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Building a Brighter Future
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Prime Minister John Key today outlined the four key priorities the National-led Government will focus on during its second term in office, and also provided an update on the path towards a surplus in 2014/15.
Can I start by saying that it’s a tremendous privilege to have won the trust and goodwill of New Zealanders for a second term in Government.
In this edition of Key Notes, I outline the main features of the Government's priorities over the next few years.
Canterbury Earthquake Recovery Minister Gerry Brownlee says today's commencement of construction on the first multi-level building in Christchurch’s CBD since the February 22 earthquake is an important milestone.
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Local Government Minister Nick Smith and the Christchurch City Council have met today and agreed to the appointment of a Crown Observer to assist the Council.
"The appointment of a Crown Observer onto the Christchurch City Council will help address any governance issues and work to rebuild the public confidence in the Council," Dr Smith says.
"Effective governance has never been so important in the city's 150 year history. I have emphasised to the Council that people have a choice whether to stay or invest and they are looking to the Council for effective leadership that will give them confidence in the future of Christchurch.
"The role of the Crown Observer will be to rebuild good professional relationships between the Mayor, Councillors and staff and to provide guidance on how they can effectively govern at this challenging time.
"The Crown Observer will help the Council address widely-held concerns that its decision making and governance roles are becoming dysfunctional.
"These failings cannot be left to undermine the valuable recovery work the Council is doing. I hope that by working with the Crown Observer, the Council will make any consideration of further Government intervention in the Council unnecessary," Dr Smith says.
Kerry Marshall, MBE, former President of Local Government New Zealand, former Mayor of both Nelson City and Tasman District, and a former Local Government Commissioner has been appointed as the Crown Observer and will attend his first Council meeting this Monday (30 January).
Related document:
Crown_Observer_Proposal.pdf (pdf 11.35 KB)
The Minister of Defence is attending defence talks in Europe next week after the bilateral meeting with the Australian Defence Minister and attending the joint Australian New Zealand Cabinet meeting in Melbourne this weekend.
On Sunday evening Hon Dr Jonathan Coleman will travel to London to meet defence leaders and to hold talks related to his State Services portfolio.
He will then attend the ISAF Defence Ministers meeting in Brussels for talks on support and transition in Afghanistan. Dr Coleman will also hold a series of bilateral meetings with senior ISAF and NATO political and military figures.
While in Belgium the Minister will also attend a special ceremony at Messines Ridge near Ieper on February 3rd for the reburial service of the remains of a New Zealand soldier. The World War One soldier’s remains were discovered with his NZ Rifle Brigade hat badge, shoulder badge and rifle brigade buttons.
Social Development Minister Paula Bennett is delighted with the response to the Green Paper both in terms of turn out and contributions.
“I have been fronting up and listening to a huge range of New Zealanders from local iwi in Whangarei to staff in the lunch room at Carter Holt Harvey, to a children's panel in the Waikato,” says Ms Bennett.
The Minister’s Green Paper tour which started in Kaitaia will end in Invercargill with meetings in 17 towns and cities including all of New Zealand’s main centres.
The Green Paper camper van is also visiting 32 destinations nationwide and Green Paper Champions have held public meetings across the country to stimulate debate and encourage submissions.
Meetings have been held in community centres, theatres, offices, lunch rooms and meeting places. Many have been so well attended that there has been standing room only.
"For some it’s been emotional and even frustrating at times, but that’s the nature of things when we're dealing with uncomfortable issues,” says Ms Bennett. People can make submissions on the Green Paper in a number of ways including attending meetings, stopping at the Green Paper camper van, posting on Facebook, email or post.
Submissions now total 1,275 and with the close date of 28 February fast approaching they are flowing in at an increasing rate.
Nelson, Blenheim and Kaikoura will be hosting meetings with the Minister on Thursday next week and final dates for the rest of the South Island are to be publicised shortly.
“This is genuine public consultation, people’s views on these issues are important and all submissions will contribute to a White Paper and a ten year plan to better protect and nurture our most vulnerable children.”
Canterbury Earthquake Recovery Minister Gerry Brownlee has today announced the extension of the Government’s buy-out offer to residents of rest homes and retirement villages in Christchurch’s residential red zone.
Mr Brownlee said he was very pleased to be able to make the announcement, as the issue had caused understandable concern to the residents affected.
"This complex matter has been a focus for the Canterbury Earthquake Recovery Authority’s policy team for a number of months, so it's great news that a solution has been found.
"Extending the scheme was complicated by the fact that rest homes and retirement villages are, strictly speaking, commercial businesses and our focus has been on making offers to private residential property owners in order to help people move on with their lives.
"However, it was obvious the residents of rest homes and retirement villages fell into a category other than commercial business, and a solution had to be found to assist those residents as well."
The extension is to residents of four developments - Kate Sheppard Gardens, Kate Sheppard Lifecare, Avonview Retirement Village, and St Ives Rest Home. Letters have been sent to the four business owners advising them of the change.
A letter of offer to each resident will follow shortly, and CERA will work with the rest home and village owners as quickly as possible to ensure the residents are assisted.
CERA is responsible for coordinating and leading the rebuild of Canterbury and supporting the welfare of its residents. For more information visit www.cera.govt.nz
"Moments like this need to be recognised," Mr Brownlee said.
"Today's commencement of construction demonstrates a belief in the future of the central city by the building’s owners, and by the tenants they have secured to occupy the building.
"It sends a message to other property owners in the central city that investing in the future of Christchurch can happen now, ahead of completion in the CBD demolition programme."
This new building is being built on the original Harcourts Grenadier Real Estate building site at 271 Madras Street, which was demolished as a result of damage from February 22 earthquake
The four level building will be constructed to the highest earthquake engineering standards and is due for completion by Christmas. As many as 150 people are expected to be employed during its construction.
Mr Brownlee said he had been encouraged by commercial developments across greater Christchurch receiving consent, gaining appropriate contract works insurance cover, and getting underway.
"Today's commencement of work follows the news of piles being driven on the $20 million Latimer Lodge hotel site at Latimer Square, and consent being granted for a $7 million 20-shop boutique mall in the old Woolston Tannery complex on Cumnor Terrace.
"We're also aware of supermarkets, aged care facilities and other commercial developments getting underway across the region.
"New Zealanders can take heart that commercial redevelopment of Christchurch is well underway," Mr Brownlee said.
Land Information Minister Maurice Williamson and Associate Minister of Finance Dr Jonathan Coleman have accepted the recommendation of the Overseas Investment Office (OIO) to grant consent to Milk New Zealand Holding Limited (Milk New Zealand), a subsidiary of Shanghai Pengxin Group Co. Limited, to acquire the 16 Crafar farms.
"It is clear that all criteria under sections 16 and 18 of the Overseas Investment Act 2005 have been met, therefore we accept the recommendation of the OIO to grant consent," Mr Williamson said.
"We are satisfied that Milk New Zealand's application for consent meets the criteria set out in the Act," Mr Coleman said.
The approval follows the receivers, KordaMentha’s acceptance in late 2010 of Milk New Zealand’s bid for the farms.
Milk New Zealand’s acquisition will further support the supply of high quality dairy products into the Chinese market and help set the foundations for further economic and export opportunities with China.
Stringent conditions policed by the OIO will ensure that Milk New Zealand's investment delivers substantial and identifiable benefits to New Zealand. These include investing more than $14m into the farms making them more economically and environmentally sustainable; protecting the Nga Herenga and the Te Ruaki pa sites and improving walking access to the Pureora Forest Park and Te Rere falls. An on-farm training facility for dairy farm workers will also be established.
A copy of the OIO's recommendation is available at: http://www.linz.govt.nz/sites/default/files/docs/overseas-investment/oio-recommendation-crafar-farms-20120127.pdf
A copy of the OIO’s Decision summary is available at: http://www.linz.govt.nz/sites/default/files/docs/overseas-investment/decision-summary-milk-nz-holding-limited-201110035.pdf
OIO background information is available at: http://www.linz.govt.nz/sites/default/files/docs/overseas-investment/oio-background-information.pdf
Questions and answers
Which Ministers made the decision?
The deciding Ministers were Associate Minister of Finance Hon Dr Jonathan Coleman and Minister for Land Information Hon Maurice Williamson.
What were the criteria for consent?
After a comprehensive review and consideration of the OIO’s recommendation, Ministers were satisfied that Milk New Zealand met all of the relevant criteria in the Overseas Investment Act 2005, and therefore accepted the OIO’s recommendation to grant consent.
The "substantial and identifiable benefit to New Zealand" criteria were satisfied by particular reference to the following factors:
What are some of the proposed benefits Ministers considered before granting consent?
Benefits considered by Ministers included the intention of Milk New Zealand to invest more than $14m in the properties to make them more economically and environmentally sustainable.
Milk New Zealand will also ensure protection of two important pa sites (the Nga Herenga pa and the Te Ruaki pa), and provide improved public walking access to the Pureora Forest Park and Te Rere falls.
Milk New Zealand will also establish an on-farm training facility for dairy farm workers.
Milk New Zealand intends to engage Landcorp Farming Limited (Landcorp) to manage the farms. The Overseas Investment Office considers that the involvement of Landcorp makes it more likely that the expected benefits will occur.
In addition, Ministers have imposed comprehensive conditions of consent on the company to ensure that the benefits proposed by Milk New Zealand are delivered.
What conditions of consent did the Ministers impose on Milk New Zealand?
Conditions of consent imposed by Ministers include the following: The individuals with control of Milk New Zealand must continue to be of good character
Milk New Zealand agreed to all conditions of consent imposed by Ministers.
How did Milk New Zealand satisfy the business experience and acumen requirement?
The Overseas Investment Act 2005 requires the individuals with control of the relevant overseas person to collectively have business experience and acumen relevant to that overseas investment.
The level of business experience and acumen required to satisfy this condition may vary according to the nature of the investment. In this case, the overseas investment is the acquisition of a large corporate farming business. The Ministers considered that the individuals with control have sufficient business experience and acumen to operate a large business of this nature.
Milk New Zealand is a subsidiary of Shanghai Pengxin Group Co. Limited, a fast growing international agribusiness which includes investment in sheep breeding, wheat, soy and maize production in China and South America.
Shanghai Pengxin has obtained advice from leading New Zealand consultancies such as Perrin Ag, Landcorp and PwC. Shanghai Pengxin will also employ two New Zealand directors and an independent chairman to the board of Milk New Zealand.
Was the Ministers’ decision influenced by New Zealand’s Free Trade Agreement with China?
No. Ministers were satisfied that Milk New Zealand met all of the relevant criteria under the Overseas Investment Act 2005. Ministers can only have regard to the criteria and factors outlined in the Overseas Investment Act 2005.
Every application is decided on its individual merits and the outcome would be the same even if New Zealand did not have a Free Trade Agreement with China.
What is the total land area of the Crafar farms?
The 16 Crafar farms have a combined area of approximately 7,893 hectares.
How much agricultural land has been the subject of consents granted in the last two years?
In the last two years, consent was granted for overseas persons to acquire 357,056 hectares of agricultural land.
Where did the investors that gained consent to acquire land for agriculture over the last two years come from? Consents granted involving agricultural land by country of majority ownership, are:
Excluding Hong Kong, there were no other consents granted to Chinese investors to purchase land for agriculture during the last two years.
What happens if Landcorp decides not to manage the properties? Would consent be revoked?
If Milk New Zealand does not enter an agreement with Landcorp to manage the farms, the conditions of consent require Milk New Zealand sell the properties. All conditions of consent will be strictly monitored by the OIO.
Why did it take so long for the OIO to assess Milk New Zealand’s application?
Milk New Zealand’s application was extremely complex due to the number of properties involved, with each having its own unique issues that the OIO needed to consider.
For applications like Milk New Zealand Holdings Limited, the OIO aims to make decisions within 70 working days, excluding the time it takes for an applicant to provide information requested by the OIO and for Ministers to reach a decision.
The OIO took a total of 54 working days to assess the application and Milk New Zealand took 123 working days in total to provide information requested by the OIO.
Why didn't Ministers or the OIO let the consortium led by Sir Michael Fay buy the farms?
It is important to note that Ministers and the OIO were not involved in accepting the bids for the Crafar farms. This question is best directed to the receivers, KordaMentha.
What impact will the legal proceedings filed by the consortium led by Sir Michael Fay have on the consent granted to Milk New Zealand?
We cannot comment as this matter is currently before the Court.
Core Crown tax revenue was about $500 million below forecast in the five months ending 30 November, reinforcing the need for ongoing spending restraint and responsible fiscal management, Finance Minister Bill English says.
“The Government is committed to reducing its deficits over the next two years and returning to surplus in 2014/15,” he says. “This won’t be easy, particularly with ongoing debt problems in Europe reducing forecasts for global growth.
“However, returning to surplus and repaying debt are among the most important things the Government can do to ensure New Zealand can withstand future shocks and build a more competitive economy based on exports and new jobs.”
The Government’s operating deficit before gains and losses was $4.48 billion in the five months to 30 November. This was $252 million larger than forecast in the pre-election update in November – reflecting lower than forecast tax revenue, which was partly offset by lower than forecast core Crown expenses.
Costs from the latest Canterbury earthquake on 23 December will be included in the Crown accounts when the Earthquake Commission has measured the financial impact.
Mr English says the Budget Policy Statement, to be issued on 16 February, will confirm the Government remains on track to post a budget surplus in 2014/15.
“Not surprisingly, given the more subdued global economic outlook, that surplus now looks like being smaller than the $1.5 billion forecast in the pre-election update – at somewhere between $300 million and $500 million.
“As the Prime Minister said yesterday, returning to surplus is important to our plan to limit debt and take pressure off interest rates and the exchange rate,” Mr English says.
The Government has announced a series of hui to consult with Maori on legislative changes it considers are necessary for the float of minority shareholdings in four State Owned Enterprises to New Zealanders.
Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall will lead the February consultation process with iwi around the country, which will be facilitated by Sir Wira Gardiner.
The Government is also seeking written submissions through a consultation document on its proposal to remove Genesis Energy, Meridian Energy, Mighty River Power and Solid Energy from the SOE Act and put them under new legislation that ensures the Government retains at least 51 per cent ownership and other individual shareholdings are limited to 10 per cent, Mr English said.
"We promised to talk with iwi when we originally announced plans to partially sell the four energy companies and Air New Zealand last year,” Mr English said. “We want to understand Maori views before we take final decisions.”
Mr Ryall said the consultation will not cover specific investment opportunities, but iwi investment on a commercial basis will be welcomed.
"The Government has promised all New Zealand investors they will be at the front of the queue for shares."
Mr English said the five partial share floats will free up billions of dollars for investment in schools, hospitals and public infrastructure – and help ensure New Zealand avoids the kind of debt crisis faced by Europe.
The consultation document, together with information on how to make written submissions, will be available from 1 February 2012 at: www.treasury.govt.nz/mixed-ownership-consultation
The deadline for receipt of submissions is 5pm on 22 February 2012.
The schedule for hui is:
10.00am
Distinction Rotorua
Rotorua
8 February
3.00pm
Waikato Stadium
Hamilton
9 February
Whanganui Racecourse
Whanganui
10 February
9.30am
Toll Stadium
Whangarei
3.30pm
Novotel Auckland Airport
Auckland
14 February
Waihopai Runaka Murihiku Marae
Invercargill
4.00pm
Chateau on the Park
Christchurch
15 February
Emerald Hotel
Gisborne
Te Puni Kokiri
Wellington
Arts Culture and Heritage Minister Christopher Finlayson today welcomed the return of 20 Toi moko (mummified Māori Heads), formerly held in French institutions, to New Zealand.
“This is a wonderful day for the people of New Zealand and for those Maori whose ancestors’ remains have been returned home,” Mr Finlayson said. “Toi moko have a great deal of cultural and spiritual value to New Zealand and especially to Maori.”
The French Parliament voted in May 2010 to allow the repatriation of Toi moko, acknowledging the cultural and spiritual importance to New Zealand, and in particular to the Maori people, of bringing Toi moko home to their ancestral lands. The first Toi moko to be repatriated from French institutions arrived in may last year.
Since 2003, New Zealand authorities have followed a policy of facilitating the repatriation of Toi Moko and koiwi tangata Māori (Māori ancestral remains) from museums around the world. Toi moko and koiwi tangata form part of some museum collections of Pacific artefacts dating from the 19th Century.
The Toi moko will be held by the Museum of New Zealand Te Papa Tongarewa, which negotiates and facilitates the return of Toi moko and köiwi tangata Māori from overseas institutions on behalf of the New Zealand Government.
Toi moko and koiwi tangata are repatriated to Te Papa on an interim basis, and Te Papa works closely with iwi (Māori tribes) to determine their attributed place of origin, for eventual burial where possible on ancestral lands.
Prime Minister John Key today met with the 100 participants in this year's Prime Minister's Youth Programme – young people who have overcome adversity and made a real effort to turn their lives around.
The group of 14- to 17-year-olds from South and West Auckland were chosen to take part in the week-long programme in recognition of making positive, life-changing choices.
Youth Affairs Minister Paula Bennett also attended the celebration dinner at the Ellerslie Events Centre with the Prime Minister, along with business leaders, celebrities and leaders from the community.
"Every year I am really impressed by the young people I've met and the inspirational stories I've heard through this programme," says Mr Key.
"These young people have overcome numerous challenges and made a concerted effort to change their behaviour and lifestyles. They've decided to take responsibility for their futures."
The participants were nominated by community leaders, including school teachers and youth aid officers, after improving academic performance, or by moving away from anti-social behaviour such as truancy or low-level offending.
This is the third year of the programme, which sees the participants engaging in a number of activities, including the opportunity to learn from high achieving New Zealanders such as the Warriors and designer Trelise Cooper.
Participants in this year's programme will benefit from follow-up mentoring for up to three months after it finishes this week.
John talks about the ground he covered in today's speech on the economy, setting out the Government's main economic priorities over the next several years. To read the speech, go here.
Environment Minister Nick Smith today launched the environmental recovery plan, to address the long term effects of the Rena disaster on the wider Bay of Plenty region.
“This plan is needed to bring together a wide range of central, regional and local government organisations as well as iwi to ensure the long-term clean-up job is well coordinated,” Dr Smith says.
“The grounding of the Rena was New Zealand’s worst maritime environmental disaster. This plan has been developed to co-ordinate the long-term recovery and restoration of the Bay of Plenty environment. Our goal is to restore the Bay of Plenty environment to as close as is possible to it’s pre-Rena state,” said Dr Smith.
Following the ship’s grounding on 5 October, the appointed salvors have prevented further significant oil spills and removed some containers from the vessel. This and the work of Maritime New Zealand, iwi, community volunteers, New Zealand Defence Force, DoC and the Wildlife Recovery Team, have provided an effective emergency response.
“This plan identifies the environmental issues for the beaches, seabed, water, fisheries, wildlife and management of waste and sets out who is responsible for the recovery and monitoring of each. A governance group has been established to oversee the implementation of the plan and to make sure everything possible can be done to restore the environment,” Dr Smith says.
Dr Smith also announced that Catherine Taylor, formerly Maritime New Zealand’s Chief Executive has been appointed as the Rena Recovery Manager.
“We are very fortunate to get someone who has been so intimately involved in the everyday response to the Rena grounding to lead the coordination and implementation of the long term recovery plan. Ms Taylor’s appointment will mean a seamless transition from incident management to recovery implementation.
“Disasters can bring out the best in people and so, it has been here. I want to acknowledge the contributions of iwi and Councils to this plan and commit to working with them to restore the Bay of Plenty environment,” says Dr Smith.
Foreign Minister Murray McCully has announced that New Zealand will make an initial $350,000 available to support the response to the floods in Fiji.
"Sadly six lives have been confirmed as lost and over 1,500 people have been evacuated because of floods and bad weather affecting most parts of the country," Mr McCully said.
"The Western Division, including Nadi, Lautoka, Ba, Tavua and Rakiraki have been worst hit by flooding and many areas have been left with no power or water.
"New Zealand’s funding will be made immediately available to the Fiji Red Cross for the distribution of essential relief items to those in need, followed by other agencies identified as best placed to meet immediate needs.
"Assessments are on-going and New Zealand stands ready to consider additional assistance as further information comes to hand."
New Zealand is coordinating closely with authorities and relief agencies on the ground, as well as with Australia and France under the FRANZ arrangement.
Currently there are no reports of New Zealanders in need of urgent assistance in Fiji. New Zealanders in flood affected areas should follow the advice of tourism operators and the local authorities, stay in touch with friends and family in New Zealand and register their details with the Ministry of Foreign Affairs and Trade on www.safetravel.govt.nz.
Russian Minister of Foreign Affairs Sergey Lavrov will arrive in Auckland next Monday (30 January) for a two day visit to New Zealand, Minister of Foreign Affairs Murray McCully announced today.
“I am pleased to welcome Sergey Lavrov to New Zealand, particularly as his visit comes at a high point in New Zealand-Russia relations. We have completed three rounds of Free Trade Agreement negotiations and a number of other bilateral initiatives are in the pipeline,” Mr McCully said.
“The New Zealand-Russia relationship has strengthened over the past few years. Visitor numbers are at their highest levels; business interest has increased and the Russian rugby team recently came to New Zealand for their first ever Rugby World Cup competition.”
While in New Zealand, Minister Lavrov will hold a bilateral meeting with Prime Minister Key and Foreign Minister McCully. The two foreign ministers will sign a Consultations Plan to formalise increased cooperation between the New Zealand and Russian Foreign Ministries over the next two years.
Minister Lavrov will also meet with the Leader of the Opposition as well as Russian community leaders and businesspeople.
Minister Lavrov will depart for Australia on 31 January.
Prime Minister John Key today outlined the four key priorities the National-led Government will focus on during its second term in office, and also provided an update on the path towards a surplus in 2014/15. In a speech in Auckland, Mr Key said the Government’s four key priorities for the term are to:
"Over the past three years, we have proven that we can deliver strong and stable Government in very difficult times – including through a global economic crisis and the series of destructive earthquakes in Canterbury," Mr Key said. "The next three years will be about rebuilding and strengthening the country. We are in a good position to do that compared to a lot of other nations." Mr Key said that the Government’s focus on responsibly managing its finances includes a commitment to return to surplus in 2014/15 – which National campaigned on at the election. The Budget Policy Statement, which will be released on February 16, will update the track toward that surplus. "Today I can confirm that we are still on track to post a surplus in 2014/15, and the upcoming Budget Policy Statement will show a forecast surplus in the range of $300 to $500 million in that year," Mr Key said. "Given the events in Europe, this surplus is understandably smaller than was previously forecast. But we remain on our tight fiscal track." Mr Key said New Zealand is in a relatively good position to deal with any fall-out from the European crisis in the near term. "In both 2012 and 2013, the New Zealand economy is forecast to grow more strongly than the Eurozone, the UK, Japan, the United States and Canada – so we are in relatively good shape. However, it is important that we get back to surplus and make our economy more competitive." The Government will be implementing the 120-point economic action plan released during the election campaign, while also focusing on delivering better public services and rebuilding Christchurch. "We have a busy agenda. Within our public services work we will be implementing major welfare reforms, focusing on raising achievement across the education sector, improving health services and introducing legislation to strengthen sentencing, parole and bail laws. "On top of these initiatives we are taking a hard look at the way public services are organised across the board. The state sector could do much better at achieving results and at delivering value for money. I will have more to say about this when we release the Better Public Services Advisory Group report and outline our direction for state sector reform in the next month or two. "Finally, this year we will be getting on with rebuilding Christchurch, which is a top priority for this Government. We are totally committed to the reconstruction of Canterbury and I’m determined to see that momentum is maintained. "It will be another busy and challenging year but I am very confident about New Zealand’s prospects. "We need to get out and seize our brighter future because it won’t come delivered on a plate. My Government is committed to that task," Mr Key said.
Primary Industries Minister David Carter says the go-ahead for the Irrigation Acceleration Fund’s first project delivers on the Government’s promise to lift economic growth through efficient water use and storage. Mr Carter welcomed today’s announcement that the IAF and the Hawke’s Bay Regional Council are to jointly fund a $3.3million full feasibility study of the Ruataniwha Water Storage Project. This takes the total investment in the Project so far to $4.8million, when combined with the investment in pre-feasibility stages already completed. “This scheme stands to unlock enormous productive potential in the Hawke’s Bay region, with the amount of irrigable land likely to increase from 6000ha to around 22,000ha,” says Mr Carter. The $35million Irrigation Acceleration Fund was announced in last year’s Budget and supports the development of irrigation proposals to the ‘investment ready’ prospectus stage. “Projects will only succeed if they are committed to good industry practice that promotes efficient water use and environmental management, particularly around land-use intensification,” says Mr Carter. “The Ruataniwha Water Storage Project, with its storage dam on the Makaroro River, has the potential to provide security of supply for Hawke’s Bay farmers, enhance the region’s recreational opportunities and improve river flows in summer. “Smart irrigation infrastructure development is key to building an innovative, competitive and sustainable rural sector,” Mr Carter says.
Trade Minister Tim Groser will today depart for Switzerland, to attend the 2012 World Economic Forum (WEF) which will be held in Davos from 25-29 January.
The theme of this year’s conference is ‘The Great Transformation: Shaping New Models’. The programme will focus on issues arising from the rebalancing of the global economy.
Mr Groser will also participate in the Informal Gathering of World Economic Leaders.
“This is a unique opportunity for New Zealand to engage with some of the world’s top economic decision-makers on how we should respond to the shifts now taking place in the world economy, and on the implications for New Zealand,” Mr Groser said.
In Davos, Mr Groser will also attend a meeting of Trade Ministers to discuss the future of the multilateral trading system following the 8th WTO Ministerial Conference.
“In the wake of the most severe downturn in 70 years, the binding commitments made in the WTO provide us with a clear safeguard against the rise of protectionism. It is vitally important that political leaders reaffirm these commitments and maintain their resolve to continue moving forward on trade liberalisation, keeping us on the path towards global economic recovery,” Mr Groser said.
In addition to the formal sessions, Minister Groser will take the opportunity to meet with some of his counterparts to discuss progress on New Zealand’s trade agenda.
Broadcasting Minister Craig Foss today announced details of the Government’s Going Digital Targeted Assistance Package. “To keep watching TV, all New Zealanders need to go digital by getting Freeview, Sky or TelstraClear,” says Mr Foss. “Nearly 80 per cent of Kiwis have already done so and are enjoying more channels, better pictures and new services. People are going digital all the time and we expect nearly 90 per cent of New Zealanders will have gone digital by May 2013. “However, the Government recognises that a small group of people could need financial, physical or technical help to switch over. Our Targeted Assistance Package is focused on those most likely to be in genuine need, and will directly help elderly people on fixed incomes and people with disabilities make the transition to digital television.” To be eligible, people must be watching only analogue television and be either:
The package will provide a set-top box, an aerial or satellite dish if necessary, installation, training and access to a technical support line. It will support local businesses around the country, with local installers contracted. “Digital TV will bring big benefits to New Zealand,” says Mr Foss. “It will allow the use of 4G technologies, which could have economic benefits worth over $2 billion in the next 20 years.” The package will be launched next month when potentially eligible people in Hawke’s Bay and the West Coast will receive a letter inviting them to contact Going Digital to confirm their eligibility and to opt in to receive assistance. Further information is available online at www.goingdigital.co.nz
Consultation has opened on the Government’s proposed response to reviews of Fonterra’s farm gate milk price setting and the Raw Milk Regulations. Primary Industries Minister David Carter says comprehensive work by the Ministry of Agriculture and Forestry, with input from economic, regulatory and legal experts, has resulted in a set of preferred options for amendments to the Dairy Industry Restructuring Act (DIRA) and the Raw Milk Regulations. “These proposals aim to ensure that the DIRA and the Raw Milk Regulations remain a durable platform for the continuing growth of a competitive and innovative dairy sector,” says Mr Carter. “Importantly, the amendments will result in a regulatory regime that promotes a more transparent and efficient dairy market.” Mr Carter says the review of farm gate milk prices found that although Fonterra’s approach is consistent with that expected in a competitive market, lack of transparency remains an issue. To strengthen confidence in Fonterra’s milk price setting process, the review recommends:
The preferred option for the revised Raw Milk Regulations recommends:
Government consultation on these preferred options will be in the form of a draft Bill and a draft set of Regulations. The draft Bill also includes changes that enable Fonterra to move to its proposed Trading Among Farmers (TAF) system, should it choose to. Should Fonterra not proceed with TAF, or if it is unsuccessful, the review recommends that Fonterra be required to price its shares at ‘fair value’. “I encourage interested parties to take part in this important consultation process. The DIRA and the Raw Milk Regulations are what’s needed to ensure a fair and efficient dairy industry in New Zealand,” Mr Carter says. Submissions close 24 February 2012. Further information, click here.
DIRA-and-Raw-Milk-Regulations-QAs.pdf (pdf 46.45 KB)
The Government will provide $509,000 from the Waste Minimisation Fund to help residents in Canterbury’s red zone to dispose of their hazardous household waste safely, Environment Minister Hon Dr Nick Smith announced today.
“With more than 6000 properties identified in the red zone in suburban Christchurch, it’s important that any hazardous household materials such as cleaning products, paint, LPG, and garden sprays are dealt with in a safe and environmentally-sound way,” Dr Smith says.
“Christchurch City Council is partnering with Waimakariri District Council and Environment Canterbury to provide a free drop off service for residents. A mobile service will collect waste from those unable to bring it in themselves and properties will also be swept for any remaining hazardous waste prior to demolition.
“We don’t want to see these hazardous materials being tipped down drains or buried just to create a future environmental and health risks. This initiative means that residential red zone homeowners can easily and safely dispose of hazardous waste from their properties.”
The initiative was proposed by Christchurch City Council, which in conjunction with Waimakariri District Council and Environment Canterbury, are providing a further $260,000 towards the collection and disposal of the waste.
“The earthquakes in Canterbury have caused an unprecedented amount of waste. This project joins a number of other government supported initiatives to help Canterbury deal with this waste and help the region get back on its feet,” says Dr Smith.
Foreign Minister Murray McCully will next week visit Addis Ababa, Ethiopia, to attend the 20th Session of the African Union Executive Council on 25-26 January.
“This summit provides New Zealand with an opportunity to engage with ministers from nearly all of the 54 African Union states and convey our excellent credentials for United Nations Security Council membership in 2015-16," Mr McCully said.
Mr McCully will also meet with Ethiopian Government ministers while in Addis Ababa.
Before arriving in Ethiopia, Mr McCully will visit Kuwait and Qatar on 24 and 25 January. New Zealand enjoys friendly relations with both countries, and growing rates of trade. Two-way trade between New Zealand and Qatar in the year ended June 2011 exceeded NZ$839 million while trade with Kuwait approached $590 million.
“Kuwait and Qatar are both countries which – as major energy suppliers - have high growth rates and strong economies. But they are situated in the middle of a region beset with tension and unrest. I am looking forward to discussing these issues with senior ministers in the two countries,” added Mr McCully.
Pacific communities in Wellington have a lot to be proud of including this weekend’s annual Pasifika Festival, says the Minister of Pacific Island Affairs, Hekia Parata. "In the five years since it was inaugurated Wellington’s Pasifika Festival has gone from strength to strength,’’ says Ms Parata. "This year’s event showcases seven Pacific cultures - Fiji, Samoa, Tonga, Tokelau, the Cook Islands, Niue and Tuvalu - offering crafts, food and drink and performance. "I will be participating in the official opening and wandering around the festival and I look forward to Wellingtonians and visitors to our capital coming along too,'' says Ms Parata. While Pasifika is an opportunity to showcase Pacific cultures, it is also a chance to celebrate New Zealand as a truly Pacific nation. Thirteen percent of New Zealand’s Pacific peoples lived in Wellington when the last Census was completed in 2006. Many of them young people. The Census showed that more than one in three Pacific people in New Zealand was younger than 15. “Most of our young Pacific people are born in New Zealand. That means events like this are significant and provide an opportunity for them to connect with their culture and heritage.'' Ms Parata says being the Minister of Pacific Island Affairs and the Minister of Education presents some wonderful opportunities to help young Pacific people reach their potential. “Our Government’s goal is to create the conditions that grow strong, vibrant, capable Pacific communities. A critical part of that is a successful educational experience and raised achievement. “We want to see Pasifika children participating in quality early childhood education, transitioning happily into primary school, with teachers who actively monitor how well they are doing and report to parents on their progress, their needs, and what the school is doing to meet those needs. “We then want those students to go on to secondary school and to subject choices that will set them up well for good qualifications and career pathways that lead to strong employment prospects.''
The Wellington Pasifika Festival is being held at Waitangi Park tomorrow from 10am.
The NZ Defence Force is joining an international partnership to give it guaranteed satellite communications for the next 20 years, Defence Minister Dr Jonathan Coleman announced today.
“This gives a significant boost to our forces’ capacity both at home and overseas,” said Dr Coleman.
“It will increase our access to satellite broadband more than twenty-fold, with guaranteed access and at a fixed price, ensuring better value for money.”
Deployed New Zealand forces around the world use satellites to communicate with New Zealand. The NZDF currently purchases bandwidth on commercial satellites at spot prices, which can involve a premium of up to 100 percent depending on demand, and which can also limit availability of bandwidth.
The Wideband Global Satellite (WGS) programme is a network of nine military satellites built by Boeing and operated by the US Department of Defence.
New Zealand joins Canada, Denmark, Luxembourg and the Netherlands in a joint agreement for access to the network in return for partially funding the ninth satellite. Australia has been involved in a similar agreement since 2007.
“The Government is delivering on the priorities outlined in the 2010 Defence White Paper, which identified improving offshore communications as a priority to ensure deployed personnel are better supported,” said Dr Coleman.
Any unused capacity can be made available to other government agencies.
The NZDF will invest $83.2 million over 20 years in WGS, which comes from baseline funding already allocated in the Defence Capital Plan. Current annual spending on satellite communications is $NZ 4.3m, growing at some 10 percent per year.
The Government is welcoming a likely $250 million a year increase to exports and the 500 additional construction jobs as part of the agreement announced this afternoon by the Todd Corporation and Methanex New Zealand to increase methanol production in Taranaki.
Methanex is entering into a 10 year contract with Todd that enable it to restart the second methanol manufacturing train at its Motunui facility, north of New Plymouth.
Economic Development Minister Steven Joyce says the announcement is a positive start for a year which is forecast to be challenging for the world economy.
“This is a good example of why oil and gas development with suitable environmental protections forms part of our plan to build a stronger economy,” says Mr Joyce.
“An assessment for Todd indicates this agreement may generate up to $1.2 billion in government revenue from royalties and taxes. That’s money we could put towards schools and hospitals to benefit all New Zealanders.”
Energy and Resources Minister Phil Heatley says the Todd Corporation and Methanex New Zealand are well-established operators who have a track record of operating in Taranaki for decades.
“We want to encourage these types of well-managed developments to unlock our resource potential to benefit New Zealand.
“This deal highlights the oil and gas industry’s significant contribution to our economy. Venture Taranaki estimates the industry employs over 7,700 people and contributes $2.5 billion to the country’s GDP,” says Mr Heatley.
The Government's six national health targets are being updated in the key preventive health areas of immunisation and cardiovascular disease (CVD), and for cancer patients receiving chemotherapy.
These changes were part of National's 2011 election commitments.
Health Minister Tony Ryall has announced, "Medical oncology is being added to the cancer waiting time target from the middle of this year. This means all patients who need either radiation or chemotherapy treatment should get it within the world gold standard of four weeks.
"Also from the middle of this year, the immunisation target is changing from 95% of all two years olds completing their scheduled vaccinations, to 95% of eight month olds completing their scheduled vaccinations by the end of 2014. This is another election promise.
"Children are more likely to complete all immunisations if they begin early. They are most vulnerable to infectious diseases like whooping cough and pneumococcal disease between 3 months and 18 months of age.
"On 1 January 2012, the CVD and diabetes target changed to 'More heart and diabetes checks.' This sets a clearer goal for DHBs and GPs to work together to identify cardiovascular disease and diabetes sooner, and to assist in better management of these conditions.
"The revised target will measure the percentage eligible people who have completed cardiovascular risk assessments within the last five years. This involves working through CVD risks with a GP or nurse and includes a diabetes check.”
The target is for 90 per cent of eligible people to have their checks completed within the last five years, to be achieved in stages by July 2014. The first stage is to achieve 60 percent by July 2012, and 75 percent by July 2013.
Arts, Culture and Heritage Minister Christopher Finlayson, on behalf of the Government today congratulated Sir Peter Jackson on the Golden Globe awarded for the film ‘Tintin’, which Sir Peter produced. “The award for ‘Tintin’ as best animated feature is another well-deserved milestone in Sir Peter’s already illustrious career,” Mr Finlayson said. “The film’s state of the art animation produced another wonderful and distinctive fantasy world, and also served as a reminder of the immense contribution he continues to make to the art of motion pictures.” “Sir Peter has given back a great deal to the arts in this country. He authored a review of the New Zealand Film Commission that is a basis for ongoing policy work, and in November bought the BATS Theatre building and granted the theatre company a long-term lease. His successes have been good for New Zealand.”
Foreign Minister Murray McCully will travel to the Solomon Islands today to meet with the Prime Minister and Cabinet members, and to visit key aid projects.
"This will be my first chance to meet with Gordon Darcy Lilo since he became Prime Minister in November," Mr McCully said.
"New Zealand and the Solomon Islands have a close and longstanding relationship. We will be discussing a range of issues including regional matters, New Zealand's development assistance programme and the RAMSI transition.
"New Zealand is investing in a range of projects in the Solomon Islands to create economic opportunities as we look for drawdown from the RAMSI commitment. As part of the Joint Commitment for Development signed between our countries in September last year, New Zealand will invest up to $25 million in the redevelopment of key infrastructure in the Western Province including the Munda runway, Noro-Munda road and the runway at Gizo. I will be visiting these projects during my trip.
"As Chair of the Pacific Islands Forum this year, New Zealand is committed to meeting regularly with Pacific leaders."
Prime Minister and Tourism Minister John Key has congratulated Air New Zealand on again being named Airline of the Year by ‘Air Transport World’ magazine. “Air New Zealand was named Airline of the Year in January 2010, and to gain this honour twice in three years is an outstanding achievement,” says Mr Key. “The award is for Air New Zealand’s industry-leading innovation and motivation of its staff, which has resulted in exceptional performance in many areas, such as customer service, operational safety, and financial performance. “The award is an acknowledgement of the hard work the airline’s staff and management have put into the company. “Air New Zealand is a vital part of our tourism infrastructure. Often, the first experience incoming visitors have of New Zealand is with the national carrier, and those first impressions count. “Like all New Zealanders, I am very proud of Air New Zealand, and I congratulate the airline and its staff on this achievement. “I am sure all staff and management at Air New Zealand will be proud of this well-deserved honour,” says Mr Key.
Food Safety Minister Kate Wilkinson says opponents of the Government’s draft Food Bill are scaremongering about its impacts.
"Much of what they claim is untrue and causing many people unnecessary concern," Ms Wilkinson says.
“The Bill is designed to simplify 30-year-old food safety regulations and ultimately aims to reduce our high level of food-borne illness and corresponding economic cost. It’s estimated food-borne illness caused a $162 million loss to the New Zealand economy in 2010."
“The current system is prescriptive and based on rules and inspections – which are often costly to food businesses. The new regime will create efficiencies for traders and improve food safety.
Ms Wilkinson says the Bill’s opponents are whipping up fears that small traders such as community gardens, food co-ops, heritage seed banks, farmers markets, bake sales and roadside fruit and vegetable stalls will be caught up in costly red tape.
“That is simply not true. This Bill won’t in any way affect people’s right to grow food and to then exchange, sell or trade it.
“Small traders such as those running roadside stalls or selling their own horticultural produce at markets are generally classed as low risk and will not need to register. They will simply receive a free ‘food handler guidance’ information pamphlet.
“Food grown at home for personal or family consumption, or given away to friends is excluded from the measures in the Bill,” Ms Wilkinson says.
The new regime will have three regulatory levels of safety based on risk, with those food businesses classed as high risk (such as restaurants or baby food manufacturers) having the highest level of requirements. Businesses presenting a medium level risk (such as bakeries and pre-packaged food processors) would be subject to national programmes (a more flexible and generic approach), with those presenting low risk receiving food handler guidance.
The draft Bill has been through a full public consultation process and has been passed by Parliament’s Primary Production Select Committee with cross-party support.
"This is an important piece of legislation and I am conscious that Labour and the Greens have new Food Safety spokesmen. I am more than happy to meet with these parties to discuss the Bill and any concerns they have to ensure that it delivers what we all want - safer food and a reduction in illness, without increasing compliance costs to industry."
"The Bill is intended to modernise and enhance our domestic food safety regime - not over-regulate it.
“I encourage people to visit www.foodsafety.govt.nz to read what the Bill actually contains, and not to listen to the scaremongering from some of the Bill’s opponents.”
Food Bill – Questions & answers
1. Is there currently a Food Act in New Zealand? Yes. It is the Food Act 1981, which is now 30 years old and needs updating. This covers all food for sale in New Zealand. The main purpose is to ensure that the food people buy is safe to eat. The Food Bill focuses on food for sale and profit, not the trade of home-grown food between neighbours or within a community.
2. When was the Food Bill first released to the public and when will it become law? The Food Bill was introduced to Parliament on 26 May 2010. It has been through a public submission process and is now waiting to proceed through the House. There is no set date on when it will be passed by the House and become law.
3. Has there been consultation with consumers on the Food Bill? Yes. The NZFSA (now part of MAF) has actively consulted with consumers from 2007-2010 on the domestic Food Review and the Food Bill. This consultation has included forums and consumer groups, discussion papers and submissions. The NZFSA website and publications have also been used to support consultation. Consumer enquiries by phone and email up until 2010 numbered 1670 and there have been 73,596 page views for the Food Control Plan, Food Bill and the Domestic and Food Review.
4. Were propagation food seeds unintentionally captured by the Food Bill and what happens when such examples are found? Yes. Propagation food seeds were unintentionally captured by the Food Bill. When this came to the Government’s attention, the Minister directed officials to amend the definition of food to ensure propagation food seeds would not be captured by the Food Bill. When activities are identified as being unintentionally captured, the Chief Executive of MAF has powers under the Food Bill to exempt certain activities from all or any requirements of the Act.
5. What are the current rules around bartering or swapping food? The Food Bill will apply to food that is sold, or bartered on a commercial basis. The Food Act 1981 currently includes barter in the definition of sale. This definition has not prevented this activity from freely taking place between individual members of the community, that is, those that are not in business. If bartering was excluded, it would be possible for some commercial food operations to avoid their regulatory responsibilities.
6. Does the Food Bill stop neighbours and communities bartering or swapping food? No. It is an age old Kiwi tradition for people to grow food for themselves and swap their excess with friends or neighbours. The Food Bill will not prevent this tradition from continuing.
7. How will fundraising galas and sausage sizzles be treated under the Food Bill? Charitable and community events such as sausage sizzles, home bake sales, and other fund raising events may still occur without requiring registration provided they are held no more than 20 times a year (by a charity or an individual). Fundraising activities can continue as they always have. This is an important part of Kiwi culture that the Bill protects. Organisers of these activities will simply be provided with access to 'food handler guidance' tips and advice on how to ensure food sold to others is safe to eat.
8. Will fundraisers or those bartering or swapping food be required to register anywhere? No. Those running fundraising activities or bartering and swapping food are not currently required to register and this will not change under the Food Bill.
9. Do producers of jams and pickles have to register? Commercial producers of jams and pickles will be subject to a national programme level 2. They will be required to register their operation and undergo occasional verifications at a frequency that reflects the level of risk. However, those who simply produce jams and pickles for school galas and fundraisers will not have to under-go any sort of registration.
10. Will the Food Bill allow for exemptions? Yes, it will be difficult for the Bill to capture all aspects involved in the sale and production of food. The Chief Executive of MAF will have the ability to exempt a person/business or class of persons. A small jam maker could apply for an exemption and operate instead under food handler guidance with a general obligation to sell safe and suitable food.
11. How will people access information and advice on the safe preparation of food? Information will be provided as 'food handler guidance' tips and advice provided by the Ministry of Agriculture and Forestry free of charge on the website, and via territorial authorities throughout the country.
12. What powers do Food Safety Officers (FSOs) have? There are very clear guidelines set out in the Food Bill for FSOs entering a premise with a search warrant (sections 289-298). The Food Bill only allows FSOs to access and enter the areas of premises where the food is being prepared. There is no provision in the Bill for FSOs to be armed. If entering a place without a search warrant, the owner or occupier of the place must be given reasonable oral or written notice by the FSO unless giving notice would defeat the purpose, or the place is owned or occupied by the Crown.
13. Are FSOs immune from prosecution? The principles and provisions of the Bill in regards to immunity from criminal and civil liability are substantively the same as those provided for in the existing Food Act 1981 which have been in use for over thirty years. Clause 322 of the Food Bill states that FSOs are protected from civil or criminal liability for any act that the person does, or omits to do, if the act is part of their functions or duties under the Bill, or they are exercising their powers under those duties. The FSOs must act in good faith and with reasonable cause. Failure to do so means they are no longer immune from prosecution and they can also be sued. There are similar provisions in the Animal Products Act 1999, the Biosecurity Act 1993 and the Commerce Act 1986 among others, so this in not radical or new.
Transport Minister Gerry Brownlee has expressed his condolences on behalf of the Government to the families and loved ones of the 11 people who lost their lives in a hot air ballooning tragedy near Carterton in the Wairarapa this morning.
“We are deeply sorry to learn of this tragic accident and our hearts go out to those who are now mourning the loss of life,” Mr Brownlee said.
“The accident will be thoroughly investigated by the Transport Accident Investigation Commission, the Civil Aviation Authority and Police on behalf of the Coroner.”
The Commission has opened its inquiry, with the first two of up to four investigators due at the scene before midday.
Mr Brownlee said rules for the commercial operation of hot air balloons were part of a recently completed review into adventure tourism in New Zealand.
“Experts will be looking to learn any lessons from the investigations which have begun today which can help improve safety for others in the future,” Mr Brownlee said.
New Civil Aviation Rule Part 115, which includes the commercial operation of hot air balloons, is available on the Civil Aviation Authority website at: www.caa.govt.nz/rules/nprms_closed.htm
Delivered by His Excellency Lieutenant General The Right Honourable Sir Jerry Mateparae, GNZM, QSO, Governor-General of New Zealand, on the occasion of the State Opening of Parliament, Wednesday 21 December 2011
The plan outlines some immediate and critical steps we intend taking to secure a brighter future for New Zealand families in a turbulent world.
As you know, the Government has had a very strong focus on welfare over the last three years.