Advocacy Report Reader
Economy
Retail Payment System Bill
Published: December 8, 2021
Submitting To: The Economic Development, Science and Innovation Select Committee
Issue for Business: BusinessNZ has submitted on this issue a number of times in recent years, where we have discussed the best way forward in terms of industry vs Government led regulatory options. Given the high likelihood of the Bill passing, we have focused our comments on how the Bill would fit with the broader retail payments regulatory environment once all policy work is taken into account, as well as a full review of the Act to take place in 5 years’ time.
Action: Submitted to the Select Committee on 25 November.
Outcome: Awaiting outcome of submission process.
Energy
Electricity Industry Amendment Bill
Published: November 17, 2021
Submitting To: The Economic Development, Science and Innovation Select Committee
Issue for Business: The Bill implements changes recommended by the Electricity Price Review, seeking to strengthen consumers' voice and provide an effective regulatory framework for the electricity industry in view of rapidly evolving technologies and business models. Our draft submission is generally supportive of the changes, although we recommend some changes: • Refer to the newly established entity as the Small Consumer Advocacy Council (rather than Agency) • Remove Clause 6 under Schedule 1, Part 1, which would impose costs retrospectively • Request future changes to the Act or Code are well-signalled and thoroughly consulted on • Consider compensation arrangements for organisations required to provide information for ministerial investigations or reviews • Provide further detail of the purpose and nature of information to be shared between agencies. • Consider arrangements to notify participants of what information is being shared and when.
Economy
Towards a Digital Strategy for New Zealand
Published: November 10, 2021
Submitting To: Department of Internal Affairs (DIA)
Issue for Business: The last time a nationwide digital strategy took place was 2005, which was updated in 2008. While BusinessNZ welcomes consultation on this new strategy, we believe the strategy itself is underwhelming. We are concerned that if the strategy does not cover all key bases, it will not lead to New Zealand harnessing its digital opportunities across the ecomomy.
Action: Submission sent - 10 November 2021
Outcome: Awaiting feedback on submissions
Energy
Land Transport (Clean Vehicle) Amendment Bill
Published: November 4, 2021
Submitting To: Transport and Infrastructure Select Committee
Issue for Business: Decarbonising our transport sector is an of the obvious way for New Zealand to reduce its energy emissions. With transport emissions one of the country’s fastest growing sources of greenhouse gas emissions we do not underestimate the challenges faced in moving to a net zero carbon economy. In principle, we support the introduction of a Clean Car Standard. However, we have some concerns about the currently proposed emission targets. The submission addresses some of those and proposes alternative targets.
Environment & Infrastructure
Managing our Wetlands – A Discussion Document on proposed changes to the wetland regulations
Published: October 27, 2021
Submitting To: Ministry for the Environment (MfE)
Issue for Business: In 2020 Regulations on National Environmental Standards for Freshwater essentially prohibited earthworks on all 'natural wetlands' - the definition of which is extremely broad. This has resulted in the ability to undertake certain activities such as quarry and building being seriously jeopardised. After significant lobbying from BusinessNZ and other organisations, the Ministry for the Environment has released a Discussion Document which proposes a narrower definition of 'natural wetland' and has proposed that activities like quarrying and housing subdivisions near wetlands should have a consenting pathway as discretionary rather than prohibited activities.
Action: BusinessNZ has made a submission to MfE broadly supporting the proposed changes by MfE. However, BusinessNZ has outlined our view that the new regulations for wetlands should provide businesses with opportunity to seek consents without distinction between types of mineral mined, or types of mines or quarries being operated. In this respect, regulations should be about addressing activities' effects, not the activities themselves.
Outcome: Awaiting Government decisions
Economy
COVID-19 Response (Management Measures) Legislation Bill
Published: October 5, 2021
Submitting To: Finance and Expenditure Select Committee
Issue for Business: An Omnibus Bill making a number of changes to various pieces of legislation as a result of Covid-19 restrictions. Most of the changes are straightforward and logical but one issue in particular is problematic - the requirement for commercial tenants and landlords to come to an agreement to adjust the rent (including outgoings) due under their leases. This would mean the parties share the financial burden of the Covid-19 response with ways of resolving disputes if no agreement can be reached. BusinessNZ is concerned that this approach rides rough-shod over existing property rights.
Action: A submission has been made to the Finance and Expenditure Select Committee outlining our opposition to this proposal and recommending that Schedule 6, Part 4: Amendments to Property Law Act 2007 be deleted.
Outcome: This legislation has been passed into law under urgency with very minor changes to the original Bill. However, the minor amendments to the original Bill do not impact materially on the overall outcome.
Environment & Infrastructure
Designing a governance framework for the New Zealand Emissions Trading Scheme
Published: September 17, 2021
Submitting To: Ministry for the Environment (MfE)
Issue for Business: Submission from BusinessNZ, BEC The Government seeks to improve the current market governance framework to manage the risk of misconduct in relation to the New Zealand Emissions Trading Scheme and protect users from financial harm.
Action: Submissions close 17 September 2021. Feedback required by close of business Monday 13 September 2021.
Environment & Infrastructure
Submission on reforming industrial allocation in the New Zealand Emissions Trading Scheme
Published: September 17, 2021
Submitting To: Ministry for the Environment (MfE)
Issue for Business: Concern that there have been significant changes already to the NZ ETS and the impact this has on EITE businesses. ETS is being undermined by measures that are unnecessary. MfE to be clear about the impacts of climate policy on EITE businesses. Recommend analysis of value to the New Zealand business ecosystem and the pros and cons of this.
Action: Submitted 17 September 2021
Resource
Proposed Regulations to support the Crown Minerals (Decommissioning and Other Matters) Amendment Bill
Published: September 7, 2021
Submitting To: Ministry of Business, Innovation and Employment (MBIE)
Issue for Business: Submission from BusinessNZ and BEC The focus is on the multiple layers of requirements introduced, sovereign risk issues, the effect on investment and likely impacts to energy security and affordability. Also restate our opposition to the perpetual liability issues created by the draft Bill, which holds permit and licence holders liable for decommissioning costs, even if they transfer out of a permit
Action: Submission close 7 September 2021. Comments due by close of business Monday 1 September 2021.
Economy
BusinessNZ submission on the scope of IRD’s long-term insights briefing
Published: September 6, 2021
Submitting To: Inland Revenue Department (IRD)
Issue for Business: BusinessNZ’s submission on IRD’s consultation paper entitled ‘Tax, Investment & Productivity’, which examines the intended scope of their long-term insights briefing that they will work on once this consultation period has concluded.
Action: Submission sent.
Outcome: Awaiting publication of IRD document.
Environment & Infrastructure
Crown Minerals Act (Decommissioning and Other Matters) Amendment Bill
Published: August 19, 2021
Submitting To: The Economic Development, Science and Innovation Select Committee
Issue for Business: Submission from BusinessNZ and BusinessNZ Energy Council The Bill introduces a number of new requirements for permit and licence holders including: Introducing a statutory obligation to decommission Introducing civil pecuniary and criminal penalties Introducing perpetual liabilities on former permit and licence holders Empowering minister to monitor financial positions Requiring financial securities Requiring payments towards a post-decommissioning fund This submission focuses on the perpetual liability issues created by holding permit and licence holders liable for decommissioning costs, even if they transfer out of a permit.
Action: Draft submission sent out 12 August for comments due 17 August. The submission closes on 19 August 2021.
Economy
Monetary Policy
Published: August 16, 2021
Issue for Business: Impact on the availability and cost of capital to business
Action: Government currently reviewing the Reserve Bank Act with a number of consultation phases which BusinessNZ has been involved in. Latest being emphasis on financial stability rather than efficiency which is problematic. Capital Adequacy requirements which will require banks to hold more capital funding currently on hold (due to Covid-19) but likely to proceed while details surrounding the Mandatory Depositor Insurance is currently underway. Debt to Income Ratios are also likely to be introduced.
Outcome: While BusinessNZ continues to promote the importance of a sound financial system, we continue to point out the potential for unintended consequences, including the cost and availability of capital, if the Reserve Bank takes a very conservative approach to managing risk.