Watching Brief – May 2018

Matter of opinion

Productivity Commission – Throwing Down a Political Gauntlet

The New Zealand Productivity Commission (Commission) released its draft report on transitioning to a low emissions economy at the end of last month. The draft report is a challenge to New Zealand's political class. Arguably, the most significant take out is this: political consensus is a critical condition precedent in order for any action to be effective.

Commissioned by the previous National Government, the Commission was tasked with identifying options for transitioning to a lower emissions future, while at the same time trying to grow income and well-being.  At the end of last year, the current Government asked the Commission to take account of its intention to set more ambitious targets for 2050.

The draft report is comprehensive, running at 469 pages, and it conclusions are stark. It highlights the requirement for both a fundamental reduction in high emission sources and improving energy efficiency across production and consumption, outlining a number of key recommendations. The focus is on emission pricing, innovation and investment, and laws and institutions. It sets out why inaction cannot be justified (despite our small size, it matters).

But underpinning the draft report is a rallying call for political consensus on these issues. As noted in the draft report, climate change is "a classic example of the tragedy of the commons, where individuals maximise personal value to the detriment to the whole". Without cross-party support, the necessary stable and credible policy settings cannot be achieved.

Political consensus is not an approach that sits easily within our political environment to date. However, climate change is an unprecedented intergenerational issue and demands different responses. GLOBE NZ, a cross-party group of 35 MPs, commissioned a report that saw the beginnings of political consensus in combating climate change. That report was produced in 2017 and received a special debate in the House of Representatives. Despite this, since the 2017 election, there have been no further developments on widespread cross-party consensus on climate change policy. In response to the draft report, National Party's spokesperson for Climate Change Todd Muller noted that including the agriculture industry in the ETS would make us 'outliers' and warned of the risks of going 'too fast'. While noting National Party support for a careful transition, his comments fell short of endorsing a cross-party approach. The challenge is not only for National to agree that a consensus based approach is vital, but for the Labour Party and the Green Party to actively open the door to cross-party discussion.

The draft report provides direction on how stability in policy settings can be better achieved. In particular, it recommends the introduction of legislation that has a strong prospect of policy and legislative durability, regardless of the make-up of the Government over time. It also recommends that an independent Climate Commission, set up as an independent Crown entity, would help to insulate policymaking from short-term political pressures. Some of these actions are already being undertaken by the current Government, including establishing an independent Climate Commission. However, the Commission is clear that this in itself is not enough. As noted in the report, laws and institutions will not endure unless underpinned by political consensus.

The draft report summarised "at a glance" can be found here and the full draft report here. The Commission is currently inviting submissions by 8 June 2018, with the final report due to be completed in August 2018.

The interesting question is whether our political system will be up to facing the challenge that has been thrown down.

In politics

No longer a highway to heaven?

The Labour-led Government is taking a significantly different approach to transport than the previous National-led Government. At the risk of over-simplification, while National focussed its efforts on roading projects, the Labour-led Government is abandoning that direction and instead focussing on rail and public transport.

The draft Government Policy Statement on Land Transport released last month has cemented this divergence in policy approach and provides the detail around Labour's proposals. The purpose of the Statement is to determine areas of transport activity and provide a funding range for them. The New Zealand Transport Agency and regional councils then plan for how that funding will be spent, as long as it is consistent with the Statement.

The Statement effectively scraps National's nine further "roads of national significance" (such as the proposal for four lanes to Whangarei), and instead expands funding for public transport, road safety, and active modes (such as walking and cycling). The Statement also includes two new activity classes for investment, rapid transit and transitional rail.

The challenge for the Government going forward is how to fund these bold and large-scale transport initiatives. To break the current funding gridlock, the Statement sets out that it intends to raise the Fuel Excise Duty from 9 to 12 cents over the next three years. This is on top of the Government introducing legislation that will allow for a regional fuel tax of up to 10 cents for transport initiatives that would otherwise be delayed or not funded.

National has opposed these initiatives and has accused Labour of using taxes levied in the regions to pay for transport infrastructure in Auckland. Concerns have also been raised about the regressive nature of fuel taxes, with the poorest being hit hardest by any increases. However, the previous government's plan was also ambitious and received advice at the time that it would need to increase fuel excise by 10-20 cents to fund its roads of national significance project.

In saying that, funding options other than fuel taxes are still on the table. The most referred to is a value capture tax (VLC), which National had previously looked at while in Government. The Statement notes that a VLC may be considered in the future. VLC is based on the idea that those who benefit directly from infrastructure investment should pay a tax on the increase in value they receive. Hon Grant Robertson mooted the possibility in March that a value capture tax might be an effective revenue mechanism for rail infrastructure whereby taxes could be levied on property owners that benefit from rail investment. Overseas jurisdictions have used VLC to varying success. For example, the Crossrail project in London was funded through a Business Rate Supplement, a 2 percent levy on non-domestic (commercial) properties with rateable values above £55,000.

The Statement also refers to Crown grants and user charges as potential options for funding in the future.

There is no doubt that the public will be watching with interest as to how both local and central government funds transport initiatives. Whether this will hurt the coalition government is yet to be seen, as the public weighs up the merits of the plan against the fiscal costs, and who those costs are passed on to.

For more insight into the Statement, see our April Resource Management Update here.

In the news

Draft Health and Safety Strategy released

In April, the Ministry of Business, Innovation and Employment (MBIE) and WorkSafe New Zealand released the draft Health and Safety at Work Strategy. The drafting of the Strategy forms part of wider Government efforts to improve health and safety in New Zealand following the enactment of the Health and Safety at Work Act 2015.  

The draft Strategy aims to improve New Zealand's workplace health and safety over the next ten years, with several key goals, including:

• a focus on supporting businesses, particularly SMEs and those operating in high-risk sectors, to implement effective health and safety practices, including proportionate risk management procedures;
• targeted support to workers at greater risk, including Māori, Pasifika and migrant workers, as well as workers under 24 and over 65, who are overrepresented in current workplace injury statistics; and
• ensuring leaders at all levels prioritise health and safety, and encouraging workers to be better engaged and educated on their health and safety rights and responsibilities.

Alongside the Strategy, MBIE and WorkSafe are also developing a comprehensive measurement framework to track the Strategy's impact on the performance of the health and safety at work system. The results of the measurement framework will be reported upon annually.   

A summary of the draft Strategy is available here. The draft is currently open for public consultation, with submissions due by 8 June.

Submission forms can be found here.

WorkSafe and MBIE are also holding a series of workshops throughout May to gather feedback on the draft Strategy, details of which can be found here.

Biosecurity New Zealand launched

On 30 March, the Minister for Biosecurity, Hon Damien O'Connor, launched Biosecurity New Zealand, one of four new business units within the Ministry for Primary Industries (MPI).

Minister O'Connor said that, "… with increasing pressures such as the growing scale of trade, more visitors from abroad and climate change challenges, we need a greater focus on biosecurity." Biosecurity New Zealand brings together around 900 staff into one centrally-led unit.

Biosecurity New Zealand will serve to support Biosecurity 2025 – a long-term plan released in November 2016 to guide the development of New Zealand's biosecurity system until 2025. As part of this plan, Biosecurity New Zealand intends to provide border staff (and New Zealanders more generally) with the knowledge and skills to protect New Zealand's unique environment and the value of its primary industries. Minister O'Connor accordingly described Biosecurity New Zealand as "a single point of accountability and leadership".

Biosecurity New Zealand and the other three new MPI business units (being Fisheries New Zealand, Forestry New Zealand and New Zealand Food Safety) will be funded through reprioritised spending within MPI.

More information on Biosecurity New Zealand can be found here.

Takeovers Code: Draft regulations released

On 26 April, the Minister of Commerce and Consumer Affairs released an exposure draft of the Takeovers Code Approval Amendment Regulations. This exposure draft addresses the proposed amendments to the Takeovers Code made to the Minister by the Takeovers Panel in 2017.

The exposure draft proposes to make some nominal changes to takeovers regulations. Specifically, the exposure draft, as introduced, would change the name of the Takeovers Code Approval Order 2000 to (more simply) the Takeovers Regulations 2000, and would combine it with the Takeovers (Fees) Regulations 2001 so that all relevant information is in a single set of regulations.

Additionally, the exposure draft proposes certain amendments to the Takeovers Code:

• change day-based timeframes expressed in the Code from calendar days to working days (eg 7 days has been amended to 5 working days);
• facilitate and prioritise electronic communication by, for example, requiring companies to provide information to shareholders and the Takeovers Panel in electronic form, and also to provide electronic access to half-year and independent adviser's reports in lieu of physical copies; and
• improve information disclosure by, for example, requiring the disclosure of:
  • the identity of the persons controlling the offeror in the offer document;
  • the target company's (and its directors') interest in the offeror; and
  • agreements and arrangements entered into by the person who will become the controller of an increased percentage of voting securities.

The discussion paper to the exposure draft can be accessed here. Submissions on the proposed Regulations are due by 25 May 2018.

Interim Climate Change Committee and updated indicative timetable announced

On 17 April, the Minister for Climate Change, Hon James Shaw, announced the membership of the Interim Climate Change Committee (Committee). The Committee is tasked with examining how New Zealand could transition to a net zero emissions economy by 2050, with 100 percent renewable electricity generation by 2035. The Committee is a precursor to the permanent Climate Change Commission (Commission) which will be established by legislation and will progress key issues for climate change policy. The Commission will eventually make recommendations to the Government on how to best achieve its net zero emissions goal.

Committee's terms of reference

The Committee's terms of reference specifically asks for recommendations on how best to incorporate agriculture into the Emissions Trading Scheme (ETS) and how to plan for the transition to 100 percent renewable electricity by 2035. The Committee has also been tasked with examining how the Commission should contribute towards developing a five-yearly carbon budget as well as more ambitious Nationally Determined Contributions (NDC) to reach net-zero emissions by 2050. As part of the terms of reference, the Committee is required to consult widely before making recommendations, including with the public, iwi / Māori, industry, technical experts, special interest groups, sector lead groups and other interested parties.

The Committee is made up of six members who have been selected for their expertise in a range of relevant areas including: agriculture, climate change science and policy, economics and impacts, Te Tiriti o Waitangi and Māori interests, and energy production and supply. The Committee will be comprised of:

• Dr David Prentice (Chair), former CEO and Managing Director of Opus International Consultants;
• Lisa Tumahai (Deputy Chair), Kaiwhakahaere of Te Rūnanga o Ngāi Tahu;
• Dr Harry Clark, an agricultural greenhouse gas research specialist;
• Dr Keith Turner, former CEO of Meridian and professional director;
• Dr Jan Wright, former Parliamentary Commissioner for the Environment; and
• Dr Suzi Kerr, an expert in the economics of climate change policy and emissions trading.

Updated Indicative Timetable

Appendix 2 of the terms of reference also sets out an indicative timetable for the Zero Carbon Bill being enacted (April 2019), amendments being made to the Climate Change Response Act (Nov / Dec 2019) and other milestones for the Committee and the Government. Based on this timeline, the permanent Commission would be in place in May 2019.

The Minister's press release on the Interim Climate Change Committee can be accessed here.

The Cabinet Paper outlining the Committee's terms of reference can be accessed here.

Realising the potential of driverless vehicles

On 18 April, Michael Cameron released a report entitled 'Realising the Potential of Driverless Vehicles' (Report). The Report is the product of Mr Cameron's study into the law reform needed to support the adoption of driverless vehicles in New Zealand, undertaken following his receipt of the New Zealand Law Foundation's International Research Fellowship in 2016.

The Report concludes that New Zealand's transport laws will need a "comprehensive overhaul" to fully realise the benefits, and avoid the pitfalls, of driverless vehicles and the advent of robot automation. The Report recommends several interim options for law reform, including:

• amending the Land Transport Act 1998 to:
  • clarify that there is no legal requirement for a vehicle to have a driver;
  • create a product liability regime to remove the stigma of negligence and to clarify the circumstances in which manufacturers and others may be held liable;
  • create new categories of criminal offences and ensure that liability for these offences are attributed fairly and to the logical candidate (ie manufacturers, users, or fleet managers); and
• pursuing a policy encouraging manufacturers to publish a safety self-assessment of driverless vehicles they intend to deploy in New Zealand.

Despite concerns over the first pedestrian death involving a driverless vehicle earlier in March, Mr Cameron argues that driverless vehicles will improve road safety by reducing incidents and congestion, as well as sparking economic growth by providing cheap and convenient mobility for everyone. The Report also highlights the inevitability of driverless vehicles and notes the opportunity for New Zealand to emerge as a world leader in driverless technology and robotic automation.

While sponsored by the Law Foundation, Mr Cameron's recommendations are not binding on the Government, although provide valuable insight into the law reform that will likely be necessary with the inevitable advance of driverless vehicles in New Zealand.

The findings from the Report, available here, will inform a further study on Artificial Intelligence and Law in New Zealand, which is due for release in January 2020.

Stocktake of quarterly investment fund updates

On 18 April, the Financial Market Authority (FMA) published the findings of a review of fund managers' quarterly fund updates. 2017 marked the first complete year in which Managed Investment Scheme (MIS) managers have been legally required to produce, and make publicly available, fund updates in order to inform investors of how their fund is performing, what it is costing them, and the assets in which it is investing.

Overall, the review did not raise significant concerns. In all the funds reviewed, the managers had complied with their obligations to produce and lodge quarterly fund updates on the Disclose Register. However, the FMA found that only 64% of updates were made prominently available on the fund websites. The remaining updates were found to not be publicly available; they were either not prominent, other information was more prominent, or could not be found after a reasonable look on the websites.

The review raised a couple of issues with the reporting of fund charges. In 17% of cases, fund charges were significantly higher (+0.15%) in the fund update than in the Product Disclosure Statement (PDS). Of these, four funds did not replace the PDS with an adjusted fund charges figure or otherwise have an explanation for the discrepancy. There was also a general lack of consistency between the fund updates on whether fund charges were inclusive or exclusive of GST. According to the FMA, best practice would be for all fund charges to be quoted inclusive of any GST and to make this clear in the fund update, PDS, or other documents.  

This stocktake of quarterly fund updates forms part of the FMA's strategic priorities for 2017-2018, to work with issuers and their professional advisers with a broad view to improving disclosure documents and offer information for investors. 

The findings of the review can be found here.

Incentivising research & development through tax credits

The Government has announced its intention to introduce a Research and Development (R&D) tax incentive in 2019, with the aim of helping more businesses undertake a greater amount of R&D. The Ministry of Business, Innovation and Employment is seeking input on the proposed tax incentive by way of the recently published R&D Tax Incentive Discussion Document (Discussion Document).

Minister of Research, Science and Innovation, Hon Dr Megan Woods, has pointed out that New Zealand's gross expenditure on R&D is much lower than the OECD average. "We need new ideas, new innovations and new ways of looking at the world if we are to build a sustainable and productive economy", she believes.

The Discussion Document proposes that, from 1 April 2019, a 12.5% tax credit on eligible expenditure will be available to businesses undertaking R&D in New Zealand. Any business would be eligible to claim the R&D Tax Incentive, provided it:

• is located in New Zealand and is carrying out R&D in New Zealand;
• satisfies the tax test of being in business (the nature of its activities must amount to a profession, trade, manufacturing or undertaking, with an intention to make a profit);
• is claiming for R&D expenditure that relates to its business;
• has control over the R&D activities;
• bears the financial risk of the R&D activities; and
• effectively owns the results of the R&D.

The Discussion Document seeks submissions on a range of questions concerning the scope, structure and details of the R&D Tax Incentive. Submissions can be completed online, by email, or by post, and are due by 1 June 2018.

The Discussion Document can be found here.  

Trade for All: New Zealanders asked to help shape future trade policy

On 13 April, Minister for Trade and Export Growth, Hon David Parker announced the Government's intention to develop a new 'Trade for All' trade agenda (Trade for All).

The objective of Trade for All is to design a progressive and inclusive trade agenda that acknowledges and responds to concerns of New Zealanders regarding global and regional trade policy issues. The Government intends for Trade for All to create an enduring conversation with the public and key stakeholders about the future direction of New Zealand's trade policy. It will involve ongoing consultation with Māori, as a Treaty of Waitangi partner, and will include a particular focus on:

• environmental issues;
• labour rights;
• gender equity;
• indigenous rights; and
• SME participation in international markets.

A work programme for public engagement in the shaping of Trade for All is currently being designed and more information about the submissions process will be made available as the programme is developed. This opportunity for public input follows the current call for feedback on how progressive trade issues can be advanced in the Pacific Alliance negotiations with Chile, Colombia, Mexico and Peru.  

The Trade for All summary of feedback can be found here.

The Release of Our Land 2018 Report

The Environmental Reporting Act 2015 requires the Ministry for the Environment and Stats NZ to report on the state of the environment, the pressures affecting its state, and how these impact on aspects of environmental and human wellbeing.

The Our Land 2018 Report (Report), released in April, addresses the significant shift in land use in the past two decades, which includes: expansion in urban areas; reduction in the area of land in agricultural production; increase in the proportion of farmland used for dairy (at the expense of sheep and beef); and continued intensification of farming.

As a result of this shift, the quantity and quality of soil has been affected. The Report used seven indicators to assess soil quality and found that, while five of the seven were largely within target range, two indicators presented concern. These included:

• the phosphorus content in soil; and
• macroporosity (which is part of the soil's physical status and, when too low, is an indicator of compaction).

Results outside the target range for both of these indicators can have negative impacts on water quality and production. Ongoing threats to indigenous biodiversity and ecosystems were also highlighted.

The Report recognises the significance that land quality issues have on New Zealand's top two export earners (primary production and tourism), and on human life and wellbeing more generally. Hon David Parker, Minister for the Environment, was 'particularly troubled' at the impact of urban growth on irreplaceable highly productive land. In response to the Report, officials have begun work on a National Policy Statement for Versatile Land and High Class Soils.

Further information on the Report can be viewed here.

Progress of legislation

New Bills

Accident Compensation Amendment Bill
Type of Bill: Government
Member in charge: Hon Iain Lees-Galloway
This Bill proposes to make a number of changes regarding dual eligibility of superannuation and weekly compensation under the accident compensation scheme. The Bill would amend the Accident Compensation Act 2001 and the New Zealand Superannuation and Retirement Income Act 2001 to establish that claimants (or dependents of a deceased claimants) will no longer be required to elect either weekly compensation or superannuation payments, and instead be able to concurrently receive both payments. The age limit restricting weekly compensation from those close to or of the superannuation qualification age would be removed and surviving spouses will be eligible to received up to five years of weekly compensation. The Veterans' Support Act 2014 would also be amended to continue to align the accident compensation schemes for veterans with the Accident Compensation Act.

The Bill would also make a number of discrete changes to the accident compensation scheme. These include: expanding the definition of persons "Ordinarily resident in New Zealand" to allow align treatment of spouses, partners, children, and other dependants of New Zealand workers posted overseas with their entitlements if the accident had occurred in New Zealand; disestablishing the Accident Compensation Appeal Authority (which heard appeals from the Accident Compensation Act 1972 and Accident Compensation Act 1982); and extending the period between reviews of treatment costs set out in Regulations from one to two years.

Arms (Firearms Prohibition Orders) Amendment Bill
Type of Bill: Member's
Member in Charge: Hon Paula Bennett/Chris Bishop
This Bill would amend the Arms Act 1983 to provide the Commissioner of Police with the ability to issue "Firearms prohibition orders". The Bill would restrict the holders of firearms licences from a person who, in the opinion of a commissioned police officer, is a member of a gang or who is subject to a firearm prohibition order. The Bill would establish offences for a person subject to an order who acquires a firearm or is present in a certain residential or firearms premises. Further, it provides an offence where a person provides a firearm to a person who is subject to an order.

Dog Control (Category 1 Offences) Amendment Bill
Type of Bill: Member's
Member in Charge: Ian McKelvie
This Bill would amend the Dog Control Act 1996 to allow a number of offences to be heard by Justices of the Peace and Community Magistrates in order to reduce the time taken to resolve cases under this Act.

Electoral (Entrenchment of Māori Seats) Amendment Bill
Type of Bill: Member's
Member in Charge: Rino Tirikatene
This Bill would amend the Electoral Act 1993 to entrench provisions in the Electoral Act 1993 that relate to Māori electorates. The Bill intends to achieve this by including section 45 (Maori representation) and the definition of "Maori electoral population" in the list of "reserved provisions" under section 268 of that Act. Section 268 requires a majority of 75% of the House of Representatives or a majority of votes in a referendum to repeal or amend a reserved provision.

Exclusive Economic Zone and Continental Shelf (Environmental Effects) Amendment Bill
Type of Bill: Government
Member in Charge: Hon David Parker
This Bill would amend the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012 to allow the Minister for the Environment to recover from an applicant, the costs incurred in relation to a board of inquiry appointed under the Act to decide an application for marine consent. 

At present, the government bears any costs associated with the appointment of a board of inquiry under the Act to decide a private application for marine consent. This is inconsistent with comparable processes. For instance, the costs incurred by the Environmental Protection Authority in deciding applications for marine consent under the Act are recoverable from the applicant, as are costs incurred in relation to a board of inquiry appointed under the Resource Management Act 1991. The Bill seeks to bring these processes into alignment. 

The Bill sets out criteria that the Minister would be required to have regard to when recovering costs and also requires the Minister to provide, upon request by an applicant, an estimate of the costs likely to be recovered.

KiwiSaver (Foster Parents Opting in for Children in their Care) Amendment Bill
Type of Bill: Member's
Member in Charge: Hamish Walker
This Bill would amend the KiwiSaver Act 2006 to make it possible for any foster parent (or kin carer) who has proof of their foster responsibility to approach a KiwiSaver provider to open an account for a foster child in their care. At present, the only way for a foster parent (or kin carer) to open a KiwiSaver account for their foster child is by application to their allocated social worker. The Bill intends to permit a foster parent (or kin carer) to contract directly with a KiwiSaver provider on behalf of the foster child. 

Land Transport (Random Oral Fluid Testing) Amendment Bill
Type of Bill: Member's
Member in Charge: Alastair Scott
This Bill would amend the Land Transport Act 1998 to provide enforcement officers with the power to require drivers of motor vehicles to undergo a compulsory random oral fluid test to detect persons driving under the influence of controlled drugs. Evidence gathered under this power would not be able to be used as evidence in prosecutions under the Misuse of Drugs Act 1975. The Bill would extend a range of alcohol-related driving and testing offences to cover driving and testing relating to controlled drugs.

Ngā Rohe Moana o Ngā Hapū o Ngāti Porou Bill (No 2)
Type of Bill: Government
Member in Charge: Hon Andrew Little
This Bill would give effect to the deed of agreement signed by ngā hapū o Ngāti Porou and the Crown in relation to ngā rohe moana o ngā hapū o Ngāti Porou. The deed of agreement provides that ngā hapū o Ngāti Porou retain their customary interests and customary title to areas of foreshore and seabed within its rohe as the Marine and Coastal Area (Takutai Moana) Act 2011 would not apply to ngā hapū o Ngāti Porou.  

The Bill would provide for a range of instruments (some required to be made by legislation) that recognise the rights of hapū of Ngāti Porou in its rohe and would support the recognition and protection of the mana of the hapū of Ngāti Porou generally and over its rohe. Some of the instruments provide for protected customary activities without the need for resource consent, allow the identification and restriction of access of identified wāhi tapu areas, and the making of customary fishing regulations to allow the management of customary fishing within the rohe. Other instruments would be made to allow hapū who have customary marine title the right to be consulted, to give, or to refuse applications for resource consents under the Resource Management Act 1991. Further, ngā hapū o Ngāti Porou would be allowed to set out issues, objectives, policies and rules regarding their world view, including the sustainable management of the rohe, and protecting the spiritual identity of ngā hapū o Ngāti Porou. Lastly, maps of ngā rohe moana o ngā hapū o Ngāti Porou would be required to be attached to key public documents, ngā hapū o Ngāti Porou would be required to be consulted in establishing or extending any marine reserves or conservation areas, and two existing place names within ngā rohe moana o ngā hapū o Ngāti Porou would be chosen by ngā hapū o Ngāti Porou.

Tariff (PACER Plus) Amendment Bill
Type of Bill: Government
Member in Charge: Hon David Parker
This Bill would amend the Tariff Act 1988 to give effect to the Pacific Agreement on Closer Economic Relations Plus (PACER Plus), a free trade agreement signed in Tonga, on 14 June 2017. PACER Plus was signed by eleven Pacific nations and aims to encourage economic development in Pacific countries. The Bill intends to make amendments to both the Act and the Tariff of New Zealand (Tariff) to enable the application of preferential Tariff rates to goods imported from specified PACER Plus parties as contemplated by the agreement. 

Bills awaiting first reading

Arms (Firearms Prohibition Orders) Amendment Bill
Autonomous Sanctions Bill
Companies (Clarification of Dividend Rules in Companies) Amendment Bill
Dog Control (Category 1 Offences) Amendment Bill
Education (Social Investment Funding and Abolition of Decile System) Amendment Bill
Election Access Fund Bill
Electoral (Entrenchment of Māori Seats) Amendment Bill
KiwiSaver (Foster Parents Opting in for Children in their Care) Amendment Bill
Land Transport (Random Oral Fluid Testing) Amendment Bill
Patents (Advancement Patents) Amendment Bill

Bills defeated

Oaths and Declarations (Members of Parliament) Amendment Bill
Member in charge: Anahila Kanongata'a-Suisuiki
Ayes 54: New Zealand Labour 46; Green Party 8.
Noes 65: New Zealand National 55; New Zealand First 9; ACT New Zealand 1.

Bills withdrawn

Education (Protecting Teacher Title) Amendment Bill
Education (Public Good not Profit from Charter Schools) Amendment Bill
Electronic Compliance with Reporting Requirements Bill
Employment Relations (Restoring Kiwis’ Right to a Break at Work) Amendment Bill
Fair Trading (Oppressive Contracts) Amendment Bill
Ngā Rohe Moana o Ngā Hapū o Ngāti Porou Bill
Sentencing (Domestic Violence) Amendment Bill

Bills before Select Committee

Submissions open

Bill	Select Committee	Closing date for Submissions (2018)
Accident Compensation Amendment Bill	Education and Workforce	Not yet called
Administration of Justice (Reform of Contempt of Court) Bill	Justice	14 June
Commerce Amendment Bill	Transport and Infrastructure	15 June
Coroners (Access to Body of Dead Person) Amendment Bill	Māori Affairs	25 May
Corrections Amendment Bill	Justice	17 May
Crown Minerals Amendment Bill	Economic Development, Science and Innovation	22 June
Earthquake Commission Amendment Bill	Finance and Expenditure	31 May
Exclusive Economic Zone and Continental Shelf (Environmental Effects) Amendment Bill	Environment	Not yet called
Health and Safety at Work (Volunteer Associations) Amendment Bill	Education and Workforce	Not yet called
Litter (Increased Infringement Fee) Amendment Bill	Environment	14 June
Local Electoral Matters Bill	Justice	22 June
Local Government (Community Well-being) Amendment Bill	Governance and Administration	25 May
Ngā Rohe Moana o Ngā Hapū o Ngāti Porou Bill (No 2)	Māori Affairs	22 June
Privacy Bill	Justice	24 May
Residential Tenancies (Prohibiting Letting Fees) Amendment Bill	Social Services and Community	23 May
Social Assistance (Residency Qualification) Legislation Bill	Social Services and Community	23 May

Submissions closed

Bill	Select Committee	Report due (2018)
Arbitration Amendment Bill	Justice	11 May (note: interim reports issued)
Births, Deaths, Marriages, and Relationships Registration Bill	Governance and Administration	31 July
Child Poverty Reduction Bill	Social Services and Community	13 August
Commerce (Criminalisation of Cartels) Amendment Bill	Economic Development, Science and Innovation	20 August
Conservation (Infringement System) Bill	Environment	14 August
Consumers’ Right to Know (Country of Origin of Food) Bill	Primary Production	29 August
Crimes Amendment Bill	Justice	28 September
Education (National Education and Learning Priorities) Amendment Bill	Education and Workforce	21 August
Education (Teaching Council of Aotearoa) Amendment Bill	Education and Workforce	1 August
Education Amendment Bill	Education and Workforce	15 August
Electoral (Integrity) Amendment Bill	Justice	30 July
Employment Relations (Triangular Employment) Amendment Bill	Education and Workforce	21 September
Employment Relations Amendment Bill	Education and Workforce	1 August
End of Life Choice Bill	Justice	27 September
Financial Services Legislation Amendment Bill	Economic Development, Science and Innovation	7 June
Health (National Cervical Screening Programme) Amendment Bill	Health	20 September
Health Practitioners Competence Assurance Amendment Bill	Health	20 August
KiwiFund Bill	Economic Development, Science and Innovation	21 August
Land Transport Management (Regional Fuel Tax) Amendment Bill	Finance and Expenditure	21 May
Legislation Bill	Justice	5 June
Marriage (Court Consent to Marriage of Minors) Amendment Bill	Justice	18 May
Misuse of Drugs (Medicinal Cannabis) Amendment Bill	Health	30 July
Newborn Enrolment with General Practice Bill	Health	13 June
Ngāti Tūwharetoa Claims Settlement Bill	Māori Affairs	19 June
Overseas Investment Amendment Bill	Finance and Expenditure	21 June
Psychoactive Substances (Increasing Penalty for Supply and Distribution) Amendment Bill	Justice	21 September
Racing Amendment Bill	Primary Production	2 July
Sale and Supply of Alcohol (Renewal of Licences) Amendment Bill (No 2)	Governance and Administration	21 August
Sentencing (Livestock Rustling) Amendment Bill	Primary Production	31 July
State Sector and Crown Entities Reform Bill	Governance and Administration	20 August
Statutes Amendment Bill (No 2)	Governance and Administration	28 May
Taxation (Neutralising Base Erosion and Profit Shifting) Bill	Finance and Expenditure	12 June
Te Pire Haeata ki Parihaka/Parihaka Reconciliation Bill	Māori Affairs	22 September
Thames-Coromandel District Council and Hauraki District Council Mangrove Management Bill	Governance and Administration	22 June
Tribunals Powers and Procedures Legislation Bill	Justice	25 May
Trusts Bill	Justice	5 June

Bills awaiting second reading

Court Matters Bill
Domestic Violence — Victims' Protection Bill
Family and Whānau Violence Legislation Bill
Friendly Societies and Credit Unions (Regulatory Improvements) Amendment Bill as reported back by the Finance and Expenditure Committee
Health (Fluoridation of Drinking Water) Amendment Bill
Kermadec Ocean Sanctuary Bill
Military Justice Legislation Amendment Bill
Ngāi Te Rangi and Ngā Pōtiki Claims Settlement Bill
Residential Tenancies Amendment Bill (No 2)
Social Workers Registration Legislation Bill
Tauranga Moana Iwi Collective Redress and Ngā Hapū o Ngāti Ranginui Claims Settlement Bill
Telecommunications (New Regulatory Framework) Amendment Bill

Bills awaiting third reading

Brokering (Weapons and Related Items) Controls Bill
Families Commission Act Repeal Bill
Heretaunga Tamatea Claims Settlement Bill
Local Government Act 2002 Amendment Bill (No 2)
New Plymouth District Council (Waitara Lands) Bill
Ngāi Tai ki Tāmaki Claims Settlement Bill
Ngāti Tamaoho Claims Settlement Bill
Social Security Legislation Rewrite Bill

Acts assented

Appropriation (2016/17 Confirmation and Validation) Act 2018
Type of Act: Government
Member in charge: Hon Grant Robertson
This Act confirms and validates matters relating to Government spending in the 2016 / 17 financial year by confirming the Public Finance (Transfers Between Outputs) Order 2017, which was made under section 26A of the Public Finance Act 1989.  The Act confirms the order in council that directs the transfer of amounts between output expense appropriations and the expenses incurred in excess of existing appropriations. The Act also further validates unappropriated expenses and capital expenditure incurred.

In the week ahead

What’s coming up in the House

• on Tuesday 15 May the House will consider the third readings of the Brokering (Weapons and Related Items) Controls Bill and the Families Commission Act Repeal Bill, and the committee stage of the Social Security Legislation Rewrite Bill;
• Wednesday 16 May is a members’ day; and
• Thursday 17 May is Budget Day. The Minister of Finance will deliver the Budget speech soon after 2 pm. The start of the 15-hour Budget debate will follow. The House is expected to rise at 6 pm. The Budget debate will resume on Tuesday 22nd May.

In trade

Tariff concessions

Applicant	Proposed tariff concession	Tariff item	Closing date for objections (2018)
Chr Hansen Proprietary Limited	Milk test kit.	3822.00	22 May
Steve's Wholesale Limited	Sabre inert training aerosol projectors: viz compressed water.	2201.90.01	5 June
Sanford Limited	Electronic fish stunner.	8543.70.90	5 June
T R Group Limited	Ten (10) Cobus airport airside passenger buses.	8702.10.00	5 June
Butchart Marine Services Pty Limited	Slipway training incorporating a hydraulic life that keeps vessel horizontal at all times during launch and recovery, five to forty metres in length, with a load capacity of between five to one hundred and fifty tonnes.	8716.39.09	5 June

In consultation

New

Who	What	By when (2018)
Department of Conservation	Application by Steven Bagley for a permit to hold, import, and export a whale bone.	23 May
	Application by No 8 Limited for a lease, licence, and easement for a small hydro scheme on the West Coast.	24 May
	Draft Conservation Services Programme Annual Plan 2018/19.	25 May
	Application by John B Cowan for a grazing licence at Haast Valley.	31 May
	Application by Joe'l Komene to hold marine mammal bone and teeth for the purpose of carving.	30 May
	Permit application by Cathedral Cove Cruises Limited to operate commercial tours to view marine mammals in Whitianga.	30 May
	Application by Lake Mahinapua Aquatic Club for a lease/licence Incorporated at Mahinapua Recreation Reserve.	8 June
	Application by Wakawaahi Limited for a lease/licence concession at Accretion Clova Bay Conservation Area.	20 June
	Proposal to add land to Korowai/Torlesse Tussocklands (Conservation) Park.	20 June
	Application by North Canterbury Alpine Trust for a lease/licence concession for structures and guided activities on public conservation land.	20 June
Electricity Authority	Consultation on proposed amendments to enable the system operator's Dispatch Service Enhancement (DSE) project.	22 May
	Consultation on Permitting Approved Test Houses (ATHs) to amend certification reports.	5 June
Financial Markets Authority	Consultation on including an annual declaration of compliance in regulatory returns and updating standard regulatory returns condition.	14 May
	Proposed exemption to enable dual-language produce disclosure statements.	17 May
Food Standards Australia New Zealand	A1146 – to permit the use of thermolysin (protease) from Anoxybacillus caldiproteolyticus as a processing aid in protein, diary, egg, meat and fish processing and flavour production.	24 May
	P1046 – to remove a negative impact on trade in food for special medical purposes (FSMP) by permitting acetate forms of L-amino acids.	31 May
Inland Revenue	Discussion document regarding research and development tax initiatives.	1 June
	Discussion document regarding GST on imported low-value good.	29 June
Medsafe	Consultation on the revision of Changed Medicine Notifications Form B.	31 May
Ministry for Primary Industries	Amendments to regulations to support digital monitoring and innovative trawl technologies.	6 June
	Draft Import Health Standard for importing pumpkin, squash, and butternut for human consumption or decorative purposes.	11 June
	Request for a further temporary closure of Maunganui Bay to fishing (except kina).	11 June
	Proposed changes to the Misuse of Drugs (Industrial Hemp) Regulations 2006 and regulations under the Food Act 2014.	20 June
Ministry of Business, Innovation and Employment	Consultation on addressing misuse of the Financial Service Providers Register.	15 May
	Consultation on changes to the Takeovers Code.	25 May
	Consultation on Health and Safety at Work Strategy.	8 June
	Partnership Law Bill exposure draft consultation.	15 June
	Proposed changes to NZBN Primary Business Data.	20 June
	Discussion paper for a new regime for unravelling Ponzi schemes.	6 July
Ministry of Health	Consultation on the Emergency Care Data Standard.	15 June
New Zealand Transport Agency	Consultation on Melling transport improvements.	10 June
Pharmac	Proposal to list Interventional Radiology products.	18 May
	Proposal to list negative pressure wound therapy products and iodosorb wound care ointment supplied by Smith & Nephew Limited.	24 May
	Proposal to list non-surgical antimicrobial hand hygiene products.	25 May
Standards New Zealand	Seeking feedback on a draft revision to NZAS 8156:2008 Ambulance and paramedical services.	1 June
	Seeking feedback on a draft revision to NZS 6114:2006 A2 electrical installations and the requirements for the safe supply of electricity to installations, facilities and equipment operating at non-standard voltages and frequencies.	27 June
Worksafe	Consultation on whether hazardous substances safe work instruments should specify the validity periods for the compliance certificates of certain stationary container systems and cylinder design standards.	28 May

Current

Who	What	By when (2018)
Commerce Commission	Cross-submissions on draft report Price setting event 3 (PSE3) for Auckland and Christchurch airports.	8 June
	Waikato and Upper North Island voltage management – draft decision.	1 September to 30 September
Department of Conservation	Application by NZSki Ltd for a ski field concession at Hakatere Conservation Park and Mount Hutt Forest Conservation Area.	29 May
	Intention to grant concessions (leases, licences and easements) to the Aramoana Conservation Area and Aramoana Ecological Area.	29 May
Inland Revenue	Draft standard practice statement ED0200: options for relief from tax debt.	18 May
Ministry of Justice	Consultation on how Crown/Māori relations could improve and the projects that it should be focused on.	30 May
	Māori Land Court customer survey.	30 June