Friday, April 30, 2010

Rugby World Cup: Making the most of our opportunities

The Rugby World Cup 2011 will be the largest sporting event ever to be held in New Zealand. Thousands of international visitors will be coming to our country to share the experience. Some of those visitors will be interested in business opportunities.

This week we launched the New Zealand 2011 Business Club online platform to match them with New Zealand businesses in the same areas of interest, coming to their regions.

Both New Zealanders and visitors can sign up and indicate the social and business activities of interest during the Rugby World Cup. The National-led Government is also working on a programme to showcase the best of New Zealand industry during the World Cup.

The club is free to join and will provide the basis for developing stronger business connections.

Learn more and sign up at www.nz2011.govt.nz

Reviewing the impact of alcohol in our lives

The Law Commission’s report on alcohol, Alcohol in Our Lives: Curbing the Harm was released this week. It is the first ground-up review of our alcohol laws in 24 years and received almost 3000 submissions.

Reducing alcohol-related harm has been identified as a priority for addressing the drivers of crime. Police report that alcohol is a factor in nearly one third of all recorded crime.

It is extremely unlikely that the Government will move to raise excise tax as part of its alcohol reform agenda. However, legislative changes to alcohol laws are likely. The Government’s response is likely to be framed as regulatory in nature, with an emphasis on alcohol availability and licensing.

The Government is carefully considering the 153 recommendations in the report, and expects to outline its position on the report in the coming weeks.

For more information visit: http://www.beehive.govt.nz/release/government+welcomes+law+commission039s+alcohol+report

Incentives to quit smoking

This week the Government increased the excise tax on cigarettes and tobacco. Smoking is the leading cause of preventable death in New Zealand. It is directly linked to almost 5000 deaths each year. University of Otago research shows that when cigarette prices rose steeply between 1995 and 2000, smoking fell.

We are working to reduce smoking, discourage young people from starting to smoke, and improve the health of New Zealanders.

One of the six current health targets is to provide better help for smokers to quit. We fund the Quitline free telephone support service, subsidise nicotine replacement therapy, Aukati kai paipa face-to-face quit support services, and information campaigns to help people quit. Increasing the cost of cigarettes, subsidising treatment and support, and providing good information all contribute to reducing smoking.

For more information visit: http://www.beehive.govt.nz/release/tobacco+excise+increase+immediately

Rebuilding trust in our financial markets

National is working to restore the confidence of mum and dad investors, while developing capital markets to help businesses grow. On too many occasions in finance company collapses we heard of investors' money falling to the floor through the cracks between regulators.

A new “super regulator” for our financial markets will be up and running early next year.

The Financial Markets Authority will enforce securities, financial reporting, and company law applying to financial services and securities markets. It will also regulate and oversee trustees, auditors, financial advisers, and financial service providers including people who offer investments.

The Financial Markets Authority will focus on visible, proactive, and timely enforcement.

For more information visit: http://www.beehive.govt.nz/release/government+announces+%e2%80%98super-regulator039+financial+markets

Budget 2010: Helping New Zealand families get ahead

The Budget next month will help New Zealanders and their families get ahead by focusing on four main goals: lifting the long-term performance of the economy, reforming the tax system, better delivery of public services, and maintaining firm control of the Government’s finances.

The National-led Government will continue to improve public services, funding them from cuts to low-quality spending and from the new operating allowance. We will live within the $1.1 billion operating allowance for new spending and will restrict annual increases from this figure to 2 per cent per year from next year.

Even with this restraint, core Crown debt is forecast to triple to about $65 billion by 2014, as we borrow to fund the deficits. To turn this round, the Budget will redirect another $1.8 billion of lower-quality spending between now and 2014 into high-priority areas, such as health care, education, and law and order.

For more information visit: http://www.beehive.govt.nz/speech/speech+wellington+regional+chamber+commerce+3

Friday, April 23, 2010

Environment: Taking responsibility on emissions

National believes New Zealand must do our fair share to reduce carbon emissions. Delaying the Emissions Trading Scheme (ETS) is not in New Zealand’s best interests.

We have moderated the ETS established under Labour by scaling back the impacts on carbon emitters. The changes to Labour’s scheme will halve the cost for families and businesses.

Without an ETS, New Zealand would continue to see more deforestation and a reduction in tree planting. New data shows that the ETS has reversed the trend towards reforestation.

There will be a formal review of the ETS in 2011. Part of that review will look at progress by our major trading partners. If progress is lagging, the review may recommend changes to the ETS.

National believes that we have a role to play in tackling climate change. We hosted the inaugural meeting of the Global Research Alliance this month (April), and provided $45 million of funding over four years. We’ve also allocated $50 million over 10 years for the Centre for Agricultural Greenhouse Gas Research to help reduce on-farm carbon emissions. And we’ve invested $347 million in a home insulation scheme to help families save on energy costs.

With these initiatives, and the ETS, National will continue to balance New Zealand’s economic opportunities with our environmental responsibilities.

Declaration on the Rights of Indigenous Peoples

Indigenous rights and culture are important to New Zealand, and fundamental to our identity as a nation.

The Treaty of Waitangi continues to be the basis for the Crown-Māori relationship. The United Nations Declaration on the Rights of Indigenous Peoples contains principles consistent with the duties and principles inherent in the Treaty of Waitangi, such as operating in the spirit of partnership and mutual respect.

Many of the rights in the Declaration have been enjoyed in New Zealand for years. They include practising and revitalising cultural traditions and customs, living in freedom, peace and security as distinct peoples, and participating in decisions in matters that affect their rights.

The Declaration is an affirmation of accepted international human rights, and also expresses new, non-binding, aspirations. By supporting the Declaration, New Zealand both affirms those rights, and reaffirms the legal and constitutional frameworks that underpin New Zealand’s legal system.

For more information visit: http://www.beehive.govt.nz/release/national+govt+support+un+rights+declaration

Budget 2010: GST and superannuation – what you would get

National believes that lower personal taxes across the board are a good thing. We want to give people incentives to work hard, improve their skills, and get ahead here in New Zealand.

To do this, we need to change the mix of taxes. Any tax switch involving cutting personal taxes across the board and raising GST to 15 per cent would leave the vast bulk of New Zealanders better off.

For New Zealanders on national superannuation, an increase in GST would be accompanied by immediate compensation for the one-off impact of higher GST. This would happen on the day of any GST increase.

To offset other ongoing price increases, the usual annual inflation adjustments will also be made to superannuation rates, so that superannuitants’ spending power is preserved.

In addition, across the board personal income tax cuts would increase the amount of superannuation that people receive in the hand.

Our tax package will be broadly cost neutral, with a focus on fairness. We’re committed to protecting the most vulnerable, while improving New Zealand’s long-term prospects.

For more information visit: http://www.beehive.govt.nz/speech/speech+wellington+regional+chamber+commerce+3

Budget 2010: Extra $1.8 billion to frontline services

The Budget next month will redirect $1.8 billion of lower quality government spending into frontline public services between now and 2014. This follows Budget 2009 redirecting $2 billion to higher priority initiatives.

That’s a significant sum of money we’re making available for important areas such as better healthcare services, better education, and keeping New Zealanders safe.

The National-led Government will continue to weed out low quality spending. We will live within the $1.1 billion annual operating allowance for new spending we have set ourselves.

For more information visit: http://www.beehive.govt.nz/release/budget+frees+another+18b+priority+spending+0

Thursday, April 1, 2010

Cabinet will consider cameras in taxis

Transport Minister Steven Joyce will take a proposal to Cabinet to make security cameras mandatory in all taxis operating in our major towns and cities.

The recommendation for cameras comes in a report from officials who investigated taxi security after the death of Auckland driver Hiren Mohini in late January. Mr Mohini’s death was the second of an on-duty taxi driver in 14 months. There have been a number of other serious assaults, with many taxi drivers no longer enjoying safe working environments – particularly at night and particularly in our main centres.

For more information visit: http://www.beehive.govt.nz/release/minister+recommend+cameras+taxis

Future Focus: Rebalancing obligation and support

For most people, a benefit should only provide temporary support until they can return to work.

The Future Focus welfare package announced last week delivers on National's pre-election commitments, and rebalances the expectations and obligations of our welfare system.
The changes aim to support those in genuine need, while also being fair to taxpayers.

Around 345,000 New Zealanders receive a benefit, and this year, will cost taxpayers more
than $7.6 billion - that’s $20.8 million a day. We want to ensure this money is spent effectively.

Research shows that children are always better off when parents are in work. Long-term
welfare dependency imprisons families to a life of low income with limited choices and
outcomes.

The changes will be introduced from October 2010.
For more information visit: http://www.beehive.govt.nz/release/future+focus+better+work+approach

Making environmentally sound choices

A geothermal power station near Taupo is the first project to be fast-tracked under National’s
streamlined Resource Management Act.

Part of our reforms was establishing the Environmental Protection Authority (EPA) to centralise
and streamline decision making on nationally significant proposals.

Contact Energy's proposed 240-megawatt station near Taupo could provide power for up to
180,000 Kiwi homes. National’s objective is to do these major projects once and do them
properly.

Under the amended RMA, Contact Energy applied directly to the EPA without a call-in from a
regional or territorial authority. A decision on the application must be made within nine months
of public notification.

Streamlining the RMA, and the establishment of the EPA are part of our strategy to encourage
the development of renewable energy.

For more information visit: http://www.beehive.govt.nz/release/first+epa+request+referred+board+inquiry

Economy keeps growing

Economic activity grew 0.8 per cent in the December quarter, boosted by manufacturing
activity, up a healthy 4.5 per cent. This is the first growth in the sector for almost two years.

Retail, accommodation, and restaurants grew by 1.7 per cent.

The 0.8 per cent rise followed an increase of 0.3 per cent in the September 2009 quarter, and
is the third consecutive quarter of growth in the economy.

The Budget in May will set out National’s next steps to lift economic growth by tilting the
playing field towards productive investment, exports and new jobs.

We want to lift business confidence, increase incomes, and help New Zealand families get
ahead.

For more information visit: http://www.beehive.govt.nz/release/recovery+strengthens+challenges+remain

Foreshore and seabed - Getting the balance right

National is committed to ensuring that the interests of all New Zealanders in the foreshore and seabed are recognised and protected.

We believe the Foreshore and Seabed Act 2004 should only be repealed if a satisfactory replacement can be found.

The Government’s proposal is that no one owns, or can own, the foreshore and seabed. The name would be changed from ‘foreshore and seabed’ to ‘public domain’, or takiwā īwī whānui.

Our proposal would provide public access for all, and restore the right of Māori to go to court to establish customary title. It would assure respect for rights and interests, and existing use rights would be protected until the end of their term. Parts of the foreshore and seabed already in private ownership would not be affected.

Our bottom line has always been public access to the foreshore and seabed. But we also want to put in place a way for iwi to have their interests recognised.

A consultation document was released yesterday and I urge you to have your say. The document and information about making a submission can be found at www.justice.govt.nz.

Submissions clos at 5pm on Friday 30 April.

Boosting our economic potential

Economic growth matters. Only through lifting our economic growth can we create new jobs, boost wages, raise living standards, and provide the high-quality public services that Kiwi families need.

New Zealand is an energy-rich country. We have extraordinary renewable energy resources, such as wind, hydro, and geothermal power. And we have fantastic natural resources which could make a significant contribution to our economic prosperity.

Mining in New Zealand is already a $2 billion industry, which contributes to export receipts and government revenue. Including oil and gas, mining employs 6000 people - and the jobs are well paid.

Our mineral resources, even excluding coal and other hydrocarbon-based minerals, are estimated to be worth $194 billion.

However, much of that mineral potential is concentrated in public conservation areas with high conservation and cultural values.

The National-led Government has conducted a preliminary stocktake of land in Schedule Four of the Crown Minerals Act, where all mining other than minimum impact activity is prohibited. This reveals that if a very small proportion of these lands is responsibly developed, New Zealand could greatly benefit from increased jobs and growth.

We recently published this stocktake. It contains proposals to remove 7058 hectares of land from Schedule Four, including some areas in the Coromandel Peninsula and Great Barrier Island, and the Inangahua sector of Paparoa National Park on the West Coast.
The 7058 hectares are just 0.2 per cent of the 3.5 million hectares of Schedule Four land. If development went ahead, only about 5 per cent of the land might actually be mined. This is as little as 500 hectares, which is smaller than an average New Zealand sheep and beef farm.

There are, broadly, three tests that need to be met if we’re going to extend our mining activities. We need to demonstrate that there would be an increase in investment and in jobs. We need to prove to New Zealanders that the economic benefits of extending mining will largely stay in New Zealand. And we need to prove that we can mine these areas in an environmentally responsible way.

We believe all three of those things are possible, and that will be at the core of the discussion we’ll be having with New Zealanders over the next five weeks.

I urge you to read the discussion document and make a submission. The document is available at the Ministry of Economic Development website www.med.govt.nz/schedule4. Submissions close at 5pm on Tuesday, 4 May 2010.

Gardies Closure

It is a sad day in scarfieville, with the news that iconic University of Otago pub the Gardens Tavern has been sold to the University and will soon close as a pub. The sale took place in the face of a student and Mark Ellis-led bid to raise community cash to purchase the Tavern and continue to run it.

I'm not surprised that the Gardies was put up for sale, or for that matter that the University bought it. The Gardies is in the middle of a dense residential area and has been unsuccessful in attempts to have its liquor licence extended past midnight at the weekend and 11p.m. on weeknights. This, combined with the changing drinking habits of students who pre-load at home prior to going out means that the market window for the Gardies was very small. Even if the Gardies was retained, the new owners would have had to think long and hard about the business model used and the products available to draw punters in.

The University will probably use the land for accommodation in a similar way to the post-grad accommodation at the former Abbey Lodge across the road. Further signs of confidence in the Uni's growth prospects. With the Bowler and Gardies now gone I hope there are sufficient watering holes for the increased numbers to go!

I look forward to the final party. Might have to go in disguise.....