with its aquaculture pre-commencement space obligation.
Motor Vehicle Sales Amendment Bill
Type of Bill: Government
Member in Charge: Hon Heather Roy
This Bill amends the Motor Vehicle Sales Act 2003 to improve the regulation of the car sales industry.
Residential Tenancies Amendment Bill
Type of Bill: Government
Member in Charge: Hon Phil Heatly
This Bill amends the law governing residential tenancies. The Bill changes the processes for terminating and renewing tenancies and clarifies whether landlords or tenants are responsible for charges such as rates or electricity. It also increases the penalties in the Residential Tenancies Act and increases the jurisdiction of the Residential Tenancies Tribunal.
Vehicle Confiscation and Seizure Bill
Type of Bill: Government
Member in Charge: Hon Judith Collins
This Bill will introduce car crushing as the penalty for people who have committed three street racing related offences within four years and have received two written warnings. It will also enable Police to target illegal street racers who commit offences in another person's vehicle. Under the Bill vehicles may also be seized and sold to pay traffic fines.
Bills To Select Committees
Local Government (Auckland Council) Bill (submissions not yet called)
Patents Bill
Parliamentary Service (Continuation of Interim Meaning of Funding for Parliamentary Purposes) Bill (submissions not yet called)
Open for submissions
Bill |
Select committee |
Submissions close (2009) |
Report due (2009) |
Eden Park Trust Amendment Bill |
Government Administration |
29 May |
29 July |
Education Amendment Bill |
Education and Science |
10 June |
28 August |
Patents Bill |
Commerce |
2 July |
5 November |
Private Security Personnel and Private Investigators Bill |
Justice and Electoral |
12 June |
30 March 2010 |
Social Assistance (Payment of New Zealand Superannuation and Veterans Pension Overseas) Amendment Bill |
Social Services |
29 May |
30 September |
Student Loan Scheme (Repayment Bonus) Amendment Bill |
Education and Science |
3 June |
30 July |
Submissions not yet called
Land Transport (Driver Licensing) Amendment Bill
Local Government (Auckland Council) Bill
Marine Reserves (Consultation with Stakeholders) Amendment Bill
Methodist Church of New Zealand Trusts Bill
Parliamentary Service (Continuation of Interim Meaning of Funding for Parliamentary Purposes) Bill
Regulatory Improvement 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 |
30 June |
Corrections (Contract Management of Prisons) Amendment Bill |
Law and Order |
26 September |
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 |
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 |
Insolvency Amendment Bill |
Commerce |
28 May |
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 June |
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 |
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 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 |
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 |
Local Government (Tamaki Makaurau Reorganisation) Act 2009
Māori Trustee Amendment Act 2009
Wanganui District Council (Prohibition of Gang Insignia) Act 2009
Alcohol Advisory Council (Schedule Amendment) Order 2009
Civil Aviation Charges Amendment Regulations 2009
Civil List (Annuities) Determination 2009
Commerce (Levy on Suppliers of Regulated Goods and Services) Regulations 2009
Criminal Disclosure Act Commencement Order 2009
Criminal Proceedings (Access to Court Documents) Rules 2009
Crown Minerals (Minerals and Coal) Amendment Regulations 2009
Crown Minerals (Petroleum) Amendment Regulations 2009
Excise and Excise-equivalent Duties (Alcoholic Beverages Indexation) Amendment Order 2009
Financial Reporting Act (Henderson Group plc) Exemption Notice 2009
Fisheries (High Seas Fishing Notifications—Commission for the Conservation of Southern Bluefin Tuna) Notice 2009
Fisheries (High Seas Fishing Notifications—Commission for the Conservation of Antarctic Marine Living Resources) Notice 2009
Fisheries (High Seas Fishing Notifications—North East Atlantic Fisheries Commission) Notice 2009
Hazardous Substances and New Organisms (Organisms Prescribed as Not New Organisms) Regulations 2009
High Court (Access to Court Documents) Amendment Rules 2009
Juries Amendment Act 2008 Commencement Order 2009
Land Transport Management (Regional Fuel Tax Scheme—Auckland Region) Order Revocation Order 2009
Securities Act (AMP NZ Office Trust) Exemption Notice 2009
Securities Act (Kiwi Income Property Trust) Exemption Notice 2009
Social Security (Long-Term Residential Care) Amendment Regulations (No 2) 2009
Summary Proceedings Amendment Act (No 2) 2008 Commencement Order 2009
Summary Proceedings Amendment Regulations 2009
Takeovers Code (New Zealand Experience Limited) Exemption Notice 2009
Waste Minimisation (Calculation and Payment of Waste Disposal Levy) Regulations 2009
Select Committee Hearings
Last week's Parliamentary recess saw fewer Committee meetings than usual. Most meetings reported on below occurred the week before last.
Emissions Trading Scheme Review Committee
The Special Committee formed to consider the ETS heard its last submissions. Now that hear evidence is over, the Committee will consider the evidence presented, consider advice from departmental advisors and draft its report to the House. The next stages all take place behind closed doors.
There is no timeframe in which the Committee must deliver its report but it does acknowledge that the public wants to know its recommendations, so we expect that they will work quite quickly.
The Committee heard from the following submitters who said the following:
- Kapiti Coast District Council. The Council submitted that the Government needs to lead the ETS process strongly and not be delayed. The Council worries that the review could see greater allocations of free permits to large and industrial emitters, resulting in the transfer of the emissions burden to taxpayers rather than emitters. The Council is also concerned about the impact of the ETS on small businesses and households.
- Representatives of the Australian Commonwealth Treasury. Via video link with Canberra, the Committee heard from representatives of Australia's Treasury. The Committee discussed technical aspects of the ETS with the Treasury representatives, including the processes by which Australia was making decisions and how Australia's and New Zealand's ETSs could be inter-operable.
- Motu Economic and Public Policy Research. Motu, a consultancy, submitted on various aspects of the ETS. Motu questioned the benefit of free allocations, describing them as a transfer of wealth from taxpayers which did nothing to change the behaviour of emitters. Motu also submitted that there could be a benefit from a temporary price ceiling and that harmonisation with Australia could be achieved but that there were risks in doing so if Australia adopted a price cap but New Zealand did not.
- Windflow Technology. Windflow, a producer of wind farm technology, submitted that the ETS was a rational and cost effective response to climate change and that it should be implemented without delay. Windflow also submitted that wind-generated power could deliver all New Zealand's electricity needs, provided that there was backup generation for low wind periods.
- Air New Zealand. Representatives of Air New Zealand submitted that the company supported environmental initiatives and leadership but that the ETS was far from ideal. The ETS could introduce potentially unlimited liability for companies because there is no price cap. Air New Zealand submitted, instead, that a better option would be a carbon tax or alternatively an ETS with a price cap. The airline also submitted that it would be more efficient for the New Zealand Government to act as the single international purchaser for carbon units in international markets, rather than individual businesses. By doing so, the airline believed that more money could be retained in the country.
Finance and Expenditure Committee
The Committee heard from the Deputy Governor of the Reserve Bank, Grant Spencer, about the Bank Stability Report. Spencer told the Committee that New Zealand's financial system was stable and had been less affected by the global recession than those of many other countries. Nevertheless, New Zealand needed to improve its net savings and strengthen the national balance sheet.
Foreign Affairs, Defence and Trade Committee
The Committee reported back on the ASEAN-Australia-New Zealand Free Trade Bill. The Bill would implement the ASEAN-Australia-New Zealand Free Trade Agreement or AANZFTA. The Committee recommends to the House that the AANZFTA proceed. A full copy of the Committee's report and the Green Party minority view is available here.
The Committee also completed its review of the Convention on Cluster Munitions and has no matters to bring to the attention of the House on the Convention. The Committee supports the Minister of Disarmament bringing a Bill to the House to give effect to the Convention.
The Committee heard evidence on the Petition of Juliet Pratt and Others, which calls for the Government to prevent the use of mercury amalgam in dental treatment. The evidence received by the Committee suggested that there was no compelling evidence to cease the use of mercury amalgam in New Zealand dentistry.
Justice and Electoral Committee
The Committee heard submissions on the Sentencing (Offender Levy) Amendment Bill.
The Committee also heard submissions on the Criminal Investigations (Bodily Samples) Amendment Bill. The Bill, if passed, would allow DNA samples to be taken from every person arrested for an imprisonable offence in New Zealand. Among the submitters, the Police Association supported the expansion of DNA collection. Meanwhile, the Privacy Commissioner cautioned that expanding DNA sampling to all people arrested for imprisonable offences was too wide. Similarly, the Human Rights Commissioner felt that the Bill went too far. When introduced into Parliament, the Bill received a notice from the Attorney-General to the effect that it could breach the New Zealand Bill of Rights Act 1990.
The Committee heard submissions on the Sentencing and Parole Reform Bill (the so-called "Three Strikes" Bill). The Bill would allow for an offender convicted of a third offence to receive a life sentence with no parole for 25 years. Most submitters opposed the Bill.
Local Government and Environment Committee
The Committee heard submissions on the Resource Management (Simplifying and Streamlining) Bill. The reduction in public participation in resource management processes through the removal of the presumption in favour of notification of resource consents concerned most submitters.
Social Services Committee
The Committee heard submissions on the Children, Young Persons and their Families (Youth Courts Jurisdiction and Orders) Amendment Bill. The Committee also reported to the House on the Controller and Auditor-General's Report into the Housing New Zealand Corporation's maintenance of state housing, recommending that the House take note of the Report.
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).
Watching Brief noted the following changes in both operating and capital spending between the 2008 and 2009 fiscal years.
Auckland Council
- $9.1 million is budgeted for implementation of Auckland governance reforms for the next year.
Climate Change
- Increase in total spending from $52m to $502m.
- $471m cost over the next year to allocating New Zealand Units ("carbon credits") into the economy. Last year, the Government allocated $22.8m worth of Units. The allocation reflects the ongoing roll out of the ETS.
- $3.2m issue of New Zealand Assigned Amount Units to permanent forest sink initiative participants, up from $586,000 last year.
Conservation
- Decrease in total spending from $444m to 419m.
- Large decrease from $56.2m to $18.8m in the capital allocation for the purchase, protection and funding of natural and historical places. Change in emphasis. This Government will not, for example, be buying large tracts of land for inclusion in the Conservation estate.
Communications
- Increase in total spending from $45.2m to $314m.
- $48m new spending for rural broadband.
- $200m in new capital spending for Crown-owned broadband investment company.
- $34m for schools and broadband.
- $1.8m cut in departmental spending.
Corrections
- Increase in total funding from $1.1b to $1.46b.
- $273.8m in new capital spending, primarily for Mt Eden redevelopment, business cases for new prisons and double-bunking in five prisons and community probation.
Defence and Defence Force
- $369m spending on capital expenditure for the purchase, modification, or refurbishment of major Defence equipment, a 31% increase on last year.
- A further $677 million will be spent as capital expenditure for the New Zealand Defence Force, in accordance with the Defence Long-Term Development Plan, a 75% increase on last year.
Economic Development
- Halving of Non-Departmental capital expenditure, down from $52m to $23m. The main decreases in capital spending in New Zealand Trade and Enterprise in-market assistance in China, Japan and China, seed co-investment fund and venture investment fund.
- $35m new spending for Rugby World Cup 2011 stadium assistance to Dunedin, Christchurch, Nelson and Whangarei.
Education
- Increase in total spending from $11.2b to $11.5b.
- Core Ministry funding relatively unchanged.
- $8m extra for school transport.
- $6.5m cut in tertiary-level scholarships, eg top achiever doctoral awards.
- $76m more for early childhood subsidies.
- $28.3m cut in amount of funding for integrated schools.
- $105m extra for primary schooling.
- $58m extra for secondary schooling.
- $27.5m more for universities, polytechnics and Wananga.
Home Insulation
- A further $244 million over four years to grants for home insulation and clean heating. This brings to the total budget for this project to $323 million, allowing around 180,000 New Zealanders to access the grants.
Research, Science and Technology
- Primary Growth Partnership commits $30m research and development in the primary sector, rising to $70m in 2012/13. Investment is to be matched dollar-for-dollar by the primary sector.
- $8m per annum increase in health research funding.
- $9m per annum increase in Marsden fund.
Social Development
- Increase in spending of $1.641b, from $18.219b to $19.860b.
- Most community-based organisations and quasi-autonomous organisations eg Families Commission, Retirement Commission, Student Job Search, remain static.
- Total costs of benefits increasing by $1.469b on last year, notably $454m increase in unemployment benefits from $624m to $1.078b and a $500m increase in the cost of New Zealand Superannuation from $7.746b to $8.246b.
Transport
- $1b is being spent on new capital expenditure to the State Highway network.
- $231m is being spent on new capital expenditure on rail rolling stock and infrastructure in Wellington. This is on top of $91m budgeted for the renewal and upgrade of the Wellington rail network over the next two years.
- Additionally, the Auckland metropolitan rail network will receive $297m this year and a further $366m over the following three years for renewal, upgrade and electrification. The Waikato rail network receives $5 million.
Treaty of Waitangi Settlements
A total of $800m is being spent over the next five years in historic Treaty of Waitangi settlements, in order for National to meet its 2014 deadline. This doubles the previous five year budget for settling historic settlements.
Waste Levies Established
Last week the Governor-General in Council promulgated the Waste Minimisation (Calculation and Payment of Waste Disposal Levy) Regulations 2009. These technical regulations explain how to weigh and calculate the levy owing on various types of waste and establishes the operators of waste disposal facilities as the levy collectors. Records of the waste and levies must not be disposed of for seven years.
For a full version of the regulations, please click here.
Aquaculture's Billion Dollar Dream
The once-small aquaculture industry is truly dreaming big, aiming to triple revenue to $1 billion by 2025. New Zealand is a prime candidate for further commercial-scale aquaculture developments because of our long coastline, large economic exclusive zone and largely pollution- and pathogen-free waters.
Currently focussed on mussels, salmon and oysters, New Zealand's aquaculture future is bright, as testing results of new techniques and species could see product diversification in the years ahead. Te Ohu Kai Moana Trustee Ltd received $97 million in the recently-signed Aquaculture Deed of Settlement. The money will now be transferred to iwi aquaculture organisations. This settlement gives greater certainty to the aquaculture industry and may be an investment boon during the recession.
The Aquaculture Legislation Amendment Bill (No 2) is currently before Parliament's Primary Production Committee. The previous Labour government, with National's support, introduced the Bill not long before the election. The Bill aims to streamline and consolidate current aquaculture legislation and make clearer Parliament's intentions regarding the aquaculture consent process. Major changes include:
- Clarifying that aquaculture activities (and the consents required to undertaken them) may only occur in aquaculture management areas in operative regional coastal plans.
- Amending the Fisheries Act 1996 (to streamline the application process), the Maori Commercial Aquaculture Claims Settlement Act 2004 (in relation to aquaculture space set aside for iwi), and the Resource Management Act 1991 (to clarify when an aquaculture consent may be granted).
The Select Committee report on the Bill is due on 30 June 2009. Expect further coverage in Watching Brief in the coming months.
Auckland Agency and Select Committees
Auckland's supercity is rapidly becoming a reality with the establishment of two bodies crucial to the transition process. The first of these bodies, the Auckland Transition Agency ("ATA"), is mandated to ensure that the supercity transition period functions smoothly as the seven territorial authorities and one regional council merge into a unitary authority and a number of Local Boards. This management is broken down into six main areas:
- creating the Auckland Council and Local Boards;
- managing the changes;
- ensuring that Council responsibilities and duties continue to function (including Council Controlled Organisations' tasks);
- keeping large Auckland projects progressing;
- communication; and
- disestablishing the former Council structure once the new structure is implemented.
The Executive Chairman of the ATA is Mark Ford, who has excited the media by stepping down from his positions at Watercare and the Auckland Regional Transport Authority as a means of managing any potential/perceived conflicts of interest.
The rest of the ATA comprises Miriam Dean QC, John Law, Wayne Walden and John Waller, all of whom bring a different perspective and range of experience to the table.
Just as all local government agencies in Auckland are responsible to the ATA, the ATA in turn is responsible to the Ministers of Local Government, Finance, and Transport, the Secretary of Internal Affairs and the Auditor-General.
The second body which will play an important role in establishing the supercity is the newly-created Auckland Governance Legislation Select Committee, a special Select Committee which will scrutinise legislation submitted to it by the Government. The Committee will comprise five members from National, three from Labour, and one member from each of ACT, the Māori Party and the Green Party.
Currently only the members from National and the Māori Party are known: Jackie Blue, Simon Bridges, John Carter, Tau Henare, Nikki Kaye, and Hone Harawira. The Committee's first item of business is examining the Local Government (Auckland Council) Bill. John Carter, the Associate Minister of Local Government (outside Cabinet) will chair the Committee.
National Infrastructure Board
On Monday the Infrastructure Minister, Bill English, appointed members of a new Infrastructure Advisory Board. The Board will advise the Minister on the creation of a 20 year National Infrastructure Plan. The Plan must be completed by the end of this year. The Board will provide advice to the Infrastructure Unit of Treasury.
Dr Rod Carr, Vice Chancellor of the University of Canterbury (and former Managing Director of Jade Software and former Deputy Governor of the Reserve Bank) will chair the Infrastructure Advisory Board.. Other members of the Board are Sir Ron Carter, Lindsay Crossen, Arthur Grimes, Terence Heiler, Rob McLeod, John Ray and Alex Sundakov.
On Sunday new Labour list MP, Jacinda Ardern, hosted a Youth Jobs Summit at Parliament. The event highlighted the impact of the recession on New Zealanders under 25. In the period to 31 March 2009, unemployment for 15-19 year olds rose from 17.9% to 19.6% and unemployment for 20-24 year olds rose from 7.3% to 12% (or an additional 10,300 people under 25 without jobs).
Those presenting ideas at the Youth Jobs Summit included Phil O'Reilly, CEO of Business New Zealand, Peter Conway, the Secretary of the Council of Trade Unions and representatives of the United Kingdom's Department for Children, Schools and Families, the New Zealand Institute, the Industry Training Federation and Student Job Search.
The Summit recommended that the effect of the recession on people at the margins, including young people, needed further attention and that skills training, including the transition of people from school to training or work, needed more funding and more holistic responses in these tough times.
IPANZ New Professionals Meet the Chiefs
On Wednesday Russell McVeagh, a sponsor of IPANZ (the Institute of Public Administration), hosted 50 new public servants (and a smattering of public lawyers) for the inaugural breakfast seminar in what will be an ongoing series.
IPANZ's New Professionals group organised the event, which saw the State Services Commissioner, Iain Rennie, and the Ministry of Social Development's Chief Executive, Peter Hughes, share their thoughts about and experiences in the public sector, including their thoughts on leadership and how newer public servants can succeed in their careers. Mr Rennie and Mr Hughes also fielded questions from the assembled group.
The IPANZ New Professionals group plans to hold two more "Meet the Chiefs" seminar this year which Russell McVeagh will also host. The next seminar is on 26 August and features the Chief Executive of the Department of the Prime Minister and Cabinet, Maarten Wevers, and the Chief Executive of the Ministry of Pacific Islands Affairs, Colin Tukuitonga.
New Zealand Fish and Game Council v Attorney-General
High Court, 12 May 2009, CIV-2008-485-2020, Simon France J
In an earlier edition, Watching Brief reported on the High Country land access test case being heard in the High Court. In New Zealand Fish and Game Council v Attorney-General Simon France J clarified the nature of the Crown Pastoral Leasehold in light of property law principles. Hi Honour found that a Crown Pastoral Lease is a lease conferring exclusive possession on farmers, noting that the lease was not just for grazing rights, but also bestowed a number of responsibilities on farmers.
The decision brings clarity to an issue which surfaced when Lincoln University lecturer Dr Ann Brower argued against exclusive possession in a paper. The High Country Accord, a collective of High Country farmers, strongly refuted this conclusion based on their traditional understanding of the nature of a Crown Pastoral Lease, and Fish and Game brought the test case in the interests of increased public access for fishing and hunting.
Agriculture Minister David Carter questioned the "divisive" proceedings, saying that the case had soured the relationship between Fish and Game and landowners, to the detriment of hunters and fishermen. However the, High Country Accord Chairman Jonathan Wallis, confirmed that farmers, despite the "high emotional cost" caused by the case, are still "willing to grant [public] access, subject to safety, environmental and farm concerns."
Fish and Game has reiterated that securing public access for outdoor recreation is one of its most important tasks. A spokesman described the proceedings as a case of "Let's clear this up; ask the High Court for a declaratory judgment on it one way or the other". Fish and Game's chief executive, Bryce Johnson, has not ruled out appealing the decision.
New Era Energy Inc v Electricity Commission and Transpower New Zealand Ltd
High Court, 4 May 2009, CIV 2007 485 2774, Wild J
This case concerns the Electricity Commission's approval of Transpower's planned upgrade of power lines between Whakamaru and Otahuhu. Transpower presented a series of options to the Commission, from which the Commission chose one. New Era Energy applied for judicial review of the Commission's decision under several heads, all of which the Court rejected.
New Era Energy claimed that the Commission predetermined or was biased in making its decision because of political interference by the then Ministers of Energy and Finance. In effect it alleged that the Commission acted under the dictation of the Ministers. The Government and individual ministers emphasised the need for urgency and efficiency in any lines upgrade in documents and at meetings, and did not reappoint the Commission's chairperson when his term expired and the Minister appointed a new Commissioner who was a Transpower director (with declared conflicts of interest).
The Court held that a lay observer might have interpreted the political comments and actions as pressure on the Commission to act speedily. But the same lay observer would not, however, interpret the pressure as pointing towards one particular upgrade option. Wild J therefore found that the Government did not direct the Commission to approve a particular upgrade option.
Wild J characterises the Commission's lines upgrade approval as "a paradigm example of how decision-makers are not expected to operate in sanitised vacuums". In this case the environment was "highly politicised and pressured". This in itself was insufficient to establish predetermination or bias.
Further, the case highlights the limits of judicial review when challenging the decisions of expert bodies. Wild J prefaces his judgment with a reminder that the Electricity Commission will not be subject to a "high intensity" standard of judicial review because it is a specialist body making technical decisions. Considering grid planning assumptions, grid reliability standards and the like is not something the High Court will necessarily delve into.
Who |
What |
By when… (2009) |
Ministry of Agriculture and Forestry |
Shelf-stable spray dried egg powders or egg crystals from specified countries |
26 June |
Biosecurity New Zealand / Ministry of Agriculture and Forestry |
Segment Strategy for Vehicles and Machinery |
19 June |
Import Health Standard for Imported Vehicles and Machinery |
19 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 |
Inland Revenue Department |
Draft determination ED 0115 for Firewood Processors and Log Splitters |
14 June |
The relationship between section 113 of the TAA and the second proviso to section 20(3) of the GST Act |
14 June |
Maritime New Zealand |
Maritime Rules Part 200 – Offshore Installations - Discharges |
12 June |
PHARMAC |
Revised Funding Application Guidelines |
1 July |
Statistics New Zealand |
Electrical equipment for mines and quarries - General requirements; Distribution, control and auxiliary equipment; Substations |
17 July |
New Zealand Transit Agency |
Western Ring Route |
31 July |
Who |
What |
By when… (2009) |
Ministry of Agriculture and Forestry |
Requirements for export of live animals and germplasm |
14 June |
Biosecurity New Zealand |
Import Health Standard for Sea Containers; Reference Document for the Import Health Standard for Sea Containers |
19 June |
Department of Conservation |
Mt Aspiring National Park Draft Management Plan |
30 June |
Environmental Risk Management Authority |
Group Standards: Extension of Alternative Labelling Provisions |
5 June |
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 |
Department of Labour |
Workplace Safety - Falls |
5 June |
Reserve Bank |
Insurance (Prudential Supervision) Bill |
22 June |
Standards New Zealand |
Pedal bicycles - Safety requirements |
3 June |
Water efficient products - Rating and labelling |
4 June |
Acoustics – Road traffic noise – New and altered roads |
12 June |
Performance of electrical appliances - Air conditioners and heat pumps Part 2: Energy labelling and minimum energy performance standard (MEPS) requirements |
17 June |
Determination of the extinction propensity of cigarettes |
22 June |
Statistics New Zealand |
Draft updates to area units and definitions of urban and rural |
Unknown |
Takeovers Panel |
Buybacks Class Exemption |
12 June |
Upstream Takeovers |
12 June |
