18 June 2010

In this edition:

MATTERS OF OPINION

Goff reaps rewards points
Ministerial credit card use may have been a fillip for lazy journalism, but it was no bad thing either for a beleaguered Phil Goff. more...

A foreshore and seabed deal struck
National and the Māori Party have managed to agree on a proposal to repeal the Foreshore and Seabed Act 2004 and replace it with another specialist statute. more...

PROGRESS OF LEGISLATION

IN THE WEEK AHEAD

IN COMMITTEE

IN OTHER NEWS

 

IN CONSULTATION

A Matter Of Opinion

Goff reaps rewards points

Ministerial credit card use may have been a fillip for lazy journalism, but it was no bad thing either for a beleaguered Phil Goff.

The tail-end Charlie of public opinion polls, Goff hasn't impressed as a political strong man.  Nice, yes.  Earnest, definitely, but hardly the type to crack heads and relish doing it.  His isolated position on Labour's sparse right-wing and the corrosive effect of the reported telephone traffic between members of Labour's parliamentary team and their erstwhile leader haven't helped.  Uneasy has laid the head that wears the Crown. 

The release of documents detailing Ministers' spending peccadilloes may have been expected to make him even less comfortable not least because it is Labour, rather than the incumbent Government, that has been the main target for criticism.

For Goff, that cloud had a solid silver lining.  For the first time in his stint as leader he was able to surf the political wave instead of being swamped by it.  Faced with the need to act, he acted - and did so decisively.

Demoting former wunderkind, Shane Jones, Ratana clergyman, Mita Ririnui and the peripatetic Chris Carter, Goff may in fact have pulled off a-hat trick.  Showing muscle where muscle was needed, he didn't allow himself to be compromised by Labour's factional interests.  At the same time he began the task of putting his own stamp on the Labour's Opposition and demonstrated the degree of political opportunism essential in an aspiring PM.  Goff's hand may have been forced, but the compulsion wasn't unwelcome.  He saw the chance and took it.

He also made the most of Chris Carter's post demotion petulance.  Sending Carter on gardening leave, Goff not only marginalised a growing political liability, but also reinforced his own position as the man in charge.

This ought to be reflected in the next polls.  Whilst Labour may suffer from the untimely reminder of why they were given the boot in 2008, Goff himself should by rights do well.  The unknown in this is whether voters will put sufficient distance between Goff and his Party, or damn them both together.

For the moment, though, Goff has been emboldened and we should expect him to make more of the high ground that he has been able to take with his colleagues.  His next test will be in judging when and how to assert a leadership so painfully come by. 

A foreshore and seabed deal struck

National and the Māori Party have managed to agree on a proposal to repeal the Foreshore and Seabed Act 2004 and replace it with another specialist statute.

The proposal to place the foreshore and seabed in a form of "non-ownership" remains, but Attorney-General Chris Finlayson and Māori Party Co-Leader Pita Sharples will together create a new name to replace "public domain".  However, the roughly 12,500 private titles to the foreshore and seabed will not be affected.

Māori will be able to apply to the courts for customary title, based on a statutory test or, as always, negotiate directly with the Crown.  The statutory test for customary title will be based on the test that the Government believes the courts would have applied if the Foreshore and Seabed Act 2004 had not been enacted.  Rather than start at the Māori Land Court, claimants will go directly to the High Court, which will have the ability to use the expertise of the Māori Land Court to assist it to determine claims.

There will also be a new award of universal recognition or mana tuku iho, recognising the mana of iwi and hapu in relation to the foreshore and seabed.  It will legislate the best practice regarding iwi participation in conservation processes.  In developing this award, the Government looked at the Hauraki Gulf Marine Park Act and how it recognises tangata whenua status.

The Government's aim is to enact the new legislation before the end of this year, no doubt hoping that the issue will be off the agenda going into an election in 2011.

Another hope will be that the deal has laid enough of a foundation to rescue the Government from an ugly impasse on water allocation.

Progress Of Legislation

New Bills

Appropriation (2009/10 Supplementary Estimates) Bill
Type of Bill:  Government
Member in charge:  Hon Bill English
This Bill authorises the spending that has been incurred or committed in the 2009/2010 government financial year, including the use of imprest supply.

Appropriation (2010/11 Estimates) Bill
Type of Bill:  Government
Member in charge:  Hon Bill English
This Bill authorises the spending announced in the 2010 Budget to be incurred in the 2010/2011 government financial year.

Civil Aviation (Cape Town Convention and Other Matters) Amendment Bill
Type of Bill:  Government
Member in charge:  Hon Steven Joyce
This Bill would amend domestic legislation, including the Civil Aviation Act 1990 and the Personal Property Securities Act 1999, to enable New Zealand to accede to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, and to the associated Aircraft Protocol.  Accession to these international agreements will support an international regime to govern security interests in high-value mobile equipment. 

Commerce Commission (International Co-operation, and Fees) Bill
Type of Bill:  Government
Member in charge:  Hon Simon Power
This Bill was introduced before the 2008 election and has only just received its first reading.  The Bill deals with the operation of the Commerce Commission.  The primary objective is to facilitate co-operation between the Commission and other overseas competition and consumer regulators (particularly the Australian Competition and Consumer Commission).  To do this, the Bill amends the Commerce Act 1986, the Credit Contracts and Consumer Finance Act 2003, and the Fair Trading Act 1986 to allow the Commission to use its existing statutory powers to provide investigative assistance to overseas regulators and to provide, subject to conditions, compulsorily acquired information to them. 

Food Bill
Type of Bill: Government
Member in charge:  Hon Kate Wilkinson
This Bill is the result of the total review of the existing Food Act 1981 that began in 2003.  The Bill introduces substantial reforms to the regulatory regime for the safety and suitability of food, and replaces both the Food Act 1981 and the Food Hygiene Regulations 1974.  The Bill imposes a primary duty on all persons who trade in food to ensure that food is safe and suitable, and proposes a new framework for the management of food businesses in New Zealand. 

Policing (Involvement in Local Authority Elections) Amendment Bill
Type of Bill:  Hon Judith Collins
Member in charge:  Government
This Bill would remove restrictions in the Policing Act 2008 that prevent Police staff standing as candidates in local authority elections.  The Bill aims to ensure that Police employees are not treated any differently to other state servants who are not subject to similar restrictions.  The restrictions were inserted into the Policing Bill in 2008 following submissions that, since local bodies have bylaw making powers, there would be a constitutional anomaly if law enforcers could also be law makers.

Rugby World Cup 2011 (Empowering) Bill
Type of Bill:  Government
Member in charge:  Hon Murray McCully
This Bill will create a new Act and a new authority, the Rugby World Cup Authority.  This new Authority, and in some cases the Minister for the Rugby World Cup, will be able to fast-track consents and regulatory approvals for temporary activities and facilities related to the 2011 Rugby World Cup.  Amongst other things, the Bill creates a special Rugby World Cup liquor licensing scheme.

Southland District Council (Stewart Island/Rakiura Visitor Levy) Empowering Bill
Type of Bill:  Local
Member in charge:  Eric Roy
This Bill would impose a levy on visitors to Stewart Island/Rakiura to meet the infrastructure costs attributable to those visitors. 

Tariff (New Zealand-Hong Kong, China Closer Economic Partnership Agreement) Amendment Bill
Type of Bill:  Government
Member in charge:  Hon Tim Groser
This Bill amends the Tariff of New Zealand under the Tariff Act 1988 as part of the implementation of the bilateral trade agreement, agreed in Hong Kong on 29 March 2010. 

Taxation (Budget Measures) Bill
Type of Bill:  Government
Member in charge:  Hon Bill English

This Bill was enacted under urgency to give effect to the tax cuts announced with the Budget.  This Bill was divided into six new Bills, all of which have been assented.  See Acts from the Taxation (Budget Measures) Bill for a summary of the main changes. 

Bills To Select Committee

Commerce Commission (International Co-operation, and Fees) Bill

 

Open for submissions

Bill

Select Committee

Submissions close (2010)

Report due (2010)

Commerce Commission (International Co-operation, and Fees) Bill

Commerce

30 June

25 November

Copyright (Infringing File Sharing) Amendment Bill

Commerce

17 June

22 October

Courts and Criminal Matters Bill

Law and Order

9 July

19 November

Electoral (Finance Reform and Advance Voting) Amendment Bill

Electoral Legislation

17 June

6 November

Local Government Act 2002 Amendment Bill

Local Government and Environment

18 June

4 November

New Zealand Public Health and Disability Amendment Bill

Health

18 June

19 November

Television New Zealand Amendment Bill

Commerce

17 July

29 October

 

Submissions not yet called

Land Transport (Driver Licensing) Amendment Bill
Marine Reserves (Consultation with Stakeholders) Amendment Bill

Submissions closed

Bill

Select Committee

Report due (2010)

Arms Amendment Bill (No 3)

Law and Order

26 November

Child and Family Protection Bill

Justice and Electoral

11 August

Christ's College (Canterbury) Amendment Bill

Government Administration

17 September

Education (Freedom of Association) Amendment Bill

Education and Science

30 September

Electoral (Disqualification of Convicted Prisoners) Amendment Bill

Law and Order

21 October

Electoral Referendum Bill

Electoral Legislation

22 October

Employment Relations (Rest Breaks and Meal Breaks) Amendment Bill

Transport and Industrial Relations

29 October

Employment Relations (Workers' Secret Ballot for Strikes) Amendment Bill

Transport and Industrial Relations

21 October

Fair Trading (Soliciting on Behalf of Charities) Amendment Bill

Commerce

9 December

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

Local Government and Environment

29 October

Limitation Bill

Justice and Electoral

5 July

Marine Reserves Bill

Local Government and Environment

30 December

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

Local Government and Environment

17 September

Sale and Supply of Liquor and Liquor Enforcement Bill

Justice and Electoral

30 June

Sale of Liquor (Objections to Applications) Amendment Bill

Social Services

30 September

Search and Surveillance Bill

Justice and Electoral

29 October

Securities Trustees and Statutory Supervisors Bill

Commerce

24 September

Social Assistance (Future Focus) Bill

Social Services

30 July

Sustainable Biofuel Bill

Local Government and Environment

29 July

Trans-Tasman Proceedings Bill

Justice and Electoral

29 July

 

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.

Antarctica (Environmental Protection: Liability Annex) Amendment Bill
Aquaculture Legislation Amendment Bill (No 2)
Children, Young Persons, and Their Families Amendment Bill (No 6)
Courts (Remote Participation) Bill (Report of the Justice and Electoral Committee)
Dog Control Amendment Bill (No 2)
Electricity Industry Bill (Report of the Finance and Expenditure Committee)
Electricity (Continuance of Supply) Amendment Bill
Financial Service Providers (Pre-Implementation Adjustments) Bill (Report of the Commerce Committee)
Human Assisted Reproductive Technology (Storage) Amendment Bill (Report of the Health Committee)
Inquiries Bill
Insurance (Prudential Supervision) Bill (Report of the Finance and Expenditure Select Committee)
Māori Trustee and Māori Development Amendment Bill
Motor Vehicle Sales Amendment Bill
Ngāti Apa (North Island) Claims Settlement Bill
Oaths Modernisation Bill
Patent Attorneys Bill
Patents Bill
Prisoners' and Victims' Claims (Expiry and Application Dates) Amendment Bill (Report of the Justice and Electoral Committee)
Privacy (Cross-border Information) Amendment Bill
Private Security Personnel and Private Investigators Bill
Public Health Bill
Radio New Zealand Amendment Bill
Rail Network Bill
Regulatory Responsibility Bill
Reserves and Other Lands Disposal Bill
Statutes Amendment Bill
Student Loan Scheme (Exemptions and Miscellaneous Provisions) Amendment Bill
Tariff (Malaysia Free Trade Agreement) Amendment Bill (Report of the Foreign Affairs, Defence and Trade Committee)
Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Bill
Therapeutic Products and Medicines Bill
Trade (Safeguard Measures) Bill
Trade Marks (International Treaties and Enforcement) Amendment Bill
Trustee Amendment Bill
Whanganui Iwi (Wanganui (Kaitoke) Prison and Northern Part of Wanganui Forest) On-account Settlement Bill  

Bills Awaiting Third Reading

Animal Welfare Amendment Bill
Cultural Property (Protection in Armed Conflict) Bill
Gambling Amendment Bill (No 2)
Infrastructure Bill
Residential Tenancies Amendment Bill (see also SOPs 110 and 120)

Acts Assented

Acts divided from the Local Government (Auckland Law Reform Bill)
(note that SOPs 136-139 were passed, amending this Bill from its second reading copy):

These Acts result from the third and final Bill needed to implement the new Auckland Council.

Acts divided from the Taxation (Budget Measures) Bill
(note that SOP 124 amended this Bill from its second reading copy)

This Bill was enacted under urgency to give effect to the tax cuts announced with the Budget.  This Bill was divided into six Acts:

The main tax changes implemented are as follows:

Carter Observatory Act Repeal Act 2010
This Act repeals the Carter Observatory Act 1938, which established an astronomical observatory in Wellington, and dissolves the Board established to manage the Carter Observatory.  The Act transfers the assets of the Board, including the Carter Observatory, to the Wellington City Council.

Electoral (Administration) Amendment Act 2010
This Act amalgamates the functions of the current Chief Electoral Officer and Electoral Commission into a new Electoral Commission, which will be fully functional from 1 October 2010.   The new Electoral Commission will be an independent Crown entity, with statutorily independent functions, overseeing the administration of the electoral system.  (Following the 2011 general election the functions of the Chief Registrar of Electors will also be amalgamated into the new Electoral Commission.)

Sentencing and Parole Reform Act 2010 ["Three Srikes"]
(note that SOP 123 amended this Bill from its second reading copy)

This Act creates the new "three strikes" sentencing regime, restricting access to parole for the worst, repeat, violent offenders and restraining judges' discretion when sentencing these offenders.

Regulations

Biosecurity (Costs) Regulations 2010
Biosecurity (Ruminant Protein) Amendment Regulations 2010
Biosecurity (System Entry Levy) Order 2010
Climate Change (Fishing Allocation Plan) Order 2010
Cluster Munitions Prohibition Act Commencement Order 2010
Customs and Excise Amendment Regulations 2010
Deposit Takers (Craigs Investment Partners Cash Management Trust Limited) Exemption Notice 2010
Domestic Violence (General) Amendment Regulations 2010
Double Tax Agreements (Anguilla) Order 2010
Double Tax Agreements (British Virgin Islands) Order 2010
Double Tax Agreements (Cayman Islands) Order 2010
Double Tax Agreements (Cook Islands) Order 2010
Double Tax Agreements (Dominica) Order 2010
Double Tax Agreements (Gibraltar) Order 2010
Double Tax Agreements (Guernsey) Order 2010
Double Tax Agreements (Isle of Man) Order 2010
Double Tax Agreements (Jersey) Order 2010
Double Tax Agreements (St. Christopher and Nevis) Order 2010
Double Tax Agreements (St. Vincent and the Grenadines) Order 2010
Double Tax Agreements (The Bahamas) Order 2010
Double Tax Agreements (Turks and Caicos Islands) Order 2010
Family Courts Amendment Rules (No 2) 2010
Financial Reporting Act (American International Assurance Company (Bermuda) Limited) Exemption Notice 2010
Financial Reporting Act (Kiwi Capital Management Limited) Exemption Notice 2010
Health Practitioners (Quality Assurance Activities—Southern DHB) Notice 2010
Immigration Amendment Regulations (No 2) 2010
Land Transport (Driver Licensing and Driver Testing Fees) Amendment Regulations 2010
Lawyers and Conveyancers Act (Lawyers: Practice Rules) Amendment Regulations 2010
Ombudsmen Act (Schedule 1—Learning State Limited) Order 2010
Parental Leave and Employment Protection (Rate of Parental Leave Payment) Regulations 2010
Public Finance (Learning State Limited) Order 2010
Rates Rebate (Specified Amounts) Amendment Order 2010
Securities Act (American International Assurance Company (Bermuda) Limited) Exemption Amendment Notice 2010
Securities Act (Crown Retail Deposit Guarantee Schemes) Exemption Notice 2010
Securities Act (Hawthorn Water Limited) Exemption Notice 2010
Securities Act (NZX Limited) Exemption Notice 2010
Sentencing Amendment Regulations 2010
Social Security (Long-term Residential Care) Amendment Regulations (No 2) 2010
Takeovers Code (Pike River Coal Limited) Exemption Notice 2010
Waste Minimisation (Calculation and Payment of Waste Disposal Levy) Amendment Regulations 201
Wildlife Order 2010

In The Week Ahead

With the key Auckland Governance legislation now passed, this week the Government will focus on various first readings, such as the Tariff (New Zealand-Hong Kong, China Closer Economic Partnership Agreement) Amendment Bill and the Policing (Involvement in Local Authority Elections) Amendment Bill.

Wednesday should be a Members' Day with the first readings of the Electricity (Renewable Preference) Amendment Bill, the Local Electoral (Māori Representation) Amendment Bill and the Consumer Guarantees Amendment Bill.

In Committee

Commerce Committee

The Committee has been hearing from Simon Power on Vote Commerce, of which much of the discussion focused on the financial service providers legislation. 

Education and Science Committee

The Committee has been hearing submissions on Roger Douglas' Member's Bill, the Education (Freedom of Association) Amendment Bill.  Submitters included students, student groups and associations, and the New Zealand Public Service Association.  Arguments fell on both sides of the divide: promoting freedom of association versus the danger of a decline in student services if membership does not continue to be compulsory.  The University of Canterbury Students' Association submitted that its mandate to represent the student body will be lost if the Bill is introduced, and that such organisations are important to give students a voice at many levels of decision-making in universities.

In the past few weeks, the Committee has also been hearing from Anne Tolley on Vote Education, Vote Education Review Office and from Wayne Mapp on Vote Research Science and Technology.

Finance and Expenditure Committee

The Committee has been hearing submissions on Supplementary Order Paper 121 to the Electricity Industry Bill.  The SOP provides for resource consents associated with the power stations to be transferred from Meridian to Genesis and mechanisms for managing the transfer of agreements with third parties from Meridian to Genesis. Mangers from Genesis and Meridian were largely supportive of the SOP, while other submitters were concerned about that the swap could cause wholesale electricity prices to rise, and that some costs would be borne by farmers. 

The Committee has also been hearing from Simon Power on Vote State-Owned Enterprises, and from Bill English on Vote Finance.  The Committee also heard from the Reserve Bank on the latest Monetary Policy Statement.  Allan Bollard said that recovery was continuing internationally, that overall economic activity was forecast as 3.5% growth this year and 3.5% next year, and that the policy target was to keep medium-term inflation in the 1-3% zone.

Foreign Affairs, Defence and Trade Committee

The Committee has been hearing submissions on its briefing to the Institute of International Affairs, and submissions on Chris Carter's petition.  The Committee has also been hearing from Maurice Williamson on Vote Customs.

Government Administration Committee

The Committee has been hearing from Lockwood Smith on Vote Parliamentary Service (the Speaker of the House is the Minister in Charge of the Parliamentary Service for the purposes of the Public Finance Act).  Smith explained that over the next year the focus will go into three key areas: the information and communication technology area, the financial management area, and human resource development. 

Health Committee

The Committee has been hearing submissions on its inquiries on how to improve completion rates of childhood immunisation, and improving New Zealand's environment to support innovation through clinical trials.  It also heard a petition on behalf of the Working Party on Suicide, a briefing on the adverse reaction process, and a report from the Auditor-General on the effectiveness of arrangements to check the standard of services provided by rest homes.

Justice and Electoral Committee

The Committee has been hearing submissions on the Trans-Tasman Proceedings Bill.  Murray Earl's submissions raised concerns about the Bill's effect on family law and its interface with family law legislation.  The Committee has also been hearing from Simon Power on Vote Justice over the past few weeks.

Local Government and Environment Committee

The Committee has been hearing a briefing on the report from the Parliamentary Commissioner for the Environment on the report "How clean is New Zealand?"  Jan Wright spoke to the Report, recommending there be legislation to mandate regular reporting on the state of the environment.  The Committee also heard from the Office of the Auditor-General, speaking on its report "Local authorities: planning to meet the forecast demand for drinking water".  The Committee has also been hearing from Rodney Hide on Vote Local Government. 

Māori Affairs Committee

The Committee has continued hearing submissions on its inquiry into the consequences of tobacco use for Māori.  It also heard submissions on its inquiry into the operation of the Māori Community Development Act, which focused on the need for self-determination of Māori, by Māori.   

Social Services Committee

The Committee has been hearing submissions on the Social Services (Future Focus) Bill.  Geoffrey Palmer on behalf of the Legislation Advisory Committee recommended that the discretion the Bill allows on the part of those making decisions is too wide, and that more transparency and clarity are required.  The submissions from the National Council of Women of New Zealand and the Wellington Women's Refuge emphasised the discriminatory nature of the Bill, while the Human Rights Commission submitted that the Committee should have serious consideration to the human rights issues within the Bill.  Other concerns raised were the impact of the proposed changes on children, and the Bill's punitive response, which marginalises beneficiaries rather than attaching value to parenting.  The Committee has also been hearing from Phil Heatley and Maurice Williamson on Vote Housing, and from John Carter on Vote Senior Citizens.

Transport and Industrial Relations Committee

The Committee has been hearing submissions on its briefing on truck crashes, which focused on initiatives to increase safety and decrease crashes.  Over the past few weeks, the Committee has also been hearing from Dr Jonathan Coleman on Vote Immigration, and submissions on the Employment Relations (Workers' Secret Ballot for Strikes) Amendment Bill. 

In Other News

Consumer law reform discussion paper released

Minister of Consumer Affairs Heather Roy has today released a discussion document which outlines the Government's proposal for a potentially widespread reform of multiple consumer law statutes.  The "Consumer Law Reform" discussion document is the result of an investigation into the effectiveness of New Zealand's consumer law by the Ministry of Consumer Affairs, which has been under way for over a year.  This law reform project has been driven by the ACT Party Minister Heather Roy, who has been promoting it under the phrase "One Law - One Door".  "One Law" aims for a principles-based approach to consumer law which simplifies, modernises and consolidates the existing law, which is the focus of the discussion paper.  "One Door" aims to have one place for consumers to go to seek advice and assistance when consumer transactions go awry.

The discussion document indicates that the review will include the following legislation:

The Sale of Goods Act 1908 is noticeably absent from this review.  Along with the Carriage of Goods Act 1979, the Sale of Goods Act falls within the Commerce portfolio, rather than Heather Roy's Consumer Affairs portfolio.  However, Roy had earlier indicated that these Acts might also be included in the review.  They will be reviewed only in respect of their relationship with the Lay-by Sales Act and the Auctioneers Act.

At this stage, the discussion document outlines three possible options for reform.  All three proposals contemplate an enhanced Fair Trading Act that incorporates provisions from the Door to Door Sales Act, the Lay-by Sales Act, the Unsolicited Goods and Services Act.  They also propose updating the current legislation to ensure that it is compliant with 'best practice' consumer law, particularly given the recent consumer law reforms in Australia.  The proposals differ over whether to also incorporate the Consumer Guarantees Act and the Weights and Measures Act into the consolidated "One Law", or to leave them (collectively or individually) as stand-alone legislation. 

The Ministry of Consumer Affairs review of the Credit Contracts and Consumer Finance Act 2003 will continue as a separate project.

Submissions are due by Friday 30 July 2010.  The full discussion paper can be found here.

Environmental Protection Authority to be enhanced

Fulfilling another election promise, Minister for the Environment Nick Smith has announced that the Environmental Protection Authority (EPA) established in 2009 will now break away from its current position within the Ministry for the Environment.  From 2011, the EPA will take on a number of new roles, signifying the greater centralisation of environmental regulation in New Zealand. 

The Minister has outlined that the EPA will be a Crown entity, responsible to the Minister for the Environment.  As a processing, technical, and decision-making body, the EPA will sit alongside the Ministry in a policy role, with the Parliamentary Commissioner for the Environment acting as a watchdog.

Key functions and bodies to be absorbed into the EPA include:

The EPA will by operational from 1 July 2011, provided that a bill can be introduced and enacted before then. Interested parties will be able to participate in the Select Committee process which is expected to occur later this year.

Search and Surveillance Bill will be consulted on again

The Justice and Electoral Committee plans to make an interim report to the House on the much maligned Search and Surveillance Bill in the coming months.  It is likely to release an amended version of the Bill and further explanatory material.  The Committee will then give those who submitted on the Bill an opportunity to provide further written submissions.

State Owned Enterprise performance guidelines released

The State Owned Enterprises Minister Simon Power has released a new set of SOE financial performance measures, as part of the Government's commitment to improving state sector accountability and transparency.  The measures are designed to cover shareholder returns, profitability and efficiency, as well as leverage and solvency.  SOE's will be expected to include the measures in their Statements of Corporate Intent for the 2010/11 period and onward.  They can be found here.

Key local authorities sign up for leaky homes compensation scheme

Auckland City, Rodney, North Shore, Waitakere, Manukau, Wellington, and Christchurch Councils have all agreed to support the Government's proposed leaky homes compensation package.  Approximately 90% of all active leaky homes claims are from homes situated within these local authorities' boundaries.

Local authorities had until 31 May 2010 to opt into the proposed scheme, which provides for the central government and participating local authorities to each fund up to 25% of a participating homeowner's repair costs, with the central government underwriting any further funding.  In exchange, a participating homeowner is precluded from pursuing legal recourse against either local authorities or the Crown in relation to their claim. Homeowners who already have a weather tight claim with the Department of Building and Housing will still be able to apply.

Work on the operational detail of the scheme will now commence, with Building and Construction Minister Maurice Williamson indicating that the new package should be up and running by early 2011.

Greater transparency and a slightly looser belt for State sector remuneration

In a series of announcements State Services Minister Tony Ryall has outlined changes to be made to the administration of state sector remuneration.  These changes include:

Salaries of chief executives from District Health Boards, ACC, and the NZQA (among others) will now be published annually in the State Services Commission annual report, instead of only in each entity's individual annual report.  This initiative aims to improve accountability for public expenditure, and will enable comparisons to be made over time.  Reporting will be on the same basis as set out in the Companies Act 1993.

Improvements to the economic climate and the Government fiscal situation have lead Cabinet to agree to revise public sector pay guidelines.  The pay guidelines are far reaching, applying to effectively the entire State sector.  Any changes to pay must have a direct link with the improvement of frontline services and productivity, as well as being financially sustainable for the next three to five years.  These changes to pay guidelines aim to balance the link between employment conditions and service delivery with the need for fiscal restraint.

The Minister has also acknowledged that welcome restraint is being shown in the administration of the public sector wage bill.  Recently released Labour Cost Index figures demonstrate that for five consecutive quarters, private sector salaries have on the whole increased more than those in the public sector.  The Minister also singled out recent salary and wage settlements in the health sector and Police force as successful demonstrations of a fiscally responsible approach to wage and salary negotiations.

Financial advisers Bill reported back

The Financial Service Providers (Pre-Implementation Adjustments) Bill has been reported back from the Commerce Select Committee.  This latest version of the Bill makes significant new changes to both the Financial Advisers Act 2008 and the Financial Service Providers (Registration and Dispute Resolution) Act 2008, ahead of the staggered implementation of the Acts from 1 December 2010 to 1 July 2011.  Changes to the Financial Advisers Act 2008 include:

A copy of the Commerce Select Committee's report can be found here.

As a separate matter, Financial Services Complaints Limited and the Insurance & Savings Ombudsman are the first dispute resolution schemes to be approved under the Financial Service Providers (Registration and Dispute Resolution) Act 2008.  The provider of the Government's reserve dispute resolution scheme is yet to be announced.

Further public service mergers announced

State Services Minister Tony Ryall has announced that Archives New Zealand and the National Library will merge with the Department of Internal Affairs.  This merger will occur through a Bill yet to be introduced to Parliament.  Under this Bill the statutory role and independence of both the Chief Archivist and National Librarian will be preserved.  Labour MP Grant Robertson has been raising questions about whether the constitutionally important role of Chief Archivist should have to report to a department chief executive.  The Government has also announced the allocation of $12.6 million over the next four years to develop and implement a full industrial-strength digital archive.

This merger will be in addition to the Ministry of Science and Innovation to be created out of agencies in the science, research and technology sectors, and the amalgamation of the New Zealand Food Safety Authority into the Ministry of Agriculture and Forestry.  These mergers were announced in March.  These changes are aimed at improving the performance of small government agencies, and could yield somewhere in the vicinity of $25 million in administrative savings by 2014.

Financial Markets Authority establishment board appointed

An Establishment Board has been appointed to establish the new Financial Markets Authority (FMA).  The Board will set the FMA's strategic direction, develop a statement of intent and design an organisational structure, reporting to Minister of Commerce Simon Power.

The nine members of the Board are Simon Botherway (chairman), Shelley Cave, Andrew Harmos, Neville Harris, Frank McLaughlin, Paula Rebstock, Bruce Sheppard, Scott St John, and Mariëtte van Ryn.

The FMA will be an independent Crown entity and will consolidate the powers and functions of the Securities Commission, some of the functions of the Registrar of Companies and the Government Actuary, and some of the regulatory roles of NZX.  A Bill to establish the new FMA is likely to be introduced in August and passed before the end of the year.

In Consultation

New

Who

What

By when… (2010)

Biosecurity New Zealand

Draft import health standard for importation of Zea mays seeds for sowing

18 June

Draft import health standard for processed Tilapia and Catfish for human consumption from specified countries

5 July

Ministry of Consumer Affairs

Consumer law reform discussion paper

30 July

Ministry of Economic Development

Industry Participation Code to be made under the Electricity Industry Bill (once enacted)

25 June

Trans-Tasman mobile roaming

2 July

Ministry of Education

Deaf education discussion

28 June

Electricity Commission

Dispatchable demand regime

18 June

Upper North Island dynamic reactive support investment proposal

21 June

Lower South Island reliability transmission investment proposal

30 June

Ministry for the Environment

Review of national air quality standards (Resource Management (National Environmental Standards Relating to Certain Air Pollutants, Dioxins and other Toxics) Regulations 2004)

9 July

Ministry of Fisheries

Draft National Fisheries Plan for Deepwater and Middle-Depth Fisheries

18 June

Application of Burkhart Fisheries Ltd for exemption from quota aggregation limits

18 June

Proposed cost recovered fisheries services and levies for 2010/11

21 June

Application of Sea-Right Investments Ltd for exemption from quota aggregation limits

23 June

Development of a set of indicators to be used to monitor fisheries sector outcomes outlined in Fisheries 2030

2 July

Proposed mātaitai reserve on the coastline near Ross, on the west coast of the South Island

9 July

Draft National Fisheries Plan for Highly Migratory Species

15 July

Proposed harvest management measures to support the introduction of KBB3G and KBB4G to the quote management system on 1 October 2010

23 July

New Zealand Food Safety Authority

Review of the Food (Tutin in Honey) Standard 2008

30 July

Proposals to amend the New Zealand (Maximum Residue Limits of Agricultural Compounds) Food Standards 2010

4 August

Inland Revenue Department

Implementation of flow-through tax treatment for LAQCs and QCs

5 July

Making tax easier discussion document

23 July

Department of Labour

Regulations For Noise-Induced Hearing Loss

18 June

Methyl Bromide Workplace Exposure Standards

30 June

Securities Commission

Draft guidance note: application of Securities Markets Act 1988 to commodities futures contracts

30 June

Standards New Zealand

Specification for Portland and blended cements

19 July

Stand-alone power systems

20 July

Safety of information technology equipment

23 July

Radiofrequency fields

9 August

 

Current

Who

What

By when… (2010)

Department of Conservation

Use of the Henderson Valley for education and recreation activities

14 June

Basking shark protection

16 June

Kauri National Park proposal

tbc

Draft Guidelines for Aircraft Access for Canterbury Conservancy

Ongoing

Ministry of Fisheries

Customary regulations for the Southern Titi/Muttonbird Islands

16 June

Review of Challenger Area Commercial Fishing Regulation 11

16 June

Management options for basking sharks to give effect to New Zealand’s international obligations

16 June

Return of kina to the sea

16 June

Food Standards Australia New Zealand

Nutrient reference values (NRVs) in the Australia New Zealand Food Standards Code

30 July

Inland Revenue Department

Acceptance of late objections to assessments or decisions under section 92(2) of the Child Support Act 1991

30 June

Economic depreciation rate for equestrian arenas

30 June

Maritime New Zealand

Maritime operator safety system

2 July

Standards New Zealand

Approval and test specification - General requirements for electrical equipment

9 July

Safety requirements for deep fat fryers, frying pans and similar appliances

9 July

Safety requirements for vacuum cleaners and water-suction cleaning appliances

9 July

Safety requirements for refrigerating appliances, ice-cream appliances and ice-makers

9 July

Safety requirements for appliances for skin exposure to ultraviolet and infrared radiation

9 July

Safety requirements for commercial refrigerating appliances with an incorporated or remote refrigerant condensing unit or compressor

9 July

Safety requirements for battery chargers

9 July

Safety requirements for room heaters

9 July

Safety requirements for instantaneous water heaters

9 July

Safety requirements for pumps

9 July

Safety of information technology equipment

23 July

 

This publication is included in Russell McVeagh's website : www.russellmcveagh.com

This publication is intended only to provide a summary of the subject covered. It does not purport to be comprehensive or to provide legal advice. No person should act in reliance on any statement contained in this publication without first obtaining specific professional advice. If you require any advice or further information on the subject matter of this newsletter, please contact the partner/solicitor in the firm who normally advises you, or alternatively contact:

TIM CLARKE - Partner
Ph 04 819 7532
tim.clarke@russellmcveagh.com

DOUG BAILEY - Consultant
Ph 04 819 7572
doug.bailey@russellmcveagh.com

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