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Friday, September 1, 2023

Point of Order: Buzz from the Beehive - 1/9/23



Govt takes a punt on the game development industry while nobbling supermarkets with a code to encourage fair play

Favours are being bestowed on the business sector – some businesses, at least – in the latest bunch of Beehive announcements.

First, the government has decided it must do something to buttress the winning chances of the game development industry, which – we must suppose – is deemed to be in no condition to survive without a dollop of corporate welfare.

This is surprising because – according to The Minister for the Digital Economy and Communications, Ginny Andersen – this small but fast-growing industry already “strongly contributes to the country’s GDP, bringing in over $400 million in revenue last year.”

Nevertheless she brings news that the government has finalised the design of the Game Development Sector Rebate scheme.

Budget 23 provided $40 million a year to deliver and administer this scheme – and it sounds like bureaucrats will have to decide which businesses benefit and which do not, because Andersen further said:

The pilot will enable “eligible businesses” with anticipated expenditures of $5 million or more to submit a partial year claim for expenditure already incurred in the six months from 1 April 2023 to 30 September 2023.

This initiative will help NZ On Air set up an efficient and straightforward application process that will work for all applicants. It will also have the benefit of getting some funding flowing to the sector as soon as the October–December 2023 quarter.


We must suppose the corporate welfare that is being delivered results from the “constructive period of consultation with the sector” which Andersen mentioned.

“We received valuable feedback from the sector on the draft design that was put out for consultation earlier this year. We took on board many of the suggestions and adjusted some criteria to better fit the sector’s operational practices,” Ginny Andersen said.

“We’re keen to make this a smooth experience and for that reason, we have included a pilot application process for year one, to enable NZ On Air to stress-test and fine-tune its administrative processes for the rebate.”

Picking winners?

Certainly.

As Andersen said

“The Government recognises the world-class potential of our game development sector in New Zealand. This investment into the industry will be another step forward to growing and retaining our innovative creators and state-of-the-art talent.

“The sector is a creator of weightless exports and high-skill, high-wage jobs – aligning with the Government’s vision for a low-emissions, high-wage economy, and helping to lift our productivity and wealth.”


Second, Tourism Minister Peeni Henare popped up to announce the 57 projects that have successfully secured some of the $14,334,907 of slops from the Round Seven of the Tourism Infrastructure Fund.

This fund is intended to protect and enhance New Zealand’s reputation domestically and internationally by supporting robust infrastructure which contributes to quality experiences for the visitor and to broader community support for tourism in the area.

The full list of projects that were funded, and more information about the Tourism Infrastructure Fund can be found here.

In another initiative announced today, the government is aiming to enforce “fair conditions” to help supermarket suppliers.

Consumer Affairs Minister Duncan Webb has announced a Grocery Code of Conduct which requires large corporates – among other things – to pay on time, have plain-English supply contracts and deal with small companies in good faith.

The code will initially apply to the two big supermarket chains, Woolworths New Zealand (including the Countdown Brand) and Foodstuffs North Island and South Island (including Pak ‘n Save, New World and Four Square).

The maximum penalty for companies breaching the code is the greater of 3 per cent of turnover, the value of any commercial gain from the breach, or $3 million. Individuals face fines up to $200,000.

The code comes into force on 28 September and will be monitored and enforced by new Grocery Commissioner Pierre van Heerden, whose position was established in July.

More information on the Grocery Supply Code of Conduct is available on MBIE’s website: https://www.mbie.govt.nz/have-your-say/draft-grocery-supply-code-of-conduct/

Latest from the Beehive

1 SEPTEMBER 2023


Ngā Iwi o Taranaki and the Crown have signed the Taranaki Maunga Collective Redress Deed named Te Ruruku Pūtakerongo, at Owae marae, Waitara today.


The Government has finalised the design of the Game Development Sector Rebate scheme, following a constructive period of consultation with the sector, Minister for the Digital Economy and Communications.


The Government has today released the rapid review “KiwiRail’s Handling of Recent Disruptions to Passenger Services”.


Walking and cycleway trail restoration, improving roads for all weather access, fit for purpose toilet blocks, and rebuilding walkways to regain access to beaches, are some of the projects funded through the Tourism Infrastructure Fund.


Associate Minister of Māori Development Nanaia Mahuta today announced Māori Land Court Chief Judge Caren Fox as the new Chairperson for the Waitangi Tribunal for a period of five years.


Nelson homeowners severely impacted by the extreme weather event of August 2022 will be able to access Government support, including a buyout deal for their damaged homes, subject to agreement from Nelson City Council.


Big supermarket chains face stiff fines for not treating small suppliers fairly, thanks to the Labour Government’s new Grocery Code of Conduct.

31 AUGUST 2023


The Government has confirmed a raft of early learning funding changes to boost teacher pay, address systemic issues in the ECE funding model, and to support the home-based sector.

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

1 comment:

Anonymous said...

Nanaia is screwing the scrum to the very last minute. What a piece of work. She has just appointed the next Chair of the Waitangi Tribunal for a period of five years. Any remaining vestiges of confidence in the Tribunal must surely now plummet to even lower than low. Corruption has us by the throat. What a god awful mess the next govt will face. The NZ swamp has been purposefully infested.