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Legislation Notes

Sentencing & Parole Bill

The proposed Sentencing and Parole Reform Bill is designed to be tougher on the worst offenders, provide greater flexibility in sentencing to reflect the seriousness of the crime, and give victims a better deal.

The main points of the proposed Bill are:

  • those guilty of the worst types of murders will now wait much longer before becoming eligible for parole (the minimum non-parole period for these murders will increase from 10 to 17 years; 17 years will be just a starting point, and judges will be able to impose much longer minimum periods before parole eligibility);
  • the new law would take into account the difference between a mercy killing and a home invasion murder;
  • clear sentencing guidelines would be given out so judges are left in no doubt that the most serious offences should receive a sentence near the maximum available;
  • final release after serving two-thirds of a prison sentence will be abolished (enabling offenders to be kept in prison up until the sentence completely expires);
  • criminals guilty of offences leading to life or preventive detention sentences may have to wait up to 5 years between applications for parole once they become eligible to make an application, rather than being considered each year;
  • modifying preventive detention, including lowering from 21 to 18 the age at which an offender may be classified as dangerous and sentenced to an indeterminate sentence;
  • a strong emphasis in favour of reparation for victims, and an extension of reparation so that it covers victims for physical harm, emotional harm and property loss or damage; and
  • a requirement that judges give reasons if they have not imposed reparation.

The new NZ Parole Board to be established will follow the core principle that the protection of society should be the paramount consideration in any case.

It's planned to introduce the Bill to Parliament by mid-2001. The select committee will seek public submissions on the Bill, and report back to Parliament before the end of the year. Following public consultation, it is intended that the Bill be passed into law to have effect by March 2002.

Tightening Up Commercial Law

The Commerce Amendment Bill (No 2), which replaced an earlier amendment, proposes changes to beef up fines for companies breaching commerce laws, and align our legislation with Australia's. Features of the proposed Bill include:

  • bringing the current Act's key prohibitions against abuse of market power and anti-competitive mergers and business acquisitions into line with Australian laws;
  • increasing the maximum penalty for offences by body corporates (from $5 million to $10 million); and
  • strengthening the Commerce Commission's powers to investigate and audit companies subject to price control.
Thanks to 'NewsRoom'

Tax Moves - Including R&D

Highlights of a recently introduced Tax Bill include:

R&D Expenses. New rules would be aimed at allowing businesses more generous deductions for R&D. Under the proposed changes, tax laws would be brought into line with accounting practices that allow businesses to immediately write off expenditure categorised as research and development costs. R&D spending would now also be immediately tax deductible. The changes also include moves to make it clear that R&D deductions incurred in developing software will not be clawed back when they are sold or deferred if devising an invention for patent. The changes would be effective from 1 April 2001.

Clarifying and Simplifying the General Interest Deductibility Rules. These would allow most companies to deduct their interest on business borrowings without having to go to the expense of setting up special taxation structures.

Unit Trusts. Amendments that reduce some of the compliance costs associated with the way that unit trusts operate, such as simplifying the shareholder continuity rules.

Tax Assessments. Updating legislation dealing with income tax assessments to reflect the fact that, today, it is not Inland Revenue but taxpayers who initially assess how much tax they have to pay.

Detailed information on the proposed Bill can be found in the commentary on the Taxation (Annual Rates, Taxpayer Assessment and Miscellaneous Provisions) Bill. It can be found on the web site of the Policy Advice Division of IRD at www.ird.govt.nz

Prosecutions for Government Departments

Government departments could be prosecuted if they breach health and safety and building laws, under legislation recently introduced to Parliament. Although government departments have previously had to comply with the Building, and Health and Safety in Employment Acts, they have been exempt from prosecution. Under the proposed Crown Organisations (Criminal Liability) Bill, departments will be prosecuted in their own name rather than in the name of the Crown, and any penalties imposed will be paid out of their own funds.

Thanks to 'NewsRoom'

Trout Ban Extended

An Order prohibiting imports of trout has been extended to 7 July, to allow time for some aspects of the Conservation (Protection of Trout as a Non-commercial Species) Amendment Bill to be worked out. The Order prohibits the importation of trout flesh except for private consignments of less than 10 kg that are not intended for sale. Specific exceptions are also allowed with the consent of the Minister of Conservation.

The Order was first introduced in 1998 because of public concerns about the impacts of trade in trout flesh on the sustainability of the North Island trout resource. Until then imports of trout flesh were not permitted because no import health standard had been developed, a situation which changed in 1998.

Crown Entities Bill Deferred

The introduction of a Bill aimed at clarifying the accountability and responsibilities (due to patchy and sometimes contradictory legislation) of more than 100 Crown entities has been deferred until later this year. The deferral allows Cabinet to consider a ministerial report on improving state sector performance.

Proposed Insider Trading Measures

Proposed new measures would be aimed at toughening up rules to prevent insider trading. Under the proposals:

  • directors of listed companies would have to disclose their share dealings at the time they were made, while a statutory disclosure regime would be set up to force companies to disclose information that affected share prices;
  • the Securities Commission would have the power to act as a public enforcement agency to take prosecutions against alleged insider traders; and
  • the Stock Exchange would have to provide information about breaches of securities law as it became aware of them.

Officials are still working on the technical detail of the proposals and it's expected that legislation would be passed by the middle of next year. It's also planned to undertake a broader review of insider trading law, which would look at the possibility of introducing criminal penalties for insider trading.

Thanks to 'NewsRoom'

Better Building Access

Good access to buildings and other public facilities (for example, car parks, kerbs and outdoor areas) is especially important for people with physical disabilities and people with visual or hearing impairments. Unless thought is given to these people at the outset, a lot of them could become excluded from many areas of life.

A newly revised National Standard (NZ Standard 4121: Design for Access and Mobility - Buildings and Associated Facilities) aims to make life easier for people with disabilities and others such as older people, and parents with children in pushchairs. The Standard applies to all new buildings and existing buildings (other than private dwellings) when they are altered or there is a change in use. It is based on the premise that people with disabilities should be able to use buildings and other public facilities with the same convenience as everyone else.

Select Committee Report - State-owned Electricity Generators

Parliament's Commerce Committee presented a comparative report to the House on the 1999/2000 financial reviews of Genesis Power Limited, Meridian Energy Limited and Mighty River Power Limited. The Committee reported on a range of matters, including:

  • Financial Performance of the Companies. Meridian performed strongly, Genesis's financial performance was in line with its business plans, and Mighty River performed below forecasts.
  • Lost Generation. The Committee was concerned about the amount of electricity generation that could be lost through hydro spill and its potential effect on economic efficiency and the environment, including New Zealand's ability to meet Kyoto Protocol targets.
  • Customer Switching. The Committee is concerned about continued switching problems being experienced by certain retail customers. Switching systems and protocols are inadequate, require more attention and the industry is being urged to work together on this issue.
  • Billing & Other Matters. The Committee says retail customers of State-owned energy companies continue to be experiencing billing delays and problems. There are also relatively low levels of customer satisfaction across the industry.
  • Reporting. The Committee considers that reporting standards between the three State-owned energy companies regarding environmental impact reporting and customer service performance are variable and believe that there is room for improvement.
The report is available from committee staff. Transcripts of oral evidence are attached to the report, which can be viewed on the Parliamentary website at http://www.parliament.govt.nz/

Consultation Concludes

The Royal Commission on Genetic Modification concluded its consultation programme with a three-day national hui. The Commission will now withdraw from the public eye to prepare its report, due to be presented to the Governor-General on 1 June 2001.

The consultation generated more than 4600 pages of formal hearing transcripts, 10,000 public submissions, 107 extensive submissions from "interested persons", feedback from 15 public meetings, one national hui, 10 regional hui and one youth forum.

Transcripts from the national hui can be found on at www.gmcommission.govt.nz

Anti-Terrorism Bill

The Terrorism (Bombing and Financing) Bill was recently introduced to Parliament. It would allow New Zealand to become a party to two anti-terrorist treaties; the International Convention for the Suppression of Terrorist Bombings, and the International Convention for the Suppression of the Financing of Terrorism. These two treaties will bring to 11 the conventions signed up to by New Zealand to combat particular types of terrorism. Under the treaties New Zealand would co-operate internationally to ensure the investigation of offences and extradition or prosecution of suspects.

Maui Royalties Disputes Settled

A long-standing dispute between the Maui joint venture partners and the Government over royalty payments on production from the Maui gas and condensate field has been settled.

The agreement will result in extra royalty payments by the Maui joint venturers, estimated by the Government at about $70 million over the life of the field, depending on reservoir performance. The additional payment includes arrears of $15 million.

The settlement will result in total royalties from the Maui field of approximately $450 million on the basis of currently expected field performance and a conservative estimate of future oil prices. In addition to royalties, the Crown receives around $65-$90 million a year from an energy resources levy on gas and LPG produced from the Maui field.

Note: The Maui Joint Venturers are Energy Exploration NZ Limited and Fletcher Challenge Petroleum Investments Limited which are owned by Fletcher Challenge Energy (68.75%), Shell (Petroleum Mining) Company Limited (18.75%) and Todd Petroleum Mining Company Limited (12.5%). Shell is currently in the process of acquiring Fletcher Challenge Energy's holdings in the field.

Select Committees - Changes

Dover Samuels replaces Mita Ririnui in the Maori Affairs Committee, and Mita Ririnui replaces Parekura Horomia in the Law and Order Committee.

Submission Dates

Public submissions are a very important component of Parliament's select committee process. They are also an opportunity for you to have your say over proposed legislation. A current submission closing date for a bill is:

  • Criminal Investigations (Blood Samples - Burglary Suspects) 30 June 2001

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