Advocacy Report Reader
Economy
Tax Administration in a Digital World: An officials’ issues paper to support future tax administration
Published: March 31, 2022
Submitting To: Inland Revenue Department (IRD)
Issue for Business: IRD are currently looking at possible policy changes required to support a more digital tax system. This covers frameworks for considering policy changes, and what the shift to digital could mean for a more digital tax system, taxpayers, Inland Revenue, and digital inclusion. It also covers specific areas for feedback, including: • The regulatory framework applying to external parties, including intermediaries and other entities which interact with the tax and payments system; • The rules, frameworks and scope of data sharing; and • How tax legislation could support a more digital future. To assist IRD in terms of their early thinking around a more digital tax administration system, members may recall BusinessNZ (with the assistance of the BusinessNZ Tax Group) released a white paper in November last year entitled The Future of Tax Administration in New Zealand. The Paper looked at how New Zealand’s tax administration could be improved with better technology and more partnerships with the private sector. The BusinessNZ Tax Group white paper can be viewed here: https://www.businessnz.org.nz/__data/assets/pdf_file/0009/229896/BusinessNZ-Future-of-Tax-Administration-Paper.pdf We note there is much cross-over between the BusinessNZ Paper and the IRD one. Overall, we support the work IRD are doing in this space, and believe the IRD Paper is a good first step to ensuring a collaborative effort between Government and the private sector takes place.
Action: Submission sent on 31 March.
Outcome: Awaiting submission review.
Energy
Price discovery under 100% renewable electricity supply
Published: March 16, 2022
Submitting To: Electricity Authority
Issue for Business: The paper describes how our electricity supply system is likely to change physically with 100% renewable electricity supply and the likely impact on prices. The paper identifies seven key issues to be addressed: Real-time co-ordination, Ancillary services, Accurate price signals, Demand-side flexibility, contracts, orderly transition, and competition. In general, we agree with MDAG’s views on how electricity supply is likely to change and with the issues identified. This submission provides our view of the future according to our modelling, some general comments on the issues identifies, as well as some other wider risks to consider.
Economy
Submission on Te Ara Paerangi – Future Pathways Research, Science, and Innovation Green Paper
Published: March 16, 2022
Submitting To: Ministry of Business, Innovation and Employment (MBIE)
Issue for Business: ExportNZ/BusinessNZ welcomes the opportunity to contribute at this early stage on the Ministry of Business, Innovation, and Employment’s (MBIE) Te Ara Paerangi – Future Pathways Green Paper for the Research, Science, and Innovation (RSI) sector. A thriving research and innovation sector is vital to keeping New Zealand businesses and exporters competitive on the international market, improving the sustainability of our business sectors, and ensuring that our future economy is productive, resilient, diverse, and able to leverage new opportunities.
Action: ExportNZ/BusinessNZ welcomes MBIE’s review of the Research, Science, and Innovation sector. ExportNZ/BusinessNZ are committed to playing an active role throughout this new process, including participation in the upcoming reference group. Our comments in this submission will be more general and will form the basis of our position on the sector going forward.
Outcome: Ongoing
Export & Trade
ExportNZ Submission on the International Treaty Examination of the UK-NZ Free Trade Agreement
Published: March 13, 2022
Submitting To: Parliamentary Foreign Affairs, Defence, and Trade Select Committee
Issue for Business: Export New Zealand (ExportNZ) welcomes the opportunity to submit on the international treaty examination of the UK-NZ Free Trade Agreement (UK-NZ FTA).
Action: ExportNZ believes the UK-NZ FTA achieves these aims and we support the ratification of the UK-NZ Free Trade Agreement.
Outcome: Ongoing
Environment & Infrastructure
Our Future Resource Management System
Published: February 28, 2022
Submitting To: Ministry for the Environment (MfE)
Issue for Business: Policy proposals where Ministers have made initial decisions on matters beyond the scope of the Natural and Built Environments Exposure Draft.
Action: BusinessNZ has made a submission to MfE pointing out that while BusinessNZ was supportive of the intent of many of the changes outlined in the Draft Natural and Built Environment Bill (2021), we were concerned as to how these would be implemented in practice. The Discussion Document has continued to effectively kick for touch in respect to Freshwater Allocation. It just says that “The Government has committed to working to achieve efficient and fair allocation of freshwater resources having regard to all interests, including Māori and existing and potential new users” (page 16). This is a cop-out: resource allocation issues, including dealing with over-allocation etc, need to be addressed. The distinct danger is that if account is not taken of such factors, government will be able to ride rough-shod over existing rights. If it does so, the effect on investment will be chilling.
Outcome: Awaiting Govt decisions
Energy
Onshore fuel stockholding
Published: February 28, 2022
Submitting To: Ministry of Business, Innovation and Employment (MBIE)
Issue for Business: The consultation paper discusses various levels of stocks to be held physically onshore by fuel wholesale suppliers as a means to increase our fuel security in the event of a fuel disruption, how to implement this requirement and various proposed structures to manage this requirement. We note changes to the refinery are unlikely to impact on fuel security in the case of domestic supply interruptions but may increase the risk of disruption in an extended closed border event. We acknowledge increased fuel stocks held within New Zealand would provide security against this particular scenario, however we caution that any moves to increase security must be balanced against the increased costs faced by consumers.
Economy
Residential Building Supplies Market Study – Preliminary Issues Paper
Published: February 4, 2022
Submitting To: Commerce Commission
Issue for Business: The Commerce Commission has stated that the purpose of this market study is to look at whether competition is working effectively within the residential building supplies industry and if not, what might be done to improve it. While BusinessNZ supports well-functioning and competitive industries, we are also conscious of the disruption such studies can cause, not to mention the potential for regulatory outcomes that do not align with any problems identified. Simply put, any market study that the Commerce Commission undertakes needs to be done properly. Therefore, BusinessNZ has raised some key aspects that we believe the Commerce Commission needs to keep in mind going forward with the investigation.
Action: Submitted to the Commerce Commission on 4 February
Outcome: Awaiting next stage of year-long investigation.
Export & Trade
Immigration – Fit For The Future Preliminary Findings and Recommendations
Published: December 22, 2021
Submitting To: Productivity Commission
Issue for Business: The Government has asked the Productivity Commission to undertake an inquiry into what immigration policy settings would best facilitate New Zealand’s long-term economic growth and promote the wellbeing of New Zealanders.
Action: ExportNZ has made a submission in support of BusinessNZ's submission and has also raised a number of issues relating to immigration from the perspective of New Zealand's export businesses.
Outcome: ProdCom has released their preliminary findings and will present their final report to the Government in April 2022.
Energy
Market Monitoring Review of Structure, Conduct and Performance in the Wholesale Electricity Market
Published: December 22, 2021
Submitting To: Electricity Authority
Issue for Business: Reviews electricity spot prices (from January 2019 up to and including the first two quarters of 2021) to assess whether electricity spot prices were determined in a competitive environment. Undertaken in response to sustained high spot prices since the Pohokura outage, asking if spot prices reflect underlying supply and demand fundamentals. We note the data do not provide any conclusive evidence to suggest there are competitive issues to be addressed. We urge the Authority to be cautious about the conclusions it draws from this analysis and proposing any changes where there is a lack of evidence.
Energy
Inefficient Price Discrimination in the Wholesale Electricity Market – Issues and Options
Published: December 22, 2021
Submitting To: Electricity Authority
Issue for Business: Addresses inefficient price discrimination in the wholesale market as there appears to be evidence to indicate that inefficiencies are potentially significant, with material implications for consumers and generators. We agree the Tiwai contract is unique in that it relates to an unusually large amount of electricity, which accordingly might reasonably be expected to receive a cost-based discount. We also agree that demand response provisions are highly valuable and can reasonably contribute to differences in price. We are somewhat surprised that the Issues Paper has focussed on this one-off contract. We do not believe the potential for, or even existence of, price discrimination is a pressing issue. We acknowledge the Tiwai contracts may have discouraged investment in new generation and agree that any such issues are best addressed through a review of barriers to new investment more generally, as the Authority has proposed to undertake in 2022.
Economy
Data and Statistics Bill
Published: December 21, 2021
Submitting To: Governance and Administration Select Committee
Issue for Business: Given the StatisticsNZ Act originates from 1975, a review of it is timely, especially when the narrow focus on collecting data via statistical surveys has resulted in insufficient tools for ensuring the supply and quality of administrative data used for producing official statistics. While we generally support the thrust of the Bill, we highlight a few concerns, including the request on the business community for data, powers of entry and inspection, the role of private sector surveys and ensuring data/statistics for all New Zealanders.
Action: Submitted to Select Committee in December 2021
Outcome: Awaiting report of Select Committee
Environment & Infrastructure
Proposals for a New Waste Strategy – Issues and Options for New Waste Legislation
Published: December 15, 2021
Submitting To: Ministry for the Environment (MfE)
Issue for Business: MfE has issued a Consultation Document on a broad range of issues surrounding waste policy in NZ, including proposals for new waste legislation to replace the Waste Minimisation Act 2008. The underlying theme from the Consultation Document is that NZ needs to change the way we think and live when it comes to the way we use materials. This means shifting from our current 'take-make-dispose' system and moving towards a low-waste, more circular economy.
Action: BusinessNZ has made a submission to MfE and has raised a number of issues in respect to waste policy in NZ, including the fundamental point that there is an optimal amount of waste, and that waste cannot be eliminated completely, at least without great cost.
Outcome: MfE is currently reviewing submissions before proposals are firmed up.