In the News
Three Waters Reform Programme update
The Government has continued to push ahead with its proposed full-scale regulatory and structural reform of water service delivery across Aotearoa New Zealand.
Earlier in the year the Water Services Entities Bill was introduced to Parliament – a standalone Bill that would establish four publicly owned water services entities to provide water services in place of local authorities. The Finance and Expenditure Committee are expected to report back on the Bill on 11 November 2022 with recommended amendments to the Bill following consideration of public submissions. Once the Water Services Entities Bill is enacted, the four water services entities will be established and will begin the preparatory arrangements for full operation of the entities from 1 July 2024.
The Water Services Entities Bill is just one component of a comprehensive package to reform water services that are currently being provided by local authorities. The Bill will be followed by two pieces of legislation (expected to be introduced shortly):
- A further bill providing for:
- additional, detailed implementation arrangements for the entities and service delivery, including provisions relating to the transfer of assets, liabilities and other matters from local authorities to the water services entities;
- specific powers, functions, and responsibilities of the new water services entities;
- pricing and charging arrangements;
- changes to Treaty settlement legislation that are required to ensure that settlement obligations are carried forward from territorial authorities to the new water services entities; and
- detailed changes to the Local Government Act 2002, the Water Services Act 2021, and other legislation to transfer service delivery arrangements to the new water services entities.
- An economic regulation and consumer protection bill relating to the new water services system. It is yet to be publicly announced which form of economic regulation the water services entities would be subject to, for example, information disclosure, price-quality paths and / or input methodologies.
Changes to immigration settings
Prior to the full reopening of New Zealand's border on 31 July 2022, the Government announced its Immigration Rebalance Strategy (Strategy), which aims to support high-skilled migrant labour. Additional changes to complement the Strategy have also been announced and implemented.
Seven pathways to residency have been created or reopened. All pathways are now open for applications or expressions of interest:
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Straight to Residence (STRV) and Work to Residence (WTRV) visas provide a streamlined, priority pathway to residency for high-skilled migrants who can fill skills shortage roles. From late September, such migrants have been able to apply either directly for residence under the STRV, or with 24 months' work experience under the WTRV.
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A new Highly Paid Resident pathway provides residency for migrants earning at least twice the median wage and with 24 months acceptable work in New Zealand.
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A new Active Investor Plus residency (replacing Investor 1 and 2 categories) grants residency for minimum active investments of $5 million and minimum passive investments of $15 million.
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A resumption of the Skilled Migrant Category visa (SMC), which provides a pathway to residency for migrants based on a points system that considers employment, work experience, income and qualifications.
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A resumption of Parent Resident visas, which will provide 2,500 places for parents and grandparents of migrants, to be selected through approval or a ballot system.
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A resumption of the Samoan and Pacific Access Categories visas, which provide pathways for up to 5,900 people to achieve residency through a ballot process.
The Government has also made the below changes to immigration settings:
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Introducing an Accredited Employers Work Visa, which allows certain employers to become accredited and thereby streamline the visa application process for migrants they recruit.
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Increasing the Recognised Seasonal Employer Scheme cap by 3,000 places; enabling 19,000 workers from the Pacific to enter New Zealand annually in the horticulture and wine sector.
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Introducing sector-specific agreements to help industries, such as tourism, transition from reliance on low-wage, low-skill labour.
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Granting visa extensions for 20,000 visa holders for six months or two years with open work conditions.
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Doubling the number of places available under the Refugee Family Support Category from 300 to 600 per year.
Further, from December, partners of temporary migrant workers will be granted visitor visas, with the option to apply for work visas even where they work less than the 30 hours a week usually required.
The Ministry of Business, Innovation and Employment (MBIE) is consulting on changes to the SMC, which aim to give more certainty to migrants and their families; improve processing times; and reduce labour market risks. The proposal involves a new, simplified points system, with points based on qualifications, New Zealand professional registrations, income and skilled work. It will also modify skilled work classifications. Consultation on these changes is open until 18 November 2022.
Process for assessing and reassessing hazardous substances amended
The Hazardous Substances and New Organisms (Hazardous Substances Assessments) Amendment Act (the Amendment Act) received Royal Assent on 31 October 2022. The Amendment Act modifies the Environmental Protection Authority's (the EPA) processes for the assessment and reassessment of hazardous substances, and what information can be utilised for such assessments. In particular, the Amendment Act:
- Enables the EPA to recognise overseas bodies as "international regulators" (provided they meet certain criteria, and by notice in the Gazette) and to then use information from international regulators to:
- carry out a rapid assessment of hazardous substances;
- update hazard classifications of substances and corresponding controls; and
- make a decision to temporarily restrict particular uses of hazardous substances if certain criteria are met.
- Changes the reassessment process by:
- requiring the EPA to develop a workplan that sets the priorities for reassessments of hazardous substances that are requested by the chief executive of the EPA;
- allowing the EPA to engage in more targeted consultation during modified reassessments; and
- temporarily restricting, via notice in the Gazette, the use of hazardous substances in specified circumstances or places, or by specified classes of persons, (though the EPA must not prohibit the use of the hazardous substance generally).
- Clarifies that the Minister can call-in decisions relating to reassessments and assessments.
Conditional moratorium on seabed mining
The Government has backed a conditional moratorium on deep sea mining in international waters, which includes the seabed beyond exclusive economic zones and extended continental shelves. The Government's stance arises out of the International Seabed Authority's current review of regulations surrounding deep sea mining in international waters.
The Authority is charged with drafting new regulations for deep sea mining by July 2023, but the Minister of Foreign Affairs and Trade, Hon Nanaia Mahuta, has noted that progress has been slow and that she is concerned that a regulatory framework will be unable to be agreed in time. In the meantime, the Authority has granted permission for a Canadian deep sea mining company, Nauru Ocean Resources Inc, to engage in a trial extracting 3600 tonnes of metal-rich nodules from international waters between Mexico and Kiribati.
The Minister noted that deep sea mining affects areas that "contai[n] some of the least understood eco-systems on the planet", and that "[d]eep sea mining could cause irreversible changes to this environment and have a significant impact on its biodiversity". Consequently, New Zealand has joined a number of countries across the Pacific in calling for the conditional moratorium, until regulations which address environmental concerns, and are supported by "robust science", are agreed. However, the Minister was clear that the Government respects the sovereign rights of other countries, and that the conditional moratorium would not include areas within national jurisdictions.
The Government will continue to participate in the negotiations relating to the drafting of the new deep sea mining regulations.
Te Pae Tata | the Interim New Zealand Health Plan
The Government has released Te Pae Tata | the Interim New Zealand Health Plan jointly developed by Te Whatu Ora – Health New Zealand and Te Aka Whai Ora – the Māori Health Authority.
In Te Pae Tata, Te Whatu Ora and Te Aka Whai Ora respond to the Interim Government Policy Statement on Health 2022-2024 (Statement) for the reformed health system. In order to meet the five key shifts set out in the Statement1, the plan proposes six priority areas and actions:
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improving equity and outcomes by placing whānau at the centre of the health system (with a focus on community health, maternity, those living with cancer, chronic health conditions, and those with mental distress);
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embedding Te Tiriti o Waitangi across the health sector;
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developing an inclusive health workforce;
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keeping people well in their communities;
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developing greater use of digital services to provide more care in homes and communities; and
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establishing Te Whatu Ora and Te Aka Whai Ora, in support of a financially sustainable health system.
The plan is referred to as 'interim' as it is aligned to the two-year budget for health reform that was set out in the 2022 Budget. From 2024, the health budget will move to a three-year cycle and a full plan will be put into place.
Social Sector Commissioning 2022-2028 Action Plan
On 28 October 2022, the Government launched the Social Sector Commissioning Action Plan 2022-2028. The six-year Action Plan aims to change the way social supports and services are commissioned to better support people, families and whanāu. It was developed in response to public feedback asking for focus on people and their lived experiences, and trusted relationships (including between organisations and Māori-Crown partnerships).
The Action Plan proposes a relational approach to commissioning. Its vision is for the social sector to ground its work in people; give practical effect to Te Tiriti; enter relationships around common outcomes and agree on how to deliver those outcomes; commit to shared accountability; and agree on clear roles across the commissioning process. It aims to place trusted relationships at the centre of commissioning by:
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using lived experiences to inform support and outcomes;
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encouraging new ways to fund and co-fund services;
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empowering self-determination on how to engage with services to support aspirations; and
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emphasising policy, process, or practice changes to support a high trust approach, including through common goals, guidelines on how to navigate local service provision, and sustainable funding models.
The Action Plan outlines 9 'action steps' for 2022-2024:
- Learn how a relational approach can be applied to commissioning.
- Provide the social sector with guidance on how to work in a relational way.
- Change commissioning system rules and processes to enable the sector to work together to provide social services.
- Support reform programmes to work smarter and in a joined-up way to implement relational approaches to commissioning.
- Government agencies and Crown entities make operational changes to deliver the government-endorsed ‘commitments’ to commissioning practice. Government agencies will implement the government-endorsed commitments by mid-2024.
- Government agencies and Crown entities outline the actions and approach they will take to implement a relational approach to commissioning.
- Create a governance group that represents people who are involved in or impacted by the social sector, so that they guide, promote, and protect the system transformation.
- Build a team who are responsible for implementing the 2022–2028 Social Sector Commissioning Action Plan.
- Monitor and learn how social sector commissioning is impacting individuals, families and whānau.
Proposed amendments to the Sale and Supply of Alcohol Act 2012
The Sale and Supply of Alcohol Act 2012 (the Act) aims to improve community input into local alcohol licencing decisions. To enable this, the Act permits local councils to develop a local alcohol policy (LAP) to limit the sale of alcohol in communities. LAPs are a set of decisions about the sale and supply of alcohol in a geographical area to:
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limit the location of licences in particular areas or near certain facilities (ie, schools or churches);
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limit the density of licences in a particular area;
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impose conditions on groups of licences (ie, "one-way door" condition); and/or
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restrict the opening hours of a licenced facility.
Once drafted, the council undertakes public consultation to understand the community view on the proposed LAP. Following public feedback, the council will notify a provisional LAP which can be appealed by anyone who submitted on the draft policy.
In the past, however, the appeals process has resulted in significant delays, and, in some circumstances, councils have lacked the resources to engage in protracted legal disputes, resulting in compromises needing to be made. Consequently, the Sale and Supply of Alcohol (Harm Minimisation) Bill ("the Bill") seeks to abolish appeals on LAPs in order to provide local control over alcohol regulation. The Bill also seeks to ban alcohol sponsorship and advertising of all streamed and live sports as well as sponsorship at all sporting venues.