4 August 2010

In this edition:

IN POLITICS

Sic transit Gloria...or maybe not so much
Chris Carter's expulsion from Labour’s caucus may be welcomed by those who have had enough of the political damage done by his perceived hubris, but the saga in which he has taken a leading role is far from over. more...

Abhorring a vacuum
With disaffected voters having few ports of call, Winston Peters seems likely to have a natural constituency that is assured to take him over the 5% threshold and a return to the Parliamentary fold. more...

PROGRESS OF LEGISLATION

IN THE WEEK AHEAD

IN COMMITTEE

 

IN OTHER NEWS

IN CONSULTATION

In Politics

Sic transit Gloria...or maybe not so much

Chris Carter's expulsion from Labour’s caucus may be welcomed by those who have had enough of the political damage done by his perceived hubris, but the saga in which he has taken a leading role is far from over.

To begin with, his forecast dismissal from the Labour Party is anything but a done deal.  Whilst his senior colleagues' wishes may be understandable, natural justice, the intervention of legal casuist Deborah Manning and the realities of Labour's committee politics will dictate a more circumspect approach.  As a result, Carter is likely to remain a Party member and, thus, a Party problem for some time to come.

Also, whatever public absolution may have been hoped for by casting the member for Te Atatu into the outer darkness, he remains a symptom of the problem, rather than the problem itself.  The Labour caucus continues with its internal tensions unresolved and former Rogernome Goff simply does not have the pull with the Party’s left wing to galvanise his team behind him.

Even those on Labour’s right harbour concerns.  These will have been reinforced first by Goff's failure to deal decisively with Carter at the outset and second by his eventual over-reaching when dropping dark hints about Carter’s future as an Independent.  Now any censure that falls short of Carter's complete ouster from the Party will amount, in fact as well as in perception, to another snub for Goff, reinforcing public perceptions of division and discontent.

Similarly corrosive for Labour is speculation over the extent to which Carter was merely a cat's-paw of former patroness, Helen Clark.  Those with any exposure to Clark's political management will know that she is too sophisticated a player to be associated with so ham-fisted a putsch.  But with his side-bar attack on George Hawkins – not exactly Mr Popularity with Labour’s ancien régime - Carter managed to place Clark’s fingerprints at the scene, reminding pundits that there continue to be many in Labour’s caucus whose eyes still turn to New York, rather than Mt Roskill.

Of course, it would also have to be asked what is to be gained by attempting to destabilise Goff, if that indeed was the purpose of Carter's communiqué to the Press Gallery.  It's not as if there's an obvious or, more correctly, willing successor. Probables David Cunliffe and Clayton Cosgrove are unlikely to command the numbers, and there is a stark generational gap between them and up and comers Robertson, Hipkins, Hughes and Ardhern.

Perversely, then, all Carter may have succeeded in doing is to bolster Goff's leadership, at least for the time being.  This could hardly be claimed to have been the plan all along, but by forcing Labour's caucus to unite behind Goff, Carter may have forestalled any serious examination of the Labour leadership until the New Year.  At that point, ambition and whatever hope of an election win may be suggested by Winston Peters’ return to the game could prompt a reassessment, but given the public fallout that would ensure, it is more likely to result in Goff being allowed to play out his hand.

In the meantime Carter's extended leave with pay and any ambivalence about his future with Labour will simply leave things unresolved, and an ongoing reminder to the public that for Labour "there's trouble at mill."

Abhorring a vacuum

With disaffected voters having few ports of call, Winston Peters seems likely to have a natural constituency that is assured to take him over the 5% threshold and a return to the Parliamentary fold.

His choice of Orewa for his address to the Grey Power's area AGM in May was as good an indication as any of his intentions, as well as his policy plank.  Special deals for Māori, the brown elite, the pefidy of the foreshore and seabed legislation, and nationhood may not be novel positions to take to the electorate, but they still find on receptive ears. 

It should be remembered too that Peters does not need national acclaim, he only needs 5% and he is going about getting it with his usual economy of effort.

Whether Key will find reason to enter an accommodation with Peters should he make the cut remains to be seen.  The media has suggested that in Key's mind a deal is there to be done.  However it is difficult to see how Key can resile credibly from his unequivocal rejection of the possibility in 2008, particularly as, by his own assessment "nothing has changed" since then.

Progress Of Legislation

New Bills

Parliamentary Service Amendment Bill
Type of Bill: Government
Member in charge: Hon Gerry Brownlee

This Bill deals with the financing of political parties by inserting a new meaning of the term "funding entitlements for parliamentary purposes" into the Parliamentary Service Act 2000.  The new provisions to be inserted in that Act will make it clear what forms of communication expenditure constitute "electioneering", which political parties and MPs cannot receive funding from the Parliamentary Service budget.

This Bill is partly motivated by the Auditor-General's 2006 report into advertising expenditure incurred by the Parliamentary Service in the three months before the 2005 General Election, which included spending on Labour's "pledge cards".  The Bill has also been developed in the context of the current changes being made to electoral finance legislation, in the Electoral (Finance Reform and Advance Voting) Amendment Bill.

Member's Bills defeated

Credit Reforms (Responsible Lending) Bill
Rodney District Council Bill
Public Works (Offer Back of and Compensation for Acquired Land) Amendment Bill

Bills to Select Committee

Consumer Guarantees Amendment Bill
Food Bill
Governor-General Bill
New Zealand Productivity Commission Bill
Ngati Tuwharetoa, Raukawa, and Te Arawa River Iwi Waikato River Bill

 

Open for submissions

Bill

Select Committee

Submissions close (2010)

Report due (2010)

Consumer Guarantees Amendment Bill

Commerce

9 September

21 January 2011

Education Amendment Bill (No 2)

Education and Science

6 August

1 November

Food Bill

Primary Production

2 September

22 January 2011

Governor-General Bill

Government Administration

13 August

14 September

New Zealand Productivity Commission Bill

Commerce

9 September

22 November

Ngati Tuwharetoa, Raukawa, and Te Arawa River Iwi Waikato River Bill

Maori Affairs

6 August

31 August

 

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

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

Commerce

25 November

Copyright (Infringing File Sharing) Amendment Bill

Commerce

22 October

Courts and Criminal Matters Bill

Law and Order

19 November

Education (Freedom of Association) Amendment Bill

Education and Science

30 September

Electoral (Finance Reform and Advance Voting) Amendment Bill

Electoral Legislation

6 November

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

Hamilton City Council (Parana Park) Land Vesting Bill

Local Government and Environment

16 December

Local Government Act 2002 Amendment Bill

Local Government and Environment

4 November

Marine Reserves Bill

Local Government and Environment

30 December

New Zealand Public Health and Disability Amendment Bill

Health

19 November

Rugby World Cup 2011 (Empowering) Bill

Government Administration

22 December

Sale and Supply of Liquor and Liquor Enforcement Bill

Justice and Electoral

1 October

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

Southland District Council (Stewart Island/Rakiura Visitor Levy) Empowering Bill

Local Government and Environment

16 December

Sustainable Biofuel Bill

Local Government and Environment

29 March 2011

Television New Zealand Amendment Bill

Commerce

29 October

 

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) (note that the Government plans to replace this Bill with a new Bill, to be introduced later in 2010)
Children, Young Persons, and Their Families Amendment Bill (No 6)
Dog Control Amendment Bill (No 2)
Electricity (Continuance of Supply) Amendment Bill
Human Assisted Reproductive Technology (Storage) Amendment Bill
Inquiries Bill
Limitation Bill
Māori Trustee and Māori Development Amendment Bill
Oaths Modernisation Bill
Patent Attorneys Bill
Patents Bill
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
Social Assistance (Future Focus) Bill (Report of the Social Services Committee)
Student Loan Scheme (Exemptions and Miscellaneous Provisions) Amendment Bill
Tariff (New Zealand-Hong Kong, China Closer Economic Partnership Agreement) Amendment Bill (Report of the Foreign Affairs, Defence and Trade Committee)
Therapeutic Products and Medicines Bill
Trade (Safeguard Measures) Bill
Trade Marks (International Treaties and Enforcement) Amendment Bill
Trans-Tasman Proceedings Bill (Report of the Justice and Electoral Committee)
Trustee Amendment Bill
Whanganui Iwi (Wanganui (Kaitoke) Prison and Northern Part of Wanganui Forest) On-account Settlement Bill  

Bills Awaiting Third Reading

Appropriation (2010/11 Estimates) Bill
Cultural Property (Protection in Armed Conflict) Bill
Electricity Industry Bill (see also SOP 121)
Gambling Amendment Bill (No 2)
Infrastructure Bill (see also SOPs 115, 151, 152)
Insurance (Prudential Supervision) Bill
Motor Vehicle Sales Amendment Bill
Ngāti Apa (North Island) Claims Settlement Bill
Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Bill (see also SOP 105)

Acts Assented

Residential Tenancies Amendment Act 2010
This Act makes a number of amendments to the law governing the relationship between landlords and tenants of residential rental properties, and inserts a new part into the Residential Tenancies Act 1986 dealing with boarding houses.  Note that SOPs 110 and 120 amended the Bill that became to this Act.

Regulations

Climate Change (Emissions Rulings: Fees and Charges) Regulations 2010
Court of Appeal (Criminal) Amendment Rules 2010
Customs and Excise Amendment Regulations (No 2) 2010
Deposit Takers (Funding Conduits) Exemption Amendment Notice 2010
Local Government (Auckland Transitional Provisions) Act Transitional Regulations 2010
Misuse of Drugs (Classification of Ketamine) Order Commencement Order 2010
Misuse of Drugs (Presumption of Supply—Ketamine) Order Commencement Order 2010
Misuse of Drugs Amendment Regulations 2010
Ombudsmen Act (Schedule 1—Health Benefits Limited) Order 2010
Parliamentary Annuities Determination 2010
Parliamentary Travel, Accommodation, Attendance, and Communications Services Determination (No 2) 2010
Public Finance (Health Benefits Limited) Order 2010
Securities Act (ACE Insurance Limited) Exemption Notice 2010
Securities Act (AMP NZ Office Limited) Exemption Notice 2010
Securities Act (CMP Canterbury Limited) Exemption Notice 2010
Securities Act (HSBC Investments New Zealand Limited) Exemption Notice 2010
Securities Act (Jacks Point Development) Exemption Notice 2010
Sentencing Amendment Regulations (No 2) 2010
Takeovers Code (A2 Corporation Limited) Exemption Amendment Notice 2010
Takeovers Code (Open Country Dairy Limited) Exemption Notice 2010

In The Week Ahead

This week the House sits again before a recess next week.  It will finish passing the Budget by having the third reading of the Appropriation (2010/11 Estimates) Bill.

Wednesday will be a Members’ Day, likely to see the following Bills debated:

In Committee

Commerce Committee

The Committee has been hearing submissions on the Copyright (Infringing File Sharing) Amendment Bill, which is National's attempt to resolve the controversial section 92A issues.  The Committee heard submissions in support and in opposition of the Bill, and various submitters raised seemingly unforeseen issues with the Bill.  The Committee has also heard submissions on the Securities Trustees and Statutory Supervisors Bill.

Education and Science Committee

The Committee has been hearing submissions on the Education (Freedom of Association) Amendment Bill.  Many tertiary students gave submissions opposing this Bill, which would prevent student unions from having compulsory membership, because of the impact it would have on student services.  Some submitters supported the Bill, raising freedom of association arguments.

The Committee has also been hearing the Petition of Lynn Pillay and the Petition of Hans Kriek.

Finance and Expenditure Committee

The Committee received a briefing from the Inland Revenue Department on the Making Tax Easier project.

Government Administration Committee

The Committee has been hearing submission on the Rugby World Cup 2011 (Empowering) Bill.  The Alcohol Advisory Council raised concerns with the Bill's provisions to allow for special liquor licensing for the Rugby World Cup, however the Hospitality Association of New Zealand submitted that these provisions are necessary.  The New Zealand Fire Service raised concerns fire safety under fast tracked permits for venues, and Local Government New Zealand expressed general support for the Bill to be enacted as a safety net measure that could be used if needed.

Health Committee

The Committee heard more submissions in relation to its inquiry into improving New Zealand's environment to support innovation through clinical trials.  It also heard from BUPA Care Services in relation to the Auditor-General's Report on the effectiveness of arrangements to check the standards of services provided by rest homes.  It also heard submissions in relation to the New Zealand Public Health and Disability Amendment Bill.

Law and Order Committee

The Committee heard more submissions on Paul Quinn's Electoral (Disqualification of Convicted Prisoners) Amendment Bill.  Most submissions opposed the Bill, citing human rights implications and that it would not deter crime or help rehabilitate offenders.  The Committee also heard from the Office of the Auditor-General on its assessment of how New Zealand Police is implementing the recommendations of the 2007 Royal Commission of Inquiry.

Local Government and Environment Select Committee

The Committee has been hearing submissions on the Local Government Act 2002 Amendment Bill, with submitters addressing the variety of amendments that the Bill makes.  Tourism Industry Association warned against local government losing focus on tourism promotion. Some submitters expressed concern at what they see as the "privatisation" of water infrastructure.  The Public Service Association and some local authorities opposed the Bill.

In Other News

Land and Water Forum to report back this month

Hot on the heels of the introduction of the amended Emissions Trading Scheme, National has turned its attention to the next major environmental challenge; the regulation of New Zealand's fresh water resources.  New Zealand has an abundance of fresh water, however the demand for fresh water in some regions is increasingly leading to use of water in excess of the region's capacity. 

For this reason, the Environment Minister Nick Smith has identified improving the management of New Zealand's fresh water resources as "one of the Government's key environmental policies".   National faces the task of creating a solution that balances environmental responsibility with unlocking the economic opportunities that New Zealand's freshwater reserves hold.

National has asked the Land and Water Forum, a multi-industry group tasked with recommending reform of fresh water management, to establish a national policy on fresh water management.  The release of its report has been delayed until 31 August 2010.   However, despite the lack of an agreed national policy, National has gone ahead with significant reform in the area of fresh water management.

Canterbury's regional council has been removed as part of the Environment Canterbury (Temporary Commissioners and Improved Water Management) Act 2010, being replaced with seven commissioners.  Their task is to reform the much rebuked management of fresh water in the Canterbury region.

National also established iwi co-management of the Waikato River under the Waikato-Tainui Raupatu Claims (Waikato River) Settlement Act 2010.

National is also promoting the metering and reporting of water usage for all "significant water takes" and is expected to shortly introduce the Resource Management (Water Measurement and Reporting and Water Takes) Regulations.

Further, National has pushed ahead with the management of water in the Auckland region, appointing Watercare Services as the organisation tasked with managing the water supply and wastewater services for the Auckland Council. 

This activity has proceeded without a national policy statement or national approach to water management in New Zealand.  They are, however, the first steps in an attempt by National to shift the paradigm of water usage in New Zealand to one that takes account of the scarcity and value of the resource.  The challenge will be to make sure that short-term reforms do not prevent the implementation of a workable national solution to water management.

Report on biofuels

The Parliamentary Commissioner for the Environment, Dr Jan Wright, has issued a report entitled "Some biofuels are better than others: Thinking strategically about biofuels".  Dr Wright has made four key findings:

Accordingly, Dr Wright concludes that for biofuels to play a significant role in New Zealand's energy future then we should move toward developing drop-in biodiesel made from wood.  She states "Some biofuels are good, some are bad, and some are probably downright ugly.  The challenge that lies before us is to develop and commercialise biofuels in a practicable way that will significantly reduce our greenhouse gas emissions, improve our energy security, and genuinely make our country cleaner and greener."

A full copy of the Report is available here.

Aquaculture reform update

More features of the reform to the regulation of aquaculture have been announced.  The Government will seek to override the Tasman and Waikato regional coastal plans by amending them through an Aquaculture Reform Bill to be introduced to the House later this year.  This Bill will replace the existing Aquaculture Legislation Amendment Bill (No 2), which was introduced by the previous Government.  The Aquaculture Unit within the Ministry of Fisheries will also work with other regional councils to improve sustainable aquaculture development opportunities, but the Government does not intend to amend other regional coastal plans by legislation.

Decisions have also been made on how to transition existing marine farms and applications into the new regulatory regime.  More information on the aquaculture reforms can be found here.

That's 'Right' Honourable to you, Sunshine

Her Majesty this week gave approval for those appointed to the offices of Governor-General, Prime Minister, Speaker and Chief Justice to be granted the title "The Right Honourable" for life.

Historically, the title was assumed by those senior members of Parliament or judiciary appointed to the UK Privy Council.  The title lapsed in 2000 when then Prime Minister Helen Clark decided not to recommend any further Privy Council appointments, a position adopted by her successor in 2008.

In announcing the decision, Prime Minister John Key said that the Queen wished to recognise the service of the most senior members of the judiciary and executive and that she had extended the use of the honorific accordingly. 

The grant of the title will not be retrospective and will apply to current and future Governors-General, Prime Ministers, Speakers and Chief Justices only.

Draft energy strategies for consultation

Minister of Energy and Resources Gerry Brownlee has released a draft New Zealand Energy Strategy (NZES) and a draft New Zealand Energy Efficiency and Conservation Strategy (NZEECS).  The draft strategies retain the goal of 90 per cent of electricity being from renewable energy by 2025, provided that this does not affect security of supply.

The four priority areas for energy policy are:

These goals will see the Government focus on (amongst other things):

Submissions are due by 2 September.  More information, including copies of the draft strategies, can be found here

Code for Financial Advisers advanced

The Code Committee for Financial Advisers, established under the Financial Advisers Act 2008, has formally submitted a Code of Conduct for Authorised Financial Advisers.  The Code will now be considered by the Commissioner for Financial Advisers, David Mayhew.  He can recommend to the Minister of Commerce that the Code be promulgated, or can send it back to the Committee for further development.  Mayhew must assess the Code against criteria in the Act, and is expected to make a decision by mid August.

Land Transfer Act reform ahead

The Law Commission has released its Report into the Land Transfer Act 1952, the legislation that governs the sale and purchase of land, using the Torrens system of registration of title.  The Report includes a draft Bill that could be enacted to replace the current Act.  The proposed Bill would modernise the Act to reflect the current use of electronic conveyancing of land, and would also make technical improvements to the legislation.

Cabinet will formally respond to the recommendations within four months.  It is likely that any replacement Act would not be passed until the next parliamentary term.

The full Law Commission Report can be found here.

Securities Commission concludes room for improvement in corporate governance

Amidst the current review of the Securities Act, the Securities Commission has released a report of it latest review of corporate governance.  The review examined 68 issuers and concludes that many issuers need to improve their disclosures regarding:

The full report is available here.

In Consultation

New

Who

What

By when… (2010)

Department of Labour

Consultation on New Guide to Safety with Chainsaws

27 August

Draft Guidelines for the Safety of Staff from the Threat of Robbery

27 August

Wood Dust Exposure Standards

30 September

Electricity Commission

Transmission Pricing Review Stage 2

31 August

Inland Revenue Department

Remedial Amendments to Inland Revenue Acts

3 September

Local authority rates apportionments on property transactions where the rates have been paid beyond settlement or are in arrears

3 September

Ministry of Economic Development

New Zealand Energy Strategies

2 September

Ministry for the Environment

Consultation on update to Stationary Energy and Industrial Processes and Liquid Fossil Fuel Regulations

6 August

Standards New Zealand

Gas fired water heaters for hot water supply and/or central heating Part 2: Minimum energy performance standards for gas water heaters

28 September

Performance of household electrical appliances (Parts 1 and 2)

28 September

Mechanical Jointing fittings for use with crosslinked polyethylene for pressure applications (Parts 1, 2, 3, 4 and 5)

10 September

Risk financing guidelines

27 August

 

Current

Who

What

By when… (2010)

Biosecurity New Zealand

Draft import health standard on the issuance of import health standard for bovine semen and embryos

2 August

Further consultation on the American Foulbrood National Pest Management Strategy

6 August

Draft import health standard for zoo lizards and zoo lizard hatching eggs from Australia

11 August

Draft import health standard for sand tiger sharks (Carcharias taurus) from all countries

13 August

Commerce Commission

Draft decisions on input methodologies: electricity distribution services

6 August

Draft decisions on input methodologies: gas pipeline services

6 August

Input methodologies and individual price-quality path for Transpower

6 August

Department of Conservation

Kauri National Park proposal

tbc

Draft Guidelines for Aircraft Access for Canterbury Conservancy

Ongoing

Department of Building and Housing

Dam Safety Review

14 August

Electricity Commission

Draft 2010 Statement of Opportunities

6 August

Part D of the Electricity Governance Rules 2003 - Metering

20 August

Ministry of Fisheries

2010 Review of Sustainability Measures, and other Management Controls for Selected Deepwater Stocks

4 August

Amended Application for Kura Te Au / Tory Channel Mataitai Reserve

20 August

Review of sustainability measures for all Kahawai stocks

13 August

New Zealand Food Safety Authority

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

4 August

Food Standards Australia New Zealand

Food derived from Insect-resistant & Herbicide-tolerant Cotton Line GHB119

16 August

Inland Revenue Department

Interest repayments required as a result of the early repayment of a financial arrangement - deductibility

13 August

Dispute resolution process

20 August

Marine Fender Systems - Draft Depreciation Determination

31 August

Privacy Commissioner

Proposed amendment to the Credit Reporting Privacy Code 2004

13 August

Reserve Bank of New Zealand

Corporate governance for registered banks

27 August

Securities Commission

Review of Securities Law - replacing the Securities Act 1978 and the Securities Markets Act 1988

20 August

Standards New Zealand

Structural design actions

3 August

Radiofrequency fields

9 August

Underground fire hydrants

16 August

Technical management programs for medical devices

19 August

Electrical hazards on metallic pipelines

20 August

Safe working on or near low-voltage electrical installations and equipment

23 August

Radiocommunications equipment used in the UHF citizen band radio service

10 September

Guards and patrols

16 September

Treasury

Regulatory Responsibility Bill

27 August

 

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