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Wednesday, August 30, 2023

Point of Order: Buzz from the Beehive - 30/8/23



Multi-agency 111 response is among the latest govt initiatives which depend on Labour surviving the general election

Many burning questions (as the general election looms) are answered on the government’s official website today.

Let’s start by checking how ministers are spending (or misspending) our money.

They aim to spend an unspecified sum on improving 111 responses for people in mental distress.

Health Minister Ayesha Verrall and Police Minister Ginny Andersen fronted on this one to announce the Government will roll out “a national multi-agency approach to better respond to 111 calls for people experiencing mental distress”.

Co-response teams are already operating in six police districts and involve Police, mental health professionals and in some cases ambulance officers or “a Māori health navigator”.

Similar teams will be made available nationwide over the next five years, the ministers said.

But let’s not forget the small matter of a general election in October.

Let’s further note that (according to Ayesha Verrall) Police and Health have been asked to jointly report back to Cabinet next March (when a new government is likely to be calling the shots) with a plan of how multi-agency responses could be implemented and what resources would be required.

This will explain why no costs are contained in the press statement. The plan the government has asked for will set out how to transition from a Police-led response to a multi-agency response to 111 calls for people in mental distress over the next five years.
  • How is the government getting tough on crime?
First, with legislation “to crack down on fleeing drivers”.

The enactment of the Land Transport (Road Safety) Amendment Bill…
  • Allows Police to seize and impound a vehicle for six months if it fails to stop or remain stopped – up from 28 days.
  • Provides a new power allowing Police to seize and impound a vehicle for up to 28 days if the registered owner fails to provide information about a fleeing driver and impounding the vehicle is necessary to prevent a threat to road safety
  • Increases the period of licence disqualification from 12 months to between 12 months and 24 months after a second conviction for a failing to stop offence
  • Creates a new sentencing option allowing the Courts to order that a vehicle be forfeited on conviction for a failing to stop offence, with the offender getting no proceeds from the sale.
Associate Transport Minister Damien O’Connor said these changes will mean drivers can be disqualified for longer or have their vehicle taken away for good.

Vehicle owners can have their vehicles impounded if they intentionally withhold information that could help Police track down a different driver who flees in the owner’s vehicle.

Second, with legislation which targets ram raids. Here’s hoping it hits the mark as often as the ram raiders hit theirs.

The Ram Raid Offending and Related Measures Amendment Bill creates a new ram raid offence in the Crimes Act 1961, with a maximum penalty of 10 years’ imprisonment.

After its first reading today, Justice Minister Ginny Andersen said aims to enable authorities to charge 12- and 13-year-old offenders in the Youth Court, similar to other serious offences, such as aggravated burglary.

A new aggravating factor in the Sentencing Act 2002 will apply when an adult encourages or incites a person under 18 to carry out an offence.
  • What new ways of taxing us have been devised?
Finance Minister Grant Robertson and Revenue Minister Barbara Edmonds are promoting legislation to enable a digital services tax to be slapped on multinational companies from 2025.

The proposed tax will target large multinational businesses that earn income from New Zealand users of social media platforms, internet search engines, and online marketplaces.

It would be payable by multinational businesses that make over €750 million a year from global digital services and over NZD$3.5 million a year from digital services provided to New Zealand users. It is expected to generate $222 million over the four-year forecast period.

The tax would be applied at three percent on gross taxable New Zealand digital services revenue, a similar rate to those adopted by other jurisdictions such as France and the United Kingdom.

The international tax framework hasn’t kept pace with changes in modern business practice and with the increasing digitisation of commerce, Robertson said.

With more and more overseas businesses embracing digital business models, a government’s ability to tax them is restricted and the burden falls to smaller groups of taxpayers.

The government, which has been participating in negotiations at the OECD for a multilateral agreement to address these issues, has agreed not to bring in a unilateral measure such as DST until 1 January 2025.

“While we will keep working to support a multilateral agreement, we are not prepared to simply wait around until then to find out. That is why we have prepared legislation that is ready to go if the OECD process does not succeed.”

The Digital Services Tax Bill will be introduced to the House tomorrow.
  • Any more news from our Minister of Finance?
Yep. He is chuffed that the country’s credit rating has been affirmed by another major credit rating agency.

Fitch affirmed New Zealand’s long term foreign and local currency ratings at AA+ with a stable outlook. It follows Moody’s annual credit analysis affirming a stable outlook on New Zealand’s local currency and foreign currency ratings at Aaa.

“This is further endorsement of the Government’s financial and economic management in a difficult and uncertain global environment,” Grant Robertson said.

“Fitch praised the Government’s fiscal policies, saying the rating reflected the Government’s robust governance standards and policy framework and our commitment to return to surplus, and lower debt in the medium term. Our net debt as a percentage of GDP remains lower than many of our international peers.”

  • What did Damien O’Connor accomplish in India?
Trade and Export Growth and Agriculture Minister Damien O’Connor said New Zealand’s relationship with India took a significant step forward during his three-day visit to New Delhi.

Key priorities advanced during his talks in New Delhi included:
  • Upgrading the Air Services Agreement with Civil Aviation Minister Hon Jyotiraditya Scindia and discussing prospects for improving air links with India with the private sector. The agreement further liberalises services and will advance code-sharing flight opportunities between Auckland and New Delhi;
  • Progressing primary sector partnerships across agriculture and horticulture with his counterpart Ministers, Hon Parshottam Rupala and Hon Narendra Singh Tomar;
  • Encouraging improved India-New Zealand Ministerial and business-to-business relationship architecture; and
  • Highlighting the importance of partnerships that benefit both countries’ education sectors.
Damien O’Connor also addressed the Confederation of Indian Industry in a state of the relationship speech setting out New Zealand’s aspiration for its relationship with India. The Confederation hosted an event for the Indian and New Zealand business communities to strengthen both countries’ joint vision for a modern economic partnership.

Damien O’Connor will next travel to Saudi Arabia and the United Arab Emirates for discussions with the Secretary-General of the Gulf Cooperation Council, and his Ministerial counterparts.
  • How is the government pitching for the support of younger people?
By giving more them the right to vote.

In response to a Supreme Court Declaration of Inconsistency, the Government has introduced a Bill that lowers the voting age for local government elections from 18 to 16.

But this is another one that may not survive the general election.

The Bill has passed its first reading and will be further considered in the next parliamentary term following a full select committee process.

In November 2022, the Supreme Court made a Declaration of Inconsistency, which determined that the voting age of 18 for both parliamentary and local elections was inconsistent with the New Zealand Bill of Rights Act 1990, and the inconsistency had not yet been justified.

This is the first time a declaration of inconsistency has been issued since the Bill of Rights Act was amended to provide for new procedures. In accordance with law, the Government is required to table its response in the House, which is then debated shortly after.

Changes to the voting age for general elections are not being considered as part of this.

If passed by the next parliament, the Bill would come into effect for the 2028 triennial local elections.

Latest from the Beehive

30 AUGUST 2023


The Government has today announced its commitment to roll out a national multi-agency approach to better respond to 111 calls for people experiencing mental distress.


The Government has delivered on its commitment to crack down on fleeing drivers through the passage of the Land Transport (Road Safety) Amendment Bill.


New Zealand’s relationship with India took a significant step forward during Trade and Export Growth and Agriculture Minister Damien O’Connor’s three-day visit to New Delhi.

9 AUGUST 2023


Legislation to ensure ram raiders are held accountable for their crimes passed its first reading today, Justice Minister Ginny Andersen says.

In response to a Supreme Court Declaration of Inconsistency, the Government has introduced a Bill that lowers the voting age for local government elections from 18 to 16.


The Government’s prudent and responsible financial management has been acknowledged by the credit rating agency Fitch.


New Zealand is taking the next step towards a fairer tax system with the introduction of legislation that would enable a digital services tax (DST) on large multinational companies.

Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton

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