Tuesday, 19 December 2023

Continued to Thursday, 21 December 2023 — Volume 772

Sitting date: 19 December 2023

TUESDAY, 19 DECEMBER 2023

TUESDAY, 19 DECEMBER 2023

The Speaker took the Chair at 2 p.m.

Karakia/Prayers

Karakia/Prayers

SPEAKER: Almighty God, we give thanks for the blessings which have been bestowed on us. Laying aside all personal interests, we acknowledge the King and pray for guidance in our deliberations that we may conduct the affairs of this House with wisdom, justice, mercy, and humility for the welfare and peace of New Zealand. Amen.

By-Election

Port Waikato—Hon Andrew Bayly

SPEAKER: I have received from the Electoral Commission a writ declaring the Hon Andrew Bayly to be elected to represent the electorate of Port Waikato.

Resignations

New Zealand National—Hon Andrew Bayly, List

the Hon Andrew Bayly

SPEAKER: I wish to advise the House that I have received a letter from, resigning his list seat in the House with effect from 13 December 2023.

List Member ELECTED

List Member ELECTED

New Zealand National—Nancy Lu

SPEAKER: I have been advised by the Electoral Commission that under section 137 of the Electoral Act 1993, Nancy Nan Lu has been declared to be elected a member of the House of Representatives to fill the seat formerly held by the Hon Andrew Bayly.

Members Sworn

Members Sworn

SPEAKER: I understand that James Shaw is present and wishes to make the affirmation of allegiance. Would James Shaw please come forward to the right of my seat.

Hon JAMES SHAW (Co-Leader—Green): I, James Shaw, solemnly, sincerely, and truly declare and affirm that I will be faithful and bear true allegiance to His Majesty King Charles III, His heirs and successors, according to law.

SPEAKER: I understand that Nancy Nan Lu is present and wishes to make the affirmation of allegiance. Would Nancy Nan Lu please come forward to the right of my seat.

NANCY LU (National): I, Nancy Nan Lu, solemnly, sincerely, and truly declare and affirm that I will be faithful and bear true allegiance to His Majesty King Charles III, His heirs and successors, according to law.

我,Nancy Lu 陆楠,郑重、诚挚、真实声明并确认,我将依法忠实效忠于查尔斯三世国王陛下、他的继承人和继任者。

Speaker’s Rulings

Parliamentary Questions—Answers

SPEAKER: Members, as I suggested last week, I want to set out my approach to the answering of parliamentary questions. It’s well established that Ministers are expected to answer questions unless they consider it not in the public interest to do so: Speaker’s ruling 199/3. The public interest test is a high one and should be used sparingly: Speaker’s ruling 200/1. Ministers are accountable to the House for the public office they hold and should, therefore, endeavour to give informative replies: Speakers’ ruling 200/6. That is the cornerstone of responsible Government.

Ministers are responsible for their answers. It’s not for the Speaker to judge the quality or accuracy; the House and the public do that: Speaker’s ruling 207/3. The Speaker’s role is to uphold the Standing Orders, which require that an answer that seeks to address the question must be given if it can be given consistently with the public interest: Standing Order 396. Ministers must make a reasonable attempt to provide an informative answer on the matter they’ve been asked about. This is particularly true for primary questions, since Ministers have time to prepare their answers.

Question time is a political exchange. Members will not always be satisfied with the answers they receive: Speaker’s ruling 207/2. They should use supplementary questions to probe unsatisfactory answers. Only in cases where an answer is manifestly inadequate will the Speaker intervene, usually by allowing further supplementary questions: Speaker’s ruling 207/6. While there is a strong expectation from the House and the public that Ministers will answer questions, the Speaker cannot force a Minister to give an answer to a question: Speakers’ ruling 199/4. It is for members and the voting public to judge a refusal to answer.

PETITIONS, PAPERS, SELECT COMMITTEE REPORTS, AND INTRODUCTION OF BILLS

PETITIONS, PAPERS, SELECT COMMITTEE REPORTS, AND INTRODUCTION OF BILLS

SPEAKER: Petitions have been delivered to the Clerk for presentation.

CLERK:

Petition of Hāpai Te Hauora requesting that the House maintain the 2022 Smokefree legislation

petition of New Zealand Council of Trade Unions requesting that the House restore the Fair Pay Agreements Act 2022

petition of Free Fares NZ requesting that the House retain current public transport discounts and expand them to provide 100 percent free public transport for under-25s, tertiary students, and Community Services Card holders, Total Mobility Card holders, and their support people.

SPEAKER: Those petitions stand referred to the Petitions Committee. Ministers have delivered papers. Members, it is a very long list. I ask that you give your patience to the Clerk as he reads that list.

CLERK:

Reports in relation to selected non-departmental appropriations for the year ended 30 June 2023 for arts, culture, and heritage portfolio Vote Arts, Culture and Heritage; Housing portfolio Vote Housing and Urban Development

2022-23 annual reports for

Accident Compensation Corporation

Callaghan Innovation

Criminal Cases Review Commission

Department of Conservation

Government Superannuation Fund Authority

Guardians of New Zealand Superannuation

Institute of Environmental Science and Research

Land Information New Zealand

Landcare Research New Zealand

Māori Health Authority

Ministry of Justice, together with Te Arawhiti

Ministry for Primary Industries

Ministry of Social Development

New Zealand Customs Service

New Zealand Film Commission

Office of the Children’s Commissioner

Plant and Food Research Ltd

Reserve Bank of New Zealand

Social Workers Registration Board

Taumata Arowai

Te Papa Tongarewa

Te Puna Aonui

Te Whatu Ora

Teaching Council of New Zealand

Tourism New Zealand

WorkSafe New Zealand

statements of intent for

Government Superannuation Fund Authority

Health and Disability Commissioner

Health Quality and Safety Commission New Zealand

New Zealand Green Investment Finance Ltd

statement of corporate intent for AgResearch

statements of performance expectations for

Government Superannuation Fund Authority

Guardians of New Zealand Superannuation

Māori Health Authority

New Zealand Blood and Organ Service

Public Trust Office

Te Whatu Ora

Pre-Election Economic and Fiscal Update.

SPEAKER: Those papers are published under the authority of the House. Select committee reports have been delivered for presentation.

CLERK:

Report of the Business Committee on the recommended sitting programme for 2024

report of the Regulations Review Committee on the Secondary Legislation Confirmation Bill (No 2).

SPEAKER: The bill is set down for second reading and the recommended sitting programme is set down for consideration. The Clerk has been informed of the introduction of a bill.

CLERK: New Zealand Bill of Rights (Right to Sustainable Environment) Amendment Bill, introduction.

SPEAKER: That bill is set down for first reading.

Oral Questions

Questions to Ministers

Question No. 1—Finance

1. DAVID MacLEOD (National—New Plymouth) to the Minister of Finance: What reports has she seen on the cost of living?

Hon NICOLA WILLIS (Minister of Finance): I have seen many reports that show New Zealanders have experienced major cost of living pressures in recent years. Since 2017, there has been cumulative inflation of 24.6 percent, with annual inflation peaking at 7.3 percent—the highest rate of inflation in more than 30 years. The latest data shows inflation remains high, at 5.6 percent, and so it is clear that the Government has plenty of work to do. We know Kiwis are doing it tough after six years of economic mismanagement, which is why we are moving quickly to rebuild the economy for all New Zealanders.

Rt Hon Chris Hipkins: Come on, Mr Speaker. You said that this wasn’t going to be allowed.

SPEAKER: That’s quite true, but in this case the question stopped pretty abruptly when a look went in a certain direction, and that will continue.

David MacLeod: What specific cost of living pressures have New Zealanders faced?

Hon NICOLA WILLIS: Food and rent are big pressures Kiwis face, and the cost of both has soared in recent years. Since 2017, food prices have increased by 29.3 percent above the overall rate of inflation. Over the same period, average rents have increased by $180 per week—a 45 percent increase. It is no surprise that Kiwis feel like they’re falling behind when the cost of basics like food and rent have increased so much. That’s why this Government is taking action to rebuild the economy so hard-working Kiwis can get ahead.

David MacLeod: How has the rise in the cost of living impacted interest rates?

Hon NICOLA WILLIS: In response to rampant inflation, the official cash rate has risen to 5.5 percent, much higher than the 1.75 percent inherited by the last Government in 2017. The effect of that significant tightening in monetary policy is a significant lift in mortgage interest rates, putting more pressure on Kiwis who are already struggling to pay the bills. It is a good reminder that there is no free lunch from rampant Government spending; it just leads to higher taxes, more debt, and, as so many Kiwis are facing right now, higher interest rates.

David MacLeod: What plans does the Government have to support Kiwis struggling with the cost of living?

Hon NICOLA WILLIS: Beating inflation is this Government’s top priority, which is why we are moving quickly to bring inflation down. We’re restoring the Reserve Bank’s single focus on inflation. We’re reducing costs on businesses by cancelling the ute tax. We’re clearing away broken regulations, like the previous Government’s Resource Management Act replacement. And next year, we will be delivering tax relief for hard-working Kiwis struggling with the cost of living, so they can keep more of what they earn.

Hon Grant Robertson: Is the latest OECD economic outlook on New Zealand correct when they said that we should not have tax cuts if we want to counter inflation and improve the cost of living?

Hon NICOLA WILLIS: No, because New Zealanders have been overtaxed by a Government that oversaw rampant spending increases, and their bank accounts have been eroded not only by inflation but also by higher average tax rates, and they have elected a Government that’s going to let them keep more of what they earn.

Chlöe Swarbrick: Has she read IRD and Treasury’s research which shows that the wealthiest families in this country pay less than half the effective tax rate of teachers, nurses, emergency and essential workers, and the average New Zealander?

Hon NICOLA WILLIS: I disagree with the member’s interpretation of research issued by the IRD.

Chlöe Swarbrick: Why is her Government repealing, under urgency, public reporting on the fairness of our tax system, and pushing ahead with trickle-down tax cuts that disproportionately increase the burden on lower-income New Zealanders? [Interruption]

SPEAKER: Just a moment. There will eventually be a consequence for speaking while someone is asking a question. Just as people don’t like answers at times, some people don’t like the questions. Do not speak while someone’s asking a question.

Hon NICOLA WILLIS: The newly elected Government is not of the view that reporting on things, and publishing glossy documents, actually meaningfully changes people’s lives for the better, as the past Government conclusively proved over six years of bureaucracy, report writing, and printing.

Question No. 2—Prime Minister

2. Rt Hon CHRIS HIPKINS (Leader of the Opposition) to the Prime Minister: Does he stand by all of his statements and actions?

Rt Hon CHRISTOPHER LUXON (Prime Minister): Yes, I do, especially this Government’s action to launch an independent review into Kāinga Ora and the deeply concerning financial state it was left in by the previous Government. I also stand by this Government’s action to end the dysfunctional Let’s Get Wellington Moving programme, and to focus on delivering infrastructure that Wellington actually needs. And I stand by our action to end the ute tax. Could I just make another statement by wishing the member a very merry Christmas and the very best of luck in the new year in whatever role Kieran McAnulty gives him.

SPEAKER: It’s not particularly helpful for order.

Rt Hon Chris Hipkins: Merry Christmas to him too. Does he agree with Christopher Luxon, “In the real world, outside of Wellington, outside of the bubble of MPs, people who want to learn te reo or want to learn any other education actually pay for it themselves.”; if so, does he believe that standard applies to him too?

CHRISTOPHER LUXON: We encourage employers to upskill their employees if they need te reo for the purposes of their job. We support that. What we don’t support is actually bonuses on top of base remuneration.

Rt Hon Chris Hipkins: If in the real world people pay for their own te reo Māori lessons, why did the taxpayer pay for his, and will he pay that money back?

CHRISTOPHER LUXON: I think all the 123 MPs in this Chamber, if they want to learn te reo, that’s actually a good thing because they’re actually there to represent all New Zealanders. I would suspect that you may have done the same as Prime Minister and/or Leader of the Opposition.

Rt Hon Chris Hipkins: So why did he say “In the real world outside of Wellington and outside the bubble of MPs, people who want to learn te reo actually pay for it themselves.”?

CHRISTOPHER LUXON: Because they do, and many private companies; people who actually want to learn te reo, actually do it. But if it’s a part of your job and it actually helps you do your job to represent all New Zealanders better and you want to learn te reo, I would encourage all 123 members in this Chamber to do likewise.

Rt Hon Chris Hipkins: Does he agree with Christopher Luxon with regard to the Clean Car Discount, “I think if I can pay, I should pay.”, and, if so, when will he pay?

CHRISTOPHER LUXON: We’ve talked about this before—those are the affairs of my wife, if that’s what you’re trying to get to there.

Rt Hon Chris Hipkins: Which of the following statements, therefore, does he agree with: Christopher Luxon on 6 April: “I’ve got one Tesla, a little Tesla Model 3, yep, and I think I’ve got to say they’re fantastic cars.”, Christopher Luxon on 13 May, “I have an electric car—a Tesla, I love it.”, or Christopher Luxon on 14 June and again now: “I don’t have a Tesla, my wife has one”?

Chris Bishop: Point of order. The Leader of the Opposition is very well aware that the Prime Minister is not responsible for statements made by Mr Luxon, which may or may not be accurate, before he became Prime Minister.

SPEAKER: That is quite right. I was being somewhat lenient given the nature of the opening answer to the question, but I think it should be brought right back to the responsibilities of the Prime Minister directly.

Rt Hon Chris Hipkins: Will he pay back the more than $8,000 he’s received from the Clean Car Discount his Government has now repealed?

CHRISTOPHER LUXON: As I’ve previously explained, the car is owned by my wife. Those are her financial affairs. I wouldn’t bring the affairs of your family member into public discourse, because she’s not the public figure.

SPEAKER: I think that’s actually a very fair point that should be taken on board.

Rt Hon Chris Hipkins: Point of order, Mr Speaker?

SPEAKER: We’ve got a point of order here from the Rt Hon Winston Peters.

Rt Hon Winston Peters: It’s a supplementary question. Much more important.

SPEAKER: Oh, sorry. Point of order, the Rt Hon Chris Hipkins.

Rt Hon Chris Hipkins: The now-Prime Minister claimed that he owned the car himself.

SPEAKER: Well, the realities of that are not immediately evident to me, because I don’t have those papers in front of me. All I’m saying is that it has been a fairly longstanding convention in this House not to bring family members into the debate.

Rt Hon Chris Hipkins: Point of order, Mr Speaker. If a Minister mentions their family in the answer to a question in order to avoid answering the question, it is legitimate to therefore ask them follow-up statements about their own statements.

Hon Chris Bishop: Speaking to the point of order, this is wholly absurd. Firstly, the line of questioning is out of order, because it relates to matters that are not within the Prime Minister’s responsibility. Secondly, notwithstanding that clear statement of the obvious, the Prime Minister has deigned to provide a commentary in which he has said that the matter that the member is referring to relates to a family member, and I would encourage members opposite to uphold the longstanding convention that you, Mr Speaker, have referred to.

SPEAKER: That’s a relevant point, but all Government policy is the responsibility of the Prime Minister, and that’s why the question is being asked.

Rt Hon Chris Hipkins: Point of order. I want to be very clear, based on the accusation from Christopher Bishop—I did not bring Christopher Luxon’s wife into the debate.

SPEAKER: I think we got that. Do you have a supplementary?

Rt Hon Chris Hipkins: Yes, I do.

SPEAKER: The Rt Hon Winston Peters goes first, sorry.

Rt Hon Winston Peters: Can I ask the Prime Minister as to whether it’s his position on taxation that you pay the taxation at the time it applies, and if the taxation system changes, then your taxation obligations change as well, and not some woke lefty shill view that you will apply the tax retrospectively, which is the basis of the question?

SPEAKER: Much as the right honourable member might like to think that the Prime Minister is responsible for anything that is considered to be a defence against the descriptor that you gave, that’s not a reasonable question. So we’ll progress with the Rt Hon Chris Hipkins.

Rt Hon Chris Hipkins: Does he agree with Christopher Luxon with regard to prime ministerial travel on Defence Force planes: “There’s other options. There’s charter options, for example. There’s commercial arrangements”, or does he agree with Prime Minister Christopher Luxon that travelling on a Defence Force plane was a convenient option?

Rt Hon CHRISTOPHER LUXON: As I’ve said today, we’ve actually asked Defence to actually look at a long-term viable option for New Zealand to use, and that could be commercial aircraft, it could be charter aircraft, it could be leased aircraft or owned aircraft. That’s in the future interest of all future and potential Governments to do so. I just say to the member, I think the line of questioning, given the economic crisis that’s going on in this country, says he’s not focused on the real issues.

Rt Hon Chris Hipkins: In that case, Mr Speaker, supplementary?

SPEAKER: Yep.

Rt Hon Chris Hipkins: Well, does he therefore agree with Christopher Luxon, “It would be inappropriate for us to actually commit and spend new money on planes in a recession, and therefore my personal view is that we travel commercial.”; if so, why has he now asked the Defence Force to bring forward plans for the replacement of those planes?

Rt Hon CHRISTOPHER LUXON: What we’ve asked the Defence Force to do is give us a plan, or a series of options in a package that could comprise of commercial, it could comprise of charter, it could comprise of leased, or it may even comprise of owned. Actually, we need a long-term solution, because on this side of Government we want to get out in the world. We want to double the amount of exports that this country generates, and part of that is having the tools to do that.

Chris Bishop: What reflections does he have on the Government’s priorities in light of the questions from the Opposition so far in this term of Parliament?

SPEAKER: That’s not a question. You know that’s not right. So we’ll move now to question No. 3 in the name of Mark Cameron.

Question No. 3—Regulation

3. MARK CAMERON (ACT) to the Minister for Regulation: What problems, if any, does he hope to solve in his portfolio?

Hon DAVID SEYMOUR (Minister for Regulation): Thank you, Mr Speaker, and thank you to the member for the question. At its heart, it is New Zealand’s long-term disease of low productivity growth that deprives New Zealanders of not only prosperity but so many of the things that they would like to have. An element of that productivity problem is caused by excessive red tape and regulation, which adds costs to doing everything from building a home to running an early childhood education centre. Part of that problem is the fact that it’s very difficult for people to identify those who put the red tape and costs on to them. A Minister for Regulation will be changing the way that Government makes rules and allowing those who are the victims of red tape and regulation to see who is responsible and see a pathway out of the thicket that has stopped them growing their productivity.

SPEAKER: That was a very long answer that had the indulgence that comes at the end of the year.

Mark Cameron: Why is a Ministry for Regulation needed to reduce regulation?

Hon DAVID SEYMOUR: There’s 34 public service departments. There’s an estimated—and this is as close as Treasury can estimate—180 to 200 regulatory management systems, and 10,000 to 14,000 public servants engaged in regulatory activity. Now, I would have thought having one small department to give New Zealanders a chance of beating that back is a pretty good deal.

Hon Dr Duncan Webb: Given that ensuring good legislative and regulatory design is already the role of Government departments, the Legislation Design and Advisory Committee, Treasury, the Parliamentary Counsel Office, the Regulations Review Committee, subject matter select committees, the Attorney-General, and this House, isn’t it the case that a new department is simply duplicate, excessive red tape and regulation, and a waste of taxpayer’s money that does not even meet his own standards of regulatory good management?

SPEAKER: That was a question that matched the previous answer.

Hon DAVID SEYMOUR: Well, first of all, I’d like to congratulate the member on becoming the spokesperson for regulation within the Labour Party. Now, clearly, the Labour Party believes that some, as he would say, duplication is necessary when he’s got all the other spokespeople on the Opposition benches. This Government happens to believe that it is necessary to have somebody focused on regulation, just as the Labour Party appears to think it’s worth having him focused on it.

Mark Cameron: For clarity, does this mean he doesn’t think we’ve been regulating to a high standard already?

Hon DAVID SEYMOUR: That is exactly the point, and you hear it up and down the country, almost wherever you go. It’s people who complain it takes longer to get permission to build a home than it does to actually build it. It’s people who complain that it is almost impossible to get credit without jumping through the most inordinate number of hoops. It’s people who just wanted to open kids’ eyes to the world, and yet find themselves—for example, at an early childhood education centre—opening up, alleging that they have 303 regulations to follow before they can welcome a kid through the door. Over successive Governments we have failed to regulate responsibly. We now have a Government that is going to take it seriously, with—I understand for the first time—a Minister in Cabinet responsible for regulation.

Mark Cameron: What are the areas he wants to focus on?

Hon DAVID SEYMOUR: While the Government has not made such decisions, the coalition documents that formed the Government contemplate regulatory reviews going through sectors of what I might call “victims of red tape and regulation”, sector by sector. It contemplates early childhood education, which I’ve already mentioned as being particularly over-regulated. It mentions the financial sector, which I’ve already mentioned. It also mentions health workforce, where there appears to be real difficulties getting people who are eminently qualified to perform a duty in New Zealand to be allowed to do so here—and we find them performing that duty for citizens of another country shortly after being rejected here. But I’m sure the member, as the chair of the Primary Production Committee, will be pleased to know the documents also consider a regulatory review of the agricultural sector. Thank you, Mr Speaker.

Question No. 4—Finance

4. Hon GRANT ROBERTSON (Labour) to the Minister of Finance: Is she committed to implementing all of the economic and fiscal commitments in the coalition agreements between National, ACT, and New Zealand First?

Hon NICOLA WILLIS (Minister of Finance): Yes, subject to final consideration and decision making by Cabinet.

Hon Grant Robertson: Will the mini-Budget tomorrow give specific details as to how the tax cuts programme of the Government outlined in those coalition agreements will be self-funded?

Hon NICOLA WILLIS: The member, along with others, will have to await the announcement of the mini-Budget tomorrow to get an answer to his question.

Hon Grant Robertson: Is that right? Does she agree with Nicola Willis, who said in September that the mini-Budget would set out the cuts and new taxes needed to pay for the tax cuts promises in the coalition agreements?

Hon NICOLA WILLIS: I can confirm for the member that the mini-Budget we will announce tomorrow will set out the first steps of the urgent economic repair job that our coalition Government has under way to restore New Zealand’s economy after a period of excessive economic and fiscal vandalism.

Hon Grant Robertson: What is the total cost to the Government of the commitments that have been made in the coalition agreements?

Hon NICOLA WILLIS: The individual costings of policies will be dependent on the consideration of Cabinet, the implementation details of those policies, and their phasing.

Hon Grant Robertson: Thank you. So is it correct, then, that the Minister doesn’t know how much the commitments in the coalition agreements cost, doesn’t know how she’s going to pay for her tax cuts; and is her mini-Budget, which the Prime Minister now described as a “mini-mini-mini-Budget”, now actually a “nano-Budget”?

Hon NICOLA WILLIS: No, none of those things are true. I know many, many things and I would suggest, based on my reading of the state of the Government books, I know a lot more about how to be a custodian of public money than the former Minister did.

Question No. 5—Housing

5. DANA KIRKPATRICK (National—East Coast) to the Minister of Housing: What recent announcements has he made regarding Kāinga Ora?

Hon CHRIS BISHOP (Minister of Housing): Yesterday, I announced that the Government has launched a review into Kāinga Ora, fulfilling our first 100 days’ commitment to commission an independent review into the State housing provider’s financial situation, procurement, and asset management. We’ve long been concerned about the performance of Kāinga Ora; whether they’re operating efficiently and effectively. Their performance directly impacts the New Zealanders who rely on them for housing but also the Government books. The independent review will identify ways to improve their performance and value for money, and manage the impact of Kāinga Ora on debt in the Government books.

Dana Kirkpatrick: What concerns does he have on Kāinga Ora’s financial performance?

Hon CHRIS BISHOP: Many. Treasury and the Ministry for Housing and Urban Development have reported that Kāinga Ora’s level of debt has grown from $2.7 billion in 2018 to $12.3 billion in June of this year. Advice publicly released already suggests that if Kāinga Ora continues on its current trajectory, the debt would reach nearly $29 billion by 2033. These increases are concerning, and I’m also worried about the operating deficit, which is $520 million in 2022-23 and is forecast to continue to increase. It’s important to note the deficit has a direct impact on the operating balance before gains and losses (OBEGAL) and continues to put pressure on the return to OBEGAL surplus.

Dana Kirkpatrick: What reviewers have been chosen to undertake this review, and why?

Hon CHRIS BISHOP: We have put together a panel of three expert reviewers with a deep understanding of the social housing and the wider housing sector. Former Prime Minister the Rt Hon Sir Bill English will lead the review team; joining him are Simon Allen and Ceinwen McNeil. These three experts will provide a targeted and focused review to Ministers to report back in March next year.

Rt Hon Winston Peters: Could the Minister urgently put out a press statement explaining what Kāinga Ora means or papa kāinga means because there are journalists out there asking members of Parliament what it means, and this is a desperate situation that we’ve reached at this point in time?

Hon CHRIS BISHOP: Well, I am not a member of Parliament or a Minister who is known to not want to put out press releases. I enjoy putting out press releases and I intend to put out many more about the woeful state the Government—

SPEAKER: No, that’s good—that’s enough. Thank you, that’s enough. Dana Kirkpatrick.

Dana Kirkpatrick: What are the next steps for this review and when does he expect it to be completed?

Hon CHRIS BISHOP: This is a significant body of work and a priority for our new Government. The Kāinga Ora board is being consulted on the terms of reference right now, and they will be released later this week. We will receive the first report back in March 2024. We are all looking forward to receiving the findings.

Tamatha Paul: Supplementary.

SPEAKER: Um—

Tamatha Paul: Tamatha Paul. Wellington Central.

SPEAKER: Sorry, just diving for my sheet. Let me get your name—my apologies for that. Hana Maipi-Clarke—

Tamatha Paul: Tamatha Paul, not Hana-Rawhiti, but thank you for the compliment.

SPEAKER: Tamatha Paul. Look, sorry members, can I just apologise to the member for that. There are quite a few new names to know and quite a few new faces and I’m doing my very best.

Tamatha Paul: Will he commit to ensuring no net loss of State housing in his term?

Hon CHRIS BISHOP: Our intention as a Government is to grow the supply of social housing because the wait-list for social housing quintupled under the last Government, and there are thousands of New Zealanders in need of greater support.

Tamatha Paul: My question was actually about State housing, not social housing, which are two different things. Will he ensure—

SPEAKER: Don’t do that. Just ask a question.

Tamatha Paul: Will he ensure that projects under way including Arlington, which intends to deliver 300 public houses in Wellington Central, will be completed and not scaled down?

Hon CHRIS BISHOP: Yes, our intention while the review is under way is that the current work programme of Kāinga Ora continues. I’m happy to have a conversation with the member about specific Wellington projects because, again, there is a significant need in the Wellington region for social housing because of the woeful state the last Government left social housing in Wellington.

Question No. 6—Local Government

6. Hon KIERAN McANULTY (Labour) to the Minister of Local Government: Does he stand by the Government’s commitment to repeal the Affordable Water Reforms and “restore council ownership and control”; if so, will he guarantee balance sheet separation will be retained?

Hon SIMEON BROWN (Minister of Local Government): Thank you for the question. Yes, the Government is committed to repealing the previous Government’s reforms, and I’d like to be clear that the key principles of our reforms will be to (1) introduce economic and quality regulation of water (2) fit for purpose service delivery models and financing tools (3) setting rules for water services and infrastructure investment, and (4) ensuring water services are financially sustainable, which may include balance sheet separation.

Hon Kieran McAnulty: Is the Minister aware of advice from the Department of Internal Affairs and public comments from credit rating agencies that say balance sheet separation will not be recognised if these reforms are repealed?

Hon SIMEON BROWN: There’s been a range of advice that I have received as I have been approaching repealing the prior Government’s reforms, including the fact that the last Government spent over $1.2 billion but didn’t actually achieve anything.

SPEAKER: That step’s a bit wide, so just calm that down.

Hon Kieran McAnulty: Can the Minister then guarantee that his Government’s replacement of the affordable water reforms will save ratepayers more than they were lined up to under the reforms?

Hon SIMEON BROWN: Our reforms will ensure that local government has the tools that they need to be able to deliver long-term funding and financing of water infrastructure in New Zealand.

Hon Kieran McAnulty: Why won’t the Minister guarantee that ratepayers will save more money by repealing the affordable water reforms rather than sticking with them?

Hon SIMEON BROWN: Well, we are focused on ensuring that councils have the long-term funding and financing tools that they need to be able to deliver water infrastructure in New Zealand. The last Government spent six years and failed to actually get anything achieved in water reform in New Zealand.

Sam Uffindell: What advice has he received on how much money has been spent on three waters reforms to date?

Hon SIMEON BROWN: Well, I’ve received advice that the total expenditure by the prior Government to 6 December was $1,202,062,000—all talk, very little action.

Question No. 7—Transport

7. TIM COSTLEY (National—Ōtaki) to the Minister of Transport: What recent announcements has the Government made on Let’s Get Wellington Moving?

Hon SIMEON BROWN (Minister of Transport): On Sunday, the Government, Wellington City Council, and the Greater Wellington Regional Council announced that we would be ending Let’s Get Wellington Moving, a programme which has failed to deliver the infrastructure that Wellingtonians need. Withdrawing was a key priority in the coalition Government’s hundred-day plan in the National-led coalition agreement, and I’m pleased to say that we’re delivering on this commitment.

Tim Costley: Why have these changes been made?

Hon SIMEON BROWN: Well, it’s a very good question. Let’s Get Wellington Moving had failed to deliver the infrastructure that Wellingtonians needed. Over $160 million had been spent on the programme, of which $82.3 million had been spent on consultants, while just a single set of traffic lights on State Highway 1 has been delivered. This Government is focused on delivery, unlike the former, focused on consultancy.

Tim Costley: What are the next steps for transport infrastructure in Wellington?

Hon SIMEON BROWN: Very good question again. Our coalition Government is committed to delivering key roads of national significance in Wellington, which also support local government to improve the city’s bus corridors. We will deliver a second Mount Victoria tunnel and upgrades to the Basin Reserve as part of our roads of national significance programme.

Question No. 8—Tertiary Education and Skills

8. Hon Dr DEBORAH RUSSELL (Labour) to the Minister for Tertiary Education and Skills: What specific actions, if any, has she taken with respect to the Government’s plan to disestablish Te Pūkenga - New Zealand Institute of Skills and Technology?

Hon PENNY SIMMONDS (Minister for Tertiary Education and Skills): I thank the member for her question. I’ve sought advice on the options open to me, and following that, I’ve taken the following actions. I’ve met with the chief executive and the chair of Te Pūkenga. I have met with members of the Te Pūkenga board, including the new chair. I have delivered a new letter of expectation to Te Pūkenga. I have met with the Tertiary Education Commission and the Ministry of Education and begun work with officials on the development of a work programme to disestablish Te Pūkenga.

Hon Dr Deborah Russell: What is the estimated cost of the plan?

Hon PENNY SIMMONDS: The estimated cost of the plan is being worked through by the officials and by Te Pūkenga, but I can assure the member that it will be considerably less than the $200 million that the previous Government wasted on the establishment.

Hon Dr Deborah Russell: Given her statement to Newshub that their funding will increase, has she requested funding from the Minister of Finance for the Government’s plan to disestablish Te Pūkenga?

Hon PENNY SIMMONDS: Unfortunately, the member failed to take into account the full answer to that, and that is the unified funding scheme that was brought in by the previous Government top-sliced around 20 percent of the funding off the individual institutions and it was used in a contestable way—in a centralised, contestable way. So the additional funding I was referring to was reinstating that full amount of funding back to the institutions.

Hon Dr Deborah Russell: If the funding is therefore coming from existing baselines, then what part of tertiary education funding will she cut in order to fund the estimated $185 million of deficits that our polytechnics are facing in the next financial year?

Hon PENNY SIMMONDS: An excellent question from the member. I will cut the very expensive, bloated head office of Te Pūkenga.

Hon Nicola Willis: Can the Minister explain which Government was in charge when the deficits were created?

SPEAKER: No. No, we’re not having that one—nice try.

Question No. 9—Transport

9. Hon JAMES SHAW (Co-Leader—Green) to the Minister of Transport: Does he stand by the principle in his Government’s coalition agreements that “decisions will be based on data and evidence”?

Hon SIMEON BROWN (Minister of Transport): Yes. The Government’s coalition agreements set out our priorities for this term of Government, and we are committed to delivering these priorities.

Hon James Shaw: What data and evidence did he receive from officials on the impact of repealing the Clean Car Discount on the second and third emissions budgets prior to the Cabinet decision to do so?

Hon SIMEON BROWN: I received a draft regulatory impact statement, which I have instructed officials to proactively release.

Hon James Shaw: What data and evidence on emissions, if any, did he provide to Cabinet on the decision to repeal the Clean Car Discount?

Hon SIMEON BROWN: I advised Cabinet that the emissions budget would be met whilst repealing this scheme.

Hon James Shaw: What data and evidence, if any, did he provide to the Minister of Climate Change on the emissions impact on the second and third emissions budgets of repealing the Clean Car Discount?

Hon SIMEON BROWN: The same evidence and data I provided to Cabinet.

Hon James Shaw: Did he inform the Minister of Climate Change of any risks of failing to meet the second emissions budget as a result of repealing the Clean Car Discount?

Hon SIMEON BROWN: I advised the Minister of Climate Change of the same advice that I received from the Ministry of Transport in regards to those budgets.

Hon James Shaw: Did he invite the Minister of Climate Change to provide options on proportionate action to address any emissions reduction shortfall for transport in the second emissions budget?

Hon SIMEON BROWN: Well, as the member will know as a former Minister of Climate Change, there is work to be done around what will be included in the next two emissions budgets, and that work and advice will be received as part of the process.

Hon James Shaw: Is he aware that the second emissions budget has already been set by Parliament?

Hon SIMEON BROWN: Yes, and the actual activities within, which will meet that budget, are still to be worked—but, as I said in the House last week, the emissions trading scheme is the tool that this Government is going to heavily rely on to meet our emissions reduction priorities.

Hon James Shaw: So was there any proportionate action decided by Cabinet when Cabinet decided to repeal the Clean Car Discount?

Hon SIMEON BROWN: Cabinet agreed to repeal the Clean Car Discount as part of the coalition agreement.

Hon David Seymour: Did the advice provided consider the possibility that any increase in emissions from repealing the Clean Car Discount would increase demand for carbon credits, therefore increase the price of carbon credits and reduce the quantity of carbon credits demanded elsewhere in the economy, thereby reducing emissions; and wouldn’t he expect a former Minister of Climate Change to understand something that simple?

SPEAKER: You can comment on the first part of that question.

Hon SIMEON BROWN: Well, the reality is that the emissions are capped under the emissions trading scheme, and that member, the former Minister of Climate Change, should understand that.

Question No. 10—Education

10. Dr VANESSA WEENINK (National—Banks Peninsula) to the Minister of Education: What progress is the Government making on its 100-day plan in education?

Hon ERICA STANFORD (Minister of Education): Today, the Government has announced a suite of changes to ensure we are focused on teaching the basics brilliantly. All primary and intermediate students will be taught an average of an hour a day in each: reading, writing, and mathematics. A ministerial advisory group has been appointed to urgently review the curriculum and the common practice model, and the distraction of cellphones will be removed from our classrooms. These changes in the 100-day plan are just the first steps in the Government’s plan to lift student achievement, because it is our aspiration to get 80 percent of students to curriculum by the time they leave intermediate, so that they can go on to access the curriculum at high school and gain a qualification so that they can go on to live the life they deserve.

Dr Vanessa Weenink: Who is the ministerial advisory group made up of?

Hon ERICA STANFORD: This group will be made up of a combination of subject matter experts and curriculum experts, outstanding principals, and leading academics from around New Zealand. The group is going to be chaired by Dr Michael Johnston, a senior fellow at the New Zealand Initiative. To his role as chair, Dr Johnston will bring the extensive knowledge of the science of learning that is required to improve educational achievement in New Zealand. Members include outstanding principals like Iain Taylor of Manurewa Intermediate, distinguished subject matter experts like Dr Elizabeth Rata, Professor Gaven Martin, Sir James Chapman, and Dr Melissa Derby of Ngāti Ranginui, all of whom bring the expertise required to ensure our curriculum is world leading and doesn’t leave anything to chance.

Dr Vanessa Weenink: What has the Minister tasked the group with doing?

Hon ERICA STANFORD: This group will be tasked with reviewing the curriculum and the common practice model. The scope of the review will include providing me with advice and feedback on the existing draft, as well as additional content to ensure our curriculum is underpinned by the science of learning. I want to ensure that we have clear annualised progression outcomes to better support teachers to design their programmes of learning, to better support students to develop mastery of the basic skills, and to better support our education system to do what it says on the tin: give every child the opportunity to be numerate, to be literate, to gain meaningful secondary qualifications, and to live the life they choose and deserve.

Dr Vanessa Weenink: How is the Government going to get 80 percent of students to curriculum?

Hon ERICA STANFORD: Recent national monitoring data shows that only around 40 percent of children are currently at curriculum level for mathematics in year 8, and student achievement in co-requisite assessments at high school revealed that only 56 percent passed the numeracy assessment. The recent changes the Government has made will see our children return to the classroom in 2024 undistracted by cellphones, focused on the core skills of reading, writing, and maths for an hour each a day, and we are working at pace to ensure our curriculum and common practice model documents are world leading and backed by the evidence of the science of learning, to support our great teachers. Under this Government, the perpetual decline of student achievement will stop. We want to see children back at curriculum and we want to see New Zealand back in the top ten of OECD countries for academic achievement. This Government is aspirational for our kids and what we have achieved in the last three weeks is just the start. Can I just finish by saying, Mr Speaker, if you will indulge me, happy sweet 16 to my daughter Holly.

SPEAKER: Well, that last remark probably saved you because that question rivalled David Seymour for length, but we’ll just try and keep them a little more concise in the future.

Question No. 11—Environment

11. Hon RACHEL BROOKING (Labour—Dunedin) to the Minister for the Environment: Does she agree with the objectives of the National Policy Statement for Freshwater Management 2020; and if not, why not?

Hon PENNY SIMMONDS (Minister for the Environment): Thank you, Mr Speaker, and I thank the member for her question. This coalition Government is committed—as am I, as Minister for the Environment—to improving freshwater quality for the benefit of all New Zealanders by ensuring a sustainable and balanced approach that works towards improving the environmental outcomes for our waterways.

Hon Dr Duncan Webb: Point of order, Mr Speaker. That really did not address the question; it was about the principles and, whilst it was a policy statement, it really didn’t address the question on notice at all.

SPEAKER: OK, let’s have another crack at it.

Hon PENNY SIMMONDS: Thank you, Mr Speaker. We consider that to have an enduring and sustainable solution there needs to be a balanced approach which recognises the interests of all water users.

SPEAKER: If the Minister has a quick look at the question, it’s asking does she agree with the objectives of the national policy statement for fresh water. The answer she’s given is an outcome, but perhaps address that specifically, if that’s all right.

Hon PENNY SIMMONDS: Thank you, Mr Speaker. No, we do not agree with the hierarchy of objectives, and that is why we have undertaken to replace the National Policy Statement for Freshwater Management to ensure more balanced, enduring, and sustainable outcomes.

Hon Rachel Brooking: Can the Minister explain, then, exactly what parts of the objective in 2.1 she disagrees with, and I will read that out, because “The objective of this National Policy Statement is to ensure that the natural and physical resources are managed in a way that prioritises: … first, the health and well-being of water bodies and freshwater ecosystems; … second, the health needs of people (such as drinking water); … third, the ability of people and communities to provide for their social, economic and cultural well-being now and in the future.”?

Hon PENNY SIMMONDS: Well, I think I have answered it, but I’ll answer it again, and that is: the coalition Government is committed to improving freshwater quality for the benefit of all New Zealanders by ensuring a sustainable and balanced approach that works towards improving the environmental outcomes for all our waterways.

Hon Rachel Brooking: Does the Minister agree with the objective AA1 in the 2014—amended in 2017—National Policy Statement for Freshwater Management that was “To consider and recognise Te Mana o te Wai in the management of fresh water”?

Hon PENNY SIMMONDS: One of the key objectives in our replacement of the NPS for Freshwater Management will be to ensure that a balanced approach is taken in representing the interests of all water users.

Hon Dr Duncan Webb: Point of order. That was, although not on notice, a very clear question about whether the Minister agrees with Te Mana o te Wai, and it didn’t come close to addressing it.

SPEAKER: Yes, except that she has started off, after a bit of time, saying, “No”, and therefore any explanation around that becomes a reasonable answer. Question No. 12—

Hon Rachel Brooking: Supplementary?

SPEAKER: Oh, sorry, Dr Rachel—the Hon Rachel Brooking.

Hon Rachel Brooking: Yes, not a doctor. Thank you, Mr Speaker. Can the Minister explain the role of district councils in managing environmental limits referred to in the Speech from the Throne, which said “The National Policy Statement for Freshwater Management 2020 will be replaced to ensure a local approach, allowing district councils more flexibility in managing environmental limits.”?

Hon PENNY SIMMONDS: Sorry, I didn’t catch all of that question, but I can assure the member—

SPEAKER: Let’s not have any issue. Ask it again.

Hon Rachel Brooking: Thank you. Can the Minister explain the role of district councils in managing environmental limits referred to in the Speech from the Throne, which said, “The National Policy Statement for Freshwater Management 2020 will be replaced to ensure a local approach, allowing district councils more flexibility in managing environmental limits.”?

Hon PENNY SIMMONDS: Thank you to the member for repeating that. In the process of developing the replacement national policy statement on fresh water, we will be consulting widely with all stakeholders, including local authorities, and I can assure the member that we are very invested in ensuring that local communities get the opportunity to customise and to have nuanced processes in place that ensure that at a community level they can be making decisions that are appropriate for that community.

Question No. 12—Prime Minister

12. RAWIRI WAITITI (Co-Leader—Te Pāti Māori) to the Prime Minister: Does he stand by all of his Government’s statements and policies?

Rt Hon CHRISTOPHER LUXON (Prime Minister): Yes, and particularly our desire to improve outcomes for Māori and non-Māori.

Rawiri Waititi: How can he stand by the policy to legislate English as an official language when there has been no public movement for the change, whereas when te reo Māori was made an official language in 1987 it was the result of 20 years of campaigning and a petition signed by over 30,000 people?

Rt Hon CHRISTOPHER LUXON: It’s just common sense. We want English, te reo, and sign language to be official languages of New Zealand.

Rawiri Waititi: Is he not aware that English is an official language by de facto in Aotearoa or is this policy just right fragility?

Rt Hon CHRISTOPHER LUXON: So let’s just make it official.

Rawiri Waititi: Why is he attacking the use of te reo Māori in the Public Service when research shows that public attitudes in support of te reo Māori are at an all-time high?

Rt Hon CHRISTOPHER LUXON: We’re not attacking te reo. We think te reo is a very valuable language that we’d encourage more people to learn.

Rt Hon Winston Peters: As a basic legal precept, can I ask the Prime Minister how can something be de facto legal?

Rt Hon CHRISTOPHER LUXON: Well, our point is that English should be official, te reo should be official, and New Zealand Sign Language should be official languages of Aotearoa New Zealand.

Rawiri Waititi: Thank you, Mr Speaker. What is his response to those calling on him to repay the taxpayer for the funding he used for his own te reo Māori lessons, and does he think good spending of taxpayer money will be to encourage more MPs and public servants to learn te reo Māori?

Rt Hon CHRISTOPHER LUXON: Yes, yes, I do, and that’s why I said earlier that 123 MPs here in this House learning te reo would be a good thing, given they represent all New Zealanders.

Hon Chris Bishop: Point of order. Mr Speaker, the questions have flown back and forth, but the Prime Minister is not responsible for matters that relate to his time as Leader of the Opposition. So I’ll just make the point that on a couple of occasions over the last couple of question times, we have strayed well away from prime ministerial or ministerial responsibility.

SPEAKER: Yes, I know. Often, answers do the same thing. So we’ll just take it as it flows. The Prime Minister’s actually quite good at answering questions, I think, and—[Interruption] Sorry, that was a very un-Speaker-like statement; my apologies to the House for that. I think there is someone going to stand up now and say something.

Hon Chris Bishop: Sorry, I was waiting for Mr Speaker to conclude oral questions.

SPEAKER: Oh, well, you’re quite right—oral questions are concluded.

Hon Chris Bishop: Thank you, Mr Speaker.

Parliamentary Service Commission

Membership

Hon CHRIS BISHOP (Leader of the House): Point of order. I seek leave to move a motion without notice and without debate on the membership of the Parliamentary Service Commission.

SPEAKER: Is there any objection to that course of action being followed? There appears to be none.

Hon CHRIS BISHOP: I move, That under section 15(1)(d) of the Parliamentary Service Act 2000, Jamie Arbuckle, Takutai Tarsh Kemp, Barbara Kuriger, Ricardo Menéndez March, Todd Stephenson, and Tangi Utikere be appointed as members of the Parliamentary Service Commission.

Motion agreed to.

Address in Reply

Address in Reply

Debate resumed from 12 December.

Hon SCOTT SIMPSON (National—Coromandel): Thank you, Mr Speaker. Mr Speaker, can I commence my contribution in this Address in Reply debate by congratulating you and your fellow presiding officers, who are going to adjudicate over the proceedings of this Parliament, the 54th Parliament, in, I’m sure, a very adequate and capable way. We know on this side of the House that you will bring dignity and grace to this office in a way that maybe some have thought was lacking in the past.

The good people of Coromandel are looking forward to a wonderful Christmas and summer period, and part of the reason that they’re looking forward to a wonderful Christmas and summer period is because it will be the first summer Christmas period in four years when we hope to have an uninterrupted peak visitor period over the summer break. We had two summers interrupted by COVID, and then, of course, last year, after Cyclone Hale and then Gabrielle, we incurred massive infrastructural damage to our region. But I was delighted to spend time with my colleague the Minister of Transport and also with the Prime Minister last week up at the site on State Highway 25 where the new bridge that will reopen this week to connect both sides of the Coromandel Peninsula together will allow for the summer that we have not been able to have for so many years.

People may be wondering why it’s so important to the Coromandel. Well, it’s simply this: that ours is an electorate that has a very summer orientated economy. Some of the local businesses on the east coast of the peninsula conduct something close to 80 percent of their annual revenue over that two- or three-month summer period, and if they don’t have access to the tens of thousands of visitors who will choose to holiday in the Coromandel, then they simply don’t have any capacity to make up that lost revenue during the course of the rest of the year. So Coromandel people will be very much looking forward to what we hope will be a good, long, hot, dry summer.

But the good people of the Coromandel electorate suffer in the same way that all New Zealanders do from the cost of living crisis, from the impacts of high and continued inflation, and they also represent very much what has come to be known as the squeezed middle. The good people of Coromandel are representative in so many ways of so much of what we see in other parts of the country: too much crime, too many ram raids, and gang thugs invading the streets of Coromandel town, heaven forbid, in a way—lawlessness of which we haven’t seen in this country before in my lifetime and I hope that we won’t continue seeing. Because I know that my colleague Mark Mitchell is going to do a terrifically good job as the Minister of Police and he will continue to bring a new focus on law and order and on the basic decency that is required of a neighbourhood, a community, or an area like the Coromandel.

This new coalition Government has been in office only for a few weeks, but already it is making very good advances on its 100-day plan. Already, last week, we passed a range of legislative initiatives that are aimed, amongst other things, to first stop the bleeding. That’s really the primary function of the legislative actions that will be taking place this week in the Parliament, because we know, on this side of the House—our coalition partners and all National MPs—that the spending over the last six years has been profligate—no respect at all for taxpayers’ money; a spend-tax-and-be-damned Government that has befuddled the New Zealand economy for six years, and now it’s going to take an awful lot of work—hard work—to turn the ship around.

In fact, ahead of us, we have a massive turn-around job. But I’m very convinced and very supportive of the fact that under the prime ministership of Christopher Luxon we will get that turn-around job that we need as a country. And we’ll get the country back on track. We’ll get the Coromandel back on track. We’ll get regional and provincial New Zealand back on track. We’ll get our urban centres back on track, because ours is a country that has so much potential, so much opportunity, so much unmet potential for the future, not only of our generation but of the generations that will follow us. We have in this debating chamber an obligation to do the right thing for them.

So when we passed legislation last week to refocus the work of the Reserve Bank on controlling inflation and working on their single objective, that was a good thing. It means that the result of that will be that New Zealanders will benefit from a lowered inflation rate sooner than would otherwise have been the case. And when we think for a moment that the economy in New Zealand shrank in the last three of the four quarters that we’ve had, we get a sense of the dilemma and the financial drama and risk that the country currently is in.

I was personally very, very pleased to see the bold decision made by Nicola Willis to curtail the Picton - Cook Strait ferry project that had just blown completely out of control and was representative of a State agency, KiwiRail, who just bowled along and expected the new Government to continue writing the blank cheques. Well, that kind of profligate spending has to stop. So not only was that a good decision in terms of the New Zealand taxpayers, but it was a good decision in terms of sending a very clear message to the governance body and the senior management at KiwiRail that, actually, they do have to be more accountable for the taxpayer funding that provides the money that they need to continue to do their job.

But what’s more important, I think, from that decision about the Cook Strait ferries is actually the message that it sends to other Government departments and other Government agencies: the buck stops, and there needs to be a much greater respect for taxpayers’ spending. Labour Ministers in the previous administration were committing literally billions and billions of dollars to projects that had massively insufficient due diligence and that were lacking in clear documentation or a sense of purpose about what they were doing. Well, we want to change that. Not only do we want to change it, we are going to change it, because every single dollar that a Government or a Government department or a State agency spends is a dollar that has been earned by the hard work of New Zealanders, and that money has to come from somewhere.

Gone are the days when a Labour Government—a socialist Labour Government—can merely just borrow and print with gay abandon and never take any impact on what it means for hard-working New Zealanders. Socialists don’t like it. They call themselves, these days, progressives, but, actually, they’re just good, old-fashioned socialists. For the sake of my new colleagues who may not have heard me say this before, socialists and socialist Governments really only have three policy initiatives that they apply to every single issue. They either want to ban it, tax it, or make it compulsory; often, they want to make all three. Those are the only three policy initiatives that any socialist Government has: ban it, tax it, or make it compulsory.

We have a much greater faith in the logic and the understanding and the passion and the initiative of New Zealanders to have a brighter vision for the future of the country than anyone on that side of the House, sitting opposite, could even begin to imagine. We aren’t going to be constrained by narrow, socialist thinking. We do have faith in New Zealanders’ ability to be inventive, to be entrepreneurial, to have faith in the work that they create and the jobs that they create, the businesses that they create. Ours will be a Government that encourages and doesn’t vilify businesses. We want to make sure that businesses thrive and grow, because thriving and growing businesses lead to a thriving and growing economy that leads to greater employment that leads to a greater prosperity. Because on the Opposition benches—where they are back, some would say, where they belong—we know that their ideals simply don’t match the aspirational objectives of most New Zealanders. That’s the result that occurred in the election in October.

I am delighted now to be working with coalition partners who share our common objective and goal for the future of the country. It’s a goal that is full of vision, of hope, and of aspiration, unlike the six years of stifling, borrowing, and spending that we’ve had, with no accountability for taxpayers’ money. We will be a Government for all New Zealanders, whether they happen to be in the beautiful Coromandel or the Taranaki - King Country, or indeed any other part of New Zealand.

So I want to conclude my contribution in this Address in Reply debate by extending a warm welcome and invitation, for as many people who want to, to come and visit the beautiful Coromandel. Come and spend some summertime—and, more importantly, some summer money—in the beautiful Coromandel. You’ll receive a very warm welcome and we’ll get the Cathedral Cove open sooner or later. Thank you, Madam Speaker.

Hon RACHEL BROOKING (Labour—Dunedin): Well, on the line of thought from the previous speaker, the Hon Scott Simpson, can I say I’m very pleased to be standing here as the member for Dunedin, a new role for me. I’m very pleased to have that. And, of course, Dunedin did have the best summer in the country last year; I’m hoping that it will have it again. It’s another fine place to come and visit. But of course Dunedin is most lively when the students are in town, because both the university and the polytechnic are so important for Dunedin. So one of the things I’ll be working on in this term with my colleague, Dr Deborah Russell, is the funding of that tertiary sector.

Also, of course, if you were driving through Dunedin any time recently, you will have seen both the out-patients and the in-patients buildings of the new hospital rising out of the ground. They are giant, giant structures and are so important for this city and the region. Again, that is something that I will be working on: making sure that that build continues and does not in any way become a public-private partnership.

Now, of course, like many places, Dunedin has a number of social issues but it is a very creative and wonderful city. So I’m very pleased to be the representative for it and to work with people on all those local issues.

But here, really talking in the Address in Reply about the Speech from the Throne, I can tell you that I am worried—very, very worried.

Hon Chris Bishop: Oh, cheer up.

Hon RACHEL BROOKING: I say that as the spokesperson for the environment—and I’ll be talking to that Minister soon, no doubt, about his drastic and unnecessary and backwards legislation.

But in the Speech from the Throne and statements that we’ve had from various Ministers—we’ve heard statements about blind frogs and the need for more mining from Ministers—we got awarded the “Fossil of the Day” on the first day at the UN Climate Change Conference (COP)—on the first day—

Hon Chris Bishop: You guys got it too!

Hon RACHEL BROOKING: —and it was for a brand-new policy. It was suggested in the Hon Melissa Lee’s speech that it was because of something that the previous Government had done, but it was very specific to this Government: reversing the oil and gas ban. It was very specific for that, and that is not something that I am proud of. Nor am I happy about last week—that we were sitting in urgency to do three stages of a bill on a clean car discount that is set by regulations. Could have been changed by those regulations, but no: we spent all of last week debating that.

Of course, what a terrible thing that is. We have signed up to emissions reductions. We have emissions reductions plans and there was one thing that was working: the Clean Car Discount. Now, as of 31 December, it’s scrapped. We heard today the Minister of Transport could not answer the questions put to him about how we are actually going to reduce emissions. We’ve already decided the next Budget; what is the emissions reduction plan going to include if you just scrap everything to do with active transport and public transport and clean car discounts? It’s very disappointing.

Then, of course, we hear today in question time and also in the Speech from the Throne that the national policy statement on fresh water—“Oh, we don’t want water to be swimmable anymore.” That’s all I can take from the answers that we got today, “We have no aim for water to be swimmable; we just want people to use that water as much as they want.” Now, it’ll be interesting to see what changes are made, but they were very disappointing answers from the Minister today.

Then we’re going to have, today, legislation up to repeal both the Spatial Planning Act and the Natural and Built Environment Act. This is very interesting because both sides of this House have been talking about, for many years, how the RMA—the Resource Management Act—has been failing, and it’s been failing on both the big fronts: and that is the environmental outcomes, they have degraded; but also the efficiency of the system, that has got worse as well. The way the RMA has worked is that everything really comes down to fights over resource consents, and that is inefficient.

So we know that in any planning laws, there’s always going to be some trade-offs in that planning space. People are going to have different points of view about whether a landscape should be protected or if we should have wind turbines on that landscape. There’s always going to be difficulties with planning legislation, but we do need it. What we had done with the Spatial Planning Act and the Natural and Built Environment Act was much better long-term planning for our infrastructure. So, to be clear, in the 30-year time period, we could say, “Right, what areas are going to grow or might grow, where is it suitable, where are we going to need to move away from because of climate adaptation? OK, let’s get those people who are involved with that infrastructure—so central government as well as the local governments—to plan for growth in areas that we don’t want to be growing into.” That was the Spatial Planning Act.

Then we had the Natural and Built Environment Act, and one of the main parts of this was to set environmental bottom lines very clearly. Yes, to have some more national direction as well—that was something that was always anticipated for the RMA but didn’t come for many, many years. But also—and this is a critical point—to move all the GDP in the system that happens at the consents phase, to move that up the chain; to move it into the regional plans or into that national direction so that when someone is coming to work out whether or not they might want to undertake an activity or a project, they can see that clear direction, that this is an area that, say, might be affected by climate change. So no, don’t build new houses in that area; that might be prohibited. But in these other areas where the infrastructure is already there or it is soon to be upgraded, then yes—yes, you can do that. You can do that, maybe within some constraints, like what in the RMA is called a restricted discretionary activity or controlled activity, where there’s listed items that the decision makers can make conditions around on your consent and have some controls. But otherwise, yes, you can do that. Much more certainty for businesses, much more certainty for councils, and to enable those councils within a region to work with each other.

In my career as a resource management lawyer, a lot of my time was spent working for one council, having to appeal another council’s decision. That was the legitimate way that those councils could talk to each other, through appeal documents. So if you take out all those steps and all those different plans and have the regions making one document for the entire region—or the councils; not taking out the district councils and making the regional councils in charge—having all those councils work together, then that is a lot more efficient.

I keep hearing from the other side that they are interested in efficiency, they are interested in business, they are interested in cutting red tape. Yet all this is doing is going back to the system that we know does not work. It makes no sense.

In addition, the changes that we made to the Natural and Built Environment Act—and I say “we”; you were on the select committee—included, of course, being stronger on climate change, both enabling more mitigation, so ways that we can reduce emissions, and also being clearer about not building in hazard zones where we know that there’s going to be climate adaptation problems.

So it’s very disappointing that these bills will be repealed today. Hopefully, they won’t be repealed. Hopefully, the Minister opposite will see the light and work with parties to improve that legislation—all legislation can always be improved—and to amend it in a way that gives comfort to some of the National Party’s concerns. Those concerns that I heard in the debates on the bill were around the use of new phrases leading to more litigation; hearing some submissions on renewable electricity, which were then addressed in the bill; and that more things were going to be centralised. These are all things that could lead to amendment rather than repeal.

I am hopeful, though, on one area, and that is in waste. The previous Government did some very good work on waste, getting ready for some new legislation, and I am hopeful that the new Government will take up the work in terms of waste minimisation. Thank you, Madam Speaker.

PAULO GARCIA (National—New Lynn): I move, That this debate be now adjourned.

Motion agreed to.

Debate interrupted.

Urgency

Urgency

Hon CHRIS BISHOP (Leader of the House): I move, That urgency be accorded the passing through all stages of the Secondary Legislation Confirmation Bill (No 2) and the Employment Relations (Trial Periods) Amendment Bill, and the introduction and passing through all stages of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill and the Taxation Principles Reporting Act Repeal Bill.

The Government has a 100-day plan. The legislation we are moving through urgency gives effect to a variety of commitments as part of that hundred-day plan. For reasons of convenience, we are also including the Secondary Legislation Confirmation Bill (No 2), which is required, as the Deputy Speaker knows, to confirm a range of instruments before the House rises for the year. Ordinarily we would not pass that through urgency, but just for completeness we are putting it in the urgency motion.

DEPUTY SPEAKER: The question is that the motion be agreed to.

A party vote was called for on the question, That urgency be accorded.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

Introduction of Bills

Introduction of Bills

DEPUTY SPEAKER: I understand it is the intention of the Government to introduce two bills.

CLERK:

Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill, introduction.

Taxation Principles Reporting Act Repeal Bill, introduction.

DEPUTY SPEAKER: Those bills are set down for first reading presently.

Bills

Secondary Legislation Confirmation Bill (No 2)

Second Reading

Hon CHRIS BISHOP (Leader of the House): I move, That the Secondary Legislation Confirmation Bill (No 2) be now read a second time.

This—

Hon Andrew Hoggard: Great bill.

Hon CHRIS BISHOP: Well, it is a great bill, whoever said that. I think it was Minister Hoggard, who’s a new member to the Parliament, and he won’t have seen one of these pieces of legislation moved before. But it is—

Hon Andrew Hoggard: So excited.

Hon CHRIS BISHOP: Well, you are sorry. And maybe, in your ministerial roll, you’ll have the opportunity to engage with it at some point. In fact, I think you probably will, because, actually, as I read it, one of the matters covered in the instruments we are confirming includes extending and amending levies on egg producers and also on the owners of pāua and rock lobster quotas, continuing the export prohibition on green-lipped mussels under a certain shell size, and correcting some tariff drafting errors, so it may well be the case, Minister Hoggard, that you indeed engage with this. In fact, many of the pieces of secondary legislation that the House is confirming have to do with agricultural matters. And it’s one of these little constitutional quirks that there’s a range of instruments where they get passed by various departments—well, they get passed through the various regulatory processes that they have to go through—but then they have to be confirmed by the Parliament, and it’s very important that happens, because if that doesn’t happen by a certain date, they get revoked. And so traditionally, this is one of the last acts of a Parliament for the year, and it’s a very important piece of legislation.

It’s been reported back from the Regulations Review Committee. Now, the Regulations Review Committee—

Ryan Hamilton: Woo.

Hon CHRIS BISHOP: I’m looking down the back there to the new deputy chair, the aptly named member for Hamilton East, Ryan Hamilton, and I know that he’ll be doing a good job. And the member who’s just resumed her seat before I spoke, the Hon Rachel Brooking, is a former member of the Regulations Review Committee. In fact, I see many members in the House: Dr Duncan Webb—I believe he’s been a member before—Hon Rachel Brooking, and no doubt some future members to come as well. It’s a very important committee.

Hon Andrew Bayly: What about me?

Hon CHRIS BISHOP: What’s that?

Hon Andrew Bayly: What about me?

Hon CHRIS BISHOP: Andrew Bayly—yes, indeed. Well, no one could ever forget about Andrew Bayly. It’s because you’re sitting right directly behind me, Minister, that I couldn’t see you, but it’s a very important committee. In fact, we started our time in Parliament on that very venerable committee together, and—here’s a blast from the past—the Hon David Cunliffe was the chair of the committee, and David Parker, the former Attorney-General.

Anyway, I digress. I’d like to thank them for their diligent work considering the bill. It’s really important we pass it, but I know members want to get on to more substantive matters, such as the resource management matters we’re about to discuss. Thank you, Madam Speaker.

DEPUTY SPEAKER: The question is that the motion be agreed to.

Hon Dr DUNCAN WEBB (Labour—Christchurch Central): Thank you, Madam Speaker. The irony is that this, in fact, is the only bill that is urgent in this urgency motion, because as Mr Bishop identified, these regulations will be revoked or will expire if this legislation isn’t passed, which is quite different from the other material on the Order Paper.

I think it’s worth noting that this does come before the House as almost pro forma legislation, but confirmation bills are, in fact, a really important parliamentary check on executive power. In my view, confirmation clauses are something which we would do well to think more carefully about, because whilst the debate here might not be extensive—and indeed we have a vote but no debate on the third reading—what does go on at the Regulations Review Committee is genuine parliamentary scrutiny.

Now, I feel somewhat for my colleagues on the committee who are new to the committee because they were presented, essentially, with the draft report that the prior Parliament had done the scrutiny of. So they didn’t get a really good look at what goes on, and the fact that the secretariat of that committee do carefully engage with the relevant departments.

Hon Rachel Brooking: Very good secretariat.

Hon Dr DUNCAN WEBB: Yeah, very good, very competent, and very diligent secretariat, thank you, Rachel Brooking—behind me. But I think it is really important to recognise that this is an important constitutional check. The other thing to note about this particular bill, as is common, is that these regulations or secondary legislation, more appropriate given the new legislation around that, is levying; largely levying, through actual levies or through excises or duties or what have you. And those kinds of regulations which, essentially, require payment from citizens to the Crown are deserving of particular scrutiny.

It is also important to recognise that the committee picked up a couple of quirks in there and has brought this legislation back to the House in an amended form. In many cases you wouldn’t expect that, but it turns out that a couple of those pieces of secondary legislation relating to a reduction in fuel excise were in fact no longer in force, so you really don’t need to confirm levies and regulations relating to levies that are no longer in force. You’ll see if you look through the tracked version of the bill that they actually aren’t there anymore. But if you do look at the other levies there, you can see why they may be niche in some ways, like a levy on the sale of arable crops, which is obviously an industry levy. But we do know—this new Government makes a bit of a thing of it—that those levies are important to businesses; important in two ways. Important because they come off their bottom line, which obviously affects profits, and nobody likes that in one sense, but, equally, funds important industry bodies. And, in fact, they create markets, ensure standards are kept, and are real advocates for the industries themselves.

Those levies, like the arable crops levy and, of course, things like the biosecurity entry levy make sure our borders are safe, make sure that our crops, our agriculture is kept safe from foreign pests and what have you—absolutely critical, and we want to make sure that happens. And of course, the export standards, the green-lipped mussel in fact isn’t so much a levy but a prohibition on exporting undersized green-lipped mussels, and we want to make sure that export qualities are kept up.

So I do absolutely want to make it clear that whilst the bill comes to the House with a truncated procedure, it isn’t a bill which gets a truncated scrutiny before the Regulations Review Committee. And I must say I’m very gratified to have been elected unopposed—which is unusual for me—to chair of the Regulations Review Committee. I fear I may not last long there, but it’s really good to be there and to see enthusiastic new members there who are really interested in what’s going on in this committee.

The constitutional check of a confirmation bill is one which I think we can’t underrate, particularly when we’re dealing with things like levies and what have you. So we have had a good look at them. Most—all but two, in fact—we have recommended be confirmed, and other than that, though, it’s good to come back to the House and say, “Yes, the reasons for putting these various levies and rules, excise—what have you—in place stand”. We’ve checked it again, we consider it still to be appropriate, and this House, using not delegated authority but the authority of a House of Representatives, does that. So it’s good to come to this House with the first, I think, select committee report as usual—straight out of the gate—first select committee report reported back to the House, I believe, and to come back and say we recommend that these pieces of secondary legislation be confirmed. Thank you.

RICARDO MENÉNDEZ MARCH (Green): Tēnā koe, Madam Speaker. The Green Party supports the Secondary Legislation Confirmation Bill (No 2) and endorses the reflections that have been made by previous speakers around the importance of those existing checks and balances on this type of legislation. We commend the Regulations Review Committee members for their constructive and collaborative work, and therefore we commend this bill to the House.

Motion agreed to.

Bill read a second time.

DEPUTY SPEAKER: This bill is set down for third reading immediately.

Third Reading

Hon CHRIS BISHOP (Leader of the House): I move, That the Secondary Legislation Confirmation Bill (No 2) be now read a third time.

Motion agreed to.

Bill read a third time.

Bills

Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill

First Reading

Hon CHRIS BISHOP (Minister responsible for RMA Reform): I present a legislative statement on the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill.

DEPUTY SPEAKER: The legislative statement is published under the authority of the House and can be found on the Parliament website.

CHRIS BISHOP: I move, That the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill be now read a first time.

This is a great day, because what we are doing is getting off the statute book two pieces of legislation that would be a backward step for the environment and also the ability to get things done in New Zealand. The National Party campaigned at the 2023 general election on repealing the Natural and Built Environment Act—or the NBA as it is known—and the Spatial Planning Act (SPA) by Christmas. I’m pleased to say that our coalition colleagues from the ACT Party and New Zealand First made similar commitments, and, as part of the coalition agreements between the National and ACT parties we’ve agreed to do that. Hence the need for urgency before Christmas, to get it off the statute book.

The effect of this bill is to repeal those two pieces of legislation and to revert back to the Resource Management Act (RMA) 1991 as an interim measure. This is not ideal, and no doubt members on the other side of the House will make that point, because—as I think everyone acknowledges across the Parliament—the RMA is not fit for purpose in its current form. We do need a new system that will make it easier to get things done and look after the environment, but doing that will take some time.

Now, the reason why we have to move at pace to get rid of these pieces of legislation is that there’s a 10-year lead-in time that has started, basically, already, through local government and all of the various players around that. And the sooner we stop it, the sooner we can make clear our intentions and the sooner we can stop all of those costs that will be incurred by everybody for a system that is ultimately going to be repealed. So we’ve taken the pragmatic view that it’s better just to get it all off the statute book as quickly as possible, and we’re doing that this week under urgency.

My intention is to introduce a new package of resource management legislation by the end of the term. I’ll be working alongside my colleague Simon Court, Parliamentary Under-Secretary for RMA reform and Parliamentary Under-Secretary for infrastructure, in that work, and also alongside the Minister for Regional Development, the Hon Shane Jones, who has a lot of interest in this area as well.

Mark Patterson: Details, details.

CHRIS BISHOP: What’s that?

Mark Patterson: Details.

CHRIS BISHOP: Details indeed, yes, and, well, he provides many details and I’m looking forward to those discussions.

We did not take the decision to do this lightly, and it’d be fair to say one of the first things I said to the officials at the Ministry for the Environment, when I became the Minister for RMA Reform, was that I understood that many people spent a lot of time and energy on these reforms. I acknowledge the work of the Ministry for the Environment over the last five years—there’s been an enormous amount of work done by officials and, actually, by external stakeholders as well, in creating the SPA and the NBA. I said to them, when I met them at my first meeting, “I acknowledge that there will be a lot of people who will feel, you know, perhaps a little bit upset about the intentions of the Government.” But I sat on the Environment Committee alongside my colleagues as we went through that process and I engaged with a lot of stakeholders during the debate in the last Parliament, and the bills—the Acts as they now are—just simply won’t work. The overwhelming majority of the written and oral submissions on the legislation said words to that effect. And the conclusion that we came to as a new Government is that the legislation would be worse than what we have now, and so therefore we’re going back to what we had while we work to create a new system.

The Natural and Built Environment Act promised more red tape, not less. It promised shorter delay, but it will not deliver that—in reality, it will create longer delays and it will create greater uncertainty, not less. You just have to look at the Natural and Built Environment Act—it’s 900 pages long. It’s the same size as the RMA, except it introduces a wholly new legislative schema, a wholly new legislative framework, and it introduces whole new concepts that are unknown to New Zealand law. So it has all of the length and complexity and the breadth of the current RMA but makes it even worse by introducing new concepts that will be difficult for people who use the NBA to navigate and understand. So we’re going back to what we had for the next couple of years while we build a new planning system, and this will remove the implementation burden from local government.

This is a relatively simple bill—it’s mostly simple. This will largely be a technical process, focusing on transitioning and saving parts of the NBA that are already in use. The bill addresses these matters to allow for an orderly repeal and to ensure that users of the RMA have a clear understanding of how their interests are affected. The fast-track consenting regime in the NBA is going to be saved in the interim. So one of the things that we considered as a Government was what we do about the fast-track regime that is in the NBA. There was a COVID fast-track regime, which self-expired, and the Natural and Built Environment Act has its own fast-track regime. So while we develop our own fast-track proposals, as a coalition Government, we’re faced with the dilemma of what we do with the fast-track, because no one wants to be in a situation where we couldn’t have speedy access to resource consenting. What we decided to do, after a bit of debate, was, essentially, repeal the NBA but save the fast-track regime in the current NBA so it’s there on the statute book while we develop our own regime.

The other thing the bill does is extend the deadline for when new freshwater planning instruments must be notified by three years, to 31 December 2027, out from 31 December 2024. A relatively simple change, this will give councils additional time as we review the National Policy Statement for Freshwater Management. If I could summarise our approach to that, it is to review, repeal, replace, and rebalance, and that is what the Government will—

Hon Rachel Brooking: You don’t like swimmable water.

CHRIS BISHOP: Oh, no, it’s not about that. That’s a cliché—I thought you were going to criticise my use of alliteration, but instead you used a cliché. No, we’re not going to get back into the tired old debates around that; we are going to repeal, replace, and rebalance, and review the national policy statement for freshwater.

Repeal of the Spatial Planning Act is straightforward. There’s been no spatial planning processes that have been triggered—no decisions have been made under the Act—so we are just getting rid of that Act while we, as I say, navigate ourselves through replacement legislation. I think one other point that members opposite will make is that spatial planning’s a good thing. Yes, that’s true, as a concept and in principle. But my criticism is that the spatial planning regime the last Government set up was something that was wholly disconnected from everything else that was going on inside local government—most obviously the three waters regime, which is in a state of flux to some extent now as well, because of the commitments made at the election for which the Government received a mandate. But also the Future for Local Government Review, which the Government announced with great fanfare and then dropped a report on. And so you had both spatial planning going on at the same time as the future of local government, at the same time as the Government was doing a variety of things with three waters. And local government quite rightly said, you know, this is a nightmare to deal with. You’ve got three disconnected pieces of—well, three connected pieces of reform, all going on at the same time in different ways. There’s no coherence as to how all that comes together. So we want to take a bit of time to get it together as a Government.

I regret the use of urgency, but it is important we do this under urgency, bypassing the committee and consultation. Many of the issues that will no doubt be canvassed in this debate and through the committee of the whole House were canvassed in the last Parliament, so it’s not like the Parliament hasn’t had a good chance to consider these issues. We had a good go-round in the last Parliament, a good go-round at select committee, and a thorough debate in the last Parliament, and we took to the election a policy to repeal it by Christmas and we received a mandate for that, and therefore we consider ourselves to have a mandate to do it.

Our goals for RMA are simple. We must protect the environment but we must make it easier to build houses, and we must make it easier to do things in this country whilst also protecting the environment. Therefore, it gives me great pleasure to move the first reading of this important bill.

Hon RACHEL BROOKING (Labour—Dunedin): Thank you, Madam Speaker. I’m not sure why members are clapping when the Minister responsible for RMA Reform just said that we want to do better at protecting the environment and build more houses—this will do the opposite. The total opposite. That was the point of both the Spatial Planning Act and the Natural and Built Environment Act, because the Resource Management Act is broken and has not been working. We tried to do some bipartisan fixing of it in the last term, with enabling councils—well, people to build houses in our big cities with the medium-density residential standards. But National seems to have pulled back on that, which is deeply unfortunate, regressive, and goes against everything the Minister was just saying he was interested in achieving.

Also, I’m very angry that we are doing this Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill in urgency in all three stages—all four stages—which is quite different from urgency of just one stage of a bill. We have only received this bill today, and we are being told—

Simon Court: You knew it was coming. You were put on notice.

Hon RACHEL BROOKING: “Oh, everything was canvassed in the last Parliament.” Mr Court, words matter. The words in this bill matter. Some things are being continued and some things are not. And we are only going to be able to discuss this in urgency, today, in this House, and that is not good enough.

Hon Member: And the next day.

Hon RACHEL BROOKING: Oh, we’re going to be—well, we will see, because, of course, it’s only in two parts, with most of it being in its schedule. And I can say that we are very interested—

Simon Court: Which one?

Hon RACHEL BROOKING: —in the intricacies of that. Schedule 1—yes, there are two schedules, thank you. And we will be talking about that in the committee stage. But it is difficult because there are a lot of pieces of the Natural and Built Environment Act that are being rolled over, or bits of sections, so it does take some time to refer to those bits of those sections to see what is being retained and what is not being retained. Of course, they are all out of context as well. So that is why I’m deeply disappointed that this Government is taking such a cynical approach to introducing this on the Tuesday before Christmas and saying we have to do all stages in urgency.

I also just heard from the Minister, that, well, spatial plans—they might be a good thing, but, you know, the last Government did the future of local government and three waters as well, and how do they all merge together? Well, the future of local government was not a legislative reform; it was a question put out to local government: how do you see yourselves; what do you want to be doing? The last Minister of Local Government, the Hon Kieran McAnulty, was very clear to those councils that the Labour Government would not do anything that those councils did not want to do. So now it’s interesting to hear the Hon Chris Bishop say, “Oh, it’s a reform that’s going to happen.” Maybe that’s going to happen. And what’s happening with three waters as well? How is that all going to link into the spatial plans? So I’m sure local government will be very interested that this new Government considers that the work on the future of local government should continue in some way and somehow be merged with the spatial plans and whatever is going to happen to that three waters work.

All of this is very important work. And in terms of the three waters, I was involved in that legislation and the select committee process. It was very cognisant—the Finance and Expenditure Committee—of the relationship with this resource management legislation as well so that they could dovetail together. And that work happened, and I congratulate the officials involved in that.

I note that the Minister said he acknowledged it was a little bit sad for officials that this was all going. I’d say it’s more than that, and it’s totally unnecessary. We heard a couple of concerns about the legislation that Mr Bishop said had been so well canvassed in the last Parliament, and that was around new terms, new words, and that the Act is very long. Length does not equate to complexity. Sometimes, spelling out all the steps in a statute makes decision making much simpler. If you have simpler decision-making, that means that you don’t have as much litigation. So I disagree with that point as well.

Of course, we’ve heard that some of the fast-tracking provisions apply—not all of them, and we will be asking the Minister about that in the committee stage. But, again, it’s very difficult to know what I’m talking about in this first reading stage, when we’ve only just got the bill. And I’m not sure what the Minister was referring to when he was saying that freshwater planning is going to be extended by three years. Why do we need that; what are the consequences?

LAN PHAM (Green): Tēnā koe, Madam Speaker. These are my first own words in this House, so I’d first like to congratulate you on taking up this rather courageous endeavour of keeping us members in order, and I want to thank you for that.

It’s an honour and a privilege to have a place and a voice in this House, and it is with disappointment that I speak today in these rather short-sighted and misguided circumstances of this repeal. We’re at a real crunch point in time, in human history, where, if we don’t move forward in our thinking and treatment of our precious environment, te taiao, we will set up our kids, our grandkids, and future generations with a truly impoverished future—something I’m sure not one member in this House is aiming to do. Yet here we are, in urgency, with this Government taking a sledgehammer to what could be amended with appropriate and fair public consultation. We’re yet to hear a defendable argument from the Government that stacks up as to why amendments could not remedy the concerns expressed in a way that actually honours both the sheer cost and time that the public and official engagement has put into this and, ultimately, would achieve better outcomes for all of us.

As a past local government councillor, I’m particularly horrified at the disservice this does to the 3,000 people, iwi, hapū, businesses, industry, academic, local government, and Public Service organisations who engaged in the process of creating these bills over the term of the last Government. I want to acknowledge the considerable time and effort of members, across this House, who were part of that robust select committee process, led by the Hon Eugenie Sage. Within the time constraints that they did have, they went through the appropriate processes of democratic rigor and public accountability, they listened to submitters, and they actually changed things in the bill as a result. If we’re getting rid of something that’s a step forward, we at least want to have something better to step to. But, no, like canning our world-leading smoke-free laws, like reopening deep-sea oil and gas drilling, like scrapping fair pay agreements, this Government is stepping us back decades—back to the Resource Management Act (RMA), which has largely and comprehensively been concluded to be a failure; failed because we bought into the false idea, and we’re hearing it again here this afternoon, that we can balance the environment and the economy rather than understanding that there is no economy without a functional environment.

In the time since the RMA was enacted, we’ve been evolving as a country in understanding our history and the rightful place of tangata whenua in exercising tino rangatiratanga. The Natural and Built Environment Act (NBA) was finally reflecting that evolution, alongside the immense body of evidence and acceptance that indigenous wisdom and mātauranga—that when we ensure the health and wellbeing of our environment, te taiao, we ensure the health and wellbeing of ourselves.

Did the NBA and the Spatial Planning Act go all the way in fully recognising these important Te Tiriti concepts? No, they did not, but they went a step forward, and the Green Party acknowledged and welcomed that. No matter the framework that the Government may fashion ahead, we need to see progress towards a stronger Te Tiriti - based relationship that upholds and resources the kaitiaki role and tino rangatiratanga of tangata whenua across Aotearoa and works with them to protect taonga species, landscapes, seas, and significant places. Ki uta ki tai—mountains to sea.

Despite my frustration at the short-sightedness and political pettiness of this bill being brought to the House, I still believe that it is not only possible but entirely necessary to build an awesome future for everyone within the limits of our fragile and beautiful planet. To do so, we need effective laws and a planning and environmental management system that upholds Te Tiriti and provides for younger and future generations. Sadly, the repeal of this legislation takes us backwards and much further away from that goal.

Finally, if this repeal is indicative of this Government’s approach to environmental matters, then it’s something every New Zealander who cares about our environment needs to be aware of, and I’d like to assure them that the Green Party will continue to be a voice for nature and Te Tiriti in this House in the face of a Government that does not appear to understand, value, or uphold the importance of either.

Hon ANDREW HOGGARD (Associate Minister for the Environment): Thank you, Madam Speaker. Like the previous speaker, Lan Pham, this is my first opportunity to speak in this House, and I guess never in a million years did I think I would be up here speaking to support the reintroduction of the Resource Management Act (RMA). Spending many years complaining about it, it seems a very weird position to be in, bringing it back. However, sometimes you’ve got to take a step back to be able to go forward. We were going down the completely wrong track with the RMA and then it got even worse with the Natural and Built Environment Act (NBA). This bill was going to take things in a very bad position. Like the Minister responsible for RMA Reform said, we had a piece of legislation that was exactly the same size as what was previously there. It was not making things simpler. As the Chief Justice commented in her submission, “The Bill is long and complex. It deals with issues of great significance for communities in Aotearoa New Zealand, that are frequently litigated before the Environment Court and other courts. To date there has been little consultation with the judiciary about the [applications] of the proposals contained in the Bill for the operation of the Environment Court, or for other courts.” When the Chief Justice submits against a piece of legislation, that should send up a huge red flag to anyone listening that maybe we haven’t got it right, and, unfortunately, that didn’t happen.

Now, I dare say the only winners with what is in the NBA are going to be lawyers. It is not going to be the environment. We are going to spend decades and decades working out what these terms mean, and the impact of that is going to be a dramatic loss in confidence of many businesses throughout the community trying to get ahead, trying to make investment decisions for the future. People will not be able to plan for the future if they are uncertain as to where things are going. Yes, the RMA isn’t that particularly great, and that is why we will be replacing it with decent legislation that we will be working on this term that will respect property rights and ensure that businesses throughout this country, people wanting to build, can get ahead and be able to do this.

I also want to speak about the National Policy Statement for Freshwater Management 2020 (NPS). As part of this bill we are pushing out the time line for when that is going to have to be reported on by councils, to give us an opportunity to replace this. The NPS is truly and utterly unworkable. We are seeing councils up and down this country coming out with plans that are going to be truly disastrous for their local communities. In Otago, you are seeing requirements for reductions that are going to take off a couple of hundred million dollars from the local community. In Northland, the only option many farmers up there will have is to plant huge tracts of their land, potentially up to 50 percent, into trees. Now, I don’t know how many of you saw the article on One News, I think it was the previous night, talking about the disaster that is happening with planting pine trees and the acidation that is being caused in soils by this. Also, you don’t have to think back too far to the impact of forestry slash and the erosion that was being caused in the events up in Tai—

Hon Member: Or Cyclone Gabrielle.

Hon ANDREW HOGGARD: Yeah, in Cyclone Gabrielle, exactly—thank you. In the Manawatū, my catchment, we’ve had a council come out with a plan that they’ve had to rush ahead because of this time line, saying there will be a 50 to 100 percent reduction. They have no idea what that actually means. They’ve got no time at all to try and decide what this actually means.

People talk about the need for swimmable rivers. I am proud of the fact that my daughters are able to go swimming in the river that runs alongside our farm. It is vitally important to me, like it is to farmers up and down this country, that we take care of what is happening on our lands. Myself and my colleague Mark Patterson will shortly be meeting with catchment care groups, talking about the great work they are doing within this country. You know, farmers are moving ahead. We need legislation that is going to help us, not hinder us. Thank you for the time.

Hon MARK PATTERSON (Minister for Rural Communities): Thank you very much, Madam Speaker. New Zealand First rises to support this repeal bill. It is a unique ability of the previous Government to have started with something as bad as the Resource Management Act and made it worse. That is something that New Zealand First are firmly of the view of, and I think the case has been made well by the previous two speakers within the coalition. We do support and we are looking forward to the fast-track legislation coming through, the amended fast-track legislation. I know the Hon Shane Jones will be playing a role in that. We are going to get some stuff built in this country. We have lost all ability, we are in economic malaise, and we are going to dig our way out of it with some decisive legislation which will get this country back moving again in the right direction so we can afford the social services and the like, and the infrastructure that we all want.

I’d just like to pick up on the Hon Andrew Hoggard in the last contribution. I do congratulate him on his first contribution, and congratulations to the Green member Lan Pham as well.

We are meeting with a group shortly. Farmers have got this. We know what we need to do. The catchments themselves, it is a catchment by catchment process with a broad set of rules with an empowering—

Hon Member: Oh, what about all those big commercial farmers?

Hon MARK PATTERSON: The farmers of New Zealand are really committed to this stuff. We know that there’s a provenance story here. We know there’s a social licence issue here. We know for our own families, as Andrew Hoggard just pointed out, these things are as important to us as they are to everyone else, and we’re going to bring some solutions forward that have got full buy-in from our farming community. We will do this, and we’re looking forward to opening those engagements that the farming community certainly didn’t feel like they had under the previous Government. So New Zealand First will be supporting this legislation. Thank you, Mr Speaker.

DEBBIE NGAREWA-PACKER (Co-Leader—Te Pāti Māori): Tēnā tātou e te Whare. Look, it is not surprising that the coalition Government on my left, to our right, got less than 10 percent of Māori votes. We stand here today enjoying and supported with not only six of the seven Māori electorate sets but also the mandate of 30 percent of those Māori who did vote. We’re really clear on the messaging that we’re wanting to make sure that this coalition Government of lots of things understands.

First of all, this is something that’s really important. It’s something that is about our role as kaitiaki that we enjoy and do for everyone. No matter what your individual perception is, this isn’t something that should be rushed, and certainly rushed on—I mean, cripes, even breakfast shows are off at the moment.

But what we have is a repeal of the Natural and Built Environment Act 2023 (NBA) which was implemented last term to replace the Resource Management Act 1991 (RMA). The NBA provided an integrated framework for regulating both environment management and land use. It was something that was extensively consulted and engaged with at grassroots, certainly in their own regional levels and also in the National Iwi Chairs Forum. There was extensive engagement about what needed to happen. This bill aimed to provide iwi, hapū, and Māori with opportunities to participate at all levels of the RMA system. That included providing proactive monitoring of Te Tiriti performance by the National Māori Entity; that de-complicated the use of current tools within the RMA, which is the Mana Whakahono ā Rohe; transfers of power in joint management agreements; and providing for a minimum of two Māori appointed members on regional planning committees, or RPC, out of a minimum committee membership of six.

Te Pāti Māori opposed the reforms last term on the basis that they did not adequately honour Te Tiriti’s rights or protect the environment. So you can imagine what we think about this one, which is not only rushed but also takahēs the mana of mana whenua, of tangata whenua, of kaitiaki. So we oppose this bill on the basis that it is once again the Crown ripping up progress that was achieved in good faith; again, incremental good faith, but relationships that mattered to tangata whenua. We have been contacted extensively by Māori, by iwi leaders, by grassroots leaders, by hapū, by whānau, those in regional and local communities, and they are basically saying that the Crown has no mana, and you are backtracking on commitments that were made as soon as it suited you, and politically you have reneged on what it is that you committed to those communities.

We also push back for resource management legislation to implement Te Tiriti o Waitangi, and acknowledge Māori rangatiratanga and kaitiakitanga in aspects of all legislation. You’re continuously changing the resource management law which makes it bad for planning. A whole lot of people have put a whole lot of things on hold because there’s just no certainty about what’s going on. We need to think about making mokopuna decisions, and look at tangata whenua leading a development of legislation—legislation that, for the most part, has been locked in—and able to be part of effective long-term planning. This bill repeals the reforms of the RMA undertaken by the last Labour-led Government. I don’t know where you’re going with some of the decisions that this Government is making, but one of the things that’s been really important is the status of settlements, the status of Te Tiriti, the status of legislation, and the relationships that are indeed going out on the ground between iwi and local and regional government. I put to you that your fast-tracking is compromising some of those relationships, which you will need—which you will all need.

So we oppose the reforms for several reasons. There’s huge work that was put in by te ao Māori, particularly iwi analysts. We have tried to improve legislation and make it as strong as possible from a tangata whenua perspective. There’s nothing to be fearful of there. There’s still massive gaps and weaknesses, and this repeal means that all that work done last term has gone to waste. The deficiencies with the original RMA will remain. So we’ve gone round and round in circles. In some ways, the reforms were worse, particularly from an environmental protections standpoint. But what we have, effectively, is an area where the setting environmental limits that prevent ecosystems degrading from their current states will continue. So, regardless, Te Pāti Māori - led resource management law would look significantly different to the original RMA and the 2023 reforms. What we tend to be focused on is tangata whenua ownership, management of natural resources, and strong environmental practices and protections. Kia ora rā.

DAVID MacLEOD (National—New Plymouth): Thank you, Mr Speaker. At the end of the day, we are all endeavouring to get legislation that allows us to use our natural environment in a way that does not adversely affect the air, the land, the fresh water, or the coastal environs that we all enjoy daily. We are wanting an environment that allows people and entities to be able to get on with it, to get on with their developments in a timely fashion, while having appropriate community engagement.

Having projects that take eight years to consent and only two years to build is absolutely ridiculous. If we don’t repeal the newly enacted regime, it will only get worse. That’s not just my words, that’s the words also of professionals that work with this on a daily basis. They call it a dog’s breakfast. We need to get back to the former Resource Management Act (RMA) and start again with a process that will produce the outcomes that we all seek in a timely fashion. I commend this bill to the House.

Hon Dr MEGAN WOODS (Labour—Wigram): This is a day where New Zealand is once again being taken backwards by the National Party and its coalition partners in Government.

What we see here is a very clear case of a Government that is putting ideology ahead of tackling the problems that New Zealand faces. Now, there sometimes are things that members in this Parliament can agree on. One of those is that the Resource Management Act (RMA) was broken, and that the RMA needed fixing. That’s why, over the last term of Government, substantial and significant work was undertaken. This wasn’t about a Government doing what we are seeing from this Government today—ramming something through, under urgency, all stages, no regulatory impact statement (RIS), no chance for the public to have a say. Instead, the Environment Committee of the last Parliament heard over 3,000 submissions; 3,000 members of the public fronted up and told the Parliament what their wishes were. That is the basis of the legislation, and 94 percent of those submitters supported the reforms that were in front of them. Substantial work was done with iwi, substantial work was done with stakeholders everywhere, because it was broken and it needed fixing.

What we are seeing today is a retreat back to bureaucratic red tape that will mean that we cannot build the houses and the infrastructure and protect our natural environment in the ways that we need to. That is a shameful stain on this Government in its first weeks of power.

The RMA was first introduced and made into law in New Zealand in 1991. It is fair to say the world has changed, particularly in the way that we need to protect our environment, and the way we need to ensure that we are allowing activities that we need to occur in our country to occur. We need to take into account water quality, we need to take into account climate change. These are things that people were not thinking of when they drafted that legislation in 1991. Of course, 1991 was when the world first saw the emergence of the World Wide Web—in January of that year. It was the year after the end of the Cold War, and it was when grunge was only starting to emerge as a strange new sound. The world has changed a lot since 1991, and what we need is legislation that reflects it. What we are repealing today is legislation that was fit for purpose for 21st century New Zealand; legislation that had the ability to not only protect our environment but also take us forward as a country in the ways that we needed to, in a way that respected the rights of iwi, and the ways in which we could do that as a modern nation.

That is what this Government is repealing. What are they doing? They’re saying, “We’re going to take you backwards, but we have absolutely no idea what we’re going to put in its place. We are so bereft of ideas, not only did we spend nine years last time that we were in Government”—from the National Party—“trying to reform the RMA and failing at every step, we’re now coming to this House, under urgency, all stages, no RIS, no chance for the public to have a say”—

Hon Peeni Henare: No vision.

Hon Dr MEGAN WOODS: Absolutely right. My colleague the Hon Peeni Henare is absolutely correct. They are coming to this House with no vision. They’re saying, “We’re going to repeal it. Yeah, we got no plans. We got no vision. We have no idea. We had no idea last time we were in Government and we certainly have no idea when we’re in Government again.”

So there are a lot of questions that need to be asked over the course and passage of this legislation under urgency, because not only is it all stages under urgency—no select committee stage—but the substance of the bill is included in schedules of the Act. We will have a lot of questions to ask about each and every item in the schedule of the Act, because that is what the purpose of this Parliament is for.

This is a step backwards for New Zealand, it is a step backwards for our environment, and it is a step backwards for creating the houses and the infrastructure that 21st century New Zealand needs. I look forward to members on the opposite benches getting to their feet, telling us what they plan to do, and showing New Zealand, for once, whether or not they have a vision, and I fear the answer is no.

MIKE BUTTERICK (National—Wairarapa): Thank you, Mr Speaker. I speak in support of the repeal of the legislation. It’s overly complex and will undoubtedly add another further burden to businesses struggling to get ahead.

I find that it’s absolutely staggering that the Labour Government managed to introduce even more bureaucracy to a system already overburdened with bureaucracy, red tape, and weight. Even more red tape will strangle provincial electorates like the Wairarapa electorate, and I know that businesses in the Wairarapa electorate will be delighted that this red tape will be removed and that this Government will introduce new resource management legislation by the end of the term that will be far more amenable to progress. I commend this bill to the House.

Hon PEENI HENARE (Labour): Thank you, Mr Speaker. Thank you very much for the opportunity to stand and speak in the first reading of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill.

I was heartened by the contribution made by my colleague the Hon Dr Megan Woods. I reflect back to 1991 when an 11-year-old Peeni Henare watched the All Blacks lose to Australia in the Rugby World Cup, an 11-year-old Peeni Henare watched the Kiwis beat the Kangaroos in Melbourne for the first time ever, and a young 11-year-old was preparing to go into the form 2 class of one Hon Kelvin Davis. That was a long time ago, and by God has the world changed—and thankfully so.

What we’ve seen in the time since the Resource Management Act (RMA) is a clear agreement in this country that it wasn’t fit for purpose, that it did not work, that despite the good intentions in the original RMA bill, it did not work. Multiple Governments over that time have tried to make changes to the RMA. Many have tried and many have failed.

Under the past Labour Government, we were able to make sure that not only did we have a piece of legislation considered by the House but, more importantly, that piece of legislation was consulted on broadly and right across this country. We spoke to experts, we spoke to the people who will directly be impacted by the RMA, we spoke to iwi, we spoke to hapū. We made sure that all of this country’s voices were heard on the work done on the repeal of the RMA under the Labour Government and the establishment of the Natural and Built Environment Act and the Spatial Planning Act.

I’m really disheartened that this particular Government has come here today having not consulted with any of them. What I know we’ll hear from the other side of the House is, “Oh, well, we were given a mandate at the election.” But that doesn’t mean that they’ve been out to consult with iwi—and many on that side of the House I’ve heard speak on the Treaty settlement bills in this House and say how good it is that now iwi find a seat at the table, that iwi will have a voice in local government and central government.

Now, we will be putting the acid on this Government to make sure that those particular pieces of legislation are upheld; that the intent and the spirit in which Māori and hapū in particular have approached these particular pieces of legislation are upheld. We will be putting the acid on this Government to make sure that all of the voices are heard in this particular process. It’s important because, as my colleague has already mentioned, there is no vision. We’ve only been told that they’ll repeal it and then we’ll look towards seeing what we have to do then. They don’t know the size of the undertaking that’s required for something so significant.

I look across the other side of the House and I see the member for Tukituki. The Havelock North inquiry into drinking water that took place and actually cost lives in this country was a big part of making sure that when we look towards the resource management in this country, we have a bill and a piece of legislation that actually looks after the interests of our people. What’s happening here is the repeal of a hard-fought piece of legislation that makes sure that the good whānau in Havelock North, in Tukituki and whānau right across this country know that the resource management in their area is done to a standard that they deserve, and that their interests are also considered at the same time as the commercial interests that are driving this particular bill.

Tom Rutherford: Come back to the bill.

Hon PEENI HENARE: And while that member might sit there and yell, “Come back to the bill”, I’m going to be telling that member we’ll be putting the acid on him to make sure that all of the repeal that’s been put through, in this particular instance, is going to be run through the wringer by this Opposition. We are strong and clear on knowing what our people want out there.

My final bit to this contribution is to say it’s quite easy when you look towards such a rushed piece of work. All you do is follow the money and you’ll follow where the money leads to. It leads to a Government that is, purely on ideology, repealing a piece of legislation that actually was hard-fought for by this entire country. I will be sure—

Simon Court: No, it wasn’t. It was overwhelmingly rejected.

Hon PEENI HENARE: I will be sure to, for the benefit of Mr Court here, because I know in the last term of this Parliament, he stood here and begged for tikanga lessons from this House. Well, he’s going to get one today when we go through this bill, and I encourage him to stay here, and all the members on that side, while we run this particular bill through the legislation wringer and ensure that the voices of our people are heard. Mr Speaker, thank you.

A party vote was called for on the question, That the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill be now read a first time.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

Bill read a first time.

ASSISTANT SPEAKER (Greg O’Connor): This bill is set down for second reading immediately.

Bills

Second Reading

Hon CHRIS BISHOP (Minister responsible for RMA Reform): I move, That the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill be now read a second time.

Not a lot has changed from when I moved the first reading of this bill, some 50 minutes ago. Apparently we’re going to get a tikanga lesson from the Hon Peeni Henare. That’ll be very interesting, I’m looking forward to that, as he apparently stands up for his people. Actually, Mr Henare will find—if he hasn’t already discovered this—the law is for all, not just his people or our people, or Labour Party people, or National Party people, or Māori people, or Pasifika people. The law is for all. That’s actually the way Parliament works. He’s about to get the—

Hon Peeni Henare: Treaty clauses.

Hon CHRIS BISHOP: Oh, the Treaty—oh, yeah, yeah. I’m happy to have a conversation about the Treaty clause, because there’s a Treaty clause in this, there’s a Treaty clause in the Resource Management Act (RMA), and there’s a Treaty clause in the Natural and Built Environment Act (NBA).

We’re getting rid of the NBA and we’re going back to the RMA 1991. Tell you what we are getting rid of: the amorphous and unclear legal term in relation to te Oranga o te Taiao, which would have caused chaos through the judicial system and the council planning system as everyone navigating the new regime worked out what—

Hon Peeni Henare: The High Court found a way through.

Hon CHRIS BISHOP: What’s that?

Hon Peeni Henare: The High Court found a way through.

Hon CHRIS BISHOP: Oh, OK. Right. Well, firstly—I mean, that is not true. Secondly—

Hon Peeni Henare: On tikanga, it’s true.

Hon CHRIS BISHOP: Well, yeah, I mean, it’s a wee way away from the debate, the issue of tikanga. But the point I’m making is the correct one, which is that when you introduce an unclear and new legal term into something as difficult and as complicated as planning, you need to know what you are doing, and the last Government did not know what they were doing with this. That is why many legal experts who have looked at this issue have made that precise point, which is that the RMA is guilty of many things and there are many issues with it, but, to some extent, people know where they stand. So they know what the Treaty clause in the current RMA means, they know how it is interpreted through the courts, and they know how it is interpreted through the various council planning documents that fall within the hierarchy of the RMA. There is well-settled case law and jurisprudence on what the Treaty clause in that legislation means.

The NBA strengthened the Treaty clause in a way that would have had unclear outcomes and, most importantly, it introduced a new legal term which would have ended up going all the way through to the Supreme Court before anyone knew what it would mean and what it would have meant in practice. In the meantime, people who actually want to do stuff in this country and also protect the environment would have been left unclear as to what the legal ramifications of that Act were.

So Parliament, through the repeal legislation that we are now undertaking, is going back to the status quo ante so that we can have a proper and thorough look at it. I questioned the Minister for the Environment during the passage of the NBA bill in the last Parliament, and the answers were, as I’m sure Mr Court would agree with me, wholly inadequate as to what the implication was of putting in place the phrase “te Oranga o te Taiao” and asking all decision makers pursuant to the NBA to uphold it.

The other thing that we are unpicking and doing away with is the subordination of everything to the protection of the natural environment. Our view, on the Government benches, is that the balance in the NBA was wrong. We canvassed, at length, during the first reading and second reading of the NBA in the last Parliament, exactly the problems with that. Look, reasonable people would disagree on that balance. But we took to the election a proposal to repeal these Acts by Christmas, and we are doing so.

It was interesting to listen to Megan Woods’ speech, the former Minister of Energy and Resources, because one of the notable things about the NBA was that the renewable energy sector was vociferous in their opposition to the NBA. Now, everyone in this Parliament, I think, acknowledges that we need more renewable energy. It’s going to be one of the key ways we meet our climate goals, our net zero commitments, and also, frankly, grow the economy while decarbonising it at the same time. That is the future.

Scott Willis: So why kill the Clean Car Discount?

Hon CHRIS BISHOP: What’s that?

Scott Willis: Why kill the Clean Car Discount? That’s demand.

Hon CHRIS BISHOP: Well, because—we’ve been through this so many times. The Clean Car Discount is a reverse Robin Hood scheme. It makes people who find it hard to transition away from fossil fuel - burning cars—tradies and farmers—pay more and it recycles that money to people who can afford to buy Teslas. In the last two years that it has been operating, $100 million has been paid to Tesla owners—paid for by tradies and farmers. That is stupid. I’m sorry; that is a dumb idea. And it does not lower emissions—that’s the other thing. The Greens have got to get it through their heads how the emissions trading scheme works. There is a cap on emissions—

ASSISTANT SPEAKER (Greg O’Connor): Yeah, Mr Bishop, the trouble with having an “in and out” across the House is you can sort of tend to get away from the bill. Can we come back.

Hon CHRIS BISHOP: OK. Yeah, no, fair enough. Well, I was just responding to an interjection. But, you know, we’ll come back to that in due course.

I was making a point about renewable energy and the vociferous opposition from the energy sector. The Wind Energy Association turned up to the select committee and they were pretty critical of the bill. I said, very directly, “Will it be easier or harder to build a wind farm if this bill passes?” And they said it would be harder. Well, that fails the test, surely, of protecting the environment and growing the economy and also growing renewable electricity.

Contact Energy turned up—and, you know, members will have their views about private electricity and all the rest of it, but the reality is that they’re a major player in the electricity sector. They own a significant number of generating assets around the country—by the way, without any taxpayer dollars going into it; it’s a privately owned company, 100 percent privately owned. So the capital that’s invested into the electricity market, the taxpayer gets for free, in that sense. Anyway, I said to them, “Well, what do you think about the bill?” And the Contact Energy submitter said, “This bill”—which is now the Act we’re repealing—“is the single biggest barrier to decarbonisation of the New Zealand economy.” The single biggest barrier, because the reality is that our planning laws have a significant impact on how easy it is to get renewable energy up and running.

To take a simple example, the West Wind wind farm at Mākara—great wind farm; some of the best wind in the world in Wellington, as all Wellingtonians know, about a 43 to 44 percent capacity factor. It took two years to build it, eight years to consent it.

The Wairākei Power Station, which has been generating clean—well, relatively clean—renewable baseload energy—goes like the clappers, geothermal energy, baseload power, straight into the grid—been going since the 1950s. It took them nine years—not to consent the operation of it in the 1950s but to reconsent it so the thing could keep operating.

So we need to make it easier to build wind farms. We need to make it easier to build more hydro. We need to make it easier to build solar, which is becoming increasingly economic. We need to make it easier to build more geothermal, and that means smashing through the regulatory red tape that holds our energy system back from decarbonising. There are billions and billions of dollars of capital waiting to be deployed into New Zealand because of our enormous renewable energy endowment that New Zealand is blessed with. What we need to do is allow that capital to flow. The capital will not flow when people are faced with shorter consent times, like this Act provides; legal uncertainty about how they will get a consent; amorphous legal phrases that they will have to navigate and appeal through the courts and send up to the Supreme Court over nine long successive—

Scott Willis: How will you stop them sitting on consents?

Hon CHRIS BISHOP: What was that?

Scott Willis: How will you stop them sitting on consents and not building?

Hon CHRIS BISHOP: The member again does not understand markets—the member just does not understand. Firstly, he doesn’t understand the emissions trading scheme; secondly, he doesn’t understand the electricity market, right? So, over time, the price of electricity is going to rise and more and more investors will invest in order to make a return from the electricity market. That is the way the market works. The emissions trading scheme sets a price on carbon; that price will rise over time. Renewable energy is already economic and will become more and more economic.

Over time, if we get the system properly set up and well regulated and we let price signals work, we will exit Huntly from coal—and the last Government imported three times more coal than the Government before it, because they stuffed the market. And if we get rid of the regulatory barriers like Lake Onslow, which the last Government was obsessed with, which hung over the electricity sector for four years and people were not prepared to invest—getting rid of all of that will decarbonise the economy and grow the economy at the same time.

But the key point is this: you’ve got to get the planning regime right. This Act that we are repealing was a step backwards for that and that’s why we’re repealing it.

Hon RACHEL BROOKING (Labour—Dunedin): Sorry, Mr Speaker, I did make a call, I promise, but the House was rather rowdy. That was an interesting speech from the Minister there about his frustrations with the consenting of renewable energy. I agree. Renewable energy is very important for New Zealand, and we should be able to consent it in the appropriate places in a much faster way, in a much better way than what happens under the Resource Management Act (RMA). But what this bill does is it repeals this new legislation that would be helpful, and goes back to the RMA. The examples that the Minister gave were decisions made under the Resource Management Act (RMA), which is what we are going back to with the repeal of this legislation.

I also then heard from the Minister something I’ve heard many times before, and that is that he did sit in on some select committees and hear some submissions where people made negative comments about the bill. With all the kindness of my heart, I’m pretty sure that the select committee report does not have the Hon Chris Bishop’s name on it, because he was a part of that committee for a short time and he did attend select committee meetings, and that’s all on camera—we can all see that—and of course he’s always a very engaged member as well. But he was not there when the select committee was going through the analysis of the submissions and making the amendments to the bills. Because, of course, nobody on that select committee wanted to frustrate renewable energy that might be more easily passed under the RMA than this new legislation. That is not what the committee was interested in at all.

Of course, there were many amendments to the bills and, as I said in my first reading speech, part of the structure of this whole legislative change was that decisions are made up the chain rather than at the consenting stage. So the point of this legislation is to do better. And I totally refute the statement made by one of the newer members to the Parliament, the Hon Andrew Hoggard, I think it was, who said there’s going to be more jobs for lawyers with this new legislation. The point of moving things up the chain is that you don’t have all the lawyers and planners involved at the consenting stage. So I very much disagree with that point as well.

We heard also the Minister saying there that there were many new terms—and this is something that I agree was canvassed in the last Parliament; I do not disagree with that. And he said there’s words or phrases like te Oranga o te Taiao and nobody knows what it means and it will result in a whole lot of court action. But, of course, that was a point that was raised in submissions as well, and it was very purposeful to include the purpose of the Act being to uphold te Oranga o te Taiao.

Given the debates that happened in that select committee, the select committee then decided to define what that meant. So section 3 of the Natural and Built Environment Act talks about the purpose of the Act and te Oranga o te Taiao means all of the following: “(a) the health of the natural environment; and (b) the relationship between the health of the natural environment and its capacity to sustain life; and (c) the relationship between the health of the natural environment and the health and well-being of people and communities; and (d) the interconnectedness of all parts of the environment—”

Simon Court: How is somebody supposed to make a decision with all of that?

Hon RACHEL BROOKING: —“and (e) the relationship between iwi and hapū and te Taiao that is based on whakapapa.” Now, then there is at section 3A the means for achieving the purpose of the Act, because I hear Mr Court call out and say, “Well, how do we know how to use it?” That was why section 3A was included.

Now, these are new terms, and I don’t disagree with the fact that they are new terms—[Interruption] And I hear the noise in the Chamber at the moment—some in support of the new terms and some against the new terms. But the point is that if this is your fundamental problem with the huge amount of work that went into both the Spatial Planning Act and the Natural and Built Environment Act, then those things can be reviewed. And it would be possible to go back—if that was the thing that you hated the most about this legislation—to the purpose of the RMA, which is sustainable management, without undoing all the work that went into trying to change the system so that those bigger decisions are made further up the chain so that we can have a more efficient resource management system, and one with clear environmental bottom lines.

We’ve also heard that there’s going to be changes to the national policy statement on fresh water, and I have not yet seen where this is in the bill—of course, we’ve only just got the bill today—so we will be asking questions about that. But I’ve heard the other side laugh about swimmable water as if it’s a meme or something. This is a critical change between national policy statements made under previous National Governments and what Labour campaigned on in 2017, which is that we need our water to be swimmable. This is what people in New Zealand very much care about.

I also heard from the Hon Mark Patterson that we’re going to get stuff built and something about digging our way out of an economic malaise. This troubles me greatly. I’m not sure how going back to the RMA is going to do this. I presume that he means that because the fast-tracking provisions, or some of them, are not being repealed from the Natural and Built Environment Act, we’re just going to see diggers out all over the country, and that seems to have no regard to our environment and our biodiversity crisis that we have in this country. I don’t know how it relates to climate change either.

I’ve also heard that there was some speculation or some assertions that the farming communities were totally opposed to this new legislation and want to go back to the RMA and just want to do things their way, but when I go and talk to farmers, they are often worried about what the bigger commercial farmer across the road might be doing and they accept that there is a need for regulations. Of course, all regulations need to be sensible regulations and this also applies to our exports as well. Our trading partners are very interested in the fact that we have good environmental legislation and we need to continue with it.

We’ve also heard in the Speech from the Throne that “The Natural and Built Environment and Spatial Planning Acts will be repealed and replaced with genuine reform that will make it easier to build.” Again, I’m not sure what this means and how that will be processed. Clearly, it doesn’t mean just going back to the RMA, but the way that the members across the House are talking, it does very much sound to me that they think that everything now can avoid the RMA because we know that the RMA takes a long time and is inefficient and doesn’t do as well for the environment as it could do, but it does do a lot better than having no regulations and no environmental standards. But it makes me worry that the Government, the coalition, thinks that we can just fast track everything, anything we want, and that it will make it the decision of the Ministers to fast track whatever it is that we want to dig our way out of this economic malaise that we heard about, and that is—

Simon Court: We’re just keeping the bits of the NBA that you wrote—the fast-track bits. Didn’t you write that?

Hon RACHEL BROOKING: That is worrying. And I’m hearing now from Mr Court “Well, didn’t you write the fast track?” I’m not yet sure what provisions of the fast track are going to apply and how they’re going to apply. And I’m also not sure what’s going to happen to the RMA. We are going back to the RMA at the moment, yet we’re also hearing that the national policy statement for fresh water is going to be totally gutted. That is what we heard at question time today. There was no clear answer to my questions: if the pretty sensible objective of the national policy statement for fresh water would continue. These are statements referring to Te Mana o te Wai that go back well into National Party Governments, including the 2014 national policy statement and the 2017 changes when National was in Government as well.

This is quite a change and it’s not what people were voting for when they thought that cost of living was the big issue of the day and to change the Government at that stage. New Zealanders are very proud of their environment and this is a terrible piece of legislation.

ASSISTANT SPEAKER (Greg O’Connor): The question is that the motion be agreed to.

Hon JULIE ANNE GENTER (Green—Rongotai): Tēnā koe, Mr Speaker. Tēnā koutou e te Whare. I rise to speak on the second reading of this repeal bill and I want to start just by saying, as someone who studied urban planning and is a qualified planner, that the Green Party has long been the voice for having a better approach to planning—one that gets better outcomes for our natural environment, for our people, for our towns and cities, and that is entirely possible. However, it is not what is being achieved by this repeal bill.

The current Government has a pretty incoherent position when it comes to solid planning to achieve the outcomes that we need. The reality is that many of the outcomes that were frustrating people are not linked to the fundamental planning legislation itself but to the planning rules that sit underneath it. That was a problem that I long brought up about the Resource Management Act (RMA). In fact the Minister who gave the first speech in this debate—before either of us were members of Parliament, we talked at length about some of the harmful impacts of planning rules that had been adopted from North America that didn’t have evidence behind them, that were causing large compliance costs but also creating environments where it was harder for people to walk, cycle, take public transport; higher land costs because it forced car-dependent urban areas through planning rules that required large off-street car parks rather than managing parking appropriately. This unintentionally subsidised single-occupant vehicle trips but also spread our cities out in a way that makes them—well, it’s worse for the environment, it’s worse for the climate, it’s worse for health, it’s worse for our communities.

So there’s huge opportunities to do things better in a way that reduces costs but also, most importantly, recognises that the most important fundamental aspect of everything we do is the natural environment. That is the fundamental basis of life on this planet. It is clean air, it is clean water, it is healthy soil, and if we don’t have those things—if we don’t have forests, if we don’t have native, indigenous biodiversity then we are going to be in trouble as a species, and we are in trouble right now, as a species. So, fundamentally, we need to recognise that we can’t live on money. Money is just a symbol of value and, you know, it is a useful symbol of value in some cases but fundamentally it’s not the basis of life, and we have to have environmental and planning law that protects the fundamental basis of life or we will have nothing; we will have nothing in the future.

So when it comes to this repeal bill I just want to very quickly lay out some opportunities for better policies that would achieve the outcomes we want in our towns and cities, and with renewable energy and the climate. The Greens campaigned on some of these policies, like our climate resilient cities policy which would have laid out the funding tools and rules that would be necessary to ensure that we had nature-based solutions for water management; that we had better public transport and active transport to connect our towns and cities; that we enabled more housing in our cities, where it makes sense, along with more green spaces. Those things are fundamental; they’re easy to achieve with most cities. There’s heaps of cities around the world doing a good job of that. New Zealand is still not doing that and, fundamentally, the Greens are the only ones, I think, who have the practical solutions for that.

The clean power payment also would have addressed issues in our electricity market in a way that would have directly affected people’s cost of living; it would have reduced their power bills while massively increasing distributed solar energy and energy efficiency in our buildings. That’s something that Government could do that has nothing to do with resource management law.

This current National - ACT - New Zealand First Government is fundamentally incoherent and confused on these issues. They say that they care about renewable electricity, but they aren’t willing to take on the vested interests in the market and the four large players to address those issues. All they will do is say, “Remove red tape, remove red tape, remove red tape.” What is that a code for? It’s not for smarter regulation, which we would like it to be; we would love that. The Greens have been campaigning for better rules around renewable energy since National was last in Government and they did nothing to develop a national policy statement last time they were in Government that would have made it easier for more generation. Why not? Because fundamentally there’s a lot of vested interests that profit from high marginal cost of electricity that come from the coal-fired power station that that last National Government, last time they were in, did absolutely nothing about. So it’s totally empty rhetoric from the Minister and from National, ACT, and New Zealand First when they say they care about renewable electricity. It is rubbish, they don’t understand what the barriers are, and they’re not going to actually address them.

That’s the same when it comes to the farming sector and water standards. We have communities right across New Zealand being affected by high nitrate levels in the water, serious health concerns, and they will not do anything about it because—remember what happened last time they were in Government? They disestablished Environment Canterbury—elected people—because they wanted to make it easier for a few vested interests to continue getting permission to take water at a rate that is totally unsustainable; water they don’t even pay for. You’ve got private interests taking water, diminishing our aquifers, polluting the water to the point that there’s higher levels of colon cancer and bowel cancer.

Simon Court: Absolute rubbish; misinformation.

Hon JULIE ANNE GENTER: Simon Court says this is misinformation. So that tells you everything you need to know about this Government, which is they will not listen to evidence, they will not prioritise the health of our communities. They will prioritise the bottom lines of companies, corporates, at the expense of the environment and the health of our people because that’s fundamentally the people who put them in power.

So what we had with the RMA, and I’ve long been a critic of the RMA, is a permitting regime not a planning regime. The effects-based regime—and again this was something that initially was started under the neo-liberal fourth Labour Government and brought into law under the National Government that came afterwards. Ultimately it says, “If you have enough money and power, you can do whatever you want.” Because you can hire the lawyers and the experts and in the meantime councils are snowed under with high costs and high requirements around plan making but they aren’t really given the tools to do proactive planning about what should go where and respecting environmental bottom lines. Look at the jurisdictions in the world which have, by the way, thriving economies, high levels of employment, high levels of manufacturing—particularly I’m thinking of Germany—and really well-connected urban transport networks.

You know, in some parts of the Germany they’ve managed to achieve relatively high levels of renewable electricity; high standards for energy efficiency and building, and planning which enables homes and neighbourhoods to be completely planned around public transport and cycleways. We get, in those cities, lower transport costs, lower land costs, healthier environments, healthier people, healthier communities that can’t be delivered under our current planning regime because local councils do not have the ability to do that proactive planning to the same extent. Rather, it’s private landowners. The interests that these people in Government are representing are able to do private plan changes to maximise the profit and return on greenfield development to be subsidised by central Government with motorways here and there that they don’t have to pay for, that directly results in their land increasing in value but ultimately puts more traffic on our road networks, creates towns and cities that are expensive and expensive to live in.

So, ultimately, while our position is nuanced, because we didn’t think everything was perfect in the Natural and Built Environment, and Spatial Planning Acts—there were improvements and there was opportunity to do things much better. This repeal bill is basically throwing away six years of work, a quarter of a billion dollars, on something that might have gotten better outcomes, which should have gotten, definitely would have gotten better outcomes for the things that matter most: people and our planet. Ultimately, this National - New Zealand First—

Hon Member: And ACT.

Hon JULIE ANNE GENTER: —whoever they are—ACT Government are simply here to represent vested interests, to make it easier for people to profit—small groups of people to profit—while destroying our environment. They don’t even believe in public health, is what I’ve heard from Simon Court. They don’t even believe the evidence around the relationship between nitrates in the water and bowel cancer. This is the Government that we have to live with for now, but the Greens will continue to campaign, because we know that the values of New Zealanders align with the values of the Green Party and we’re the ones who truly understand the challenges and have the solutions.

SIMON COURT (ACT): Well, what we’ve heard there is the Greenpeace 1991 talking points, but that’s not relevant to what we’re here to do today. New Zealand needs resource management law that actually allows us to build infrastructure and housing and allows New Zealand businesses to invest with confidence in assets that produce things.

Hon Rachel Brooking: Come on—come on, Simon, medium-density residential standards.

SIMON COURT: That’s right, the Hon Rachel Brooking, we’re here today to repeal the terrible legislation that you and your Government spent five years cooking up; today it goes in the bin. What New Zealanders need is to be able to see the clear trade-offs between land use and environmental protection.

The Acts we’re repealing today do not provide that clarity. That’s why they don’t help New Zealand get ahead. We need to allow New Zealanders to enjoy and use their property with a minimum of red tape and a minimum number of people who have the right to object to how you use it, including minimising the risk that activists might turn up to try to get some kind of stake in the ground on your consent application that has implications for all New Zealanders.

We need bills. We need replacement legislation that makes it easier to build and grow. The Natural and Built Environment and the Spatial Planning Acts were not going to do that. That’s why they’re going to be repealed today. The former Labour Minister Rachel Brooking mentioned te Oranga o te Taiao. Did anyone in the House hear that member try to explain what te Oranga o te Taiao meant? Well, even a former practising resource management lawyer couldn’t explain it, and that’s exactly what her colleagues told me and others at various resource management law events I’ve attended in the past 12 months. They didn’t understand what it meant. It was going to take 10 years to define it through the courts. That entire time was going to be a period of great uncertainty for New Zealand businesses and primary producers seeking to invest.

Businesses, farmers, and public infrastructure builders need clarity on time lines and consent conditions in order to go ahead with investments. There is nothing in the legislation that Labour passed, that we’re going to repeal today, that was going to provide that clarity. When it comes to fresh water, this bill will pause—in fact, sorry, delay—the implementation of the national policy statement for fresh water, because it’s proving impossible to implement and provide fair outcomes for those who need water or discharge to water. It’s completely unworkable. Last week, a decision was handed back by a court to some applicants who opposed the granting of an exemption for vegetable growers in the Horowhenua and Pukekohe areas, where 80 percent of the vegetables in New Zealand supermarkets come from, and a number of groups had appealed against the exemption that vegetable growers in those areas had from the rules in the National Policy Statement for Freshwater Management, because they said they should apply equally. Well, if the Horizons Regional Council is required to reduce on emissions or discharges by 100 percent, that means, potentially, all of the vegetables in those regions won’t be able to be grown. That’s 80 percent of the vegetables in New Zealand supermarkets. It’s totally impractical freshwater rules like that that will have to go and that this bill puts a pause on.

Now, restoring the Resource Management Act is only temporary. At least New Zealand businesses, growers, and farmers understand it, even though it’s not perfect. But what this Government is doing is retaining and enhancing the fast-track provisions that will allow all kinds of infrastructure to be stood up, consented, much more quickly. And I do commend the Minister, the Hon Chris Bishop, for the work he’s done to bring this bill to the House so quickly. We will pass it in the next 24 hours, and New Zealanders will be able to get on with building their businesses, growing their farms, and actually planning for their future.

TANYA UNKOVICH (NZ First): Thank you. I rise on behalf of New Zealand First, who are not confused, to take the call on the second reading of this bill, and we are in support and commend it to the House.

INGRID LEARY (Labour—Taieri): Thank you, Mr Speaker. Look, it’s just really crazy to hear the arguments from the Government about wanting to repeal something that has had so much consideration, so much work—not just in the six years as alluded to by the Green member but for many years, by real experts in this field—to leave us with a big fat nothing. It would be one thing if they had a plan, but to have a big fat nothing is going back to the future. That is exactly what’s happening, and it’s crazy, because what we are going back to, this big fat nothing, in the meantime leaves this very discredited 30-year-old piece of legislation that absolutely nobody is convinced can do the job.

If we think about 30 years, that’s a long time. That’s 1991 that this legislation came in. That was when the Soviet Union was dissolved and we had Russia come back in, when we had Yugoslavia still in existence. We had the Teenage Mutant Ninja Turtles as being one of the best Christmas presents in that time. The apartheid laws: there was an announcement that apartheid laws in South Africa would be repealed.

This is how old the piece of legislation is that we are going back to while the Government sits there and tries to dream up a plan as a stop-gap measure to fill that hole. And I can tell you what kind of impacts it has had. In the Auckland Council, it is written in one of their planning documents that they have been using the consenting process under the Resource Management Act (RMA) as a money-making activity for the council. Now, that’s absolutely abhorrent to anybody who hears that, but it is written in their documentation, and I have seen it when we have been discussing this and the need for reform.

In my own electorate of Taieri, with the Brighton landfill, which very sadly has been granted consent, that whole process was so distorted in my view and so beholden to this 30-year-old legislation that meant that there were submissions that were 30 years old, that talked about the impacts of the landfill, and that were accepted because they were from neighbours and there was no other process by which to gather that evidence. There were huge questions over whether this should have been a notifiable event or not. Under that very old legislation, it wasn’t.

But not only does it leave a big fat hole, the problem—as the previous Minister, my good friend and colleague, the Hon Rachel Brooking, has referred to—is that the legislation is being rammed through with no due consideration. And if we look at what happened with the Act that is being repealed, that was the result of—

Hon Member: Two bills.

INGRID LEARY: Two bills, thank you. That was a result of not only the six years of work that went in by a really, really hard-working committee, but also there were people like Rachel Brooking who sat on there who had previously been on the panel that did years of work on the Randerson report leading up to the six years of work in this House. There was a huge amount of work done by the Hon Eugenie Sage in her role as chair of the committee.

Hon Rachel Brooking: A very fair chair.

INGRID LEARY: A very fair chair, as Rachel Brooking says, and also hours and hours of listening to evidence. Now, that is due process. What we are seeing here today in this House is just a complete—you know, it’s doing the middle finger to the due process that this House really should be doing when considering legislation that is impacting all of us.

The other thing is the terrible impact that it is having going forward. Already in my electorate in Taieri, Rachel Brooking and I have been quoted in the Otago Daily Times asking the council to please reconsider that it’s putting the kibosh on the planning documents and the planning that it has been doing for the freshwater plans around the region. It’s such a shame, because it has taken a long time to get to the point where there are freshwater plans. There’s been a lot of politics there. There has been a lot of water that is being used pursuant to historic mining permits that now farmers are using, and the consequence is the terrible degradation of the Manuherikia catchment. Suddenly, because this Government is saying it’s going to repeal the legislation, that council has chosen to put the pause on, which means that, once again, we won’t have a requirement for that river to be swimmable; it will go back to being wadable. There’s a massive difference. The degradation will continue. Farmers will be able to continue taking as much water from the catchment as they like, and all the reasons for this legislation that was put in originally to be able to find a better balance around our waterways and around our natural resources has simply been forgotten.

So it’s a really sad day to see so much hard work done and so much consideration—I apologise on behalf of myself and this House to all those people who submitted and put so much thought and care and time and money into making submissions on the previous legislation. It’s a terrible day. It’s being rammed through, and we do not support this.

SPEAKER: Could I just say that the member resuming her seat has got about 4½ minutes available after the dinner break, if she wishes. Thank you very much for concluding.

Debate interrupted.

Maiden Statements

Maiden Statements

GREG FLEMING (National—Maungakiekie):

Ka hari te tangata kāhore nei,

e haere i te whakaaro o te tangata kino, ā,

kāhore e tū i te ara o te hunga hara,

kāhore anō e noho i te nohoanga o te hunga whakahī.

Engari ko te Ture a Ihowā tāna e whakaahuareka ai;

Kei tōna ture ōna whakaaro i te ao, i te pō.

He rite hoki ia ki te rākau i whakatōkia ki te awa wai,

e whai hua nei i te pō e hua ai;

e kore tōna rau e memenge; ā,

ka pono āna mea katoa e me ai ia.

Koinā tōku tino wawata.

[Blessed is the one

who does not walk in step with the wicked

or stand in the way that sinners take

or sit in the company of mockers,

but whose delight is in the law of the Lord,

and who meditates on his law day and night.

That person is like a tree planted by streams of water,

which yields its fruit in season

and whose leaf does not wither—

whatever they do prospers.

That is my greatest dream.]

Ten years ago this January, a seed took root in my heart which has carried me here today. When on that summer’s morning Dr Alistair Reese began his talk titled “The Story of New Zealand”, he—a Pākehā—in beautiful te reo Māori, acknowledged every waka in the room. I’ll never forget the wairua. Waves of peace, of grace, and of unity rolled gently from one side of the hall to the other, and then he told a story of hope. I wept for most of the next three hours.

The seed planted that day grew into a tree that now deeply shapes why I am here. I want to speak to that more, but first, let me tell you a little of my own story. I had the most wonderful childhood—thank you for being here today, Mum and Dad. Raised on a small farm in the Wairarapa, my experience is one of unconditional love and endless opportunity.

At the age of nine, my dad gave me six laying hens and my first sack of wheat. I opened a bank account, back in those days when it was easier to open a bank account than to complete a PhD. By the time I was 13, I had 50 hens and a custom-designed shed, and I was selling several hundred eggs a week around the town. I sold all the cracked ones to my mum at full price; I may have even charged her delivery to the kitchen. As the Good Book says “Raise a child in the way that they should go”—and they might become an ACT MP. Toitū te capitalism!

At age 15, I changed to a different kind of egg and began importing used golf balls from the United States. Mr Nolan, my accounting teacher at Wairarapa College, told me I’d learn more from running my business than I would from his classes, so I used that time to negotiate an import licence with the Department of Internal Affairs. The week before I was to send them a cheque for $25,000, Roger Douglas deregulated the import industry, the golf ball price halved overnight, and I escaped with a free but invaluable education. I switched most of my capital then into Brierley shares, October 1987 soon arrived, and I received a further education—that one wasn’t free.

I knew by then that I would pursue business—not share trading—and I loved creating things and saw opportunities at every corner. So at Victoria University, I pursued accountancy. I also pursued Kirstin Harrison, and after four years, she finally agreed to marry me. We celebrate 30 years this January; in fact, I worked out that while we were getting married, our new Prime Minister was on honeymoon.

We headed to London, where I worked in finance and marketing, and by the time we returned home pregnant, I had a whole range of business ideas ready to pursue. However, just a few weeks in, I took a call from a new charity supporting parents. They needed a business manager, and I told them I’d look out for one. You see, my role was to make the money and give it to charities, or so I thought. However, after three sleepless nights, I drove to Auckland; met the board, chaired by Sir John Graham; and a few weeks later, we set up home in Onehunga. I was to give one year to the charity before returning to my business path, but those 12 months derailed my plans. I experienced the joy of connecting people in need with resources and solutions, and I was hooked.

As the work grew, I found us interacting with local government and central government, and my interest in politics was piqued. In 2001, I thought about running for Parliament, but Sir John and others encouraged me to instead take time to work out what I believed and why I believed it. A group of us started a think tank, and so began the next stage of my formation.

As I wrote this part of this speech, I reflected on who I was back then, and my supreme confidence in my ideas, despite them being untested by the realities of life. I’m so grateful to those friends who steered me. Had I come to this House then, I would have just added to the noise. My mind may have been clear, but my heart was nowhere near ready.

In those early years, I knew what I believed; I just wanted to convince everyone else of my position. But then I encountered people who had different views, and I began to do something very dangerous: I began to listen to them. They invited me into their worlds, and my own began to change. Many of those generous, patient people are here tonight or watching online—I acknowledge and thank you all—and very often, from those changes I found myself creating.

As I mentioned earlier, I had thought my life would be one of creating businesses; instead, it’s been community organisations, and I’ve been involved with many. One of particular impact was in 2010, when I had the privilege of helping start a trust to scale the organic work of a remarkable immigrant couple, Cliffy and Indranee Reddy. The fruit of their efforts with struggling whānau in Manurewa was beyond remarkable, and my 12-year journey with them has deeply shaped my faith in the healing and restoration that is possible in even the most broken contexts. It’s carved in me my responsibility as someone who was given such a healthy relational context to invest my life in helping heal the less fortunate contexts of others.

It’s why I’ve come to this place. I think we all have. In the brief time I’ve been here, I’ve not heard or met anyone who wants anything different. We all yearn for our people, our communities, and our land to thrive; the differences are in how we think those ends are best achieved.

I am a National MP primarily because I’ve observed that Government contributes best to that flourishing when it distributes power to the front line—to iwi, hapū, whānau, community organisations, businesses, local schools, and local providers—for it is on the pae, in the vestry, in the school board meeting, and at kitchen tables that we build a flourishing Aotearoa. Seldom does central government know best, and that belief has—like all my beliefs—been formed and shaped in me through experience. I know firsthand in education, housing, welfare, rehabilitation, and business that it is local solutions in local contexts with local relationships where we foster true human flourishing.

Mana motuhake—it’s not a silver bullet. It has its own complexities and challenges, but it is, I believe, a measurably better approach than that of centralisation.

It’s why I asked Maungakiekie to send me to Parliament—to champion that sector, those platoons of civil society, those thousand points of light that bring life and hope to people’s lives: organisations like Tō Wāhi and the Oranga Community Centre, like the Mount Wellington community network and Connect the Dots, like Elevate Disabilities Trust and the Hearing House in One Tree Hill, like the Ellerslie, Mount Wellington, and Onehunga community patrols, like the Salvation Army Medical Centre in Royal Oak, like the Onehunga and Ellerslie business associations, and like every school and club and family in Maungakiekie. It’s why I’ve come to this place.

But I appreciate that my view of Government is contested. It’s why this House exists as it does—to debate those ideas and beliefs—and I am so grateful to be here and I’m determined to listen well. The first evening here, I returned after the dinner break, ready to write my Christmas cards, but then the speeches began and I never picked up my pen. For 2½ hours, I listened. I listened carefully to Ricardo Menéndez March’s vision of Government—I heard his heart—and I took notes of the points I want to unpack with him over a meal, or several perhaps. When Willow-Jean Prime spoke her full 10 minutes in te reo Māori with no notes at all, I hung off every word, including the many I look forward to debating. I remind myself daily that in every interaction, I am—through my actions, my words and my listening—either humanising someone or dehumanising them. I can enter their world or dismiss their world and discard the person along with it. In choosing to enter their world, I choose the space where tolerance lives. And tolerance is neither weakness nor agreement. It is strength; it is grace. It is recognising the humanity of the other and the importance of them being able to express their view—even though I might deeply disagree with it. And I can always learn. Because sometimes, in the fullness of life, it turns out that it was I who was wrong.

A few months after I heard that “Story of New Zealand”, I began a new leadership role and invited an old friend, Te Waka McLeod, to join me. She was relishing being back home in Taranaki, as there, in both her family and work context, she could at last be fully Māori. “What if we changed this new work environment to be like that?”, I asked. In a moment of reckless vision she agreed to move back north, and together we and others began a journey that has shaped me more than I can describe. It began simply with karakia and mihi and waiata. Then we had a staff retreat at Umupuia Marae. Next, we stayed at Te Tī in Waitangi. We formed a partnership with Te Wānanga o Aotearoa so all our staff could learn te reo during work time.

We were generously invited into a haerenga, a journey, into te ao Māori and its language, and for me that journey has never ended—and it never will. Every day I am shaped by the life and resonance of this taonga tuku iho nō ngā tīpuna [treasure that has been left to us by our predecessors] and when I hear it my spirit quickens. Kōrerotia te reo i ngā wā katoa [speak it all times]. When I hear it in this House, I’m on the edge of my seat. Te mutunga kē mai o te reka! [Incredibly beautiful!] I am only at the beginning of my journey, and I thank fluent speakers for their patience with me—whakatikaia mai. Tēnā, ko tōku tino oati ki a koutou, ko te whai i te reo rangatira, me te tautoko i te pūāwaitanga o te reo me ōna tikanga.

[Correct me. My greatest pledge to you is the pursuit of this noble language, to support the flourishing of the language and its conventions.]

For the past two years I’ve worked with friends to establish a tertiary language immersion school. Te Wānanga Ihorangi welcomes its first 40 students this February, and my son Toby will be one of them. My grandchildren will be bilingual.

This haerenga has shaped my faith. It wasn’t long before I found myself yearning to worship in te reo Māori and so Te Ana Tapu—Holy Sepulchre—soon became my home. I am Mihinare and it is an honour to have here tonight many of my friends from Te Ana Tapu, including my bishop, Te Kitohi Pikaahu. Now each morning I read Te Paipera Tapu [The Holy Bible]. I pray in te reo o te whenua nei. And when I think of and hear Ihu Karaiti: he kōrero Māori ia. He mataora tōna. [Jesus Christ: he speaks Māori. He has a facial moko].

A friend said to me several years ago, “Greg, we will be one when you can walk as easily in my world as I can in yours.” That invitation beckons me every day. That’s why I will never stop learning, and never stop listening.

When I dream of 6 February 2040, I dare to imagine, I dare to hope, I dare to believe that on that day, by the shores of Waitangi, we will not weep tears of lament, but tears of joy. That we will celebrate. That we will walk easily in both worlds. That we will be one.

So I come to this House in trepidation. With my heart thus shaped, how will I operate within a place of battle, where opinions are weapons—six seconds or 100 characters in length, and the stumbles of others are the trophies of each day’s fight. I know this world will change me, for every world does. It’s why I’ve hesitated for so long. Can I remain faithful to the vision and dreams so deeply seeded and shaped within?

That’s why I conclude by acknowledging those who have shaped me most. Kirstin, our five remarkable children—Harry, Annabel, Willis, Tobs, and Jed, my big, wonderful family—in-laws and out-laws, my friends at Oati, Hepara, Maxim, Aspiring Leaders, Te Ana Tapu, Venn, Te Whakaora Tangata, Parenting Place, and Affirming Works—please stay close. Hold me accountable.

To my campaign team, volunteers, supporters, and party colleagues. To all those who have through your generosity and grace made it possible for me to pursue this position of service, I am blessed beyond measure; I am grateful beyond words—e kore e ea i te kupu āku mihi ki a koutou [my gratitude to you all cannot be satisfactorily expressed by words].

Finally, I return to my maker. To the one from whom all blessings flow and from whom no secrets are hidden. You know the desires of my heart, you know my weaknesses, and you know my strengths for you formed them within me. My greatest desire is to serve you faithfully. Ko te wāhi ki ahau, he whai i te pūāwaitanga o ngā tangata katoa, ngā hapori katoa me ngā whānau katoa.

[My role is to pursue the flourishing of all people, all communities, and all families.]

I will, with every breath, mā te whanuitanga o tō aroha noa [by the breadth of your unconditional love], pursue the flourishing of this land and of its peoples.

E te Atua, arahina mai, tiakina mai, arohaina mai. Kia ora.

[O God, lead us, protect us, love us. Kia ora.]

Waiata

SUZE REDMAYNE (National—Rangitīkei): E ngā mana, e ngā reo, e ngā rangatira, tēnā koutou, tēnā koutou, kua huihui mai nei. Tēnā koutou katoa. To all the different people and cultures, to all distinguished persons, to everyone gathered here, I greet you all. Thank you, Mr Speaker, and congratulations. In three short weeks, you’ve demonstrated the institutional knowledge, good grace, fairness, and humour you bring to this esteemed office. Prime Minister Luxon and the Hon Nicola Willis, I am grateful for your relentless focus and leadership and your confidence in appointing me junior whip. To National Party President Sylvia Wood, thank you and your team for an invigorating campaign and your unwavering support. To the people of the mighty Rangitīkei electorate, it is an honour and a privilege to be your MP.

I’ve been to Parliament many times, as a student drawn by the antics of question time’s lively debate and as a Parliamentary Service employee—you’d think I’d know where the car park was. But I must say it is different now. I feel the trust placed in me, the weight of expectation, and a commitment and a determination to serve, to be Rangitīkei’s strongest advocate and a voice for rural and provincial New Zealand, for all of our diverse communities and interests. Rangitīkei represents quintessential heartland; rural and provincial New Zealand at its best. It’s where community is not just a word; it’s who we are, it’s how we are.

It’s great to be here. I couldn’t have done it alone, and I didn’t. I pay tribute to our members, in particular our electorate executive, boldly led by Shelley Dew-Hopkins; to our caucus club; campaign donors; cottage meeting hosts; and our team of volunteers. To my campaign team, especially the newbies who lowered the average age by about 20 years: Louise Mason, Jack Monkton, Patrick Coogan, Finn McDonald, and Isaac Grant—and thank you for being here. The Ohakune crew: Bruce and Steph Rollinson and Nikki Riley. And the matriarchs: Elaine, Sue, Di, Marguerite, Claire, Marion, and my fabulous mother-in-law, Gaylyn. You all are the beating heart of every election campaign, and I’m truly grateful.

I was born and raised in Wellington. I grew up in a close and caring family, with parents who recognised the values of integrity, generosity of spirit, education, and a strong work ethic, where we were reminded that good manners don’t cost a thing. My mum, born Robin Cuddon, and my dad, Michael Dossor, came from Marlborough. By sheer luck, Dad grew up on a farm in Rapaura. His dad, Robert, left York in his early 20s. He planned to be a mounted policeman in Canada. His best friend wanted to go to New Zealand to be a farmer. They flipped a coin, and here I am. Mum was a hostess with the National Airways Corporation—fabulous and elegant still, Mum. Thank you for everything you do and everything you are. I love you. Dad enjoyed a 50-year career with Turners and Growers—the banana man. He was proud of the fact that on his watch, New Zealanders ate more bananas per capita than any other country in the world. A marketer and a great communicator, Dad got on with everyone.

We moved to Samoa for a couple of years. I went to kindy there. My brother Mark was a novelty with his blonde locks. Emma, my sister, was born in Apia. This ingrained in our family a love and affinity for the islands, which is still celebrated. My youngest sister, Rach, arrived when we moved back to Paremata, when the topic of conversation was the merits or not of Transmission Gully, at an eye-watering $2 million—if only. After graduating from Otago University, I worked at ACC. This would prove a defining experience for me, the power of public service to make a material difference in the lives of others.

Mum and Dad inspired us to travel, and I’m grateful they encouraged me to go and see the world in order to better understand my place in it. In 1991, I left Napier on a Lauritzen reefer bound for Antwerp with my friend Kath Grieve—28 days on a ship, we touched land once to refuel before going through the Panama Canal. It was the start of a six-year adventure spanning a myriad of jobs and three continents, on a shoestring with a backpack. I loved it.

I landed back in New Zealand, and before I knew it I was married to my best friend Rich and living at Tunnel Hill, a sheep and beef and forestry and maize farm in Turakina. Three children in 3½ years was brutal but brilliant. Sam, Ruby, and Sophie are now in their early 20s and making their own way in the world.

In 39 years, Rangitīkei has been served by three National MPs. I’ve had the privilege of knowing each of them, and I’ve worked with two. Hon Denis Marshall, former Minister of Conservation, continues to this day to be a conservation pioneer through his New Zealand Nature Fund. Hon Simon Power was a great mentor and astute strategic political mind. Asked when he retired what he thought was the greatest quality required of an MP, he said, “Empathy.”—I agree. Ian McKelvie reinforced my belief that above all, politics is about service. It’s about being part of the communities you represent. I’ll be for ever grateful for his selfless commitment to helping others be the best version of themselves—and I won’t forget what it looks like either. Together, Ian and Sue are a formidable team. May I also claim the Hon Tama Potaka—tangata pekapeka, the Batman, the second Minister of Conservation to come from Rangitīkei. His wings grew strong and his senses were finely tuned during his formative years in Rata.

Working in the electorate office for 20 years has given me unique insight into the social, environmental, and economic fabric of our region. I’ve walked many miles in others’ shoes. I’m genuinely motivated by helping people, and, stripped back, I believe that’s the fundamental role of an electorate MP. I’m well aware the staff in these offices play a critical role. To my outstanding colleagues over the years: Norma Humphries, Peter Bamber, Christine Nagel, and Jane Cameron—and, of course, Bernadette, Leanne, Kay, and Ainslie, who’ve agreed to stick with me. I’m grateful for your determination to find solutions and make a difference for the people who seek help.

The mighty Rangitīkei electorate covers the area of 12,500 square kilometres, from Taumarunui in the north, to Shannon in the south. The Whangaehu River forms our western boundary to include Rātana and my home town of Turakina. We skirt the edge of Palmerston North, to take in Massey University and the IPU technical institute, Summerhill, and Aokautere. The Rangitīkei River carves its way from the headwaters of the Kaimanawa Ranges south to the Tasman Sea, and gives us our name. It translates: the day to take great strides. Well, here we are.

Feilding is our biggest town, with a population of almost 18,000, followed by Marton, Taumarunui, Ashhurst, Taihape, Ohakune, National Park, Sanson, Hunterville, and Santoft. We have five great mayors serving across our communities. We have no traffic lights, but we love a good roundabout!

Feilding High School has produced nine All Blacks—three players in the team which played in this year’s Rugby World Cup final were old boys. Sport crosses cultures and backgrounds here, and is the glue that binds many of our isolated individuals and communities together.

We are the centre of gravity for the New Zealand Defence Force, with the greatest military presence of any region, including Ōhakea, Waiōuru, and Linton.

We share Mount Ruapehu with my friend the Hon Louise Upston’s Taupō electorate. Our maunga is a key player in the abundance of tourism opportunities that our region has to offer.

We are exceptional food and fibre producers in the Rangitīkei. We grow it all: beef, lamb, dairy products, fruit, vegetables, and wool—for New Zealanders and the world. We have a rich diversity of cultures. Many who first arrived as seasonal workers across these industries now proudly call Rangitīkei home; their contributions enrich our communities.

Rich and I launched our paddock to plate business, Coastal Lamb, in 2010, with Rangitīkei at its heart. We did it with the support of many local and national businesses and our farming partners, some of whom are here today—Pat and Catherine O’Neill and Hugh Lilburn, hi. The business was built and has grown because of relationships. We’ve travelled around New Zealand and the world telling the story of our lamb, and hosted our in-market partners and some of the world’s best chefs at Tunnel Hill. We’re all connected and they’re all very much a part of our business and our story.

Innovation flows in many forms in Rangitīkei—87 percent of all the petrol pumps in New Zealand, and 30 percent of those in Australia, are designed and manufactured in Marton. We have entrepreneurs revitalising the wool industry, exploring alternative land-use, and developing alternative fuels.

This city girl found herself in the country, and so it was Rangitīkei that would eventually bring me back to Wellington and to Parliament, with a proud resolve to celebrate who we are and what we have, and equally to be a voice for what needs fixing. Our role is not just lawmakers and regulators; we need to provide vision. It’s our job to inspire; Government can lead change.

Sustainable farming is not an oxymoron; it’s what most farmers—and all good farmers—do. We can’t make a living from the land without kaitiakitanga, without caring for the land and the soil, embracing biodiversity. We need a regulatory framework that’s built from the bottom up. Our catchment groups are doing a great job; let’s use them to drive water reforms. Let’s keep it local. Our farmers need to be empowered. New Zealand’s economic recovery starts in rural New Zealand.

Social investment provides early intervention and unlocks potential, and using the knowledge and experience of local organisations, like Manchester House in Feilding, and Mōkai Pātea in Taihape, will be the key to our success.

We have 78 schools, with rolls ranging from seven to over 1,500. We need an education system that’s aspirational. Education is the path to a job and a key to breaking the cycle of dependency. As a country, we’re failing our most vulnerable. But we’re also failing our kids in the middle and those at the top. They all deserve better. Thank you, Erica Stanford, for leading the way.

Technology has changed the world we live in, but its benefits are not shared equally. Our phone network and internet coverage in Rangitīkei is embarrassing. You’ll soon be able to enjoy uninterrupted broadband service flying on a plane with Air New Zealand, but you can’t drive more than 10 kilometres in Rangitīkei without dropping out of service.

Feilding, a town of 18,000 people no longer has a 24-hour police service, and the boy racers, amongst others, exploit it. Our community, our businesses, and our wellbeing wears it.

I will work hard to ensure that our businesses and farms grow and that our towns and communities and way of life can thrive. I will work hard to ensure no one is left behind and that those who need it get a hand up. I will champion local issues and I’ll help solve local problems.

To my family, you will always come first. Sam, currently working on a farm in Wales and who is eager to one day take the rein of Tunnel Hill, a farmer from day dot. Ruby, my wise and insightful daughter, a lawyer and banker with Rabobank, so proud of her rural roots. Sophie, fiercely competitive and driven, a salesperson since she could talk and who is now territory sales manager for Coca-Cola. I love you all and I’m proud to be your mum.

Rich, your focus, energy, and drive is inspirational. I couldn’t have done this without you. Thanks for luring the townie 200 kilometres up the road and showing her what the best of New Zealand looks like. I love you.

To those who are no longer here—Rich’s dad, Will, and to my dad, who would have so loved this ride; I promise you’re right here, Dad.

It’s clear I’ve seen and been part of the genuine sense of community that comes from living in rural and provincial New Zealand. Rangitīkei’s been my home for 26 years. It’s my tūrangawaewae. I found a real sense of purpose in rural New Zealand, where it’s about we, not me; our people are modest and humble—in Rangitīkei, show ponies wear a saddle; where the core National Party values of strong families, caring communities, and hard work are part of our daily life. I want Rangitīkei to be seen and heard. I want Rangitīkei to be proud—proud of the strength of our towns and communities, the diversity of talent, the pockets of excellence, the hearts of gold, the rich diversity of our social fabric.

“Start where you are. Use what you have. Do what you can.” Arthur Ashe’s words speak of Rangitīkei, where we roll up our sleeves and get on with the job. That is what I will do: get on with the job of serving the mighty Rangitīkei and all who call our fantastic part of the world home.

Dr HAMISH CAMPBELL (National—Ilam): It is a great honour to stand here, in the Parliament of New Zealand, and speak as a representative of Ilam and my community. May I begin by acknowledging you, Mr Speaker, and the years of service that you have given the Ilam electorate. You ably represented Ilam for over 20 years—nearly a quarter of a century. And I’m sure, Mr Speaker, you will agree with me, in an unbiased way, that Ilam is the best electorate in the country.

SPEAKER: No doubt about that.

Dr HAMISH CAMPBELL: Yeah, good. I will endeavour to serve it well, but I do acknowledge I have a lot of growing to do to get to your stature. Apart from you and I, Mr Speaker—

SPEAKER: That was a very career limiting sort of comment.

Dr HAMISH CAMPBELL: —there’ve been a number of notable people that have come from the Ilam electorate and spent their formative years there, including the former Prime Minister Sir John Key and, of course, the current Prime Minister, the Rt Hon Christopher Luxon. I think there must be something in the waters of the Avon River, that start there and run through the electorate.

Speaking of you, Mr Prime Minister—I’ll be a little bit gentler—I’d like to acknowledge and congratulate you on leading the National party to one of the largest turn-arounds that this country has ever seen. Congratulations. You led ably, and you’ll continue to lead our country to prosperity.

I’d like to acknowledge those that have assisted you, Mr Prime Minister, just in front of me, here: Nicola Willis, Chris Bishop, and the rest of the front bench, and of course, our president Sylvia Wood.

To the people of Ilam, thank you. Thank you for your trust and belief in me. I am here to deliver for you and to represent you to the best of my ability. I want to be an MP that’s consistently present in the electorate and part of the community—I was, during the campaign, and have been and will be, since the election.

I’d especially like to thank the National Party members of the Ilam electorate that first selected me as a candidate, and then helped me through the campaign. A true, heartfelt thank you to Ryan, Robyn, Murray, Chantel, Vivian, Ethan, Bryant, and Peter—just to name a few. But I’d also like to thank their partners for allowing them to spend so much time with me during the campaign.

To my current class of 2023, your maiden speeches have been outstanding. Couldn’t at least one of you screw-up to make me look a little better?

But, above all, I’d like to thank my family and friends for the support they have given me throughout my life. In particular, for the last 19.9 years, my wife, Carol, who’s sitting in the gallery. You have stood by me as I not only chose to enter into politics but also previously, when I made the choice to work as a scientist—not for industry but for charities and not-for-profit organisations. You shared my vision of making a difference in people’s lives. I’ve been very blessed to have such a supportive wife. You are my rock. You are my guide. You are an amazing person. Thank you for your sacrifices.

To my two young daughters up there, I love you dearly. I apologise in advance; I apologise for being away from home and missing dates and events that are important to you. I apologise for the hostilities you may face in the playground because of me. I apologise for the attacks that will come on social media—and possibly from the media. But may you look back in later years and know I was away from home in an effort to make the world a better and fairer place—not just for you but for all Kiwi kids. And as the American writer Ralph Waldo Emerson wrote, “to know even one life breathed easier because you lived, this is to have succeeded.” I hope you look back and know that I succeeded.

To my parents, who never sought the limelight, I think you probably cringed when I entered politics, but I’m very grateful for your support and understanding of my motivations.

To my mother, the sands of time are now taking their toll, but happy 82nd birthday for today. Happy birthday, mum. You grew up in a very conservative part of rural Canterbury but had the drive and ambition to overcome the prevailing social pressures and norms of the time, and to go to university. It was a time when it was not common to go to university—far less so for a female. You not only did that but you entered the male-dominated field of chemistry. From where I’m sitting today, I will never truly understand the battle you faced to get there and to be accepted and to achieve what you did. You did it not to seek attention, not to upturn everything, but to improve what was there. You did it because it was the right thing to do. You became a science and maths teacher. You loved teaching. You took your education, and you shared it. You knew education opened up the minds and was the key to an interesting and independent life, and a way to improve one’s lot.

I think of my father losing his father when he was just a young boy, in what was, essentially, an industrial accident, leaving six children—from 15 down to four years old—fatherless. It’s events like this that highlight the importance of a societal safety net. My grandmother raised six children, one with a severe chronic illness, in a two-bedroom State house. Despite those challenges, she did have the foresight to ensure that all of her children took a trade. University wasn’t even a faint possibility. I doubt, at that time, anybody living in that State house would imagine one of their immediate descendants would be ending up sitting in Parliament.

My father left school as soon as he legally could, at the age of 15, to support the rest of his family. He later, working full-time, went to night school to try and educate himself. He ended up with his own business that he grew and later sold to a large international company. Retiring freed him up to follow his interests as a pragmatic environmentalist by converting a derelict apple orchard into one of the first, early, certified-organic export orchards, and proving that an apple a day keeps the doctor away. Despite being in his 80s, he works every day.

To my two brothers who have travelled thousands of kilometres to be here today, thank you for your support. You have taught me a lot over the years. I credit you for teaching me to eat very fast. With two older brothers you learn to eat quickly or go hungry, but that has proven a very useful skill, here in Parliament.

My life story is a simple one. I don’t come from a family of famous, wealthy people. My whakapapa doesn’t trace back to anyone notable. But it does track back to a group of humble people that have just gone about their day-to-day lives below the radar. They’ve worked hard to provide for their families. But I don’t look back with rose-tinted glasses. They weren’t perfect, and neither am I. But, then again, I don’t think anybody is.

My family have worked and worried, loved and lost loved ones, they’ve had their ups and downs, but I think it’s dodgy to take credit for notable ancestors, because that would mean I’d need to take responsibility for those not so good.

I was born and raised in the Ilam electorate. And those who are asking the most important Christchurch question—

Hon Members: Ha, ha!

Dr HAMISH CAMPBELL: —I attended Avonhead Primary School, and then on to Christchurch Boys’ High School—I think there’s a few people from Christchurch here.

Following a fine education received from many great teachers, I then moved down to Dunedin, where I completed a PhD in cancer and viruses. I wrote about coronaviruses long before they were commonplace in the public lexicon. I say that not to blow my own trumpet but to highlight the knowledge that we have in our research organisations, up and down this country. It’s often knowledge that we pull upon in times of dark distress.

Following my PhD, I had the privilege of working at the Children’s Medical Research Institute in Sydney, where I worked as a fundamental scientist, trying to understand the molecular drivers of cancer—or, in other words, how cancers form. This led me to immunology in autoimmune disease. I eventually became the deputy head of research for an organisation focused on multiple sclerosis. Multiple sclerosis and other immunological conditions are on the rise in our society. In these roles, I met people and families going through tough times facing diseases that they never thought they would need to face. To them, I would say: I have brought your memories and your stories to this place. You are one of the main reasons why I am here.

Two weeks ago, I had the privilege to attend the NZ science awards, celebrating some of New Zealand’s finest scientists working on things such as microplastics, environmental resilience, and seismic science. We have some amazing scientists here in New Zealand. I just do want to acknowledge the overall winner on that night: Dr Stephen Goldson, whose work on combatting agricultural pests saves New Zealand between $300 million and $500 million annually. His work makes this country more productive. I mention productivity because it’s so important. Producing more but using less: this makes environmental and economic sense; it is climate action in action. We need more scientists like Dr Goldson and the platoon of white lab coats that are silently driving our country forward.

The reason why science is so important is that our young people—along with the rest of us—are passionate about saving the planet, improving the environment, and finding cures for life-threatening diseases. All these problems can be solved by science. We need to encourage more school children and university students to become engineers and scientists to make sure we have the breakthroughs that we so desperately want. But to do that, we need to ensure that we educate them properly. They need to understand the fundamentals of reading, writing, and arithmetic before they can reach their dreams and aspirations.

It’s also about instilling resilience. As the famous Roman Stoics wrote—or a translation of what they wrote—“the obstacle is the way.” We need to teach our children to see opportunities and to focus on overcoming. Edison took thousands of attempts to develop a lightbulb; James Dyson over 5,000 prototypes to get to his famous vacuum cleaner. As James Dyson says, “We should be encouraging the young to become doers rather than virtue signallers, to help them strive to solve the problems of our age while looking forward to a better future.”

It would be a pity to educate our children only to be able to virtue signal and not be able to do anything about it. That would create anxiety. We need action, not activism. It has become very easy take offence at someone who may believe something different to ourselves, whether it be on climate change, vaccine science, race, or culture. We have come to think it’s our right to take offence, and if you disagree, you’re not just wrong but amoral.

We should not place a high value on our outrage. We seem to think it gives us the moral high ground, failing to appreciate that our moral outrage belittles us; it belittles our society; it drives division and only creates further outrage. We need to reach out, be neighbours, sharing in our identities as Kiwis, not as fellow members of a race, religion, or creed. Only then will we address some of the most pressing issues facing our country and the divisions which seem to be growing.

I recently read some words of a notable New Zealand anthropologist, Dame Anne Salmond. She said, “There are people in the middle ground who want things to be successful, tranquil, productive, creative. I would say most Kiwis are in that frame, but that’s getting splintered and it feels dangerous.” I think those are very accurate and sombre words. We all live on these clusters of islands in the middle of the South Pacific—we had no choice who we were born, or what we were born. We only have one shot at this life, and we need to ensure everyone can play their cards to the best of their abilities.

Now, I do just want to finally go back to the mighty Ilam electorate. It’s located on the western part of Christchurch, stretching out into the countryside. It’s home to the Christchurch International Airport; the University of Canterbury. Ilam is vibrant, it’s full of university students with a zest for life—I just wish some of those living next door to me would just have a little bit less zest for life in the wee hours of the morning. But it is exciting to see the enthusiasm and the optimism they have for life.

It is an amazing place, full of amazing people. A place where 31 percent of those people that live there were not born in New Zealand but have chosen to make New Zealand their home. They chose New Zealand because it’s an amazing place in which to live. This is because we have a stable secular democracy and where the rule of law is applied to all. And this is something that we should protect and cherish. Are we always going to get it right? No. Are we going to please everyone? No. More personally, am I always going to get it right? No. But at the soul of the matter, I firmly believe that everyone deserves a fair shot at life, and that is why I am here.

Hon CHRIS BISHOP (Leader of the House): Just in view of the fact that there’s only about four minutes to go until the dinner break, I just move that we lift a few minutes early and resume at 7.30 p.m.

SPEAKER: Leave is sought. All those in favour? OK. No objections. The House is suspended until 7.30 p.m.

Sitting suspended from 5.56 p.m. to 7.30 p.m.

Bills

Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill

Second Reading

Debate resumed.

ASSISTANT SPEAKER (Teanau Tuiono): The House is resumed on the second reading of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill. We’re going to start with either a Te Pāti Māori or Green Party split call. Up to you.

DEBBIE NGAREWA-PACKER (Co-Leader—Te Pāti Māori): Kia ora. Tēnā koe e te Pīka. Tēnā tātou e te Whare. Look, again, as I said earlier this evening, it’s a shame that we are here in urgency discussing something so critical—especially critical for us as Māori—after the great relationship that particularly National used to enjoy with Māori. I think about the reflections on the National Iwi Chairs and the relationships you had in helping to design in collaboration with iwi technicians the Ministry for the Environment regulations, the Environmental Protection Authority regulations, the best-practice guidelines for engaging with all companies, and I’m just really struggling to understand that this is the National that we’re dealing with today that has completely ignored its relationships with iwi and with Māori who have fought really hard to get what they could in this space.

I get why you’re picking a fight with Māori. You know, we’ve got ACT that got 1 percent of the Māori vote, we’ve got New Zealand First that got 4 percent of the Māori vote, we’ve got National that got 5 percent of the Māori vote—you’ve barely got 10 percent in total of the Māori vote. So I guess it’s a comfort “rip in and take them on” at the moment, but the reality is for those of us who got six, seven times more than you did for Māori voters and who actually enjoy six of the seven Māori electorate seats, we’re really concerned with what it is you’re doing and the fearmongering that you’ve put in, especially when it comes to discussing kupu like “te Oranga o te Taiao”.

Those are kupu, and if this is what this is about—that you’re worried how that’s going to fare in court—I’m really, really stunned that, given again the history you’ve had and that you’ve enjoyed, which I’m struggling to see if you’re going to continue, you’re sitting here and saying, “Actually, we need to repeal today because we’re worried how that will be interpreted in the courts.” So let me get this straight. You’re worried about “oranga”, you’re worried about “wellbeing of the environment”, you’re worried about “acting with precaution in a precautionary way”, you’re worried about being intergenerationally focused and sustaining what it is that we should be doing. It’s really concerning.

The other part that I do want to pick up in the five minutes that we’ve had to be able to reflect on what it is that you’ve put in this—you have used the system to not only pick a fight with Māori; you have also done things that we see in page 85—it could be 83; don’t quote me—where you have replied by putting in this: you’ve replaced “Te Tiriti” with “Treaty”. You have replaced “Te Tiriti” with “Treaty”. Of all the things that I thought you would pick, that is the last thing that I would have thought that you would sit there and do within this rushed bill that we have before us.

I think the thing that’s really concerning for us in this stage is that, again, if you are attempting to move us to the English version of Te Tiriti on page 83 and, following up, making hapū invisible with the erasure of all mentions of hapū—on page 83, there is absolutely no mention of hapū. It’s like we just didn’t exist. I’m struggling to believe that this is the party—you know, forget all your coalition buddies, but this is the party that prided itself in its relationships, its parallel engagement, and policy development with iwi technicians.

The Treaty settlements appear to be protected, but there’s an expectation that the Treaty settlement legislation needs to be amended to achieve that. So much for full and final! I’m stunned, David, that you’re attached to this. But the thing is—I mean how will you come home? But the reality too is if you are saying that the settlements are now open, that full and final is no longer something that’s going to be respected, and this goes to the principle of full and final, then what is it that the Government is attempting to do?

You know, we get that this is a transitional bill. You’ve got a lot of things you’re doing in 100 days. I don’t know what you expect to try and improve in 100 days, but the real meat, as we understand, will be in the fast-track bill itself. But what you have done particularly—and I want our people to be really clear—with “Te Tiriti” changed to “Treaty of Waitangi”, as we believe that you are doing, in page 83, you are attempting to remove the relationship that you have truly and fully with Māori, and you are now defaulting to the English version of the Treaty. That is shameful. That is not a way that is looking after the best interests of all Māori. But, as I said at the beginning, I get, with those on the right who barely got 10 percent of the Māori votes, you feel comfortable enough doing that. Kia ora rā.

Hon KIERAN McANULTY (Labour): Point of order, Mr Speaker. There seems to be a bit of a misunderstanding. Before the dinner break, it was explained to the Speaker that the call was given to us when it was a Māori Party call. So we made an arrangement with the Māori Party that they could then take our five-minute call on call No. 10 to even it out. The Māori Party—Te Pāti Māori, apologies—was given the call immediately after the dinner break. Our understanding, therefore, is that the Green Party should have the five-minute call in call No. 10. The alternative is that we will, as the Labour Party, miss out on our five-minute call because Ingrid Leary made a call on the assumption that it was a five-minute call leading right up to the maiden speeches. If she wasn’t given the opportunity, and as yourself, Mr Speaker, indicated, it was straight away either a Māori Party or Green call, the Labour Party will miss out on five minutes speaking time in this as a result.

TIM VAN DE MOLEN (National—Waikato): Speaking to the point of order—thank you, Mr Speaker. The issue was that the Labour speaker just before the dinner break had a 10-minute call, and so, as a result of that, that took the entire call No. 6, as it was, on the run sheet at that point, which then meant, after the dinner break recommenced, it should have commenced with National Party call No. 7 being a 10-minute call. Because now we’re seeing the call going instead to the Māori Party and Green Party, and if we don’t then have call Nos 8 and 9, then we would be disadvantaged in terms of the allocation of calls. I can understand what Mr McAnulty said, but it was a 10-minute call, not a five-minute split call, and so that’s the difference, because obviously now we would miss out on the allocation we should be entitled to.

STEVE ABEL (Green): Point of order. My recollection of what the Speaker said was that the 4½ minutes remaining on the Labour Party call could be taken after the dinner break.

Hon KIERAN McANULTY (Labour): Point of order. As I mentioned in the original point of order, the arrangement was made with the Speaker to explain the situation. The issue with the clock is not uncommon. Ingrid Leary sat down after five minutes, because that was the start of the maiden speeches. She had full rights to continue on but sat down on the assumption it was five minutes. That’s because of the maiden speeches. That’s how we carried on. This is easily resolved. If the Green Party took their five-minute call in call No. 10, we wouldn’t; the National Party don’t lose out, we have our full allocation, and it ends up as exactly the same speaking spots as originally intended.

Tim van de Molen: Speaking further to that, Mr Speaker—

ASSISTANT SPEAKER (Teanau Tuiono): Hold on a second. I’m just going to take some advice. So I’ve taken some advice, and according to the Standing Orders, parties have the ability to negotiate work between themselves about how the twelve 10-minute calls can be made. I take the Hon Kieran McAnulty’s word for it that that was an arrangement that was made with the Speaker. So I guess we can add a five-minute call somewhere in there. I guess that is what we will do.

Hon KIERAN McANULTY (Labour): Point of order. I believe all that needs to happen, Mr Speaker, is for the Green Party to take one of the two split calls on call No. 10. That will then even it all out. The Labour Party took five minutes, which was intended for call No. 10. The earlier split call was between Te Pāti Māori and the Green Party. If we just do a swap with the Greens instead of Te Pāti Māori as originally intended, it’ll all come out even.

ASSISTANT SPEAKER (Teanau Tuiono): So your solution is you take the split call now?

Hon KIERAN McANULTY (Labour): We’re done. We did ours before the dinner break. Outstanding, at the moment, is the Green Party. If they take our slot on call No. 10, it’ll all come out even.

ASSISTANT SPEAKER (Teanau Tuiono): I think the ruling here is that the Green Party split call will be at slot No. 10, so get ready to jump up. I think that’s the best way to move forward.

TIM VAN DE MOLEN (National—Waikato): Speaking to that, the issue is, though, that it’s recorded now as being on speech No. 7, not on the second half of speech No. 6. And that was quite clearly because, just prior to the dinner break, the Speaker in the Chair made it very clear that Miss Leary had 4½ minutes remaining on her call, which she could take once we resumed, if she chose to. So it was very clear in the Speaker’s mind that it was not a split call, that it was a full 10-minute allocation, and that she had used more than half of that.

ASSISTANT SPEAKER (Teanau Tuiono): But, in order to move the business of the House forward—I mean, I wasn’t there when they had that discussion, which I hope you will appreciate. And the best way forward, with my understanding of the Speakers’ rulings, is that parties are able to negotiate how they split that those twelve 10-minute calls. I take the Hon Kieran McAnulty’s word on it. This is the best way to move forward. The Green Party will take the split call at slot No. 10. I call the next speaker—David MacLeod.

DAVID MacLEOD (National—New Plymouth): Thank you, Mr Speaker. May I first start by telling the member from Te Pāti Māori that I’m very happy to be on this side of the House—certainly just after that—and that’s because we need to unleash the potential of our country. The recent changes made affect our ability to subdivide land, to build houses, to establish businesses, or just simply dig a hole in the ground. We have become a country constipated by bureaucracy. That’s right. It’s affecting people’s lives, people who are simply wanting to get ahead. I repeat: we need to unleash the true potential of our country. I commend this bill to the House.

Hon KIERAN McANULTY (Labour): Thank you very much, Mr Speaker. The situation we’re in now is that we’re in, obviously, the second reading of this bill and that would have been normally, in normal times, the time where we speak to the select committee process and what people had to say. What we do know from the original select committee process from the Act that this bill intends to repeal, or the Acts, is that there was a broad recognition that the Resource Management Act (RMA) was no longer fit for purpose, and there was a discussion, not so much as to whether there needed to be reform, but the details of that reform.

That is what puzzles me about this. It goes back to a system that was broadly recognised as being unsuitable. It goes back to a system where local government, industry—in particular, construction—was saying that it did not enable them to do what the Government is using as a rationale for repealing it. They said that they couldn’t get on with their business. They said that they couldn’t do what they needed to do, that it was cumbersome, that it got in the way.

When you consider there are 71 district councils across the country and, under the RMA, each had a slightly different interpretation of how the rules could be applied, it is possible, and it was common, that tradespeople would have to go about things one way in one district and about things in a different way 10 minutes down the road, and that just didn’t make sense. But nor does what’s being proposed here today.

Why on earth would we go back to a system that, if we think back to the 2017 election, both major parties, the Labour Party and the National Party, said that the RMA was no longer fit for purpose and wanted to do something about it? I think I remember a few pledges of a bipartisan approach to this. But what this bill proposes is to go back to exactly that: a system that was designed in 1991 and has been added to and become a massive beast and was cumbersome and didn’t take into account the realities of a modern world. Why on earth would we go back to that without something to replace it with? I don’t quite get that.

If there are elements to the Natural and Built Environment Act and the Spatial Planning Act, why on earth don’t we take the time to look at that and improve it? It seems to be counter to the whole point of a select committee process, this parliamentary process where regardless of what individual MPs or their party’s views on a particular proposal are, they use a select committee process to improve a bill. And the good parliamentarians amongst us, even if they know ultimately their party will vote against the bill when it gets reported back to the House, will use that time to try and improve it.

I’m puzzled as to why that principle that so many members in this House, including on the other side, on the Government side, in my time here, have worked constructively to try and improve something—I struggle to understand the rationale here. I know that members, or some members—not many of them are taking a full call today, which in itself is interesting and I’m sure we’ll explore more at the committee of the whole House stage. But ultimately, why wouldn’t we just touch on the things that they feel didn’t work?

Because I actually don’t think that they believe that the whole thing has to go. Sayings about babies and bathwaters come to mind.

Hon Member: We’re open to taking aspects of the laws.

Hon KIERAN McANULTY: Why wouldn’t we improve it? And the call is from the other side “We’re open to that.” Why aren’t we doing it now? I want to know why they didn’t take up the Hon Rachel Brooking’s offer to approach this in a bipartisan way and try and improve things, as opposed to throwing it out on a promise that they will then start working on something else. I actually can’t think of an example where something’s been repealed in the context of an acknowledgment that something has to be done to go back to a system that wasn’t working on a promise that one day they’ll get round to doing something about that. Why don’t we do that first?

That’s the essence of my point: why on earth aren’t we doing that first? Why are we rushing through under urgency something that’s going to take us back to what it was? The speakers that have contributed to this have said that they want business to just be able to get on with things, that they want to provide certainty. I can’t understand how going back to a system that they know wasn’t working is providing certainty. If anything, it is uncertain what’s going to ultimately replace what this bill is replacing the Act with. We’ve got two or three steps ahead of us here. Nobody knows what on earth is coming, and that is not certainty.

What I did here, in my travels around the country speaking to district councils, was that, yep, some of them had some concerns about what was being proposed, but they also absolutely acknowledged that the Resource Management Act was no longer fit for purpose. The whole idea of having a region-wide approach is that once things had been agreed, there was certainty for business, certainty for ordinary Kiwis that might be wanting to build a home or might be wanting to put up a shed or any of the normal things that require a consent. They can go in the streamlined approach: here’s the parameters that are agreed; if you fit within those, get on with it. That makes sense—that makes sense.

I think it was fair for local government to register a concern about what they deemed to be a dilution of their local input. That had to be balanced up, of course, with the similar calls from the local government sector to say that simply many of them didn’t have the resources to be able to comply with what was required under the Resource Management Act. That problem’s not going to go away. There are many small rural and provincial councils who have a very small ratepayer base, who are now about to face massive escalations and costs because the Government has indicated they want to repeal the affordable water reforms without any indication as to what it’s going to be replaced with or indeed how it’s going to work. And incidentally, while I’m on that point, I noticed the Hon Simeon Brown can’t guarantee that balance sheet separation is going to be a part of it. He said it might be included or may be included or something—the crucial element.

So we’ve got a situation where local councils were previously struggling under the RMA, because of the cost burdens and their inability with their ratepayer base to pay for and allocate the resources that are required to do consenting. And now the additional costs that are about to come down because of the water reforms. That concerns me. Councils have been asked over successive Governments over many generations to increase the level of service to their communities, but they haven’t had the ability to be able to expand their revenue streams and revenue bases, and this is just another example. No one’s saying it was perfect—perhaps Rachel Brooking. Other than her, no one was saying—

Hon Rachel Brooking: Not even me.

Hon KIERAN McANULTY: That’s tongue in cheek, because, as you may have realised, as the House may have seen, the Hon Rachel Brooking is incredibly passionate about this, and I want to commend the amount of work you put into there. Because this is the member’s area of expertise and she dove right into it. She took on board the concerns that had been registered with us, with the local councils, with farmers, with various stakeholders, and made a genuine attempt to try and improve it.

In fact, I think it’s fair to say that many of the concerns that have been raised today by the Government, raised in justification of doing this—I’m yet to hear a justification about urgency, but certainly justification repealing it—had been addressed by the member when she was Minister. So I do want to acknowledge that.

It’s a fair question. We want to know what this will be replaced with and I don’t think it’s good enough for the House or for the general public to have a response that is simply, “We’ll get to it, but we’ve got to get rid of this now.” I don’t think that washes, and it would have been incredibly interesting to have heard the feedback from the public. The reason I mentioned water reforms before—and I’ll mention it again now—is because it’s actually quite similar. Originally, there was a large amount of concern about the water reforms. Some changes were made, and then there was actually quite a lot of support, particularly from the local government sector. In fact, I had mayors, that were previously opposed getting in touch with me, asking to go first because the changes had improved it. I believe that’s exactly the same with the changes that the Hon Rachel Brooking had made to this.

So it would’ve been incredibly interesting to hear the feedback at the select committee process to actually gauge if that view had changed. I think that there is a genuine possibility, a real possibility, that some submitters that submitted originally expressing concerns, now that they’ve seen the changes, would come back and say, “Actually, this is much better now”, or, the more relevant question is: OK, you might not have liked what the previous Government proposed, but how do you feel about going back to the thing you didn’t like in the first place? That’s a fair question, and that is a question that could have been teased out at select committee. This bill would have been improved as a result of that, but we haven’t had that opportunity.

The only opportunity that we have now is in the committee of the whole House stage, and we may as well register our interest early. This side of the House have a lot of questions.

MIKE BUTTERICK (National—Wairarapa): Thank you, Mr Speaker. I speak, again, in support of the repeal of this Act, an Act that would be the biggest impediment to getting anything done in this country. This Act would not be a step forward for economic development nor the environment, and it would do very little to get New Zealand back on track.

In addition, this Act demonstrates contempt for basic property rights, and the change from a facts-based regime to an outcomes-based approach further weakens respect for private property. The existing Act does nothing to support New Zealand’s productivity, and it also does very little to support the rapid development of urgently needed housing. I look forward to the repeal of this Act.

ASSISTANT SPEAKER (Teanau Tuiono): I call Steve Abel. Just before you start, because of the misbalance of the call, there is four minutes, 30 seconds on the clock.

STEVE ABEL (Green): Kia ora, thank you, Mr Speaker, and I acknowledge your ascension to that noble seat, if we can call it that.

I submitted on this bill myself. I gave three whole submissions on it, numerous written submissions as a part of Mana Rākau, the tree protection organisation. What strikes me is the number of conscientious New Zealanders who participated in the legislative process—which was extensive—and gave their feedback on our pre-eminent environmental protection legislation, and all of the nuanced efforts that were made by people within this House to get this legislation right, to take us on an important step that improves from where we were in the Resource Management Act 1991, to where we are now in the Natural and Built Environment Act 2023. All those months and years, and thousands of submitters and participants, and this Government throws it out in one day. For me, it makes a mockery of the legislative process. My friends in Mana Rākau, who won back general tree protection that was put out by the John Key Government in 2009—they feel like they are back to the drawing board again. Because general tree protection, again, is being thrown out with this legislation, this repeal.

In the struggle to protect our biodiversity and our climate, it is a rare day that we see a lucid piece of legislative framework that actually places the priorities right, and one of those is Te Mana o te Wai, the coming into force of which this legislation is delaying. Now, that means years more—I think until 2027—delay in taking action in protecting our precious water.

It was extraordinary today to hear the answer from the environment Minister that she did not support the National Policy Statement for Freshwater Management in 2020. Let’s be clear what that is: putting first the health and wellbeing of water bodies and freshwater ecosystems.

James Meager: Over everything else.

STEVE ABEL: That is—over everything else. My friend, when you realise that everything we’ve been doing for the last 20, 30, 50, 100 years has led to the biodiversity crisis we face now, we need a sea change in the way that we approach the protection of the environment. That’s exactly putting protection of water bodies first. I would also say that that same Minister said that she did not support putting the health and needs of people—such as drinking water—she did not agree with looking after that, as well.

The most important thing is that we take a step towards treating the intrinsic value of nature, recognise the intrinsic value of nature. This legislation took us on this step. This repeal takes us back the other way.

I should say, Mr Speaker, that it is absolutely consistent with how this Government has indicated it wants to proceed in its time. It is a Government for destruction of the environment. It is a Government that has already laid out that its legacy will be a degradation and a destruction of the environment. It loves the fast-track component of the legislation because that allows it to fast track mining on conservation land. It allows it to fast track the drilling of our oceans. It allows it to fast track the bulldozing of roads through wetlands and through ancient rainforests. In a time when we know the scale of the challenge the planet faces with climate change and biodiversity loss, it is a shame on the history of this House that we have a Government that is so retrograde and so hell-bent on destruction of our environment. We oppose this repeal.

DAN BIDOIS (National—Northcote): E te Māngai e te Whare. Mr Speaker, let me start by congratulating you on your ascension to your promoted role. It is my privilege to speak in support of this repeal bill.

Everybody in this House knows that the Resource Management Act 1991 is in desperate need of reform. Where the divide is—this Act, that we are repealing today, is not the solution to that. It would have made it more complex, more legalistic, harder to actually get things done and get things developed in this country. Let me speak to those directly at home and let me guarantee to those at home that our intentions our very clear. Our intentions are very clear to develop a law that is less bureaucratic, less complex, that improves local decision-making, and helps us meet our decarbonisation goals as a country.

That is what we are committed to on this side of the House and it is my privilege to commend this bill to the House.

Hon PEENI HENARE (Labour): Can I first acknowledge the maiden speeches made earlier today, and of course all of the maiden speeches for the 54th Parliament. I take heart from the members on the Government benches, who, in most of the speeches I’ve heard, use words like “kaitiakitanga”, “wairua”. They are using the very words that their own Government is saying causes too much confusion, yet they stand in this House and say that they base their principled approach to coming into Parliament on words like “kaitiakitanga”.

Here we are looking at kaitiakitanga and te Oranga o te Taiao which I will come to very shortly. We heard from the Minister a little bit earlier talking about the recognition of tikanga in law. I want to read for the Minister a little something from the Supreme Court / Te Kōti Mana Nui o Aotearoa. The Supreme Court has recently affirmed “that tikanga Māori can be a source of enforceable rights and interests, and is relevant to developing the common law. Tikanga is also recognised in various ways through many Acts of Parliament”. And that says that we actually have the ability to look towards a model of tikanga or in this case, with respect to this bill, te Oranga o te Taiao, the wellbeing of our natural surroundings—things that I’ve heard in maiden speeches right across the House, not just in the 54th Parliament; the 53rd, 52nd, 51st—my entire time here. So te Oranga o te Taiao isn’t a new concept. Te Oranga o te Taiao is also a concept that has been evolved over many, many decades, in many, many pieces of legislation as well as many court rulings. The Supreme Court makes it very clear that tikanga Māori is part of the evolution of the relationship of Te Tiriti o Waitangi. That’s what’s being lost here with the proposal in this particular repeal bill; that’s being lost.

I’ve heard members from the other side of the House talk about ruling for all and talking about making sure that they represent their constituents. Well, I look forward to some of them going back to the iwi in their district to make sure that they represent all of the people in their rohe, to make sure that their voices are being heard on this important bill. Sadly, that’s not going to happen because it is being rushed through the House.

We know that this is a big piece of work. We also know that there’s lots of work to be done in terms of the relationships between iwi and the Crown, and this particular bill undermines it. The fact is that we don’t have a regulatory impact statement, that we are unable to engage with organisations and Public Service departments, the likes of Te Arawhiti, to understand what the Māori perspective is on this; to understand the amount of work that they’ve put into this particular bit of legislation that’s being repealed today. Because what’s not quantified in this piece of work is the goodwill from Māori to make sure that we look after our natural environment; that’s not being spoken about here. Yes, we want to look towards the opportunities of being able to make sure that we can build into the future, that we can protect our natural environments into the future, but what we’re not looking at and what we’re not talking about is actually the slap in the face to many iwi who, through goodwill, sat with local government, sat with central government, sat with many Government departments in order to have something that was workable and recognised their rights as well as the rights of the entire community.

I’m looking forward to members—and I’ve heard them call out Mr Rutherford and a good friend of mine Mr Luxton at the back there—heading back to the Bay of Plenty and sitting down with Ngāti Ranginui, Ngāi Te Rangi, Ngāti Pūkenga to talk through exactly what’s happening here. Because what this repeal bill does, too, is it can’t help but make Māori think that, actually, wait, there’s more to come. If I think about the representation across local government in this country—because what this does is it puts a lot of the emphasis back into the local government space, and I’m OK with that, but local government have already made it clear that, you know what, for the most part, they have a very good relationship with their iwi; others don’t. What this tells iwi and what this tells Māori in this country is that who knows what’s around the corner? Is this Government going to repeal Māori wards legislation, once again minimising Māori voice at the local government level? I’m looking forward to hearing contributions from my tuakana and Tāmaki-makau-rau resident Mr Dan Bidois about what this means for the iwi Māori statutory board in Tāmaki-makau-rau.

I’m looking forward to hearing from the Minister: what does this mean for tribes that are yet to settle their dispute with the Crown? What does this mean for the tribes that are currently negotiating with the Crown? How does that impact on their ability to make sure that they get fair rights when resource management in their own district, their own rohe, is considered? These are matters that, sadly, we could not discuss, debate, or hear from experts on because of this rushed process in something that is so significant.

This bill literally takes Māori-Crown relations back to 1991. Back to 1991; that’s what this bill does. For example, it says in here it repeals “to go back to iwi authority”. Well, I’m going to ask Mr Bishop in the committee stage of this House: how many iwi have been created under legislation in this House? How many iwi are now officially recognised since 1991, and how many are yet to be officially recognised through settlements in this House? I bet you that side won’t be able to tell me. I bet you that side will not be able to tell me, and that makes me really sad. It makes me sad because of the goodwill Māori have had to make sure that they can protect the taiao. It’s quite clear. When we make these decisions we’ve got to make sure that tribes like Mr Seymour’s tribe, Ngāti Rēhia—Ngāti Rēhia who has an agreement with the local council in the Far North but doesn’t have one with the regional council because of the refusal of the regional council. Now what we’re doing is limiting their rights. Ngāti Rēhia—Mr Seymour’s own tribe; the descendants of Tāreha.

So I’m looking forward to making sure that the Minister answers those questions so that the rest of the country can hear exactly what’s going on in this piece of legislation. This bill will set Māori- Crown relationships back decades; it will set them back decades. In fact, if Mr Seymour and Mr Bishop want to have a look at the Resource Management Act 1991 (RMA) they’ll see what determines an iwi authority and they’ll know through the settlements that they’ve been part of in the nine years they’ve been in Parliament, which is the same time as mine, that those have actually changed; the definition has actually changed.

The Ngā Hapu o Ngāti Porou legislation is another example of how that relationship has evolved and, yes, while in this repeal bill we might look towards protecting Ngā Hapu o Ngāti Porou, what about all the others? What about all of the other iwi who have come and sat in the gallery of this House and listened to speakers from all across this House talk about how right it is to make sure that we correct the injustices of the past? They’ve sat in this House and listened to speakers talk about why it is important that we work together and maintain strong Crown relationships. That’s what this bill is going to do: it is going to set those relationships back decades.

I also look forward to exploring even more, through the committee stage of the House, the impact that this has on Tāmaki-makau-rau, the consideration of the super-city legislation, and the fact that, as we look through the super-city legislation and what it affords Māori, it pretty much contradicts what’s in here, sending us back to the RMA of 1991. That’s just not good enough. All of that, we’ll have the good opportunity from my colleagues on this side of the House to make sure that the Government answers these questions because the people of Aotearoa New Zealand deserve to hear it—the very people that members on that side of the House claim to represent, all people in Aotearoa New Zealand.

On this side of the House, we are opposed to this. We extended the olive branch to say, “Let’s do this in the bipartisan way.” And I can say that, through the process of the committee of the whole House, amendments will be put on this Table and it will be recorded whether or not this Government supports it. Because this side of the House is quite clear on what needs to happen in order for this country to not only, one, advance its interests economically but, two, protect its environment. That’s the challenge that we’ll be putting to this Government. I do not commend this bill to the House.

KATIE NIMON (National—Napier): I’m pleased to be speaking on the second reading of this bill, because overregulation is not the best way to achieve outcomes. I have examples in my electorate of where these Acts are actually getting in the way of progress of building houses and renewable energy. It is time we stopped playing the game of political “whack-a-mole”, and with that, I commend this bill to the House.

A party vote was called for on the question, That the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill be now read a second time.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

Bill read a second time.

ASSISTANT SPEAKER (Maureen Pugh): I declare the House in committee for consideration of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill.

In Committee

Part 1 Preliminary provisions

CHAIRPERSON (Teanau Tuiono): Members, the House is in committee on the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill. We start with the debate on Part 1.

DAVID SEYMOUR (Leader—ACT): Point of order. Mr Chair, if I may, I’d like to draw your attention to Standing Order 310, which states that the purpose of a committee stage is to determine whether the bill as returned from the second reading expresses the objects and principles of the bill—it’s not actually to have a policy debate, it’s to decide whether the text returned from the second reading will achieve what was agreed to. And I just wonder if you might bear that in mind in concurrence with Standing Order 112 about relevancy, because we could spend a huge amount of time with people trying to prove a point, but it’s not clear what they’ve proved other than used up a lot of Parliament’s valuable time.

Hon JULIE ANNE GENTER (Green—Rongotai): Speaking to the point of order. Mr Chair, obviously this bill is proceeding under urgency; there’s been no select committee stage, and for that reason I would expect there to be more scrutiny during the committee stage of each part of this bill than there would for a bill that was passing not under urgency, that had had a normal select committee.

DAVID SEYMOUR (Leader—ACT): Speaking to that—I can see why the member might wish to say that, but there’s actually no authority and she can’t quote one to support why that is a relevant matter.

Hon KIERAN McANULTY (Labour): Mr Chair, I find it extraordinary that a point of order would be made questioning the content and contributions at this stage before anything had been made. I’m sure you in your capacity are more than able to judge relevancy and whether or not it is compliant with Standing Orders.

CHAIRPERSON (Teanau Tuiono): Thank you to members for all their contributions. I do hear what members opposite are saying in terms of there being no select committee process and the real important need to scrutinise the bill and also hear from Government members, as well as the need for relevancy and for us to focus on part to part. I guess the role of the Chair here is to make sure that we strike that balance, and we can do that by starting to listen to some of the contributions from members, but just being mindful to members that are critiquing the bill—as returned—to really try to focus on the specific parts as well. Thank you. OK, Part 1, debate on clauses 3 and 4—Preliminary provisions—and Schedule 1. The question is that Part 1 start part.

Hon RACHEL BROOKING (Labour—Dunedin): Thank you, Mr Chair. Following on from that little point of order discussion, I do want to note, of course, that we don’t have a regulatory impact statement and we haven’t had the select committee process. I heard the Minister say earlier that everything has been traversed already when we went through the process with the bills that then became Acts that are now being repealed. So I am hopeful that the Minister will take an approach that I think has been different from some of his colleagues and answers a lot of our questions, Mr Bishop, because that will add to the flow, and I am encouraging of that so that of course we are earnest with our relevancy and seek to go through the bill quite carefully.

I say that for a number of reasons: one is I have written to the Minister today stating our position, which is of course it would be best not to be here at all today discussing the repeal of the bills and that if there are particular concerns that the Government has, that it would be better to do some legislation to pause the commencement of the new legislation whilst it was reviewed. So that remains our position, but in that spirit, I will ask some questions, and I would like a response from the Minister about his plan for how he wants to deal with this committee stage, given that the bill has only got two parts and it has got two schedules. There are some very small things that we could raise—so, for instance, there seems to be a drafting stylistic—[Interruption] Look, sorry—there is a lot of interjections in this House, and I’ve experienced this last week as well. We are here in good faith trying to work out what these issues are, and we have a point of order that speeches are not to Mr Seymour’s liking—we are entitled to make these speeches. But my point is, this has not gone through a select committee process. It is always a complicated—

David Seymour: It’s gone through an election.

Hon RACHEL BROOKING: Oh, it’s gone through an election. It has not—that is a terrible, frustrating thing. Electors do not vote on the word-for-word of laws, and that is why we have the very good public process, which I thought Mr Seymour was a fan of, that we could go through and have a proper process through select committees, and even if points are in—

Hon David Seymour: Point of order. Mr Chair, the current member’s contribution is exactly what I was concerned about. She’s spent a huge amount of time talking about me and the process and procedure. She still hasn’t asked a single question about whether the bill as returned from the second reading is fit to serve the principles and objects of the bill.

Hon Grant Robertson: Speaking to the point of order. Mr Seymour may well be aware that the reason the speaker—the Hon Rachel Brooking—began mentioning Mr Seymour was because he interjected, and his interjection was responded to by the member; that is commonplace in the House. In fact, I’ve seen it in the House extend out debates for a considerable period. Mr Seymour might want to reflect on that.

CHAIRPERSON (Teanau Tuiono): Just speaking to this point of order—we have to keep these interjections down so that we can actually hear the contributions from members. I note there’s a lot of amendments here that will form parts of our discussion.

Hon RACHEL BROOKING: Thank you, Mr Chair. So my point that I was trying to make is that there are some small issues—there are drafting issues, for instance, whereby a clause is referred to as a clause rather than a section in the bill, where normally past Parliamentary Counsel Office drafting is to refer to a section rather than a clause, I can give some examples of that. Then there are some substantial matters, so that includes “the fast tracking is to continue.”, and so I think it is important that we drill down into what is being extended, what is being continued in that fast tracking. I’ve heard comments in various different speeches in the second reading that there will be some extension to fast tracking to include mining—so that goes to the definition of what is an eligible activity.

Then, of course, a lot of the schedules to the bill are very boring, and they are simple straightforward replacements of names of Acts. I have no intention of focusing on those, but then there’s also some things where it’s unclear what the change is. We have only just seen this bill today, so I think it would be useful—and I’m interested in the Minister’s response. This is the question: how the Minister intends to respond to this proceeding, this committee stage—it would be good to be able to go through those changes where we don’t have all the bits of legislation in front of us to see what has changed or not.

Then there are some important changes that would be easy to miss—so we have at page 105 of my version of bill that section 80A—the date changes from 2024 to 2027 and that’s in relation to the National Policy Statement on Freshwater Management. So there’s a range of things that we can consider, some I think we should spend some detail in, and I’m interested in how the Minister intended to proceed in the committee stage.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Thank you very much, Mr Chair. To take the member’s somewhat convoluted questions in turn: how do I propose to deal with the committee stage? Well, I propose to deal with the committee stage in the same way that other Ministers deal with committee stages. The House is in committee; members will ask questions; I will attempt to answer them; and we will work our way through the bill.

In relation to what the member says around the simplicity of the bill, she is right. It is actually a relatively simple and straightforward bill. Despite what members may have said in the earlier parts of the debate, what we are doing is, basically, going back to what the status quo was prior to the passage of the Natural and Built Environment Act and the Spatial Planning Act, which only happened three or four months ago. In fact, there are members in the committee right now who were integral to the passage of that. So we all know about what happened three or four months ago. What we are doing is unpicking that, because, at the election, the Government sought a mandate to repeal both Acts, and we are now proceeding to implement that mandate. So the bill is quite a simple bill, basically. It repeals both Acts. It puts in place a range of saving mechanisms where that is necessary and appropriate—most notably in relation to the fast track, which the member mentioned as well. We are saving, for people to use, the fast-track mechanism that the previous Government put in place.

In relation to the member’s final question about the extension of time for fresh water, that’s a very simple change. It’s as advertised: 31 December 2024 was the status quo; if this bill proceeds through the committee of the whole House and third reading, the new deadline for regional councils will be 31 December 2027. So it’s just a three-year extension and the Government’s made its policy intention in relation to that clear, and there will be more to say about that in due course. But this is just part one of our changes to freshwater management.

Hon Dr MEGAN WOODS (Labour—Wigram): Thank you, Mr Chairman. I have some questions that further go into what the Minister has just alluded to in that answer around the transitional arrangements, specifically the fast-track consenting processes in clause 8 that are laid out there. The Minister actually referred to some of this in an earlier reading speech around renewable energy.

I have a very simple question for the Minister. He said in an earlier statement that a wind farm in Wellington—Mākara—took eight years to consent. I’m interested to know what he means by that. Does he mean from time of lodgment of the consent? Does he mean time of appeal in the Environment Court? What is the process he is describing? This is a pertinent question because this goes—

Hon David Seymour: Which part is this in, Mr Chair?

Hon Dr MEGAN WOODS: It’s Part 1, Mr Seymour, as in terms of the transitional provisions and the fast-track consenting process in Schedule 1 of the Act, which pertains to Part 1 of the bill.

The problem definition that National and the Government are using around this is: “One of the reasons we have to repeal this legislation is because there is going to be too much bureaucratic red tape, so what we’re going to do is we’re going to repeal the thing that you put in place to speed up consenting infrastructure projects and go back to the thing that, actually, we’re arguing held things back, but we’ll just keep your fast-track stuff in place.”

So, specifically the wind farm the Minister mentioned in an earlier contribution, I’d just like some detail around that. Thank you.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Thank you to the member for that very good question. The wind farm that we’re talking about is the one at Mākara, it’s Meridian’s West Wind facility. From memory, it’s 143 megawatts and it, from memory, went through resource consent from 2000 to 2007, it opened in 2008—in fact, the Rt Hon John Key opened it, which I think was a source of much chagrin for the prior Labour Government, which was a strong supporter of the wind farm. But that is a reflection of the quite convoluted resource management processes that apply to renewable energy, and that certainly was the case back in 2000 to 2007. I acknowledge that there have been process improvements made to—

Hon Julie Anne Genter: 2000 to 2008, that’s the RMA.

Hon CHRIS BISHOP: Yeah, exactly. And if you listen to what I’m saying, I will acknowledge that there have been process improvements to consenting since then, including by the last National Government. When it comes to renewable energy, we need to go further and faster, which is why this Government’s committed to updating a national policy statement on renewable electricity generation. I acknowledge the work of the prior Labour Government, who had done some initial work on that. We intend to use that and have our own national policy statement on renewable electricity generation.

In relation to why we are keeping fast track, I think that the member has, essentially, answered it for herself, which is that we want to develop our own fast-track consenting regime, but we were faced—as I said in the first reading, I think it was—with a dilemma where if we repeal the Natural and Built Environment Act (NBA) and the Spatial Planning Act without the development and the passage of our own fast-track regime, we will be left in a situation where there wouldn’t be fast track at all. So the simplest thing seemed to be to just save what had been created through the NBA. So with the exception of, as I say, the fast-track consenting regime and a range of other minor technical matters, we are, essentially, repealing all of the NBA but saving the fast track.

SCOTT WILLIS (Green): Thank you, Mr Chair. My question is to the Minister responsible for Resource Management Act reform. I’m concerned that scrapping the Natural and Built Environment Act and the Spatial Planning Act, together with the rest of the Government’s work programme puts us on a fast track towards climate chaos, rather than wellbeing for people and planet. I’m concerned that we’ll see destruction of the environment through oil and gas exploration, along with destruction of laws, such as this action to repeal the Natural and Built Environment Act and the Spatial Planning Act.

The Minister has asserted, I think, that we don’t need improved natural and built environment plans to regulate the way in which the regions’ resources will be managed or how environmental limits and targets will be set locally or how to enable infrastructure and development or how to resolve conflicts between outcomes, because the assertion is that the repeal will allow the fast tracking of renewables and just get on with it.

So cancelling the Natural and Built Environment Act and Spatial Planning Act, whose purposes were to improve the workability and speed of resource consenting and to enable good decision making, is more like a ram raid on our Public Service, because we’ve spent six years of intense work by hundreds of staff; thousands of submissions by iwi, hapū, and numerous stakeholders; and a quarter of a billion dollars—that’s all going down the drain as we take yet another leap backwards towards an out-of-date Resource Management Act. It seems like destruction and a waste.

At the same time, the Government of National, ACT, and New Zealand First is sending a signal to the market that electrification of the economy is off the menu, because we’re going to have dependence on oil and gas and the volatile Middle East renewables continuing into the never-never by ending the Clean Car Discount or cutting off funding for active public transport, getting rid of the Government Investment in Decarbonising Industry Fund, and opening up oil and gas here.

So the promise of the fast-track provision isn’t any help when demand is being killed off. I’m concerned that the Government is offering us more Ford Ranger utes and continuation of a dirty industry, rather than respect for our rivers and our taiao. So many wind farms are already consented and are not being built and there are issues with our consenting regimes. The bigger question is an opaque market structure.

I’ve heard the member suggest that I need to understand the market a bit better, and I agree. I’ve been an adviser to the Electricity Authority and I’ve sat on the Innovation and Participation Advisory Group at the Electricity Authority, and I know I need to know a lot more. But I also ran New Zealand’s first peer-to-peer electricity retail for two years, and like so many attempts to challenge the status quo, we couldn’t break the stranglehold of the big four gen-tailers over the market, which they used to kill off competition.

So I’d like the Minister to address the real problem. It is not the need to fast track renewables. Why change a law we’ve already got, to establish something that already exists?

Will the Minister commit to reform of the electricity market, to get off his high horse, to challenge a sensible regime, and do something useful and open up the market so we can have real, real competition?

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Well, I thank the member for those spirited remarks—somewhat away from the bill, but fair enough, I will attempt to deal with them. Let me take them in reverse order.

On the electrification, the member asserted that the Government was opposed to, or making electrification of the economy harder. Quite the contrary: we have very bold and ambitious targets around the electrification of the economy because New Zealand’s great comparative advantage is that we have plenty of wind and we have plenty of water and, you know, sometimes we have plenty of sun. Actually, the real issue is how we design a planning system that takes advantage of our abundant renewable resources mixed with our equally abundant non-renewable resources—which we are going to need in the future as we transition to that renewable future.

So we are very focused on that and I’ve already made mention of our plans around updating the national policy statement for renewable electricity. There’s a range of work we need to do around transmission and distribution as well. We’ve also committed, through various agreements, to an electric vehicle charging network to supercharge the ability for people to transition to electric vehicles. Happy to talk to the—

Hon Dr Megan Woods: Well, this has gone wide.

Hon CHRIS BISHOP: What’s that?

Hon Dr Megan Woods: This has gone wide.

Hon CHRIS BISHOP: Well, I’m just answering the questions.

Hon Dr Megan Woods: Thank you, Minister.

Hon CHRIS BISHOP: I’m not sure that helps you.

Hon Dr Megan Woods: Oh, it does!

Hon CHRIS BISHOP: I mean, I’m actually rebutting—OK, well, that’s your view.

Secondly, on the cost: yeah, a lot of time and money has been spent on it. I acknowledge that right up front. But, you know, it’s classic sunk cost fallacy. I mean, this is where the last Government got into with the Inter-island Resilience Connection deal—just chucking good money after a failing project in the vague hope that it would be successful.

On the first point, the member asserted that the intention of the Natural and Built Environment Act (NBA) that we’re repealing was to make things more workable and to improve speed and enable quicker decision making. Yes, that was the intention of the bill, but just because that’s the intention of something doesn’t mean that that is the reality of something. I sat through the select committee process, I’ve talked to a range of experts in the planning and infrastructure space alongside the renewable energy space, and there’s very few people out there who would tell you that the NBA will be an improvement. In fact, most experts say it will do the opposite: it will make things more difficult; it will make life more complex, more complicated; and make it harder to get things done.

So yep, the intention of the bill was sound. Most bills that Parliament passes have a good intention. But, you know, as Milton Friedman used to say: you should judge policies by their results, not by their intention, because Government spends a lot of time doing well-intentioned things. Intention is not the point; results matter. Thank you.

CHAIRPERSON (Teanau Tuiono): Thank you. Members, just as a reminder—and I do note the enthusiasm in the room and also with the Minister as well—that we’re on the debate on Part 1: clauses 3 and 4, “Preliminary provisions”; and Schedule 1.

Hon BARBARA EDMONDS (Labour—Mana): Thank you, Mr Chair. Again, I want to reiterate the difficulty in relation to this bill and I am just a lowly tax lawyer; I’m not a Resource Management Act (RMA) lawyer like some of my esteemed colleagues on this side of the House, or advisers to the Energy Efficiency & Conservation Authority.

But, actually, one of the important things which was not included, as the Minister knows, because of a Cabinet Office directive, which is not to have a regulatory impact statement. So putting that aside, in order to look at the evidence base as to whether this bill, which is repealing some very important Acts which have only had four months actually in progress, you look to, then, the departmental disclosure statement. I’ve had a lot of experience with departmental disclosure statements. Actually, I was the very first official who did the very first departmental disclosure statement under Jonathan Ayling of the Treasury, and that was for a tax bill—actually was called the foreign tax bill.

But anyway, looking to 2.3 of the departmental disclosure statement, it actually—and I’m not too sure whether this is the right part, but I’m going to speak to it in this part because Part 1 has the transitionary rules—and: “The extension of the deadline for councils [not] to notify freshwater planning instruments is not covered by the 100-day exemption … due to time constraints, a RIS was not developed” for this particular bill that we’re taking through.

“Instead, the Treasury and the Ministry for the Environment have agreed that decisions to change the deadline will be subject to post-implementation assessment in line with other 100-day plan initiatives, and when Cabinet makes further decisions relating to commitments to replace the National Policy Statement (NPS) for Freshwater Management.”

So my very specific question and short contribution to the Minister is: when will that post-implementation occur? Who will be involved? Will that information be made public? And when can this House—given that we don’t have a select committee process; we are repealing this Act under urgency—expect some transparency in relation to the repeal of this bill and in relation to that NPS of freshwater management?

Hon Dr MEGAN WOODS (Labour—Wigram): Thank you, Mr Chair. Just a further call. One of the things that the Minister mentioned in his last contribution when I asked him a question—or it may have been in response to another member—was the work on the national policy statement (NPS) renewable energy. I have some questions for how the NPS renewable energy intersects with the transitional arrangements that will be laid out, specifically the fast tracking laid out in Schedule 1.

What I’d like to know from the Minister is: is the NPS renewable energy that he said his Government has started—does that mean they are not continuing with the work the previous Government had done when, indeed, an NPS renewable energy had been released for consultation? Is the Government starting that work again, or is it a continuation of the work that our Government started many, many months ago?

The other thing I’m interested to know from the Minister, further to the answers he said he believed that Mākara had been applied for in 2000. I’d like to ask the Minister what was applied for in 2000, and who was it applied to? Is he referring to the resource consent to Wellington City Council? I’d just like some more clarity, because one of the problem definitions that both this Minister and the Prime Minister himself have been using is the example of Mākara taking eight years to consent. So I think given that we’re in urgency, I’d like some clarity around exactly what was applied for in 2000, to who, and was that the Wellington City Council consent?

ARENA WILLIAMS (Labour—Manurewa): Thank you, Mr Chair, for the opportunity to contribute to this debate, and congratulations to the Minister in his new role. There are a number of amendments in my name to Part 1—seven, actually—and to be economical with my time, I’ll be talking about four in this contribution that relate to ngā Mana Whakahono ā Rohe agreements. The House will find those in clause—they are amended by clause 3 of the amendment bill, but they are in clause 11 of Schedule 1.

So it would be useful, I think, if I quickly give the House the context of what this clause 11 does. This means that for those hapū that have entered into a process for agreeing Mana Whakahono agreements in any given region, this provides a transitional arrangement for them to continue with those arrangements as if they were an iwi authority. Now, the House finds itself in some trouble with this—particularly with those agreements where hapū have entered into them with their regional authority but they cannot, for some other legal reason, be treated as an iwi authority. I have some amendments that will help the Minister to get past this hurdle, and I hope he’ll consider them when we come to the vote.

The first that I want to speak about is, say, the transitional arrangement of the Mana Whakahono ā Rohe under Part 3 of the Natural and Built Environment Act 2023 entered into by Poutini Ngāi Tahu. That agreement itself was signed on 22 October, but it represents the first in a number of processes for the other rūnanga, rūnaka of Ngāi Tahu to enter into regional agreements within their rohe. Because, Mr Chair, you’ll appreciate that for an iwi the size of Ngāi Tahu, their iwi catchment area is almost the whole of Te Waipounamu, but they have a number—13, I believe—of rūnaka, rūnanga that have primacy than their own regional area.

Now, they are called rūnaka—you might think of them as hapū and for the effect of this bill, they are being treated as hapū. But this provision in the amendment bill, as proposed, would see them being treated as iwi authorities. They are not iwi authorities. They should not be treated as iwi authorities for the purposes of the Resource Management Act (RMA) because they are not an iwi authority. The iwi authority in Te Waipounamu—for the purposes of the area of the south of the South Island, excluding the top of the south and those iwi that claim primacy in that area—is te iwi o Ngāi Tahu. They have their own constitutional arrangement to share power between the iwi and those rūnaka, and it would be inappropriate for them to gain the status of iwi in this situation.

It’s worth spending a little bit of time in the context for this. Those rūnaka and the Poutini Ngāi Tahu rūnaka that entered into those arrangements had the blessing of te iwi o Ngāi Tahu. Te Rūnanga o Ngāi Tahu kaiwhakahaere, Lisa Tumahai commented, on 23 October, that this agreement was the logical next step in developing the relationship: “When we think about our history as [an] iwi, it has been quite a journey to get to a position of working with the council in a true sense of partnership. The work we have all done in the past five years, having been on council, we have made big steps forward from the past, and it reflects our growing maturity as iwi [in the] post-settlement [context].” What she’s saying there is that there was an agreement between the iwi and what we would see is for the hapū to lead out with the council in this area. It’s inappropriate for them to take on the role of the iwi, but the iwi came to an arrangement with the hapū that they could share that role.

What I want to know from the Minister is: will he consider my amendment to maintain the Poutini Ngāi Tahu agreement that was signed on 22 November in the primary legislation, which is what my amendment would do, and then to explain to the Chamber how he will give effect to those other rūnaka-level arrangements that will be entered into by the other rūnaka of Ngāi Tahu.

I would also like the Minister to answer two specific questions for the Chamber before I explain my other amendments related to Mana Whakahono agreements. The first question is: which hapū have started the Mana Whakahono ā Rohe process but are not completed? The second question is: the hapū of Ngā Puhi do not have the ability to act as an iwi authority and should not be treated as an iwi authority for the purposes of the Resource Management Act; how will the Minister deal with ngā hapū o Ngā Puhi who have entered into or intend to enter into a process for Mana Whakahono arrangements?

Hon JULIE ANNE GENTER (Green—Rongotai): Tēnā koe Mr Chair, tēnā koutou e te Whare. I had a question for the Minister directly related to his previous contribution, I think, which was he mentioned that all the experts were saying that this new legislation was going to be more costly or create more problems than the previous Resource Management Act (RMA), and I was just wondering if he could cite all of the experts he’s referring to, or any of the experts he’s referring to. It’d be interesting to know which experts the Government is listening to, and to have a good sense of how many experts are of this view.

I found it interesting that the comments on the amount of time it takes to consent a wind farm—we’re referring to a specific example from 2000 to 2008. So now we’re talking nearly 20 years ago and that was under the RMA. So, of course, not under the legislation that’s being repealed today, but rather under the legislation that we’re now going back to and we’re going to have to take a whole—I would presume the Government’s going to have to take a lot more time to come up with the work that’s going to enable renewable electricity to be consented at a faster rate.

My second question for the Minister relates to the Spatial Planning Act and whether the Minister sees any use in having spatial planning to inform the overall approach to infrastructure and land use or whether that’s something that the Government is completely rejecting and won’t be making use of. Interestingly, in this bill itself, in Schedule 2—I know we’re on Schedule 1—it is the case that under the Auckland super-city legislation, Auckland was required to develop a spatial plan, and my understanding of the Spatial Planning Act, which is being repealed by this legislation, is that it was taking a similar approach. So of course, in this repeal bill we are still retaining spatial planning for Auckland, and that bill was passed under a National-ACT Government. So why is it that the new National-ACT Government is rejecting spatial planning as a whole when it’s clearly needed to have joined up land use and infrastructure?

I guess I’m really struggling to understand why spatial planning is being retained for the Auckland super-city but not being used for the rest of the country when it’s very clear that whether we’re talking about transmission lines or transport infrastructure and urban development, one of the biggest opportunities for Aotearoa New Zealand is to have a more joined up approach to infrastructure and land use, and that the Spatial Planning Act that’s being repealed by this bill would have enabled that to happen in a more proactive way.

My final question for the Minister is just about how long he thinks it will take to develop the national guidance for things like renewable electricity generation, like the wind farms that have, you know, been such a focus of the Government in terms of arguing for fast tracking, and yet I suspect that it won’t just be renewable electricity generation and transmission that is being fast tracked, but we’ll see a whole lot of other developments fast tracked, which will probably have a counterproductive impact on our overall carbon emissions. The Minister might remember that, actually, of our total energy emissions, most of them aren’t from electricity, it’s largely from transport fuels and—

Hon Dr Megan Woods: And industrial process heat.

Hon JULIE ANNE GENTER: —and industrial process heat. But transport fuels play a huge role—far outweighs electricity in terms of the percentage of energy that is resulting in carbon emissions.

So if the Government is using the fast-tracking legislation to fast track highways to new suburban developments, which is the most costly, most counterproductive type of transport, infrastructure, and urban development because it’s the highest overall infrastructure cost from a water-transport point of view, locks in households to very high personal transport costs and high emissions, especially when they don’t have electric vehicles—which most New Zealanders don’t have electric vehicles.

So question for the Minister: is the fast tracking going to be directed towards things that actually reduce carbon emissions or is it just fast tracking of all infrastructure?

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Thank you very much, Madam Chair. Let me deal with the range of contributions by members, some relevant, some not so much. Let me go in reverse order from the Hon Julie Anne Genter. Which experts? Well, I invite her to go and read the submissions to the select committee. There was a range of select committee submissions from various city councils, renewable energy generators, infrastructure planning experts, planning experts—there’s a whole range of them. The select committee reports are publicly available, as are the submissions.

On her second question about spatial planning generally. Yes, this Government is interested in spatial planning for the reasons that the member neatly articulates. But I think it’s important we take a coherent approach to it. The last Government’s approach was incoherent in the sense that the Spatial Planning Act was being advanced at the same time as the Government was engaged in quite complex and ever-changing three waters changes, alongside the Future for Local Government reform which put the local government sector into a spin. So it’s not that I’m opposed or we’re opposed to spatial planning—I actually think there is a pathway forward there and I look forward to future conversations around that. In relation to fast track, the member will just have to wait and see the bill as we develop it. We are saving, as has already been noted, the existing fast track in the Natural and Built Environment Act.

Going back to the comments from Arena Williams. Thank you for those remarks. I’m advised that in relation to clause 11 of Mana Whakahono ā Rohe, none have been lodged and so there is nothing that has started that this Act stops. So there is nothing in that sense to protect. It’s just that the bill is essentially a belt and braces approach to say that if one was lodged then it would just be treated as if the Resource Management Act (RMA) in 1991 applied. So it’s just to preserve that ability—

Arena Williams: When you need an amendment, I can help.

Hon CHRIS BISHOP: I’m happy to have a look—happy to have a look at the amendment. No guarantees we’ll support it, but happy to have a look in the spirit of good faith. It is important that we preserve Treaty settlements. That is a Government commitment. That is something that we are committed to and that is why we are going—we are just repealing what has been passed and going back to the RMA as it was basically four months ago. With the exception of saving the fast track in the Natural and Built Environment Act, there’s no intention to change any arrangements around that. Happy to look at the amendment from the member.

In relation to the Hon Megan Woods’ question about the national policy statement on renewable electricity generation—somewhat away from the bill, but, yes, we will have a look at the consultation material put out by the prior Government earlier in 2023. We are going through policy work on that right now, but acknowledge that the outgoing Government was also interested in advancing a national policy statement on renewables.

In relation to Meridian and West Wind, I don’t have that information. Frankly, I don’t consider it a great use of officials’ time to go away and find that in the short term. It is literally nothing to do with the bill.

Hon Dr Megan Woods: You and the Prime Minister have been talking about it ad infinitum.

Hon CHRIS BISHOP: Yeah, yeah, well, that’s right. It’s a great project and it took too long to develop, but it’s not really relevant to the bill.

In relation to the Hon Barbara Edmonds’ questions in relation to the departmental disclosure statement, she said, “When will the post-implementation review be complete?” The answer is next year. Who will be doing it? It will be the Ministry for the Environment and the Treasury, I’m advised. And when will it be made public? Next year.

Hon Dr MEGAN WOODS (Labour—Wigram): Thank you very much. I thank the Minister responsible for RMA Reform for the answers to those questions. One of the things that I’m interested in in terms of the transitional provisions that we’re talking about under Part 1 of this bill, and particularly as they pertain to renewable energy, is that the Minister has indicated that this Government is eager to keep in place the fast-track provisions that the previous Government instituted. I can see why: under that scheme, nine solar projects were consented that were three times the output of the Clyde Dam. We have similar kinds of statistics for wind projects. So we can see that, actually, in terms of the problem definition and why the Government is using as a basis for why we’re here today that it takes too long to consent renewable energy as one of the key talking points, both the Minister—and, as I’ve indicated, both in substantive contributions and in heckles across the Chamber—and the Prime Minister use this as the basis of their problem definition, and particularly how long a particular wind farm in Wellington took to consent.

While the Prime Minister and the Minister consistently say eight years, why I have been asking questions is that is simply incorrect. The wind farm that the Minister is talking about and the Prime Minister has been talking about took three years. It took three years from the time that the consent was lodged with the Wellington City Council. This is one of the problems with rushing legislation like this. If the very basis of the problem that both the Minister and the Prime Minister are putting up is the reason why we are here the week before Christmas repealing substantive legislation and they can’t even get the basic facts right, I think it speaks something to the speed at which this Government is going.

But I do have a substantive question around the transitional provisions, and what it is is that the fast-track consents are going to be kept in place. The Minister’s party has talked about wanting to increase to 35-year consent periods, and I wonder whether it is the intention of the Minister, when further changes are made and these transitional provisions are carried over, to institute 35-year consents for renewable energy. And, if that is the case, what advice and thought the Minister has already taken or will be taking to how it is that we can avoid people basically sitting on consents to block competitor behaviour, in fact stifling the build-out of the renewable generation—“lose it or use it” clauses, if you like. One of the problems, of course, that we have when it comes to things like wind energy is that we have many more projects consented than have been built that are sitting there and not built by the electricity sector.

So, in terms of those transitional provisions that are in Schedule 1 of the bill, I’d like to know what thought the Minister is likely to give so that we do not create what I do believe would be an unintended consequence in terms of stifling the ability to build out.

SCOTT WILLIS (Green): Thank you, Madam Chair. I’d like to follow on from that excellent presentation from the Hon Megan Woods. Four years—four years—I worked on trying to build New Zealand’s first community wind farm, so I have some sympathy with the idea about fast tracking wind in particular. I was looking forward to the Natural and Built Environment Act for the concise direction that it would give local government, who are often unskilled, don’t have the expertise, don’t know how to deal with consents, and would like some clarity and direction.

I do think back to 2010 when the National Policy Statement for Renewable Electricity Generation was subject to a board of inquiry and then submitted to the then National Government with a recommendation that a national environmental standard accompany it to give clarity for renewable generation. That recommendation was not adopted, and as a consequence wind farms that could have been built to provide resilience for out-of-the-way communities have not been built. As a consequence, the wind farm that I was trying to build lost $500,000—

CHAIRPERSON (Maureen Pugh): Come back to the bill.

SCOTT WILLIS: —in trying to get through a consenting process that you want us to return to.

I’m really interested in what the Government can do to enable renewables, but let’s look at what’s been thrown out. What’s been thrown out is a focus on working towards positive outcomes rather than avoiding, remedying, and mitigating adverse effects, which has allowed cumulative impacts. That’s been thrown out. Another thing that’s been thrown out is a stronger approach to environmental limits and enabling development within limits through the outcome around ecological integrity. That’s been thrown out. Another thing that’s been thrown out is reducing the risk from natural hazards and climate change and increasing resilience. That’s been thrown out. Another thing that should interest anyone who cares about rural issues—for goodness’ sake!—is the protection of high-quality rural land and elite soils from urban sprawl, which National wants to do. That’s been thrown out.

So I have some real concerns about what you’re doing here, and I also really challenge the underlying idea that we can’t build because we don’t have the structure.

CHAIRPERSON (Maureen Pugh): Come back to the bill, please, Mr Willis.

SCOTT WILLIS: Look at the Kawaikawe—sorry, there is a point I’m getting to here, a question that I really do want an answer to—look at all the wind farms, 73 megawatts sitting on, that was given a consent in March 2023; nothing happening. The Puketoi Wind Farm, Mercury—not being built. The Mount Cass—not being built, 93 megawatts, etc. Mahinerangi, quite close to where I live, stage 2 development, up to 164 megawatts—not being built. There are wind farms galore not being built. This is called land banking. It’s blocking the generation; it’s blocking people who want to do it.

The Minister responsible for RMA Reform says he wants to see more renewable electricity generation being built. There is plenty that is not being built. So, look, will the Minister commit to doing something to ensure that renewable electricity gets built? Don’t talk about it; commit to doing it. Will you commit to put a date on when a national environmental standard will be delivered to the House so that we can see farmers who want to decarbonise—and I know quite a few and I work with quite a few—to build small-scale wind, under 10 megawatts? What’s the time frame? I want to see something substantial. I don’t want to hear any more rhetoric; I want to hear something substantial.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): I do have to laugh at that last little epithet from the member. We’re now well away from the bill, but let me briefly address the member’s questions. Firstly, the National Policy Statement for Highly Productive Land is issued pursuant to the Resource Management Act; it’s not affected by this repeal bill. There are issues with that, which we’ll get to in due course, but it’s not affected by that.

In relation to the fact that lots of people have consents for wind farms, yes, that’s true, and, you know, I’m happy to have an offline discussion with the member about the way the electricity market works. The member actually sounds like he’s pretty familiar with it; I acknowledge his expertise, but we’ve designed a market where, you know, the generators—

Scott Willis: The market doesn’t work.

Hon CHRIS BISHOP: Well, the member says that, but we have one of the most renewable electricity systems in the world. We have one of the most affordable electricity systems in the world and one of the most secure. We’ve got to do more, but the market does work, because we’ve designed a system where investors put up their own capital and they put them in a stack and the next cab off the rank when it comes to the economics in the system work. Yes, there’s a bit of a fight over the consents and bit of a fight for the best sites—that’s good. That’s a good thing. What we need to do is make it easier to get the consents so that people can do that. So that deals with that.

In relation to the Hon Megan Woods’ point, I’m advised that the length of consents through the fast track that we are saving is up to the expert consenting panel. In relation to her comment around “Will the Government look at 35-year consents?”, the answer is yes, we will. But that’s not part of this bill, and we will be taking advice and making decisions on that in due course.

Hon GRANT ROBERTSON (Labour): Thank you very much, Madam Chair. It’s a pleasure to take my first call in Part 1 of the bill. I’ve got two or three questions I want to put to the Minister, and to help him prepare a little bit, it is around clauses 4 through 7 in Schedule 1, around Treaty settlements, and then clause 8 in Schedule 1, on the fast-track consenting process.

But I want to raise a bigger-picture question for the Minister on the subject of transitional arrangements, because this is an unusual bill in many ways in that it will in Part 2 attempt to repeal two Acts, but in Part 1 it wants to keep some of that legislation. The choice about what bits of the Natural and Built Environment Act and the Spatial Planning Act are kept is the question I want to put to the Minister—the big-picture question I want to put to the Minister—because I want to know what consideration the Minister gave to other ways of the transitional provisions working.

For example, while accepting that the Resource Management Act (RMA) is still in force, keeping it that way, suspending the application of the Natural and Built Environment Act and the Spatial Planning Act to the extent that they are inconsistent with the RMA, retaining the bits—and I want to come back to the question of the Treaty clauses because I don’t think they do exactly what the Minister said before, but why just those and the fast-track consenting process? Why not give some space to the Minister to be able to, effectively, allow him to do this without pulling the whole house down?

I’m going to make a prediction that at a certain point, the Minister is going to be back with a whole lot of clauses that look really similar to the thing that he’s just pulled all down, and what I would suggest to the Minister is that he had an alternative. He had the alternative of actually allowing the system that we’ve created to continue but actually give himself six months, nine months, 18 months to decide whether the bits that he’s now getting rid of work.

So that is the first of my questions to the Minister. It is the extent to which he has considered other options that would actually allow key features of the new system to continue and the RMA exist as it did, rather than have to go through and do this exercise, which I think he’ll end up doing twice.

Moving to the more detailed questions I’ve got; I need an explanation from the Minister as to exactly what clauses 4 through 7 are designed to do when it comes to Treaty settlements. It seems to me on reading this that they are specifically about fast-track consenting and nothing else. I had the great pleasure of chairing 19 meetings of the ministerial oversight group on resource management reform—

Hon Member: You’ll never get those back.

Hon GRANT ROBERTSON: I’m never ever getting those hours back, and I’m sure the Minister may look forward in his future to something similar to that. But in all seriousness, the discussions—and the most intense discussions—during that period were around the way in which planning law affects iwi, hapū, and the Treaty process. It seems to me that clauses 4 through 7—and this is the question that we need answered by the Minister tonight. It is whether this justifies the fast-track consenting, because if it does only apply to fast-track consenting, the problem is much, much bigger for this Government, because the changes that were made to protect and support Treaty settlements and processes that have followed by post-settlement entities—

Simon Court: They’re all preserved—they’re all preserved.

Hon GRANT ROBERTSON: —have been significant. So why are they not in the transitional provisions, Mr Court? Why are they not in the transitional provisions? Why is it just the fast-track consenting clause? I don’t think it is clear to a lot of people, outside of this House, that that’s what it is, because, at the beginning, in the explanatory note, it makes it sound like the whole Treaty settlement process has been protected, but, actually, it hasn’t. It’s just the fast-track consenting process.

Now, Mr Bishop’s going to stand up and tell us that the RMA protects that. Well, no it doesn’t. You can ask any iwi or hapū around New Zealand, and they’ll tell you it doesn’t. There were other changes that could have been brought forward in the transitional provisions.

I want to now come to the fast-track consenting process changes that are also covered by clause 8—[Bell rung] Madam Chair?

CHAIRPERSON (Maureen Pugh): I call the Hon Grant Robertson.

Hon GRANT ROBERTSON: Thank you, Madam Chair. I won’t take the whole of this call, because I want other colleagues to have a go.

My other set of questions, then, are around the fast-track consenting process. It’s a similar point to the one that I’ve just been making on clauses 4 to 7. In the explanatory note, on page 3, it says, “Schedule 1”—which we’re debating—“provides … interim arrangements, including … continuing in a modified form the fast-track consenting regime in Schedule 10 of the Natural and Built Environment Act”. Now, if we had a select committee process, this would have been the time at which we would have been able to understand in what way, specifically, is this a modified fast-track consenting process.

Now, I can see, in clause 8(3), a series of modifications. I want the Minister in the Chair, Chris Bishop, to explain to this House in plain English how this fast-track consenting process that will be the result of Part 1, is different from the fast-track consenting process that we saw in the Natural and Built Environment Act. The reason I say that is because a number of members in the Chamber have raised their concerns about what the fast-track consenting process will look like and what will be allowed and facilitated under it. We would know, I suspect, today, if this was a normal committee of the whole House stage, the answer to that question, because we would have had those answers in the select committee process.

So just to reiterate—I know the Minister was getting some advice while I was speaking then—I want to know how this fast-track consenting process is different. The explanatory note tells us it is, clause 8 appears to show how it is, but I don’t see that clearly in this bill, and I need an answer from the Minister on that.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Thank you, Madam Chair, and thank you to the member Grant Robertson for those good questions. Let me deal with them in turn. In relation to how the Government came to the position that we came to when it comes to going back to the Resource Management Act 1991 (RMA), yes, it is correct we considered a range of options. The advice from officials was the most legally simple way to do it was this bill, which, essentially—it’s a slightly odd legislative vehicle, and I acknowledge that the member’s point around that’s true. The simplest way to do it was to repeal both pieces of legislation and save some specified things—small things, including fast track. The member makes the point that I may well be back here before the House, making a series of amendments to the RMA. That is potentially true. In fact, it’s quite possible. But the point is that will be done in a thorough way by us, and by the Government. It may be that we take some of the changes made through the Natural and Built Environment Act and re-legislate them, and it may be that others fall by the wayside. But we will work through that in due course. So that deals, I think, with the first question.

The second question is in relation to fast track, and the third question was in relation to the—I’m just trying to remember the member’s point. Do you want to remind me what it was, Mr Robertson? I can’t read my notes, do you want to remind me what the second question was?

Hon Grant Robertson: The one about Treaty.

Hon CHRIS BISHOP: Oh, the Treaty—yeah, yeah, yeah. In relation to the Treaty, the fast-track provisions just make that—so our position is that the RMA upholds various Treaty settlements. I acknowledge the point the member made, that reasonable people could disagree about that. I’ve no doubt that we will work through a robust process around that, as a Government. I’m looking forward to those meetings. So our position is that it does and that it can give effect to those Treaty settlements. The point around clauses 4 through 7 that the member was talking about is to make it very clear, as a result of fast track, that it doesn’t affect Treaty settlements.

In relation to his third question around a modified form of fast track, I’m advised that it isn’t. It is the Natural and Built Environment Act fast track that is being preserved and saved.

Hon RACHEL BROOKING (Labour—Dunedin): Thank you, Madam Chair. Slightly related to that last contribution and discussion about the fast track and what’s included and what’s not, I would like a confirmation from the Minister that clause 14 of Schedule 10 of the Natural and Built Environment Act, which says what the eligible activities are that can be fast tracked, won’t be changed.

I ask that, because we just had Mr Robertson go through and say, “Well, there’s a whole lot here that we don’t necessarily know in plain English what the changes are.” But also there is clause 18, and this appears to be a “King Henry VIII” clause, which is never a good thing. Why I’m particularly worried about it in relation to the fast tracking and what is an eligible activity is because of what we’ve been hearing in the debate today. I would say that the eligible activities at the moment are all very reasonable. But should, say, mining be included in that via a regulation made under clause 18—so amending the primary legislation—then that would be a very big deal indeed. So I would like confirmation from the Minister that that will not happen, and also an explanation of why such a “King Henry VIII” clause is needed in clause 18.

Also, to make the point, that in the departmental disclosure statement at 4.7, it says “Does this Bill create or amend the power to make delegated legislation that could amend an Act, define the meaning of a term in an Act, or grant an exemption from an Act or delegated legislation.” It says “NO”, next to it in the departmental disclosure report, but it very much seems to me, in my reading—and I can see that the Minister will respond to me about clause 18 and the impact and the justification for having a “King Henry VIII” clause.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Thank you very much. Very quickly, in relation to clause 14 and the activities covered by fast track, they are exactly the same as the Natural and Built Environment Act (NBA), I’m advised.

In relation to clause 18, which is the so-called “Henry VIII” clause, I was averted to this by my good friend Dean Knight, now professor of law at Victoria University. I saw his tweet. As members know, I’m an inveterate tweeter—got to get off the old Twitter. But anyway, I saw his—

Hon Grant Robertson: You really do.

Hon CHRIS BISHOP: Yeah, I know; yeah—

Arena Williams: Say more about Dean.

Hon CHRIS BISHOP: He’s a good guy. I’m sure he’s listening, so this is for you, Dean. It is a “Henry VIII” clause and, as members will know, I don’t like them and if you really cared you could go and look up my various contributions to Parliament over the last nine years. It is a “Henry VIII” clause. It can be used to modify primary legislation.

Interestingly, it was carried over from section 801(1)(m) of the NBA proactively by the drafters. So it turns out it was already there. It is there to manage unintended consequences, I’m advised. Clauses such as these are present in other legislation that relates to health and safety, civil aviation, and trusts. So, basically, the sought point is there was a “Henry VIII” clause in the NBA and it’s just been transferred across to the new bill as clause 18.

Hon PEENI HENARE (Labour): Kia ora, Madam Chair, and thank you very much for the opportunity. There were a couple of matters that I thought were left on the table for the Minister to answer. One of those, in particular, was the second part of the question or the second leg of the question by my colleague Arena Williams, and that was about the Mana Whakahono. The Mana Whakahono part talks to those who are iwi authorities who are already engaged or who wish to initiate the engagement.

My question to the Minister, which was alluded to by my colleague, is for the example given by Ngā Puhi for the well over 100 hapū who—

Simon Court: We’ve had this one.

Hon PEENI HENARE: It wasn’t answered, Mr Court. That’s why we’re asking again. The 100 hapū—

Hon Grant Robertson: Point of order. I apologise to my colleague for interrupting. There are longstanding provisions in Speakers’ Rulings that members shouldn’t move to improve their position in order to interject, and Mr Court was consistently interjecting through Mr Henare’s contribution from a seat that is definitely not his.

Simon Court: Just responding to the point of order—

CHAIRPERSON (Maureen Pugh): I don’t think it’s necessary, Mr Court. Thank you very much.

Hon PEENI HENARE: Madam Chair, thank you very much. It is important, the question about Mana Whakahono and the 100-plus hapū of Ngā Puhi—some of whom are already authorised iwi authorities. Some aren’t yet have been recognised through a Waitangi Tribunal process that has heard from those hapū with respect to their mana i te whenua, their ability to have interests across their rohe, across their lands. I’m asking the Minister, because I’m sure they’ll be curious how they’ll be engaged in this. The Mana Whakahono provision is quite clear here. But for those who aren’t an iwi authority here but yet are recognised through the claims process in the Waitangi Tribunal and in other forums, I’m wondering whether or not the Minister has any suggestion for Ngā Puhi, or advice for Ngā Puhi hapū—and the many hapū around the country—about how they might be able to be engaged here.

I also ask with respect to the Treaty provisions here, 5(1)(b), and it talks in there, and, yes, relating directly to the fast track to “support the capacity of the relevant party to participate effectively in those discussions, including by providing appropriate resources;”. Madam Chair, I’m wondering: what do the appropriate resources look like to the Minister and to the ministries here? For example, when the Labour Government was involved in this, it wasn’t just money. It’s talking about bandwidth, it’s talking about capacity, it’s talking about expertise and skills. I’m curious here whether or not the Minister has thought about what these resources are and how he might be able to explain to those iwi and hapū how they may be appropriately resourced in order to engage in this.

The next question I have is around the report backs through 5(2)(b). It says here: “use the Crown’s best endeavours to promote the enactment of the Bill not later than 18 months after the commencement of this clause.”, and moves into (3) and says, “The Crown must also—(a) monitor the progress of the matters set out in subclauses (1) and (2); and (b) make a report to the relevant party on progress every 3 months after this clause and clause 7 come into force.” My question here to the Minister is when we look towards the regular three-month updates, there’s going to be a number of questions that iwi and hapū will have, so I’m going to offer some of these here now: one, who exactly will he be reporting through? And by through, I mean the agency, or is the Minister expecting his office to directly engage in that? Two, does the Minister have a strict key performance indicator on both the 18-month report back as well as the three-month report back to the relevant party? I’m sure many will be interested to know there are a number of events coming up in the coming months where I’m sure that iwi and hapū will want to hear from the Minister with respect to these particular parts of his repeal bill, because the Treaty settlements have often been spoken about in this House as sacrosanct, and now, here we are; we seem to be going back on them.

I think I’ve left three, maybe four, questions on the table for consideration by the Minister. Just finally from me with respect to the Mana Whakahono, the Minister said that none were officially engaged or have officially signed up to be Mana Whakahono, but that doesn’t preclude the fact that many have already been on a journey to sign to a Mana Whakahono agreement under the legislation that’s being repealed today.

I just want to hear once again from the Minister confirmation whether or not it simply goes back to the Resource Management Act process, and, if so, then how does that impact those who have come on their journey to be a mana whakahono in the consideration after this bill is repealed by this Government?

DAN BIDOIS (National—Northcote): I move, That debate on this question now close.

Hon BARBARA EDMONDS (Labour—Mana): Thank you, Madam Chair. A great attempt, but not quite. There are a lot of questions on this side of the House. I stress to those new members of this House: this bill is going under urgency, there is absolutely no select committee process on it; therefore I think it is more than fair that the members on this side of the House who have call after call, who have a number of questions—that’s why the Chamber is so full, it’s because we’ve got so many questions in relation to this bill. The Minister, just before, has acknowledged that even people in the public, even though it’s on X or Twitter or whatever you may call it, are also asking questions.

So, therefore, my question really will be short to the Minister, because I really want to clearly understand—because when we get out of this House, whenever that is, because this side of the House has lots of questions, and I suspect that it’s going to take a number of hours to get through them—when this bill goes through, I have a huge question in relation to clause 7. That is, in relation to the regulation to uphold other arrangements.

So there have been about three different questions from three different members in relation to the operation and the reconciliation of clause 7. One, is this in relation to Treaty settlements or arrangements only as part of the fast-track consenting; I think the Minister made it clear that, yes, it was around fast-track consenting only. There was another question, from the MP for Manurewa, Arena Williams, around who were the hapū and the iwi who have actually entered into these arrangements, and the Minister has clarified that there were none. So the Minister also said that there were none, this is belt and braces, and it’s going to revert back to the Resource Management Act (RMA). I was listening to the Minister’s answers at the time.

However, that is my question as to how that reversion back to the RMA reconciles with clause 7, because clause 7 takes it out of primary legislation, and therefore gives a secondary legislation - making power to the executive in relation to these Mana Whakahono ā Rohe joint arrangements. How does that actually work? How does that reconcile? I ask the Minister to put it very clearly on record how it reconciles, because his comments—given we don’t have a select committee in relation to this—in relation to the Hansard, I think will be very important for iwi when they go back and they engage in this, if they don’t believe that this legislation is very fair if they decide to enter into a joint arrangement.

So I ask the Minister in very clear layman’s terms to absolutely, expressly provide the policy intent for clause 7—how it reconciles with the RMA—because it is a secondary legislation - making power, so that iwi and hapū who may be listening to this debate, or in future once they realise what actually is happening, have a very clear policy intent as to what the Minister on that side of House intended with that provision.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Thank you very much, Madam Chair. I thank the members for the good questions. In relation to the Hon Peeni Henare’s questions, Mana Whakahono ā Rohe made under the Resource Management Act continue with no changes. Clause 11—that I think he was talking about—relates to Mana Whakahono ā Rohe initiated under the Natural and Built Environment Act of which there are none at this point.

Hon Members: Madam Chair.

Hon CHRIS BISHOP: Hang on, I’m still going! The member asked about clause 5, which is the process for upholding Treaty settlements. I’m advised that this is, basically, a belts and braces approach. It’s there if it’s required to make any changes pursuant to a fast-track process that is undertaken. So it’s there if required.

Of course, in relation to the question he asked around what process the Crown will go through with KPIs, I will follow the law. I’m a guy who believes in the rule of law.

Hon Grant Robertson: First time for everything.

Hon CHRIS BISHOP: Well, that’s—that’s—that’s—

Hon Grant Robertson: It was a joke.

Hon CHRIS BISHOP: OK. All right. I’ll take it in the spirit with which it was intended. We’re a Government that follows the rule of law.

Thirdly, in relation to the Hon Barbara Edmonds’ question, the regulation-making powers—there’s nothing particularly unusual about this. This is a standard regulatory-making power, again, if required in relation to the matters that it gives effect to. Again, it’s belts and braces for those that are required.

CHAIRPERSON (Maureen Pugh): Before I take the next call, can I just remind members that we will be looking for new material. Some of this is becoming quite repetitive.

Hon WILLIE JACKSON (Labour): Thank you, Madam Chair. I just want to offer some help to the Minister, because I know he has got a lack of expertise on his side of the House.

CHAIRPERSON (Maureen Pugh): Stick to the bill, please, Mr Jackson.

Hon WILLIE JACKSON: Well, I just want to help him out because there’s probably only one person over there who knows what we’re talking about, Madam Chair.

CHAIRPERSON (Maureen Pugh): How is that relevant to the bill?

Hon WILLIE JACKSON: I want to help the Minister out. He knows I’m very supportive of him.

Grant Robertson was talking about the fast-track process, and I want the Minister to consider this because I think he hasn’t quite addressed the status of Treaty settlements. We’re talking about Part 1, Schedule 1, “Preserving the status of Treaty settlements”, Madam Chair, just for your information. I know that he’s gone down the fast-track process, and that’s good, but I think when iwi look at this, you know, I don’t want the Minister in court. He’s only been a Minister for five minutes, and we want to look after the Minister’s interests.

CHAIRPERSON (Maureen Pugh): Come back to the bill.

Hon WILLIE JACKSON: We know he’s quite representative of the Māori over there in Wainuiōmata. But what sort of support can he give te ao Māori with regards to this? It’s really a worry. All the work that the former Minister Grant Robertson did is all going to go down the tubes if he does not address this.

I also want to follow up on what Peeni Henare said in terms of some of the hapū and iwi. We’d like to know—or I’d like to know—who are the hapū and iwi who the Minister has consulted with. We’d like that. And who are the iwi technicians that he has consulted with, because that’s a process that we went down thoroughly, and you heard Grant Robertson, he was turned up and down by some of his relations, but he enjoyed that, you know, that’s part of his whānau.

So we went back there because we believe in a thorough process. What’s been the feedback? Can he tell me one recommendation that the iwi technicians made that has gone into this bill? Just one—just one will do. If there’s any, I would really, really appreciate that—I’m glad you’re looking for it now—because we are so concerned about this process. We’re so concerned that there’s so little knowledge—Madam Chair, I’m saying that very respectively—within the National Party caucus. As I’ve said, there’s only probably one person who knows te ao Māori; the rest of them, you know, with respect, probably don’t even know they’re Māori. I don’t mean to be disrespectful, but I need to go down this track because Grant Robertson has, quite rightly, put this on the table with regards to the status of Treaty settlements. How are our leaders going to feel tonight when they hear the Minister skirting away, saying, “Yes, the fast track’s OK.”

Hon Grant Robertson: But what about the rest?

Hon WILLIE JACKSON: What about the rest? What about Ngāi Tahu? What about Tainui? These are iwi who have been invested in by the National Party, and now we have this attack from Minister Bishop. I don’t know if he’s meaning the attack or not, but we still can’t work out why he won’t go through a democratic process, in terms of a select committee, and why he is so reliant—Madam Chair, I say this very respectively—on some of the useless Māori in his party.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): I’m going to ignore the pejorative comments from the former Minister.

Hon Willie Jackson: Very good of you.

Hon CHRIS BISHOP: Thank you. This is not an attack on Māoridom; it’s not an attack on te ao Māori either. He asked me a question as to what contribution iwi technicians had made. I have an answer for him: section 104 of the Natural and Built Environment Act which deals with Te Ture Whaimana, in particular with relation to the Waikato River, there was a suggestion made through the iwi technician process which we inserted into the bill at their suggestion. So there has been a—I accept the short process; I accept there’s been a short process. However, as I’ve said multiple times now, our opposition to this legislation has been well known essentially from the start of the regime, and the three Government parties have made that clear right from the start. Look, we can traverse back through the history. There was an opportunity at various points in the last Parliament for consensus. That did not arrive.

I’ve received a letter from the Hon Rachel Brooking in relation to a pathway forward. We’ll be considering that letter and the contribution that maybe we are able to make. So we’ll be considering that. It is important that there is some certainty and stability when it comes to our planning regime. Actually, the Resource Management Act (RMA) 1991’s been on the statute book for 30 years.

Hon Grant Robertson: And you’ve been criticising it.

Hon CHRIS BISHOP: We have, and so have you. So has the entire Parliament.

Hon Grant Robertson: And now you’re just going to take us back there for no reason.

Hon CHRIS BISHOP: Yes, we’re going to go back there, because our view is that this Act that we are repealing is worse than the RMA, which is saying something.

Hon Grant Robertson: And that is ridiculous. That is ridiculous.

Hon CHRIS BISHOP: It is not ridiculous. Many, many people think that.

Hon Grant Robertson: Nobody who understands the RMA would agree with that.

Hon CHRIS BISHOP: No, I’m sorry. Greatest of respect. I acknowledge the former Minister who sat through a lot of meetings that I’m probably going to sit through in the next three years. I acknowledge his hard work on this, and a lot of people put a lot of time and energy into it. But just because you have put time and energy into something doesn’t make it right. That goes back to the point I made before. You’re actually better to cut your losses and walk away, and that’s our point. Anyway, I’ve made my point about three or four times now.

TOM RUTHERFORD (National—Bay of Plenty): I move, That debate on this question now close.

CHAIRPERSON (Maureen Pugh): The question is that motion be put. All those—

Hon Kieran McAnulty: Point of order. Thank you, Madam Chair. Two calls ago—one call ago, actually—you asked for new material. I’ve been here for two hours seeking the call throughout and have not had one call. I am the Labour Party spokesperson for local government, housing, and regional development. They are very relevant portfolios to this. If you’re seeking new calls, I would put it to you that you should be giving those that haven’t had a call and have genuinely been attempting to get one the opportunity to introduce new material.

CHAIRPERSON (Maureen Pugh): Point taken. I’ll ask the Clerk to conduct a party vote.

A party vote was called for on the question, That debate on this question now close.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

CHAIRPERSON (Maureen Pugh): Arena Williams’s first tabled amendment to clause 3 is ruled out of order as not being a serious amendment.

The question is that Arena Williams’s second tabled amendment to clause 3 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Arena Williams’s third tabled amendment to clause 3 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Arena Williams’s fourth tabled amendment be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

: The question is that Arena Williams’s fifth tabled amendment to clause 3 be agreed to.

CHAIRPERSON (Maureen Pugh)

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Arena Williams’s sixth tabled amendment to clause 3 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

A party vote was called for on the question, That Part 1 stand part.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Part 1 agreed to.

Part 2 Repeals and related provisions

CHAIRPERSON (Maureen Pugh): We now come to the debate on Part 2. Part 2 is the debate on clauses 5 and 6, “Repeals and related provisions”, and Schedule 2. The question is that Part 2 stand part.

Hon GRANT ROBERTSON (Labour): Point of order, Madam Chair. Madam Chair, I do just want to seek from you some clarification about the extent of the debate on clause 5. Clause 5 repeals the Natural and Built Environment Act, repeals the Spatial Planning Act, and revokes the Natural and Built Environment forms of these regulations 2023. The first two of those are substantive pieces of legislation, and I do want some assurance that when members of the committee raise issues within that legislation that is no longer going to be on the books, we are able to have a full debate about those.

While they are deceptively short clauses, they do significant things. I’m not relitigating your ruling, Madam Chair, because I know that’s not something I’m allowed to do on Part 1, but I am asking, for Part 2, that consideration is given. Relevance matters here because if we are speaking about matters that are being repealed, they are most definitely within the scope of the debate on Part 2. I just want some assurance on that.

CHAIRPERSON (Maureen Pugh): I give you my assurance, Mr Robertson, and also I have signalled many times during that debate to come back to the bill and provide new material. So I suggest perhaps your team needs to follow your instructions. Speaking to the point of order, Simon Court?

SIMON COURT (ACT): Thank you, Madam Chair. I’d just like to note that during the debate on Part 1, it was a very wide-ranging debate which extended well into the schedules and has covered—

CHAIRPERSON (Maureen Pugh): What’s your point of order, Mr Court?

SIMON COURT: Speaking to the point of order, I think it’s important that we do stick to the very, very limited provisions stated in Part 2.

CHAIRPERSON (Maureen Pugh): Thank you for your help. I call the Hon James Shaw.

Hon JAMES SHAW (Co-Leader—Green): Thank you, Madam Chair. Speaking to the point of order, the bills that the next part repeals did cost something like a quarter of a billion dollars and six years to develop. So I think given that this is a Government that wants to tighten up on costs, it is important that we don’t just throw out a quarter of a billion dollars on a very short debate, and that we do have a fulsome debate. There were a number of speakers who did not have a chance to ask questions in the first round, who I think perhaps would deserve a more fulsome debate in this next part.

CHAIRPERSON (Maureen Pugh): If the material is new and relevant, they will get their opportunity. The question is that Part 2 stand part.

Hon RACHEL BROOKING (Labour—Dunedin): Thank you, Madam Chair. I’m going to go straight into some detail here, and that is on page 105—my 105 of the bill. It amends section 80A, and that is to “replace 31 December 2024” with “31 December 2027”.

What this is about is it looks like it’s just a date change, but it is very important because it is about the freshwater planning process. So Section 80A of the Resource Management Act—that’s what we’re talking about here—requires a freshwater planning instrument. It says at subsection (4), “A regional council must—(a) publicly notify the freshwater planning instrument; and (b) if the purpose of the freshwater planning instrument is to give effect to the National Policy Statement for Freshwater Management 2020, publicly notify the freshwater planning instrument by 31 December 2024.”

The amendment—it looks like from the New Zealand Legislation website—was made on 1 July 2020. So this date has been on the statute book for some time. I imagine it would have gone through with that National Policy Statement for Freshwater Management. So my question is: what analysis has the Government done in coming to its determination that from 2024, we go many more years into 2027—if they have looked at where regional councils have got to with their plans? Because it’s been my experience that there has been good work done by regional councils and they are much closer to meeting the 2024 deadline and there is no need for them to go to 2027. Of course, I note that the substantive issue here is that we have better planning laws or planning regulations for our water so that we have the high-quality water and quantities of water that New Zealanders care about. That is my first question on this part.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): It’s very, very simple. A very simple question; a very simple answer. The Government has a commitment to repeal, replace, and rebalance the National Policy Statement for Freshwater Management 2020. That process will take some time. As the member well knows, there’s quite a convoluted process to go through to update national policy statement instruments. We’ll go through that process in full, take policy advice, and work through that process. So the date extension is to give us time to work through that process and make it really clear to regional councils that we’re doing that and they’ve got the extension of time.

Hon BARBARA EDMONDS (Labour—Mana): Thanks, Madam Chair. Thank you for allowing me to take the call. I actually would have asked this question in the earlier part, but obviously can’t. However, I have found a connection in Part 4, Schedule 2 of Part 2.

So looking at Part Three of the departmental disclosure statement, because, again, this is the only officials’ advice that we can actually go off, under paragraph 3.2, it asks “What steps have been taken to determine whether the policy to be given effect by this Bill is consistent with the principles of the Treaty of Waitangi?” The response by officials was: “Due to [the] limited time, high-level Treaty impact assessments were provided to Cabinet on the NBA and the SPA repeal.” And it references CAB-23-MIN-0473 and CAB-23-SUB468.

So my question to the Minister is: is this information publicly available; if not, will the Minister be able to table that tonight so that members on this side of the Chamber have some officials’ advice in relation to the information that he received, in relation to the impact on Treaty settlements, given that both Part 1 and now Part 2—we have some growing concerns on this side of the House in relation to the impact on some of those settlements.

DEBBIE NGAREWA-PACKER (Co-Leader—Te Pāti Māori): Kia ora. Thank you. Tēnā tātou e te Whare. A couple of questions. I think the first thing is, as my colleague to the right, who’s from the left, just said, there have been assessments identified that this bill has implications under Te Tiriti, but because of time frames there hasn’t been able to be a good analysis, there are complex interactions that will affect Treaty settlements, and that given the time lines, only limited engagement with post-settlement governance entities has happened in other Māori groups.

Now, I just wanted to hold that, and the question that I have for the Minister is on page 83, under Schedule 2. In Schedule 3 of the Urban Development Act 2020, clause 1(4)(c), the Minister’s proposing to replace “Te Tiriti o Waitangi” with “the Treaty of Waitangi”. My question is: there were 50 rangatira that signed the Treaty; there were 500 rangatira that signed Te Tiriti, what is the Minister going to do about those who signed and recognised Te Tiriti and their relationships, indeed, under their settlements and those who are currently waiting and preparing to go through settlement—some who are large groups of hapū and iwi.

I want to also pick up on that hapū and iwi in Schedule 2 on page 83: in Schedule 3 of the Urban Development Act 2020, clause 1(4)(e), the Minister is proposing to replace “iwi and hapū participation legislation” with “iwi participation legislation”. So what is the Minister proposing to do with the hapū who have been completely left out and replaced? We have real concerns, obviously, with those 500 who only recognise rangatira and signed Te Tiriti, and those hapū that I’m sure the Minister would not want to be seen left out of legislation.

The further question that I have to ask to the Minister is that there has been a redefining and replacing of the definition of “Te Mana o Te Wai”. It is unclear who has been engaged with determining Te Mana o Te Wai, specifically given the Minister’s concerns about the kupu of te Oranga o te Taiao. And the meaning that has been set out in the National Policy Statement for Freshwater Management has been completely rewritten and the purpose for it. Again our question is: if in fact the Government hasn’t had the time, because it’s under urgency, to engage not only with post-settlement governance entities, to engage with pre-settlement iwi, hapū entities, and other Māori groups, and if the Minister is proposing now to replace “Te Tiriti” and only acknowledge “the Treaty”, what is he going to do with the 500 rangatira who only signed Te Tiriti and not the Treaty? Is this indeed the start of the deterioration from this Government of the Tiriti?

I think it’s really important. This is of absolute imperative to Māori. You must remember: 30 percent of those of Māori voted for Te Pāti Māori. We have six of the seven electorate seats. We have been contacted by numerous technicians, numerous hapū. Only 1 percent voted for that party over there. So what I am really clear and confident in is who I can speak for, which actually this part over here can’t speak for. What is the Minister proposing to do? Is he proposing to rewrite the Tiriti?

Hon CHRIS BISHOP (Minister responsible for RMA Reform): In relation to the last question, no, I am not proposing to rewrite the Treaty of Waitangi. The committee will be glad to know that. I’m advised that the change that the member is adverting to at page 83 is just in keeping with what I’ve already said, which is that we are just going back to the Resource Management Act 1991 in the interim while we work to have a replacement regime around fast track and also a replacement regime for the resource management. So that deals with that. I know the member’s getting very excited, because she’s sort of randomly flipped open the bill and found something and is trying to make a mountain out of a molehill. The member is getting a bit excited.

In relation to the questions from Barbara Edmonds, which is sort of on a similar note, in relation to the departmental disclosure statement, I will consider making that information public in due course. It’s a Cabinet paper, so it will be proactively released in due course. And the other point to note there is that there was engagement between post-settlement governance entities and iwi by the Government. It was, to be fair, limited. I’m not going to pretend it was a full and robust engagement, but there was consultation. There were letters sent by myself to all local councils and also to post-settlement governance entities, PSGEs as they’re known in the parlance, and there was engagement with iwi technicians. And as I’ve indicated in my response to the Hon Willie Jackson’s question, there was a helpful suggestion made, which was inserted into the bill. So there has been engagement. I’m not pretending that it has been as robust as members would have liked, but there has been engagement.

Hon GRANT ROBERTSON (Labour): Oh, great choice, Madam Chair, thank you. I have a series of questions for the Minister, mostly around clause 5(2), because the Spatial Planning Act, one of my favourite bits of what we did, hasn’t had anywhere near enough attention tonight, so I want to come to that.

But, first, I want to ask the Minister whether or not any cost-benefit analysis has been completed on this piece of legislation that’s in the House tonight.

Hon Shane Jones: Oh, detail!

Hon GRANT ROBERTSON: I’m not at all surprised that Shane Jones doesn’t care about cost-benefit analysis, but that’s the subject of another discussion for another day. But the work that was done, and the Hon James Shaw mentioned this before—the extent of the work that was done to create the two pieces of legislation being repealed under clause 5 of the bill that we’re debating tonight. Among other things we were able to determine during that was that over 30 years the Ministry for the Environment estimated that the new system would deliver between $2.58 and $4.90 for every dollar that was spent. Now, that kind of return—I see that’s back to Mr Jones’ interest when he hears about that kind of return on investment, because that is a significant improvement to where we are.

The system could have created a 19 percent reduction in costs, or around $150 million per year in reduced costs from the two pieces of legislation that are proposed to be repealed under clause 5 of this bill. Now, I find that extraordinary, because we hear day after day from the Government opposite that they’re here to be able to cut costs and cut waste and be more efficient, and here they are repealing legislation that would have saved around $150 million a year and, over 30 years, delivered between $2.58 and $4.90 in benefits for every dollar spent. That kind of cost-benefit analysis should accompany any major piece of legislation. So my question again, for the Minister’s benefit, is for him to be able to tell us whether or not he did commission a cost-benefit analysis and what it said, because at the moment this looks like a pretty bad deal for the taxpayer to be going backwards to this.

I also, as I said, want to then ask the Minister a series of questions around his repeal of the Spatial Planning Act. There are many of these that I could ask, but the ones that I want to start with are the extent to which the member thinks that the repeal is going to result in an increase in the number of plans that need to be done. The Minister, because I know he’s followed this debate for some considerable time, would be aware that we were moving from around 100 plans that are required to be done, and all of the red tape and the challenge and the difficulty that presents to people to want to be able to do things—we were going to reduce that down to 16 plans, from 100 to 16. That’s the cutting of red tape. They should be on their feet over in the ACT Party saying, “Well done, congratulations to the former Government for doing that.”, but instead tonight Christopher Bishop and the National Party want more plans. They want 100 of these plans around the country that are going to slow down the activities of people. Mr Bishop and others—Christopher Luxon being one of them—have told us how bad the Resource Management Act (RMA) is. Chris Luxon told us it didn’t work for anybody, it needed to be got rid of, and tonight they bring it back. Clause 5 repeals an Act that actually would’ve seen the number of plans reduced down from 100 to 16.

So I want the Minister to tell me how many plans he expects will exist under the RMA instead of the Spatial Planning Act, and while he’s at it, it would also be useful for him to be able to outline to us what it will mean for the speed of plan-making to return to the Resource Management Act rather than the Spatial Planning Act—I’m sure the member would be able to help understand that for us—what it would mean in terms of Māori representation in the plan-making process. So what does it mean now to go back to the Resource Management Act? Can he please explain to the committee in some detail what the difference is there, and whether or not there will be fewer consents as a result of the plans that are now going to be put here, or more consents? I look forward to the answers from the Minister.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Thank you very much, Madam Chair. I can deal with these questions relatively simply. In relation to cost-benefit, no, we haven’t done a cost-benefit—

Hon Grant Robertson: Oh, outrageous.

Hon CHRIS BISHOP: Well, yeah. It’s three minutes to 10 o’clock. I mean, there are so many things I could say about cost-benefit under the last Government, but I’m not going to.

Hon Grant Robertson: No, you just decided not to do one.

Hon CHRIS BISHOP: Well, no, because we sought a mandate to repeal this legislation and we received that mandate and we are doing it.

In relation to the second question, I do not and we do not accept the analysis that the member has raised around the $2.58 to $4.90, which I think he mentioned as the return.

Hon Grant Robertson: Ask the officials.

Hon CHRIS BISHOP: Well, yeah. Well, no doubt we’ll be discussing it. I don’t accept the analysis that was presented.

Hon Grant Robertson: You just don’t accept it.

Hon CHRIS BISHOP: Well, no, I don’t. I don’t accept it. I don’t accept it. Again, if the member wants to point to Ministers ignoring official advice, there are many examples from his time in Government that we can point to, but I won’t.

On spatial planning, which is more substantive, the member does make a good point. Spatial planning is important and we do want to develop a robust regime around that. We do want to see fewer plans; we do want to make it easier to streamline. There are a number of issues with the spatial planning regime as advanced by the previous Government as is contained in the Spatial Planning Act (SPA).

The first is that the member talks about a reduction in bureaucracy, but actually the regime would have set up new layers of bureaucracy through regional planning committees and what not to create that. Again, it goes back to the point I made before about the intention being a good one; the outcome not necessarily being created by that. So I do say to the committee and say to the member that we are interested in regional planning and spatial planning, but getting that regime right is important.

The other thing that should happen is it should be done in a coherent way. The last Government had the three waters regimes going on at the same time as the Spatial Planning Act was being passed, at the same time as the future of local government was throwing all of the local government sector into a spin about what the future of planning was. You know, all three things have some merit as things that Governments do often do, but getting some kind of structural coherence around that, I think, is important. I’m not trying to be overly political; I’m just making the point that coherence is important. So that deals with that.

Everyone wants to see fewer plans and faster decision-making under the RMA; I think we’re actually aligned around that, it’s just we disagree that the Natural and Built Environment Act and the SPA would have delivered that. That’s fine; reasonable people can disagree. We sought a mandate for it and now we are proceeding to implement it.

CHAIRPERSON (Maureen Pugh): Members, the time has come for me to leave the chair. The committee will resume at 9 a.m. tomorrow. Thank you.

Debate interrupted.

Sitting suspended from 10.01 p.m. to 9 a.m. (Wednesday)


TUESDAY, 19 DECEMBER 2023

(continued on Wednesday, 20 December 2023)

Bills

Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill

In Committee

Debate resumed.

Part 2 Repeals and related provisions (continued)

CHAIRPERSON (Barbara Kuriger): Members, when the committee suspended last night, we were debating Part 2. This is the debate on clauses 5 and 6, “Repeals and related provisions”, and Schedule 2. The question is that Part 2 stand part.

ARENA WILLIAMS (Labour—Manurewa): Thank you, Madam Chair, for the opportunity to contribute to this debate. It’s my first opportunity to contribute to this part and I have 11 tabled amendments in my name that I hope the Minister in the chair will consider, because there are a few that do some things that this House has been discussing last night.

So the first ones that I’ll speak to are the first three on this part—they are new clauses 5A. The effect of the clauses that I’m seeking some support around the House for would bring in a new section after section 5, which, essentially, referred to one of the committees of this House the pieces of legislation which are being repealed for a cross-partisan discussion about those clauses which have been removed from the new Act but still have cross-partisan support. So it would, effectively, be a six-week urgent inquiry by whichever committee it was referred to. I’ve left it open for discussion to consider those parts which are important.

Now, this is in the context of my colleague the Hon Rachel Brooking sending a letter to the Minister about seeking a bipartisan solution here, because we all know around this House—and especially after the committee stage debates last night—that there are some things in the legislation which is being repealed which will inevitably need to be brought back in. We’ve already seen that there are provisions which have been saved by this repeal bill, including the fast-track provisions; those are a useful improvement to the 1991 regime. This tabled amendment to clause 5 is about identifying those other parts of the reforms which were recommended by the Randerson review panel that needed to be improved and that have cross-partisan support.

The Minister responsible for RMA Reform also said last night that he may well be back in the chair introducing more legislation which deals with bringing in some of those provisions which are being repealed today. So I think it’s important that we all acknowledge in the primary legislation that there is a place for those select committees to do that work and to find common ground here, because that is the work of our Parliament. It is about finding the common ground and a way through in an area of law that has long been overcomplicated. Both major parties agree that there are too many opportunities under the 1991 Act for long plans that do not get used and do not inform our planning process in a way which is constructive and is quick and is nimble. So we all agree that we need to find a faster way through that also protects our natural resources and our natural environment.

Things like trees were something that the Environment Committee spent a long time on, and there was an eventual coalescence around the views of the committee members who dealt with that issue. Urban trees are something that has long vexed urban planners, and the protection of which, in Auckland at the moment, is a vexed issue. It’s been put entirely on to local councils to determine notified trees. There were something like 600 applications outstanding when I last spoke with the local authority about a tree in my electorate of Manurewa which had not been dealt with, simply because of the capacity issues. That is something that there is a reasonable level of bipartisan support around and is something that the committee should consider if this legislation is referred back to those committees.

I’m not suggesting that this legislation would be referred to a new kind of committee, a bipartisan committee. It is still appropriate for the Government to have a majority on the committee that it would be sent to. It’s useful, though, for experts in the room like my colleague the Hon Rachel Brooking to be able to have the discussion in a forum which is a formal forum that we all know how it works, to hash through some of these ideas.

The three different tabled amendments also include the regulations. Though that is not one of the most substantive pieces of legislation that is being repealed now, it’s also useful for a committee to consider the effect of the secondary legislation being repealed. The Regulations Review Committee will not have the opportunity to consider those regulations because they are being taken off the statute book, but usually there would be a power in this parliamentary cycle for the Regulations Review Committee to consider how those are operating. So this would give a committee the opportunity to do the work that would have usually been expected by that Regulations Review Committee.

These three tabled amendments are separate amendments. I have suggested them because I think there is a different case for sending the Spatial Planning Act back to a committee. Whatever we say about the bipartisanship around the Natural and Built Environment Act (NBA), there is certainly coalescence of views around the need for spatial planning in the long term. That Act is a smaller Act, but it does a very different thing; it allows New Zealand to have a long-term framework around spatial—

CHAIRPERSON (Barbara Kuriger): The member’s time has expired.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Thank you, Madam Chair. It’s good to be back. I thank the member Arena Williams for her constructive amendments. In relation to new clause 5A around the fees and regulations, the Government’s not of a mind to support that. The fees and regulations that have been passed, pursuant to the Natural and Built Environment Act are administrative, to do with forms, fees—

Arena Williams: I’d like to look at them.

Hon CHRIS BISHOP: I’m sure you would like to look at them, but I’m not sure there’d be much point. In relation to the other new clause 5A, which asks a committee of the House of Representatives to conduct an inquiry in 28 days and report back within six weeks, I’m open to a conversation around that. I think the member is being ambitious with the dates, so, depending on progress of the committee this morning, the Act is scheduled to come into force the day after it receives Royal assent, which will be soon—again, depending on progress. So a committee conducting an inquiry within 28 days—let’s do the math. What are we today? The 19th?

Hon Members: The 20th.

Hon CHRIS BISHOP: The 20th. Well, it’s the 19th in parliamentary time. So the 20th—so 28 days is 16 or 18 January. Anyway, the point is I’m not sure a parliamentary select committee is going to sit between—

Arena Williams: I’ll chair it. It’ll be all good.

Hon CHRIS BISHOP: Oh, really? The member is offering?

Arena Williams: Yep.

Hon CHRIS BISHOP: I’m not sure how your whānau feels about that. You might want to text your whānau before you commit to that over the Christmas break. Anyway, the point is I’m not sure there’s going to be an inquiry within a month and then report back within six weeks. That would take us through until March. I think the member’s time frames are unrealistic. However, if the member wants to make a case, or other members—I see the Hon Rachel Brooking is smiling—we’d be prepared to consider something with a longer time frame, because I think the substantive point the member makes is that there are some things from the Natural and Built Environment Act which the Government is wishing to proceed. As I said yesterday during the debate on Part 1, we’re taking advice on some useful and substantive amendments that we wish to advance, and I’m not opposed to the idea of a committee doing a bit of work on that. The Environment Committee is a very hard-working committee, with an excellent chair.

Darleen Tana: Fantastic chair.

Hon CHRIS BISHOP: Oh, a very good chair. That’s great—a bit of bipartisan love breaking out in the Parliament. But if the member would like to withdraw the amendment and have perhaps some more realistic time frames—

Arena Williams: I’ll amend my amendment.

Hon CHRIS BISHOP: —you’re amending it already; that’s good—the Government is open to considering that amendment.

Hon RACHEL BROOKING (Labour—Dunedin): Thank you, Madam Chair. I’ve got a couple of issues I would like to traverse in this contribution with the Minister responsible for RMA Reform, going back to comments that were made in the Chamber last night on Part 2. One of them is around my question around the amendment to section 80A of the Resource Management Act (RMA), and this is the time frame for when councils have to implement the national policy statement on freshwater.

I asked the Minister about what analysis there had been about where councils were at with their progress of that, and the answer was, “Well, we’re going to change the national policy statement; that is the reason for changing the date.”—a paraphrase somewhat there. But then that begs the question about what councils are to do. They have legal requirements, and there are requirements within the RMA to act as effectively and efficiently as possible. There’s a requirement in section 55(2D) of the RMA to put a national policy statement into effect as soon as possible. What are councils to do now that they have had a letter from the Minister saying that it’s going to change, but they don’t know what the change is? And this is very important constitutionally, of course, because, as we all know, Parliament is sovereign, the laws and regulations are those that are on the Table, not ones that the Government intends to make at some future point. If the Minister wants to answer that—or I can go on? I’ll go on.

I am interested in being able to jump back up and down with the Minister, as I think that’s what the committee stage has been designed for. I do appreciate, though, that this Minister has been answering many of our questions. But, of course, there was some sadness last night when there were many questions and many amendments on the Table regarding Part 1, and we did not get to those.

On a different tack, then, you will see in Schedule 2 that there’s a lot of grey highlighted bits, and we can ask questions on all of these. But it may be in the Minister’s interests to go through them and to give some assurance to the committee that these are only technical changes and that there is nothing substantive in them. For instance, there are amendments around Auckland and the spatial planning. I know some members will have some specific questions on different changes. We have not had the time to cross-reference everything to see what these changes mean, because, of course, this is all coming through under urgency—all stages. And there’s a big difference between urgency for different parts of a bill, where you’ve got some time, but this we saw in real time yesterday and in parliamentary time just today.

There’s also questions around—well, last night we had a discussion on a different topic, about the need for reducing plans; I think there was some reference to the Spatial Planning Act. But, of course, it’s the Natural and Built Environment Act that reduces the number of plans from over 100 to 16 regulatory plans. That just seems to be a whole lot more efficient, so how is it that the Minister thinks it’s a good idea to go back to the RMA and the over 100 plans?

I’m also interested in the comments made by the Minister last night about the Spatial Planning Act and the Natural and Built Environment Act, which are both Acts, of course, that are being repealed in Part 2. So it’s our opinion on this side that we can talk about those Acts, and I have some specific questions on them. The Minister was saying that everything that needs to be done in a coherent way—that we have three waters issues going on and there needs to be a structural coherence. Madam Chair, you know that there was a lot of thought that went into the coherence at the select committee stage of both the Finance and Expenditure Committee considering three waters, and the Environment Committee considering these pieces of legislation.

So what is the Minister imagining that there needs to be more coherence for that isn’t already included in that Spatial Planning Act, which already enables central government involvement with the different councils within a region to do that long-term planning and thinking about infrastructure? I do have more contributions but I see the Minister is on his feet.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): I thank the member for her questions and am happy to engage in a dialogue back and forth. I don’t have her level of expertise on the Resource Management Act, but I’ll do my best to answer the questions. I’ll just go through them one by one.

In relation to the extension of the freshwater deadlines, the member asked what councils are meant to do. Councils are meant to follow the law. I am not Rob Muldoon. As I’ve said—

Hon Dr Duncan Webb: Ha! The similarity has not gone unnoticed.

Hon CHRIS BISHOP: Thank you. As I’ve said to Parliament many times, if members come to my office, as she’s very welcome to do, on the way into the office you will find a printed copy of Fitzgerald v Muldoon, the entire judgment, framed, on the way into my office, to remind myself that Parliament is sovereign in this country and Governments can’t suspend the law by press release. We are not purporting to do that. We have given councils an extra three years from 2024 through to 2027 in the development of their freshwater plans. Contemporaneously with that, the Government is advancing work that has started, that is under way now, led by Minister Simmonds, alongside other colleagues, to repeal, replace, and rebalance the National Policy Statement for Freshwater Management 2020. There’s widespread consensus, at least on the Government benches, that the current hierarchy needs to be rebalanced, and so that work will flow in due course. This is just a simple amendment to extend the time frame.

In relation to the other question she had, which was the second question, which was all the bits in grey, as she put it—and she wanted an assurance that these are technical amendments—I’m advised that, yes, they are. They just go through that process of taking the law back to what it was, basically, and the only substantive amendment is the extension of the time frame that we’ve just been talking about.

In relation to her third question about the Spatial Planning Act, well, I think the member answered her question through her own comments, which is—look, reasonable people can agree to disagree about spatial planning but I think everyone would agree that it needs to be done in a structured and coherent way alongside local government and alongside any potential changes around water infrastructure, which the previous Government was advancing and the current Government remains committed to as well, in a different form.

I just think it’s important we get that right, because one of the things we heard during the select committee process from local government was they just had an avalanche of stuff being thrown at them from central government. One of the points many councils made was, well, what is going to be the point of regional councils under the new Natural and Built Environment Act and Spatial Planning Act, because the Government was essentially rendering a lot of their powers and their abilities nugatory—because we were establishing these new regional planning committees—and what would regional councils do? It’s a legitimate question. There were unanswered questions around that.

We are interested in spatial planning, and the member, and other members too, have raised good points around the ability to lower long-term infrastructure costs to better plan our cities and our regions. The member knows I’m very deeply interested in infrastructure planning and housing, and I’d say it’s the biggest problem facing this country, and social planning’s a part of that, but it’s important we do it in a structured and coherent way.

Hon RACHEL BROOKING (Labour—Dunedin): Thank you. So following on from that answer by the Minister—and I thank him for getting to his feet so quickly—can he explain what he means by “Regional councils would have nothing to do under the Spatial Planning Act and the Natural and Built Environment Act”? It’s important to understand that those are two different pieces of legislation. The Spatial Planning Act is one that involves central government and the councils—the regional council, the district councils, the unitary authorities, whatever you want to call them; all the councils. Regional councils, under the Resource Management Act (RMA), under the Natural and Built Environment Act, under the Spatial Planning Act, continue to do what regional councils have done since they were created, and that is their focus on the environment—their focus on water quality and air quality, in particular. That is why it’s so important that we have good water plans, which should be delivered well before 2027, in my opinion.

So I honestly do not know what the Minister means when he says, “Well, what would regional councils be doing?” Regional councils would remain having those functions around air and water quality, biodiversity—there’s hazards, there’s other elements as well—but the fundamental is that they are environmental regulators. Why is that a reason to repeal the Spatial Planning Act, which largely doesn’t have very much to do with the ins and outs of environmental bottom lines? That’s in the Natural and Built Environment Act; that makes little sense. Also, though, again—the Minister said I answered my own question about why spatial planning needs to be done in a coherent way, but this was done in a coherent way; this does enable spatial plans to look at water infrastructure.

So I’m interested in those questions, and then some different questions—and I thank the Minister for his comment on the grey areas as well. Why is it that so many parts of the RMA that have been widely regarded as wildly inefficient are being gone back to, rather than using the provisions that could have been rolled over from the Natural and Built Environment Act or the Spatial—well, the Natural and Built Environment Act in particular, because, obviously, that is the one that directly refers to the RMA?

You can think of the Natural and Built Environment Act as a replacement RMA. The Spatial Planning Act—that is new. The idea of a climate adaptation Act—that is new as well. These are both different functions. The Natural and Built Environment Act is the one that has the regulatory plans under it, where you have to go to get consents. In my mind, you could have the Spatial Planning Act with the RMA—they could still work quite easily. There’s no reason to be repealing the Spatial Planning Act. You could easily—I mean, of course you’d need to do some amendments to it so it referred to different legislation, but obviously the Parliamentary Counsel Office is well versed in this, and I have faith that they could do that very easily.

So I say to the Minister: (1) there is no need to repeal the Spatial Planning Act at all; (2) has there been any consideration of, for instance, not reverting to section 32 of the RMA? Section 32 is a very long analysis process that takes a lot of time. It is normally done after decisions have been made, which is unfortunate, and just adds a whole lot of inefficiency into the process.

Then there’s other changes that were made in the Natural and Built Environment Act, including reducing the number of consent categories, and this was to make the system simpler. At the moment, under the RMA, you have non-complying resource consent categories, and non-complying resource consents have a convoluted test, at section 104D of the RMA, that requires a lot of decision making from the councils that just seems unnecessary if you can already have a plan that specifies what the considerations can be. So I’m seeking an answer on those questions.

ARENA WILLIAMS (Labour—Manurewa): Just as the Minister responsible for RMA Reform is considering his answers, let me take the committee back. I’ve now written an amendment to my amendment that the Minister was considering whether or not to support. Because it’s not on the Table yet, I will just take the committee through it.

My amendment to Part 2—new clause 5A—if amended would read: “Subject to section 5, a committee of the House of Representatives must initiate an inquiry within 90 days of the Act coming into force and report to the House of Representatives within 12 weeks on those parts of the Natural and Built Environment Act 2023 and the Spatial Planning Act 2023 that should be reinstated or given effect in policy.” This amendment now lengthens out the time frames available to the Minister not only to refer it to the committee but also for that committee to report back. It would fold in both of those two pieces of legislation into the committee’s inquiry; however, that wouldn’t prohibit or exclude the Minister from directing the committee to focus on the Spatial Planning Act if that was the Act that it was deemed there was more cross-partisan interest in improving and putting back in some form on to the statute book. I won’t use all of my time discussing that amendment, because there are a number of other amendments—six, actually—that I haven’t spoken to yet.

Let me deal with the fourth; it’s a replacement of clause 6 with an amendment that would, essentially, hold off on the consequential amendments in Part 2 to Te Ture Whenua Maori Act 1993 and Taumata Arowai, the Water Services Regulator Act 2020. The reason for holding off on those, and it’s only suggested in this clause that it would be a nine-month hold-off, is that for Te Ture Whenua Maori Act to be amended—that’s on page 67 of my copy of the amendment bill—it requires a number of amendments to how things like subdivision consents would be considered. The issue that I’m raising here for the committee’s consideration is that, with a nine-month period to consider how the Act that is being repealed—the Natural and Build Environment hierarchy of how concepts in Te Ao Māori should be taken into account—when in Te Ture Whenua Maori Act you’re giving effect to the powers of communal owners, and going back to the 1991 provisions should be taken into account, because they’re not the same; they create a different kind of hierarchy.

In the 1991 Act, we have a hierarchy where kaitiakitanga is meant to be given effect in those decisions. In the new Natural and Built Environment Act, we have a new way of giving effect to those values that are important to Te Ao Māori, with concepts like Te Mana o te Wai. Now, whatever you think about those considerations, on any side of the House, they are different, but we’re requiring an immediate whiplash in decisions that are made under Te Ture Whenua Maori Act to go back to the 1991 system that have been being made under the new provisions—particularly things like subdivision consents and the powers under Te Ture Whenua Maori Act for communal Māori land owners to move their land from general freehold land to reserves, or what are called whenua tōpū; these trust ownership models that own what was freehold land now in a trust environment where they do not pay rates and they are held in reserve for the good of not only the owners but also of the wider public.

That’s a move that you can see in other kinds of corporate law as going from privately held assets to publicly held ones, which is like a move to a charity. When you give consideration to that kind of decision which is given power by Te Ture Whenua Maori Act, you have a situation where people are doing something which is generally for the public good, and we allow them those powers that are different from any other situation where, say, directors of a company move to a charitable context, because we think that there is good for the public but there is also good for kaitiakitanga and for those values. But the values are different here. The new legislation proposes a different sort of values system that the decision makers, which may be the Māori Land Court or it may be those owners who hold it in trust for the good of their descendants, should take into account.

So those decisions will be different. We need some time to work through how those decisions are different, and I want the Minister to consider giving nine months to be able to consider how the hierarchy is different, given that a number of these decisions will be in train within the Māori Land Court setting and within trust boardrooms around the country right now. Giving it more time will allow us to make sure that those decisions are done in a way which gives effect to the law as it is proposed by the Minister.

Hon PEENI HENARE (Labour): Thank you, Madam Chair. I thought that contribution from my colleague Arena Williams was outstanding, and it’s in that vein where we are coming up to this anomaly when we look towards the repeal bill here. I want to bring the Minister responsible for RMA Reform’s attention to the amendments to the Marine and Coastal Area (Takutai Moana) Act 2011.

Ngāti Apa took a claim to the Waitangi Tribunal and actually ended up in the High Court, where the High Court decided the customary rights of Ngāti Apa in Te Tau Ihu o te Waka. The rest is history, really—that sparked the foreshore hikoi, and what it did was it forced the Government of the day to look towards bits of legislation that allowed tribes to have the ability to apply for customary rights through the courts. Actually, it was our former colleague the Hon Christopher Finlayson who I thought did a very inspired job there to tidy up something to allow Māori the avenue towards application for customary rights on Takutai Moana.

My question to the Minister: in repealing the coastal permit—and it’s slightly in the vein of my colleague Arena Williams—what we’re effectively doing here is reverting the coastal permit laws back to 1991, which gave rise to the Ngāti Apa claim which ended up in the High Court and forced the High Court decision which led to the foreshore and seabed and, ultimately, the Marine and Coastal Area (Takutai Moana) Act. So that’s the first question: in doing so, are we diluting Māori’s ability to be able to take these particular claims of coastal permit into the legal realm, to apply for customary title?

The second question, just very quickly, is with respect to the customary title right, for those under the Marine and Coastal Area (Takutai Moana) Act 2011, there have been quite a large number of iwi who are already involved in a process to try and achieve a customary title right. I’m curious if the Minister knows what will happen with those cases. We know—and I may be corrected by some of the members in the House here—that there’s only been one application that’s got across the line that resulted in the Ngā Hapū o Ngāti Porou legislation. But there are no less than seven others who are already going through this particular process, and whether or not this repeal of the definition of “coastal permit” will affect those particular members or tribes who are pushing through their coastal claim. I think these are important questions. I know, as I said already, Mr Finlayson, I thought, through legal instruments, actually provided a really good way of getting through the customary title argument and debate on the Marine and Coastal Area (Takutai Moana) Act. So I’d really like to hear from the Minister on those matters.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Thank you, Madam Chair. I agree with the member who resumed his seat, the Hon Peeni Henare, around the elegant solution that Parliament came to with the Marine and Coastal Area (Takutai Moana) Act. Although, as the member will be aware, we do have concerns around one of the more recent judgments in relation to that Act. Parliament has made its intention clear and it’s not clear to us that the courts are taking the right approach to it. But in a general sense, I accept the member’s point.

This repeal bill has nothing to do with that. So any existing claims that are before the courts or going through the process remain so; they will work their way through the process. The Ngāti Apa decision of the Court of Appeal in 2003—I respect the member’s knowledge of the matter, but that’s not going to happen, so I wouldn’t be too worried about that. All it does, as I’ve said many times, is take out the last three months and go back to what we had under the 1991 Act. There is no intention to upturn or overturn any existing processes or settlements or anything like that.

That also, I think, deals with Ms Williams’ point around changes to Te Ture Whenua Maori Act. Again, in the sense that changes around that that were seen as an advancement are being undone: yes, that is true—reasonable people can disagree or agree on that. But we are just going back to what the law was up until three months ago. So that’s the easiest way to think about the bill. Parliament is essentially rejecting the changes made just three or four months ago.

In relation to her select committee referral motion, which she’s had another go at, I see she’s moderated her demands—demand’s probably a bit strong—moderated her inquiry request a little bit; 90 days. The House must conduct an inquiry within 90 days.

Hon Kieran McAnulty: It’s a 90-day trial.

Hon CHRIS BISHOP: Ha, ha! Yep, yep. Well, 28 days of that time, people will be at the beach; cute Mr McAnulty will be playing cricket and Ms Williams will be at those beautiful North Shore beaches. So I think that might be a little bit ambitious. I am prepared to consider it.

The other option, of course, is that Ministers or the Government write to a parliamentary select committee and ask them to do a short, sharp, targeted piece of work around what bits of the Natural and Built Environment Act (NBA) the Government may wish to advance. Because, as I have said to the House previously, it’s inevitable that we will keep some of the more sensible technical amendments in relation to the Resource Management Act (RMA). Because, although it’s sort of been advertised that the NBA repeals the RMA, it doesn’t—actually, David Parker is partly to blame for that, because David Parker stood up in Parliament on many occasions and said, “We’re repealing the RMA; National’s opposed to it,” and, actually, it doesn’t. The RMA continues in its existence for quite some time.

Hon Kieran McAnulty: You’ve been waiting a long time to make that point, haven’t you?

Hon CHRIS BISHOP: What was that?

Hon Kieran McAnulty: You’ve been waiting a long time to make that point.

Arena Williams: Yeah, which is why we don’t need to be here today.

Hon CHRIS BISHOP: Yeah, well, we could finish up right now, vote, and get out of here. But, you know, it’s entirely over to you guys.

Arena Williams: No, you remove it.

Hon CHRIS BISHOP: I’m happy to keep answering your questions. So that deals with that issue.

Just going back to what Rachel Brooking said in relation to the Spatial Planning Act, the member’s very exercised about why the Government’s keen to get rid of this. I think I’ve given a few reasons already, which is that we want a structurally coherent way around spatial planning. The other bit is that it is not possible to unpick the changes made through the Spatial Planning Act (SPA) from the NBA. So, for example, clause 5 of the SPA inserts a strengthened Treaty clause around giving effect to the Treaty. Our preference is for “have regard to” the Treaty, as is in the current RMA. Clause 6 contains the language around te Oranga o te Taiao, which we’ve canvassed in Part 1 and the first and second reading. The SPA purpose clause makes it clear that the purpose of the SPA is to uphold commitments made through the NBA. So, yes, they’re separate Acts, but they’re clearly interlinked and it’s impossible to unpick them.

The other thing, of course, is that the SPA—and the NBA, for that matter—kicks off a 10-year transition time frame. The Government’s taken the view that rather than councils and decision makers starting to apply the law and get started on it, we’ve taken a decision that it’s best to get it off the statute books—[Bell rung] Madam Chair, I’ll just answer this briefly.

CHAIRPERSON (Barbara Kuriger): The Hon Chris Bishop.

Hon CHRIS BISHOP: I’ll just take a couple more seconds. We’ve taken the view that it’s best to get it off the statute books so that everyone has certainty. I actually think we’re doing everyone a favour. It’s no longer going to be the law if Parliament passes it.

The other point I would make is something that I don’t think I’ve mentioned before, which is that I’ve decided to retain the Spatial Planning Board, which is not actually set up through the NBA or SPA; it’s set up through the Public Service Act. I have decided to retain the Spatial Planning Board while we work out our own approach to spatial planning. But the idea of getting agencies together into a room—as the member knows from her time as a Minister—is very, very useful. So the Spatial Planning Board will continue, and in due course we will work out exactly what the Government’s approach to spatial planning is.

Hon KIERAN McANULTY (Labour): Thank you very much, Madam Chair. I’m pleased to have the opportunity to make my first call in this contribution. It will be, I hope, one of many. There was an instance last night where, in raising a point of order, the presiding officer conceded that there were relevant spokespeople on this side of the Chamber that didn’t get an opportunity to speak. The presiding officer said that was a fair point. So just registering now that there is, through my portfolios of local government, housing, and, to some degree, regional development, a desire to touch on those.

There is also a desire from the finance spokesperson to speak to this Part. However, the Opposition showed, I think, the sort of collegiality that we expect in Parliament at Business Committee last night, and agreed to allow the Government to release their financial details today, which wouldn’t normally occur under urgency. But because we were quite happy to agree to that, he is now working on that. So just registering our desire for him to contribute as well.

The reason I’ve said that is because last night we also got an assurance from the presiding officer that now that we’re in Part 2, we can speak specifically to the parts of the Acts that are being proposed to be repealed. Specifically, within the Spatial Planning Act 2023, there is clear reference to the Water Services Entities Act 2022. So the first question that I have in regards to the local government portfolio and the proposal to repeal the Spatial Planning Act is: how does that then align with what is currently in the Act around the Water Services Entities Act? Because we do know it is the Government’s intention to repeal that also, but that hasn’t happened. We don’t know when that will happen, and we don’t know details about that. So, in repealing the Spatial Planning Act, that then puts local authorities in difficult positions when it comes to water services. We know what the intention is, but we also know another provision will be put in place. We don’t know the details yet, and I don’t intend to ask that today. I don’t think that will be relevant. But what is relevant is what local councils do in the interim.

We do know that local councils as a whole made it very clear that they were unable to do what was expected of them in their local areas under the old Resource Management Act situation. But by repealing this, we go back to that. What is different, however, is that we have, currently anyway, a situation where councils are preparing for the establishment of water entities, and, in the case of Northland and Auckland, that is very well advanced. So what happens to those councils in the interim, when they are put back to the old planning structure, whilst also being required, for the time being, to prepare for the establishment of water entities? We know that councils are in a dire financial situation. We recognise that they have indicated concern about how their financial situation could get more difficult if this is put back. In the context of water services, I think it is important and relevant to get an understanding of the Minister’s thinking.

LAN PHAM (Green): Thank you, Madam Chair. I’d like to pick up, specifically, on the aspect of the bill that seeks to extend the deadline for regional councils to notify plans. As was so accurately pointed out by 50 freshwater experts and leaders in their letter to the Prime Minister just on Monday, the health of the country’s waterways are already under immense pressure, and I’m sure the Minister responsible for RMA Reform is aware of that. In light of this, I’ve tabled an amendment that specifically deletes section 80A from Schedule 2 of the bill, which seeks to extend the deadline of regional councils to notify plans. Currently, it’s at 31 December 2024, but the proposal that the Government have on the table is to extend that to December 2027.

Just for some context as to why I’ve put down this amendment—and I really invite the Minister to respond to this—before entering politics, I worked as a freshwater ecologist, and it would be remiss of me not to highlight the issue to members of this committee, who may not be aware of the current state of freshwater in this country, which would be directly impacted by the proposed section. I just want to paint a really brief snapshot of that, from our latest freshwater report that the Ministry for the Environment put out. That’s things like the fact that 76 percent of our native freshwater fish are endangered; over 40 percent, and specifically 46 percent, of our lakes are in poor or very poor health; and ecosystem health—and this relates to both the freshwater invertebrates or the bugs that live in our freshwater environments—56 percent of freshwater sites are worsening; and E. coli contamination is worsening at 41 percent of freshwater sites.

Through my time, again, before entering this House, I was a councillor for two terms on Environment Canterbury and I heard just the surface of the immeasurable losses that ngā rūnanga and whānau of Ngāi Tahu suffered as mana whenua, particularly hearing from those across Waitaha Canterbury but also the wider Te Waipounamu area. I also heard a lot about the heartbreak of tangata Tiriti or non-Māori communities who have experienced the damage and degradation of their local freshwater ways, just over the last few decades. For these people, they have had over a decade of community processes—planning processes—without national direction that upholds ecological integrity and Te Mana o te Wai. Ultimately, when it comes to environmental outcomes, this has simply resulted in a lot of talking, a lot of money spent, but, ultimately, ongoing environmental decline.

So I would really like to hear from the Minister how he would justify his Government’s proposed delay of another three years of this deadline for regional councils, for communities who really want to see this timely, measurable improvement in their freshwater environment and see Te Mana o te Wai enacted in their local areas. I really want to encourage the Minister to consider this amendment that would actually keep freshwater improvement back on track like his Government intends.

CHAIRPERSON (Barbara Kuriger): Just before I take the next call, I just want to let the committee know that I’m just waiting for some work that’s being done, so I’m not intending to take some closure motions at this point because we’re having a bit of a constructive debate going on here.

ARENA WILLIAMS (Labour—Manurewa): Thank you, Madam Chair. I have five questions about my Amendment Paper 9 for the Minister responsible for RMA Reform. I hope we can have a back and forth discussion about these questions, and I will be very quick on my feet.

The first two questions about Amendment Paper 9, which is to delete all amendments to the Urban Development Act 2020—that’s in Part 2, on page 68. These are about the Treaty of Waitangi clause that has changed, and there are a number of Treaty of Waitangi clauses in the consequential amendments that do change, but it would be helpful to just examine this one amendment here so that the House can get some comfort about all of those Treaty of Waitangi amendments. I hope we can use this as an exemplar.

My first question to the Minister is: does the amendment that he proposes create a hierarchy where the purpose of the Urban Development Act subordinates the Treaty of Waitangi principles? My question here is because the amendment that the Minister is proposing inserts the words first “in achieving the purpose of this Act”, which is new as compared to the Urban Development Act, where it simply says all persons performing a function under this Act. So there’s a first reference there to the purpose of the Urban Development Act, and I want to know whether the amendment that he proposes creates a hierarchy whereby the purpose of the Act comes first in the decision maker’s mind, and then the effect of the Treaty principles comes in next.

As he’s considering that, I will ask my second question, which is about the practical effect of the change that he is proposing, and bear in mind that this is a change all throughout the section; it’s not just about the Urban Development Act. So, this is a major change. The second question to the Minister is: is he aware of any incidences where this provision has had a practical effect, in this circumstance in Kāinga Ora’s decision making, but in the context of other Government decision making? So what I’m asking here is: is there any incidence where, after the change was made in 2022-23 where decision makers were not subject to a hierarchy, where they were considering the purpose of an Act first before considering the principles of Te Tiriti o Waitangi, is the Minister aware of any incidences where they made a different sort of decision or any incidences where their policy or procedures were impacted because they had to give effect to the principles of Te Tiriti o Waitangi first before considering the purposes of the Act? Those are two questions of five.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): I can answer this very simply: the change made through the Natural and Built Environment Act (NBA) strengthened the Treaty provision of the Urban Development Act. The change we are making through this bill goes back to what the law was prior to the passage of the NBA. As I have said multiple times now, it is actually quite a simple piece of legislation, notwithstanding the saving of the fast track. We are going back to what the law was—with some exceptions—prior to the passage of the NBA. So, in answer to the member’s second question about practical effect, there is, essentially, no practical effect. Nothing has happened in the last three months because of the changed Treaty provision in the Urban Development Act.

ARENA WILLIAMS (Labour—Manurewa): Thank you, Madam Chair. I appreciate the opportunity to ask my next questions in light of the Minister responsible for RMA Reform’s answer that there is no practical effect. My suggestion here is that the House should certainly consider my Amendment Paper 9 to delete all amendments to the Urban Development Act 2020 in light of that answer, given that there is no practical effect. The symbolic nature of the change that happened in 2023 is important for the way that the public servants can conduct their affairs. It is simpler for the public servants to have one indication, not this couched, hierarchical way of considering their decisions. It cuts down the litigation risk because it means that the policy decisions made at a Kāinga Ora level are easier and more straightforward.

But, given that, I want to ask my third and fourth and fifth questions to the Minister. In the context of the Urban Development Act, is the urban development purpose of the Act at odds with the principles of Te Tiriti o Waitangi? Is there any balancing there that is being required by the new wording that the Minister proposes?

My fourth question is: does the difference between the new amendment words which are “take into account the principles”, and the old wording, which was “give effect to the principles”—in the Minister’s mind, is there a difference in those two things? Would he expect, as the Minister responsible for Kāinga Ora, for decision makers within Kāinga Ora to treat those two things differently? He said that there is no practical difference. I want him to clarify for the House, then, what the difference is between those words: “take into account the principles of Te Tiriti o Waitangi”, which is the new amendment that he proposes, and the old words, “give effect to the principles of Te Tiriti o Waitangi”, which is what this side of the House would prefer.

The fifth question is that—if, in fact, there is a difference, then this provision does not belong in the consequential amendments. This House will get itself into trouble if we make this kind of decision in a consequential amendment to Part 2 of an amendment bill which is buried on page 68. Because if there is a difference to the way that decision makers give effect to Te Tiriti o Waitangi, which is a part of our constitutional law in New Zealand, then it should not be a consequential amendment.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): As I’ve said about five times now, we are going back to what the law was—it’s as simple as that. I know the member’s trying to create something that isn’t there. It’s really quite simple: the Act used to say “take into account”—

Arena Williams: Dean’s going to tweet about you.

Hon CHRIS BISHOP: Well, I mean, he tweets a lot about me. But, you know—good luck to him. So the member is really grasping at straws.

MARK CAMERON (ACT): Thank you, Madam Chair, and thank you to the Minister responsible for RMA Reform for giving me but a moment of his time. Suffice it to say, there’s a few issues in the freshwater space, and I know the Hon Rachel Brooking alluded to it earlier on. I’m cognisant of the settings in and around the national policy statement (NPS) for 2020, and what he expects the councils to do in the interim—if he could give some clarity for those that may have tuned in—prior to the extension that he alluded to. I’m sure he’s got some offerings and words he might want to share with the committee for certainty.

STEVE ABEL (Green): Thank you, Madam Chair, and I appreciate the opportunity to have this robust conversation about this, because this is a substantial change. The Minister responsible for RMA Reform refers to it just going back to three months ago, but, of course, what we have achieved in long-fought struggles to achieve environmental outcomes have taken years.

One of those struggles has been the return of general tree protection. Now, if you want to take it back to the 1990s, in fact, we had general tree protection in the original version of the Resource Management Act (RMA). We had it there. So that is one instance where the RMA was better than what we’ve had since the amendments were made in 2009 and 2012 to the RMA. Up until three months ago, we had no general tree protection, and then we got it back. We’re not just going back three months; we’re going back over 10 years, to 2009.

Hon Dr Duncan Webb: Great leaps backwards.

STEVE ABEL: These big steps backwards in that environmental space, that ecological space, as my colleague Lan Pham talks about in terms of the water space—these are things that people in the community have argued for and fought for, for many, many years, to finally get them recognised in the legislative frameworks that protect the collective commons, which is our environment.

I want to speak to a very specific amendment regarding general tree protection. It’s an amendment to Part 4 of Schedule 2, after the amendment to section 58H, at page 105, after line 6. We want to bring back the right of councils to protect trees. This was brought back in the Natural and Built Environment Act. It was in the original Resource Management Act 1991. If you want to take it back to the 1990s, bring back this as well.

I feel that in my town where I come from—in Auckland—there is a heartbreak on a weekly basis. When people go to work and the tree that they pass at the end of their street that’s been there for a hundred years—they come back from work and it’s gone, and there’s no by or leave, there’s no say, and there’s no input from the community on it. I was part of a campaign in Avondale to save a magnificent arboretum of native trees at Canal Road. The community spent 245 days trying to save that stand and it is gone, and that is the consequence of us not having general tree protection.

I took great heart from the select committee this year that you were sitting on, Mr Bishop, and in your comments at that select committee, and this is why I am hopeful that you will support this amendment. You said—and I paraphrase—“I am fast coming to the view that we need some sort of general tree protection in this country, not just for livable cities and for the climate”, and you are absolutely correct about that. For us to have livable cities, trees provide extraordinary amenity. They absorb moisture, they hold the land together, they provide urban cooling—they’re like magnificent outdoor air-conditioning units. I invite you this summer to sit under a big tree and find out just how incredible their services are. They sequester carbon. They take carbon dioxide out of the atmosphere and turn it into wood. It’s not magic; it’s real—it’s called nature.

They do incredible things in our cities and they make our cities more livable. They make density done well a good thing, when you retain those mature trees. If you allow those trees to have no status and no protection, they will be gone, and that is what we’ve seen. We’ve seen a third of our urban ngahere lost in the last decade in Tāmaki-makau-rau Auckland, and it’s awful for Aucklanders. It’s magnificent to come here to Wellington and see how you’ve got this incredible green belt still intact. It needs a legal status, it needs protection, and I urge you to seriously consider this amendment.

This is a very reasonable thing that most people across our community agree we need. We need general tree protection. Thank you.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Thank you, Madam Chair. Let me deal with a few of the questions. Just on the freshwater stuff in the questions asked by Ms Pham and also Mark Cameron, the Government has made its position clear on that: we are extending the deadline for notification of council instruments through to 2027. That allows enough time for the Government to go through the process of repeal, replace, and rebalance, and there’ll be further information to come about that in due course. It’ll be led by the Hon Penny Simmonds, the Hon Andrew Hoggard, and the Hon Todd McClay—

Chlöe Swarbrick: What are you balancing towards, Bish?

Hon CHRIS BISHOP: —to work through that process. Well, we’re rebalancing, and you will have to wait and see. All Christmases don’t come at once, Ms Swarbrick—you’ll just have to wait.

On the issue of water services, just to deal with Mr McAnulty’s point from, I think, a few minutes ago, this bill doesn’t really have anything to do with it, to be honest.

Hon Kieran McAnulty: I disagree.

Hon CHRIS BISHOP: Well, OK, you feel free. But the Government is working through a process around three waters reform, which is being led by Simeon Brown, the Minister of Local Government, and we are going through a process which the Minister will talk more about in due course. But the Government’s policy position is very clear, which is: council ownership, council control, and remove mandatory co-governance provisions. But it is important that we fix the water infrastructure crisis that is afflicting our councils and our communities. We’ve got to go through a proper process to get that right and repeal three waters. Simeon Brown will have more to say about that in due course.

In relation to Mr Abel’s point about urban tree protection, it’s good to see you picked up on my comments to the select committee from a few months ago. We’re not going to support his amendment, but I am happy to have a conversation around how we can do better as a country with doing density—and our cities are going to become more dense in the future. It’s an inevitable by-product of urbanisation and the growing population, and—

Scott Willis: The conversation is nice, but a rule is good.

Hon CHRIS BISHOP: Yeah, well, you know—all good things take time, Mr Willis. [Interruption] Well, if you’d just listen to me, I’m saying—

Hon Member: You’re delaying it another three years.

Hon CHRIS BISHOP: Well, I’m happy to have the conversation around it. We’re not going to support the amendment, but I think there is a balance to be struck around how you can do better density and get more trees in our cities to encourage denser living but, at the same time, balance that against property rights, because, by definition, urban tree protection that protects trees on private property has an impact on people’s land but also the way in which we plan our cities.

So I’m happy to have a conversation about it. I take the member’s point, but we won’t be accepting the amendment.

Hon BARBARA EDMONDS (Labour—Mana): Thank you, Madam Chair. The difficulty with not having a select committee process and this bill going through under urgency is that the committee has to put a lot of trust in the drafters of this bill and the proof-checking of the bill to ensure that it meets the policy intent of the Government of the day.

I have only in the last hour been able to go through Part 1 of Schedule 2, through the Airport Authorities Act, the Aquaculture Reform (Repeals and Transitional Provisions) Act—these are all the consequential amendments as a result of this bill—the Auckland Improvement Trust Act, the Biosecurity Act. Now, I had to stop at the Biosecurity Act because this is where I think there has been an omission, and I want to get a clarification from the Minister responsible for RMA Reform that it is an intentional omission from this bill. So under the heading “Biosecurity Act” it states, “In section 7A(1) and (4), replace “Part 2 of the Natural and Built Environment Act 2023” with “Part 3 of the Resource Management Act 1991” in each place.”

So if you look at Part 2 of the Natural and Built Environment Act, you see that Part 2 is in relation to the duties, responsibilities, and the restrictions in that particular Act, which this bill is repealing. Section 17 of the Act, which this bill is repealing, has a requirement around environmental responsibility, and, again, I tie this back to the Biosecurity Act, and that has the purpose of protecting New Zealand’s borders from biosecurity threats—it’s really serious stuff. It has serious penalties, and for anybody who’s in the primary industries or has an interest in the primary industries in New Zealand, it’s really important that this is made really clear.

So Part 2 of the Natural and Built Environment Act has section 17, “Environmental responsibility”. It states, “(1) Consistently with the ethic of stewardship, every person has a responsibility to protect and sustain the health and well-being of the natural environment for the benefit of both present and future generations, including as required by section 18

So after a bill is passed, officials will provide some guidance to the rest of the country as to how you interpret the law. Under that guidance that’s been provided by the Ministry for the Environment, it says that clearly this is a new duty and responsibility. It says the purpose must be achieved in ways that first and foremost protect the health of the natural environment.

The second thing that’s most important about it is that it futureproofs it. It futureproofs the environmental responsibility so that, basically, the decision makers of today have to ensure that they take into account how they can futureproof the protection—again, I go back to the Biosecurity Act—of the biosecurity of the country. So, basically, when you make decisions, take into account the duties and responsibilities in those provisions.

My concern is that by replacing this just squarely with Part 3 of the RMA, there is no duty and responsibility because that is within the Natural and Built Environment Act. So I’m just wanting to make really clear: is it the Minister’s intention that there is no longer this very specific duty, which is set out in the Natural and Built Environment Act, “Consistently with the ethic of stewardship, every person has a responsibility to protect and sustain the health and well-being of the natural environment for the benefit of both present and future generations, including as required by section 18.”?

So I just want to ask the Minister that. Because he is transferring this straight from Part 2 and going straight to Part 3, is it an intentional omission not to have that environmental responsibility duty on decision makers?

Hon CHRIS BISHOP (Minister responsible for RMA Reform): As I have said about eight, nine, maybe 10 times now, we are going back to the Resource Management Act 1991—it’s pretty simple.

CHAIRPERSON (Greg O’Connor): Just before I take—I’ve been watching this debate carefully for the last hour; I’m aware that most, in fact all of the amendments have been spoken to by those proposing the amendments. Also conscious that we are, sort of, even when we are speaking to amendments, while we allow some context, it can’t turn into a general debate speech. So it will now be getting to the stage where we will be looking for fairly specific ideas and questions on this.

HELEN WHITE (Labour—Mt Albert): Thank you, Mr Chair. Minister Bishop, congratulations on your role. First of all, I’d like to add to the comments of my friend Steve Abel, who talked about tree protection, and I’d like to ask—I saw a little glimmer of hope there that you had some sympathy with this issue—is there an amendment we could put up on tree protection that might bridge the gap here? Because this is an issue that’s really significant out there at the moment, and every time we delay it, trees get cut down.

My other request is that you tell us what kind of economic analysis has been done of the delay itself, because my understanding is there was an analysis done by the Ministry for the Environment which looked at this whole scheme which we are repealing in Part 2—all of the Acts—and it looked at the cost and the benefit of the new regime versus the old one. My understanding is that we were looking at, over 30 years, the system was expected to deliver $2.58 and $4.90 in benefits for every dollar spent—between those numbers—and that it was a 19 percent reduction in costs associated with it, or $150 million a year.

So we are, effectively, as I understand it—and I’d like to know if you agree—losing $150 million a year as we delay this process, even if the scheme that you develop is in some ways better. So I’d like to know, has that analysis been done? I appreciate that you have carved out one part of it, which is your fast-tracking process, and I wondered what has been attributed in terms of value to that part of it, because I do know that the Government has committed to cost-benefit analysis in this area.

I also wondered what role the Minister for Regulation will have in the reshaping of this, given that you are getting rid of this whole scheme of Acts that’s been very laboriously considered by submitters. I was listening to you yesterday, in the answers to one of the questions, talk about how submitters had made certain criticisms and that you had taken them on board in your decision. But one of the things that I noted was that those submitters had been listened to and the eventual shape after the select committee process had actually reflected a lot of the criticism. So this had been quite a—yeah, I’d be very keen—I can see you nodding your head. I’d be very keen to know how you respond to that.

Do you think that there was something that wasn’t listened to in that submission process that was of particular concern to you that means that you are now repealing what is a scheme that would save the country over $150 million per year, on the estimates of the Ministry for the Environment, and have you looked at that issue? Because it does seem that, even on your own account, Minister, you are throwing the baby out with the bathwater here, and that we are going to, in a time of cost of living crisis, cost people a lot of real hard money. I’m concerned that the kind of cost that we’re talking about is adding particularly to the cost of housing in an area like Mount Albert, and that we have schemes under way in that area that will be subject to this change, and that actually might be complicated.

My last question to you is the value of certainty, because I’ve been concerned by the signals that we’ve been sending out there that every time a Government changes, everything gets chucked out and replaced by things very quickly, and that that is actually destabilising people’s capacity to invest in some things that we need long term: infrastructure and particularly housing, which I know we’re concerned about. So I wondered if you could give me a comment on your weighing up of the issue of really undermining the certainty we need to get for investors in areas like housing.

Finally, Minister, I have recently been talking to somebody who’s a developer, who develops around—[Time expired]

CHAIRPERSON (Greg O’Connor): Catherine Wedd. Did I get the wrong—Katie Nimon, sorry.

Hon Chris Bishop: Am I allowed to say something?

CHAIRPERSON (Greg O’Connor): Oh, sorry. The honourable Minister.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Can I answer the member’s question. Sorry to colleagues across the Chamber, I just thought I’d deal with Helen White’s questions. It’s meant to be a back and forth.

So, lots to that. Let me deal with them with some conciseness. Firstly, to answer the question honestly, no, there’s not an amendment you could put up around urban trees that we would consider. As I’ve said to your friend Steve Abel, the Government’s interested in that issue. We’ll have a look at it in due course. Happy to have conversations around that.

In relation to the economic analysis, we don’t accept the economic cost-benefit analysis that was done by the previous Government. We do not accept the idea that it would save money. In fact, I think the opposite is the case, to be honest.

In relation to the third question around the role of the Minister for Regulation, well, he’s a member of the Cabinet—a very senior one. He will play a role in that, and the future role as to how the Minister for Regulation may interface with the new Resource Management Act (RMA) reform process that I’ll be leading as Minister Responsible for RMA Reform is yet to be determined. No doubt the member will find out in due course.

In relation to the other comments she made, I think her comment about throwing the baby out with the bath water is, essentially, emblematic of a recurrent theme from members opposite, which is that because a lot of time and money was spent on this, we should just charge on ahead, and it’s the classic sunk cost fallacy. I accept a lot of time and money’s been spent on it. That’s regrettable. But if something is going to lead to worse outcomes for both the environment and the construction of infrastructure and agriculture—

Hon Rachel Brooking: Which it won’t.

Hon CHRIS BISHOP: Yeah, well, I know you say that, but we have a different view. This is the debate, right? So, you know, welcome to Parliament. If something is not going to lead to the outcomes you want, then you’ve got to throw it out, and, by definition, repealing it is a progressive and sensible way forward.

In relation to the member’s final point about certainty, yep, there’s a value in certainty, and her colleague the Hon Rachel Brooking has written to me around trying to get some sort of bipartisanship when it comes to planning. I mean, I don’t want to get too political about it, because this is a committee stage debate and we’ll go through part by part, but the National, now Government, has been up for RMA reform for a long time. We could never assemble a parliamentary majority in the period between 2008 and 2017, largely because every attempt to assemble a majority was rebuffed by the Labour Opposition at the time, who said that every change proposed to the RMA, including around making renewable energy more available and things like that—the Labour Opposition at the time, and I accept the member who asked the question wasn’t around at the time—every attempt was met with cries of “You guys just want to destroy the environment, you’re environmental vandals, blah, blah, blah.” No doubt there’ll be a lot more of that over the next few years. So that’s the history.

Then, when the Government changed in 2017, the outgoing last Labour Government parked the issue up for a few years while the Randerson report was under way. Judith Collins—

Hon Member: Well, that’s not called parking up.

Hon CHRIS BISHOP: Well, OK. Judith Collins wrote to David Parker and offered the National Party’s support for a bipartisan reform effort. David Parker never even wrote back to her. I’ll write back to Rachel Brooking, but David Parker didn’t even bother.

So, yep, I mean, we can go back and forth about this. Is there a value in certainty? Yes, there is. But I’ll tell you what there is a greater value in, and that’s not doing dumb law, and that’s what this is, because it would make it harder to get things done and harder to protect the environment, and it does not make things simpler. Members keep saying, “Oh, it’s a simplification.” The Acts that we are repealing are just as long as the RMA that preceded it—900 pages—and in particular, in relation to uncertainty, it introduces entirely new legal concepts that everyone will have to grapple with over the next decade. That reduces the value of certainty.

The RMA has many critics. I am one of them. But at least with the RMA there is well-established case law and jurisprudence around how section 6 and 7 interact, around the Treaty clause in the Act, around what the purpose of the Act is. So at least there is a value in the case law, and we’ve had 30 years of jurisprudence under it. That exists. That is not something to be easily done away with to go to an amorphous and ambiguous new legal regime, which, people to the select committee made clear when they turned up, will lead to endless litigation and cost that gets passed on to infrastructure consumers.

KATIE NIMON (National—Napier): I move, That debate on this question now close.

Hon KIERAN McANULTY (Labour): Thank you very much, Mr Chair. I’ve been reflecting on the answers that the Minister responsible for RMA Reform has been giving to the varied and wide-ranging questions that my colleagues have been putting forward, and I’m not sure it is satisfactory for the Minister to respond by simply saying, “the intent of the bill”. We know the intent of the bill. It is quite clear; it is in the title. But there have been some considered contributions from my colleagues here wanting to know specific things that have not been answered. It certainly doesn’t wash when parts are being kept, and if some parts are being kept, then surely the Government should be open to proposals to keep other parts, especially if it is going to improve the Resource Management Act 1991, which we no doubt will eventually get to.

I’ll give the Chamber an example. This bill proposes, under the Local Government Official Information and Meetings Amendment Act 2023, in section 4, providing a new definition of “natural hazard”, going from the definition that is provided in the Natural and Built Environment Act 2023, to the Resource Management Act 1991.

Now, we get what is intended to happen here. We understand that the Government wants to go back to the Resource Management Act 1991. I get it. Everyone gets that. There’s no need to provide that rationale as an answer to a question. But, when we consider that the definition of a “natural hazard” in the Resource Management Act 1991 is: “any atmospheric or earth or water related occurrence”—and then it gives examples—“the action of which adversely affects or may adversely affect human life”, the definition of “natural hazard” in the Natural and Built Environment Act 2023 specifically includes the effects of climate change on any of those occurrences. That is crucially important to the understanding of a natural hazard.

Now local government, which is the perspective that I am speaking from now—one of the major issues that they are facing is how to deal with natural hazards. If we are moving back from this to the Resource Management Act 1991, with the clear definition of “natural hazard” that doesn’t include climate change, local government will be working within criteria that is no longer relevant.

Presumably, that is the definition that was provided in 1991. Things have changed. We only need to look back in the last 12 months to see the impact of natural hazards that has happened in the local government sphere. We think back to the Nelson and Marlborough floods, and what those councils have had to deal with in terms of the re-build there. We think back to the Auckland floods and Cyclone Gabrielle. It is clear in anyone’s mind that climate change was a massive driving factor for those unprecedented events. If we are then going to bring in a planning regime that doesn’t take into account climate change in the definition of “natural hazards”, I believe that could hamstring local governments and their ability to build back.

This is a genuine point, one that I make in good faith, and I just simply do not understand why the Government wouldn’t consider maintaining the exact same definition of a “natural hazard” as is outlined in the Natural and Build Environment Act 2023. They can still achieve what they want to achieve, they can still get back to the Resource Management Act 1991, but we can have a definition of “natural hazard” that is actually up to date and relevant for 2023. The reason I propose this is, further on down, the Government is proposing to include a whole new section in section A.

It is quite clear that they are open to leaving some things as they currently sit or improving them compared to what they were. I think the committee deserves an answer as to why the Government is proposing to go back to a decades-old definition of “natural hazard” instead of one that is fit for purpose in the context of today.

DAN BIDOIS (National—Northcote): I move, That debate on this question now close.

CHLÖE SWARBRICK (Green—Auckland Central): E te Māngai, tēnā koe, tēnā koutou e te Whare. Mr Chair, thank you very much for the call. I just wanted to reflect on some of those points, as made by the Hon Kieran McAnulty, particularly about climate adaptation, but also about climate mitigation, because it is the Green’s very strong view—and, in fact, the science and the evidence bears out—that good climate adaptation is also climate mitigation. This kōrero is happening not in isolation, nor in a vacuum, but in the context of our largest city in this country being hit by a climate-change charged weather event at the beginning of this year, in the form of the Auckland Anniversary flooding. As a result of that, we have seen Auckland Council start to move itself and shape its policies and regulations in such a way to provide for greater green infrastructure and that climate adaptation point.

The Minister responsible for RMA Reform will be amply aware, given that he is aware of the complexity in this area, of the fact that Auckland’s future development strategy, as recently signed off by Auckland Council, has substantive consideration for green infrastructure, particularly the utilisation of public spaces such as berms. There could have been a great synthesis and opportunity for cohesiveness across local and central government policy were we to see the Minister utilising the opportunity to direct, through the national policy statement—which the natural and built environment legislation and spatial planning legislation enabled—for greater utilisation of green infrastructure, in turn creating that environment of certainty for local government to move ahead with its plans. Yet what we’re seeing right now, and what I’m hearing from the Minister, is that we’re in a bit of a holding pattern of wait and see. We’re not going to have all of our Christmases come at once. We don’t really know what’s going to happen.

We’ve also heard the Minister say that it’s really important for the sake of the investment environment for there to be certainty for developers and otherwise. Yet what we’re seeing—and I know that he didn’t like this statement—is the throwing out of the baby with the bath water, and no indication of where it is that we’re going to go next.

So my question to the Minister is: in lieu of issuing that national policy statement and direction—particularly pertinent to those of us in Tāmaki-makau-rau, but also those on the East Coast, on the West Coast, those in Northland as well, actually, at the top of the South Island too, who have all been hammered by climate-change charged weather events over the past several months, over the past several years—what is he going to put in its place so that there is that certainty for local government to undertake the requisite planning not only to do density well but also to take inherent account of the inherent valuable nature of our natural environment?

This is something, particularly on the point of tree protection, that I think is really important to continue underlining here. In my first term in Parliament, two terms ago, in the 52nd Parliament, I sat on the Environment Committee when we were going through a process of another Resource Management Act amendment. I was sitting with members, obviously, of the Labour Party, of New Zealand First, and the National Party, and I sought to put up an amendment, through that select committee process, to reinstate urban tree protection, which the Minister will know was actually first removed by the former National Government and only recently reinstated, in watered-down form, by the outgoing Labour-led Government of the last term. To that effect, it ended up being voted down on the basis that we apparently had to deal with that complexity. I then had a whole lot of engagement with our then-mayor, at the time, Phil Goff. I actually, for the sake of debate and discussion here, need to make the point that I will later seek leave of the committee to table that correspondence, between former Minister Parker and Mayor Goff and myself, about the fact that Auckland Council, as one of our largest councils, as the super-city, simply does not have the resources—

Hon Member: The best council.

CHLÖE SWARBRICK: The best council, the best city in this country, does not have the resources to be able to work through the process of notable trees. Again, we’re seeing this lack of cohesion between local and central government policy.

Just to kind of summarise all of those points, we are engaging in this debate not in a vacuum but in the context of a climate-changed world, in the context of climate-change charged weather events which have devastated our communities, both rural and urban, over the past several months and years. One of the best tools that we have to mitigate against that climate-change charged ravaging is the utilisation of trees, which are both climate adaptation in the form of green infrastructure but also climate mitigation too, in terms of their capacity to sequester carbon. My question to the Minister is whether he will, and what he will be doing to, provide that certain environment for local government but also for the sake of investment, in lieu of pursuing the national planning framework as would have been enabled under the natural and built environment legislation and that national planning legislation as well?

Dr VANESSA WEENINK (National—Banks Peninsula): I move, That debate on this question now close.

CHAIRPERSON (Greg O’Connor): I’ll just indicate that that last speech is the sort of general points being made that have been made a lot, and that do lead to a closure, so I’ll just be warning those now—very, very specific. Hon Megan Woods.

Hon Dr MEGAN WOODS (Labour—Wigram): Thank you, Mr Chairman. This is my first chance to make a contribution on Part 2 of this bill, and I do have some very specific questions. They do pertain to clause 5(1) of Part 2, the repeal of the Natural and Built Environment Act 2023. Of course, that takes with it section 58 of the Natural and Built Environment Act. Section 58 of that Act provides some enabling provisions in some very important areas.

There are a number of areas that I wish to ask the Minister about, but specifically my question to the Minister responsible for RMA Reform is around what will be done to ensure that we can continue to see momentum with the repeal of section 58(b), which is the enabling provision for papakāinga on Māori land. Of course, with the Resource Management Act that will be coming in to replace it, with the repeal of section 58(b) in respect of papakāinga land, it was possible to build papakāinga housing, but I think it’s fair to say it was incredibly difficult to build papakāinga housing. The intent with the national planning framework legislation was actually to have an enabling environment so we could see more of it.

Our Government had an incredibly aggressive programme around the provision of papakāinga housing, and obviously that can take many forms. In those forms, we managed to build around 500 houses on papakāinga land when we were in Government, with another 200 in the pipeline, but this is not nearly enough and why it was that this enabling provision was put into the Natural and Build Environment Act. With that going and reverting back to the provision, which we do not consider is anywhere near permissive enough when it comes to papakāinga housing, what advice has the Minister received on this, if any? What are the Minister’s plans to ensure we can have a more permissive environment around papakāinga housing? I do have some more specific questions, but I’ll give the Minister an opportunity to answer that one.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): In relation to the member’s question, I haven’t received any specific advice about papakāinga housing. I agree with the member that it’s a very important part of the housing mix as we go forward—a very important part of solving our housing crisis. Papakāinga housing in my own electorate of Hutt South has been very successful. I think there is a real role for Government, and my good colleague the Hon Tama Potaka, as Associate Minister of Housing (Social Housing) with responsibility for Māori housing, will be doing some work on that. There’s a wider issue around Te Ture Whenua Maori Act and land law reform, which Parliament—

Arena Williams: Accept my amendment.

Hon CHRIS BISHOP: —well, not—

Arena Williams: It’s good.

Hon CHRIS BISHOP: —has struggled with for many years, including the last Government and the Government before that, and maybe in the next three to six years we’ll make some progress on it. I won’t hold my breath, but let’s hope we can get some progress on it, because we do need iwi in particular to be able to make better use of land, and also various Māori entities out there.

So I’m very interested in the role that papakāinga housing can play in relation to solving our housing crisis. I haven’t received any specific advice in relation to this; however, there’s a fast-track bill coming—the Government’s own fast-track piece of legislation—in the new year. I’m happy to consider papakāinga housing as part of that fast-track, but I haven’t received any specific advice.

Hon Dr MEGAN WOODS (Labour—Wigram): Thank you, Mr Chairman. That gives me great heart, and thank you to the Minister responsible for RMA Reform for answering that question. I have two specific questions, both relating to section 58 of the Natural and Built Environment Act. One is: will the Minister countenance an amendment to this bill to enable a more enabling and permissive regime around papakāinga housing than the old Resource Management Act that we’re bringing back would allow? And I’m sure I’ll have colleagues that would like to speak, if there are any proposed amendments. I know that Arena Williams will certainly be keen to speak to a specific amendment in that, so I’d be keen to hear from the Minister if that is an amendment that he would countenance.

My second question is also in relation to section 58, and that is around the removing of the enabling renewable electricity generation and transmission provisions in the Natural and Built Environment Bill—it pertains particularly to water usage—and whether the Minister has given any thought to what it will be replaced with or whether he has received any specific advice on whether it will be around both consumptive and non-consumptive uses of water in relation to electricity.

ARENA WILLIAMS (Labour—Manurewa): Thank you, Mr Chair. I said earlier in the House that I had 11 amendments in my name to this part. I have spoken to six of them, so I will take you through, quickly, those other amendments. There’s also an opportunity here, I think, for some bipartisan work on the amendment—which I have written now and will table shortly—which amends Part 1 of Schedule 2, and that is specifically around papakāinga housing. For the benefit of the Chamber, I will read it out: it would amend Part 1 of Schedule 2 to delete all amendments to Te Ture Whenua Maori Act 1993, the Urban Development Act 2020, and any other Acts which would reverse those changes made to the enablement of papakāinga housing.

There’s particular reference in those two Acts that would be amended by the Minister’s amendment that would set back the development of papakāinga housing. Given that the Minister responsible for RMA Reform has an interest in the enablement of papakāinga housing that is not only on community-held Māori land but also on other forms of freehold land which are owned by other organisations—like marae, like urban authorities—this would allow those practical changes which the Government of the last term introduced to enable papakāinga housing to continue. I do want the Minister to tell the Chamber whether he will consider my amendment, which I will table shortly. Given that he hasn’t had time to consider it now, I will run off some copies in a minute so he can consider it.

Speaking to the other amendments in my name, I am proposing a number of deletions from Part 1 to Schedule 2, and they are amendments 5 through 11. They are deleting the amendments to the Infrastructure Funding and Financing Act 2020, the Environmental Protection Authority Act 2011, the Crown Minerals Act 1991, the Conservation Act 1987, the Climate Change Response Act 2002, and the Water Services Act 2021. I have spoken already to the deletions of the Urban Development Act, so I won’t use the Chamber’s time to discuss those, but these are all Acts that make amendments that I have already explained to the Chamber are not consequential and do not belong in Part 2 that amends this Schedule.

These are not consequential, because the amendments to these Acts all include things that are moving to a system where there is some change for the way that decision makers within Government departments or decision makers within our court system would have to make a decision based on a new—well, an old—hierarchy of values. If the Minister’s answer that he gave me in relation to the Urban Development Act stands in this Chamber—that “Oh, well, the difference is only three months.”—then it would make sense that it would be fine to pass, through committee stages and through urgency in Parliament, any kind of amendment that went back to a system which was time-limited. That cannot be the answer. We need answers about how the decision-making framework that is now in our law will be different in the future, and that is why I have proposed to amend just six of the Acts that are amended by this amendment here.

I haven’t chosen everything, I’ve just chosen those things which make amendments which are more than consequential, and I’d like the Minister to tell me how he proposes to deal with that and my new amendment, which I will run off now.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): It’s hard for me to comment on an amendment I haven’t seen, so—

Arena Williams: Oh, I’ll go and do it.

Hon CHRIS BISHOP: OK, well, that’s good—very good. So I’m happy to have a look at it. In relation to papakāinga housing, just further to the Hon Megan Woods’ point—she was talking about clause 58; I think that’s the wrong section.

Hon Dr Megan Woods: The enabling provisions.

Hon CHRIS BISHOP: Yeah, well, I’m advised that section 129 is the relevant one in relation to the national planning framework which would have enabled papakāinga housing—

Hon Dr Megan Woods: No, no. It’s one, but so is 58.

Hon CHRIS BISHOP: Well, I’m advised that there is no 58B in the Natural and Built Environment Act 2023 (NBEA). The correct section is 129. Anyway, regardless, I think we’re both talking about the same thing. The national planning framework (NPF) would have sent the filter through the system to make papakāinga more enabling. I’m also advised that the initial national planning framework which was being advanced under the previous Government didn’t actually include the papakāinga housing changes to it. That was going to be in phase 2, so I think it’s fair to say we were a wee way off under the NBEA track from enabling more papakāinga anyway. That was going to be part of the phase 2 NPF reforms; it wasn’t actually in the initial draft that’s been publicly released, or at least available. I’d just repeat what I said before, which is that I’m very supportive of papakāinga. I think there’s more we need to do there, so I’m interested as to ways we can advance that—just to repeat that.

In relation to Arena Williams’ amendment, as I think I’ve said now for the 12th or 13th time, we are just going back to what the law was. Ms Williams says, “Well, it’s very important when Parliament does that, we need to know what the law will be.” Well, we do: the law will be what it was. It’s as simple as that. Parliament recently passed this. There was a long and convoluted debate about it. I spent a lot of time in this House and a lot of time in the select committee—we made it really clear relatively early on from the get-go that National in Opposition did not support the NBEA. ACT said the same thing, New Zealand First—coalition partner—said the same thing from outside the Parliament, and we are now proceeding to implement our policies and our promises. It’s really as simple as that.

Hon RACHEL BROOKING (Labour—Dunedin): Thank you, Mr Chair. Now, I would like to go back to some questions that weren’t answered, and I’ll just reflect on those very quickly. That is, what the Minister responsible for RMA Reform thinks that the regional council’s role would be under the Natural and Built Environment Act. Also, whether or not there was any consideration of keeping bits of the Natural and Built Environment Act that are clearly much more efficient than the Resource Management Act (RMA). So that’s regarding section 32 of the RMA and the consent categories were what I referred to earlier.

I’m interested also—we’ve had some discussion about good urban density and phrases like “sponge city” may have come up, and, of course, one of the changes in the Natural and Built Environment Act that came quite late in the process was in response to a lot of the hazard events that occurred at the start of the year, and this real focus on green infrastructure. Now my colleague the Hon Dr Megan Woods has been referring to section 58 of the Natural and Built Environment Act—apologies if that is the wrong section, we’re working off my copy of the bill as it was reported back from the select committee stage. But clearly the Minister realises that we’re talking about the “National planning framework must provide direction on certain matters”. This is a catch-all section.

Another question that goes to the efficiencies that could be gained by doing some of the things in the Natural and Built Environment Act—I would say all of the things, but being specific here—is that a lot of national policy directions at the moment can be inconsistent with each other. So on the one hand, you might have the National Environmental Standards for Plantation Forestry saying, basically, grow pine trees wherever you like, but then you will have other national policy directions—there’s the Essential Freshwater package which is saying no, we need to be really careful about what is going into our waterways. So having one national planning framework that puts all of those different national instruments together and makes sure that they are not inconsistent goes a long way in terms of efficiency. So I asked the Minister if he had considered that; had the Minister also said that he is going to keep the Spatial Planning Board, and given that there will be no Spatial Planning Act or no Natural and Built Environment Act, I wonder what that Spatial Planning Board will be doing?

Also, we have the Mana Whakahono ā Rohe. They are much more strengthened in the Natural and Built Environment Act than they are in the Resource Management Act, and if there was any consideration to keeping those strengthened provisions, they could have stood alone as well. That’s one series of questions.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): I’ll just answer those questions briefly. I mean, we’ve been through this. Yes, the Government went through a process about what changes made through the Natural and Built Environment Act they wish to keep as part of this. Time pressures meant we couldn’t go through all of it.

Hon Rachel Brooking: Self-inflicted time pressures.

Hon CHRIS BISHOP: Well, but—yeah, sure. But also, unless we just wait another year, everyone subject to this 900-page monster—councils and all the rest of it have to go through that, start a 10-year transition—everyone knows the law is going to be repealed anyway. It introduces even more uncertainty, so we took the view—and I think it’s a legitimate and reasonable view—better to get it off the statute books as quickly as possible so that people know where they stand. So that’s what we’re doing.

As I’ve said—again, for the third or fourth time—we are going to go through a process in the new year about some of the more sensible technical changes that were advanced through the Natural and Built Environment Act. Ms Williams has made a spirited case for allowing a select committee to do that through legislative amendment to this legislative amendment.

Arena Williams: Give me one amendment, come on!

Hon CHRIS BISHOP: I’ll have a look at that. I’m more minded to just instruct a select committee chaired by my good colleague David MacLeod—potentially the Environment Committee, a very hard-working committee—but we can have a look at the tabled amendment.

On the Spatial Planning Board, the Spatial Planning Board is staying. In relation to what it will do, well, we’ll be working our way through that but as the member knows, as a former Minister, getting departments to work together is going to be a good thing.

CARL BATES (National—Whanganui): I move, That debate on this question now close.

CHAIRPERSON (Greg O’Connor): There has been very little new material in the last several presentations, so I will give the call to Mr McAnulty but it will be new material.

Hon KIERAN McANULTY (Labour): Thank you, Mr Chair. The issue with including new material here is that I still haven’t got an answer to the previous question I asked, a genuine question, about the definition of a natural hazard. I would like an answer to that because I’m considering putting forward an amendment for the consideration of the Minister responsible for RMA Reform so that we could do that. If he could give an indication as to whether he’d be willing to consider the current definition of “natural hazard” under the Natural and Built Environment Act and simply state, in this bill, that that is the definition that local councils will continue to be able to refer to in their operations under the new planning model.

It’s not about opposing what’s happening here: we know what the Government wants to do; we know they want to move back to the Resource Management Act 1991. But a genuine plea: let’s at least have an up-to-date definition of “natural hazard” that considers, takes into account, not only climate change but also contaminated land—a point that I wasn’t able to make last time—as a result of climate change and natural disasters.

It is important that the definition that local government operates with, with specific reference to natural hazard, is up to date. Times have changed. We now know that climate change and natural hazards are linked, without question. The definition should reflect that. I’m in the process of drafting an amendment to that—at least an answer to my question would be good, but an indication from the Minister as to whether he’d be willing to consider that.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Happy to look at it. Sorry, I meant to answer it before, and I take your point. I’m advised that there is, basically—the only thing that has changed is the Natural and Built Environment Act clarified that the activities that are covered had to be caused by climate change. So it’s just literally a clarificatory statement, but all of the activities that were covered are still covered; it’s just by dint of the passage of time, the Resource Management Act 1991—I don’t know, I mean, we’re 30 years on; it’s just a minor clarificatory statement. So I don’t think anything substantive turns on the wording. All of the activities that you’d want to be covered through natural hazards are covered. But I’m happy to look at the wording if the member wants to—

Hon Kieran McAnulty: I’ll print it now.

Hon CHRIS BISHOP: OK, very good.

MILES ANDERSON (National—Waitaki): I move, That debate on this question now close.

A party vote was called for on the question, That debate on the question now close.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Arena Williams’ tabled amendment inserting new clause 5A to require an inquiry into parts of the Natural and Built Environment Act 2023 that should be reinstated or given effect be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Arena Williams’ tabled amendment inserting new clause 5A to require an inquiry into parts of the Spatial Planning Act 2023 should be reinstated or given effect be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Arena Williams’ third tabled amendment inserting new clause 5A be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Arena Williams’ tabled amendment to clause 6 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

A party vote was called for on the question, That Part 2 be agreed to.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Part 2 agreed to.

Schedule 1 Transitional, savings, and related provisions

CHAIRPERSON (Greg O’Connor): We come to Schedule 1. The question is that the Hon Rachel Brooking’s tabled amendment inserting new clause 7A in Schedule 1 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that the Hon Rachel Brooking’s tabled amendment inserting new clause 7B in Schedule 1 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that the Hon Rachel Brooking’s tabled amendment inserting new clause 7C in Schedule 1 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Arena Williams’ tabled amendment replacing clause 11 of Schedule 1 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Arena Williams’ tabled amendment to clause 19 of Schedule 1 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

A party vote was called for on the question, That Schedule 1 be agreed to.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Schedule 1 agreed to.

Schedule 2

CHAIRPERSON (Greg O’Connor): We come to Schedule 2. Arena Williams’ tabled amendments to Part 1 of Schedule 2 deleting amendments to various Acts are ruled out of order as being inconsistent with a previous decision of the committee.

Steve Abel’s amendment to Schedule 2 set out on Amendment Paper 4 is ruled out of order as being outside the scope of the bill.

The question is that Lan Pham’s tabled amendment to Part 4 of Schedule 2 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that the Hon Rachel Brooking’s tabled amendment to Part 4 of Schedule 2 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

A party vote was called for on the question, That Schedule 2 be agreed to.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Schedule 2 agreed to.

Clauses 1 and 2

CHAIRPERSON (Greg O’Connor): We come now to the debate on clauses 1 and 2. This is the debate on the title and commencement.

ARENA WILLIAMS (Labour—Manurewa): Thank you for the opportunity to comment on this part, Mr Chair. It has been a lively debate and I want to take this opportunity to thank the Minister for his discursive approach to it—

Chlöe Swarbrick: Discursive!

ARENA WILLIAMS: —and in answering questions. I love a discursive approach, Chlöe. I encourage you to take a call, Chlöe Swarbrick.

Clause 1 has an amendment in my name that has been tabled. I hope the Minister will give it some consideration. The amendment is to change the name of the bill from the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill to the “Resource Management Return to the 2022 Position Bill.” This is a serious amendment; it is not a silly name. What I am trying to highlight here, for the record, is that how we name this Act is important, and to give some of indication to the decision makers who rely upon the statutes to make decisions about what resource management regime they’re following, because the difference between the 1991 Resource Management Act and our current position in law is significant. We’ve traversed that well in the committee but what I’m wanting from the Minister is an indication of whether he will accept my amendment to the name or—

Hon Chris Bishop: Just read it out again.

ARENA WILLIAMS: —I can read it out again for him in a second—whether he will consider this name change or make it clear to the committee in an answer to my question what time period he is seeking for decision makers, under these Acts, to use because it’s certainly not 1991. We’ve had conversations in this committee about what we are returning to here. The law has moved on and it would be useful for the Minister to give us an indication on that.

There is a second clause amendment in this part with an amendment in my name. It would amend clause 5 of Schedule 1, coming into force on the day that is 18 months after the rest of this Act, but allow clauses 6 and 7 of Schedule 1 to come into force on a day that is nine months after the rest of the Act. So the change there is that the Minister’s repeal bill would come into effect mostly with that nine-month period; this is allowing the operative part—the clause 5 part—to repeal the whole Act at a later date.

I think what I’m really getting to here and what I’d like the Minister to consider in my amendment is whether there is any reason, given that he has some interest in allowing select committees to inquire into which parts of the three Acts that are being amended by this bill—you know, those parts that it is worth building bipartisan support for and keeping on the statute book and whether there is any reason why there shouldn’t be a time extension of the operative parts of those Acts, to remain in effect while we make that consideration. I’ve heard the Minister say that he wants to return to the old system now, but it would be useful, I think, for the House and the way that we make law in this House to be able to consider what should be kept, in a select committee setting, while those parts remain in force.

So my questions are really about the period of time, and there were some good contributions by my colleague the Hon Rachel Brooking about the difference between the 1991 regime and the 2023 regime that we find ourselves in, and that includes not only the law as it stands on the statute book but also those changes that have been made by the courts since then. There were also some contributions that the Hon Peeni Henare made, particularly about those changes that the courts have made in the way that we would consider the hierarchy of values when we take those into account around things like kaitiakitanga and the role of iwi and hapū in things like consenting decisions. So it would be really useful for the Minister to consider my two amendments. I hope he will give me one amendment. I’ve been trying for three hours now.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Thank you, Madam Chair. I’ve been pondering the member’s suggestion. It has a certain logic to it, but just because the Act is the 1991 Act doesn’t mean that people think the law is as it was in 1991. As the member knows, the Resource Management Act has been amended probably hundreds of times in the last 30 years, which might speak to fundamental design problems in the first place—

Hon Rachel Brooking: That’s right; that’s why we fixed it.

Hon CHRIS BISHOP: Well, we’re on a very narrow part of the debate now; you’re not going to get me back on that but good try, and there are many other Acts that have been amended hundreds of times. So I think we’ll stick with the wording as it is, but not a bad idea.

In relation to the second question, I don’t think we need to alter the commencement provisions to do a process of working out what we want, the additional things we want to keep from the Natural and Built Environment Act. We’ll work through that in due course. I’m attracted to the idea proposed by the member previously about getting a select committee to do a bit of the heavy lifting on that. If the member wants to be—I don’t know, is the member part of the Environment Committee?

Arena Williams: Draft me in; you’re on the Business Committee.

Hon CHRIS BISHOP: Well, you know, there’s 123 MPs; I don’t know what every committee MPs are on. I’m still getting to know the new members. There’s not so many on the Opposition benches but there’s quite a few on the cross benches from the Greens.

Hon Kieran McAnulty: So no interest; hasn’t got to know his colleagues.

Hon CHRIS BISHOP: Oh no, there’s 123. I hesitate to make this point but I wonder if you know the name of every MP in the Parliament?

Hon Kieran McAnulty: I do.

Hon CHRIS BISHOP: Oh, righty-o, OK. It’s big talk for a Wednesday morning. Anyway, so good ideas but I think I’ve answered the questions.

Hon KIERAN McANULTY (Labour): Thank you very much, Madam Chair, and I appreciate the invitation from the Minister to name every member—I can do that. I won’t, because that wouldn’t be relevant—and nice try, that was a good little trap you set for me there, Minister, but I’m not going to fall for it.

I’ve a genuine question about the commencement here, it’s not going to take long. I do want the Minister to answer it because I think the Chamber deserves to know. As you know, as it says, clauses 5 to 7 in Schedule 1 come into force on the day that is nine months after the rest of the Act. Is nine months enough? That’s what I want to know. Is nine months enough to do all the things that the Minister has said they want to do, which is the justification for having these delays. They’re going to get things in place, they’re going to tidy things up, they’re going to line it up—plus the amendments, get things ready, and they’ve given themselves nine months.

If he can come back and say, “Yes, nine months is enough and this is why”, fair enough; good as gold. But I think it’s worth considering an amendment to this, a genuine one, if the Minister can’t come back and explain why nine months, the reason being that nine months isn’t long when it comes into force after Royal assent—presumably that’s going to be pretty quick, then the public sector is going to be off for six weeks, pretty much, and fair enough too, the way things have been going. It’s certainly going to be on a slowdown. But the point is that nine months seems like an unusual period of time and if we are to consider amending that, an explanation is due to the committee.

If we do amend that, it would be nice to have enough time to actually get it in. I note that before the last closure, the Minister said “Yes, we will consider your amendment”, and I said “I’ll just have to go and print it”, and he said “OK”, then it got closed. So that was an unusual and disappointing outcome, particularly when the Minister and I get on well, we work together constructively—we were about to, didn’t get the opportunity, and we have the opportunity now. So just a quick explanation please: why nine months? And is that long enough?

Hon PEENI HENARE (Labour): Tēnā koe, Madam Chair, and thank you very much. To the nine months, I see that the commencement date is nine months after the rest of this Act comes into force. The question I have for the Minister is pretty simple and I raised a little bit of it earlier. We were talking about report backs and the time that the Minister will take to enable the Ngā Hapū o Ngāti Porou Act. You’ll see in the bill that it says here, “use the Crown’s best endeavours to promote the enactment of the Bill not later than 18 months after the commencement of this clause.”

So by my Mōtatau maths, and I got 54 in School C. maths so please just—it’s a pass but bear with me here. The 18 months plus the nine months—27 months, leading into another election. My very simple question to the Minister is: does that mean that Ngā Hapū o Ngāti Porou are in limbo for 27 months with respect to their piece of legislation? As well as ngā Mana Whakahono, and if I recall correctly there is three months to report back to those iwi who look towards making an attempt to be recognised as an iwi authority. So just a very simple question on the nine months plus the 18 months: is the Minister suggesting to Ngā Hapū o Ngāti Porou that they’ll need to wait 27 months in order to get any progress on their particular legislation?

Hon CHRIS BISHOP (Minister responsible for RMA Reform): I’m not allowed to refer to a member who’s not here, but he isn’t. Mr McAnulty asked about clause—

Camilla Belich: He’s here now.

Hon CHRIS BISHOP: Oh, he’s here. Welcome back.

Hon Kieran McAnulty: You’re not supposed to say I wasn’t here.

Hon CHRIS BISHOP: I know, I know, I know. I just said that, but I got away with it. It’s all in the spirit of good faith. In relation to clause 2, subclause (2)—sorry it’s clause 1, actually. Clauses 5 to 7 are there basically to allow the 100-day fast track, so to allow the Government’s own fast-track legislation to be progressed, which is part of our 100-day commitments. The provision is to give comfort to particularly post-settlement governance entities in the unlikely event that it takes longer. I think the member was proposing a longer window. If the member wants to put a reasonable piece of time on the table beyond nine months, we would be prepared to consider that. If it would make everyone feel better about life, I think it would be a reasonable and constructive way forward.

Hon Kieran McAnulty: Point of order, Madam Chair. Could I seek the Chair’s assurance that I will have enough time to actually submit this amendment, given that the last time we had an agreement with the Minister that I could submit an amendment, it was then closed and that opportunity was lost.

CHRIS BISHOP: Speaking to the point of order—

Hon Kieran McAnulty: Not sure you’re supposed to—

CHAIRPERSON (Maureen Pugh): Hon Chris Bishop, speaking to the point of order.

Hon Kieran McAnulty: From the chair? Are you supposed to? Someone else could—don’t know if you can.

CHAIRPERSON (Maureen Pugh): Yes, I believe he can.

CHRIS BISHOP: It’s fine—yes.

ARENA WILLIAMS (Labour—Manurewa): Madam Chair, thank you for the opportunity. I have five questions for the Minister about the Royal assent. The first question is about the nature of Royal assent. For the committee’s benefit, Royal assent is granted by usually the Governor-General, and so my questions are around the legal risks which this legislation creates at every point of decision making and in exercise of the Crown’s powers, and that includes the point about Royal assent. This is separate from the point about the commencement date and particularly about the date of Royal assent.

So my first question to the Minister is: what legal risk should the people giving Royal assent consider when making the decision to grant this bill Royal assent? And the second question: what rights are extinguished upon Royal assent? This is in the context of this bill having a relatively unusual provision, which is to exclude compensation for the effect of the repeals. That is a big part of the Act, which I was not able to traverse with the Minister in Part 1 of this debate, but it is still relevant to the Royal assent given that it creates a legal risk that that body takes on when giving Royal assent.

My third question about that, which I’ll ask now, as the Minister is considering his thoughts: has the Government ever extinguished legal rights of this nature, in urgency, without an impact assessment, as a consequential amendment? The reason why the committee was not able to traverse this point about the extinguishment of legal rights and the unusual provision that excludes any remedy because of these repeals is because it was part of a schedule and we were unable to get to that part in the committee of the whole House. It was also not included in the impact assessment for reasons we have already traversed. But it is something that is wholly new to this committee’s discussion of this bill. So I’d like an answer from the Minister, and then I have two more questions on it.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Thank you, Madam Chair. I’m trying my best to understand what the member is saying, but I’m struggling a touch. I’d like her to take another call to maybe—

Arena Williams: Absolutely.

Hon CHRIS BISHOP: Well, just hang on a minute. I’ll make a couple of remarks. In answer to the question around whether the Government has ever extinguished legal rights in this way through a consequential amendment, the short answer is I don’t know. But the more broad point is that we’re not extinguishing legal rights. The bill is at some pains to preserve existing legal rights that people have. It upholds Treaty settlements as well. It’s a core commitment of the Government, on behalf of the Crown, which is very important.

We had an extensive back and forth last night about Mana Whakahono ā Rohe agreements, and also we had some engagement this morning with former Minister Henare about Takutai Moana and customary rights and customary title. It would be a brave Parliament and Government that decided to unpick that hard-fought-for piece of legislation, which, of course, codified in some respects common law rights around customary title, which go back, as the member knows from her days at law school, many, many, many decades.

I’m time-filling somewhat while we wait for Mr McAnulty to scurry around, around the amendments, but I didn’t quite get the first question from the member in the last call. So maybe she can come back on that one.

ARENA WILLIAMS (Labour—Manurewa): Thank you, Madam Chair. The first question was about the context of this—if the Minister could tell the committee what legal risk those people giving Royal assent to this amendment bill should be considering when they are making that decision. It’s a question, really, about what part they play in our constitutional arrangements when exercising Government power to enact legislation which would potentially extinguish the rights of parties to proceedings which are on foot or might be entered into.

I’m really glad that the Minister has drawn the committee’s attention to clause 11 of Schedule 1, which is the Mana Whakahono ā Rohe agreements. The reason I’m talking about that is that it is an example I presented the committee with last night where rights are extinguished. So there exists now an agreement between Poutini Ngāi Tahu, who have applied as a hapū for a Mana Whakahono ā Rohe agreement with those councils that are active within their region, which is the West Coast. They are different from those iwi authority agreements which exist under the old regime. Clause 11 does try to fit the Mana Whakahono ā Rohe agreement back into the old system, but where there are new rights which exist—those examples where hapū or, in this case, a rūnaka that is subordinate to an iwi organisation has entered into a regional agreement with their regional council—there are different rights which exist under those agreements than there are under the old system.

The Minister told the committee last night that clause 11 is worded in such a way as to preserve those existing arrangements and that there are no new arrangements. But, actually, we should have amended that clause last night, because that’s not what clause 11 says. So I want the Minister to tell us how, in Part 1, when those people giving Royal assent to this bill, they should consider examples like Poutini Ngāi Tahu, who have rights under the new regime that will be extinguished moving back to the old regime, given that they have a role in preserving those rights or at least helping this Parliament to be very, very clear when it is extinguishing the right of parties to proceedings now.

My fourth and fifth questions are: who will be giving Royal assent, given that there are special rules to consider when the Governor-General is overseas? We’re in a period of summer holidays because the Government is sitting in urgency, and we are using the House’s time in this way. There are special rules around who may give Royal assent and if it’s not the Governor-General, it will be a senior officer of the court. That puts a senior officer of the court—say a Supreme Court Justice—in a really difficult position when they’re extinguishing the rights of parties in this way.

The last question is: does the Minister know about those arrangements? When will that Royal assent be given? What are his intentions around this?

Hon CHRIS BISHOP (Minister responsible for RMA Reform): Well, Madam Chair, we’re into the realm of legal fantasy now. Maybe it was just a good filibuster attempt, but not a great one. The Royal assent is the Royal assent process. The member knows that Parliament passes a piece of legislation. It makes its way to Her Excellency the Governor-General, who signs it. And if the Governor-General refused to sign something by Parliament, I suspect we would have bigger issues to deal with as a country. But so far in the long constitutional history of New Zealand that hasn’t happened—at least while we’ve had responsible government. So that is what will happen, and it doesn’t place the Supreme Court Justice or the administrator of the Government, or the Chief Justice acting as the Governor-General, in a position. The Parliament passes a law and the Governor-General signs it. That’s the law, and it’s pretty simple.

In relation to her more substantive point about the extinguishment, I’m advised that there are no parties that have proceedings under the relevant bits of the legislation she’s talking about. There’s no extinguishment of legal rights, because there are no—she’s talked about parties to proceedings having their rights extinguished. There are no parties to proceedings. No applications have been made. If one was to be made, clause 11 is pretty clear: it just goes back to the Resource Management Act 1991 provisions as if the hapū was an iwi authority under that Act, and then things can proceed from there. It’s pretty simple, and we’re now straying well away from the commencement. I’m hoping Mr McAnulty has got his amendment under way and we’re good to go.

Hon RACHEL BROOKING (Labour—Dunedin): I think it might be helpful in this discussion if we go to clauses 5, 6, and 7 of Schedule 1, because these are the only three clauses in the bill that have a different commencement date to the day after Royal assent. So I would ask the Minister if he would like to take us through clauses 5, 6, and 7 and give the rationale for why they are different from the rest of the bill and why it is that nine months is the necessary time frame. Just looking at the Minister; he’s not going to answer.

I will also go, then, to my amendment to the title clause as well, and that is to, in clause 1, replace Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill with “Resource Management (Retrograde for the Environment and Efficiency) Bill.”

Hon KIERAN McANULTY (Labour): Thank you very much, Madam Chair, and thank you to the Minister for allowing me the opportunity to propose an alternative time. I do understand that my colleague the Hon Peeni Henare may have something to say about this amendment also, but we are proposing that the commencement of nine months is changed to 18 months. The reason is it would make sense, we think, for there to be some consistency, given that under clause 5(2)(b) it mentions 18 months: “use the Crown’s best endeavours to promote the enactment of the Bill not later than 18 months after the commencement of this clause.” We think that it would make sense to have some level of consistency there.

I take on board the Minister’s point that it is the Government’s intention to fulfil their 100-day plan. But as the last couple of days have shown, things can move slower than expected in Parliament, and what if the Government doesn’t meet that deadline? They have unnecessarily cut themselves short. So we think that it would make sense to give the Government a little bit more time. Not everything’s going to go through Parliament under urgency. And, hey, look, if the Government gets it done within nine months, so what? All good. But at least they’ve built themselves a little bit of a buffer. In the spirit of trying to be constructive at a committee of the whole House stage, hopefully the Minister would consider that amendment.

Hon CHRIS BISHOP (Minister responsible for RMA Reform): In the spirit of Christmas, the Government will accept that amendment proposed by Mr McAnulty. He has some—

Hon Kieran McAnulty: Is that it? Where’s the other presents?

Hon CHRIS BISHOP: That’s pretty good. When was the last time the Government accepted an Opposition amendment on the floor of the House? [Interruption] Well, yours should have been worded better. But I’m struggling to recall the last—

Hon Chris Penk: I remember one.

Hon CHRIS BISHOP: Oh, one. That’s frustrating.

Hon Chris Penk: It was a drafting thing, raised by me.

Hon CHRIS BISHOP: Oh, OK. As I say, I remember sitting over where the Labour members are sitting and putting up very, very sensible substantive amendments, including some quite minor ones—minor but important—and the Labour Minister sitting here. So, anyway, it’s all good. We’re not going to support the amendment around the name—nice try—and we’re not going to support Arena Williams’ amendment around the date, although I think that was a better effort. The bill is going to be called what it’s going to be called, but we’ll go with the 18 months, if that makes sense. Thank you.

Hon PEENI HENARE (Labour): Thank you, Madam Chair. It’s not like the Chamber to fall silent, so I thought I’d take the opportunity to thank the Minister for his consideration of the 18 months, and it was to my point around iwi and, in particular, the Ngā Hapū o Ngāti Porou being in limbo. So bringing it into alignment here, I think, is actually quite a smart move.

I will also, though, pick up on the point made by the Minister in the chair—how Cabinet makes a decision, the House passes a bill, and then the Governor-General signs it into law. Well, an Order in Council is just a little bit more complex than that. An Order in Council isn’t simply a, “Let’s just sign the paper and done deal.” For members across the Chamber, having sat in an Executive Council with the former Governor-General, it was quite a daunting task to sit there and explain your legislation to somebody who’d served on the High Court and served as a Justice, to make sure that it was quite clear to them, because if the rationale wasn’t clear, then they weren’t obliged to sign it.

So it’s really just a point of clarification for the Minister in the chair. But I come back to the point around the accepting of the amendment. There are going to be questions about whether or not any of the amendments that the Minister might bring back in between now and that 18 months might continue to impact the time. So we are looking for a reassurance here and for any amendments that will come forward, we will be looking towards making sure we stick to that 18 months.

From the feedback and the emails and the messages I’ve had from iwi around the country as they watch this bill progress through the House, there are two words that became obviously clear, in all of the correspondence from them, and they were “Lawyer up”. Because what I’m suspecting is that the Government can receive—and will be receiving—significant claims, legal action from iwi right across the country. And I think the 18 months will actually serve them well while they look towards how they might be able to deep dive into this particular repeal bill to make sure that they can cover off all of the bases to know that their rights are protected in this repeal bill.

That’s going to be really important from Ngā Mana Whakahono, also to Ngā Hapū o Ngāti Porou, to those who have current arrangements, and I’m heartened by the Minister in the chair’s comments about protecting Te Tiriti o Waitangi settlements, making sure that we continue to honour those as we have done in this House. But I suspect that the 18 months will be a good opportunity to allow iwi to come on board and make sure that they can protect their interests through the right legal mechanisms.

That’s a thank you to the Minister for accepting the 18 months, and we look forward to his return to make sure that we do get these things right, which is how this process should have been done in the first place anyway. If we had gone through the select committee, we wouldn’t have to have pushed out the time; we wouldn’t have to be using words like “lawyer up” in this House. But I know that iwi and hapū are already looking towards doing that to make sure that their rights are protected moving forward.

DANA KIRKPATRICK (National—East Coast): I move, That debate on this question now close.

A party vote was called for on the question, That debate on this question now close.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Arena Williams’ tabled amendment to clause 1 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The Hon Rachel Brooking’s tabled amendment to clause 1 is out of order as being not an objective description of the bill.

A party vote was called for on the question, That clause 1 be agreed to.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Clause 1 agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Arena Williams’ tabled amendment to clause 2 be agreed to.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Rachel Brooking’s tabled amendment to clause 2 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that the Hon Kieran McAnulty’s tabled amendment to clause 2 be agreed to.

Amendment agreed to.

CHAIRPERSON (Maureen Pugh): The question is that clause 2 as amended be agreed to.

Clause 2 as amended agreed to.

Bill to be reported with amendment.

House resumed.

CHAIRPERSON (Maureen Pugh): Madam Speaker, the committee has considered the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill and reports it with amendment. I move, That the report be adopted.

Motion agreed to.

Report adopted.

DEPUTY SPEAKER: The bill is set down for third reading immediately.

Third Reading

Hon CHRIS BISHOP (Minister responsible for RMA Reform): I move, That the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill be now read a third time.

I want to start by saying thank you to members from all sides of the House for the constructive way in which we went through the select committee—sorry, no select committee on this one; the committee of the whole House. Sorry, it’s been a tiring three or four weeks. In fact, it’s been a tiring year. I want to thank all the members. I think it was a constructive way through.

All of the issues have been well canvassed, I think, in the first reading, the second reading, and the committee of the whole House. The Government remains committed to sensible changes to our planning regime that make it easier to get houses built, get aquaculture under way, and get infrastructure built whilst protecting the environment. I think there is a widespread consensus that that is not the case at the moment.

The replacement regime that we are repealing today—the Natural and Built Environment Act and the Spatial Planning Act—was a well-intentioned but unfortunate and misguided attempt at fixing our planning regime, and many people consider it would not have worked. The select committee heard submission after submission from people, from councils, from developers of infrastructure, from renewable energy providers—and the member who is the Labour Party environment spokesperson, whom I like a lot and have a lot of time for, needs to be aware of her conflict. The Hon Rachel Brooking was a member of the Randerson panel that begat this nonsense, so it’s fair enough that she’s now in the position she’s in. She became the Associate Minister for the Environment but she was a member of Randerson panel, so, to use an equity term, she does not come at this with clean hands. And I don’t say that in a particularly pejorative way.

Hon Dr Megan Woods: Are you suggesting an honourable member is not honourable?

CHRIS BISHOP: No, no, no. I was just making a law joke. Chris Penk found it funny, even if others didn’t. The Government’s accepted an amendment to the legislation on the floor of the House, so I thought we’d get more joie de vivre from the Opposition, but anyway.

Hon Scott Simpson: Where’s the Christmas joy?

CHRIS BISHOP: Christmas spirit and Christmas joy. I’m proud of this legislation. I’m not proud that we had to do it under urgency.

Hon Dr Megan Woods: Proud of what you’ve repealed.

CHRIS BISHOP: Well, yeah, I’m proud of all the stuff we’re repealing. As I’ve said multiple times, including in public, when something is not a good piece of legislation, by definition repealing it is good. If it was good, it would stay on the statute book.

The members opposite have this really quite odd attitude that everything the Government must do has to be constructive, and we have to pass elaborate pieces of legislation and we have to—

Hon Dr Megan Woods: So you’ve got to be destructive. That’s all right; we get it.

CHRIS BISHOP: If repealing something that is destructive by definition, actually, is positive in the sense that it will grow the economy and make it easier to do things, by definition that is constructive. So that’s my point—the binary is a false one. Repealing things can take the country forward. To take an example that the Labour Party members opposite might have some sympathy for, the Labour Party spent most of the 1990s saying the Employment Contracts Act was a disaster. They then repealed the Employment Contracts Act, and the Labour Party back then didn’t go around saying, “Oh, well, we’re repealing it. Oh, no, this is not good.” They were proud of the repeal. This is what Governments do. Governments change, the political cycle goes, things come and go.

We came to Government with a mandate to go through systematically and repeal stupid pieces of legislation passed by the last Parliament, by the last Government, and that is what we’re doing. We had fair pay agreements last week, 90-day trials once we get through this; we’ve got the Resource Management Act, we’ve got the clean car/ute tax, and, trust me, there’s more coming in the new year, and I’m looking forward to it. Getting stuff off the statute book is, by definition, positive, right, if it reduces the size of Government and takes the country forward.

Parliament legislates too much stuff, and one of the problems with the last Government was they just legislated all the time—elaborate, complicated, complex regimes that stuff the statute book with complexity. Actually, we need a smaller Government that reduces down the size of the statute book.

Anyway, I somewhat digress.

Hon Dr Megan Woods: I look forward to it.

CHRIS BISHOP: Megan says she’s looking forward to it.

As I’ve sort of advertised, we’re keeping the fast-track consenting regime which was developed by the last Government. We’re developing our own regime, and work is under way at pace. Simon Court, my Parliamentary Under-Secretary for infrastructure and Resource Management Act reform, is working on that alongside our coalition Government parties.

We are, as I’ve said to the member Rachel Brooking, interested in spatial planning and how we get that more properly equipped. I’ve decided to keep the Spatial Planning Board, and we’ll work through the roles and functionality of that in due course. I do agree with the member, the point she made at various points, that spatial planning does have a real role to play, but I think it is really important, as I said during the committee of the whole House stage, that we do that in a coherent and structured way that sits alongside other Government priorities alongside water reform. And at some point, in due course, we will have to consider the future of local government reform as well, and, of course, it sits alongside our reforms in infrastructure funding and financing, which, as the member knows and the member sitting next to her knows, is fundamental to getting more houses built in New Zealand.

I think of the housing challenge as like a trifecta. You’ve got to get the land-use policy done in a comprehensive way. You’ve got to get competitive urban land markets. You’ve got to get the infrastructure funding and financing arrangements right, and you’ve got to get the council incentives lined up so that councils don’t just see growth as something to be ambivalent about or—frankly, many times—hostile to.

They’ve got to see growth as something that’s a good thing because housing growth is in all of our interests, not least the Government’s, and in 20 or so minutes the Minister of Finance will present the mini-Budget and the Half Year Economic and Fiscal Update. I’m not breaking any Budget secrets when I say that the previous Government spent an enormous sum of money every year on housing subsidies—around $4 billion a year once you add up income-related rent, the accommodation supplement, and the tragedy that is emergency housing—and in due course we will have to do what we can to sort that out.

Our planning laws affect almost every aspect of our lives, and it is really important that we get them right. I acknowledge the contribution from Rachel Brooking—the letter, which I will ponder and consider over the summer break, and we’ll come back to her around our sheer desire to create a better New Zealand and a better planning regime. But for now, we have come to the view that the regime put in place by the last Government would have been a retrograde step. We sought at the election a mandate to get it off the statute book.

I regret the use of urgency. I’m not a fan of urgency in a general sense, but I think it is justified in this case because there’s a 10-year transition window, and if we hadn’t got it off the statute book by Christmas, people would spend an enormous amount of time and money over the Christmas period and the new year—spending time and money on a regime that the Government made clear wasn’t going to exist at some point in the future.

So it’s better to get it off the statute book now and start again, and that’s what we’re going to do, and that’s what the Government is seeking a mandate for from the Parliament, and, with that, thank you very much, Madam Speaker.

Hon RACHEL BROOKING (Labour—Dunedin): Thank you, Madam Speaker. A lot to respond to in that contribution from the Minister responsible for RMA Reform about me. So I’ll start with that. I don’t normally—

Simon Court: Show us your hands.

Hon RACHEL BROOKING: Yeah—yes, I know. It was an interesting comment—something about my hands not being clean.

I’m very proud to have been a member of that Randerson review group. It did make me just so interested and motivated in becoming a politician, because I knew that the Resource Management Act (RMA) wasn’t working and that it did need changing. I’m happy to say that I came to that review group with a very open mind about some things which were then decided in that review report and became the Spatial Planning Act and the Natural and Built Environment Act. So I came to that with an open mind about whether we needed separate environmental-type regulations from urban planning. The experts that we consulted with and people that we talked with were very clear that it’s very difficult to separate those two issues and leads to more complications. So that is why the Randerson review said no to that idea.

I also came to that group with a very open mind about whether or not the RMA could simply be amended, or whether new legislation was required. I’ve listened to Sir Geoffrey Palmer many times at many conferences and his arguments that the RMA wasn’t broken, that it was the implementation around it that was the problem. So I came to that group with that in mind. However, again, we heard time and time again that, fundamentally, the RMA was broken. This is to do with it being so focused on effects, and the whole regime being driven down to that consenting decision-making process. That is expensive. That kept me employed for almost 20 years. That’s not a job I want to go back to. I’ll put that on record here—that’s my conflict: I don’t want to become a resource management lawyer again. I think there shouldn’t be so much GDP in our system at that consenting end.

I’m also, obviously, very interested in the environmental outcomes of the legislation. Of course, they weren’t working under the RMA, and we need clear direction and clear environmental bottom-lines. But my professional interest in this has been always focused on the efficiency of the system and trying to take people—like old Rachel—out of the system, because, really, we should be having clear debates within the community about those planning trade-offs that are always made. As the Minister said, planning is always difficult. People are going to have different views. I said in one of the other speeches, somebody loves a highly modified landscape; somebody else wants to put what I think is a very beautiful wind turbine on it. There’s a debate to be had. Those debates should be higher up the food chain, not at the consenting level.

That is what these two Acts that have been repealed today did, because it is a complicated system. So rather than everything being at the regulatory stage, there was the Spatial Planning Act. That was to say, “Let’s look—let’s look—into the future. Let’s look about where we want to put growth.”—but also, very importantly, where we don’t want it. We just heard the Minister say that there’s a housing trifecta of some sort. I don’t particularly disagree with the issues that he raised, but he missed a really important one, and that is hazards, climate change, and climate change adaptation. We know that there are areas that don’t have houses on them at the moment, where we don’t want to ever put houses—that that would be the wrong place to put houses, because we know that there will be sea-level rise, we know that there will be higher-intensity winds, and we know that there’s going to be higher-intensity rainfall. So there are areas of the country that we don’t want to put more houses. So it’s very important that we have that all mapped out in spatial plans.

Of course, I was very pleased that my contribution to the Spatial Planning Act was to get the word “map” into that Act—eventually. We want to able to see—see what’s going to happen, see that different things happen over different time frames as well. But we also want to know where that infrastructure is—where that existing infrastructure is—that the Minister was talking about in terms of those efficiencies of where you put houses. Obviously, there’s a lot of infrastructure that needs to go with them. If you can intensify areas, then there will already be some existing infrastructure. Some of it might not be big enough, though, so to be able to have those considerations in that spatial planning exercise is very important.

The Minister’s spoken a lot of times about how, “Oh, well, it wasn’t coherent. We’ve got other things going on.” He keeps talking about local government reform. I don’t think that’s something I heard in the Speech from the Throne—I welcome one of the National speakers to correct me on that if I’m wrong—or, particularly, in manifestos either, about major local government reform. So if the reason for repealing the Spatial Planning Act is that there is going to be local government reform, I think that is a very interesting idea, and it’s certainly not one that I’ve heard mentioned before this, until this debate today.

I also heard, again, from the Minister, talking about his involvement, when he was on the Environment Committee, about hearing various submissions. I remind everyone that that was a very fulsome select committee process. It had an exposure bill for the Natural and Built Environment Bill—for the first part of that, for the purpose clauses; that went through its own submission process. The select committee reported back to the House, and then we went through the process of the Natural and Built Environment Bill and the Spatial Planning Bill as well. There were many, many submissions on those bills. A lot of those submissions had very useful amendments suggested. They were picked up by the select committee. So what came into the House in the first reading was very different to what came into the House at second reading, and then, again, there were changes made in the committee of the whole House stage as well. All of these things were done to improve the bill.

As I said in one of my speeches on this bill that we’re looking at today, the repeal bill, the importance of renewable energy was not at issue. Everybody agrees about the importance of renewable energy. There were some sections around the time frames for renewal consents, and they were changed in the process. We had debate in the committee of the whole House stage today about what was clause 58 of the Natural and Built Environment Bill—I think it might have become a different numbered section in the Act—and what that was going to do with the planning framework. That included many useful things that would be in that national planning framework, including on hazards, including on papakāinga housing, which we’re hearing about today.

So it’s a great shame that we are not going to have all of that national direction combined into one so it’s not in conflict with each other. Of course, at the moment, it is in conflict with each other. There was a process there, in the Natural and Built Environment Act, to make it coherent. This is really important for users of planning legislation. It is very difficult to be going around, if you are either a council, if you’re trying to draft up your plans, and you have one national instrument telling you do one thing, like build those—grow; you don’t build pine trees—grow the pine trees, and look after that water quality. What are those councils supposed to do? You get lots of lawyers involved, and I go back to where I started: that they just shouldn’t be in the system when the Government could be making clear national direction, and doing that national direction to deal with issues that we haven’t spoken about much in the past, and that is the likes of the sponge cities and the importance of green infrastructure—all things that really came out strongly through the select committee submission process and that were embraced by the select committee. My recollection was that all of the select committee was very interested in what we are doing about hazards and how we are planning for the future. So it’s a very sad day indeed, today, and I condemn this bill.

Hon JULIE ANNE GENTER (Green—Rongotai): Tēnā koe, Madam Speaker. Tēnā koutou e te Whare. We have so many opportunities to do things better. We have so many opportunities in Aotearoa to live more in harmony with nature—to use energy more efficiently, to produce more green, fully renewable electricity that is low cost, and to ensure that our towns and cities are places where people love to live; where our children have the freedom to get around under their own steam, to get to school by walking or cycling or scootering, if that’s what they wish. That benefits everyone.

They could have the freedom to do this, but it requires doing things differently. And for many decades, we had harmful planning rules that came in after the Town and Country Planning Act that made it more difficult for our kids to walk and cycle to school. So in the last 30 to 40 years, kids stopped walking and cycling to school. Parents, rightly, are concerned about the safety of their kids when there’s fast-moving vehicles, larger vehicles, big SUVs, and utes. And then, when parents have to drive their kids everywhere, that actually reduces the freedom and independence the kids have, but it also makes traffic worse. It makes our transport costs higher.

It’s not just pollution. I mean, people do have a right to live free from pollution, but it’s not just climate change that’s the issue. Fundamentally, our transport system is inefficient and it limits the freedom and ability of people to move around.

We have the ability, and the responsibility, to do the right thing, to do things better. Our planning rules aren’t just around urban development—that’s my big focus: the opportunity to do urban development better—it’s also about environmental bottom lines. I have had many colleagues speak in this debate on this bill during the committee of the whole House stage and during the prior stages of this debate. Lan Pham, freshwater ecologist and two-term regional councillor, spoke to the absolute passion communities have had, and the evidence that supports it, with over 50 experts, to have clean water. We could have clean, healthy water, and we don’t have it now.

My colleague Steve Abel was talking about tree protection. Urban trees make so much sense. They reduce the pressure on our reticulated water system, they make our towns and cities healthier and happier places to be, and they’re just so vitally important. But if we don’t have blanket tree protection, then what happens is we lose that tree cover, and with it we lose the water management that it brings, we lose the native birds, we lose the shade and the climate control—we lose all of that. That’s why tree protection is so important. Scott Willis, who for many years worked in renewable electricity and tried to get a community wind farm up and faced the barriers—I know the old planning regime to get renewable electricity up at a community scale. So the Green Party is full of people who have been passionately working to solve some of these problems, to deliver better outcomes for the community, and to be responsible.

The legislation that’s being repealed today wasn’t perfect, but it went through an incredibly thorough process, with two select committees. That second one attracted 3,000 submissions. Now, I heard the Minister—I asked this question to the Minister during the committee of the whole House stage: I asked what experts said that this Natural and Built Environment Act and Spatial Planning Act were worse than going back to the Resource Management Act, and he couldn’t name a single person. He referred to the select committee process, where there were literally thousands of submissions. One of the most disturbing things—to me, I think—was that he didn’t seem to understand that when people came to the select committee process and raised their issues, the Government then responded and there were further stages of the bill before it was passed through to being an Act. I spoke to some of the people who were concerned about things that were in the bill at select committee, like Manawa Energy, like people who were concerned about Te Mana o te Wai. Well, the Government actually responded to all of those concerns and so the final Act didn’t represent what was at the select committee. So all of this really just exposes how shallow the people in the new Government are, how shallow their knowledge is, how poor their respect is for the democratic process. They went out there, didn’t pay much attention to what was actually happening, or any constructive improvements to it; instead, they mindlessly opposed, in Opposition, everything the Government was doing.

They have no clue. The Minister doesn’t even understand the difference between the Spatial Planning Act and the Natural and Built Environment Act. He’s repealing both of them, even though the Spatial Planning Act is fundamentally a different piece of legislation that was making improvements. But he doesn’t know, because he didn’t do the work in Opposition. All they did was shallowly oppose everything in a bid to get more votes, in a bid to get into Government. But I think the people of New Zealand would have reasonably expected people elected to Government to take a fulsome approach, a robust approach, and not to throw everything out when a bunch of it was actually really useful—a bunch of it was actually useful.

So here we are: the one thing being kept is fast-tracked consenting. Now, that’s not really a surprise. The truth is that the current people who are in Government, who found themselves in a position of responsibility, are not going to exercise that responsibility on behalf of all the people of New Zealand, our future generations, or our environment. Oh no, no, no, no—they are here to represent the existing power structure of people who currently have all the money and power, and they’re going to maintain that and make sure that they can make more money, that they can continue to exploit workers and our environment.

Now, I don’t doubt that there are some people sitting over there who don’t realise that that’s what their Government is doing—they truly think they believe in efficiency and better outcomes and good value for money and protecting the environment in a responsible way. But when you look at the reality of what is in this bill, there was an alternative scenario. The Minister Chris Bishop could have not rushed through urgency to repeal six years of work, where thousands of people submitted, where we spent a quarter of a billion dollars getting the advice and doing the work to come up with a new system. We could see how it was working and make adjustments to it. But instead, they’ve decided to repeal it all within three weeks of Parliament starting—throw out all of that effort.

Personally, I hate waste. And what breaks my heart is coming to this House and seeing the wasted time and effort that could have gone into good legislation, that could have produced better outcomes for our people, for our planet. The current Government throws it all away because they haven’t bothered to try and understand. They don’t actually believe in democracy—they’re here to preserve the existing power structure. The people with the most power and money want to keep on exploiting the environment, want to keep on exploiting workers, and it suits those people.

They need to think long and hard: if you came to this place because you truly believe in solutions, how do the people sitting opposite feel about watching such a shoddy approach to lawmaking, to watching $250 million of taxpayers’ resources, public resources, being wasted and thrown down the drain? And how do they feel—how do they feel—about knowing that over 50 percent of our freshwater waterways are at threat? What is their answer? What is their constructive solution? Why are they delaying the clear national direction that is needed for regional councils to be able to bring in the rules that will actually protect our fresh waterways now and into the future? Because if we don’t act very soon, extinction is for ever—extinction is for ever.

The members opposite clearly believe that they’re in the born to rule class, that they’re the responsible ones, that they’re somehow going to come up with solutions that are going to look after not just the people who are currently the most powerful but the long-term benefit of our natural environment. Because what is happening today is a mindless oppositional repeal from a Minister who’s not across the detail, who doesn’t actually know what’s being repealed, and is going to have to start over the work from scratch. But what they are going to do, and I have no doubt about this—and people watching at home need to know this—is they’re going to use this fast-track consenting to ride roughshod over environmental bottom lines and communities in order to help vested interests achieve the outcomes they want, and ultimately it’s all about conserving the status quo: doing more of what we already know.

You know, the definition of insanity—we’ve heard it many times—is doing the same thing over and over again and expecting a different result. When it comes to protecting our natural environment, when it comes to futureproofing climate-resilient communities and building cities that welcome and work with nature, that enable freedom and a future for our children, the current National - New Zealand First - ACT Government has no vision, they have no ideas, and they’re going to be here to maintain the status quo and the existing power structure. The Green Party will continue putting up positive solutions—this bill is not one.

SIMON COURT (ACT): The ACT Party is proud to support the repeal of the Natural and Built Environment Act and the Spatial Planning Act and the maintenance of a fast-track opportunity for businesses and organisations that want to get on, get a consent, and start building things that produce value. Because unless we do that in New Zealand, we will continue the economic and social decline that the previous Labour Government perpetuated. There’s nothing that signals more clearly the confusion between the need for economic and social growth and environmental protection—the failure to identify a suitable balance—than the Acts we’re repealing here today.

It’s true that resource management reform is long overdue and much delayed. In the early 1990s, I studied resource management law. I proposed to a lecturer that a property development model’s consent conditions would fly through a hearing, and that my development would be given a tick by the commissioners, and that my contractors would be able to start work within a few short weeks. Well, my lecturer told me back in the 1990s, “That’s not how it works, Sonny Jim. You’ll just have to spend a bit more time spending money on resource management lawyers and arguing with commissioners about consent conditions.”

But it turns out all the things that we’ve learnt how to do well, whether it’s erosion and sediment control, whether it’s identifying where threatened bat species are roosting in trees and when is the best time to fell the trees because the bats have moved on—we know all that information. We don’t need the Natural and Built Environment Act or the Spatial Planning Act to send us back 30 years to have a bit of a navel-gazing exercise for further decades on how to resolve the conflict between developing land, economic growth, and environmental protection.

Now, I’ve heard from some members of the Opposition that because the former Minister David Parker spent a quarter of a billion dollars in developing the Natural and Built Environment Act and Spatial Planning Act, we should just let it go and we should just accept that. Well, the ACT Party does not believe in the sunk cost fallacy that has led to the sinking of the Interislander proposal and will no doubt lead to the sinking of many more Labour sunk cost fallacies. Time to pull the handbrake on. Let’s turn this four-wheel drive, New Zealand, around.

Now, I want to describe what a future resource management reform might look like. There was a gentleman who participated in founding one of the world’s modern and greatest States, George Washington. He said that freedom and property rights are inseparable. You can’t have one without the other. Freedom to build means reducing the number of people who can object to the things you want to build, whether you’re a land developer, whether you’re a public asset owner, or whether you’re somebody who just wants to build a distribution warehouse so that your goods can find their way to customers and not have to argue about the colour of it or whether it sticks up a little bit higher than your neighbour’s building.

We need to focus on trade-offs. Land development and economic development lead to social development and social uplift. Protecting things just for the sake of it or because some members of this House, some political parties, believe we can return to some kind of year zero pre-human environmental state—completely unrealistic—completely unrealistic. Future resource management reform must focus on the benefits of development while protecting the places that New Zealanders value and regard as special.

That is what this coalition Government will be bringing in 2024. ACT supports this bill. I commend it to the House. Let’s go, New Zealand.

JAMIE ARBUCKLE (NZ First): Thank you, Madam Speaker. I rise on behalf of New Zealand First to take a call in the third reading of this bill, the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Amendment Bill. As I do that, I say that it was interesting hearing through the readings of this bill, especially from our coalition partners. Some of us, probably, on this side of the House have worked very much with the Resource Management Act (RMA), and I am one of those people, and it is ironic that today I stand in support of going back to the RMA. But it is actually this complexity that we have in front of us with the Natural and Built Environment Act (NBA) and the Spatial Planning Act that has put us into this situation.

It was always ironic to me. With the NBA, it almost sounds like a basketball game. Basically, what we are dealing with here today is a basketball player with the wrong ball going down a court, and we’re actually going to throw that ball out of court and get the right one back on there.

In section 5 in Part 2 of the RMA, the purpose of the Act is really what we should be concentrating on, and the RMA and the purpose of this new NBA is something that we haven’t really explored in this House in this debate. But as we got wider in the NBA proposal, the complexity that that would have brought into the resource management planning would have just been so much and so complex. To me, also adding in the issues around the Treaty and putting the principles of the Treaty into the NBA would just cause that much complexity for users, and it gives people uncertainty.

The fast tracking—we look forward to that. The New Zealand First Party also looks forward to other changes to fast tracking as we go ahead, but having that interim fast tracking retained is something we definitely support. It is also giving certainty to people outside of this House, going forward, of what we are actually doing.

So New Zealand First commends this bill to the House today, and I am proud to stand up for New Zealand First and to actually see that legislation put into the bin.

DEPUTY SPEAKER: This call is a split call.

DEBBIE NGAREWA-PACKER (Co-Leader—Te Pāti Māori): Tēnā koe e te Pīka. Tēnā tātou e te Whare. I guess I’ve got to start by, first, commending the Government. You went out to change the course of history, and indeed that is what you have started and achieved. You are going to go down in history as being one of the most destructive and backward-thinking Governments we’ve ever seen in Te Ao Māori.

I get why you’re comfortable picking a fight with Māori, and I’ll say it again: you have parties, like ACT, that got 1 percent of the Māori vote; you’ve got New Zealand First, who got 4 percent of the Māori vote; and National, who got 5 percent. Together, collectively, you got 10 percent of the Māori vote.

Hon Member: A lot more than that—a lot more than that.

DEBBIE NGAREWA-PACKER: And I hear you say, “We had an election”, which indeed you did. But you did not get a strong mandate from Māori, and as the party that got 30 percent—in fact, seven times more than some of you—and who got six of the seven Māori electorate seats, I can confidently say that you are not supported by Māori at all, and especially in this legislation.

We had before us the opportunity to make things better and, unlike everyone in the House today, I’m speaking from the fact that Te Pāti Māori did not support it with Labour. We did not support the Resource Management Act (RMA) changes with Labour, because they weren’t enough. When we look at what it is you’re proposing, I have never seen anything so backward in my life. And I have worked in the RMA space for years and years. You are a Government that prided itself with the National Iwi Chairs. You were part and parcel of working with the iwi in technical aspects of the regulations for the Environmental Protection Authority and for Ministry for the Environment. You were part and parcel of working with iwi on the best practice guidelines—you’ll remember this, David—between iwi and oil companies. You had a record that showed your true intent with the Māori communities.

Te Mana o te Wai, te Oranga o te Taiao—those were kaupapa you supported. And in good will those in Whanganui, Te Awa Tupua; those in Taranaki, Te Maunga Kāhui; those in all our electorates were really supportive of what it is that you were proposing to do. The truth is that what you are doing is you have done some of the most offensive exclusions and amendments that we’ve ever seen. So we question why you replaced—why you deliberately replaced—“Te Tiriti” with “the Treaty of Waitangi”, knowing only 50 rangatira—only 50 rangatira—signed the Treaty. Five hundred rangatira signed Te Tiriti. Why would you convert to the English version, knowing that—

David MacLeod: Point of order. I’m hearing the word “you” throughout the speech here, and I understand that’s not actually appropriate. It should be via the Speaker.

DEPUTY SPEAKER: Thank you to the member for that point of order. It was something I was going to mention at the end of the speech. I wasn’t going to interrupt the speaker, but now that you’ve brought it up, yes, saying “you” is bringing the Speaker into the debate. So perhaps if the member could talk about “the Government members”.

DEBBIE NGAREWA-PACKER: My apologies for that offensiveness. I guess it’s really hard—

DEPUTY SPEAKER: I’m not offended, by the way. I’m just trying to upkeep the rules.

DEBBIE NGAREWA-PACKER: Thank you—appreciate it. We have questioned why it is that we have reverted to the English version, which we all know. I guess it’s probably like your “Te Papa” moment—that you accept that Māori ceded sovereignty. Māori did not cede sovereignty. We are watching this Government erode our rights and interests, under urgency, without so much as engaging with a single iwi and hapū. I look at some members of the Government who have been out in communities asking to support these communities in their wind farms and their ocean, asking to support these communities and their iwi with their economic aspirations, and I really look forward to the conversations that this Government is going to have going forward.

We also questioned the Minister—on the same page, 83—about why “hapū” has been removed. We understand that we’ve got iwi still included, but for some reason hapū have been removed from the bill. This is an erosion of rights and interests of those who make up Aotearoa. Again, I totally understand that this Government doesn’t have a Māori mandate, but the Government must—must—respect hapū and iwi rights and interests. You cannot wipe us out. You can remove hapū from the bill, you can remove our reo from your agencies, but we will not, as tangata whenua, go away.

DEPUTY SPEAKER: The word “you”—just remember. I know it’s hard.

DEBBIE NGAREWA-PACKER: I appreciate it. So, hiding in urgency—this is a party that is all about bottom lines. As long as it’s just above dead, this Government is about right. Mauri ora is a top line kaupapa. Te Awa Tupua, Te Maunga Kāhui, all these kaupapa have been about—te Oranga o te Taiao. They are about mauri ora and about keeping up with the top line of what we require, aspirationally and, most importantly, for our future generations. We have a Government that has absolutely provided certainty: it has provided certainty to mana whenua, tangata whenua, iwi, hapū, whānau across Aotearoa, and you have set the tone for your next three years. We do not support the changes and the repeal that this Government has put to us. Kia ora rā.

LAN PHAM (Green): Tēnā koe, Madam Speaker. This Government’s gone-by-Christmas approach is a recipe for continuing with short-term, ad hoc development, determined by the whims of individual property developers and companies instead of true community consensus, where tangata whenua had a stronger voice in an integrated ki uta ki tai or mountains to sea planning framework—one that, while imperfect, actually had a chance of delivering positive outcomes for all New Zealanders.

And I do want to reflect that with all the huff and puff of the debate of this repeal, it can be really easy to lose sight of what everyone’s really even talking about and why it all even matters. But I want to assure the Government that the repeal of this bill matters. It matters to the 3,000 submitters who gave their time, energy, and expertise, contributing to this fit for purpose environmental management system that—although it went nowhere far enough in recognition of the tino rangatiratanga of tangata whenua—was a step in the right direction. It matters to every New Zealander—tangata whenua and tangata Tiriti—who has ever turned up to their usual swimming, fishing, or mahinga kai spot to find themselves risking their own or their loved ones’ health from simply drinking, swimming, or coming into contact with contaminated rivers, lakes, and oceans, and will have to wait years longer for any improvements.

It matters to ratepayers who welcomed the ability of their councils to actually claim the costs of monitoring, investigation, or prosecution from the person or company responsible for any non-compliance instead of this coming from ratepayer funds. It matters to those growers—and, actually, literally anyone who consumes food who wanted better protection of high-quality rural land and elite soils from urban sprawl; improvements to ensure our environmental laws were better monitored, enforced, and complied with; and a built environment that actually reduces the risks from natural hazards and climate change. It matters to the thousands of consent holders who are already going above and beyond to protect and restore the environment and meet their consent conditions, when the few individuals that we see letting the majority down through serious environmental and resource consent breaches are met with pitiful and ineffective fines that were substantially increased through these Acts as critical deterrents to unacceptable environmental damage.

It matters to councils—it matters because their ability to suspend or end the consent if there was ongoing or repeated failure to implement the consent conditions is now removed. It matters to all the consent applicants: iwi, hapū, councils, courts, and the public, who will now need to continue to wrestle with interpreting the plethora of over 100 different Resource Management Act (RMA) plans and policy statements when the Acts would have reduced this number to 16. It matters to any and every person in Aotearoa who wants to leave a healthy, thriving environment to our kids, our grandkids, and future generations, because that is what true prosperity looks like. In fact, there is so much about this bill that it is repealing that matters—that it reveals that this Government’s action in repealing these acts amounts to nothing more than costly political pettiness.

But the ultimate disappointment in all of this is the short-sightedness. It’s the lack of understanding that the very real limits to our vulnerable environment need to be respected, and it’s the immeasurable value of ecological integrity and upholding Te Tiriti that this Government does not seem to understand. But I appreciate that that may all be a bit of a down buzz, because ‘tis the season to be jolly. So I guess from this Government to all New Zealanders, it’s a Merry back-to-the-RMA-death-by-a-thousand-cuts Christmas for them and our precious te taiao; environment—again, leaving our kids, grandkids, and future generations to pick up the pieces and ultimately pay the tab. And that is something the Greens will never support. Kia ora.

DAVID MacLEOD (National—New Plymouth): New Zealand’s economy inextricably relies on the use of our natural environment, and it needs to remain healthy for all people’s wellbeing—ngā tāngata katoa. The art is to get the tension between both the economy and the environment balanced. A regime that allows the use of the environment while protecting it, a regime that achieves this outcome as efficiently and effectively as practically achievable—that is what this bill seeks to realise, and I commend the bill to the House.

Hon Dr MEGAN WOODS (Labour—Wigram): All good policy starts with the problem definition. What we’ve heard from the Government is that the reason why they are taking New Zealand backwards, back to 1991, into a piece of legislation that is no longer fit for purpose is because the legislation put in place by the previous Government was difficult and it made it difficult to get things done and was bad for the environment. What we’ve had is the Minister in charge of this legislation, the Hon Chris Bishop, and indeed the Prime Minister, the Rt Hon Christopher Luxon, going around trumpeting as one of the key examples of why this needed to be taken back is because it was so difficult to get renewable energy projects over the line.

Wind farms was something that was often touted. Their case in point was West Wind farm here in Wellington, where both Chris Bishop and the Prime Minister would claim that that project took anywhere between seven to 10 years to get consented. This is a fallacy. This is incorrect, and it is wrong. That project took six months from the time of lodging that consent with the Wellington City Council. There was 18 months in the Environment Court. So from consent to the decision coming out of the Environment Court, it was three years, not the seven, eight, or 10 years that we’ve had the Minister in charge, and indeed the Prime Minister, running around telling New Zealanders that it took.

And that is a problem, not just because they are wrong and have been misleading with the information that they’ve been giving out, but it speaks to the problem of putting this legislation through urgency. That is the point of select committee. That is the point of scrutiny. That is what our legislative process in New Zealand is based on, and the ability for submitters to have a say and to be heard. When we have a Government that doesn’t even understand its own problem definition and is intent on rushing through legislation by Christmas, that is where we are running into a huge amount of problems.

The legislation that is being repealed is legislation that is about getting that balance between protecting our environment and making sure that we can enable activity in our economy that needs to be enabled. This was not rushed legislation; this was legislation that went through scrutiny after scrutiny after scrutiny. And were there problems that were identified through that process? Of course there were. I know, sitting on the ministerial advisory group, that in the areas I was responsible for, an issue was highlighted that the legislation, as it was in the bill, was not permissive enough in terms of reconsenting of hydroelectricity assets. So we changed it. We listened to the submitters, and we made the change to the bill before it was passed into the Act that is being repealed today. And that is what good legislation looks like, not something that is being pushed through by a Government that can’t even understand its own problem definition.

And then what we have is that we have the Government still saying it’s so hard to get things consented, but they’re going to keep the fast-track provisions that our Government put in. No wonder, because if you want to look at how you actually get that balance right, how you can see the progress that needs to be made, you need to look no further than the fast-track consenting provisions that our Government put in place after COVID as a means of stimulating activity in the economy but that actually work so well that they were carried over to be a permanent feature of the new planning framework in the legislation that we’re repealing today.

So if I have a look at what was achieved there, nine solar panel projects were approved through that. That was nearly 1.9 million panels that were approved to go through the fast-track process. That is 1,147 megawatts of renewable electricity generation through those projects. To put that in context, the Clyde Dam is 432 megawatts. What we are talking about is something that was nearly three times the output of the Clyde Dam, and that was only solar panels, because there were also wind farms that went through that. Three major wind farm projects were also approved to go through fast-track consenting—again, equal to the Clyde Dam. Of the, I think it was, 108 projects that were referred through the fast-track process that we had—15 of them being green and renewable energy projects—was four times the capacity of the Clyde Dam.

Show me the problem definition, members on the Government side. We are not hearing it. You’re saying—sorry, not you, Madam Speaker; you would never say such a thing, but the Government is saying that it is too difficult to get things done. We are talking about four times the capacity of the Clyde Dam in electricity generation being approved to go through a process in a matter of months, and we are told that that is somehow broken.

We’ve also had Chris Bishop come and say that he is truly a progressor for going backwards, that he is somehow putting forward constructive solutions. Well, I’m sorry, Mr Bishop. All he is presiding over as a Minister is taking New Zealand backwards and showing the lack of vision that this Government holds. All that could be campaigned on was to repeal, not even the replacement of it. The replacement—I might not agree with it, but I could have some respect for it if there was an idea and a vision of what it was going to be replaced with.

But we have a party and parties that are forming this Government that failed in the nine years they were in Government to get Resource Management Act (RMA) reform over the line—they tried and tried and failed and failed again—now coming back, repealing, and saying, “Trust us. Magically we will be able to do something.” Well, we look forward to that, because the track record isn’t great, and instead, we’re going to be going round and round in circles, stuck in 1991 land with a set of planning and environmental provisions that do not understand climate change, do not understand the modern Treaty relationship as has evolved today, does not understand the issues around water shortages, even the multiple amendments to the RMA. Everyone was in agreement. The RMA was broken and needed fixing.

We had the Minister, Chris Bishop, come down and say, “Well, you did it. A previous Labour Government, when they’ve come in, they repealed things too.” And he gave the example of us repealing the Employment Contracts Act. We certainly did, but we just didn’t repeal that stain on our statute books; in our time in Opposition we had come up with an alternative, and that is what this Government is failing to do.

What was put in place—I just have to have a little something I prepared earlier—is the Employment Relations Act of 2000, a comprehensive piece of legislation that was put in place with ideas, vision, and thinking of what we thought a modern employment environment would look like. Are we seeing that from the Government in terms of a comprehensive piece of legislation that shows vision for what they want to do instead? I might not agree with it. I might agree with parts of it. I might disagree with parts of it. More likely than not we would hold different views on bits of it. But I would have more respect if there were parties that could front up to this Parliament and put through something substantive that showed what they wanted to do, not where they wanted to take New Zealand backwards to.

So if we look at the Employment Relations Act—the Minister brought it up as the great comparator that he was bringing in there—this legislation that we replaced it with and the thinking we had done in Opposition promoted concepts of good faith and fair bargaining. It brought in mediation, it brought in personal grievances, it established the Employment Relations Authority and the Employment Court, and it promoted collective bargaining. There was substance with what was being replaced.

This is a Government that has no ideas. This is a Government that has no momentum to take New Zealand forward. All it can do is go backwards to the future, and what we will see is New Zealand worse off for it. This is a Government that has no plan to how it’s going to cut emissions and meet our emissions reduction budget. It has no plans how it is going to have constructive 21st century Treaty relationships, and that is what has been shown in every contribution in this House.

I look forward to a day when we have a Government on those benches actually proposing what they are going to do rather than what they are going to undo, because someday they will need to front up and share what their vision for New Zealand is.

MIKE BUTTERICK (National—Wairarapa): Thank you, Madam Speaker. There’s no doubt that Labour’s new Acts will just simply make it harder to get things done. We’ll be developing our own Resource Management Act reform programme to make it easier, not harder, to do things. We’ll build a new planning system to make it easier to consent new infrastructure. And importantly, in my electorate—central Hawke’s Bay, Tararua, Wairarapa—and across New Zealand, farmers must be allowed to farm, growers to grow, and builders to build so our economy can actually maintain its viability in the world markets. I look forward to the repeal of this legislation today.

Hon Dr DEBORAH RUSSELL (Labour): Madam Speaker, thank you for the opportunity to speak on this bill. I wish to begin by just reflecting on a quote which was offered to this House by the member from the ACT Party, a quote which he attributed to George Washington, asserting that freedom and property rights are inseparable: you can’t have one without the other. I looked at the language of that quote, and I thought, that language doesn’t seem right for someone who is speaking in the 18th century. It just doesn’t seem right. So I googled. I googled some more and hunted around. That particular quote is often attributed to George Washington, but there is no evidence whatsoever that he actually ever said it. In fact, it was an evidence-free quote from the member for the ACT Party.

There’s a couple of things that come out of that. First of all, this happens to be an evidence-free repeal from the National Government. It stems from nowhere but a desire to undo everything that the previous Government has done. That’s despite the fact that the National Party itself, when it was last in power, tried for nine years to get reform of the Resource Management Act 1991 (RMA) through, and couldn’t do it. Everyone recognised that there was a problem with the RMA.

Now, these Acts that we put through when we were in Government—the Natural and Built Environment Act 2023, the Spatial Planning Act 2023—were evidence-based legislation. It was a long and evidence-based process, starting with the Randerson committee going through an exposure draft of the legislation, an exposure draft that the Environment Committee spent months—years—looking at it in order to make sure the legislation was good legislation.

Going on from that exposure draft, it went into the actual select committee process. So there was a very long select committee process during which the legislation was improved, which is exactly the purpose of a select committee process. There was a whole lot of evidence that sat behind this legislation. It was good legislation, and it is being taken away to replace with what? Diddly-squat. Just nothing, absolutely nothing.

I want to talk about that again, because one of the fascinating things about the era in which George Washington was operating, in which the founders of the American republic were operating, was one of negotiation, of consideration, of debate, of considering issues back and forth. The American Constitution didn’t come out of nowhere, and it is a document that encourages conversation and negotiation. This is exactly the process that we went through with the legislation establishing the Natural and Built Environment Act and the Spatial Planning Act—it was a process of negotiation and discussion.

Indeed, that is the characteristic of most of the legislation that goes through this House—negotiation, discussion, reflection, evidence, consideration, often done by the incredible officials we have working for us in the various Government departments, and expressed in a regulatory impact statement, expressed in various ways. But even that was done away with by this Government over here.

So the process behind this bill is flawed. There is no conversation about it. It was a simple “Let’s get rid of it”. It’s a process that overturns the evidence, the hard work, the negotiation that went on for nearly six years in order to get it right. We took our time, we got it right, and we worked on it to improve it as we went through—tossed in the bin by this Government, which, so far, has not introduced any legislation of its own. All it has done is introduce repeal bill after repeal bill after repeal bill after repeal bill, undo, destroy, destruct things, completely refuse to negotiate, do not engage in a long process that we have established in this Parliament and in this country for ensuring that there is good legislation that governs us, governs our property rights, governs the way we interact with each other. It is a disgrace, and the National Party should be ashamed.

Dr HAMISH CAMPBELL (National—Ilam): I rise to support Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill. I stand as a representative of the National Party and I’m proud of my team members who, before coming into this House, have done many great things in their lives, from farming through to agriculture to horticulture. They have been at the brunt of this and they will tell you that the last thing the country needs is this unworkable legislation, holding up the construction of renewable energy, farming, and many other productive things that this country needs. So I commend this bill to the House.

Hon PEENI HENARE (Labour): Madam Speaker—reo Māori. Ā, tēnā tātou e te Whare. Kua tae tātou ki te wāhanga tuatoru o te haerenga o tēnei pire me taku hiahia kia whakaatu atu ki tēnei Kāwanatanga i te ngako o ngā nawe e pākau atu ana ki tō tātou iwi Māori, ngā whakaaro o te iwi Māori e pākau atu ana ki tēnei pire, me te hiahia kia mōhio pū ai ēnei hunga i te hōhonutanga o ngā whakaaro me te reo Māori, tā te meakua rongo atu ahau i ētahi kei tērā taha o te Whare e kōrero Māori ana, e whakahua ana i ngā kupu Māori.

Tēnā pea anei te tauira kia whakaatuhia atu ki a rātou te hōhonutanga o tōku reo Māori. Mai i anamata, ka kōrerohia e ōku tūpuna o Ngāpuhi mō te ao i tupu nei rātou, mō te taiao i tupu nei rātou, mō tā rātou tirohanga ki te ao me te whenua ka nohoaia e rātou. Anā, me pēnei te tauira.

“Ka hanga nei i tōku whare: ko Papatūānuku te paparahi, ko ngā maunga ngā poupou, ko Ranginui e titiro iho nei te tuanui”. Ka whakarāpopoto ake ahau i tērā whakataukī. Nā e kōrero atu ana te whakataukī mō te nohoanga o Ngāpuhi ki roto o tōna ake whenua, ki roto anō hoki i tōna ake rohe.

Nā ka tae ki te taima o te Tiriti o Waitangi. Mō ngā mema kei tērā taha o te Whare, me kī pēnei au ki te Whare: ki roto i te wāhanga tuarua o te Tiriti o Waitangi, ka kī atu te Tiriti o Waitangi ki ngā rangatira o te whakaminenga te tino rangatiratanga o ō rātou whenua, ō rātou kāinga, ō rātou taonga katoa.

Ka kōrero anō au i tērā kōrero: ka hoatu ki ngā rangatiratanga o te w’akaminenga te tino rangatiratanga o ō rātou whenua, ō rātou kāinga, me ō rātou taonga katoa. Ka taea e tētahi te kī atu, “āe, he pātai kei roto”. Engari ko tāku e mea atu ana, ki tā te Māori, horekau he pātai. He mea māmā noa te kite atu i ngā kupu me ngā ngako o aua kupu ki roto i te Tiriti o Waitangi.

Nā ka tae mai ki ngā taima o tōku oranga. Ka kapohia ake e ahau ētahi kōrero mai i tōku iwi, o Ngāti Hine. Anei te kōrero a tōku matua, a Tohe Ashby, tohunga o Ngāti Hine: “Kua roa rawa a Ngāti Hine e whakapaipai ana, e whakarauora ana i ngā mahi taiao ki roto i te rohe. Ko tā mātou mahere tuatahi e pā ana ki te taiao i tukuna ki te tari kāwanatanga i te tau 1990. Koinei te mahere ā-iwi tuatahi i tukuna atu ki te Kāwanatanga. Kei roto i te mahere e kōrero ana i ngā mahi rangatira a Ngāti Hine, me ngā kaupapa i mahia e Ngāti Hine ki te tiaki i te taiao, anā, kia tāmatahia ngā repo o te taiao, anā ki te whakarauora anō hoki i ngā momo taonga pēnei i te kūkupa, pēnei i te tuna.

I tēnei wā, he wāhanga poto ki roto i te reo Pākehā e ai ki a Tohe Ashby.

[Well, greetings to all of us in the House. We have arrived at the third stage of the passage of this bill, and I would like to show this Government the thrust of the issues that our Māori people are shouldering, the opinions of the Māori people that they are carrying about this bill, and I want these people to truly understand the depth of the opinions and of the Māori language, because I have heard some people on that side of the House speaking Māori, and uttering Māori words.

Perhaps this is the example to demonstrate to them the depth of my Māori language. Since former times, my ancestors from Ngāpuhi spoke about the world in which they grew up, the environment within which they grew, and about their perceptions of the world and the land that they lived in. And so, the example should go like this.

“I will build my own house: Papatūānuku is the floor, the mountains are the supporting pillars, the roof is Ranginui that is looking down upon us”. I will summarise that proverb. So the proverb speaks about how Ngāpuhi lived on their own land, and in their own region.

And then we get to the time of the Treaty of Waitangi. For the members on that side of the House, I should say to the House: in the second article of the Treaty of Waitangi, the Treaty of Waitangi guarantees the leaders of the assembly the sovereignty over their lands, their homes, and all of their taonga.

I will repeat that statement: it gives the leaders of the assembly the sovereignty over their lands, their homes, and all of their taonga. Someone can say, “Yes, there are questions in there”. But what I am saying is that, according to Māori, there is no question. It is perfectly simple to see the words and the substance of those words in the Treaty of Waitangi.

And then we come to the times of my life. I will grab some of the statements of my people, of Ngāti Hine. This is the statement of my patriarch, of Tohe Ashby, expert of Ngāti Hine: “For a long time, Ngāti Hine has been improving and revitalising the environmental work within the region. Our first plan regarding the environment was submitted to the Government. Within the plan, it speaks about the noble efforts of Ngāti Hine, and the initiatives that were conducted by Ngāti Hine to protect the environment, you see, to restore the wetlands of the environment, and also to revitalise particular kinds of taonga like the wood pigeon, and like the eel.”

At this time, a short section in the English language according to Tohe Ashby.]

To be a good kaitiaki is a responsibility not a right. It is a responsibility that we as Ngāti Hine are born with and one where the right answers for the future are the best found by the first understanding and the knowledge and wisdom left to us by our tūpuna.

Anei ngā kōrero a ōku mātua, a ōku tūpuna e pā ana ki te taiao. Ko tāku e mea atu ana ki tēnei Whare, e hoa, ki roto i tēnei pire ka haukoti i te mana i kōrerohia ai e te Tiriti o Waitangi, i mahingia ai e ōku mātua tūpuna ki roto i ngā tau tekau tata kua pahure ake nei, me te whakaaro ake he aha te take e pēnei ana te Kāwanatanga? Ahakoa tā rātou tohetohe ki roto i te Whare e mea nei, “oh, kei konei mātou mō te katoa o Aotearoa”, e hoa ki roto i tēnei pire me wā rātou mahi kua kite atu kua kaupare ake i ngā mana tūāhua, anā i te mana o tōku iwi, o te iwi Māori.

Ka tīkina ake e ahau tētahi atu kōrero. E 35 tau ki muri, i tukuna atu e tōku tupuna, e Tā Hēmi Henare, tāna kerēme ki mua i te aroaro o te Taraipiunara. E mea nei te kōrero ko Wai 49. Anā ko te tikanga o tēnei kerēme ki mua i te aroaro o te Taraipiunara kia werohia te Kāwanatanga i taua taima nā te mea i tūkinohia e te Kāwanatanga tōna awa o Taumārere, anā me te wāhi ataahua rawa atu i Pipiri, arā ko te Moana i Pikopiko-i-whiti.

Ā te Pēpuere e tae mai nei, ka haere atu ngā mema katoa o tēnei Whare, anā, ki te Moana i Pikopiko-i-whiti, arā ko te Bay of Islands. Kei reira i hainatia ai te Tiriti o Waitangi, ko taku tono ki tēnei Kāwanatanga, tēnā, haere mai ki runga i a au, ki runga o Waitangi. Ko reira totohe ai tātou i ngā kaupapa ki roto i tēnei pire.

E hoa, tīkina mai te mea hei whakapākehā ake i taku kōrero, whakapākehā ake i taku kōrero.

[These are the statements of my forebears, of my ancestors, regarding the environment. What I am saying to this House, my friend, in this bill the authority that was spoken about in the Treaty of Waitangi is cut off, the efforts of my ancestors over the last 10 years, and the thought occurs why is the Government behaving like this? Despite their contention in the House that says, “Oh, we are here for all of New Zealand”, my friend, in this bill and their actions it can be seen that they are averting situational mana—i.e., the mana of my people, the Māori people.

I will take another quote. Thirty-five years ago, my ancestor, Sir James Henare, submitted his claim before the tribunal. It is known as Wai 49. And the purpose of this claim before the tribunal was to challenge the Government of the time because the Government had abused his river, the Taumārere, and that exceptionally beautifully place in Pipiri, i.e., Te Moana i Pikopiko-i-whiti.

In the coming February, all the members of this House will go, you see, to te Moana i Pikopiko-i-whiti, i.e., to the Bay of Islands. That is where the Treaty of Waitangi was signed. My appeal to the Government: come to me and my people, come to Waitangi. There we will debate the topics within this bill.

My friend, grab the device to translate my speech, to translate my speech.]

Simon Court: It’s on the screen—I’m reading it.

Hon PEENI HENARE: Āe, ka kite engari kīhai koe i kite; ka rongo engari kīhai koe i rongo. Koinā hoki tāku e mea atu ana me tiki atu te mea ki tō taringa.

Ka kī mai taku tupuna i tūkinohia e te Karauna tōna awa o Taumārere, i tūkinohia e te Karauna tōna moana, te Moana i Pikopiko-i-whiti.

Nā ki roto i ngā tau tekau kua pahure ake nei, i tarai mātou o Ngāti Hine, o te ao Māori, te mahi ngātahi ki te Kāwanatanga kia whakatutukihia ngā kōrero kei roto i te pire i whakamanahia e te Rōpū Reipā i nāini tata ake nei. Anā ko te oranga o te taiao; anā ko Te Mana o te Wai; anā ko ngā mana whakahono ā-iwi. I rongo atu ahau i ngā kōrero a te Minita, kīhai au e whakapono ki wāna kōrero ka whakamanahia aua tūāhuatanga ki roto i ngā mahi kei mua i a tātou.

Kua kōrero mai ōku hoamahi mō te korenga o tētahi matakitetanga mai i tēnei Kāwanatanga ka pēhea ina ka whakakorengia tēnei o ngā pire. Nō reira e te Māngai o te Whare, kua rongo atu ahau i ngā amuamu a wētahi me te hōhā ki tōku reo Māori. E hoa, ka kī atu ahau ki tērā tangata i tupu mai taku reo Māori i tōku whenua. Nō te whenua pū tōku reo Māori. Kia kaua tētahi e haukoti nei i tōku reo Māori ki roto i tēnei whenua, ki runga anō hoki i tēnei o ngā whenua taurikura o te wā kāinga nei.

Koinā te take o tērā o ngā pāti, he kūare. He kūare ki ngā kōrero tuku iho o tēnei whenua, o ōku mātua, o ōku tūpuna. Ko te tono atu ki tērā mema me ngā mema katoa o tērā taha o te Whare, haere mai ki runga i a au, ki runga o Waitangi ki reira kōrero ai tātou i te take. Haere mai ki te hui o Rātana. Kāore e kore ka tae mai. Haere mai, ko reira ka werohia anō e te ao Māori tēnei Kāwanatanga me wā rātou mahi haukoti i te mana motuhake a te Māori.

E tino whakahē nei mātou i tēnei pire. E whakakorengia te pire i pahure ai tō mātou Kāwanatanga. Tirohia ki ngā kupu, e te mema, tirohia ki ngā kupu “mana whakahono”, tirohia ki ngā kupu “te oranga o te taiao”, tirohia ki ngā kupu “Te Mana o te Wai”.

Koinā te mate ki roto i tēnei pire, ka mutu e te Māngai o te Whare, kua tohua nei e tēnei Kāwanatanga tā rātou mahere ki roto i ngā tau e toru kei mua i a tātou. Anā ko tāku e mea atu ana ki tō tātou iwi Māori: kia mataara mai, kia rite mai; he pakanga kei te haere. Kua kite atu i ngā mahi kaupapa here a tēnei Kāwanatanga, me tāku e mea atu ana kei konei mātou te ao Māori e whakakorengia, e tū ana ki runga i tō mātou ake mana motuhake, he mana motuhake nō tua whakarere, ka kore tētahi e haukotingia.

Kīhai au i tautoko i tēnei pire.

[Yes, you see but you do not see; you hear but you do not hear. That is what I am saying, grab the device and put it to your ear.

My ancestor said that the Crown abused his river of Taumārere, and the Crown abused his sea, Te Moana i Pikopiko-i-whiti.

So in the last 10 years, we, Ngāti Hine, and the entire Māori society, attempted to work together with the Government to bring to fruition the statements within the bill that was enacted by the Labour Party recently. That is, the health of the environment; that is, the power of water; that is, the iwi participation arrangements. I heard the statements of the Minister. I do not believe his statements that those features will be enacted in the activities that are before us.

My colleagues have spoken about the lack of a single prediction from this Government about how things will go if this particular bill is repealed. So I have heard the complaints of some and their irritation with my Māori language. My friend, I say to that person that my Māori language grew out of my land. My Māori language is from right in the land. Let no one cut off my Māori language in this land, and also on this prosperous land of this home.

We absolutely oppose this bill. It repeals the bill that our Government passed. To the member, look to the words, look to the words “iwi participation agreement”, look to the words “the health of the environment”, look to the words “the power of water”.

That is the issue of that party—they are ignorant. They are ignorant of the history of this land, of my forebears, of my ancestors. The appeal to that member and all the members on that side of the House is come to me—and my people—come to Waitangi where we will discuss the issue. Come to the meeting at Rātana. There is no doubt that you will come. Welcome, and there this Government will again be challenged by the Māori people, and also their actions to cut off the self-determination of the Māori.

That is the problem with this bill, and furthermore, this Government has signalled their plan for the three years that are before us. And so what I am saying to our Māori people: be vigilant, be ready; a battle is coming. We’ve seen the policy activities of this Government, and what I am saying is that we are here, Māori society that is being dispensed with. We stand on our special authority, a special authority passed down to us from former times. It will never be cut off.

I do not commend this bill.]

KATIE NIMON (National—Napier): I am thrilled to be speaking in the third reading of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill. This bill, in its 1,300 pages, just added to the storm of reform on local government. Local government have lost their democracy in the Resource Management Act reform that the previous Government put forward. We must not waste a moment of time in getting this bill repealed. So with that, I commend this bill to the House.

A party vote was called for on the question, That the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Bill be now read a third time.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

Bill read a third time.

Bills

Employment Relations (Trial Periods) Amendment Bill

First Reading

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): I present to the House a legislative statement on the Employment Relations (Trial Periods) Amendment Bill.

DEPUTY SPEAKER: The legislative statement is published under the authority of the House and can be found on the Parliament website.

Hon BROOKE VAN VELDEN: I move, That the Employment Relations (Trial Periods) Amendment Bill be now read a first time.

The Employment Relations (Trial Periods) Amendment Bill extends the availability of 90-day trials to all employers. It repeals the previous Government’s policy of restricting this availability of trial periods to only small businesses. Currently, only employers with fewer than 20 employees can include a trial period of up to 90 days in their employment agreements. By extending the 90-day trial periods to all businesses, this will make a huge difference to the flexibility of the labour market, because large businesses employ around 72 percent of all employees across New Zealand.

The bill is being debated under urgency because in this Government’s coalition agreement for the first 100 days we want to restore business optimism, scrutiny, certainty, and confidence before Christmas. This Government has inherited a bleak economic outlook thanks to the previous Government’s reckless spending and over-regulation. There is no time to waste in getting labour market settings right to ensure both businesses and workers can keep their heads above water.

The 90-day trial periods were introduced in 2009 for small businesses and were extended to all employers in 2011. Extending the 90-day trials was part of a package of reforms that’s intended to reduce costs, support more effective and efficient processes, and improve workplace productivity and flexibility. In 2019, the previous Labour-led Government restricted the availability of trial periods to smaller employers—those with fewer than 20 employees. This Government has heard the message loud and clear from businesses that they want 90-day trials back, and this is a Government that will deliver.

Whether a business has two or 200 employees, bringing on any employee takes time, it takes money, it takes risk, and it’s in the best interests of both the employer and the employee to have the right fit in the workplace. Getting the wrong person can have a detrimental impact on a business and the whole culture within a workplace. Employers have consistently highlighted that the costs associated with dismissing an employee and the risk of a personal grievance claim can make them reluctant to hire a new staff member. Apart from the costs of the dismissal process, retaining an employee who is a poor fit for a business can have a detrimental effect on the overall workplace as a whole. It will only take one worker who’s got a poor attitude or simply doesn’t have the right skills for the job to perform their duties to take down an otherwise very productive team.

The costs and risks associated with this dismissal process could lead to a labour market with fewer employment opportunities, particularly for those people who are doing their best to get a foot in the door. The costly dismissal processes can also make workplaces less productive. When businesses can only employ a certain number of people at a time because they are resource-constrained, having a worker who is a poor match for the job can mean that more suitable job candidates end up missing out when they could have been in the best interest of that company.

I have heard from businesses time and time again that expanding the availability of the 90-day trials would be one of their top priorities when it comes to lifting unnecessary regulations that they face every day.

This bill will help farmers. Unlike most businesses, farmers don’t just offer prospective employees a job but they ask them to live on the property, because it’s common for farmers to provide on-farm accommodation as part of their employment.

Retailers have said that the 90-day trial has meant that employers have to be prepared to take a risk to bring on new staff members who may not be the best fit, and we need people who are given the opportunity to prove themselves—people who have a chequered employment history or a criminal background may not be given the opportunity because they don’t have that ability for their business owners to take a chance. BusinessNZ identified that reinstating the 90-day trials was an election priority, and the Employment and Manufacturers Association did as well.

This bill is intended to encourage employers to take on new staff by reducing risk in their hiring process. It’s particularly the case when employers are considering employing someone who doesn’t tick all the boxes. They might not have the right skills, they might not have the right experience, but they might have the right attitude, and this is a Government that says we should give them a go.

Workers who are just starting out in their career and they’ve had a break from working or they’re looking for a change will benefit from this bill. Workers that might be considered risky will benefit from this bill.

Starting a business is incredibly brave. Taking on employees is incredibly brave. This bill will provide more flexibility in the labour market, which is good for both employers and employees. I commend this bill to the House.

CAMILLA BELICH (Labour): Wow! Here we are, under urgency, with another week of this Government taking New Zealand backwards, and another bill attacking working people. I note the Minister can’t even speak for her full allocated time, even though we are in urgency and there’s no select committee process, and I have sympathy for the Minister because there is absolutely nothing to back up this policy that she is putting though to extend trial periods. Her own officials, in the regulatory impact statement (RIS)—and I do commend the officials for actually producing one in relation to this bill—say, “What shall we do? Should we extend this? No. We should stick with the status quo.” That’s what it says in the RIS produced by the Minister’s own officials.

So what could the possible reason be for doing this and for extending this policy? Is there evidence that it actually does increase hiring? Is there evidence that it makes it easier for people to actually get work or hire people? No. The evidence says exactly the opposite, and this isn’t my evidence. This isn’t trade union evidence. This is evidence commissioned by Treasury. Treasury says that it doesn’t make a difference, so why are we doing this? The only thing I can come up with is that this Government hates working people; you hate working people.

This is the second bill in two weeks to go under urgency that makes absolutely no difference in benefits to working people. It may have some benefits in the sense of employers not wanting to go through fair processes to actually dismiss employees, which is totally available under New Zealand law. If you have an issue with performance or if you have an issue with conduct, you can go through a fair process and that employee can be dismissed in New Zealand. That can already happen.

So I was interested to read on the cover of The Post this week that the Minister of Finance said that she believes in leadership and that it’s important to take New Zealanders with her, and I ask this Government: which New Zealanders are they taking with them? Not working people, for sure. The first thing they did through urgency was change the Reserve Bank mandate to take the importance off jobs. The next thing they did was repeal fair pay agreements—attacking wages of working people, and conditions. Another thing that they did in their second week in Government: attacking jobs again. This Government is not the Government for working people. It is taking their rights away with every single breath it takes for absolutely no benefit to the economy.

If you look at this research conducted and commissioned by the Treasury, you will see that there is absolutely no benefit, on a macro scale, of this policy to the economy. It doesn’t increase hiring, it doesn’t increase the number of people that are taken on, and it doesn’t make things better for people who are vulnerable. The only thing it does is increase the likelihood of injustice for people who are engaged in work to be dismissed unfairly.

It is a shame and a travesty on this Government that they would, under urgency, decide to bring through a bill to this Parliament that doesn’t help employers—it doesn’t—and it doesn’t help people that are looking for work. It just extends a policy which is shown in evidence not to work.

We’ve heard again and again that this Government, for some reason, doesn’t need to have evidence or arguments to back up this policy, and we’ve seen the Minister not able to articulate that over her full call, because there just isn’t anything to back that up. I would say to the members opposite that electoral mandates do not excuse bad lawmaking. Electoral mandates do not excuse bad lawmaking, and this is bad lawmaking. There is no select committee process. There is no ability for New Zealanders, who have strong feelings about trial periods, to be able to submit to the select committee process and tell you that impact that it would have on their lives.

Actually, I won’t have time to go through it in the first reading, but I have got examples that have been proactively sent to me by members of the public wanting to make a submission on this piece of legislation and not being able to. I’ve examples of people emailing me and saying, “When will the select committee process be, Camilla?”, and I have had to say to them, “Unfortunately, the Government that has been elected has decided that they do not want to hear from you. Your views that you would normally be able to expect in a normal select committee process are not valid.” I think this Government should be ashamed of that because this is a ridiculous, pointless piece of legislation that just makes it more unfair for people.

As we have seen, and as the Minister went through, it was brought in in 2009, when it was 20 employees; in 2011, it was all employees; in 2019, it was back to 20; and in 2023, it is back to all employees. There is no clarity and no purpose for this bad law, and I do not commend it to the House.

DEPUTY SPEAKER: The time has come for me to leave the Chair. The House will resume at 2 p.m.

Sitting suspended from 1 p.m. to 2 p.m.

House resumed.

Speaker’s Rulings

Oral Questions—Question No. 2, 19 December 2023

SPEAKER: Members, I’ve reviewed the exchange that occurred during question No. 2 yesterday, and the allegation that family members were brought into debate. At one point during the question, I said “All I’m saying is that it has been a fairly longstanding convention in this House not to bring family members into the debate.” I think most members would agree with that. On review of the footage and reading the Hansard, it’s clear to me that family came into the debate by way of an answer. I’ve looked at all the supplementary questions that were asked of the Prime Minister and, despite points of order to the contrary, they were all in order. I would note that the answer to the primary question did open things up to a much more political exchange. Any suggestion that the Leader of the Opposition brought family into the debate is wrong. It was done only by way of answer.

I unreservedly apologise to the Leader of the Opposition, the Rt Hon Chris Hipkins, for any implication to the contrary from my intervention quoted above. I will be more vigilant in the future.

Urgent Debates—Applications Submitted during Urgency

SPEAKER: I’ve had a request for an urgent debate from the Hon Grant Robertson seeking to debate, under Standing Order 399, the Government’s mini-Budget. It’s not generally possible to hold an urgent debate during urgency. That is because an urgent matter is part of general business held at the start of a sitting day—Standing Order 66(1). Until urgency ends and the House adjourns, it’s considered to be a continuous sitting day. We won’t have any more general business until we have a new sitting day. Therefore, there is no opportunity to consider an application for an urgent debate at present. The only way to hold an urgent debate would be for the member to seek leave of the House.

Hon GRANT ROBERTSON (Labour): Point of order. I seek leave of the House for an urgent debate to be held on the Government’s mini-Budget immediately following question time, using the allocation of calls normally allocated for an urgent debate.

SPEAKER: Leave is sought. Is there any objection?

Hon Members: Yes.

Rt Hon Winston Peters: Point of order, Mr Speaker.

SPEAKER: I’m on my feet, though.

Rt Hon Winston Peters: Well, it’s a point—

SPEAKER: No. When I’m on my feet, you can’t do anything. I’m in total control here. Have a seat. Take a seat. [Rt Hon Winston Peters sits down] Right—I’ll sit down.

Rt Hon WINSTON PETERS (Deputy Prime Minister): These are early days, Mr Speaker. You’re quite right, but, logically, if you didn’t sit down, I couldn’t have my point of order. My point of order is very simple, and I couldn’t hear very clearly, but I thought I heard some people from the Labour Party saying no as well.

SPEAKER: That is not a point of order. It’s not at all helpful to the order of the House.

Hon Grant Robertson: It’s also not true.

SPEAKER: Whether or not it’s true is something that the House itself will determine, but I would very much doubt that it is the case.

Petitions, Papers, Select Committee Reports, and Introduction of BILLS

Petitions, Papers, Select Committee Reports, and Introduction of BILLS

SPEAKER: In accordance with a determination of the Business Committee, there is a paper for presentation.

CLERK: Half Year Economic and Fiscal Update 2023.

SPEAKER: That paper is published under the authority of the House.

Oral Questions

Questions to Ministers

Question No. 1—Health

1. DEBBIE NGAREWA-PACKER (Co-Leader—Te Pāti Māori) to the Minister of Health: Does he stand by his statement on the disestablishment of Te Aka Whai Ora, “My dream is to devolve decision making and funding and give to mana motuhake, as close to the home and hapū as possible”; if so, what structure and funding models will he use to achieve it?

Hon Dr SHANE RETI (Minister of Health): Yes, I stand by my statement. The dream is to lift mostly every health metric for Māori. I’m still working with my officials on how this will look and am excited to work collaboratively with our coalition partners to ensure that we achieve better health outcomes for all New Zealanders. That is because there is one thing we can all agree on: New Zealanders are suffering from six years of broken promises and misguidance from the previous Labour Government. The latest clinical performance metrics, released yesterday, show that Māori and all New Zealanders are suffering, with longer wait times in the emergency department, for their specialist assessment, amongst many other issues. We believe the devolution of decision making and funding to those on the front lines will help drive better health outcomes and that the hapū probably know what’s best for their communities.

Debbie Ngarewa-Packer: What assurances can he give, if any, that the Māori health commissioning budget for Te Aka Whai Ora will stay ring-fenced for Māori health providers at the same level of funding currently in place?

Hon Dr SHANE RETI: The leader has already given indications that funding that is appropriated for Māori health will remain with Māori health.

Debbie Ngarewa-Packer: How will he ensure that the recommendations of the Wai 2575 Māori health claim are implemented in the new Māori health structure and investment model?

Hon Dr SHANE RETI: We seek to improve Māori health outcomes—which is also the endeavour of the Wai claim—and we have every intention of doing that.

Debbie Ngarewa-Packer: What will now be the monitoring mechanism to ensure accountability for Māori health outcomes as achieved by Te Whatu Ora?

Hon Dr SHANE RETI: We could contend whether that was truly achieved by Te Aka Whai Ora, but we are working through structural mechanisms to make sure that there is monitoring in place for Māori health outcomes.

Debbie Ngarewa-Packer: What specific decisions has the Government made on baseline funding, delegations, and the role of iwi Māori partnership boards under the new system?

Hon Dr SHANE RETI: We’re working through appropriate structures and delegations for how we can improve Māori health outcomes.

Question No. 2—Finance

2. NANCY LU (National) to the Minister of Finance: What does the Half Year Economic and Fiscal Update say about the state of the New Zealand economy, and what steps is the Government taking to respond?

Hon NICOLA WILLIS (Minister of Finance): Our Government has inherited challenging economic and fiscal conditions. Inflation and interest rates remain high, the economy is contracting, and unemployment is beginning to rise. The forecast, or so-called surplus, in 2026-27 has been eroded to a wafer-thin $140 million. Treasury has identified $7.2 billion of fiscal cliffs, although we expect that figure to grow in the coming weeks and months. In response to the cost of living crisis, Kiwis have tightened their belts. Today, the Government tightens ours. My message to Kiwis is that after six years of economic mismanagement, our Government is presenting a new chapter.

Hon Kieran McAnulty: Point of order. Thank you very much, Mr Speaker. Yesterday, and on a number of occasions last week, you warned Ministers about using Government questions to make commentary or to attack the Opposition. Now, particularly in light of the Opposition being unable to debate this today because the Government declined leave, I think we should be particularly vigilant about that with this question.

SPEAKER: Question time is a time for the Government to be accountable for itself, and answers should not refer to what are perceived political failings of any other parties in the House.

Rt Hon Winston Peters: Point of order, Mr Speaker. With respect, this is meant to be a debating chamber, where the issues of the day should be discussed and argued, not some antiseptic Chrysler ad. It is about real issues—in this case, who’s responsible for them—and to think that an Opposition, who arrived there only a few weeks ago and who were in control, don’t want to have their record examined belies democracy and question time itself.

Hon Grant Robertson: We can’t have a debate—

Rt Hon Winston Peters: Well, you can have a debate on those matters, and we knew you were never going to get an urgent debate—we knew you’d try—because inexperience is what you were famous for. But the fact is that this matter will be discussed next year as well.

SPEAKER: So I am bound by Speakers’ ruling 181/3. I am simply saying that there are lots of ways you can say things without it being an open attack.

Nancy Lu: What economic challenges are outlined in the half-year update?

Hon NICOLA WILLIS: As high interest rates bite, the economy is set to stall and unemployment is set to rise. Inflation is expected to finally come back into the target range in the second half of next year but will remain a challenge in coming months. That’s why our Government is moving quickly to get inflation back under control, by getting Government spending under control with a programme of fiscal sustainability and unshackling businesses from the red tape that has been slowing them down. There is much more to do on rebuilding New Zealand’s economic engine, but today’s announcements are a good start.

Nancy Lu: What fiscal challenges are presented in the half-year update?

Hon NICOLA WILLIS: Government spending this year is around $15 billion higher than forecast just two years ago. That’s the product of loose fiscal policy, with spending vastly outstripping any growth in revenue. The results of this, if left unchecked, are more debt, more inflation, and a delayed return to surplus. Looking forward to next year, the Government faces at least $7.2 billion of fiscal cliffs, with funding for a number of initiatives set to expire. That is why we are kicking off a fiscal sustainability programme to ensure New Zealanders can have confidence that their money is being spent responsibly and so that we can deliver effective and efficient services for them to rely on.

Nancy Lu: What savings have been finalised by the Government to date?

Hon NICOLA WILLIS: Since being sworn in just a couple of weeks ago, the Government has finalised $7.5 billion worth of savings and revenue initiatives, which were announced earlier today. Those savings reflect a series of decisions made by Cabinet to stop work on broken programmes like light rail and Lake Onslow but also to lock in the reprioritisations required to deliver tax relief next year. After years of watching Government grow and grow and grow, with little positive impact for real people, our Government is reining in wasteful spending so New Zealanders can keep more of what they earn.

Nancy Lu: What future steps is the Government taking to restore fiscal discipline?

Hon NICOLA WILLIS: Fiscal sustainability isn’t a one-off exercise; it’s about delivering a long-term culture of discipline and responsibility. That’s why we are setting out more savings to be delivered heading into the Budget next year, with an initial baseline exercise delivering an annual savings of $1.5 billion and further work on new revenue measures and other efficiencies from Government programmes. In 2017, the outgoing Government inherited much better conditions than we are facing. Today, we face high inflation, high interest rates, large deficits, a recessionary economy, and rising unemployment. This is the result of poor economic management, and it’s why we are so committed to getting the books back on track.

Hon Grant Robertson: Can the Minister confirm that in the half-year economic update, unemployment is projected to peak at 5.2 percent—lower than had been projected at the pre-election fiscal update?

Hon NICOLA WILLIS: The member is correct. However, unemployment is rising from where it is today, according to these forecasts, and I am conscious—and I hope the member is conscious—that that percentage represents real people who, due to the state of our economy, are set to not have jobs. That is of concern to me.

Hon Grant Robertson: Can the Minister confirm that the Treasury, on page 6 of the Half Year Economic and Fiscal Update, have indicated that issues such as tax revenue declining represents a risk to whether or not the Government’s decisions will be fiscally neutral, and, in fact, this means New Zealanders may see a worse economic outlook as a result of her tax cuts?

Hon NICOLA WILLIS: The member can be assured that Treasury knows the greatest risk to the Government’s book is a big-spending, ineffective Government, and that chapter has closed. That is why the Treasury, on page 6, state that it is anticipated that under this new coalition Government, “once combined with the other signalled commitments in the Mini Budget”—i.e., our tax plans—“[that are] expected to be agreed in the future, the overall impact would be broadly neutral over the forecast period.”

Hon Grant Robertson: Can the Minister confirm that the paragraph after the one she just read out said that “Once the Mini Budget decisions and other commitments are reflected into the forecasts, there will be changes in the composition of some key indicators … there is a risk that once decisions are fully reflected into the economic and fiscal forecasts, the overall fiscal impacts may not be neutral”?

Hon NICOLA WILLIS: That is why we are working to ensure that our tax package is neutral, and I do have to say that being lectured by someone who broke every spending limit they ever set themselves—I can’t really take it that seriously. Given the state that member left the Government books in, he should stop lecturing about fiscal responsibility. Not only will we spend better but New Zealanders will have more money in their bank accounts, and we’ll be proud to deliver.

Rt Hon Winston Peters: Could I ask the Minister of Finance as to whether she’s concerned about the potential serious underlying unemployment as a result of the colossal figure of 128,000 immigrants being brought into this country at the end of October this year by the Labour Government?

Hon NICOLA WILLIS: I have two concerns. The first concern is that after a period of extremely restrictive immigration settings, the Government then moved so swiftly to reopen immigration settings that it has failed to put in place adequate controls, and we’ve seen that with the evidence of migrant exploitation and we are seeing that we are currently experiencing levels of immigration that are unsustainable. That is why the Minister of Immigration is looking very carefully at the ill-disciplined systems that were left to her by the outgoing Minister. I also have another concern—if you’ll let me, Mr Speaker—and that is that the previous Government allowed the jobseeker numbers to grow so significantly, even during a period of low unemployment, and our Government is committed to getting more people from welfare into work.

Question No. 3—Prime Minister

3. Rt Hon CHRIS HIPKINS (Leader of the Opposition) to the Acting Prime Minister: Does he stand by all his Government’s statements and actions?

Rt Hon WINSTON PETERS (Acting Prime Minister): In the context in which they were made, and within the facts known at the time, most definitely yes.

Rt Hon Chris Hipkins: Does he agree with the Prime Minister that he is not hung up on the use of the name “Kāinga Ora”, or does he agree with the National - New Zealand First coalition agreement that says, “All public service departments have their primary name in English except for those specifically related to Māori.”?

Rt Hon WINSTON PETERS: On this side of the House, we don’t have hang-ups—that’s number one. The second thing is we admit the majesty of the Māori New Zealand language, and it’s an intellectual muscle-builder for a young person and we’ve encouraged it from the time we arrived in Parliament, some of us. But that said, community housing, or housing the community, has become not that; it’s become some woke virtue-signalling thing where people don’t get housed, and where housing displacement—or people waiting for houses—went up by a massive 33 percent. So we want delivery on policy, not virtue signalling any longer.

Rt Hon Chris Hipkins: Does he agree with Chris Bishop that “Kāinga Ora is known as ‘Kāinga Ora - Homes and Communities’, I don’t know a single person who calls it ‘Homes and Communities’”, and is that within the spirit of the National - New Zealand First coalition agreement that all Public Service departments have their primary name in English except for those specifically related to Māori?

Rt Hon WINSTON PETERS: Well, Mr Bishop was saying something terribly honest, and everybody understands it, and everybody can sympathise with it because the essence of all communications is understanding and comprehension, excepting over there [points to Opposition benches]. They’d rather virtue signal so that most people don’t know. I can tell you now that when it comes to Waka Kotahi, or Kāinga Ora for that matter, people are concerned about getting a safe, affordable house. They want to get roads that are tarsealed and potholes that are fixed up, not some virtue-signalling thing which has certain people over there thinking that that’s what people want for public policy. Ordinary, hard-working New Zealanders can expect something better.

Rt Hon Chris Hipkins: Does he agree with Winston Peters, “The announcement today that New Zealanders will now have a direct pathway to citizenship in Australia is a monumental success that should be celebrated and congratulated”, or does he agree with David Seymour, “Actually, we just got played by the Aussies. They’ve done a raid on New Zealand talent”?

Rt Hon WINSTON PETERS: I have to say that—not by any sense of bias—I prefer the first comment, because every now and again, even a fool can get it right. Mr Hipkins went over there and spoke to “Albo”—Mr Hipkins went over to there and saw “Albo” and “Albo” saw the reasonableness of our complaint. And it arose yesterday, when it came out that someone who left this country at two years of age was sent back here as a 501—that’s wrong. But in the big picture, Mr Seymour was right when he said this, because he could have expected two Labour Ministers across the Tasman to have got so much more.

Rt Hon Chris Hipkins: Does the Government still intend to raise $170 million for its tax cuts by taxing offshore gambling, or does he agree with the 2023 New Zealand First manifesto that that’s just not credible?

Rt Hon WINSTON PETERS: The purpose of good governance—and Ministers over here understand that—is to ask good questions and keep on asking good questions and get the right answer. That manifesto was setting out some very good questions—I’m still waiting for the answer—and I admit the possibility—[Interruption] No, no, because we’ve been in business and know how business works, we don’t act like that—laugh and scoff and jeer. They couldn’t run a school tuck shop. In our case, we ask good questions and we’re still waiting for the answer.

Tama Potaka: In relation to Kāinga Ora, is the Acting Prime Minister aware that the number of families on the social housing wait-list went from 5,000 to over 25,000 under the recent Labour leadership?

Rt Hon WINSTON PETERS: Could I say to the Minister of Māori Affairs, I’m dreadfully saddened to have to confirm that, but that is what happens, and it shows you the difference between a once-great party that came into this country way back in the 1930s and started building houses because they had practical people in Parliament who knew what poverty tasted and felt like, coming out of the Depression. Yet this modern version has come in with these virtue-signalling policies and done the very worst for Māori, and they stand there and claim to be the paramount voice for Māori today.

Rt Hon Chris Hipkins: Does he agree with that noted economic commentator Winston Peters that the National Government’s tax plan, “they’re going to make all this money, but every front-line economist has said, ‘Hang on, you’ve got a hole of $500 million a year.’ That’s a hole of $2.1 billion over four years. How can you pay for your tax cuts?”?

Rt Hon WINSTON PETERS: The marvellous thing about consultative politics is that you learn things and, when you’ve had that discussion, you find a solution—and the Minister of Finance has already found it.

Hon Grant Robertson: What’s that? Smoking?

Rt Hon WINSTON PETERS: No—no. Now, see, if he wants to talk about smoking and the Māori voice, they have taken from Māori and Pasifika in the last 12 years—[Interruption] Listen up. No, no, no. Can I just say, I know what my—

Hon Willow-Jean Prime: What did your iwi say?

Rt Hon WINSTON PETERS: Excuse me, don’t tell me about my iwi; I started it. The Ngātiwai Land Retention Committee—[Interruption]. Listen up, you—the Ngātiwai Land Retention Committee was started by a guy called Winston Peters in 1974-75. Right here, right now, you’re looking at the founder. So don’t preach to me about that. Now, if you want to talk about Māori and smoking—[Interruption]. No, no—I know that you’ve got no familiarity with the marae, but shouting won’t help you. I’ve got the microphone and I’ve got plenty patience, OK? I haven’t finished yet.

SPEAKER: You may not think you’ve finished, but I do. And I don’t mean that in terms of your career.

Rt Hon WINSTON PETERS: Thank you very much. Can I carry on now?

SPEAKER: No.

Rt Hon WINSTON PETERS: Point of order. With respect, Mr Speaker, they were saying something coarse. And everybody’s entitled to interject now and again, but a screaming, volatile mass like we heard over there is not what Parliament looks like. I respect their right to interject—I think it’s exciting and it makes exhilarating these debates—but that sort of clownish, cacophonic behaviour doesn’t work.

Rt Hon Chris Hipkins: Does the Acting Prime Minister agree with Winston Peters, “Sadly, the spokesperson for the National Party said, ‘If I don’t give you a tax cut, I’m going to resign’. Wow—could be a chance to have a decent Minister of Finance with a bit of experience.”?

Rt Hon WINSTON PETERS: But the member of Parliament and now finance Minister said that, is giving us a tax cut—get used to it.

Question No. 4—Finance

4. Hon JAMES SHAW (Co-Leader—Green) to the Minister of Finance: Does she stand by the principle in the Government’s coalition agreements that “decisions will be based on data and evidence”, including for economic and fiscal policy?

Hon NICOLA WILLIS (Minister of Finance): Yes.

Hon James Shaw: Has she seen any data or evidence that shows that increasing bus fares for the lowest earning New Zealanders will cut their living costs?

Hon NICOLA WILLIS: I am aware of evidence that shows that the biggest barrier to people choosing public transport is the reliability and frequency of public transport. Therefore, ours is a Government that will continue to invest in public transport infrastructure to ensure public transport is reliable and available.

Hon James Shaw: Has she seen any data or evidence that shows that increasing bus fares for the lowest earning New Zealanders will cut their living costs?

Hon NICOLA WILLIS: I have seen evidence that the living costs of lower income New Zealanders are based on a range of things. This includes their incomes and whether they are growing and how highly taxed those incomes are. This is why our Government is committed to lower taxes for middle and lower income New Zealanders. Their living costs are also affected by the inflation rate, which has been allowed to be out of control for the last 2½ years, which is why our commitment to fiscal discipline will aid in bringing inflation under control. Their living costs are affected by a range of factors, and our Government is committed to reducing their cost of living.

Hon James Shaw: What data and evidence has she seen about children’s ability to learn the basics brilliantly if they are hungry because the school lunch programme has been cut?

Hon NICOLA WILLIS: Well, obviously I’m not the Minister of Education, but I understand that the evidence to suggest that the school lunch programme has in any way increased literacy or numeracy achievement is extremely limited indeed.

Hon James Shaw: What data and evidence has she seen that shows that renters can expect to see their rents decrease as a result of the changes to the brightline test?

Hon NICOLA WILLIS: It is demonstrably evident that if the costs we place on landlords are reduced, then they will have fewer costs that they need to meet through the rents that they charge.

Question No. 5—Finance

5. Hon GRANT ROBERTSON (Labour) to the Minister of Finance: Does she stand by all of the fiscal and economic commitments made in the coalition agreements signed by National, New Zealand First, and ACT?

Hon NICOLA WILLIS (Minister of Finance): Yes, subject to final consideration and decision making by Cabinet.

Hon Grant Robertson: How, specifically, will the tax cut programme in the coalition agreements be funded?

Hon NICOLA WILLIS: The tax relief that our Government will deliver next year will be funded through a range of savings, reprioritisations, and new revenue measures. We announced a down payment, today, of $7.5 billion worth of savings we have already booked. The next step is a baseline savings exercise to reduce the back-office and consultancy spending of Government departments, and to drive more efficiency from Government programmes. We’re also initiating full cost recovery for immigration levies, enhancing the audit capabilities of IRD, and taxing online casinos.

Hon Grant Robertson: Is it correct that the funding arrangements for tax cuts were not in the mini-Budget as Nicola Willis promised throughout the election campaign?

Hon NICOLA WILLIS: It is correct that the mini-Budget contained $7.5 billion worth of savings, as well as concrete actions to deliver the next range of savings that will support tax relief. It’s also clear that under the former Minister’s watch—

Hon Grant Robertson: Oh, right. We’re moving into something you’re not responsible for.

Hon NICOLA WILLIS: —we had spending go up, up, up; tax go up, up, up; and very little delivered.

Hon Grant Robertson: Can, then, the Minister confirm that landlords and speculators can confirm that they have a tax cut, but New Zealanders, who she promised income tax cuts to, are none the wiser today about how they’ll be paid for, what they’ll be, or even when they’ll get them?

Hon NICOLA WILLIS: Well, I disagree with a number of characterisations in the member’s question. But New Zealanders should listen up: at this mini-Budget, we are bringing not just economic responsibility back, but we are giving them the guarantee that next year they will get income tax relief.

Hon David Seymour: Can the Minister of Finance confirm that she’s part of a coalition Government where all three parties are wholly committed to delivering the levels of tax relief to the people promised it, in the time frame it was promised by her all along; however, the Government is also taking advice on how to more effectively and efficiently do so, and that taking advice and considering different perspectives is a strength, not a weakness?

Hon NICOLA WILLIS: That’s right. And I would put to the member: a way of summarising that is what New Zealanders care about is the size of the sausage, not how it’s delivered. And how we will deliver it—[Interruption] It’s been a year of bad quotes from me.

Rt Hon Winston Peters: Talking about a right sausage, did she hear Mr Robertson’s interjection when he shouted out, “You’re not responsible for it”; and can she confirm that she’s not responsible for his messes, and isn’t she grateful for that?

Hon NICOLA WILLIS: With respect to the House, I think, enough talk of messes, sausages, and holes.

Question No. 6—Health

6. Dr CARLOS CHEUNG (National—Mt Roskill) to the Minister of Health: What recent reports has he received on the performance of the health system?

Hon Dr SHANE RETI (Minister of Health): The latest clinical performance metrics report released by Health New Zealand yesterday shows the amount of people waiting more than four months for a first specialist assessment, nationally, has grown enormously from 35,863 in September 2022 to 59,817 in September 2023. That is a 66.79 percent increase in just 12 months. Meanwhile, emergency department (ED) wait times have also deteriorated with only 67.6 percent of those presenting to ED being seen in under six hours. We will work with the sector to improve this.

Dr Carlos Cheung: What steps is the Minister taking to tackle the ongoing challenges around the 2020 health reforms?

Hon Dr SHANE RETI: Yesterday I announced my plans to appoint a Crown observer to Health New Zealand. This was a carefully considered decision but is necessary to work with the sector to reset a clear focus on health outcomes and to improve our health system. We will be a Government of outcomes and tackle the ongoing challenges left over from Labour’s 2022 reforms.

Dr Carlos Cheung: What action will this Government take to improve the health outcome for all New Zealanders?

Hon Dr SHANE RETI: This Government will take many actions to improve health outcomes for all New Zealanders. The 2022 health reforms were proclaimed by previous Ministers as providing better health results, but all that they achieved was more money spent and more bureaucracy while delivering longer waiting times, dire workforce shortages, and worse outcomes for all. That is why, amongst other things, we will be setting clear health targets in the new year.

Dr Carlos Cheung: What benefits will the introduction of health targets have for New Zealanders?

Hon Dr SHANE RETI: As we have seen through the clinical performance metrics and many other measures, the past six years have caused an obvious deterioration in our healthcare system, despite the hard work of the board and our health workforce. The introduction of clear targets will help change that. We will deliver better health outcomes for all New Zealanders; put simply, we agree with clinicians that health targets save lives.

SPEAKER: Yes, OK, that’s great, but don’t use question time to attack previous Governments—pretty simple.

Question No. 7—Immigration

7. RICARDO MENÉNDEZ MARCH (Green) to the Minister of Immigration: What is the Government doing to enable people living in New Zealand to bring family members here from Gaza?

SPEAKER: I’ve been advised that this answer might be a little longer. It is an important matter, so please proceed.

Hon ERICA STANFORD (Minister of Immigration): New Zealand is deeply distressed by the escalating crisis and loss of life in Gaza. In my capacity as immigration Minister, I can confirm that we are continuing to monitor the situation closely, along with our partners. I have been advised that the steps Immigration New Zealand has taken related to the Gaza conflict are to centralise applications into one office, prioritise those visa applications, and provide case by case support to the Ministry of Foreign Affairs and Trade for New Zealand citizens and residents attempting to leave Gaza and travel to New Zealand. In addition, I have been assured by the Minister of Foreign Affairs that all New Zealand citizens and permanent residents who wanted to leave Gaza have now left, and this was a priority for the new Government.

Golriz Ghahraman: Will the Minister create a special visa category for Palestinians with family members in Gaza, as was made available to Ukrainian New Zealanders in 2022?

Hon ERICA STANFORD: Our current response of prioritising visa applications from people affected by the conflict is in line with our international partners, but I can assure the member that we will continue to monitor the situation very closely.

Golriz Ghahraman: What makes the situation in Gaza different from the situation in Ukraine, given that the scale of the humanitarian crisis in Gaza is actually far worse, having claimed the lives of at least 20,000 civilians—more than 7,000 children—in the past nine weeks?

Hon ERICA STANFORD: I am advised by the Ministry of Business, Innovation and Employment that Ukraine was a different situation in that we were unable to, in that situation, work with the United Nations High Commissioner for Refugees to take refugees. However, I want to also reiterate that at that time we were working in accordance with our international partners in a global, coordinated situation to take people from Ukraine. In this situation, I am confident that we are processing visas with priority, we are escalating them where required, and we have a team set up, as I said, to make sure that that’s happening. I can also assure the member that we are using the exception to instructions process and being very permissive where we can. I’d also like to let the member know that there have only been a very small handful of applications, but all the steps that I mentioned just previously are being taken with those applications.

Ricardo Menéndez March: Is the Minister aware that the Immigration New Zealand website currently provides no practical evidence or support to people seeking to bring their family members to New Zealand from Gaza, and, if so, will she direct Immigration New Zealand to rectify this?

Hon ERICA STANFORD: I asked my officials this morning if there was some information online about this process and they assured me that there was, but I will go back to them and make sure that it is more easily able to be found, and I’m happy to also work with the member from the Greens if you’d like a briefing on this with me and my officials.

Ricardo Menéndez March: What is the average processing time for family members of people living in Gaza, and how does this compare with other family members who are trying to bring their families to Aotearoa?

Hon ERICA STANFORD: I asked that question of immigration officials this morning. It’s very difficult to know, because at the moment the number of applications that we’ve had are only divisible by offshore and onshore. So of those offshore, at this point in time, I am unable to tell how many of those people are actually in Gaza. On top of that, I’ve asked for further information to find out how many there are in Gaza. I wasn’t able to find out in the time allocated, but what we will do from here is find out how many are actually in Gaza and then what visa type they’re trying to come in on, because it matters. It makes quite a big difference in terms of the visa that they’re applying for. If it’s a visitor visa, it’s usually more quick. If it’s a resident visa, it can take a little bit longer. But I am going to find out that information as quickly as we possibly can, but we do have to go through every single application and look individually as to where they are, if they’ve given us that information.

Question No. 8—Transport

8. Hon SCOTT SIMPSON (National—Coromandel) to the Minister of Transport: What reports has he seen on State Highway 25A in the Coromandel?

Hon SIMEON BROWN (Minister of Transport): This morning, State Highway 25A reopened in time for Christmas after the completion of a new bridge following the significant damage caused by weather events earlier this year. This critical route was seriously damaged between Kōpū and Hikuai, but after impressive and hard work by the many construction workers on site, the bridge has reopened in record time.

Hon Scott Simpson: What will the reopening mean for locals and businesses and residents?

Hon SIMEON BROWN: With the busy summer holiday period upon us, today’s reopening will provide much-needed benefits for local businesses and residents in the Coromandel. Summer is a critical time for the Coromandel, and the reopening of State Highway 25A will welcome visitors back and provide a much-needed boost to the local economy. The hard-working MP for the Coromandel has strongly advocated for the reopening of this critical route, and today’s reopening brings certainty for his constituents and for mine.

SPEAKER: That’s absolutely enough. If I was strict, I’d say that Minister had no responsibility for the Coromandel economy, so just keep it tight.

Hon Scott Simpson: Is this project an example of how the New Zealand Transport Agency and contractors can work to get things done more quickly in other parts of New Zealand?

Hon SIMEON BROWN: State Highway 25A in the Coromandel demonstrates that New Zealand has the capacity and ability to deliver infrastructure at speed and within budget. The hard work of contractors and the reduction in red tape meant that this bridge could be opened in time for Christmas. The Government is committed to addressing the lengthy and expensive Resource Management Act process, fast-tracking consents to make it easier to deliver the infrastructure New Zealand needs.

Hon Scott Simpson: In his capacity as Minister of Transport, what Christmas message does the Minister have for the Coromandel, their locals, and the tens of thousands of people who will want to enjoy visiting the Coromandel this coming summer?

SPEAKER: Keep it tight.

Hon SIMEON BROWN: Well, a very merry Christmas to everyone travelling across State Highway 25A and the Coromandel. May they enjoy the beautiful road and the beautiful beaches of the Coromandel.

Tangi Utikere: Does the Minister accept that the State Highway 25A project was announced by the previous Government on 9 May 2023, began construction in June 2023, and came in under budget more than three months ahead of schedule, and has absolutely nothing to do with any actions taken by the present Government other than to simply cut the ribbon?

SPEAKER: You know that the use of questions probably does cut both ways. So I’m doing my best to make sure that the former Government doesn’t get too criticised. But the former Government should try not to use question time for that political purpose. It was skilfully done, I’ll grant you.

Hon SIMEON BROWN: As the saying goes: “Success has many fathers.” But those who deserve the credit for this impressive work for State Highway 25A are the project teams, construction workers who worked hard days, day and night, to get this new bridge. I want to thank the project team and wish all the construction workers a very merry Christmas.

Hon Chris Bishop: Is the Minister aware of previous examples of Ministers cutting ribbons on projects that may have started life under a previous Government, including projects that former political parties may have opposed before they were constructed?

Hon SIMEON BROWN: I am, indeed. In fact, I remember a certain member of Parliament for Remutaka complaining about the so-called “holiday highway” before turning up to cut the ribbon. I’m very pleased for the member of Coromandel for the hard work he’s put into this.

Rt Hon Winston Peters: Is it not a fact, Minister—[Interruption]—

SPEAKER: Just wait for a bit of quiet.

Rt Hon Winston Peters: Is it not a fact, Minister, that when, on 14 October, it was known there was going to be a new Government, work expedited, and this is not the fastest project this new Government has delivered?

Hon SIMEON BROWN: That is something which I’d love to say is correct, but I must reiterate my points: I thank all the contractors and construction workers for this project.

Question No. 9—Environment

Hon RACHEL BROOKING (Labour—Dunedin): Thank you, Mr Speaker. My question is to the Minister for the Environment. Does she stand by her—

SPEAKER: Sorry—could you start again? We’ve just got too much talk over here. Please start again.

9. Hon RACHEL BROOKING (Labour—Dunedin) to the Minister for the Environment: Does she stand by her answer given to primary oral question No. 11 yesterday; if so, which of the objectives of the National Policy Statement for Freshwater Management 2020 would she prioritise above the health and wellbeing of water bodies and freshwater ecosystems?

Hon PENNY SIMMONDS (Minister for the Environment): Yes, I do stand by my statement. We do not agree with the hierarchy of objectives, and that is why we have undertaken to replace the National Policy Statement (NPS) for Freshwater Management 2020 to ensure more balanced, enduring, and sustainable outcomes. We have been clear that we will undertake a full and robust consultation process to replace the national policy statement and rebalance Te Mana o te Wai. It would therefore be inappropriate for me to give priorities when we will be entering a full consultation round.

Hon Rachel Brooking: So can the Minister therefore confirm that she would not prioritise the objective of health needs of people over the commercial use of water?

Hon PENNY SIMMONDS: We have indicated that we would be looking for a balanced approach that would be more enduring and more sustainable, and therefore that consultation process will be with all stakeholders to ascertain all interests in fresh water.

Hon Rachel Brooking: Given her statement yesterday that she intends to customise and to have nuanced processes in place that ensure that at a community level they can be making decisions that are appropriate for that community, is she proposing to abandon national environmental standards entirely or will she retain freshwater bottom line standards?

Hon PENNY SIMMONDS: We are very clear on this side that people on the ground are the ones that know solutions, and we’ve got some wonderful examples of that with catchment groups, and so therefore we will be ensuring that our consultation is to that level of people on the ground who have the solutions who can then bring that into the new NPS.

Hon Rachel Brooking: Point of order. That question was specifically about national environmental standards, and the answer related to the national policy statement.

SPEAKER: The second part of it asked if she was going to drop some of those. The member knows that you can’t ask a “yes or no answer” question.

Hon Rachel Brooking: Will she commit to ensure that it remains the case that tangata whenua are actively involved in freshwater management, including decision-making processes, and Māori freshwater values are identified and provided for?

Hon PENNY SIMMONDS: Absolutely. We are committed to a full consultation process including iwi and various other groups that have an interest in fresh water.

Question No. 10—Rural Communities

10. JAMIE ARBUCKLE (NZ First) to the Minister for Rural Communities: What recent reports has he seen regarding rural communities?

Hon MARK PATTERSON (Minister for Rural Communities): I have seen a report—the extreme weather insights and observations 2023 report from the Ombudsman. I welcome this report but am sobered by its contents. This report writs large the necessity for improvements in rural infrastructure, transport links, and telecommunication. It highlights the plight of those in more isolated communities who felt they were ignored and abandoned by Government agencies and emergency response in favour of those places more, I quote, “in the news”. This reflects my own observations on the ground during my recent ministerial visit to Tai Rāwhiti. Rural roading was in a dire and often dangerous state. Locals, while stoic, were clearly stressed and anxious. This Government is committed to funding the recovery and not forgetting the plight of those in the Tai Rāwhiti and other cyclone-affected areas. I thank the Prime Minister; the Minister of Transport, Simeon Brown; and the Minister of cyclone recovery, Mark Mitchell, for also visiting these areas. This is a Government that has put cyclone recovery at point 6 and point 7 in our 100-day plan. It is a strong signal to those communities that we will not abandon them.

SPEAKER: Hon Mark Patterson, that was a very long answer.

Hon MARK PATTERSON: It was a good one, though.

SPEAKER: Well, not necessarily. There was a bit of superfluous stuff in there. You could do better.

Jamie Arbuckle: Has he seen reports on the increase in confidence that rural communities have in this Government’s policies?

Hon MARK PATTERSON: I have seen another report, and rural communities have every confidence in this Government. The proof of the pudding was in the fourth-quarter Rabobank Rural Confidence survey. Of course, farmers are a key driver in rural prosperity and, indeed, the prospects of all New Zealand, accounting for 82 percent of all of our merchandise exports. Their net confidence has leapt 25 percent, and I quote from the report—

Hon Shane Jones: Tell us more!

Hon MARK PATTERSON: I will tell you more. A direct quote from the report: “Government policy emerged as a major contributor to higher overall farmer confidence.” Farmers are now more confident they have a Government that understands them and has a policy platform to address their issues.

Ingrid Leary: Given his confidence in this Government, does he agree with the letter written by MP Mark Patterson, dated 7 December 2023, supporting my letter to the Minister of Education on 1 December 2023, requesting core funding of $90,000 per annum for the Tokomairiro Forestry Pathways course be provided by the Ministry of Education for the next three years, and, if so, will he commit to working with that Minister to ensure funding is forthcoming?

Hon MARK PATTERSON: I’ve already committed within that letter to taking exactly that course of action.

Jamie Arbuckle: What Government policies can rural communities look forward to?

Hon MARK PATTERSON: Well, there are too many to list, but of course the highlight for us on this side of the House is the $1.2 billion for regional infrastructure overseen by my colleague the Hon Shane Jones, and that will go some way to addressing the Ombudsman’s concerns, as outlined in his report. The fast-tracking Resource Management Act provisions will unlock regional economies and make it easier to build renewable energy projects and get access to extracting natural resources, which will turbocharge our rural economies.

Question No. 11—Education

11. RYAN HAMILTON (National—Hamilton East) to the Minister of Education: Has she seen any reports on student attendance?

Hon ERICA STANFORD (Minister of Education): I have. Today, the Ministry of Education released the term 3 attendance data—on schedule. This data shows that our attendance rates remain low, with just 45.9 percent of students attending school regularly. The data also revealed that there has been zero improvement in regular attendance rates from term 3 last year when regular attendance was 46 percent, a figure which I find incredibly disappointing.

Ryan Hamilton: Why is regular attendance important?

ERICA STANFORD: In short, a wise man once said, “To succeed in education, you need to show up. Attendance and achievement go hand in hand.”, and missing school leads to lower achievement. Regular school attendance is also connected to current and future outcomes like student wellbeing, future employment, and income levels. We have a moral, social, and economic imperative to deliver better results than were achieved over the last six years.

Ryan Hamilton: Has she seen any other reports on attendance?

ERICA STANFORD: Yes, I have. A report by the Education Review Office shows only 41 percent of parents are comfortable with their child missing a week or more of school a term. This equates to missing a year of school by the time they are 16. We need a change of direction to restore the habit of attending school regularly. Our coalition agreement with ACT commits to addressing low attendance by prioritising data reporting and enforcement action.

Ryan Hamilton: Is attendance a priority for this Government?

ERICA STANFORD: Yes, it most certainly is. Students need to be in the classroom learning the basics and on a pathway towards educational success. We will continue to ensure the right supports are in place to help families get their children to school. We will continue to work with schools to understand the local drivers of absenteeism and how they can be addressed, and we will be clear about our expectations. This Government will be sending a clear message that there is a moral and legal obligation for children to attend school. Parent attitude counts, and together, parents, schools, and the Government have a role to play in turning around these abysmal results.

Hon Jan Tinetti: How will the Minister ensure that learners stay away from school when they are indeed sick, as has been the focus over the last few years—as confirmed in the Ministry of Education’s own report, that states that “short-term illness/medical absences … continued to be the main driver of non-attendance in term 3, 2023. The level of illness is associated with the continued incidence of COVID-19 and winter illnesses.”

ERICA STANFORD: Well, two things there—and one of those is the fact that I have already asked the ministry to look into this level of sickness, because it is interesting that the countries we compare ourselves to have far, far higher rates of attendance, and it would be interesting to find out why it is that New Zealand has such a high level of sickness and whether or not that is being used as an excuse. The other important thing to look at is the fact that the unjustified absences since 2017 have increased markedly. We have to have a change of direction and send a very clear message to parents that it is not OK to keep your children home from school.

David Seymour: Does the Minister intend to make it her practice to become an Olympic-level expert in obfuscating and justifying poor performance—as we saw in the previous question—or does this Government have a plan to actually improve attendance?

SPEAKER: No, I think we’ll let that one slide.

Hon Chris Bishop: Point of order, Mr Speaker. I was just going to seek leave for the Labour Party to have an additional supplementary question to ask about school attendance.

SPEAKER: Well, the Labour Party may well seek leave themselves, but the member can’t do it on their behalf—and he also knows that that’s quite disorderly to undertake that. I think he’s being unduly influenced by a bench colleague.

Question No. 12—Workplace Relations and Safety

12. CAMILLA BELICH (Labour) to the Minister for Workplace Relations and Safety: Why did she decide to ignore advice by officials not to extend 90-day trials?

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): I didn’t. I have considered it. This Government is extending 90-day trials because of our long-term commitment to improving labour market flexibility so that businesses can create more and better jobs. Extending the availability of 90-day trials to give more businesses confidence to take a chance on new workers should be welcomed by all parties in this Parliament.

Camilla Belich: Why did she decide not to follow the advice commissioned by the Treasury that concluded there was no evidence that the ability to use 90-day trials significantly increased companies’ overall hiring?

Hon BROOKE VAN VELDEN: While the member may not see that there is significant benefit in extending the 90-day trials, there is benefit to the number of businesses that we have spoken to across New Zealand who have said that this is a top priority to give them confidence to hire more and better workers.

Camilla Belich: Why did she decide to ignore the Hon Chris Bishop, who told New Zealanders on 29 November 2023 that “We will introduce and refer to a select committee a bill to extend 90-day trial periods for all businesses”, when she decided to introduce a bill under urgency to do this without a select committee process?

Hon BROOKE VAN VELDEN: Cabinet made that decision, and Cabinet has made the right decision.

Camilla Belich: What does she say to the many thousands of New Zealanders who are likely to lose their jobs for no good reason due to the extension of this policy, including unfair reasons like their weight, having a bereavement, or their hair colour?

Hon BROOKE VAN VELDEN: Nobody currently employed will lose their job because of the extension of 90-day trials. Existing current employment terms remain. All this policy will do is give confidence to businesses who are looking to employ new workers—that gives them confidence to employ someone in the new year.

Camilla Belich: What does she say to the employees who are moving into new work who are likely to lose their jobs for unfair reasons—for example, their weight, having a bereavement, or, perhaps, their hair colour?

Hon BROOKE VAN VELDEN: The member may wish to note that 90-day trials give the option for a new employment agreement. However, anybody who believes that they have been dismissed unjustifiably can bring a personal grievance still under the 90-day trial for unjustified disadvantage, discrimination, or sexual harassment—those will still remain.


Bills

Employment Relations (Trial Periods) Amendment Bill

First Reading

Debate resumed.

RICARDO MENÉNDEZ MARCH (Green): Tēnā koe e te Māngai. Ehara taku toa i te toa takitahi, engari taku toa he toa takitini—which says, “My success is not mine alone, but it is the strength of many.” If this Government was to live by that saying, they would not continue trampling over workers’ rights, trampling over people’s ability to have secure employment, and introducing the Employment Relations (Trial Periods) Amendment Bill, which will see generations of workers in precarious positions and being potentially fired for things like having the wrong hair colour, for things like having a bereavement, and for things like being sick.

The Minister should be ashamed, should be embarrassed, and should go back to her coalition document, which supposedly claims that they will be looking at data and evidence when it comes to decision making, because this bill has no evidential basis. It has no research to back it up and it is an attack on workers.

I want to reflect on the fact that many of the Government members keep talking about how the left doesn’t own workers. And as I’ve said before, this Government believes in employers owning workers’ ability to live, workers’ ability to remain in secure housing by giving employers the ability to get rid of people—to treat them as disposable economic units.

As we head into Christmas, what this Government is giving to employers is the ability—

Chlöe Swarbrick: To fire at will.

RICARDO MENÉNDEZ MARCH: —to fire at will—that’s right—and we have to remember that our employment laws are already weighted to favour employers. That power imbalance already exists. It’s been decades in the making. It is how capitalism was designed, and this Government is simply worsening it and entrenching it.

There is research to show that 90-day trials do not work. They do not increase wages; they do not increase working conditions. There is evidence already to support this and let’s not pretend that the Government simply has not read the evidence. They’ve read it and they do not care. They do not care for workers and they do not care for the evidence that backs up that this piece of legislation is rubbish. This piece of legislation would lead to worsening pay and conditions for workers as well.

We do have, also, plenty of evidence from workers themselves, stories that they have generously provided to people in this Chamber when the previous Government was looking at changing how 90-day trials operated. I just want to touch on, for example, one of those stories from Jessica, who at the time talked about: “I called in sick to work one day. My employer wanted to have a disciplinary meeting about this.” These are the kinds of stories; this is the kind of situation that those 90-day trials create by creating that ability for employers to be able to get rid of workers for whatever reason they like, under the justification of being able to find a good match.

All that we are doing is creating a cycle where people will be thrown back into an income support system that was designed to keep people in poverty, back into low-wage employment, back into that same income support system. Employers will continue being able to pay workers poor wages and will be able to continue treating those workers as disposable labour units.

The Green Party understands that our society does not thrive when we treat workers as disposable. If we want to create a society where people are able to not just survive but to thrive, we need to strengthen the right of workers, not diminish them. So I look forward to the debate and exchanges with the Minister later in the committee of the whole House stages, to unpack what best available evidence she used, rather than the vibes she chose to carry throughout the election, rather than the vibes she’s now just speaking to—neo-liberal and cruel vibes at that.

The Green Party will be opposing this bill, and what we will be fighting for is to ensure that this Government does not last the test of time and that we are able to reintroduce protections for workers and go beyond what previous Governments have created.

KATIE NIMON (National—Napier): I rise to speak on the first reading of the Employment Relations (Trial Periods) Amendment Bill. I have managed a business under both models, and I can tell you the hesitance to employ without the use of 90-day trial is real. A good debate hears from both sides, and members opposite clearly have not. The 90-day trial is a tool that does not need to be used, and most often is not. But the help that it provides to employers to take a chance on workers that may have no experience, that may have a tough track record, is what makes the difference. This is reasonable, and I look forward to seeing it amended. With that, I commend this bill to the House.

JAMIE ARBUCKLE (NZ First): Thank you, Mr Speaker. I stand to take the first call for New Zealand First on this bill, on the Employment Relations (Trial Periods) Amendment Bill. New Zealand First supports this bill and I commend it to the House. Thank you.

ASSISTANT SPEAKER (Teanau Tuiono): [Tākuta Ferris stands] You have to seek the call. Are you seeking the call?

Tākuta Ferris: Āe.

ASSISTANT SPEAKER (Teanau Tuiono): You have to ask the Speaker for the call.

Tākuta Ferris: Āe, I was seeking the call.

TĀKUTA FERRIS (Te Pāti Māori—Te Tai Tonga): Tēnā tātou. Ka tū ahau ki te wāhi i ngā kōrero mō Te Pāti Māori e hāngai pū ana ki tēnei o ngā pire. Tēnei pire e tere kawea nei e tēnei Kāwanatanga, me te whai aronga kore ki tana hoa haere i roto i te Tiriti o Waitangi, me te mōhio ko te nuinga o ngā whānau Māori ka pā kinotia e tēnei pire, i runga anō i te āheinga o te hunga takatū i roto i te ao pakihi te tuku i a rātou kia whakakorengia tō rātou tū hei kaimahi i roto i te toru marama.

Kua mōhio kētia whānuitia, tēnā whakatipuranga, tēnā whakatipuranga, ko te iwi Māori te iwi ka ngaua kinotia e ēnei tūmomo pire. Nā, i roto i ngā wiki e rua kua taha ake nei kua whai whakaaro tēnei taha o te Whare kia kawea terehia ēnei pire me te whai aronga kore ki a Ngāi Māori, ki ngā iwi rānei, otirā ki te ōhanga Māori i roto o Aotearoa.

Nō reira e kore rawa mātou e whakaae ki te hanga o tēnei pire, me te mōhio iho he tūkinotanga ōna nō roto mai o te Tiriti o Waitangi, he patunga ōna ki runga i ngā mokopuna o te motu, he whai whakaaro kore ki ngā whānau Māori e noho nei i roto o Aotearoa.

[Greetings to us all. I stand to open the discussion on behalf of the Māori Party, directly relating to this bill. This bill that is being rushed through by this Government, without consideration for its partner in the Treaty of Waitangi, in the knowledge that the majority of Māori families will be adversely affected by this bill, due to the ability of those established in the business sector that allows them to dismiss their standing as an employee in three months.

It is already widely known, each successive generation, that it is Māori society that are the people that are adversely affected by these types of bills. So in the last two weeks this side of the House has thought to rush these bills through without any consideration of the Māori people, or of the various iwi, and indeed of the Māori economy within Aotearoa.

So we will never agree with the structure of this bill, in the knowledge that it has violations of the Treaty of Waitangi, it is an assault on the grandchildren of the nation, and it does not at all consider the Māori families that reside here in Aotearoa.]

So Te Pāti Māori vehemently opposes this bill. We understand that the age-old saying of Māori being the highly extendable shock absorber of the New Zealand economy over decades seems to be well in play with the current bill—the repeal of this bill. We know that young Māori families will be disadvantaged by this bill, their children will be disadvantaged, kaumātua will be disadvantaged, as will many other minority peoples in this country. We’ve heard a lot from this side of the House over the last two days and two weeks. We understand that it takes mobility and agility to grow an economy, but if that’s at the expense of the most vulnerable people in that society, then it’s not something that we could ever condone.

I’ll just remind this side of the House that they’ve paid no attention—given no regard—to their Tiriti partner, as described in my maiden speech as the principle in that agreement, and to do so in 2023 whilst the motu stands up to rally against it just defies explanation.

Carl Bates: Just because you don’t like it doesn’t mean that Māori aren’t in agreement.

TĀKUTA FERRIS: Oh, well, it’s not just me that doesn’t like it; there’s plenty of people that don’t like it. [Interruption] But I don’t think you have any bandwidth for garnering any sort of opinion from the Māori community, e hoa, so I wouldn’t pursue that line of argument if I was sitting in your seat.

But heoi anō ko te mōhio iho ko Ngāi Māori ka ngaua kinotia e tēnei pire. E kore mātou e whakaae.

[However, it is known that it will be the Māori people that will be greatly adversely affected by this bill. We will never agree.]

When I look across here to this side of the House, I don’t see leaders. I’m not seeing leadership. I’m not seeing the voice of the motu. I’m seeing the voice of a small segment of the motu who voted these people in. And, you know, the trouble—

Debbie Ngarewa-Packer: 4 percent Māori—

TĀKUTA FERRIS: Ha, ha! Four percent, āe, 4 percent Māori. Over here I see lobbyists, I see people who prioritise profit over people. I see people who expect us to believe that all business owners are benevolent do-gooders and they’re going to look after everybody for ever. But the trouble with that idea is that unlike a business, when you can simply discard unproductive units, when you’re responsible for a society and the wellbeing of that society, simply discarding those people, or those units that you deem suboptimal, does nothing to improve that society.

Nō reira, Te Pāti Māori vehemently opposes this anti-worker, anti-whānau, and anti Te Tiriti o Waitangi bill.

ASSISTANT SPEAKER (Teanau Tuiono): Just before I take the next call, I will remind members that if you want to have a discussion and a chit-chat right across the House, there’s plenty of space out there in the hallways. I didn’t want to interrupt the previous speaker, but I would like people to keep that in mind. There’s plenty of spaces for us to have those debates as well, and it can make it difficult for people at home listening if folks start to get a bit rowdy.

CARL BATES (National—Whanganui): Thank you, Mr Speaker. I rise to support the Employment Relations (Trial Periods) Amendment Bill. As I worked across the Whanganui electorate, visited businesses in Whanganui, in Waverley, in Pātea, in Hāwera, and in Stratford, I met many business owners who looked to this sort of opportunity to provide opportunities to employees across our electorate. I know my colleagues across the country who won their seats in the recent election had similar experiences. We also spoke to the employees, or the potential employees that wanted the opportunity that those employers could give and that this bill provides for that relationship to occur. So I’m pleased to support the Government’s 100-day plan to deliver on our commitments and what the voters wanted. I commend this bill to the House.

Hon WILLIE JACKSON (Labour): Oh, they would have been so proud of that speech, too, so well done. They would have thought, “What a long way they went with that fabulous, well-thought-out speech.”

It’s so sad; it’s such a sad time, this. We’ve got such an uncaring Government at the moment. [Laughter] They laugh away, but here we are. We’re—what are we?—five days from Christmas, and they’ve been attacking Māori, attacking workers, and they don’t even know what they’re doing. They’re so stupid, it’s just beyond belief. They sit there and they don’t realise what an arrogant Government they are, what a terrible start they’ve made. Here we are, with fair pay agreements thrown out. Now, we’re kicking the unions for the benefit of the boss. That’s what this is all about. It’s not about building equality in terms of this country. This is how you rip it down, with their ideas. It’s so sad.

I think that I was listening to Tākuta there—you know, no regard for Māori, no regard for partnership, no regard for the Treaty. It’s like it’s all been forgotten. We saw that this morning with the repeal of the Resource Management Act.

There’s no reason to extend the 90-day right-to-sack law beyond small businesses that employ less than 20 people. This is being rammed through, in terms of urgency, because, obviously, they have to tiptoe around Winston’s ego for almost two months. What’s being rammed through under urgency is a spiteful law. This is a spiteful law.

The Government talk like they’re the only people who’ve been involved in business. We know that this type of law can really hurt the vulnerable. They don’t know where they’re going—they can’t plan anything. They’re at the whim of some of these National Party and ACT Party bosses. You know, they’re at their whim. This is what worries us. We’re trying to work through how we can support our people productively, and this is the best way of doing it! They’ve been so badly hit in terms of the fair bargaining process, this is not legislation that helps workers, it only weakens their rights. That’s the danger here.

Carl Bates: Strengthens the opportunity.

Hon WILLIE JACKSON: No, this is not opportunity. As we said earlier, you know, we’re going to get down to the point where you’re just going to get rid of people because you’re just sick of them. It’s not legislation that helps workers; it supresses wages. It’s not legislation that helps workers; it just strengthens bosses’ rights. That’s what the unions have been saying to us.

After six years in Opposition, all National is doing is tearing down what we’ve put in place. When’s it going to stop? We’ve got the smokefree laws. We’ve got fair bargaining. We’ve got Māori Health Authority. This will catch up with this Government. They’ve got no vision for New Zealand; it’s just about bashing the vulnerable, bashing workers, and bashing Māori.

I just cannot believe how the Government can’t see the type of damage that’s happening. Particularly, I look at the smokefree stuff—this is all connected. We’ve got world-recognised legislation in terms of smokefree—world-recognised legislation. England have embraced it. But this lot, here: throw it out—throw it out—so they can fund their rich mates with their stupid tax cuts. That’s what we’re talking about: they’re wreckers and destroyers. This is not how you build an economy or community or society. It’s an enormous step backwards, and this is happening and continuing all the time. The State should be against exploiting workers, not enabling it. [Assistant Speaker gestures for member to return to subject of bill] Well, I’m trying to keep it right in context. I think that’s what this is all about.

This is a bill that is exploiting the situation with regards to workers. They cannot plan, they cannot get a future in place, all because of the selfishness and the greediness of a National Government who don’t care at all about workers’ rights.

MIKE BUTTERICK (National—Wairarapa): I speak in support of the Employment Relations (Trial Periods) Amendment Bill. Businesses both large and small in our electorate, in Central Hawke’s Bay, Tararua, in the Wairarapa are facing tough times. Rising interest rates and unworkable legislation are making it difficult to do business. Returning 90-day trials will give them some confidence. The point that the other side of the House misses is that those seeking new employment but may have had a few speed bumps, those vulnerable people are often those that employers won’t take a chance on. What is wrong with an extended trial period where employers will give people a go? Nothing. I’m pleased to support this bill.

HELEN WHITE (Labour—Mt Albert): We’re sitting in the House today and I’ve got five minutes to explain to you why what you’re doing, what—sorry, Mr Speaker; explain to the Opposition or to the Government—

Hon Members: That’s right!

HELEN WHITE: —why what they are doing—yes, that’s right: you’re the Government, and I am so sad that you are taking this action today. I want to explain just why—

ASSISTANT SPEAKER (Teanau Tuiono): Direct your comments to the Speaker.

HELEN WHITE: —this is going to hurt people out there. So I just want to take one worker and I don’t want to take a dramatic example; I want to take one worker who I think is a realistic representation of the kind of person that you’re going to impact on.

So let’s take a worker in my electorate of Mt Albert. That person has been working at a local cafe and they’ve learnt how to make a coffee. They’ve got three kids; their kids are 12 and 14 and two. By next Christmas, they’ve been offered a job—just before next Christmas and they’re going to be offered a job at Starbucks. Now, Starbucks is a multinational. It has well over 50 employees. By this time next year—in fact, quite soon—Starbucks will be able to offer that person work without any obligation to keep them employed after 90 days.

So this worker has got a dilemma. She’s got three kids. She’s on minimum wage and she might get a little bit more at Starbucks, so she might decide to go and work there. If she goes to work there, she’ll be subject to a restraint of trade. She probably doesn’t know that because it’s in the bulk of the collective agreement. It says that there’s a restraint of trade in there for six months. So she’ll be stuck in that job because that will be part of the contract.

Hon Judith Collins: Why did the union agree to that?

HELEN WHITE: Now, I’d appreciate if you’d listen to me, Judith Collins, Minister—I’d appreciate you listening to this because this is a real-life situation.

ASSISTANT SPEAKER (Teanau Tuiono): If the speaker could have the conversation with me.

HELEN WHITE: Thank you. I’d appreciate a little bit of respect. Listen to this story, because it’s an interesting story because it fleshes out what’s actually happening here.

So this person has three children. They all get on a bus to go to school because there’s only one car in this family. They all are going to pay full price, so that worker is already going to have that issue. She’s going to start at her job—if she is daring to start at that job, because she may know that that makes her very precarious. She’s in a risky situation so she’s less likely to move from her minimum-wage job to one that pays slightly more. When she gets there, if her children get sick and she has to actually stop and look after them, she’s going to hesitate, isn’t she? Because she’s not going to be willing to take the risk that in those 90 days she does anything that might make her a target for an instant dismissal.

Carl Bates: Hypothetical.

HELEN WHITE: It’s not a hypothetical; it’s a reality. Because that will be the fear of the woman in this situation—that will be the fear. So she’s likely to come to work when her kids are sick. She’s already got one child, by the way, who’s two, and she won’t be getting any of the benefits that she would have got, which was the free childcare. So, again, she’s less likely to work.

Now, that person is sacked. They’re sacked and we’re held to a restraint of trade in that situation. They are sacked. It might be for a good reason; it might be for a bad reason. They’ve got no natural justice attached to it. We wouldn’t know, would we? We wouldn’t know whether it was a good reason or a bad reason.

That person is then without work, just before Christmas next year. Who will be picking up the tab? Will that be Starbucks, the multinational? No, it will be the taxpayer—the taxpayer will pick up the tab. So what we’ve actually effectively done is we’ve taken all the risk associated with that worker—who, by the way, was not the mythical take-a-chance person; they were, in fact, the worker who was just trying to get ahead, just trying to get above minimum wage. And we’re going to have them actually on the books next Christmas as a person that the taxpayer’s paying for, because that’s what we do. We subsidise Starbucks under this arrangement.

But, by all means, don’t have a submission process around this! Don’t try and glue some of the very important boundaries to this in place! No, just do it because why would you listen? I mean, you’ve been in Government for 6½ minutes and you’re already not listening to people. You don’t want to know what the reality of what you do is, because you’re stuck in an old-fashioned ideology that didn’t work and hasn’t for a long time.

I rise GRANT McCALLUM (National—Northland):to speak in support of the Employment Relations (Trial Periods) Amendment Bill. After listening to some of the speakers on the other side of the House, you’d think employers were actually hiring people to sack them. Well, actually, that’s not the case. The process of going through to actually want to hire somebody is quite a process, and when you make those selections, then you do it for all the good reasons to support your business. As somebody who is a small-business owner and had the benefit to actually take advantage of this situation to employ some people that you might not actually normally have done, and given them a chance, then that gives you the confidence to do so, and that is why I commend this bill to the House.

A party vote was called for on the question, That the Employment Relations (Trial Periods) Amendment Bill be now read a first time.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

Bill read a first time.

ASSISTANT SPEAKER (Teanau Tuiono): This bill is set down for second reading immediately.

Second Reading

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): I move, That the Employment Relations (Trial Periods) Amendment Bill be now read a second time.

The Employment Relations (Trial Periods) Amendment Bill is a very important bill for us to pass before Christmas. This bill will extend the availability of 90-day trials as an option for all employers, repealing what the previous Government did by restricting the availability to only small businesses. Currently, the law for 90-day trials as an option in employment agreements exists only for businesses or companies with fewer than 20 employees. Extending this trial will make a huge difference to the flexibility of our labour market, because larger businesses employ around 72 percent of all employees in New Zealand.

We are debating this bill under urgency because it is within the Government’s 100-day plan and is a commitment that we want to restore business optimism and confidence before Christmas, so that businesses and workers are going into the new year with certainty over the labour market. There is no time to waste in getting rid of the bleak economic environment and outlook that was left by the previous Government. We need to get the labour market settings right so that businesses and workers can both keep their heads above water.

We’ve gone through the history of 90-day trials in the first reading, but why this Government is reintroducing and extending 90-day trials to all businesses is because we’ve heard loud and clear from employers up and down New Zealand that they want more confidence in the labour market, so that they can take a chance on someone who might be seen as a riskier worker. Workers deserve that right as well.

Whether a business has two employees or they have 200 employees, there is a cost to doing business. There is a cost to hiring a new employee and bringing them into the workforce. It takes money, it takes time, it takes resources, and everybody wants that worker and that employee to work well with the employer. It’s in everybody’s best interests to find the right fit. It increases productivity in the workforce, it helps to make sure that you’ve got the culture right within the workplace, and, importantly, it gives the opportunity for somebody who may not have had a fair chance a chance in a new environment. They might not have the right skill, they might not have the right qualification, but if they have the right attitude, they can find a business who’d be willing to give them a go.

Apart from the cost of the dismissal process, retaining an employee who is not the right fit can actually have a detrimental effect on all of the employees within that workspace as a whole. It can take only one employee who has a poor attitude or doesn’t have the right skills to actually do the job to a good standard to take down a productive team. So it’s important that we get the fit right between an employee and an employer.

The costs and risks that are associated with a dismissal can lead to a labour market with fewer employment opportunities, particularly for those people who are trying to just get a foot in the door—people with criminal convictions, as an example. The costly dismissal process, which we would be removing for all employers, can make the workplace less productive. When businesses can employ only a certain number of people—because they’re resource constrained, they are financially constrained—having a worker who is a poor match within that business is not giving an opportunity for somebody else who could do a better job or could be a better fit or could do the job at a higher standard than somebody else.

We have heard time and time again from businesses who tell us that this is their top priority for improving their own workplace culture, by lifting this unnecessary regulation. This bill will help people across New Zealand’s economy, from farmers to retailers. There are many, many more that have sent in their stories, all the time when we were in Opposition, wanting to make sure that we got the labour market settings right so that they have confidence in employing new staff.

This bill will help employers take on new staff by reducing risks in the hiring process. This is particularly the case when employers are considering someone who doesn’t tick all the boxes—people who might be considered risky, people who might not have had a job before, or people who have little job experience or maybe just don’t present well in a job interview. It gives them an option and a chance.

Not all workers, of course, will be happy to have a 90-day trial clause in their contracts—that’s fine; this legislation is for an option to have a 90-day trial. It is not mandatory for employees and companies to have a 90-day trial. Any short-term cost or concern or stress about having a 90-day trial in a contract will be outweighed, I consider, by the lack of stress of actually having a job and being given an option of employment.

Starting a business is a brave move. Hiring staff is a risky move. We are hopeful that everyone will find the right fit of employee for the right job. This gives businesses the opportunity to have that right fit without having an ongoing liability. So this Government supports businesses, we support workers, but we’re a Government that will deliver for both. I commend this bill to the House.

ASSISTANT SPEAKER (Teanau Tuiono): The question is that the motion be agreed to.

CAMILLA BELICH (Labour): Thank you, Mr Speaker. Here I am to speak to the same bill quite soon after I finished my first reading contribution, because, of course, for those tuning in at home, this bill is being passed through urgency, which means we haven’t had a select committee process. We haven’t had an opportunity to actually hear from the New Zealanders that the Government purports to be so concerned about.

Now, I listened to the Minister for Workplace Relations and Safety’s speech, and I commend her for speaking a little bit longer than she managed on the first reading, but what I can’t commend her for is the lack of evidence and substance within what she’s actually saying. She says that she spoke to someone or to a business and they said that they might quite like this. We’ve heard members opposite accusing people on this side of the House of not having been employers before—and, in fact, most of us have been or still are—and that they had spoken to employers and that this is what employers wanted.

Well, let me just say that the Government is not some kind of Christmas Santa Claus for Business New Zealand, and doesn’t and shouldn’t have the role of listening to all of Kirk Hope’s wish list for implementation without scrutinising whether those policies actually work. The evidence is that this particular bill has no evidential basis that it will help the New Zealand economy at all, that it will help employers at all, and, actually, it will hurt employees. The reason that I say that is because that is what is contained in Treasury’s own advice and that is what is contained in independent advice commissioned by the Treasury.

So, as I said previously, electoral mandates don’t justify bad lawmaking, and this is bad lawmaking. New Zealanders had a right to state their view in relation to the extension of trial periods. If there is a justification for this policy, which is questionable, looking at the most recent evidence, then that justification would only apply to the small businesses which are currently covered by this policy.

The extension that the Government is proposing with this bill is actually not just in relation to the number of employers but, actually, the number of employees in New Zealand will be hugely increased by the extension of this policy. So at the moment, we have about 28 percent of the workforce covered. That will include the remaining 78 percent when this policy is implemented. So a huge number are not currently covered; have security in their employment when they start work; understand that if there are problems, they can be addressed through normal employment processes, on conduct, on performance, with natural justice; but have confidence that they’re not going to be sacked for no good reason by their employer within that first three months. So this is not a minor thing that the Government is doing; this is actually quite a major overhaul of the terms and conditions of a number of New Zealanders.

Now, you’d think that another thing that the Government might want to look at in extending the policy on trial periods is: do they actually work? When we look at the cases that have gone through the Employment Relations Authority on trial periods, we find that, actually, they don’t. Out of the 178 trial periods that were taken to the Employment Relations Authority, 133 were found to be invalid. This is because the Employment Court and the Employment Relations Authority have taken a very strong line with making sure that procedures around trial periods are followed correctly. The reason for that is they have noted themselves that trial periods remove the right to justice. They remove natural justice from employees, from being able to say, “Actually, I don’t think that’s fair.” or “Actually, that allegation isn’t correct.” or “Actually, I’ve got another side of the story.” or “Actually, I think the reason to dismiss me, to make sure that I don’t have a way of making a living, is unfair.”

Carl Bates: You can only be dismissed if you’ve got a job in the first place.

CAMILLA BELICH: That cannot occur in trial periods—and the Employment Court, which I would expect members opposite, who constantly seem to be parroting back the same thing over and over again, should respect. So it is actually a significant move that the Government is making to remove natural justice from New Zealanders with this bill, which is very, very disappointing, and very disheartening.

Now, I’ve mentioned there is no select committee process, and, quite separate to any request, I’ve actually had community groups and organisations come up to me and ask me for information about when the select committee process is going to occur. Why, you may ask, would people do that? Why would people ask about a select committee process? Well, because the Hon Chris Bishop told New Zealanders in November—late November; so, very recently—that there would be a select committee process, and now we find there is not going to be one. So they emailed me, and they said, “When’s the select committee going to be?” I said, “There won’t be one, because this Government is pushing this trial periods legislation through under urgency.”

One of the organisations that contacted me was the National Council of Women (NCW), and they’ve asked me to read out what they would have said if they’d had the ability to make a submission. They said, “Many thanks for your kind offer to share NCW’s views today in the parliamentary debate.”—this is upon hearing that there wouldn’t be a select committee process—

Carl Bates: Who contacted who first?

CAMILLA BELICH: They contacted me first. “NCW firmly supports fair working conditions for all, and, in particular, women and others in low-paid jobs, who are often made to feel vulnerable by insecure employment. Our longstanding policy seeks to promote the rights of workers and to protect all employees from exploitation, including protection from employers who may intentionally employ workers for a short period of time in order to deny their rights to sick leave and other entitlements.” Genuine concern from a very well-respected community group.

Another person who contacted me was Jenny. She said she’s wondering how the mental health of the population is ever to improve with things like 90-day trials. It pushes people into higher anxiety and the burden of depression and stress. Having a job, especially a full-time one, makes it very hard, over those three months, for that worker to keep applying for other jobs and going for interviews, just to have a backstop for a “what if” situation after the 90-day trials are let go. Then, if an employer deems a worker is no longer needed, what happens regarding Work and Income New Zealand? Is there a stand-down period when one has lost their job after the 90 days? Genuine concerns by New Zealanders that could have been addressed through advice in the select committee process.

Another person contacted me: Mel. She said she had a boyfriend unfairly dismissed by a company still using a 90-day trial period last year. It was a dairy farm that employed mainly workers from overseas, and he reported a fallen cow, and then was blamed for pushing the cow over and was dismissed. It is well known, Mel notes, that cows can fall over for other reasons, which I’m sure those opposite who have mentioned the usefulness of these in farms can attest to. She said she supported her friend to the Citizens Advice Bureau, was assigned a lawyer, and won the case.

Finally, I wanted to mention a contribution—oh, no, second to finally, actually; got quite a few people who have contacted me. Craig, another person involved in a farm—so I was pleased when I heard someone mention earlier in the debate how useful this would be to farmers, because we have examples about how this can actually be very bad for farm workers, who we’re, obviously, also very concerned about. “My brother-in-law was employed as a dairy farm worker and his employment package included a house which he and his wife moved into. His employment was terminated under a 90-day trial with no notice and he was required to be out of his house by the end of the weekend that same week, rather than usual 14 days’ notice, because the employer needed a replacement employee.” Extremely unpleasant experience—that’s what Craig says.

And then the last thing was I got another email from Francesco. He said, “As an immigrant who chose to live in this country, I am worried about the future.” I am too, because when we see a Government who is willing to introduce a policy that has no basis in any evidence to work towards the objective that they state, it is very concerning for the future of this country. We know that there is no evidence to back up that this policy increases rates of hiring. We’ve seen independent studies that have looked into whether this is, in fact, correct and we have seen, in relation to this policy, that it’s not. It doesn’t work in New Zealand, it doesn’t work for New Zealanders, and there is no basis for the Government to extend it.

Carl Bates: It absolutely works.

CAMILLA BELICH: Simply stating the opposite of a proposition, Mr Bates, does not render that proposition correct. What I’m looking at is a study that shows that it doesn’t work. What I would implore the Government to do is when they get a request from an organisation like Business New Zealand or where they speak to an employer, that instead of just simply accepting that policy and pushing it through under urgency in their first 100 days, just on the basis that they said they would, they actually look at the evidence and see whether that policy actually does what people want it to do.

I have sympathy for the fact that employers want to employ more people. I have sympathy for that, and I know that there are a lot of very good employers out there who always want to do the right thing. This policy will not help them become better employers. This policy will not help them take chances on people who they might not otherwise. The effect of this policy is simply to make vulnerable people, who have no job security, not want to take on new opportunities or be sacked for an unfair reason. That can be traumatising and impact them for the rest of their life. I do not commend this bill.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Mr Speaker. I don’t wish to insult the Minister’s intelligence by implying that she has not read the evidence available, that she has not looked for evidence around the impact of this bill. I think the Minister knows what she’s doing; she knows that she’s making workers’ lives worse, and she doesn’t care. Let’s not pretend that this is a Minister who simply hasn’t done the homework. She’s done the homework and she’s come, as part of this Government, with the intent of making workers’ lives more difficult.

So let’s make it really, really, really clear what we are talking about when we’re seeing an extension of 90-day trials; a scheme that has not shown to improve conditions for workers, that has not shown to improve retention of people in their workplaces, and that, if anything, it increases the precarity, it increases the ability for employers to exploit workers, it does not lead to the so-called high productivity that she talks about, because the agenda that this Minister has is one where employers hold more control over workers, where workers are not able to get ahead.

When the Minister has spoken about the risk that employers take with their workers, she forgets that it is not just employers who are taking a risk here; it is workers too. Workers take a massive risk entering a new job. They’re risking their time, they’re risking their ability to stay well. So often, people are entering into workplace cultures that may be completely unfamiliar to what they’ve been used to before. They’re risking their income. They’re risking their ability to pay rent, because if they get fired as a result of the 90-day trials they may face a period of living in poverty with the income support that has been kept in poverty as a decision from successive Governments, including from previous National Governments as well.

So the Minister is conveniently omitting a key part of this, which is the risk that workers take when they enter employment. She has at no point throughout the passage of this bill, throughout this debate, spoken about the need to improve the wellbeing of workers. She has focused on the control that employers should have, according to her, on those very people.

I want to reflect a bit on my own experience in the hospitality scene prior to entering this place, and the aspect of serving customers. Something that I think many people in this House clearly lack is coming from a place of serving and a culture of serving because it’s—

Mark Cameron: How do you know she hasn’t?

RICARDO MENÉNDEZ MARCH: Well, maybe she has, but, if she has, she’s clearly forgotten. But the point around here is that I worked in a workplace at a time where 90-day trials were a thing and I’ve seen firsthand how some of my former co-workers themselves were impacted by this. The fear of being unjustly dismissed, effectively, for just making the smallest of remarks that would have put off the manager, manager’s using excuses to then get rid of workers that they just simply didn’t like. This whole talk about “not a good match” is actually giving the ability to employers of getting rid of people who they just don’t like.

And, actually, if the other side of the House wants to talk about putting more people into good jobs and supporting people to go into good jobs, all they’re doing is actually creating a cycle and a trap of poverty by creating the conditions where people will be being cycled between poverty-level benefits and otherwise, and I’ve seen that happen in my previous workplace. And to me, the other element that the Minister has submitted through this is that maybe, actually, what some of these businesses need is better management. They need better coaching for those new workers to be supported into those new jobs, and they need processes to on board people rather than simply giving themselves the ability to get rid of people. And if those businesses don’t have a business model that can support on boarding those workers, and don’t have hiring practices where they are able to identify who is going to be a good match, perhaps they need to go back to the drawing board about the business model that they have and the way that they’re running businesses. Because if we want to create a condition where those businesses have a good working environment, we should be putting in place regulations that ensure those businesses have good management, good practices, rather than simply treating those workers as disposable units.

Clearly, the members of the Government have chosen to not bring any substance to the debate by not taking substantive contributions in this bill, making a disservice to the fact that they’re putting this bill in urgency. All that they’re doing is throwing the argument around that this is part of a coalition agreement, but, actually, good policy-making, good lawmaking, a good service to this whole country requires a level of scrutiny and justification for laws that have such a material impact on people well beyond what has been put forward by the Minister and by the very dutiful backbenchers who stand up with their 10-second contributions, get back down, and then they go back to their homes, go back to the cafes over the Christmas period, will be served in the restaurants by the very same workers who they’re now telling that they should be able to be fired within 90 days of starting a new employment.

And, yes, maybe the Minister in her contributions claimed that no workers currently in employment may not be affected, but she forgets that those workers may go into new jobs where they will now face that precarity, where they’ll now face that vulnerability, and none of the research that we have shows that decreasing working conditions increases productivity. The so-called flexibility that she wants to afford is only flexibility for the employers. She has nothing to be afraid of by actually giving those workers greater protections from abusive employers. But this Government is hell-bent on destroying the rights of workers, whether it is by extending the 90-day trials, whether it is by dismantling fair pay agreements, whether it is by removing other subsidies on public transport, etc.

But to bring it back to this bill, I wanted to also—as the previous speaker, Camilla Belich, told us—talk about some of the stories that had previously been brought forward when it came to the issue of 90-day trials. A few years ago, we heard from Andrew, who, actually, at the time was a National Party supporter and an industrial electrician by trade with over 30 years of experience. He spoke about his experience in a new job and how he was let go under the 90-day trial, how it came as a surprise to him because—and I quote—“At no time was I advised that my work wasn’t up to scratch. My supervisor and I had an occasionally bumpy relationship, but nothing that the company seemed concerned about. It was certainly never taken up with me. When I specifically asked for the reason I had been let go, HR refused to tell me. Presumably, that was so I had no way of taking the matter further.”

This speaks of poor management practices which this Government is entrenching, which this Government does not seem to care about. They do not seem to care about people who will be now concerned whether they get let go during their first 90-day trials, who will not have the ability to raise this matter in a way that honours the experience they bring, that honours the contributions they brought to the workplace, that honours the fact that they will be thrown on to a benefit which in and of itself will decrease the overall wages and incomes that people receive. So let’s make it clear, let’s not pretend that, again, we don’t know what this Government is doing. They’re creating a low-wage economy. They’re creating an economy of poor management practices. They’re creating an economy where workers are set up to fail rather than set up to be supported and to thrive. And, yeah, as the Minister talked about, some of the people who will be subjected to 90-day trials may be first-time workers. This may be the first job they enter. And, again, the evidence and the research tell us that when those workers are supported in their first time working, if they receive good wages, if they receive good coaching, we’re setting them up to succeed. If we put them in a precarious position where we’re setting those young people up to fail, what we are doing is diminishing the wellbeing, the mana of those workers. And this is what the Government is intending to do by using the justification of maybe somebody who’s new may not be a good match.

We actually should be creating the support system so that people can thrive in their work, and if they don’t, then we need to create the income support systems to support them, then, to find a better job. But this Government wants to have it both ways. They want the ability to fire people in those 90-day trials, basically at will, and, at the same time, they want to keep that income support below the poverty line. And if I see the face of disgust of that member to the opposite of me, just being aghast of it, it’s because maybe for those members, it’s scary to imagine a world where employers don’t have that full control over workers. It’s the scary prospect of workers actually having power because it threatens the world view that these members were brought up with, where they’ve been told that they can trample over workers, that they can come into this place and remove the rights of the workers because that will create a world where they continue having control over the systems they created in the first place.

I look forward to challenging the Minister on her lack of evidence, on her lack of basis for bringing this bill into the House, and on the cruelty in which she is bringing this bill forward.

KATIE NIMON (National—Napier): I am pleased to speak on the amendment bill in this second reading. I want to address the claims of the members opposite that people will lose their jobs or be exploited. This is scaremongering. They speak as if every employee is now going to work on a 90-day only contract. The 90-day trial is yet another tool that gives employers and employees flexibility.

How many times has somebody missed out on a job because of a lack of experience? How do they get that experience? Someone gives them a shot. I want to cultivate a relationship between employer and employee, not take it out of their hands and destroy it. I commend this bill to the House, and I hope it to be amended promptly.

Hon MARK PATTERSON (Minister for Rural Communities): New Zealand First rises to continue our support for this Employment Relations (Trial Periods) Amendment Bill. I’m really interested because, during our last term in Parliament, we had some part to play in protecting the 90-day trials for businesses under 20 employees. I remember it being quite a pitched battle behind the scenes, but we were proud to do that because we believe in the merits of this.

So the question I would have for the members opposite: if it’s such a dire situation, why, in the three years when the Labour Party had a majority Government, did you not get rid of the 90-day trials? Why did you not do that? If it was that dire, you would have done that. So this is virtue signalling in extreme from those members opposite.

It was a very wise move from New Zealand First in our previous term to protect those measures, so we absolutely support the emphasis of this bill. Out in the real world, good workers are highly valued. Any employer you talk to, they are screaming out for good workers. They are not just culling people willy-nilly because of their hair colour, Camilla Belich, and they’re not evil people. They are capitalists.

Hon Willie Jackson: They are.

Hon MARK PATTERSON: They are people that are—they are not—

Hon Willie Jackson: They are.

Hon MARK PATTERSON: —the Hon Willie Jackson—that shows your mentality. You’ve got such a vexed view of these New Zealanders that are risking their own capital, often putting their own houses in to actually give someone an opportunity to have a job. It is a huge responsibility, but we need to get flexibility back into our workforce. We need to get confidence back into our business communities so they can hire and start to grow this economy so that we can start to deliver the services that we need. New Zealand First absolutely supports this piece of legislation. Thank you.

ASSISTANT SPEAKER (Teanau Tuiono): He taukī weherua tēnei i waenga i Te Pāti Māori me ngā Kākāriki.

[This is a split call between Te Pāti Māori and the Greens.]

HANA-RAWHITI MAIPI-CLARKE (Te Pāti Māori—Hauraki-Waikato): Tēnā rā tātou e te Whare. E tū ana ahau ki te waha i ngā kōrero a Te Pāti Māori i te rangi mō tēnei pire.

[I stand here today to convey the opinions of Te Pāti Māori regarding this bill.]

I rise on behalf of Te Pāti Māori to speak to the second reading of the Employment Relations (Trial Periods) Amendment Bill—my first reading of a bill in te Whare Pāremata. This bill will reintroduce the ability of all employers to hire employees on the condition of a 90-day trial period, or otherwise known as “last hired, first fired”. The decision of this House will affect all houses throughout Aotearoa this Christmas, making it harder to put kai on the table, presents for tamariki, and gas for travelling away over the Christmas holidays.

Ninety-day trials are simply a way of employers getting around the employment law, and sacking workers more easily for no cause. How can the first actions of this Government literally sprint through legislation under urgency that will keep wages low and erode workers’ rights? This kind of employment practice should have no place in Aotearoa. What our whānau need at Christmas is better pūtea, better mahi, better workers’ rights.

The Key-led National Government were responsible for establishing the trial period. It tested the scheme in small businesses for some industries in 2009, rolling it out nationwide in 2011. As a rangatahi Māori myself, I fear that many rangatahi from Hauraki, Waikato, and throughout the motu will apply for jobs during this Christmas break, in December, and be fired mid-March under this 90-day trial period. A Treasury study in 2017 found that 90-day trial periods had no significant economy-wide impact or increases beyond what was already achievable without it. Our people deserve job security. Te Pāti Māori opposed this introduction of 90-day trials when National first introduced them in 2009. We remain opposed to them today.

Māori are much more likely to be in industries that will be impacted, and the policy enables employers to get away with racism more easily. This bill tramples on the mana of mokopuna, as the policy is designed, and rangatahi in making it harder for them to get into the job market. The impact on Māori, particularly rangatahi Māori and those in construction and retail industries, will be significant.

This Government has championed that this country wanted change, but they have failed to understand the change people advocated for. Instead, they have put us all into a time machine and taken us back to a time when answering the phone call with “Kia ora” was racial. What will negatively impact Māori will have the same effect on everyone else. The heart of this issue is that it is treating people—actual human beings—as if they are limited, expendable, and disposable. Heoti, e te Pīka o te Whare, Te Pāti Māori opposes this anti-worker, anti-Māori, anti-mokopuna, anti - Te Tiriti o Waitangi bill. Nō reira, tēnā koutou katoa.

TAMATHA PAUL (Green—Wellington Central): Thanks, Mr Speaker. I’m really glad to follow my eloquent sister Hana-Rawhiti here today to oppose this bill in front of us. I’ve heard members shouting, the whole time I’ve been here, about how there is evidence for what they’re proposing, but we know that there is not. When you press them on where they got their evidence from, they come back and say they’ve talked to employers, but it’s clear they haven’t talked to any workers about what they’re actually doing, and I wonder if that’s because those members only ever ask to speak to the manager instead of speaking to the workers that serve them—that bring them their coffees and serve them their food. To me, this bill just emphasises the fact that this Government hates the people that carry the country on their backs.

The one thing I want to talk about is the effect of this bill on workers’ rights and the rights of all workers to be able to be in a working environment that is safe and free from discrimination. I want to talk about the hundreds of young people that have taken to the streets of Wellington because they face discrimination, sexual violence, harm, and harassment in their workplace, particularly around times like this: summer times, Christmas times. When you’re at a Christmas party and your employer gets a little bit too drunk and makes a move on you, what are you going to do if you’re in your first 90 days? You can’t do anything. You can’t take a personal grievance. You can’t do anything about that, and this is the kind of effect that this kind of bill will have.

Sam Uffindell: You can’t sexually harass people. Of course you can push back against that.

TAMATHA PAUL: What—are you saying that victims of sexual violence should just go through the justice system that does not centre the rights of survivors? It doesn’t. Anyway.

The second thing that I want to focus on is discrimination for the way that people look and the way that they think. People getting let go for what they look like—we’ve heard about that today. You can be fired for something as small as the colour of your hair, if you have tattoos, if you say the wrong thing while you’re in the smoko room. You can be let go because—guess what!—it’s completely arbitrary and it’s up to your employer to make up those rules. You are no longer protected by the same rights as everybody else. This is not the type of working environment that any young person wants to find themselves in and it’s another reason that people in my generation are going to go off to Australia, because they’re going to be paid better, they’re going to have better working conditions, and they’re going to feel safe at work.

There is no evidence behind this. It’s another cruel blow to workers after this Government just scrapped fair pay agreements right before Christmas. The worst thing is the members across the House can’t even give the basic decency of explaining why you’re doing what it is. I’ve been sitting here; you’ve been giving 30-second speeches, sometimes—30 seconds is the only decency that you’re giving to workers about why you’re taking their rights away. You can’t even give a fair and robust debate about what you’re doing, and you don’t have any evidence to back it, either.

ASSISTANT SPEAKER (Maureen Pugh): Please don’t bring the Speaker into the debate.

TAMATHA PAUL: Well, that’s all I’ve got to say, anyway. Thank you, Madam Speaker. Kia ora.

CARL BATES (National—Whanganui): Thank you, Madam Speaker. I rise as the son, the grandson, and the great-grandson of business owners—people who have put their own capital at risk to employ people and give opportunities—and I think today of Colin Tyson-Tahana, who was the first person that started in my dad’s plumbing business. In fact, he was the first person that came to the hospital the day I was born. I was thinking earlier in the year, when I was at Te Manu Atatū Business Awards in Whanganui—when even the local MP wasn’t there—how proud he would have been of his son who won a business award in a plumbing category. An opportunity that came because in those days, people understood that employer and employee had to work together to make business successful in order to provide opportunity for all.

This bill provides those opportunities to new employees today. Members opposite would do well to appreciate that business is a relationship between employers and employees. So I finally say that data from the 2018-19 National Survey of Employers said that this opportunity enabled people—employers—the opportunity to check a person’s skills and ability to do the job. So the evidence is there to commend this bill to the House.

Hon WILLIE JACKSON (Labour): Kia ora, Madam Speaker. Another fabulous speech from the Government! Yes, there must be a lot of aroha there in the Whanganui area. I want to mihi to Hana and Tamatha for that beautiful kōrero in terms of tautoko for our people. Mihi nui ki a kōrua kōrero ataahua. Tino waimārie mātou ki te whakarongo ki tērā kōrero.

[Thanks to the two of you for your beautiful words. We are very fortunate to listen to those statements.]

It is wonderful when I hear our young wāhine giving their views, because these are the views of our young people today. They really object and reject this type of legislation. I was listening very carefully to what both of them were saying in terms of the breach of rights, the assault on rights, and the helplessness of some workers who feel intimidated with the position they’re in. They’re nervous to complain, and we had a very genuine example there of young wāhine who may be harassed in the workplace. I was listening to that example, and I thought that was a very good example. They’re a bit mataku, or a bit nervous perhaps, to complain for fear of losing the contract. It’s pretty simple, but it’s far too complex for this Government, who are so fixed on this and hell-bent on rolling out strategies that are, basically, offensive to our communities, the communities we represent—to Māori, to women. So I was really pleased to hear that kōrero early on.

When I sit here, I listen to the market flexibility arguments, and I always believe that that’s a load of rubbish that we hear from the Government with regards to market flexibility. The fair pay agreements would have ensured that the so-called market flexibility—there was no barrier in terms of fair pay agreements stopping market flexibility, but there’s always this view that productivity, above everything, even common sense, is paramount, and that’s something that we always get from the right. We continue to hear it, but they never see the results.

Now, this Government is ramming this legislation through with no public consultation before Christmas—

Carl Bates: It’s called an election.

Hon WILLIE JACKSON: An election does not give any Government the right to breach—to breach—the principles that they waffle on about all the time. We’ve heard Chris Bishop saying so many times over the last few years that it’s virtually a breach of democracy to roll out urgency. We’ve heard Chris Bishop in this House say that, but, oh, no, he’s apologising now because he wants to appease and placate his dirty, rotten mates on the right—Madam Speaker, I say that very respectfully—and he wants to appease and placate the dirty, rotten National Party and ACT supporters, and so he brings in urgency just to get this terrible legislation through. Here we are, five days from Christmas, and all we can think about is our rich mates on the right—we just want to look after them.

Now, I want to bring in this research from Motu in 2016. This was commissioned by Treasury and it found no evidence that the ability to use trial periods significantly increases firms’ overall hiring, and no evidence that the policy increased the probability that a new hire by a firm was a disadvantaged job seeker. Research also showed that it did not appear to affect the likelihood of new hires remaining in the long term or make workers less likely to move jobs. The research, as I said, was commissioned by Treasury, and we choose to ignore them, as this Government is doing. The research concluded that “the main benefit of the policy was a decrease in dismissal costs for firms, while many employees faced increased uncertainty about their job security for three months after being hired.”

So let me reread that for this new far-right, race-baiting Government. It said that the main benefit of the 90-day right to sack policy “was a decrease in dismissal costs for firms, while many employees faced increased uncertainty about their job security for three months after being hired.”—many employees faced increased uncertainty. I say that again about their job security for three months after being hired. I mean, that’s just terrible. So the reason why the Government is giving bosses the right to sack doesn’t stack up. All it does is intimidate workers—that’s just the reality. Now, that’s official, but as we all know, the Government knows best, because their grandfather invested in their useless son, who came to Parliament—something along those lines.

Intimidated workers, as we’ve heard already, don’t complain about poor safety conditions, and I know this, coming from the workplace. Intimidated workers don’t complain about abusive bosses or, sometimes, sexual harassment. Intimidated workers don’t sign up as union members—it’s so sad—and intimidated workers are a Christmas present for bad bosses, whom this Government wants to empower. We support small businesses and their right to a 90-day rule because a business with under 19 employees needs that support.

Carl Bates: Show us how you support businesses.

Hon WILLIE JACKSON: Well, we have shown you how. We have shown you how over the last few years, but you choose to ignore that. You choose to breach your own rules, your own principles, the very tenets of democracy that you love to waffle on about, but when you get a bit of power, you go crazy and attack communities: Māoris, workers, women—everyone.

We support small business. We can all understand, though, that small businesses don’t have large HR departments to vigorously vet potential workers lending a pressure valve if they hire a poor fit for a small business, but extending that to large corporations and companies who do have large HR departments means bad bosses who want to exploit are given more power to do that.

This Government is standing with those who already have the power, and ramming legislation through under urgency with no public submissions is an abuse of power for the powerful. This is a Government for the few, not for the many. It’s a kick in the guts to the many working-class families that their ability to get minimum wage jobs will actually be intimidated and threatened by the legislation, not enabled and empowered by it. That is why this legislation is so offensive.

This far-right, race-baiting Government will tell you this law—[Interruption] That’s true. I think we’re all agreed on this side—we all agree with that, don’t we? I’ll say it again—this far-right, race-baiting Government will tell you this law will allow bosses to take on more workers, as if giving large corporations the right to sack before 90 days is helping the worker. Only National, ACT, and New Zealand First can kick workers in the guts and then call it a helping hand.

We hear them: “Oh, we’re helping them. We love them.”—oh, great, yes. The research, however, shows that the only discernible gain is a drop in the cost of dismissals and making workers feel bullied. Bullying anxious workers into being intimidated helps no one other than the boss who is exploiting the dynamics—as we keep hearing from our side—in that power relationship. The employment laws should be there to protect the vulnerable, not empower the bullies, who are all great friends of the ACT Party, National Party, and New Zealand First.

This really is a disgraceful piece of legislation. The common thread of policy this Government is ramming through right now is bashing people their voters don’t like. That’s malice, not good policy. Good governance demands more than empowering your abusive friends of your political circle, which this crew is doing. There’s no sense in this law and no wider public good other than benefiting bad bosses. It’s counter-productive and it is offensive to the communities and the people we represent, and we reject it and oppose this legislation.

MIKE BUTTERICK (National—Wairarapa): Thank you, Madam Speaker. The bit the other side over here continually seem to miss is that the extension of the 90-day trials works both ways. That’s both ways: for the employer and the employee. This country’s been built on a premise of having a go—giving people a go—having a fair suck of the sav. It’s not about exploitation—that’s rubbish. It’s about creating opportunities for employment, and that’s why I’m pleased to support this bill.

REUBEN DAVIDSON (Labour—Christchurch East): Thanks, Madam Speaker. I acknowledge you, Maureen, in your new role as Speaker—fellow resident of Te Wai Pounamu, or, if you’re from the New Zealand First Party, the South Island. This is my first time speaking in the House. I’d like to thank the voters of Christchurch East for backing me to get here.

This is about balance, it’s about fairness, it’s about power, and, most importantly, it’s about people. I want to speak about this from the perspective of an employer, because that’s a perspective I’ve known firsthand and it’s not, as some members across the House would have you believe, the exclusive purview of ACT, National, and New Zealand First MPs. I’ve directly employed a large number of people across more than two decades working in the broadcast industry—a very diverse range of roles in a fast-paced and challenging work environment. I believe that we have a responsibility as employers, and if we get it wrong, it’s more often our fault, not the employees. Did we provide the induction, orientation, and training and support required? Is the job we created on paper even plausible in reality?

Our team have also employed people, but, more than that, we’ve represented them, we’ve fought for them, and we don’t claim to own our workers, but we definitely respect them. Ninety-day trials do not respect workers, and 90-day trials won’t be fair for the working people of Christchurch East. Don’t take just my word for it; a rare thing in the House at the moment is a regulatory impact statement—so rare, I can’t even say it properly. It spells it out—spells it out—on page 1, “insecurity for employees”. Turn to page 7, paragraph 26, point 2: Pacific peoples; 26, point 4: people working in the construction, wholesale trade, retail trade, and hospitality industries; 26, point 5: people earning lower wages. These are the people of Christchurch East that I represent. These are the people who will not be served by this change.

No one I met during my time in the election campaigning asked for less job security. If this Government was a Christmas movie, it wouldn’t be Love, Actually; it would be The Grinch. But, jokes aside—jokes aside—it is disappointing to see the select committee process dodged for such an important decision. That’s not good governance and it doesn’t respect workers.

Before I finish, I’d like to ask that member to take a moment—take a moment to consider the 90-day trial. Do you really believe in it? Do you really believe in the 90-day trial? Because, if you do, live by it, and put yourselves as a Government on a 90-day trial. The election was on 14 October—that’s when you got your mandate, that’s when this Government was hired, so, on 12 January, that’ll be 90 days. I look forward to a referendum to their employers, the voters of Aotearoa New Zealand: do they think this Government is capable of doing the job they were hired for? Do they want to keep them? Would you give your employers, the voters of New Zealand, the chance to have that say on 12 January? Right now, I don’t think they would.

TIM COSTLEY (National—Ōtaki): Thank you, Madam Speaker. I understand the ideological need that maybe members opposite feel to oppose this out of principle—until there is 15 minutes until dinner!—but I actually believe in 90-day trials and am happy to stand by our 100-day plan. The people of New Zealand voted for it at the start. They’re getting what they voted for, and I can tell you what the people in the good Ōtaki electorate want: they want a go, they want to have a fair crack at it, they want an opportunity. Then you talk to employers in my electorate—talk to them across the country—it’s a risk; they’re putting their money upfront. They’re creating the opportunity. That’s how this economy is driven—it’s people like that giving someone a go. I’ve had family members that directly benefit from this. So we need to give people a go. That’s why I’m commending this bill to the House.

HELEN WHITE (Labour—Mt Albert): Thank you, Madam Speaker. I’m just going to comment on the comments that I’ve just heard, which were that they create this and they give these people an opportunity—fairly paternalistic language.

I gave an example in my earlier speech of a woman who goes from a minimum wage job into a job at Starbucks. That person is contributing to the workforce as soon as she arrives, and she’s the very person that I’m worried about because of the vulnerability that she has inherently.

I have long experience as an employment lawyer, and I did that job because I was concerned about power imbalance. There is always a value in employment. It is a huge deal in our society, but both parties are valuable. It isn’t a case of people giving others an opportunity and nothing coming back; it’s reciprocal, and there’s no balance in this legislation.

A balance has been struck where smaller employers are allowed a different set of rules from big ones. The advantages that are being given today by the National Government are advantages to large employers. Large employers are the ones that we hope will have the best and most robust and most fair processes. What that will do is it will mean that lots of people in New Zealand—I think the amount quoted was 76 percent of New Zealanders—will be working in environments which are structured and are robust, and it is not a lot to ask that those businesses reflect our values and are fair businesses that treat people fairly. What this law is suggesting is that they no longer have to do that. I’d like to go back to the comments of my friend Willie Jackson, who talked about the actual precariousness and fear of those workers, because that’s what I have seen and that’s what I am concerned about.

If you can be dismissed in 90 days, it is an issue that if somebody makes a pass at you, if they say something inappropriate, or if they treat you badly, you are going to be fearful. You cannot afford, if you are like the woman that I described earlier, to actually go out on a limb in any way. You can’t afford to question the dynamic in the workplace. So it is a risky situation. It is precarious—you can’t afford to lose your job. Now, you might be able to afford to lose it if you’re on 180,000 bucks, but you really can’t afford to lose it if you’re on $70,000 a year and you’ve got three children to support, and you’re not going to be able to lose it next year—you’re not going to be able to afford that kind of risk because the costs that you will be suffering at that point are quite high.

I talked about the connection between this legislation and the other proposals of this Government which are to gut things like free childcare and half-price transport—all of which support our families and women like the one I described. These are a big deal. We have just fought an election on the basis of the cost of living, and I would ask for a little bit of empathy and reflection about who it is who most needs help in a cost of living crisis. It is the worker on those kinds of salaries. They’re the ones, and these are the very people that this law makes vulnerable as soon as they move jobs.

Now, there is a concept called portability of employment and there’s a concept called flexibility, and I want to draw a comparison. The concept of portability of employment is now being used in America, and it’s about making sure that workers can move. They can move up in the world and they can actually move around the workplace. That is an employee-centric, positive approach to getting some flexibility, but that’s not what this Government has focused on. It’s focused on a kind of flexibility that’s all about stripping workers of all their power. That, apparently, is supposed to miraculously help them. It’s supposed to help them, and we’ve heard that today, that workers are, apparently, begging for the opportunity to be exploited—to be in situations of vulnerability.

I have put up a challenge to you, and I will put it up again when we go into the committee stage. I will say to the Government: why don’t you have a look at some methods of portability? Why don’t you free up these employees that you are so freeing up to flexibility—why don’t you free them up from things like restraints of trade, which big corporations like Amazon and Starbucks are stopping people moving on with, and those sorts of things?

I want to see your money where your mouth is, in the Government. I want to see the Government look at those things that are constraining those workers from moving up in careers, rather than these kinds of forms of flexibility. What they, in fact, do is constrain employees and keep them in low-paid work, because, as I explained, a woman who has three children and who is working in her locality cannot afford to move to an employer who is going to put her on this kind of trial if the risk is that she will get fired for no good cause in 90 days. She cannot afford to take that risk, and that actually would be a pathway, usually, for her to increase her income.

I love the idea of a kind of response to the cost of living which is actually about letting people have a decent go and move up in a workforce. So I want to see that, and I challenge the Government to look much more broadly and creatively. Those members are not going to get the opportunity that, in fact, they should have had in a select committee to hear such ideas, to hear such stories, or to hear the stories of people who have been hurt when they’ve been vulnerable. There are so many stories out there because there are many forms of this vulnerability. The Government is not going to get to hear those stories, and the New Zealand public are not going to get to tell those stories, and there won’t be a lot of listening or learning going on.

But I challenge the Government to have a little bit of empathy and to put yourselves into the boots of the person who is the woman I’m talking about, who has the three kids, who’s on $70,000, who works in a minimum wage job, and who just wants to feed her kids and get ahead. Put yourself into her shoes and ask yourself whether, in fact, in that situation, it would be some job that you’re willing to do and what you would do in those circumstances. If you were in that role, what would you do? Would you move into another job which might pay a little bit more if, in fact, it’s risky?

So that’s my great concern, which is that this will be a movement backwards and that we will see people become more vulnerable and we will see the most vulnerable become more vulnerable as a consequence of this law. I don’t agree that there’s a need to rush this through or that there is nothing to discuss here. It’s a fundamentally different concept, bringing this kind of trial in when we are talking about big business, because, as I have said in my earlier speech, this is actually a situation where big business could put their big pants on, get a decent process together, and treat workers right. They could get a decent culture and they could do those things, and everyone would be better off. That’s a better way to handle that situation, rather than saying that they don’t have to have a process and they don’t have to have fairness, and taking down the standard in our whole society.

That is a very sad outcome indeed, and who’s going to pay the ultimate cost for this degrading of the culture to the point where somebody is dismissed? I take you back to this woman who was working in my community. Her kids go to the local schools. Who is going to pay the price if she takes the job at Starbucks and then she loses the job due to a trial period? Actually, it’s going to be all of us. All New Zealanders are going to have to pay the price, because that woman is going to be right on to the benefit. That’s what’s going to happen. We will be paying the price, and there is no reason for that to occur when, in fact—

DEPUTY SPEAKER: The member’s time has expired. Thank you.

GRANT McCALLUM (National—Northland): I rise in support of the Employment Relations (Trial Periods) Amendment Bill. What’s become quite clear is it’s obvious what we’re starting to see from the outside of the House now is their pure hatred of big business. These are the people that actually employ people and run businesses, drive our economy—and they don’t care about them. That is what they’re, effectively, saying.

What we care about is giving all individuals an opportunity to have a good job—and good employers do that. Employers actually don’t wake up in the morning and say, “We’re just going to get rid of people for the heck of it.” When they employ someone, you advertise, you interview—it’s a real process and a cost. So big business, just like small business, doesn’t want to waste money. They want to employ good people, and this will help them do it. I commend this bill to the House.

A party vote was called for on the question, That the Employment Relations (Trial Periods) Amendment Bill be now read a second time.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

Bill read a second time.

DEPUTY SPEAKER: The bill is set down for committee stage immediately. I declare the House in committee for consideration of the Employment Relations (Trial Periods) Amendment Bill.

In Committee

Clause 1 Title

CHAIRPERSON (Maureen Pugh): Members, the House is in committee on the Employment Relations (Trial Periods) Amendment Bill. This bill is drafted in clauses. We will debate the bill clause by clause, starting with clause 1. Members may wish to consider Speakers’ ruling 127/2, which indicates that clause by clause debates are generally narrow and should confine themselves to the words of the particular clause and issues contained in them. Having said that, because the bill has not been to a select committee, the debate on clause 1 may be more broadly about the bill—Speaker’s ruling 127/1. Members, we come first to clause 1. This is the debate on the title. The question is that clause 1 stand part.

CAMILLA BELICH (Labour): Thank you, Madam Chair, for allowing me the opportunity to participate in this debate on this bill, which, as you have correctly stated, is not a particularly long bill but particularly impactful to a large proportion of the population.

In relation to clause 1 that we are debating at the moment, I think there is an amendment on the table, from one of my colleagues, to amend the name of this bill because I think that there could be other titles that could be more appropriate to the Act than actually the Employment Relation (Trial Periods) Amendment Bill. Actually, what this bill does is not just amend trial periods, it takes it from a rather smaller proportion of the population—and that’s 28 percent of the population that are currently covered by trial periods, if they are new to their employment—to 100 percent of the population, or almost 100 percent of the population. I do have a question for the Minister for Workplace Relations and Safety around that. I’m just trying to think where the correct place in the bill would be to discuss that, and, I think, probably the title clause, as you’ve said, because it can be slightly more widely interpreted, might be the best part.

In the regulatory impact statement, which I do commend for being very thorough and going through a lot of the details surrounding the bill and citing a lot of the evidence relevant to this bill, one particular area is noted that is excluded from employers being able to implement trial periods within their employment agreements. It’s not particularly mentioned in the bill, so that’s why I’m bringing it to your attention in clause 1. But, in terms of my suggested amendment—my colleagues have another suggested amendment that this more correctly reflect the fact that we’re going from a small percentage of the population to a large percent of the population being covered by trial periods.

It’s important to ask, I think, the Minister at this stage about the accredited employer work visa, which, as I understand, are covered by the immigration rules, which would, effectively, mean that people coming into work in New Zealand won’t be able to be covered by trial periods, and New Zealanders who already are here, working, would be covered by trial periods. Of course, I’m not advocating for a further extension of that. I think that it’s better if fewer people are covered by trial periods. I agree with the regulatory impact statement, which states the status quo is the best and most preferable option here.

But I do think it’s an unusual position to be in to be saying to people under the accredited employer work visa scheme that it is not appropriate for you to be covered by trial periods but it is indeed appropriate for everyone else not covered by that visa to be covered. So I wanted to ask the Minister about advice on that, in relation to this first clause of that bill, and also to consider if she has, in fact, considered a more accurate title for the bill. If you were to read the title of this bill, you may perceive that this is a small amendment. In fact, actually, it extends the coverage of the trial periods quite considerably from only 28 percent of the population who enter into new jobs, to, in fact, the entire population of employees. So those are my, really, initial questions for the Minister, in relation to the first clause.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Madam Chair. I appreciate the guidance around how this debate will be carried, particularly the ability to analyse it more broadly due to there not being a select committee stage.

I want to pick up on the previous speaker Camilla Belich’s comments regarding the interactions with the immigration system. I also wanted to get a sense of whether there has been any exploration of the interactions with the migrant exploitation protection visa. So, for example, currently if somebody has been abused or has received comments in relation to their hair or their weight, or has faced harassment in workplaces where 90-day trials don’t apply, the employer wouldn’t be able just to get rid of that worker to avoid having to go through a process where that worker raises those harassment issues. I’m just wondering, then, after this bill, whether the use of the 90-day trials to get rid of workers where instances of harassment or exploitation would have occurred could still trigger eligibility for the migrant exploitation protection visa.

Stuart Smith: Point of order. We are debating clause 1. I haven’t really heard anything relating to clause 1 in the member’s speech so far.

CHAIRPERSON (Maureen Pugh): Thank you. In the opening remarks I made, I did make comment that the debate on clause 1 may be more broadly about the bill, given the lack of select committee process.

RICARDO MENÉNDEZ MARCH: I appreciate that, Madam Chair. Why I’m taking the opportunity to bring that up here is because it’s important to unpack the level of advice and consideration that would have been given in relation to this bill. And I think the title clause is where it’s most appropriate to raise this because, ultimately, there will be interactions with other parts of the system as a result of this bill and otherwise it’s kind of hard to point it out elsewhere. So the question I had was: has the Minister received or sought any advice regarding how these changes interact with the migrant exploitation protection visa?

I also wanted to get a sense of, for example, whether there had been any advice sought on the impact of wage scarring—whether 90-day trials would have contributed to wage scarring as a result of people entering below the poverty-level benefits, and then that potentially impacting the wages that people then receive after to try to get out of the poverty-level benefit. Because, ultimately—and why I think this is important to unpack at this point—the Minister, in her previous contributions in the debate, talked about how this bill would help increase productivity and would benefit the economy, but we know that wage scarring is one of those things that can contribute to lower productivity and can contribute to a low-wage economy. So I’m just keen to understand whether she sought any advice in relation to that.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you, Madam Chair. I thought I’d take an early call to make sure that we are brought back to the specific bill. Both the member Camilla Belich and Ricardo Menéndez March raised issues about migrant workers and the accredited employer work visa. I can let both members know that immigration instructions set out the accredited employer work visas, not the Employment Relations Act. So there is no change to that specific area of law or regulation, because that’s not actually in the Employment Relations Act, and we should come back to the bill. The issue is outside of my portfolio powers and therefore outside of this bill.

ARENA WILLIAMS (Labour—Manurewa): Thank you, Madam Chair, for the opportunity to ask a few specific questions about clause 1, given that we are simply talking about the naming provisions around the bill, and then, more broadly, the bill, because we haven’t had a select committee stage. So I’ll ask the questions of the Minister first so that she has time to consider them.

There is an amendment in my name to change the title of this bill—

Stuart Smith: Busy member!

ARENA WILLIAMS: —to acknowledge that—very busy member. Thank you to the honourable member for recognising how hard I am working to improve this legislation for the Minister. My amendment would recognise that this is a renewal of a provision that has existed in law before, and my questions to the Minister are about certainty for employers, for employees, and for organisations that represent employees and workers—about these amendments.

So my first question to the Minister about the proposal of mine to change the name, to recognise that this is a renewal, is about what the legislative history of the amendments to trial has been. I’m particularly interested in the number of times that this legislation has been brought in and then taken off the statute book, given that I think we need to have in our legislation a proper recognition that there is very little certainty for employers and for employees around these clauses. And that will point us, as a Parliament, to the need for some shared understanding in the House around provisions that could give employers further certainty.

My second question to the Minister is about how employees and employers can look at the history of legislative amendments and gain some help with the kind of individual and collective agreements that exist between them so that they can live on through changes of Government policy in this area. I’d like the Minister’s answers to those questions before I ask any further questions, but I hope that she would consider the change in the name of the bill that I propose which would recognise that this is a reinstatement or a renewal of the provisions which existed before.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you very much. Look, I don’t support the amendments to the title clause of this bill from either that member or Camilla Belich’s concern about the Hon Duncan Webb’s proposed amendment to the title clause.

But specifically talking to your question about the historical amendments of trial periods, I would simply refer that member to my first reading speech, which was not that long ago.

CAMILLA BELICH (Labour): Thank you Madam Chair, and I thank the Minister for her comments around my last contribution and also her confirmation that indeed it will be the case that those covered under the accredited employer work visa will not have trial periods, whereas the rest of New Zealand will.

I wanted to ask a follow up question to the member around—even though I understand it’s in a different Act and it is under the immigration instructions which is perhaps not her portfolio—if she has discussed this matter with the Minister of Immigration in relation to the intersection of the two different portfolios that are relevant today. And, also, to note that in the last bill the Minister oversaw, the Fair Pay Agreements Act Repeal Bill, there was an amendment to the Employment Relations Act, which is, as she’s correctly noted in this instance, a totally different Act as well. So these matters do come up from time to time, and I wanted to know, following her earlier contributions in reply to my question, if she had in fact engaged in any advice or turned her mind to that. I do note that it is included in the regulatory impact statement.

So the other things that I wanted to comment on is also to support the amendments put forward by Duncan Webb and Arena Williams in relation to the titles. I don’t think I mentioned the titles when I last made a contribution, but it was Duncan Webb’s amendment that I was referring to. So just for the benefit of the Chamber, the amendment is to change the title from the current title, the Employment Relations (Trial Periods) Amendment Bill, to “This Act is to Legalise Unjustified Dismissal (Employment Relations Amendment Act) 2023”, more effectively encompassing, I think, the purpose of the Act.

Additionally, I support the amendment of my colleague Arena Williams, who referred to wanting to change it to the “Employment Relations (Trial Period Renewal) Bill”. That is because this has come up a number of times and it is a change back from a previous policy which was adopted in, I think, 2017 to restrict the number of employers who are able to engage in trial periods to, in fact, include that to be a larger number. So I think that title, in reference to clause 1 of the bill, more effectively conveys the meaning of that.

So I wondered, primarily, to note her comments on the title, but wanted to know from the Minister about her discussions with the Minister of Immigration.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Madam Chair, and picking up on the Minister’s previous comments regarding some of those questions regarding the interactions with other parts of the system, for example the immigration system being outside of her portfolio. I just wanted to acknowledge that this will have consequences in other parts of the system, and that I guess it’s not unfair to ask the Minister to address what level of interaction, if any, she would have with her counterparts in the development of this bill.

In relationship to the title, I mean, there’s the words “trial periods” and I know that she stated that there hasn’t been a select committee process due to this being in the coalition agreement, but at any point did the Minister seek any feedback from worker representative groups around 90-day trials specifically? Particularly around the kind of trial periods element that we can find in the title, and if so, what was the feedback that she would have received as part of any consultation work? Or was it the case that she would have just spoken to employers in getting to this?

The previous member Camilla Belich and the amendments that some of the Labour Party counterparts, in terms of the reshaping of the language, what I think they illuminate is the intent of the bill, and I guess while the title may in and of itself not have a huge impact in the day-to-day lives of people, it does signal how the Government is framing this piece of legislation. So that’s why I’m interested in part of that framing—containing the title—what level of consultation she would have had with worker representative groups?

HELEN WHITE (Labour—Mt Albert): Thank you, Madam Chair. I want to ask the Minister a question which relates in part to the issue of the carve-out of people who are on work visas because I wondered how much she knew about the logic behind that carve-out. My own understanding is that the carve-out will have been because people acknowledged a lot of investment has come, and a lot of risk has come into somebody coming into the country, and there are other ways of handling that situation which don’t involve a right to terminate suddenly in that early period.

I wondered if the Minister had an opportunity to look at that model and see what was considered because it seems to me there’s an immediate connection with some of the other groups of workers who also could claim a similar risk that they’re taking and cost that they’re paying if this law goes through. I wondered whether it might open the door to a carve-out for some of those other people in different classes. I wondered whether, for example, workers who are moving from one job to another who are actually leaving a job and leaving a good wage might be people that could be carved out very much on the same logic that they are carved out because they are migrants coming to the country on work visas. I also wondered whether we might apply that to some of the other groups that would be particularly at risk as a consequence. So I would like to know whether the Minister looked at that part of another law when she considered this and whether she’d consider those kinds of carve-outs.

I also just wanted to talk about the issue of the amendment that has been put up by my friend Duncan Webb. That does seem to be a clearer articulation of what this is, and I wondered, again, to link it to my last point, whether the Minister had considered whether it was all right to do something unjust to someone in the first 90 days; to terminate them unjustly? Is it all right to terminate them unjustly in that period and not all right when that period has expired? So I’d love an answer to that question: is it OK, why is it OK? I’d like to know whether that’s the way that she sees things or is she suggesting that if there is injustice there should be some recourse? Because I heard some comments made from the Minister in one of her speeches which suggested that she really saw the pathway, for example, to discrimination and unjustified action as still being available, etc.

So is she saying that “No, this is wrong. Duncan Webb’s wrong because there will still be pathways to justice here if, maybe, the bar is higher.” Is that what she’s saying? Or is she saying it’s OK to be unjust in this period; workers in this situation just have to accept that they will pay a price here because it’s better in the long term for our people across the country to allow injustice of any form or favour? I’d like an answer to that question. Thank you.

RACHEL BOYACK (Labour—Nelson): Thank you, Madam Chair. I appreciate the opportunity to take a call on this bill. This is the first contribution that I intend to make throughout this debate, and later on in the debate I will bring some amendments that I intend to speak to, but for this first contribution I specifically want to ask the Minister about the engagement that she has had, particularly with workers who have been affected in the past through 90-day trial periods, to specifically check and see what has been the impact on their lives.

This is something I can talk to from personal experience. A member of my family was dismissed under a 90-day trial and I wanted to bring that to the House tonight because I think it’s really easy for those who are promoting these types of trial periods to talk around the rights of employers and one of the things around the Employment Relations Act is it does actually specify the rights for employers; it specifies the rights for employers and employees.

So I don’t think anyone in on this side of the House is suggesting that there shouldn’t be a process for dismissal of someone who is not performing their job, but the particular experience that my family member had was working in a job that they had worked in previously. They had worked in the industry previously in a number of roles in the hospitality industry, and so it wasn’t a job that they didn’t know how to do or didn’t have experience in. I particularly wanted to ask the Minister what consultation engagement she’s had with these groups of workers to really understand the impact on them, because my family member was dismissed and the way in which he was dismissed caused him significant mental health issues for a number of months following. The way in which he was dismissed was that he was brought into a busy cafe, in front of many customers, and sat down across the table and told “Collect your knives; leave.”

When someone is in their 20s and that’s their experience in employment, it’s devastating. He wasn’t told why; he had been in the role—I think it was day 88 or 89; he’d been in the role for nearly 90 days, hadn’t any matters raised with him or any concerns. He’d worked in previous hospitality jobs in the exact same role, never been dismissed, never been given a warning, never been late for work, never underperformed, but something had obviously disconnected in the employment relationship, which we know happens. I’ve worked on behalf of employers, by the way. I’ve given employment advice to employers, including performance advice, including issuing people with warnings, including dismissing people, and including putting people through redundancy. So I have actually, as well as having been a union organiser, worked on the other side, so I just want to put that on the table.

My specific question to the Minister is around has she actually sat down and talked to those workers, like my family member—the mental health impact, for months; he never knew what he did wrong. We all want to see young people succeed in their employment but one of the things about the Employment Relations Act is it talks about good faith. That behaviour is not good faith from an employer, and so I really do want to get to the bottom of what the Minister really sees is the impact on, particularly, our young people in the beginning of their careers, to ensure that they are actually heard and consulted through this process.

I ask this question because we’re not putting this through a select committee, so we’re not having the opportunity. I just wanted to make that point, which is one of the reasons why the scrutiny from our side is so important and why I do seek to make a number of calls to ask a number of questions of the Minister. We’re not allowing people like my family member to actually make a submission like the one I’ve just made, and there are many more examples like that—make a submission of that nature to a select committee.

My specific question to the Minister is: through this process, before actually coming to the House and bringing this legislation, has she sat down with actual workers who have been on the receiving end of a dismissal under a 90-day trial and said, “What was your experience? How did this work for you?”, in order to actually help inform a piece of law that’s going to work for employers and employees because, as I’ve often said in this House, we have obligations to both parties. As parliamentarians, we’re here for all and so we actually need to consider the needs of everyone when we’re having this debate. So that’s my specific question to the Minister: has she actually sat down with young employees who have been subject to a dismissal under a 90-day trial and actually heard their stories, and does she have a response for them? Thank you.

GRANT McCALLUM (National—Northland): I move, That debate on this question now close.

A party vote was called for on the question, That debate on this question now close.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

CHAIRPERSON (Maureen Pugh): The Hon Dr Duncan Webb’s tabled amendment to clause 1 is out of order as not being an objective description of the bill.

The question is that Arena Williams’ tabled amendment to clause 1 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

A party vote was called for on the question, That clause 1 be agreed to.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Clause 1 agreed to.

Clause 2 Commencement

CHAIRPERSON (Maureen Pugh): Members, we now come to clause 2. Clause 2 is the commencement. The question is that clause 2 stand part.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Madam Chair. Just in regard to the commencement, the Minister spoke about—well, she didn’t speak to some of the pieces of evidence that we did have in relation to 90-day trials not boosting wages, etc. I just wondered whether she had considered delaying the commencement of this bill to allow some evidence-gathering exercises to, for example, assess the impact of those 90-day trials and the impact that that would have had on workers and on things like wage scarring. In my previous contribution in Part 1, which the Minister didn’t address, around the impacts of wage scarring, those are really important things, right? It affects things like the gender wage gap, the ethnic wage gap; it affects overall incomes in our country.

Carl Bates: What’s the question?

RICARDO MENÉNDEZ MARCH: My question is whether the Minister would have been open to considering, or had received advice on considering, a different type of commencement date so that she could have then trialled out—for maybe 90 days—the impacts that the status quo was having and to seek some further advice on what the past arrangements had. So really interested to understand why there is such a rush to put this through when the Minister had acknowledged that she’s not really basing this bill on any evidence. Looking at the coalition agreement, clearly there’s an appetite to make decisions based on evidence, so the commencement date just feels like it goes against that intent in the coalition agreement, by trying to have this Act come into force the day after the date on which it receives the Royal assent. So, again, just checking whether she’d like to honour her coalition agreement by allowing for a later commencement date to gather some more data and information.

CAMILLA BELICH (Labour): Thank you, Madam Chair—Mr Chair. I’m sorry; I hadn’t noticed that the Chair had changed.

CHAIRPERSON (Teanau Tuiono): I have transformed.

CAMILLA BELICH: It is certainly a transformation. Mr Chair, I have a few comments to make on clause 2, the commencement provision, and one is really for the Minister. In relation to this particular bill, which he is seeking to turn into an Act, it is exactly the same as a bill in terms of its nature of content, and so I wonder in relation to the commencement of this bill whether she had considered just recycling the 2011 bill in relation to this provision and, indeed, the whole Act and whether she got any advice on that. I’d be interested to know if she did do that; or, if she didn’t do that, why she decided not to do that. So that would be my first question.

The second thing I wanted to ask was just really about two amendments, which I understand my colleagues wish to speak to in their names. The first is in the name of colleague Ginny Andersen around clause 2, the commencement provision, seeking to replace the words “on the day after” with “90 days after”. It just seems fair, doesn’t it, that the New Zealand public gets to sit with this bill for 90 days as we expect them to sit with insecure and unconfirmed employment. So I think that that’s valid and fair and has a nice kind of poetry to it, if I could be so bold. So I commend my colleague for putting forward that amendment in relation to the commencement clause.

I have another colleague who has put forward a different amendment in relation to the commencement. This one is significantly longer. My colleague Arena Williams has suggested that instead of what is currently included in clause 2, we change it to “This Act comes into force on 9 months after the date of Royal assent.” It’s probably slightly less poetic, and I hope no offence is taken to that by my colleague Arena Williams, but it is a significant amount of time in which I think we could perhaps, if the Minister was of a mind to, do a select committee process once this bill has been passed. I’m sure we could do that within the nine-month period, and that obviously would affect its commencement. But it would mean that it was a meaningful process—that we could effectively delay commencement, which is what we’re discussing at the moment, until after a period of consideration.

Obviously, there’ll be the summer period when not as many people will be around to make submissions, and I’ve heard other colleagues discuss that in the past as well. But then we would have a significant amount of time where, prior to commencement, it would be possible for the Education and Workforce Committee—of which I’m a member; and I see our chair is also in the House—to engage with the content of this bill and hear submissions.

As I was discussing in the previous reading, a number of people have indicated to me that they would be in a position to make a submission and want to make submission on this bill. And so I think delaying the commencement in order to have a select committee process would somewhat go towards making the process of urgency, which we are now debating this bill under, slightly fairer and more justifiable—because of that delayed commencement.

So, as I said, although the Arena Williams’ amendment is not as poetic as I think Ginny Andersen’s amendment is, Arena Williams’ amendment does allow greater scope for delaying the commencement in order to go through proper process that would allay a lot of the concerns that we’re hearing from the public.

So I do wonder if the Minister has—it doesn’t have to be specifically around this particular amendment to clause 2—had advice around a subsequent select committee process that we may be able to enter into. That would be really interesting to hear. So I look forward to hearing the Minister’s comments on that and also on the substantive provisions that my colleagues have sought to introduce under clause 2 as well.

ARENA WILLIAMS (Labour—Manurewa): Thank you, Mr Chair. I have two points to make on this clause. The first is to highlight the need for the nine-month period that I have suggested in my amendment. As my colleague Camilla Belich has pointed out, this would allow the Minister to write to a committee of her choosing, say it was the Education and Workforce Committee, to conduct an inquiry. That has been traversed by Camilla. That is not what I will be speaking about. I would like to help the Minister consider some of the other options available to her, perhaps using a model like Scotland’s Futures Forum to discuss this kind of amendment, which has been back and forth, in and out of our statute book, and really does call for some bipartisan agreement around it.

So something like Scotland’s Futures Forum, or a citizens’ forum, which are two different things, are models of engaging with the people who a law affects, but while presenting them with evidence that has been independently gathered, so that they might make informed decisions about their policy making. My colleagues are very excited about this. They’re having a very lively conversation about it beside me.

So what Scotland’s Futures Forum allows as a lawmaking model for Parliaments like ours is to delegate decisions that have consistently been passed back and forth between major political parties where there is no agreement. This kind of model, if the Minister were to choose to take up my amendment and then allow a nine-month period, would allow her to convene a bipartisan forum that also had representatives of people who are most affected by this—employers, employees, but also experts—and to consider the evidence for this.

I think the first briefing of such a forum, which would be considering this piece of legislation, would consider, perhaps, the research of Motu. It was published with funding from the Treasury into the effect of trial periods in employment on firm hiring behaviour. That research asked the question about whether the option of using trial periods had affected the quantity of hiring by firms and the types of individuals hired, and the stability of employment relationships. It would be really useful for a committee of Parliament to be informed by the expert evidence, but to have alongside it individuals who are outside of Parliament who were most affected by this law, hearing that evidence and making evidence-based decisions.

That first briefing from Motu would show that research they conducted found no evidence that the ability to use trial periods significantly increased firms’ overall hiring. They estimated that the policy effect was statistically and economically insignificant: a 0.8 percent increase in hiring on average, across all industries.

My contention here is that it would be really useful for the Minister to be able to spend that nine months considering—with a group of parliamentarians who are interested in the long-term future, in providing certainty to employers—the evidence basis for making these kinds of decisions. It may be that that forum—

Hon Simeon Brown: They just want another working group.

ARENA WILLIAMS: —and there’s some very enthusiastic discussion over this side of the Chamber also, on the Futures Forum. I look forward to discussing it with that Minister, because there are some issues in our infrastructure pipeline that could do with some bipartisan treatment too. But this would allow the Minister to consider how we get longevity in this policy. How do we find a common ground? Because I have faith that that Minister is interested in finding common ground here. That is how our democracy works when it is most flourishing, when we agree on the way that we can serve our people the best, and this is a great option for that. I hope she will consider my amendment.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you, Mr Chair. I wanted to specifically talk to the contributions that have already come, and I suspect will also follow, about changing the commencement clause. Look, this is pretty standard that a commencement happens after a Royal assent. I don’t think anybody is challenging that. But would we delay it for more information? No. This has been a widely canvassed debate since 2009. Ninety-day trials have been around in New Zealand since 2009, so since that time period, we have gathered quite a wide range of information that has informed our commitment to the New Zealand public. It has informed our commitment as part of the 100-day plan. We have a clear mandate from the New Zealand public to do this change.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Mr Chair. So I take the point that there’s no intent to delay it, but I do want to unpack how it matches the intent to use the best available data—particularly when it comes to chance or certainty this bill actually matches with the intent in the coalition agreement. Because I just heard that there is no data gathering; the Minister talked about the fact that we’ve had a debate on this. But can I just ask: is she confident that this bill honours the coalition agreement in relationship to the best use of data and evidence? So I just want to sort of pick that up.

The other thing is: will she then commit to ensuring—and has she considered then—after the bill comes into force, actually starting to collect any data? Because then, otherwise, we’re just having a situation where we didn’t have data before but there’s no intent to collect data.

So my two questions are: will she commit; will she initiate data gathering after this bill comes into force? And just the consistency with the coalition agreement.

HELEN WHITE (Labour—Mt Albert): Thank you, Mr Chair. I want to ask a question about the possibility of extending the bill to a time when perhaps people are doing better in this country, particularly low-paid workers. My understanding is that the Government has a Budget coming into effect in the April period, so a lot of the policies will kick in there. That’s when a lot of New Zealanders will actually be hit quite hard, I suspect, by things like the lack of childcare payments; perhaps the end of school lunches is my greatest fear, etc.

I understand that the Minister has a different position and thinks that everybody’s going to be thinking it’s the second Christmas because they’re getting $4 a week. I doubt that—there will be things like no support to people for their public transport costs for their children. So I wondered whether we could delay the bill—

Stuart Smith: Point of order. Thank you, Mr Chair. It seems like we’ve drifted a long way from the commencement clause.

Camilla Belich: Speaking to the point of order, I’d note, Mr Chair, that the member was just about to mention her concerns around commencement in this contribution—[Interruption] Excuse me, she just said the word “commencement”.

CHAIRPERSON (Teanau Tuiono): Well, I wait with bated breath to hear how this relates to the commencement.

HELEN WHITE: So this relates to the bill, Mr Chair, because I wondered whether we could delay the bill long enough to see what the impact was of those other policies and then look at this bill at that stage as coming in after that impact has happened. Because if I’m right and the impact is that hurts New Zealanders, then the bill comes in after that period has happened. If I am wrong, then we’re in a situation where, in fact, the bill’s coming in after the good impact and they’ll be cushioned from the blow by all the wonderful things that the new Government’s going to do for them, ostensibly.

So I wondered if we could extend the period long enough to see the impact and therefore people like the woman I described in my speeches—who has children, who is going to be impacted by lack of childcare payments and lack of school lunches and transport costs—would be cushioned from that blow in that period, or the Government’s policies would kick in and she would be so much better off it didn’t matter. That, in fact, she was in a position where she couldn’t afford to take a job that was more risky, from a minimum-wage job, because she risked all those things.

I just wondered whether we could have that extension through the next year, or we could have an amendment which says something like, “This will kick in when a person on the average wage is, in fact, $50 better off.” Then we could do this, perhaps, at that point—when they were less exposed to the risk of it. Thank you.

Hon GINNY ANDERSEN (Labour): Thank you very much, Mr Chair. I’d like to take the opportunity to speak to one of my many amendments that we have here tonight. In clause 2, as already referred to by Camilla Belich, there is a proposal that I’ve put forward in my name to replace the words “on the day after” to “90 days after”. It only seems fair that if New Zealanders don’t even get to say that their fundamental working rights are being legislated away, then surely New Zealanders in our democratic society can have a 90-day period to evaluate this very legislation. If they can be fired in 90 days without the right of any redress or having a personal grievance, then surely it’s a good democratic society that enables the people of New Zealand to vote this bill down, or have a course of looking at how it’s working. I think 90 days is a fitting time to be able to change that.

It’s really important that we highlight the fact of that commencement, because in that is the fact that there has been no opportunity for New Zealanders to give their views or their feedback on this legislative change which has massive impacts upon their daily lives and their working life. To be able to have that “90 days after” put into clause 2, into the commencement—that would enable an additional ability for people to be able to say what the impacts are on their lives.

There have been many instances, as a local MP, when I have had constituents come to me and say that they have had the sharp end of a 90-day trial period, which has resulted in them losing their job. One that sticks in mind most as we talk on this clause is the instance where the former employee said that the employer had four—four—different employees over the period of the past 12 months and each of them, when they had come to their 90 days, had had their contract terminated on that basis. What those employees were doing in the 90 days is they were taking up whichever hours were on offer; they were doing extra shifts; they were working hard out to be able to meet the expectations of their employer in the hope that they would have a permanent position after that 90 days, and four, one after the other, had their contract terminated with no reason. It was a fire-at-will situation for all four of those individuals.

The absolute uncertainty of those employees and the flexibility and the benefits of the employer are way out of balance. It is only right that if New Zealanders are able to be fired after 90 days, then surely we need to take a good look at this bill after the same period—90 days—to see how it is working for our people and how our workers’ rights are being protected.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you, Mr Chair. I just wanted to respond to that member’s contribution. Bearing in mind her rhetoric, she may not be aware that under her previous Government, there were 90-day trials just for small businesses—for businesses with 20 employees or less. If it’s good for businesses and employees and employers in a situation with 20 or less than 20 employees, then it’s good for a large company, too.

There is a question here from Ricardo Menéndez March about data collection on 90-day trials. I’ll be looking to work with officials in the coming years on researching and evaluating the labour market as part of my wider work stream. Talking also to his query about why it’s going through quicker than he may wish it goes through, part of that is because the Government has actually inherited quite a bleak economic outlook and we are wanting to reinstate business confidence as soon as possible.

Hon KIERAN McANULTY (Labour): Thank you, Mr Chair. The issue, of course, when a Minister responds with political responses to genuine questions is that it allows the debate to drag on. We don’t really want it to drag on. We just want some answers to our questions. The issue that we’ve got—in defence of the Hon Ginny Andersen—is that it was a genuine question, made from genuine concerns, and all that she got from the Minister in response was a political response, not an answer.

I think the Hon Ginny Andersen has a point, because we are here, as everyone is, approaching Christmas. Now, some of us in this House might be more motivated by that, and that time frame that it brings, but we are here to debate what this bill proposes. In the bill, in clause 2, it proposes that it comes into force as soon as there is Royal assent. What we have from the Hon Ginny Andersen’s amendment is a proposal that would take into account that, over the summer break, there will be people who are taking on employment. They will be taking, potentially, a break at Christmas and taking on new work. Or they might be taking on new work heading into summer.

The issue that we have here, with a lack of select committee process, a lack of an opportunity for the public, both employers and employees—because it is a mistake to assume and state that all employers are in favour of this—is that this House is yet to be convinced that, if this comes in when it’s proposed, directly after Royal assent, there won’t be people that are dismissed with no reason. We’re yet to hear from the Minister any evidence to say that there won’t be people dismissed for no reason. In the absence of that information, I think it is utterly reasonable to propose that there is a time period that covers the summer period that allows people to take on work and demonstrate that what the Government is saying is the case—that it will allow employers to be more flexible and take more people on without impacting those that are about to start their work.

What is wrong with an idea here with a bill that proposes the idea of a temporary arrangement to see if it works, to take their own medicine and apply the same thing to this? It’s an utterly reasonable proposal. There are other proposals around the commencement date that are a bit longer, but the Hon Ginny Andersen’s amendment uses the exact same time frame that is proposed in this bill, and I think she deserves an answer.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Mr Chair. The commencement date will play in force in summer and there are specific industries that come into life and are more transitional and/or precarious like the tourism sector, for example, where in summer there will be pockets that are more active than others. So the reason why I wanted to ask about the timing of the commencement date in relation to the industries is whether the Minister has any knowledge about the timing of the commencement date in terms of the industries that she expects to be the most impacted as a result of the timing of this bill.

I wanted to pick up on the regulatory impact statement, which we don’t have any opportunities in this debate to kind of have a back and forth with the Minister in relation to it. We do have some information from almost 10 years ago about the types of people who had a higher likelihood of starting on those trial periods, but that was 10 years ago. So does the Minister know which industries and what kind of people will be most impacted by the timing of the bill, as industries tend to hire more people in specific periods? And, if not, why did she not seek that advice in relation to the timing and the commencement of the bill?

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): The people that will be impacted by the timing of this bill will be all people over the next nine years of this Government.

KATIE NIMON (National—Napier): I move, That debate on this question now close.

CAMILLA BELICH (Labour): Thank you, Mr Chair. I have a specific point in relation to clause 2, the commencement provision. So the Minister, when she was responding to a previous question on commencement, stated that it was quite usual for the day after Royal assent to be the commencement date. So I happened to have a copy of the Employment Relations Act, which is the primary Act that this Act amends, in front of me, and I thought it would be interesting to check the commencement date in the Employment Relations Act. I noted, when I checked the commencement date in the primary Act that’s being amended that it actually didn’t have the date after Royal assent; it had a specific date, 2 October 2000.

I wondered whether the Minister had received any advice about having a specific commencement date. This is not a facetious question. It’s actually because one of the key issues with trial periods is a lot of employers get them wrong, and that’s partly because of the high standard that the Employment Court has placed on making sure that trial periods are, for example, between new employees, they can only be in writing, and they have to be before employment commences. So often employers, and specifically because this policy has been related to small employers, tend to get that wrong. I think we’ve referred to previously in the debate the high majority of the number of trial period clauses that have been to the Employment Relations Authority and have been found to be invalid.

So this relates to the commencement clause in that could she please receive some advice on whether she thinks it might be beneficial for New Zealanders to have a specific date rather than the day after the Royal assent in the legislation. That way, if employers or employees were looking as to whether, in fact, trial periods could be used for all employers or, in fact, smaller employers, they could look to that specific date in the commencement, rather than the day after Royal assent. Because, actually, finding the day of Royal assent is quite difficult. I know that the Parliamentary Service is quite helpful. I’ve seen that they do tweets on the commencement date of some pieces of legislation. They confirm—

Hon Rachel Brooking: What are tweets?

CAMILLA BELICH: —Yeah, they do. Yeah, tweets; very useful if you have an interest in certain areas. But I don’t think the general New Zealand public would be so engaged with the parliamentary process to either check the Gazette, which may be where it’s advertised—and that’s actually another question for the member: how do members of the public find out the date of Royal assent? So I’m quite interested on that, and I just think it would provide greater clarity for members of the public to see a particular date. I think it’s not without precedent, as it was in the Employment Relations Act—a specific date of commencement—and it would seek to address some of the issues that we know with trial periods, in that there are still quite a lot of issues with validity and also a high standard in the authority and in the court to look to.

If so, if she was to enlighten us with, in fact, if she had taken advice on that, what date would she be looking at? Because I think it would be unusual to have a date this late in the year, and so perhaps when people were likely to come back to work; perhaps after the statutory holidays in January could be a time period which would be clearer for New Zealanders to know. Because it might be that she might want to have it from 1 January, for example. It might be, in fact, that that’s the day after Royal assent. I don’t know if the Governor-General has plans over the summer or is still, in fact, signing bills or not, but I would be interested to know, yeah, a few things.

So advice on it, what date she would determine could be included in that, and, in fact, how do members of the public—because, genuinely, how do you find out exactly when the date of Royal assent occurs in order to know whether the bill that we’re discussing around the commencement in clause 2 actually is in place or not? So if the Minister wouldn’t mind looking at that commencement provision and just providing some reasoning around the decision to have it after Royal assent.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): I can assure the member that the Ministry of Business, Innovation and Employment will update their own website to allow for members of the public to know when the official start date will be for this new law, and I look forward to the member going online and finding that out. Also recognising that most people do not go to the specific law to find commencement; they go to the governing agencies where information is usually held.

RACHEL BOYACK (Labour—Nelson): Off the back of my colleague Camilla Belich’s excellent contribution, I just wanted to ask the Minister for Workplace Relations and Safety some further questions about this commencement date, particularly relating to my colleague Ginny Andersen’s excellent amendment to give the bill another 90 days before it commences.

So my specific questions related to the fact that the bill reinstates 90-day trials for large employers. One of the matters that’s come up in the debate is that for many of those employers, one of the reasons why this side of the Chamber believes, actually, they don’t need 90-day trials is because they’re able to, effectively, manage a fair dismissal process, if they needed to do one, with a standard trial period that had already existed in law. For example, we have, often, these large employers managing employment-relation matters with HR teams. So one of my questions—as, I think, Camilla Belich pointed out very succinctly—was around the fact that we’re about to approach Christmas. So, you know, I’m really mindful for HR professionals, leading into Christmas, from those large employers, that if they, for example, use template employment-agreements—they’re quite common. So being able to give people who work in areas like human resources, like legal teams, like employment-relation teams within a large business that extra time before the commencement comes in, to ensure they’re following the updated law.

So my question for the Minister is: has she actually considered that having a 90-day delay would assist some of those large employers? What I wouldn’t want—I think none of us would want our poor HR teams having to work on Christmas Eve, updating employee templates. I think that we want to make sure everybody gets a good break over the Christmas period. So there’s some really good practical reasons why delaying that commencement clause of the bill by 90 days could be really useful for those large employers so that they can go across the summer break, using existing law, without having to update some of their internal processes. So it’s a genuine question for the Minister, just off the back of that contribution, and it’d be really good to get an answer on that, because I think we are at that particular point in time of the year where HR teams, legal teams, won’t be updating templates.

So if you’re, for example, a manager of a department for a large department store, and you’re wanting to hire people between Christmas and New Year and you want an updated individual employment agreement that you get off a website, usually, in those situations, there’d be somebody in an HR team actually updating that for you. So, from a practical point of view, it would probably be better for those teams to be working off existing law. So I’m just interested if the Minister has considered that.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you very much for the question, I believe it is in good faith. Looking at employment processes over Christmas, I do like to assure the member that, of course, nobody has to take up a 90-day trial; existing law applies. It is simply an option. So if a company or a business or an employee does not feel comfortable, they don’t need to do it, because it’s not mandatory.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Mr Chair. So just picking up the point around the updating of the website—I mean, sure, great. But the reality is a lot of businesses and, actually, workers don’t just go to the Ministry of Business, Innovation and Employment website to check up the most available information. So I guess my question in relationship to the timing of the commencement date was: what further resources does she think will be needed to go into place to ensure that everybody is up to speed with those changes in the law?

We may then be able to discuss that in clause 3, in relation to just amendments to the Employment Relations Act 2000. But my experience—why I think it’s important to pick up on the point that she had just made and to unpack it a bit further, acknowledging we haven’t had a select committee stage to ask officials about this, is what resources beyond just updating the website does she think are needed? Particularly with the timing going into Christmas and that kind of public service shutting down for a little bit, what will be needed to ensure that everybody is compliant, and that workers actually understand that if their employers are talking about changes to laws, they have the resources to navigate those changes? Because of the kind of Christmas timing, I’m concerned that just updating the website does not give people enough awareness of changes that actually have really big, impactful, material differences in their lives.

CHAIRPERSON (Teanau Tuiono): I note that there has been some new material, but this is focused on the commencement date, and we are starting to drift into other clauses. But members, rest assured there is more debate to be had.

RICARDO MENÉNDEZ MARCH (Green): Point of order, Mr Chair. So the previous person in the chair acknowledged that we haven’t had a select committee stage and she had originally talked about how, in the title, we can go beyond that. I just want to check: do you intend to have a specific clause in which we’re able to further unpack this bill and the fact that we haven’t had a select committee stage? Because otherwise, we’re all trying to actually, in good faith, unpack the consequences and implication of this bill and we just haven’t had that chance. So at what point do you expect that we can then have the more substantive debate because we didn’t have the select committee stage?

CHAIRPERSON (Teanau Tuiono): My observation is that members are ranging a bit further away—and that’s fine because, as people have said over the last couple of days, actually, we haven’t had a select committee process as well. So we have tried to build that into our flexibility. I also note that the previous Chair here did say that specifically within clause 1 as well, but when we start to hear repetitions, it’s time to move on.

Hon GINNY ANDERSEN (Labour): Thank you very much, Mr Chair. I have two questions for the Minister who’s in charge of the legislation.

The first; I’d like to have it clarified: in terms of the commencement for clause 2 and when that applies in relation to an employment agreement—we’ve already been discussing specifically over the holiday period. What I’d like the Minister to answer is if somebody who was hired, say, yesterday, under an employment contract and then the legislation comes into force after the day’s commencement as specified, what is the impact of that on the employment relationship? So it’s really important for employees to be able to know if they were hired before this bill came into force, are they still going to be held to a 90-day trial period or if they are not.

The second question I have for the Minister is really in relation to my amendment. Again, I didn’t really get the answer. All the Minister said in relation to that was that small firms are already able to do this. It didn’t really address the fact that there is that ongoing unfairness and it didn’t really explain if employers are able to fire an employee in 90 days, why don’t New Zealanders also get that opportunity to be able to do that? I didn’t feel that the answer actually addressed what the question was, and I’d be really grateful for any further enlightenment that the Minister would like to provide.

GRANT McCALLUM (National—Northland): I move, That debate on this question now close.

A party vote was called for on the question, That debate on this question now close.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

CHAIRPERSON (Teanau Tuiono): The question is that the Hon Ginny Andersen’s tabled amendment to clause 2 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Teanau Tuiono): The question is that Arena Williams’ tabled amendment to clause 2 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

A party vote was called for on the question, That clause 2 stand part.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Clause 2 agreed to.

Clause 3 Principal Act

CHAIRPERSON (Teanau Tuiono): Members, we come now to clause 3, “Principal Act”. The question is that clause 3 stand part.

CAMILLA BELICH (Labour): Thank you, Mr Chair. I am pleased to make a contribution to clause 3 of the Employment Relations (Trial Periods) Amendment Bill, which states that the principal Act—which the Employment Relations (Trial Periods) Amendment Act works under and, in fact, does amend—is the Employment Relations Act 2000; one of my most used and affectionately known pieces of legislation.

The question that I would like the Minister to engage on—and, obviously, I realise that she may have received some advice on this from officials, but I think it is important to note that this bill started off as a member’s bill, and members’ bills are drafted differently to Government bills. So what I would like to know, in relation to the decision to draft this bill in the way that it does amend the Employment Relations Act, is the advice that she has received about the appropriateness of this. Did she look to other alternative methods of drafting this particular bill? Were there suggestions made by officials on how to improve the drafting of this Act? Because, in my experience with members’ bills, often there is a number of changes that officials do suggest.

There are not many consequential amendments that are suggested to this principal Act; so is there any comment she can make around the suitability of adopting a member’s bill that was drawn in the last ballot prior to the election and then adopting that bill—first of all saying that there would be a select committee process on it and then subsequently stating that there wouldn’t be a select committee process on it, and then taking it through urgency? This is such an important piece of legislation that is being amended. It has existed since 2000, and it’s already come up in debates on different bills in the House today, about how the Employment Contracts Act existed and then it was repealed through the Employment Relations Act. Any amendments to this piece of legislation are very important and significant to the fabric of how employment law functions in New Zealand.

There are a number of colleagues who have already made comments on the nature of this bill, which is the subject of this clause, and about how it introduces the concept of good faith into employment relationships. We know the concept of good faith is a principle that imbues all employment relationships, and, very interestingly, it’s very difficult to see how good faith applies to this particular amendment. Usually in good faith, there is an opportunity for an exchange. Usually with good faith, there is an opportunity for explanation. Usually in good faith, there’s an opportunity for representation. Usually with good faith, there is an opportunity for that important relationship that is so fundamental to the Employment Relations Act to be thought through.

I know the Minister may say, “Well, employment trial periods existed prior to this legislation, and this simply extends it.” But I think it’s incumbent on her, as a Minister, to tell this committee—because we don’t have the ability to go through a select committee process—why it is appropriate in 2023, or indeed in 2024 if that is when the bill comes into effect, how good faith and how the case law around good faith has progressed during the intervening period, between when we had trial periods first introduced and had them extensively throughout all employers and now having limited that for the last three or four years. How does good faith apply to trial periods? We know it does apply, because we know that it is an important part of the Employment Relations Act which is amended by this clause.

I have a copy of the Employment Relations Act in front of me, and we can go to section 4 and just see how far the duty of good faith goes. If you look at section 4, “Parties to employment relationship to deal with each other in good faith”. They “must deal with each other in good faith”. And this is a principal part of the Employment Relations Act. If I just skip up to the object part as well, “The object of this Act is … to build productive employment relationships through the promotion of good faith in all aspects of the employment environment and … employment relationship”. I know this trial period was not invented by this Minister—I don’t ask her to take responsibility for that—but what I do ask is, when she says that this trial period extension bill allows trial periods to apply throughout the economy, to every single employer, how does the principal objective part of this Act and the purpose of the Employment Relations Act fit with trial provisions? And is she satisfied that it fits within that piece of legislation?

The practical implication of passing this law is, as I’ve said, to change this Act, and everything in this Act should be, if legislative drafting is correct, consistent with section 4 of the Act and also should be interpreted consistently with the object of this Act, which is set out in section 3 of the Act. It is very different to imagine a good faith employment arrangement as envisaged in section 3 and section 4 in a trial period situation, because, in practice, the duty of good faith is to engage. One of the key things around a trial period is that there is no requirement to engage—a dismissal can be for any reason that isn’t a discriminatory reason. And Mr Chair, if you will allow me, I would like to foreshadow that there are a number of sections in Part 9 that are not amended by the bill in front of us but are relevant to the bill in front of us, and I would like to make a contribution to that particular section at some point. I think it would be beneficial for those following this debate to actually understand the types of personal grievance which continue under a trial period regime and which don’t continue under a trial period regime, because even for someone who used to practise employment law, like myself, it is very difficult to ascertain exactly what could be covered for a particular dismissal or not.

So, when we look at this clause 3 of the bill, I wonder if the Minister is able to go through—and I do realise this is my second call, so I won’t take all of this time. But can I just end this contribution by saying that to the employment law community in New Zealand, who will be the ones who are responsible for interpreting what the Minister does today and providing that advice to their clients, big and small, vulnerable and not vulnerable, rich and poor, throughout New Zealand, they need to know how the intersection of the primary provision of good faith in section 4 and the object of the Employment Relations Act is consistent with the bill that she is putting forward.

I do have other contributions to make in relation to this bill, in relation to the personal grievance section, which is the other substantive section which is relevant to this bill, but I just wondered if I could leave those questions with the Minister to have a response.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you very much for the member’s contribution. Look, I wanted to talk briefly about the principal Act being amended, as the member Camilla Belich raised. That’s because this makes an amendment to the 90-day trial provisions that exist within the Employment Relations Act, which are currently just for small and medium business, and we are changing that to all employers. So it seems pretty straightforward why we need to amend that particular part of that Act.

The overarching question was about whether or not the bill that we have before us is suitable, as it was a member’s bill. My officials have advised me that it does achieve my policy objective and that it is a well-drafted bill. They also advised that we didn’t need any changes to the bill, because we don’t need any transitional provisions, because this is very clear that it is applying only for new employment agreements from the date of Royal assent. I would also like to take the chance to commend by former colleague Dr James McDowall on the very good drafting of this member’s bill, which allowed us to use this at the time.

Talking to the third part of her question—about good faith applying to 90-day trials—I’d like to assure the member that an employer dismissing an employee under a 90-day trial still has a requirement to act in good faith under section 4 of that Act. It still applies. The Employment Relations Authority and the courts have upheld good faith requirements for dismissals under 90-day trials since trial periods began in New Zealand in 2009, such as ensuring that the trial period is agreed to before starting work, to provide an opportunity for the employee to seek advice and to raise any issues. So the bill does not change any of those requirements, which is why it’s not in it.

CHAIRPERSON (Teanau Tuiono): Just for members’ enlightenment, in terms of the narrow focus of this clause, this provision identifies the principal Act; it doesn’t open up the Act for debate, except to the extent that this bill amends it. However, members, the time has come for dinner, and I need a cup of tea! We will suspend until 7 p.m.

Sitting suspended from 5.58 p.m. to 7 p.m.

CHAIRPERSON (Maureen Pugh): Members, the House is in committee on the Employment Relations (Trial Periods) Amendment Bill. Before the dinner break the committee was considering clause 3, “Principal Act.”

CAMILLA BELICH (Labour): Thank you, Madam Chair. I enjoyed the last contribution I was able to make on clause 3 in relation to the amendment of the principal Act, the Employment Relations Act, and I did signal to the Chair at the time that I had another contribution that I wanted to make, specifically around clause 3, which is the amendment to the principal Act.

The main clauses which are amended in the Employment Relations Act are the sections 67A and 67B. So I will speak, and I did note the comment by the presiding officer at the time, and I’m not intending to—just for your assurance, Madam Chair—speak to the entire Employment Relations Act, even though that is included in the clause.

The contributions that I want to make are specific to the particular sections which are affected by this new bill on trial periods. So section 67A—we’ve some amendments to that that will be discussed in the next debate, on clause 4, but the amendments in relation to section 67B do open up a different area, which is another fundamentally important part of the Employment Relations Act, which is the provisions to allow personal grievances to take place or not in section 103. So that’s specifically referred to in the principal Act—the section that 67B amends refers to the personal grievances section.

So one of the main issues with trial periods is the removal of the ability for employees to take personal grievances in respect of their dismissal. So the language used in the bill—and that will be discussed in a subsequent clause—is quite specific around that not being permitted. However, if we actually look at the Act, which we’re now looking at under clause 3, we see that there are a number of personal grievances that can still be pursued by people regardless of the fact that they might be under a 90-day trial period. And that is, I think, one of the issues with this bill, and I wonder if the Minister could comment on this at all—the lack of clarity in what types of action can actually be covered and taken under the Employment Relations Act, despite the bill which the Minister is proposing on trial periods.

The bill says that if you’re in a trial period, you can’t bring a personal grievance for dismissal. However, it does allow a number of personal grievances to continue, and I might go through those for your benefit and just ask if the Minister had considered any other types of personal grievances that she may want to protect by allowing them to continue with this legislation. I think the Minister did refer to this during question time today; it’s clear, then, and it has been an established practice for a number of iterations of this type of legislation, that discrimination claims and other acts relating to racial discrimination, sexual harassment, that type of claim is able to be taken whether you’re in a trial period or not.

In looking at this section in the Employment Relations Act, again it was notable to me how many other exceptions have been added in more recent legislation. So there was the work done around zero-hour contracts, and that was under the previous National Government and that’s actually been included in this section which has been retained by this bill, preventing people who have rights in relation to zero-hour contracts from actually being prevented from taking a personal grievance. So that is obviously interesting. And then there’s the membership or not of a union that can also continue, and then protection of whistleblowers.

So I think the House can be united in being satisfied that these are protections that are so fundamentally important that of course, regardless of whether you’re in a trial period or not, they should not be excluded from being able to take these forms of action. The difficulty that I have and the question I would like to ask the Minister is: what happens and what is her understanding of this legislation in how it would impact a dismissal which is tainted by sexual harassment, family violence, racial harassment. These are all clauses which are relevant to this particular bill and retained by the Employment Relations Act in relation to this particular bill.

So what would occur in that situation, from the Minister’s advice, if there is a dismissal which is tainted by some of these discriminatory reasons? And what would be the course of action under this new piece of legislation that she would recommend someone take in relation to taking a course of action in law? Is her advice that, obviously, the bill she’s proposing says that they can’t take a claim for a personal grievance because of that dismissal? However, is the dismissal able to be part of some other personal grievances which remain under this piece of legislation? And what’s your advice to the public, really, about how they would navigate what is quite a complex situation?

So I want to thank the Minister for making sure that those provisions were retained within this principal Act which we are discussing in clause 3. I think that was the right thing to do. I do think that there is somewhat of a lack of clarity as to what people should be doing in those particular situations, if they are in fact to find themselves in a situation where they have one right which exists but another right which is taken away. Obviously, for lawyers and for unions, they can offer advice to people, but not everyone’s in a situation where they have access to a union or a lawyer, and it might be good to clarify how she sees that intersection of rights occurring.

I thought it was helpful, in relation to my last question, when she confirmed that good faith would apply throughout the process of the trial period. That’s really good to have that reassurance, and that was my understanding of how the Employment Relations Act, which is the principal Act that is being amended by this bill, would work. So bearing that in mind and understanding that we do have this relationship of good faith which imbues all of the clauses, including the bill which the Minister is intending to pass tonight, can she dig into a wee bit more the type of advice that she would give to members of the public on how to navigate what is quite a tricky area. So a few questions here for the Minister and I look forward to her response.

HELEN WHITE (Labour—Mt Albert): Thank you, Madam Chair. I wanted to ask the Minister about the object section of the principal Act. We’ve talked about good faith but we haven’t talked about the acknowledgment that there is an inherent inequality of bargaining power. That is something that is in the next section; part of section 4. I thought it was interesting, because I see a distinction between small employers where the power imbalance is a little bit different.

A small operation is, effectively, two people who have a greater amount of equality. That really is the nature of a small business and I can see the justification for trial periods in that situation being quite different. But when you have a big employer, one that has 50 employees or more, there is a clear acknowledgment in the Act that there is an inherent inequality of power between the two, and that’s fundamental to the Act. So I wondered how there was a reconciliation between those two things and how you could have that object in the Act, yet have this clause applying to large employers where that is so evident. But also the Act is built trying to make sure that that’s acknowledged in its object section.

So I wanted to know whether there’d been any advice on that and whether the Minister has a view on that inherent inequality that is in a relationship and how she protects against it. Because it goes to the vulnerability of the types of workers I’ve talked about who are way more precarious in this time period than they would be otherwise and are going to be really worried about what happens next. It goes to the capacity for them to even raise issues in that time and the kind of fear that they will bring into the workplace, because they’ll be worried that they’re going to lose their jobs if they do anything that their employer objects to, whether it’s good or bad.

I think the Minister is aware that most sexual abuse situations never get near a court, they’re never challenged in that way, and that makes an area like that, bad behaviour in terms of things like sexual assault or other kinds of bad behaviours which we know are bad, a lot less able to be managed in that situation because there will be fear of retribution because there’s a very big difference between those things happening and being able to prove that they’ve happened. In fact, the employer doesn’t have to give any reason in this situation. So I’d like the Minister’s comments on that.

ARENA WILLIAMS (Labour—Manurewa): Thank you, Madam Chair. Look, really quick questions for the Minister—this will be a brief contribution. Just asking about clause 3 in the amendment bill. My question is about whether there is any other legislation, any secondary legislation, any legal instruments, any regulation which is impacted by the passage of this bill. That clause reads “This Act amends the Employment Relations Act 2000”, but it would perhaps better read, “and makes consequential amendments to the immigration instructions”, for example.

So I’d like the Minister to tell me whether there is any other secondary legislation or legal instruments which are impacted by this—and then I can write a really useful amendment.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Madam Chair. Acknowledging, again, the lack of select committee, I hope my judgment is right that this may be the best place to raise it, because I feel that in the previous clause it wasn’t addressed—the steps that the Minister was hoping to take to ensure there was a proper communication campaign to ensure workers and employers are made aware of any changes to the Employment Relations Act. I say this because when a fair pay agreement is passed, the reality is that we were handing out letters to people, a lot of people were still not aware that fair agreements were a thing, so I think there is always that need whenever there is a change to the Employment Relations Act; that it’s not just a matter of updating the website.

So my question is: what steps does she envision that she needs to take or what resources may need to come into place to ensure that the changes to the Employment Relations Act 2000 actually create the conditions for employers to be aware of this extension of 90-day trials, as well as those workers who may be entering those workplaces; that they are also aware of these changes?

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you, Madam Chair. I’d like to take the chance to respond to a few of the questions today. The member Camilla Belich was talking about what would occur if dismissal might happen and there is another personal grievance that’s part of the process. I’d just like to remind the member that it is possible to bring a personal grievance under this new law in relation to any other matter such as sexual harassment. The bill is only excluding that one part of the law, which is specified, for unjustified dismissal. It does not preclude bringing on another personal grievance ground.

I wanted to take the chance to talk to the question from Helen White about inequality of power, and just remind the member that good faith principles apply no matter the size of a company in New Zealand, under the Employment Relations Act.

I’d also like to take the chance to respond to Arena Williams, who asked about changing the clause as it’s written in the bill to allow for things like the immigration instruction, and just remind her that I’ve already spoken about that in relation to clause 2. I have already outlined that this does not change the immigration instructions, so that is null and void.

And also to Ricardo Menéndez March’s question about further resources—I thank the member for that question, because I believe it is in good faith—and what more resources are needed to let employers know about the new laws and that they’re up to date. As part of the implementation of this policy, we will be updating the guidance on the Employment New Zealand website, but I’ve already mentioned that in a previous clause.

DAN BIDOIS (National—Northcote): I move, That debate on this question now close.

A party vote was called for on the question, That debate on this question now close.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Motion agreed to.

A party vote was called for on the question, That clause 3 be agreed to.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Clause 3 agreed to.

Clause 4 Section 67A replaced (When employment agreement may contain provision for trial period for 90 days or less)

CHAIRPERSON (Maureen Pugh): Members, we now come to clause 4, “Section 67A replaced (When employment agreement may contain provision for trial period for 90 days or less)”. The question is that clause 4 stand part.

Hon PHIL TWYFORD (Labour—Te Atatū): Thank you, Madam Chair. I want to speak to my amendment to clause 4, which is that after new section 67(1), it would insert “An employment agreement cannot contain a trial provision if the employee identifies as Māori or Pasifika or as a woman, or if the employee is under the age of 30 or is disabled.”

In the classical liberal view of the world—and I raise that because the ACT Party often style themselves as great advocates of classical liberalism—that particular world view sees humanity as just a collection of atomised individuals, and Margaret Thatcher very famously said, or is often quoted as saying, that there is no such thing as society. Now, she said that she was terribly misquoted, as people often do when their words are quoted back to them, but she was, in fact, expressing a view that was influenced by Friedrich Hayek, who some people in this Parliament, including some ACT members, claim as a great—

Dan Bidois: Relevance.

Hon PHIL TWYFORD: —philosophical influence. Well, I’ll get to the relevance. The relevance will become very clear.

CHAIRPERSON (Maureen Pugh): Soon, I hope—soon.

Hon PHIL TWYFORD: The view does not allow that we have collective interests and that we are part of communities, or that it is the role of Government to regulate our affairs. It also doesn’t allow for the possibility that how we get on in the world is determined, often, by things like social hierarchies, or where we sit in the process of production in the economy, and that’s where this amendment comes in, because there are people in our community and in our country—women, the young, ethnic minorities, the disabled—who actually are at the bottom of the economic hierarchy. They are the people who figure most disproportionately in low income and in poverty, and it’s not just ethnicity and gender; it’s often the history of those people and their place in the country and in the way that power is exercised—not just political power but economic power.

The view that I’m talking about pretends that we’re all individuals and we’re all able to negotiate our interests and contract with each other on a level playing field. For example, a 17-year-old Pasifika woman who turns up, applying for a job with a multinational fast-food operator that has hundreds of millions of dollars of capital behind it—it pretends that she can negotiate on an equal basis with that company, with that prospective employer. That is why we have rules for collective bargaining and protections built into our employment systems, like the restrictions—or what should be a ban, in my view—on 90-day trial periods.

This bill, which extends the 90-day trial periods to all companies and to all employees and all employers in our economy, is a perfect expression of this view, and I want to ask the Minister: does she believe that there is a power differential between the job seeker—the young 17-year-old Pasifika woman turning up to seek to apply for a job at a multinational fast-food company—and the employer? I’d really like to know whether the Minister thinks that they are, in fact, negotiating on an equal playing field. Further to that, I would like to ask, in line with my amendment, whether or not the Minister believes that the young, women workers, the disabled, and Māori and Pasifika experience disadvantage in the workplace, and whether or not they should be protected by labour laws like the law that currently restricts—significantly restricts—the use of 90-day trial periods in workplaces.

This bill is an echo of a view that is also expressed in this coalition Government’s desire to bring back no-cause terminations in rental housing. It’s based on a view that working people, the young, and the least powerful people in our society don’t deserve due process and they don’t deserve the protection of the law, and it is contrary to the idea that we are all individuals living together on some kind of level playing field. It is a brutally hierarchical view of humanity. It says that one group of people, or a whole bunch of people in our society simply don’t deserve the same protections as other people.

Hon GINNY ANDERSEN (Labour): Thank you very much, Madam Chair. I’d like to take the opportunity to speak to the amendment put forward in my name to clause 4. In clause 4, in new section 67A(2)(c), I propose to insert a (d), which would state that an employer seeking to rely on a trial period must keep detailed records of the dismissal process for an employee under the section and that these records must record the correct reason for the dismissal and must be provided to the employee upon request.

I’d like to actually back up why I’m proposing this change, because the regulatory impact statement—and I’m really pleased that the Minister for Workplace Relations and Safety has agreed to have a regulatory impact statement on this bill—highlights some very good reasons why this amendment should be adopted. I’d be interested in the Minister’s feedback, because in the regulatory impact statement it does state that “There is limited research on the prevalence and extent of impacts of trial periods in New Zealand.” So we don’t know what the impact is, fully, on this. We have a lot of anecdotal evidence—many of those incidents have been recalled in this House tonight—but we do not have a good base of evidence in New Zealand around the impacts of this on both employee and employer. And if we have an Employment Relations Act, which this bill is amending, then we need to be understanding how the impact on that employment relationship between an employee and an employer plays out.

By inserting a subsection (d) in section 67A(2) and requiring that we keep detailed records of the dismissal, that will enable us, going forward, to have that evidence base of understanding where, in fact, a 90-day dismissal period is being utilised. Is it, in fact, going to provide greater flexibility in the labour market and be endearing employers to take more people on? It’s a great thing, in general. Or is it, in some instances, being utilised at the detriment of the working rights of New Zealanders who have no comeback when they’re told to leave and not come back the next day? I think we know that we should have that information available to us, and, furthermore, I’d like to quote the regulatory impact statement that the evaluation that was undertaken back in 2016 did not find any specific evidence of an economy-wide effect. We need to know that. This is going to have a huge impact. We know that there’s a large number of people who will now be potentially impacted upon by this legislative change. Do we not owe it to ourselves as lawmakers and good policy makers to be able to enshrine within this legislation a way of understanding the impact of what this would do?

And so my amendment is only right and fair; to say that we should be keeping good records and understanding, if someone is dismissed under this new provision, then we should know why they are dismissed. And, also, there is a fair right for workers to know why they were dismissed. Whether it be their hair colour, their weight, or whatever their employer has used as a reason, they should have that written down and have information made available to us.

The regulatory impact statement also states that there are a number of old surveys that do provide some insights in terms of prevalence, through information on the impact on employees. But the impact on employees—that information is limited. The current regulatory impact statement that accompanies this piece of legislation is clear in the fact that the impact on employees—we just simply do not know that. So if that is the case right now, I think it is really important for the Minister to enlighten us, to understand what would be the impact and why we should not have a provision in this legislation for records to be kept and for the correct reason for dismissal, and for that to be provided to the employee upon request. That is my request to the Minister, and I’ll be really keen and interested to hear her response.

CHAIRPERSON (Maureen Pugh): Before I take the next call, I’ll just remind the member who resumed her seat: you were speaking to your amendment that is relevant to clause 5, but I did allow that contribution to continue. So we just need to keep a close watch on some of those amendments, to make sure that they are relevant to the clause we are speaking to.

Hon JAN TINETTI (Labour): Madam Chair, thank you for giving me that call. I’m actually speaking to two amendments that I have put forward in my name and they are both ones that I’m passionate about and they both pertain to clause 4.

Basically, the first one is in clause 4 after section 67A(2)(c) insert “(d) 67A(2)(c) does not apply if the employee identifies as Māori or identifies as Pasifika, or identifies as a woman, or is disabled.” The second clause is in clause 4 after section 67A(2)(c) insert “(d) 67A(2)(c) does not apply to any employee who has been employed after being on a benefit.” They are two that I am personally very, very passionate about and I’m going to actually ask the Minister a question first because I may not get through this, so I want to just put my question out there to the Minister beforehand and then put the context around it.

My question to the Minister is that for people who are in vulnerable situations, as has been identified, those that are most vulnerable under employment law, how is the power imbalance going to be addressed and what is available for those people in those situations? Now, that might sound very simple to the Minister, but the reason I ask is that it is because of the 90-day trials that I made the very difficult decision to come into Parliament. I had personal experience of this, and I was reminded of that when I was in the House earlier when I heard my colleague Rachel Boyack talking about her family member, and I was really appalled. It was a hard story to listen to, but I was really appalled when I heard from the other side an interjection that said something along the lines of “Oh, it doesn’t matter, they got over it, they got another job.”

Well, I can tell you a story where someone didn’t have the opportunity to get another job. And that is a former pupil of mine who on day 86 of their 90-day trial was let go and had no reason given to him why he was let go. Now, that might have been illegal, but he did not have the wherewithal to know whether that was illegal or not. Now, this was a pupil who I had had a lot to do with over the years. I wouldn’t say that we always got on when he was a pupil; he was one of the more colourful people, but I always had a very big soft spot for him.

When he was let go, it was very tough for him, and he actually went into a deep depression. I had only seen him about three months earlier and things were great. He had his first job, he had things going right for him in his life, and then suddenly this happened. Now, he’d come off a benefit. He had gone into this job. This was the best thing that had happened to him in his life. Then he was let go and given no understanding of why that happened. Two weeks later he took his own life. And talking with his mother—and I still have that recollection in my head every single day that I am in this place because it brought me here—seeing the pain, seeing a young life snuffed out because of a 90-day trial. It is not right. This is bad law and it’s just being made worse under this bill.

So that is the question that I have for the Minister, and it is a real question. What is it that those people who are so vulnerable, who don’t understand the law like we understand in this place; they don’t sit down and read the law, they don’t sit down and read these Acts. They don’t know about people that can advocate for them. They just want to work. They just want to be valued because all through their life very few people have valued them. For that young man, this was the first time in his life that he felt valued, and that law took that away from him. It was because of that that I felt a passion to come into this place—to leave something that I was passionate about. Because we can make law better, but what we’re doing here this evening is making that law worse for those people, and that is such a shame.

So, again, I ask: what is it that those people can access? And how do they know that they can access it? Because it is not easy for them out there, and I implore the Minister to go out and sit beside those people in those situations, because life is just hard.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Madam Chair. I want to honour the contributions from the previous speaker, the Hon Jan Tinetti, and acknowledge the real-life impact that bills like this and policies like this can have on people. I hope that in this clause, Madam Chair, because of the kind of substantive element that it covers in terms of the clarification of those trials and how they work, we can go a bit deeper into the analysis that we didn’t get a chance to at select committee.

My question was hoping to get—I touched on it earlier but it wasn’t addressed whatsoever and I think this is another good part to try and get it addressed again—into the impacts of wage scarring. Why I wanted to get the Minister to address the issue of wage scarring is because of the fact that we haven’t got any analysis or comments, actually, from the Minister around the impact on households when somebody jumps from finally receiving an income to then potentially being out of work, into a benefit. That actually puts people in a situation where, because the benefit is so low, they may feel forced to take a job that would have paid less than the previous job they had. I believe that this bill contributes to wage scarring; it contributes to lowering wages. I want to see if the Minister had any insights on what she considers is the impact on wage scarring and household incomes because of this policy.

Hon Member: Relevance?

RICARDO MENÉNDEZ MARCH: I can hear the members on my left making snarky comments, and to be honest I heard those even through the very sensitive contributions that the Hon Jan Tinetti made earlier regarding issues of suicide, and I’d like those members to get a grip and understand that these are questions that we’re asking because we care about our communities, because we care about our constituents and the workers who are going to be impacted.

So I just reiterate, my question is: has the Minister asked, seen, or got any analysis regarding the impact of this bill in relationship to the issue of wage scarring?

TANGI UTIKERE (Labour—Palmerston North): Kia orana, Madam Chair, thank you. I note from the regulatory impact statement (RIS)—and thank the Minister for providing the cover sheet of that—that where it relates to clause 4, option three in the RIS, looking at paragraph 64, it talks about the fact that “fewer than 20 employees [would] represent around 89 percent of [businesses]”. So this extension, effectively, would extend by 11 percent. In light of the fact that we haven’t had a select committee process to hear from either the 89 percent or the 11 percent of businesses—not to mention the employees who might be affected by this—I have an amendment in my name which seeks an amendment in clause 4.

Clause 4 itself, as members will know, seeks to insert a new section 67A that outlines the process for a provision of a trial period of 90 days set within that. The amendment in my name seeks to insert a new section 67A(3), in that a valid trial provision must state a couple of things. I’m interested in the Minister’s views as to perhaps whether she thinks these should be included, or, if not, why they shouldn’t be included. The first is the genuine business reasons based on reasonable grounds for inserting a trial period in the employment agreement, and that relates to providing some weight around the genuine nature of the concerns that might be expressed by an employer, but more specifically, the reasonable grounds that exist for placing that condition within the terms of the employment agreement—that’s the first one.

The second one is around where a trial period is used to dismiss the employee, to provide the process for advising the employee as to why their employment is ending in that way. And I think, Minister—we’ve already heard from other members in the Chamber that there are many people who are employees who just want to work, and perhaps are not au fait with legislative provisions or what particular aspects in an employment agreement might be. And it’s all good and well for people to say, “Well, they should just know that before they sign it.” But when someone is on the bones of their backside and they need a job; they need work—many will do what it takes in order to secure that. And so that provision really does provide for an opportunity to advise the employee—the person for whom this has the significant impact—on why their employment is ending, but, in particular, what the process is: the process for advising. Not the process that might take place, but the process for informing or advising an employee why their employment might be ending in that particular way.

We’ve heard a wee bit about the power imbalance, and I think what would be helpful to hear from the Minister is considerations around process and how there is going to be an acceptance or a guarantee that those employees who might be subject to a process in this particular manner will be made aware of not just their obligations but what the process means for them. And remembering that the decision by an employer to, effectively, dismiss an employee is a pretty significant one. It is a pretty serious one, and so I think members on this side of the Chamber—and certainly myself—are interested in hearing from the Minister around what provisions either exist in the legislation or why she won’t support the amendment in my name to ensure that there is a process in place for employees who may find themselves in a situation where the end result is one of being dismissed.

Much has been said about the parent Act itself and the provisions of the principle of good faith, and so the amendment that I put forward—and I’ve got a couple more that we’ll deal with, perhaps later—really does lend itself to ensuring that the good-faith principle, which is the overarching consideration here, is actually available, not just to the employee but also to the employer, so that the employer is aware of what the process might be if they choose to engage that functional aspect of dismissal and then to be able to provide the employee with the opportunity to understand why things are taken in a particular way. So I’d appreciate the Minister addressing those.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you, Madam Chair. I will take the opportunity to respond to quite a few contributions so far—a number of which already repeat themselves in substance, so I’ll take them together.

For the amendments from both the Hon Ginny Andersen and from Tangi Utikere, there are questions about providing reasons for dismissal. One was, of course, about inserting a new clause—as was the other. The reason why we are not detailing that businesses “must” provide an answer is because this is a Government that is seeking to reduce regulation and reduce burden and reduce red tape on employers. However, I’d also like to point both members to the fact that there is nothing precluding an employee from asking what the reason is for their dismissal. That is perfectly in line with current legislation and we’re not removing that ability to occur.

I wanted to take the chance to respond to Ricardo Menéndez March talking about wage-scarring impacts of the 90-day trials. This is a Government that is hoping to extend the availability to increase job opportunities, and we believe that this is what this law will do. It will expand the number of job opportunities that will provide more opportunity for people to be able to progress their career and increase their incomes by increasing marketplace flexibility.

I wanted to take the time to respond to the Hon Phil Twyford and the Hon Jan Tinetti, who both had similar amendments and both were about certain groups being excluded from the 90-day trial provision. This bill is intended to help people have more job opportunities and people that may be considered disadvantaged by the members. We believe, on this side of the Chamber, that people will be better off because they’ll have more opportunities; because they will have more business confidence and more ability for people to have a go in the labour market.

People can still bring a personal grievance claim related to discrimination; we’re certainly not removing that—that is very important to note. But we believe that this law will allow more labour market flexibility and more job growth for people who those members may consider to be disadvantaged. But I also just wanted to take the opportunity to thank the member for her contribution. It was very emotional and I certainly hope that the family members and friends of that individual do find peace.

RICARDO MENÉNDEZ MARCH (Green): Point of order. I just want to seek some clarification because of the previous comments you have made around a few of the amendments, including those that are in clause 5 as another clause. I just want to seek your guidance on whether you expect us to have a debate on potentially adding that additional clause and whether you’d want us to have that debate right at the end, or at what point do you think some of those amendments may be appropriate?

CHAIRPERSON (Maureen Pugh): Can you elaborate on which amendments you’re talking to?

RICARDO MENÉNDEZ MARCH: So, I mean, because I know that some of the themes we’re covering are already there in the additional clauses—for example, several amendments that I’ve put in, so, for example, my amendment 6 which adds a new clause 6. I just want to seek clarification as to whether you’re going to ask for a debate around clause 6, or at what point do you want us to have those debates?

CHAIRPERSON (Maureen Pugh): The short answer is yes, there will be an opportunity to debate a clause 6 amendment.

RICARDO MENÉNDEZ MARCH: The new clause 6?

CHAIRPERSON (Maureen Pugh): But not in clause 4, no.

RICARDO MENÉNDEZ MARCH: Thank you.

ARENA WILLIAMS (Labour—Manurewa): Thank you. And may I have 5 minutes? Thank you.

The reason why there are so many tabled amendments that are being proposed by my colleagues to clause 4 is that we find ourselves in a situation where the Act that is being amended—the Employment Relations Act 2000—retains those grounds of prohibited discrimination which someone may bring a personal grievance for, but this amendment Act that the Minister is proposing proposes to limit that in certain circumstances. So, Madam Chair, if you’ll allow me to just explain the situation that we find ourselves in: because those grounds within the Employment Relations Act, the original Act, are preserved, you then have a situation where if someone is fired within—dismissed within—their 90 days, they have a question of whether they can bring the personal grievance on the grounds of prohibited discrimination, say, for example, because they are a woman. But then whether they should mention that they were also dismissed within the 90 days is at issue, because on the face of it they have been dismissed for reasons that were legal, but then they have this further sort of issue for an employment court to work through.

So that’s why there are so many tabled amendments—21, in fact—in my name, and I hope to speak to them all and I will be economical with my time. The first I’ll speak to, No. 1, is to amend clause 4 after section 67A(1) to insert a new (2), “Employers can only use a trial provision to dismiss an employee if they can prove that the employment of the employee has caused a material, financial, or reputational harm to the employer or the employer’s organisation.”

This is a clause where I’m trying to find a way through for the Chamber. This is not something that fits well with Labour Party values, but this is a way that we can acknowledge that though there are a divergence of views around the Chamber about what is appropriate here, to allow, say, market flexibility to allow employers the kind of flexibility that they need to operate in, this is something which says if there is a problem here, if you’re a reasonable employer, you’re just doing your best, whether you’re a small employer or a large one, you’ve taken a chance on somebody, you’ve given a young guy a go and he’s not the fit, you need to say, “Well, the employment here is causing me financial hardship, it’s causing me a financial problem.” And, you know, you don’t need to go and tell a regulator that. That is not extra regulation, you just have to keep proper records of it. It’s an email between you and your chief financial officer, it’s an email between the line manager and their boss. It’s simply recording somewhere that it is reasonable because of the financial reasons of the business that it is appropriate to let this person go.

And just dealing with this point, this finds us a middle ground, because the Motu research that I referred to in one of my earlier contributions found in their inquiry into whether 90-day trial periods were a good thing for the economy as a whole—they concluded that “the main benefit of this policy was a decrease in dismissal cost for firms, while many employees faced increased uncertainty about their job security for three months after being hired.” That independent research found that the balance was perhaps not right.

So my question to the Minister is: is there a way that this sort of amendment, that finds that middle ground where employers, who all maintain a practice of keeping reasonable records about their employment decisions anyway—should they be held to a standard where, look, if it’s impacting on your business, we say, “All right, go for it, dismiss that employee because you’ve given them a go and good on you.”? So that is the first amendment that I hope the Minister will consider.

The second amendment that I wish to speak to is to replace section 67A with a new title. I’m not splitting hairs here, but we’ve worded it in a really weird way in the amendment bill that the Minister has proposed. She’s saying, “90 days or less”. I would like it to say, “90 or fewer days”. That’s the way I would say it and we should make that amendment now just so that our law reads correctly and is in plain language. I know the Minister is an advocate of plain language, straightforward language, less regulation, clearer language, and so I would hope that she would consider that amendment.

The second tabled amendment that I wish to speak to is to clause 4 to replace section 67A(1) with a clarification about using the trial provisions only if the employee has not previously been employed by the employer. The current way that reads I don’t think is clear enough and, you know, in the spirit of making sure that this law is plain language, that it reads well for employers like me and many of the members around the Chamber who have been employers in a situation where we’ve had to make quick decisions—we need the primary legislation to make sense.

CAMILLA BELICH (Labour): Thank you, Madam Chair. I have not had an opportunity yet to speak to this part of the bill, clause 4, but I do have a couple of amendments that I wanted to make. The first two are, I think, really sensible, pragmatic amendments which are very much in the spirit of this bill.

The first that I wanted to mention was, essentially, adding in to section 67A, which is in clause 4—the area that we’re currently debating in the bill—to make sure that when people are able to be covered by a trial period, when people are either engaged as an employee, or if they, in fact, in the past, have been engaged as a contractor, they wouldn’t be able to be covered by a new trial period.

There’s a clear policy direction within this piece of legislation and other pieces of legislation which have dealt with trial periods, which is very fundamental to the design of them, which, essentially, means that if you are already engaged as employee, you can’t then have a valid trial period put into your contract of employment. That’s clearly in this bill as well. So it’s people who are currently employed with an employer who wouldn’t have a trial period. That’s because—I mean, why would they? The justification for trial periods, even though I may not be one of the people that accept them, is clearly to allow an employer and employee to get to know one another. So that could also occur in other types of relationship akin to employment, so worker relationships.

I know that this is an area that the Minister for Workplace Relations and Safety is interested in, having read the coalition agreements and the ACT Party policies prior to the election. I know she’s interested in looking at contractor law. I’m not interested in discussing that particular aspect today, but, I think, to have a piece of legislation be enduring and also meet the policy objectives that she is trying to meet, why should contractors who have already had the opportunity to engage with an employer, although not in an employment situation, be subject to trial periods? I don’t think the justification applies. They already know that contractor because they’ve engaged with them. They know if they’re reliable. They know if they’re trustworthy. They know if they do a good job. They know if they’re a good fit. They’ve engaged with them. Yes, it could be in a slightly different way to an employee, but that’s also true of existing employees who may be looking to move up within the organisation, which, possibly, could be more likely to be the case when you have trial periods, because you wouldn’t be able to be subject to a trial period if you got a new job with your existing employer.

So that is my amendment that I have tabled, which I think is within the spirit of the bill that’s being put forward and would improve it. I encourage the Minister to consider it, and I would like to hear her response as to whether she will be supporting that particular amendment.

The second amendment that I wanted to particularly mention was really about the situation that sometimes vulnerable employees find themselves in, which is when they, essentially, have a different employer, but, essentially, they don’t really have a different employer. You know, the legal entity may change, they might have a different name on their employment contract, they might have a new contract, but, basically, the same people are doing the same work for pretty much the same people, and usually in the same locations. So I’ve actually added that into my amendment.

Arena Williams: It’s a good amendment.

CAMILLA BELICH: Thank you. Trial periods wouldn’t be applicable to an employer using a different name, or legal entity, but conducting the same or substantially the same work in the same location.

So there is quite a substantive part of the Employment Relations Act which deals with vulnerable workers and that type of situation. I think it should be really clear, within this bill, that we’re not seeking to put trial periods in for those particular people. I think that is in line with the policy intent, because I think all of those other reasons are justifications for this policy: getting to know one another, finding a good fit. All of the things the Minister has proposed in her speeches in the different readings of this bill would not apply in that situation where there was a change.

So I think those are two very good amendments. I do have a third one which I would like to speak to, but I would like to give the Minister the opportunity to respond.

CARL BATES (National—Whanganui): I move, That debate on this question now close.

HELEN WHITE (Labour—Mt Albert): Thank you, Madam Chair. I want to take this opportunity to address some of the amendments that I’ve made on the Table that are actually related to each other.

The first one is about the possibility that there will be a carve-out; that the trial provision will be unlawful for any employee who has left another job to take work with an employer given the injustice of the employee’s loss of work and the loss and, actually, the cost to the taxpayer if they are unemployed as a result of termination. So I want the Minister to tell me if she would consider this, because I understand, from her speeches, that what she’s saying is motivating her is giving people a chance who may not find other employment and encouraging people who would otherwise be unemployed into the workforce. Yet, these people are employed and they are taking a huge risk going into a situation where they may not actually keep that job and they may suddenly find themselves in a situation where they have to go on the unemployment benefit and we all have to pay for that.

The other amendment that I’ve put that I think relates to this is the one that I foreshadowed in my speeches tonight, which is the issue of restraints of trade. Because what I have seen in a lot of agreements is the increasing use of restraints of trade with low-wage workers. If it’s combined with a trial period, you are putting people in a situation where they may well go into an employment situation and be dismissed but actually be prevented from going out and getting another job. So I have suggested an amendment which is about making it unlawful for anybody to be held to a restraint of trade if they are dismissed in a trial period and that if, in fact, that happens, that they will be free to compete.

Now, I have made sure that in my amendment I have addressed the issue of confidential information; that if you’re given trade secrets or confidential information, this is something that, of course, you should keep and there should be right to suit if you don’t. But if it is a matter of competing with your employer, then it’s very important.

I would just like to talk a little bit to the mischief here, because this is not fantasy: this is happening all over the place. Big employers like Amazon have adopted restraints of trade for workers on as low as US$13.50 an hour. They put them in absolutely habitually and most employees don’t actually look at these contracts when they’re signing them because they’ve got no bargaining power, which goes to my friend the Hon Phil Twyford’s point about the inequality of bargaining power. They simply—yes?

CHAIRPERSON (Maureen Pugh): Sorry to interrupt the member, but you are speaking to clause 5. Your amendment relates to clause 5.

HELEN WHITE: I think I’m speaking to clause 4 because what I’m speaking to is an amendment which says that clause 4, after section 67A(1), insert, and then I’m bracketing subclause (2) and then I’m saying, “a trial provision will exclude”—. So I am speaking to clause 4; I’m adding to clause 4—an extra—and I’m carving out. So thank you, ma’am. Is it all right to continue?

CHAIRPERSON (Maureen Pugh): Absolutely, continue.

HELEN WHITE: Thank you, ma’am. So I am talking about a very real situation, and it’s a trend that has been noted by big economists—and they’re not left-wing economists. They’re people like Joseph Stiglitz, who’ve noted that this is happening. There has been a lot of research in America, which actually goes to another point, ma’am, if I can just have a little bit more time because I’ve got another amendment on the Table which suggests that what people should do is, if they’re going to put a trial period in the agreement, they should lodge it with the Ministry of Business, Innovation and Employment.

So the reason for doing that is it turns out we have very little information about 80 percent of employment agreements. So because we have these employment agreements in individual form, nobody knows what’s in them. You’re very unlikely, Minister, to know whether these impacts that you’re talking about are real or whether there is exploitation. So, for example, this kind of issue that I’m bringing up about restraints of trade and the—[Time expired]

Hon WILLIE JACKSON (Labour): Kia ora. Thank you, Madam Chair. Thank you very much. Tuatahi, Madam Chair, e mihi ana ki a koe mō tō kaha ki te whakaputa i tō whakaaro e pā ana ki tō hoa. Ngā mihi aroha ki a koe.

[Firstly, Madam Chair, I would like to acknowledge you for your strength to express your thoughts about your friend. Heartfelt acknowledgments.]

Just speaking to clause 4, supporting the Hon Phil Twyford’s view—his amendment—in terms of Māori, Pasifika, women, and those who are under the age of 30 or disabled, I was the employment Minister for three years. I was wanting to ask the Minister: as she looked at this, did she have a look back at some of the work we did with these groupings? We had employment action plans for all of those groups. We had a Māori action plan. We had a Pasifika action plan, a women’s one, a disabled one, and I think it would be incredibly helpful for the Minister to have a look at those reports, which told us about the different disparities, about the problems particularly that Māori workers have faced over the years.

When I became employment Minister back in 2017, the Māori unemployment rate, for instance, was close to three times what the mainstream, or Pākehā, unemployment rate was at the time. It’s really important for our Minister here to get her head around, I suppose, some of the barriers and some of the problems that so many of those Māori workers were facing and have faced. Under my chair, we got to facilitate the Māori strategy with a woman by the name of Janice Panoho, who was a very senior union organiser within the Public Service Association, and a very dear friend of mine, too, might I add, having organised with her many years ago. I think that this—

Hon Member: Is this relevant?

Hon WILLIE JACKSON: Well, I’m talking about this amendment that has been put up by Phil Twyford, which identifies Māori, Pasifika, and women as groups who need the support and who will be disproportionately affected by this bill.

As we know, lower job security particularly impacts these groups, and the question I have for our Minister is: is she going to go through those reports that were put up—the employment action plans that were put up by each group—that traversed all the different areas? When you look at the disabled report, you will see what some of these workers had to face. They couldn’t even get through the door sometimes—they couldn’t even get through the door. Never had a chance. It was terrible, and I think it’s emotive reading for a lot of us. We don’t actually understand, and then when you see the barriers in terms of these trial periods, it can be heartbreaking for so many of them. And, of course, the percentages are weighted so much against Māori, against Pasifika, against women, against the disabled community, that we had to put in targeted programmes.

I ask the Minister: will those types of programmes still be receiving support from this Government—programmes that looked after young people, looked after women, looked after Māori? Mana in Mahi was one of the big successes. That can be a success for everyone, which is something I worked on with one of the current coalition partners—He Poutama Rangatahi, getting nephs off the couch. These supported the Māori rural areas very, very much. So I ask again: will the Minister be looking at these plans, talking to some of the chairs, a number of them women who have done extensive work in our communities? I think that it could be good for all parties if she was able to do that.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you, Madam Chair. I’d like to take the chance to respond to a number of members and their queries, starting with the Hon Willie Jackson. I won’t go over my previous response to the Hon Phil Twyford’s amendment. I’ve already done that, so we are repeating ourselves, but I also note that contributions about his past works as a former Minister are not actually relevant to the bill.

I also note, speaking to the questions from Helen White about restraints of trade, I really commend the member for wanting to talk about her own member’s bill which is at select committee—love the opportunity—but that’s also not part of the bill and it won’t be after this goes through.

I’d like to take the chance to respond to Camilla Belich, who had a number of amendments. The first was to extend the 90-day trials to contractors, and I’d just like to alert the member to the fact that contractors are not employees and don’t have employment agreements, and so that’s not really relevant to this bill.

We had Arena Williams talking about wanting employees to only be able to use a trial provision to dismiss an employee if they can prove that the employment of that employee has caused immaterial, financial, or reputational harm. The whole purpose of this bill is to reduce red tape, reduce regulation, reduce bureaucracy, and make our labour market more flexible for employers so more employees are given an opportunity. This is a significant procedural requirement and so we do not support it.

I also wanted to take the opportunity to briefly touch on the fact that she’s talking about the word “fewer” or “lesser” when it comes to 90 days fewer or 90 days or less. Look, you might want to bring up a talking point with the legal drafters of the laws around this place but I’m not in the position of wanting to do that. I think the purpose of the draft is pretty clear.

Talking to Camilla Belich also about her amendment to suggest that after an employer in the clause 67A(1) would also have an employer using a different name or legal entity but conducting the same or substantially the same work in the same location, I understand this is purporting to try and limit a trial period if an employer has multiple businesses but this is not actually changing the definition of an employer. The bill extends the availability of trial periods to all employers and doesn’t change any of the other settings. So it’s pretty clear.

Hon BARBARA EDMONDS (Labour—Mana): Thank you, Madam Chair. I’m really chuffed that you chose me to take a call on this bill, the Employment Relations (Trial Periods) Amendment Bill. I have a couple of amendments to clause 4, and I just want to clarify that they are to clause 4, and they are on the Table. I’m quite a pragmatic person, so for me it’s about providing an alternative solution for the Minister, and I want to understand the Minister’s views in relation to my amendments.

My first amendment would replace all references to a “maximum trial period of 90 days” with references to a “maximum trial period of 45 days.” So that is a shortening of the 90-day trial—it would be a 45-day trial. So if you go to the regulatory impact statement and you work through the problem definition: employers not able to use the 90-day trial period—so maybe a 45-day trial period—because they weren’t hiring new employees due to the risk that new employees may not be a good match and could result in an unproductive employment relationship. OK—tick.

So let’s have a look at the options. So if you go to the regulatory impact statement, and I’m going to use the same criteria that officials used in their regulatory impact statement, the options that were provided by officials, and I’m not talking to their options; I’m talking to my 45-day trial and the options have been assessed against the following criteria. Does the policy encourage employers to take on more employees, particularly disadvantaged job seekers? I believe a 45-day period does provide that, because it still allows employers to take on more employees but also the ability for it to be reduced to 45 days means that there’s still a bit of balance on both sides, not just for the employer but also the employee.

A shorter period means it’s a shorter cloud, a shorter grey area, for employees around the unjustified dismissal element. The second criteria that officials used to address the policy problem is: does the policy reduce the process costs and risks of a personal grievance for employers? Well, yes, because I’m not saying it’s 90 days. I’m saying it’s still 45 days; it just half the time. It is ultimately a little bit more balanced on the employee’s side, but it is still 45 days.

The next question is: does the policy increase security for employees when beginning a new employment relationship? In some ways it could seem contradictory that I’d be saying that, actually, for employees it’s 45 days so therefore there is almost less security. But, actually, it’s just greater certainty for them. It’s 45 days. I know people who have got married after knowing each other for 45 days.

Hon Members: What!

Hon BARBARA EDMONDS: Not me. I’m saying that 45 days is still a period of time whereby the employee and the employer get to know each other, the employer gets to understand if the person is the type of person that matches the job expectations in the description. So I believe that in some respects that third criteria that officials have used to basically analyse their different options does weigh towards the employee a little bit more than the employer.

The next criteria that officials use is: does the policy provide certainty for employers and employees regarding their employment rights and obligations? Yes, it does. It just makes it really clear it’s 45 days. So it’s similar to everything else that’s been covered in the regulatory impact statement for the 90-day period but it’s shorter at 45.

And is the option simple to implement? I believe it is. We currently have a framework, and the Minister is obviously looking to implement parts of that framework. I think that having a shorter period of 45 days is a way to balance it up a bit more. Currently, as the Minister just responded to a number of questions, she said it’s about reducing compliance costs and—a number of things, actually; I only heard the first one about compliance costs.

I believe that this is a bit more balanced in that it’s 45 days. For the employee it means there is a shorter period of harm for them because they understand really clearly. The employer knows whether it’s working or not for them in that first month and a half. I’d really like to know the Minister’s views on whether a 45-day period could actually work.

I also want to speak to my second amendment, which is on the Table. It’s not 45 days; it’s even shorter. My second amendment to clause 4 replaces the reference to the word “days” in section 67A with “hours”. So it’s a similar argument except that instead of 90 days, how about 90 hours?

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you, Madam Chair. I thought I’d take the opportunity to respond to all three of the member’s amendments and say that we will not be supporting any of them. The time period is at 90 days; it makes it pretty straightforward. It will be 90 days for small and medium, 90 days for larger, so therefore 90 days for all employees. But also, reducing that amount of time by the extent that she is desiring—within a few days—doesn’t actually give the opportunity for an employer and an employee to form a relationship, and to see whether or not they are a good fit for each other.

MILES ANDERSON (National—Waitaki): I move, That debate on this question now close.

CAMILLA BELICH (Labour): Thank you, Madam Chair. Thank you for giving me the opportunity to speak again on this clause. What I wanted to clarify is, respectfully, I think the Minister for Workplace Relations and Safety has misunderstood the amendments that I’ve tabled in clause 4. The Minister stated that contractors are not covered by 90-day trials, which of course I know. There is no need for a contractor to be covered by a 90-day trial, because they have no employment rights because all of their rights are bound up in the interpretation of their contract.

The point of my amendment was to state that if someone is to follow the policy of the clause—which was, essentially, if someone had been previously employed by someone else, by a company, then they’re not able to be covered by a trial period. So my proposition, with the amendment, was to state that if they had been engaged in another capacity as a contractor, then, by that same employer, even though that was a contractual relationship—as a contractor and not an employment relationship—surely the same logic applies: that they shouldn’t be covered by a 90-day trial. And that is what I explained in my first contribution. The purpose, as the Minister had stated it, of the 90-day trial period, was, essentially, to get to know, find a good fit—I think she’s used that term—get to know one another, make sure that they work with the team, that they can undertake the jobs well. And a lot of that, if not all of that, would be just as easily obtained as knowledge by the employer in a contractual relationship. I did state in my first contribution that of course that wouldn’t necessarily be exactly the same, but it would be sufficiently similar, I believe, that it could be considered to strengthen this particular piece of legislation.

The second matter—which I don’t think, perhaps it was in the way that I explained it, was not fully grasped by the Minister—was the amendment that I had raised in relation to people who may work for a company and then that company either dissolves or is insolvent, and a new company jumps up in its place that is, essentially, run by the same people, starts trading, and then is, essentially, considered to be a new employer under the legislation. I don’t think it’s the intent of this legislation to cover people in those situations. Part 6A of the Employment Relations Act covers a number of these employees in these types of situations, where there’s often, you find—in cleaning companies, for example, you might have people continuing to do the same work but their employer might change. There’s provisions within the Principal Act that this bill amends to deal with them. I was talking about that type of situation, where, genuinely, the person isn’t really, if you look at it, actually in new employment. They’re, basically, continuing their same job, although the name of their employer on their employment agreement might be different.

So those were the amendments, and I just felt that the Minister hadn’t grasped the intention of those. They are made in good faith and I do think they would strengthen this piece of legislation, and they’re in line with the principles of the legislation. So those were the clarifications that I wanted to make in relation to that.

I did have another amendment in relation to clause 4, to change section 67A(2)(c) to replace “not entitled” with “not required”. Now, you may say that that’s not within the spirit of this Act, which seeks to not allow personal grievances, but I would say a legal interpretation of that change would be to allow personal grievances, yes, but on a slightly lesser basis than they are currently permitted to people who are not covered by trial periods. So that amendment to clause 4, I think, would perhaps achieve the policy objective that the Minister intends to achieve with this piece of legislation, by kind of not really encouraging a personal grievance in that particular situation, but not going so far as to say that they were totally prohibited by it. And so that’s why I think that additional amendment that I proposed to clause 4 is also helpful to perhaps meet the policy objectives, but with not such a harsh piece of legislation to actually remove the rights of personal grievances within trial periods.

I think it’s really important—and I wonder if the Minister could reflect on this a wee bit. I don’t feel that she fully addressed the point that I made around the ability to bring personal grievances and have that consistent with good faith, and to bring a personal grievance where there’s discrimination, but to be dismissed. I don’t feel that that has been answered by the Minister yet.

Hon KAREN CHHOUR (Minister for Children): Thank you, Madam Chair. I move, That debate on this question now close.

RACHEL BOYACK (Labour—Nelson): Point of order, Madam Chair. I just want to note that there are still a number of amendments tabled on the Table with content—including mine and I’ve been seeking the call—that haven’t been addressed yet on amendments, and I think that we are calling this debate to a close too early. There are amendments still to be discussed.

CHAIRPERSON (Maureen Pugh): I thank the member; that’s not a point of order. I have made sure that everyone with amendments on the Table has had a chance to speak in this debate. The question is that the debate on this question now close.

A party vote was called for on the question, That debate on this question now close.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

CHAIRPERSON (Maureen Pugh): Arena Williams’ tabled amendments to clause 4, the heading to section 67A and 67A(1), are out of order as not being serious amendments.

The question is that Arena Williams’ tabled amendment to clause 4, amending section 67A(2)(c) to delete the words “or other legal proceedings”, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): Arena Williams’ remaining tabled amendments to clause 4, section 67A(2) are out of order as being contrary to the objects and principles of the bill.

The Hon Phil Twyford’s tabled amendment to clause 4, setting out that an employment agreement cannot contain a trial period if it is to apply to certain types of employee, is out of order as being contrary to the objects and principles of the bill.

The Hon Barbara Edmonds’ tabled amendment to clause 4, replacing the word “days” in section 67A with “hours”, is out of order as being contrary to the objects and principles of the bill.

The Hon Barbara Edmonds’ tabled amendment to clause 4, replacing all references to a maximum trial period from 90 days to seven days, is out of order as being contrary to the objects and principles of the bill.

The question is that the Hon Barbara Edmonds’ tabled amendment to clause 4, replacing all references to a maximum trial period from 90 days to 45 days, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Camilla Belich’s tabled amendment to clause 4, inserting words into section 67A(1) after the words “by that employer”, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Camilla Belich’s tabled amendment to clause 4, inserting into new section 67A(1) the words “or engaged as a contractor”, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Camilla Belich’s tabled amendment to clause 4, replacing in section 67A(2)(c) the words “not entitled” with “not required”, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Helen White’s tabled amendment to clause 4, requiring trial provisions in employment agreements to be lodged with the Ministry of Business, Innovation and Employment in a prescribed format, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Helen White’s tabled amendment to clause 4, requiring employers seeking to implement trial provisions to provide employees with a form approved by the Ministry of Business, Innovation and Employment, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Tangi Utikere’s tabled amendment to clause 4, setting out criteria for valid trial provisions, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Rachel Boyack’s tabled amendment to clause 4, limiting trial periods to employment agreements with a salary in the top income quintile, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that Rachel Boyack’s tabled amendment to clause 4, limiting trial provisions to employees who earn more than the New Zealand median wage, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that the Hon Jan Tinetti’s tabled amendment to clause 4, enabling a dismissed beneficiary turned employee to bring a personal grievance, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Maureen Pugh): The question is that the Hon Jan Tinetti’s tabled amendment to clause 4, enabling dismissed Māori, Pasifika, women, and disabled people to bring a personal grievance, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

A party vote was called for on the question, That clause 4 be agreed to.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Clause 4 agreed to.

Clause 5 Section 67B amended (Effect of trial provision under section 67A)

CHAIRPERSON (Maureen Pugh): Members, we now come to clause 5. Clause 5, “Section 67B amended (Effect of trial provision under section 67A)”. The question is that clause 5 stand part.

Hon KIERAN McANULTY (Labour): Point of order, Madam Chairperson. Thank you, Madam Chair. I waited until after the vote because I thought that was the appropriate course of action. However, last evening, earlier in urgency, I raised a point of order when a closure was accepted, pointing out that there were a number of spokespeople and a number of outstanding questions. At the end of that point of order, you replied that that was a fair point, and now, we find ourselves—when a point of order was raised by Rachel Boyack, your response was that all those with amendments had spoken to those amendments. Now, if the response was that there was repetition or that there were issues around relevancy, we absolutely accept that, as that is your call as Chair. But the reason that everyone had spoken to their amendments is a new one to me, and so I was hoping you could point us to the relevant Standing Order or Speaker’s ruling around those with amendments, please.

CHAIRPERSON (Maureen Pugh): I thank the member for his point of order there. If he could see my run sheet, he will see that I have noted the relevance and the repetition. I was helping the member by explaining that I had made sure that everyone had spoken to their amendments, but there was starting to be repetition. So I feel valid in the call that I made. Thank you.

Hon Kieran McAnulty: Point of order.

CHAIRPERSON (Maureen Pugh): Is it a new point of order?

Hon Kieran McAnulty: It is. It’s a question.

CHAIRPERSON (Maureen Pugh): Point of order, the Hon Kieran McAnulty.

Hon KIERAN McANULTY (Labour): I want to know if this is a new Speaker’s ruling, and whether we can expect that whether those that have spoken to their amendments is going to be a reason for closure moving forward.

CHAIRPERSON (Maureen Pugh): That’s not a point of order, the Hon Kieran McAnulty. We’re going to move on to clause—

Hon Kieran McAnulty: Point of order. Point of order.

CHAIRPERSON (Maureen Pugh): Is this a new point of order?

Hon KIERAN McANULTY (Labour): It is. I think you’ll find, Madam Chair, that asking if a ruling from a presiding officer is a new Speaker’s ruling is entirely appropriate and has been done numerous times.

CHAIRPERSON (Maureen Pugh): Just to close off this debate, it is the Chair’s discretion to take a closure motion. I have done that. We are moving on to clause 5. The question is that clause 5 stand part.

RICARDO MENÉNDEZ MARCH (Green): New point of order.

CHAIRPERSON (Maureen Pugh): It is a new point of order?

RICARDO MENÉNDEZ MARCH: It is a new point of order. Thank you, Madam Chair. I have been asking this because I feel like it’s still unclear to me on which clause we can genuinely, meaningfully impact all the things in valid questions that we would have had in the select committee stage. We know that there’s no select committee stage, but there’s a lot of things that we normally—and answers would have happened, Minister, that may sit outside of those clauses that are valid otherwise. So I was just checking: would that be in the following clause, because the opportunities to unpack those things are running out, and I’m really concerned about—

CHAIRPERSON (Maureen Pugh): That’s not a point of order.

RACHEL BOYACK (Labour—Nelson): Madam Chair, I do have a further point of order to raise because I do want it to be noted that despite the claim that all speakers with amendments were able to speak to their amendments on clause 4, I was not able to speak to the two amendments that I put forward on clause 4. I did speak earlier, not on amendments, but on other matters on previous clauses. But I was not granted a call on clause 4 where I did have two amendments, so I do want to put that on record.

CHAIRPERSON (Maureen Pugh): The question is that clause 5 stand part.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Madam Chair. Topical. I’d like to speak to my amendments that relate to clause 5. One of the things that we know is going to be an issue going forward, and it’s been an issue, is the lack of reasons; the fact that employers don’t have to give a reason when they dismiss workers under the trial. One of my amendments which, after clause 5—sorry, we actually repeal section 67B(5)(b). It would require employers to give a reason when people are dismissed as part of that 90-day trial.

I think why this is quite important is because the Minister has previously spoken to the fact that she wants the 90-day trials to give that greater flexibility and to address issues when what she describes as kind of not a good match between employers and those workers, right? But for that workers’ professional development and for that worker to find sustainable long-term employment, it’s then really hard to identify what is it, then, that that worker needs to change to find suitable employment and a better matching with future employers. So my amendment would then be able to at least add that safety net and that ability for that worker to have that professional development embedded in, because if that employer thinks that there is not a good match between themselves and the worker, that worker should at least be given that reason for why they were basically terminated under the 90-days trial. Without it, sure, there may be that greater flexibility for that employer, but the issue that she has described throughout the debate, of wanting to address in terms of the poor matching, isn’t therefore being addressed in any way in this bill. So I think my amendment could actually support the Minister, making employers give those reasons.

The other amendment I had in relation to this clause was to do with giving back the ability for workers to take some of these issues to the Employment Relations Authority, and this would basically be a check against the use of trial provisions by unscrupulous employers to dismiss employees unreasonably. It still remains that it is for the Employment Relations Authority to assess whether this application would be granted, and so there’s still a level of discretion. But I hope the Minister can at least realise that there will be some employers who will be unscrupulous in their use. Even if we were to take the Minister’s words in good faith around what she intends to do with this bill, which I personally disagree with, then we ought to believe that there will still be some employers who will be unscrupulous. I mean, members from the Government side have spoken about unscrupulous employer initiatives like migrant exploitation, and therefore there surely will be some that will be part of the 90-day trials. So I would love to know whether she thinks there should be that opportunity to grant the Employment Relations Authority to assess whether some employers have been unscrupulous in their use of the 90-day trials provisions.

The other question I wanted to have was in relation to one of my other amendments which also would have added some extra safeguards and also would have addressed the points that I’ve been raising throughout the debate around this not just being about a good match between the workers and the employers but also about having better management. One of the things that my amendment aims to create is alternatives to just dismissing those workers, and for employers to be required to explore alternatives other than just dismissing those workers. I think that would, in my view—again, if one was to take the Minister’s words in good faith—actually help address those issues around good matching between employers and workers. So I’d be keen to get an understanding, just to surmise, whether she thinks there should be other options that employers should consider as part of this before dismissing people and whether employers should be required to give a reason to workers, and, if not, why not? Because of that power imbalance that exists, I think it would be fair to have those reasons being given out.

I also wanted to address and ask—which I would have been able to do in the select committee stage—whether a trial impact assessment was done, because this bill has the potential of having—

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you, Mr Chair. I just wanted to quickly respond to the member Ricardo Menéndez March, and I suspect this may come up quite a lot in the debate, so I wanted to start off in the way I intend to continue. I have already addressed the issue of whether or not employers should be forced to give reasons for dismissal in clause 4.

Hon GINNY ANDERSEN (Labour): Thank you, Mr Chair. Speaking to clause 5, which amends 67B—and I appreciate there was a little bit of uncertainty in relation to the overlap between clauses 4 and 5. So just to be clear, in subclause (1) of clause 5 it says “In section 67B(1), replace ‘a small-to-medium-sized employer’ with ‘an employer’.”, and also, “In section 67B(5)(a) and (b), replace ‘small-to-medium-sized employer’ with ‘employer’.” So, effectively, what this provision does is make that transition to just those small businesses—which we know do take up a large proportion of the businesses in New Zealand—with all employers.

So I would just like to ask a question in relation to some of the material traversed in the regulatory impact statement. I would like to note also that given the short period of time that officials had to prepare this regulatory impact statement, and given the fact that there’s quite a few bills going through this House lately without any regulatory impact statement, they’ve done a pretty good job in highlighting what are potentially some of the deficiencies in passing legislation so abruptly without a full submission period at select committee. It’s really important to note that in the regulatory impact statement, which I think directly relates to clause 5 of the bill, it says, “We consider that smaller employers are more likely to benefit from trial periods because they are less able to absorb the costs of a poor match or dismissal. In comparison, … employers can be more equipped to manage any dismissal processes and absorb the costs.”—so, obviously, by having an HR person or having a department on board. The regulatory impact statement notes that “We therefore consider that there are diminishing benefits from increasing the availability of trial periods to larger employers”.

So given the fact that the Minister’s own regulatory impact statement clearly states that there are diminishing benefits in increasing the applicability of the 90-day trial from small to medium enterprises to all businesses, I would be really interested to understand the rationale for this piece of legislation.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you, Mr Chair, and I will respond directly to the member so that we can get this one out of the way. The Ministry of Business, Innovation and Employment did have a preferred option in the regulatory impact statement to maintain the status quo, but I also want to note that the analysis said it was also a finely balanced weigh up between the status quo and the Government’s preferred option to extend the 90-day trial periods to all employers.

One of the reasons that they gave, which the member has spoken to, is that larger employers are better placed to absorb the costs of dismissal. But this Government does not think this is a good way of approaching regulation. If there is a way for businesses to, you know, afford the cost of unnecessary regulation, that doesn’t mean that they should afford the cost of unnecessary regulation.

Hon Dr Duncan Webb: Mr Chair.

CHAIRPERSON (Greg O’Connor): The honourable, sorry, the honourable—I know him well. It’s just the name’s not really—Duncan Webb.

Hon Dr DUNCAN WEBB (Labour—Christchurch Central): Thanks. Thank you, Mr Chair—

CHAIRPERSON (Greg O’Connor): Don’t be insulted, Mr Webb. I’ve forgotten names that are much better known.

Hon Dr DUNCAN WEBB: No, no. Look, it’s a bit of levity in a very serious matter, because this bill—I mean, I guess I have two, possibly three questions to speak to, and the amendment in my name. It strikes me that there’s a continuum of egregiousness when an employer chooses to dismiss someone in the 90-day period. At one end, you know, there’s the obvious: they can’t do the job—nothing wrong with that at all—and then, further down the continuum, “We really rub each other up the wrong way. It’s not going to be a great relationship.”, and I can see something in that. But if we go right down the other end, “I don’t like Muslims” is absolutely egregious and clearly a breach, and a prohibited ground of discrimination under the Human Rights Act. Or “he’s a bloody union member”—again, clearly a breach of the New Zealand Bill of Rights Act and the right of freedom of association.

Now, whilst I can understand, if not agree, with the views at one end of the spectrum, the idea that there are no repercussions whatsoever under this proposed clause 6 amendment seems truly extraordinary to me. It may well be that the Human Rights Review Tribunal would have something to say about it, but, really, that is using a sledgehammer to crack a nut, which brings me to my proposed amendment, which is to insert into the proposed amendment section an additional subclause (6) that any disagreement between an employer and an employee about the use of a trial provision in an employment agreement must be referred to a mediation services resolution.

CHAIRPERSON (Greg O’Connor): Dr Webb, are you talking about clause 6 or clause 5?

Hon Dr DUNCAN WEBB: New clause 6, sorry, sir—inserting a new clause 6. So this is the, I understand, new clause 6. This is the appropriate point, I’m pretty sure, at which to—no, that’s right. There is no clause 6. But there will be.

CHAIRPERSON (Greg O’Connor): Some of the amendments we’re discussing on this particular part are pertaining to new clause 6 as well, but they also pertain to clause 5. So I just need to be just a little bit specific, because we will be debating a clause 6 shortly.

Camilla Belich: Point of order.

CHAIRPERSON (Greg O’Connor): If you can help with the explanation here, I’m quite happy to hear that, Miss Belich.

Camilla Belich: Yes, I believe so, Mr Chair. Prior to your arrival in the Chair, a discussion was held about this particular issue in relation to how we would deal with new clause 6 issues, or perhaps amendments, which purported to be new clause 6 but actually, in the view of the staff at the House Office, related more to clause 5. We’re informed that almost all of the Labour amendments were relevant to clause 5, bar one in the name of Ginny Andersen, and a number of the Green amendments were relevant to clause 6. So my understanding, from our discussions earlier, was that the amendment in the name of the Hon Duncan Webb is very much within clause 5, which we are currently debating. All of the other Labour amendments would be in clause 5, apart from one in the name of the Hon Ginny Andersen. Additionally, there are some very good amendments from Ricardo Menéndez March that would come under new clause 6, which, I understand, will be voted on separately.

CHAIRPERSON (Greg O’Connor): Yeah, actually, that’s been very useful, and the Clerk tells me that is actually—I’m now caught up, so thank you very much for that, and thank you to the committee for their patience. I’m aware that with the change in Speaker there’s always going to sometimes be an issue, but I believe I’m caught up. So if we can start Dr Duncan Webb’s time again.

Hon Dr DUNCAN WEBB: I’m sure I won’t need another five minutes to really conclude my point, and I thank my most excellent whip for that clarification as well. But the real point is this: that it’s clear that there can be a use of a 90-day clause which is a breach of rights and would lead to remedies in other fora such as the Human Rights Review Tribunal. But the point is really that that is really disproportionate, costly, time-consuming, and would be extremely unwieldy, so a much better approach is for those kinds of issues to be worked out in, I guess, the mediation service, where the parties can, essentially, sort out their differences and in many cases go their separate ways.

So I guess I have two questions for the Minister for Workplace Relations and Safety. The first question is does she accept that there are some uses of 90-day trial periods such as those where there’s a breach of human rights? My examples I gave, you’ll recall, were firing someone because they’re a Muslim or a union member. The second questions is if that is the case, does she agree that those kind of extraordinary tribunals are the appropriate place to resolve those issues, or would it be more appropriate to be undertaken in the very much more affordable and approachable mediation service?

Hon PHIL TWYFORD (Labour—Te Atatū): Thank you, Mr Chairman. God, it’s depressing that the parties of the right in this House think that taking away the work rights of New Zealanders is some kind of trophy to be celebrated in the first couple of weeks of this new Parliament. Utterly depressing that they are so bereft of any kind of economic development vision for this country that they think making precarious workers more precarious is some kind of development strategy for the economy of this country—God awful. My amendment, which I—

Hon Member: Stick to the bill.

Hon PHIL TWYFORD: Well, I very much was sticking to the bill. The amendment is a new clause 6 that we’re discussing in clause 5, that would insert this following clause: “Repeal section 67B(5)(a)”. Now, let me take a moment to explain that. Section 67B of the Employment Relations Act exempts small and medium enterprises from the requirement in section 4(1A)(c) of the Employment Relations Act, which requires employers who are about to make a decision that, in the words of the legislation, “may have an adverse effect on the employee’s continuation of employment”—i.e., they’re about to get the sack—and in that case, it requires the employer to provide access to information about that decision. That’s the first thing. The employee is about to get the boot; they’ve got the right to request information about that decision.

Secondly, they have under the Employment Relations Act, which has been settled in law for quite a long time in this country, the opportunity to give comment to the employer before a decision is made—all right? They have the ability to ask for information about their impending sacking, and then they have the right to provide comment to the employer before a decision is made. Now that is pretty much the definition of due process.

Katie Nimon: Are you mansplaining?

Hon PHIL TWYFORD: Yeah. Well, apparently, some people in this House need it—apparently they do. It’s due process, but this bill takes away that fundamental right for—God knows how many; hundreds of thousands of New Zealanders at work—and I ask the members on the other side of the Chamber, who think this is hilarious, how would you feel in that situation? You think it’s hilarious that this is happening. How do the members on that side feel about that? How would you feel if your daughter or son at work gets the boot within 90 days, and they have no right to request information about the decision; they have no right to provide any comment to the employer. Put yourself in their shoes—put yourself in their shoes. Do you think it’s OK to deny due process to hundreds of thousands of Kiwis at work? Basically, under this bill, they can be sacked on a whim and the employer does not have to provide any information about it—they do not have to give any information.

This Government is taking us backwards. It is taking us backwards, and I ask the Minister: would you consider removing that exemption and supporting this amendment?

Of course, we oppose the bill in its entirety. It’s a nasty, tawdry bit of legislation. We have no desire to support it, and, in fact, if you asked members on this side of the House, we’d get rid of 90-day trial periods altogether—altogether. Ask New Zealand First: they’ll give you the answer. They’ll give you the answer, and, believe me, you’ll find out how that feels very shortly. This bill—[Interruption]

CHAIRPERSON (Greg O’Connor): Short, sharp, preferably witty, and not disruptive.

Hon PHIL TWYFORD: Why would you—meaning members on the other side of the Chamber—why would you give employers—

CHAIRPERSON (Greg O’Connor): Mr Twyford, just to the judicious use of the word “you”, can you just actually use another word?

Hon PHIL TWYFORD: It was in the same breath as—

CHAIRPERSON (Greg O’Connor): Don’t bring the Chair into it. So just—

Hon PHIL TWYFORD: Yep.

CHAIRPERSON (Greg O’Connor): You’ve been in the House long enough to know that rule.

Hon PHIL TWYFORD: Why would members on the other side of the House choose to give employers—and, of course, the bad ones—a free pass to actually sack people on a whim and not have to provide any information to the worker who is affected? Why would that be done? What’s the reason for it? They wouldn’t actually subject themselves to that denial of due process, and if they thought about it for a nanosecond, they would realise that people in their lives who might come up against an unscrupulous employer—they wouldn’t want them to be subject to this kind of Draconian process. It is a step backwards for employment law in this country and it’s a step backwards for New Zealand.

RACHEL BOYACK (Labour—Nelson): Thank you, Mr Chair. I very much appreciate the opportunity to take a call, and I want to speak to the first of two amendments that I have on the Table that are relating to new clause 6, although noting that my amendments are considered more of an addition to the existing clause 5. So I am looking forward to being able to take a couple of contributions, the first one just to speak about the amendment that I have, which is “After section 67B(2) insert ‘(3) employees who are dismissed under a trial provision are entitled to a termination payment of three months of ordinary pay by their employer, to be paid out over the three months following termination’.”

Now, a clause such as this would achieve a number of objectives. First, I wish to note that, as other colleagues have mentioned, for many people who are employed under these provisions, they are often precarious workers. We’ve heard examples tonight about my own family member and about the devastating example used by my colleague Jan Tinetti, around young people being employed under a 90-day trial and then losing their job within that 90-day period. Those of us in the committee will be aware that a person in that situation would likely then have to turn to Work and Income and could be subjected to a 12-week stand-down period. It could be very difficult for that person to access funds during that time.

This is very much around fairness and ensuring that vulnerable workers aren’t then left without any access to income, after having been dismissed under a 90-day trial. I say to members opposite that, actually, all members of this House have a clause of this nature in our agreements as members of this Parliament. Any of us who are turfed out after an election are able to access a three-month payment, so I say to members opposite: if it’s good enough for us, surely it’s good enough for some of New Zealand’s lowest-paid workers? We don’t have redundancy provisions in this country. We have a stand-down period for accessing Work and Income support. So, for vulnerable workers who perhaps have given up being on a benefit to go and try a new job—which is something we would all encourage—to end up potentially without having income for a period of time, as a result of what this side of the House believe is bad law, is around fairness but also ensuring that there is that financial support for people.

Also, a clause such as this would also have a precautionary effect, I believe, on employers, to just take that extra piece of care—to consider whether a 90-day trial is the best course of action in the first place; furthermore, whether a dismissal under a 90-day trial is a fair course of action. As we all know—well, some of us in this House know—there are existing trial provisions in the law. From my experience, those existing trial provisions do work. They allow a proper process to be followed. So a clause of this nature would, basically, say, “Look, if that employer was going to take a less rigorous approach to the dismissal of someone who may not be working out, well, then there would actually be a financial consequence to them.” So, in my view, a clause such as this would really encourage employers to think a bit more carefully about whether they would use a 90-day fire-at-will, no-process clause within an employment agreement, versus a trial period that does require there to be a process, that does require an opportunity for the employee to improve, and that does require feedback and further training to be given so that that person on a trial period would be able to engage in a more rigorous and fair process as the employer is considering their suitability.

So a clause such as this—such as my new clause 6, which would insert after section 67B(2) a provision for three months of ordinary pay to be paid out—in my view, would achieve two outcomes. One would be to ensure that that vulnerable employee, if they were dismissed, wouldn’t end up being financially disadvantaged, especially if they were having to wait to receive support from Work and Income, and it would also, I believe, give employers just some time to consider what would be the better option for them, to ensure they’re running a fair process within their business. I look forward to a further contribution on my other amendment. Thank you, Mr Chair.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Mr Chair. I appreciate the Minister’s previous comment that she feels satisfied with having spoken to the idea of, basically, that there’s no need to give reasons. But she didn’t really address my other two amendments, so I just wanted to remind her that there are these other two amendments: one on the Employment Relations Authority, and the other one around making sure that employers who are too hasty with dismissal under trial periods have considered all options before ending someone’s employment.

The other thing before I was interrupted in my call that I wanted to check was around the child impact assessment, and whether that had been done. As I have mentioned in previous clauses, I kind of started with saying that I would have had the opportunity to have had this raised at the select committee stage, and also with that, there is the impact that adding it to larger businesses or otherwise may have on child poverty reduction targets, and I ask whether she had considered whether this has an impact on child poverty altogether. I think that the clause that we’re in best reflects that because of the language around where they’re expended to. And the reason why I’m asking about the relationship to child poverty reduction targets and child impact assessment is, as has been canvassed, because of the benefit levels but also the period in which then someone may not have an income if they transition to that benefit.

There are those kinds of just real household, material issues that I think should be addressed in this debate, and, no doubt, if we’d had a select committee stage, those communities and people who advocate for them would have had the opportunity to raise the impact that they believe this bill would have had. So I’m looking forward to the Minister addressing my other two amendments and speaking to what she considers to be the impact on working families with children.

ARENA WILLIAMS (Labour—Manurewa): Thank you, Mr Chair, for the opportunity to contribute to this debate. I wish to speak to my amendment to clause 5, which would be to insert after the amendment to section 67B(1) a new subclause (2), which says that “Employees who have a legitimate trial provision in their employment agreement are exempt from legal proceedings against them from their employer for wage recovery.”

I think this is a useful amendment for the committee to consider. There’s an issue here. Essentially, if employers were to use their new powers under the amended Act, as the Minister is proposing to dismiss workers within the 90-day period, then there would also be this further power for employers which creates a pretty terrible situation for workers—especially vulnerable workers—where they then might enter into proceedings to recover overpaid wages. That is something that employees may face when they’re faced with dismissals. It is a way for employers to recover costs in situations where there has been some sort of mistake or an overpayment. But it’s also just a really bad situation for a young employee to find themselves in, where if you’re paying your bills based on what you’re getting in your income, you’re probably not checking exactly on your payslips and you’re probably living on exactly what your payslip is, and then to be faced with proceedings from your former employer who is trying to recover some of those wages, it just seems to be an extra level of unfair in this situation.

So let me take the committee through those wage recovery provisions. They’re found in the Wages Protection Act of 1983. Usually, it would require an employer to seek the written consent of the employee whom they are trying to recover wages from, but in certain circumstances the employer can either begin proceedings under the Employment Relations Act or obtain a court order to look for a remedy and to recover wages.

Sometimes in situations where there is a power imbalance between employers and employees, those proceedings are also entered into by employers to make a point. The point being made there is that the employer has the power to pursue the employee—

Carl Bates: And the point you’re making?

ARENA WILLIAMS: Was that a point of order?

Carl Bates: And the point you’re making?

ARENA WILLIAMS: Did I hear a point of order, Mr Chair?

CHAIRPERSON (Greg O’Connor): I didn’t hear a point of order. Carry on.

ARENA WILLIAMS: OK, thank you. The purpose of these wage recovery provisions that we need to put into this bill would not allow employers any avenue for pursuing employees who are dismissed under the 90-day provisions that the Minister is seeking to put in, because that adds, essentially, this extra level of unfairness whereby an employer, who has these extra powers—because it’s not the right fit, as the Minister has told us, because of the need for more flexibility within the employment market—could then sort of add the costs back on to the employee who has been let go. This is a useful amendment for the committee to consider, and I hope that we can consider putting it in.

There are also two other amendments in my name that I hope the Minister will consider. They are about allowing the House to be clear about the number of employees to whom this new provision would apply. Thanks, Mr Chair.

Hon GINNY ANDERSEN (Labour): Thanks very much, Mr Chair. Now, I have two drafted amendments for a new clause 6. I’ve got advice to understand that the first of mine will be debated under clause 5, and the second one subsequent to voting on that clause. So the new clause 6 proposes that section 103 be amended, which refers to section 103 of the Employment Relations Act. So in section 103, following section 103(1)(k), my proposed amendment is that a new section would be inserted after paragraph (k), which would be paragraph (l), “that employee has been dismissed unfairly under a trial period”.

Now, that section of the Employment Relations Act, which this bill, the Employment Relations (Trial Periods) Amendment Bill, amends, basically lays out the grounds for a personal grievance for all of those different reasons why an employee may take a personal grievance against their employer. What the extension of the 90-day trial period to all businesses—what this amended bill essentially does is remove all grounds for a personal grievance.

CHAIRPERSON (Greg O’Connor): Sorry, Ms Andersen, can I just interrupt. I think this particular additional clause of yours is actually part of clause 6, because that will actually trigger a new clause 6.

Hon GINNY ANDERSEN: So we did seek advice. The whip sought advice from the previous Clerk and we showed both amendments and we wrote that that was actually the advice we received, that this should be debated under clause 5. I’m happy to take it at a different point, but the advice we did receive—

CHAIRPERSON (Greg O’Connor): Well, look, we’ll continue on now and then we will actually—you’ve got another couple of minutes to go, but it will actually also be relevant to clause 6, because it will actually trigger a new clause 6.

Hon GINNY ANDERSEN: OK, thank you. So the point I would like to have an answer from the Minister on is: would she be open to inserting an additional clause under section 103 of the Employment Relations Act that would add in that an employee has been dismissed unfairly under the trial period? Essentially, that enables those rights to continue if there are grounds that the employee may feel that there’s been either discrimination, unfair conditions—there might be a whole range of reasons why they’d believe that they have been unjustifiably dismissed—by adding in the additional provision into the legislation that would enable a greater strengthening of workers’ rights, and it would stop the erosion of workers’ rights, which this bill so dramatically does for New Zealanders.

CAMILLA BELICH (Labour): Thank you, Mr Chair. There are a couple of things I wanted to mention in my first contribution to this clause 5. This is really the operative clause, in a way, of the entire bill, as the main change that means that the effect of this bill can be carried is the change in section 67B(1) to replace a “small and medium sized employer” with “employer” in general, and also the change in section 67B(5)(a) and (b) in the Employment Relations Act. Without those changes, there would not be a bill to really discuss in this debate. So thank you, Mr Chair, for having a view to take some comments on that section, which go to the purpose and nature of this piece of legislation.

I did also want to touch on, after I make my comments in relation to those sections, an amendment, brought by my colleague Jan Tinetti, that not only looks to what occurs once a trial period is inactive within an employment agreement but adds in an additional clause—it says clause 6 but, as we’ve discussed, it would be under clause 5—to allow an employee to be entitled to benefit payments if, in fact, they qualify for that after a trial period is enacted.

My first comments really are in terms of the—as I’ve said, this is really quite an important operative section, this clause 5 of the bill. I just feel I would like the Minister for Workplace Relations and Safety to respond to exactly what evidence she believes and, apart from the conversations that she’s had with people, is there any evidence to suggest that this is something that will make a difference to New Zealand as a whole? You see, that’s her responsibility as workplace relations Minister. All of the evidence seems to suggest that it doesn’t make a difference to include larger businesses within trial provisions. It seems to suggest that there isn’t any impact at all on those larger businesses, apart from the obviously terrible and devastating impact that it can have on individuals when they are covered by a trial period and they have no recourse to challenge a dismissal. I know that that’s a big question, but I really feel this is an operative part of the Act, and I don’t really feel that, from the Minister, we’ve got a significant or substantive response on that.

I have heard that there was an election and they have a mandate for this. My comment has been that an electoral mandate does not justify bad lawmaking. The issues that we have with this section really are: why, and what’s the evidence? I know that in the coalition agreement it states that this is to be a Government that bases their decisions on evidence. What evidence is there? Further to that point, why has she decided to implement this when it appears not to make a bit of difference in terms of the studies that have looked on the wider impacts? I mean, I do appreciate, and I don’t at all discount, the fact that it may be that the Minister has had individual conversations with individual business owners and they’ve suggested this. But, of course, we need to look at the overall impact of how a policy like this will affect New Zealand, and whether it does indeed lead to people being hired more regularly. The evidence seems to suggest that, no, it doesn’t.

I did want to touch on the amendment before my time in relation to this particular call is over. It is a big problem for people if they are unable to access payments for benefit if they’ve been dismissed in a timely manner. Of course, in this situation, it could be without any fault of their own. It could be for any reason at all. I mentioned a few of those: hair colour, weight—whatever. They just take a dislike to you. They don’t like something to do with your name. It could be for any reason. So what protections are there in place for people, now that we’re expanding trial provisions to the majority of the population? An additional 78 percent of all employees will be covered by this. So what protections are there for those people who are at the sharp end of this amendment? Are they, in fact, entitled to benefit payments? I’d appreciate the Minister’s clarification on that. Are they entitled straight away? Is this something that will be available to them? Is there any other additional support available to people subjected to this provision?

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you, Mr Chair. I thought I would get a few of these queries and concerns under way within my allocated time. Speaking firstly to Rachel Boyack’s two amendments, the first of which was about allowing employees to be entitled to termination payments of three months—well, this amendment would add a huge, significant cost to businesses and does not align with the intent of the bill, which is to reduce cost and risk and restore employer confidence. The second one was about allowing for any dismissal under a trial provision in an employment agreement to have the written agreement of both the employer and the employee. I just note that dismissal processes aren’t undertaken with consent of both parties. If we took that to its natural conclusion, it just means no one would ever be able to leave an employment agreement—that’s quite a deviation from employment law.

Speaking to the Hon Duncan Webb’s amendment where he wanted to talk about the mediation services that would be available for resolution, the Ministry of Business, Innovation and Employment (MBIE) already has a dispute resolution service available to employers and employees, and we’re not proposing to change the Act’s existing provisions for mediation, which is voluntary between both parties under the current law.

Speaking to the Hon Phil Twyford’s amendment, the substance of that amendment I have discussed at length in clause 4, which I’d already discussed about Ricardo Menéndez March’s. Ricardo Menéndez March had another amendment which was about people bringing personal grievance proceedings if they have the leave of the Employment Relations Authority. The issue that we take with this one is the whole point of this trial period is to increase employer confidence to hire a new employee, and that’s why—removing risk. This adds more risk into a law, and we don’t believe that it will actually help streamline the labour market but make it worse off. So we oppose that provision.

Arena Williams had an amendment which talked a little bit about “exempt from legal proceedings against them from employer for wage recovery”—so trying to make it about wage recovery. But I just have to note that that’s not part of the Employment Relations Act; that’s part of the Wage Protection Act, so that’s outside the scope of this bill.

Ricardo Menéndez March also had quite a few more Amendment Papers, which we’ll get through, requiring MBIE to monitor and report on the use of trial provisions, and then also another one requiring a report from the Minister three years following the commencement of this operation. I don’t support either of these amendments. As I said, I think, back in the title clause, I will be looking to further work in the labour market space but I don’t believe these sorts of provisions need to be in this law.

Then also speaking to Camilla Belich’s last suggestion there about welfare benefit payments, I just note that this is the Employment Relations Act. We’re not really talking about benefit payments, which is not under my purview in my portfolio—

Hon Carmel Sepuloni: Just asking if it had an impact on that in terms of the rules around benefits and when people lose jobs. It’s a relevant question.

Hon BROOKE VAN VELDEN: And then we also wanted to talk a little bit about this issue here—

Hon Carmel Sepuloni: It’s something she should go and find out, as Minister.

Hon BROOKE VAN VELDEN: —thank you very much for your contribution—about whether or not a business can afford the cost of unnecessary regulation. It doesn’t mean that they should afford to do it.

TANGI UTIKERE (Labour—Palmerston North): Thank you, Madam Chair. Again, can I thank the Minister for providing the regulatory impact statement. It seems to be something of a rarity before the House under this Government these days. I note from that that when we’re looking at paragraph 32 in it, it does provide the overarching sort of focus, or objective, really, of this regulatory system when it comes to employment relations. It says in there that it is “to enable productive, mutually beneficial employment relationships” and that, “As such, the system assumes an ongoing relationship between the employer and the employee.”

Again, that sort of lends itself that the process around this in this clause is obviously pretty important. I note that my colleague Camilla Belich referred to the global context, and the regulatory impact statement also does touch on some of the international context in the sense of arrangements. My question to the Minister, firstly, is around her comfort in that this proposal sits or aligns adequately with other international jurisdictions and contexts when the regulatory impact statement itself points to, for example, the fact that in the United Kingdom there’s generally an agreement between the employer and the employee. When we look at Germany, there is a discretion about a probationary period. In the Netherlands the probationary period must be agreed in writing.

That brings me to two amendments in my name. The first one is, I guess, a pre-emptive one. It seeks to amend section 67B, which falls under clause 5, and seeks to insert a new provision, which is: “Any employer seeking to utilise a trial period must first”—so there is the timeliness—“meet with the employee and consult on the decision to implement the trial period.” This includes seeking the employee’s feedback on other options that do not include utilising the trial period.

I’m interested in the Minister’s thoughts around whether that is something that she would accept, because it might be that in an employment situation those other options could be things like starting out with some other level of support. It could be around putting in place some guidance for the new employee, and while many think that that is automatically something that would kick in as part of a new employment relationship, it may be that if there is agreement between the two parties, actually, there is no need to utilise the trial period. It also, I think, goes back to what has been covered in this Chamber tonight around the tenet of good faith and that being a key provision. So I’d be interested in the Minister’s thoughts around that.

The other amendment is an additional amendment to section 67B, and that is inserting an additional provision which is “employees have the right, at no cost”—which is important because it is about it being accessible—“to seek a determination from the employment authority that a trial period used to end their employment is valid and has been used correctly and appropriately.” My question for the Minister is: what comfort in this clause, as currently drafted, is there to ensure that there is an adequate process that allows for the employee to understand what is happening? We’ve talked about the fact that there are many individuals who are in employment situations who would not be familiar with legalities, familiar with contractual law, familiar with contractual obligations, and so this amendment is really focused on ensuring that if an employer does seek to action that part of the agreement, there is an accessible avenue available to any employee to effectively seek the determination from the appropriate authority or agency, which in this case would be the employment authority that exists, to ensure there is a sense of validity to it but also that it has been used correctly and appropriately.

These two amendments are about process, both pre-emptively, before engaging a trial period, and also in circumstances where a trial period may actually be utilised so that there is an accessible avenue available to the employee, as part of the employment relationship, to seek some validation that the process, whatever may have been followed, that has been taken by the employer has been done so correctly and appropriately.

HELEN WHITE (Labour—Mt Albert): Thank you, Mr Chair. I want to propose a clause that I put in in handwriting and it will be on the Table. It’s a clause that I think goes to the debate we’ve heard tonight, in particular the comments of the Minister, so I am listening. What I understand the Minister is suggesting is that this is good for New Zealand because it’s good for employees who need to be given a chance, and those employees are the ones who are the most precarious, the ones who are seen as risky by employers.

Now, my concern is about the chilling effect that this kind of trial period has on a whole lot of employees who don’t really fit into that category at all. They tend to be workers who are already in employment, and what this does is it puts them into a position where they can’t move across into another employer without significant risk.

Now, the statistics—and, yes, it is based on the research that I have seen from America with regards to a concept called portability of employment—are that it is an issue particularly for women, and women actually seem to significantly be more conservative and less risk-averse when it comes to moving from one job to the other, sometimes because they’re not the primary income earner and their job needs to fit in with their family, etc. So they are less risk-averse and they don’t move easily, and if, in fact, there’s an impediment to the moving, which is the risk that they may suddenly lose that job, then they’re not likely to leave.

I am concerned that they aren’t taking the advances that they can get in a new job because of things like trial periods, so I wanted to know whether you’d looked at that issue of the chilling effect, and whether you’d consider my amendment, which targets your proposed change to the law, but it actually does it so that it cuts out and carves out this provision in so far as it affects people who are already in gainful employment, and I’ve spelt out the reasons for that. One is the fact that it’s contrary to the stated object that you’ve got—that it would actually really work best, in your view, on those employees who needed a chance to get into the workforce. Another is that there is a huge financial loss in that situation to an employee, which is an injustice itself, and so there is that. The third, of course—in fact, I’ve spoken about this in speaking to an earlier clause—is I’m very concerned about the cost this visits on taxpayers, because when people lose their jobs, they don’t fall in to a void. The taxpayer has to pay them a benefit. So it’s not even good for the taxpayer to do this.

So, really, I am concerned, and I’d like to hear why is this OK. Why is it OK that the taxpayer ends up picking up the tab every time a big business—we’re not talking little businesses—decides that it wants to jettison an employee in 90 days without any reason given? Why is that OK? Why are we just picking up the tab for what employers do in that situation, given that, I understand, the new Government is committed to people being responsible for their own situation? I would have expected a Government that was made up of the ACT Party to be one that was supposed to be sitting on “Employers pay their own way here”, not “The taxpayer ends up paying for all those employees.” So I’d really like to know the answer to that question, because there’s very good research, and I’d like to know what the Minister’s done about finding out about that research into the chilling effect.

Now, my second amendment on the Table is one that’s about the pattern of behaviour. I am concerned about employers overusing this clause. So, again, you’ve talked about, Minister, these employees being just the precarious—the ones that you wouldn’t give a go otherwise. Well, one of the problems is the habitual use of the clause: the four people in one month all being terminated, each one being substituted with the next one who’s willing to hope and then be dismissed.

So my suggestion in my second amendment is that you make a provision here that only one employee out of every 50 in a 12-month period is able to be terminated under this clause. I’d like to know why not, because what has the Minister done in terms of looking at the pattern of abuse?

Hon BARBARA EDMONDS (Labour—Mana): Thank you, Mr Chair, and I want to thank the advice that I received from the Clerk, who clarified that, actually, the amendment that I have tabled—I should actually discuss it in this part of the debate.

Following on a couple of weeks ago in my reply to the Speech from the Throne, one of the queries I had was around the vision that this new Government has for our country, and my concern has been, over the last couple of weeks, that there has been a lot of urgency, there’s been the inability to be able to actually scrutinise particular bills, except through here in the House. I thank Mr Chair for allowing us to be able to speak to the different amendments because, as you can see, there are a lot of amendments that a number of members on this side of the House do want to be able to speak to.

One of the issues that I did have in relation to this bill, other than the fact that it’s reinstating those trials, is the imbalance of that policy decision. The imbalance of it is that it weighs heavily on the employer’s side, so one of the solutions which I have tabled is to be able to provide a safety net for the employees who have been subject to this trial, because, ultimately, again, if you look to the regulatory impact statement, it provides—further to what Tangi Utikere spoke of earlier today—the purpose of the employment relations regime, the framework in which this particular bill sits within.

Therefore, my new amendment, which I have tabled, is that following the new clause 6, section 67B be amended: “(Effect of trial provision under section 67A). After section 67B(5), insert subsection (6): ‘Any employer that wishes to use trial periods into their employment agreements must register with the Ministry of Business, Innovation and Employment’.”

Some people may say that, well, that’s just providing an additional compliance cost. However, one of the very new features that had actually come through—and I think it was around 2015-16—was the New Zealand Business Number (NZBN). Now, that was a policy that the previous National Government had put through. Obviously, businesses are applying to get New Zealand Business Numbers through the Ministry of Business, Innovation and Employment (MBIE). Again, this would be the type of advice that you’d want to seek from officials around: could this work—sort of leveraging off the NZBN—so that you’d ask employers who want to use those 90-day trial periods that, as part of that process, they just basically tag on to their New Zealand Business Number that they’re using the trial periods.

Then I look to the second part of my amendment around subsection (7), which is “Businesses registered with MBIE under this clause must pay 1.39 percent of the salary of the FTE employed at their business into a fund overseen by MBIE and ACC.” Again, that is a new regime; there would need to be some real thought around the implementation. Obviously, like when you have tax, the incidence of tax and where that falls, the incidence of this particular levy might fall on the employee; however, it is for the employee’s benefit. Again, similar to the ACC system, where a collection of a levy is used for the greater benefit of ACC provision, this now leads to subsection (8), which is what I’ve tabled, and this will create a fund that will be used to pay workers dismissed under trial periods 80 percent of their wages for up to seven months.

This may sound controversial; however, I believe that the reinstatement of the trials is imbalanced; it totally balances and weighs in favour of the employer. Therefore, this particular tabled amendment is about providing additional balance for the employee in the respect that, because they are unable to put forward a personal grievance because they’ve been dismissed, they aren’t able to actually ask as to why. They could ask why, however. There’s been a number of amendments where members have tabled, asking them to be able to provide a reason. This provides an additional safety net. Again, the Minister will probably have to work through the incidences as to who this falls on, but, again, if businesses have to comply in other aspects of the regime, particularly when they’re touching base with MBIE in relation to the NZBN, my suggestion is that this particular tabled amendment is just another way to be able to rebalance it, to allow employees to have a safety net in relation to the reinstatement of these 90-day trials.

My question, really, to the Minister is if she has any particular views. If she doesn’t agree with my Amendment Paper, then what is her proposal in order to rebalance the 90-day reinstatement to help our employees?

RICARDO MENÉNDEZ MARCH (Green): Thank you, Mr Chair. It’s been canvassed in previous debates as to disabled people, and with regard to clause 5, with the expansion of 90-day trials to those bigger businesses, I wanted to check whether the Minister had sought any views from Whaikaha, or whether that was explored, around the impact of the expansion of 90-day trials on disabled workers, particularly because of the minimum wage exemptions and other kinds of specific interactions that disabled people experience in the workplace. I ask whether she had sought any second opinions there or, in fact, from any other ministry that are population-specific.

Particularly with regard to disabled workers, I did want to see if the Minister had any reflections around the fact that there are specific discriminations that are already felt in the workplace, both in law but also in practice and in culture. I think, if there were no opinions sought from Whaikaha, just what are her views on how this may impact disabled people more generally? I know that she’s talked about the flexibility element, but with it being extended to those larger businesses, not all of them have the management practices to support new disabled workers into the workforce, and so I’m interested to see how she thinks those 90-day trials may impact disabled people.

Hon GINNY ANDERSEN (Labour): Thank you very much, Mr Chair. I’d like to speak to my proposed amendment for a new clause 6, and this is the second one. So this is the implementation of this bill contingent on a review in three years’ time. The proposed amendment is made subject to a review being undertaken in three years in order to investigate how trial periods and employment agreements have improved the outcomes for workers.

Tim van de Molen: Point of order, Mr Chairperson.

CHAIRPERSON (Greg O'Connor): If this is a point of order regarding the relevance of this, that is a job for the Chair. I’m well aware of what’s going on. If that’s your point of order, there’s no need. However, point of order, Tim van de Molen.

Tim van de Molen: OK—all right. My point of order is to seek consistency. What we heard from Ms Belich earlier was a clear agreement that had been reached that Ms Andersen’s amendments were not part of clause 5; they were part of clause 6.

CHAIRPERSON (Greg O’Connor): That’s correct.

Tim van de Molen: Now, I’m interested in whether your view now is that that’s incorrect. If they are to be in this part, then presumably they will not be available for debate in the next—

CHAIRPERSON (Greg O'Connor): The member is actually speaking to another part from the part that actually became part of clause 6, but thank you for your assistance. Carry on.

Hon GINNY ANDERSEN: Thank you very much, Mr Chair. This amendment is made subject to a review being undertaken in a period of three years in order to investigate how trial periods and employment agreements have improved the outcomes for workers in employment. The report of this review will be important information to understand the impact of what this legislation has done to those New Zealanders it directly impacts. My amendment also stipulates that this must be provided no later than six months following the three-year anniversary of Royal assent of the repeal bill, and it also states that the Minister must, within 60 working days of the day the review is provided to the Minister, present it to the House of Representatives.

The purpose of this amendment really speaks to that part identified in the regulatory impact statement that says that there is simply very little evidence that New Zealand has right now that indicates what the impacts are of this, not only to businesses but also to working New Zealanders. The regulatory impact statement lists three different sources of information that have been made available to try to understand the impact of what the legislation will do, and it’s quite clear that that is scant and that there is insufficient evidence to fully understand what this will do to the rights of working New Zealanders over time. So I think it’s only right and fair, if we want to learn from our mistakes, and if we want to learn what the outcomes are and how this directly impacts upon people in New Zealand, that we build into this hastily made legislation a built-in clause that we can take a look at it after a significant period of time and understand how it has made an impact upon that.

Taken alongside of some of the other recommendations which are to require the recording of information, this is a really important step to make sure that in 10 or 20 years’ time, when we are going through processes such as this again, as we go in political cycles—to understand, when we go to do this again, what the impacts of the law we make today are and how that impacts upon workers’ rights and the employment relationship, because that goes right to the heart of the Employment Relations Act, which is that fundamental good-trust relationship between an employee and employer. My real fear with this legislation is that it fundamentally undermines the good faith that underpins that critical relationship between an employee and an employer.

So I think that we have a fundamental responsibility in New Zealand, as good lawmakers, to understand that if we are taking this step and if we are undermining that fundamental right within the Employment Relations Act, then surely we should take it upon ourselves to check back in in a period of three years and understand exactly what is the damage that has been done in terms of workers’ rights and in terms of the rate of unemployment in New Zealand, and in terms of the ability of people who are in precarious work situations to still pay for their rent and meet their bills each week. What are those implications when we have introduced every business in New Zealand having the ability to fire workers at will within a 90-day period? If we’re going to make sweeping changes that fundamentally undermine the balance that exists in the Employment Relations Act, which is already tilted in favour of the employer—if we’re going to be doing that, then we have a right and a responsibility to all those New Zealanders whose lives will be impacted to take a look at what has been done after three years and learn from the mistakes that we’ve made.

RYAN HAMILTON (National—Hamilton East): I move, That debate on this question now close.

RACHEL BOYACK (Labour—Nelson): Thank you, Mr Chair. I appreciate the opportunity to take a call on my other amendment. I note that the Minister made some comments in response to this amendment, but I do note that I hadn’t actually had the opportunity to put my case to the committee and to the Minister for this particular amendment, so I’m going to take that opportunity now. This specific amendment would insert, after section 67B(2): “(3) For employers who employ 20 or more employees, any dismissal under a trial provision in an employment agreement must have the written agreement of both the employer and the employee, and the employee’s representative where they have one.”

Now, I want to make some particular points about what this clause would address, because throughout this debate there have been references made by my colleagues about two matters which I think are important at the heart of this debate, and are relevant back to this clause that I would like to introduce. That is around the object of good faith but, furthermore, the objects of this Act about the power imbalance in the relationship. I want just to mention this because I heard an interjection from a member opposite earlier tonight, and I’m not sure which member, so my apologies to the member. I heard an interjection stating that it was a perceived power imbalance, but, actually, that’s not what the Employment Relations Act states. The Employment Relations Act is very clear that there is an inherent inequality of power in the employment relationship.

The reason I note this is that it’s relevant back to my clause, because what the bill that the Minister has introduced tonight does is that it takes away and undermines the object of the Act. So what my clause would do would actually add back in a mechanism to address that power imbalance that has been taken away through the bill that’s been introduced tonight.

The reason I bring up the fact that this is what’s stated in the Employment Relations Act is that this particular clause and object was included in the original version of the Act when it was introduced by the fifth Labour Government, when Margaret Wilson was the Minister of Labour, and this particular clause survived the previous National Government that came in after that, prior to the sixth Labour Government. It is not a clause that has ever been removed from the Act. Every Government of every colour since the introduction of the Employment Relations Act 2000 has accepted that there is an inherent inequality of power in the employment relationship; not, as a member opposite interjected, a perceived inequality of power. The Act is very clear, and as parliamentarians, as lawmakers, it’s important to us that any amendments we make to that Act don’t actually undermine the objects of the Act.

So my point to the committee tonight and to the Minister—and so my question, again, for the Minister—is that I’d like her to reconsider this. There is a power imbalance being reintroduced through introducing 90-day trials to employees who work for employers where they have 20 or more employees. It is the view of this side of the House that upholding and maintaining good faith and upholding and maintaining mechanisms that address that power imbalance are important for all of us as parliamentarians to uphold. Otherwise, I would suggest that, actually, the other side of the House should change the objects of the Act. If that is how they really feel, show New Zealanders what they really feel: show New Zealanders that, actually, they believe that employers should be allowed to have significantly more power in an employment relationship. If that is how they feel, they should say it—change the Act. Don’t just tinker with it; come on out there and tell us what you really think.

So the reason why I’ve introduced this amendment is because I believe that having a written agreement between the employer and the employee, and the employee’s representative where they have one, would help to ensure that there was some understanding, a process to acknowledge why that person was dismissed, and reasons given for that person to have been dismissed, so that there was actually a proper acknowledgment and a proper agreement so that that person—as many of us have noted tonight—will not be left sitting in limbo, wondering, “Well, why was I dismissed?” This clause would assist the parties to that employment relationship to have a proper understanding and for there to be an agreement, so it would actually address that power imbalance and ensure there was a fairer process involved if a dismissal were to occur under this new bill.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): I thank the member Rachel Boyack for that very fulsome contribution, but I also remind her—as she also noted at the start—that I have also already responded to that particular clause. I always just want to take the chance to talk about Ginny Andersen’s amendment, which talked about requiring a review of the impact of the 90-day trial periods. I remind the member that I have already spoken on that, on a previous amendment doing the exact same thing.

RYAN HAMILTON (National—Hamilton East): I move, That debate on this question now close.

A party vote was called for on the question, That debate on this question now close.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Motion agreed to.

CHAIRPERSON (Greg O’Connor): The question is that the amendments to clause 5 set out on Amendment Paper 9 in the name of Ricardo Menéndez March be agreed to.

A party vote was called for on the question, That the amendments be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendments not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that the amendment to clause 5 set out on Amendment Paper 10 in the name of Ricardo Menéndez March be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that the amendments to clause 5 set out on Amendment Paper 11 in the name of Ricardo Menéndez March be agreed to.

A party vote was called for on the question, That the amendments be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendments not agreed to.

CHAIRPERSON (Greg O’Connor): Arena Williams’ tabled amendments to clause 5 to replace “employer” with “employers who employ fewer than 20 employees” are out of order as being contrary to the objects and principles of the bill.

The Hon Kieran McAnulty’s tabled amendment to clause 5 inserting new section 67B(2) to allow an employee to revoke a trial provision at any time is out of order as being contrary to the objects and principles of the bill.

The question is that Helen White’s tabled amendment to clause 5 inserting new section 67B(3A) be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Arena Williams’ tabled amendment to clause 5, inserting new section 67B(2) requiring employers to use a trial provision only if they can prove financial or reputational harm to the employer, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Tangi Utikere’s tabled amendment to clause 5, inserting new section 67B(5) to require any employer wanting to utilise a trial period to consult with the employee, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Tangi Utikere’s tabled amendment to clause 5, inserting new section 67B(6) to enable employees to seek a determination from the Employment Relations Authority, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that the Hon Kieran McAnulty’s tabled amendment to clause 5, inserting new section 67B(6) to require an employer to pay legal costs to a dismissed employee, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Rachel Boyack’s tabled amendment to clause 5, inserting new section 67B(3) to entitle dismissed employees to a termination payment, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that the Hon Barbara Edmonds’ tabled amendment to clause 5, inserting new section 67B(6) to (8) to establish a fund for dismissed workers, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Rachel Boyack’s tabled amendment to clause 5, inserting new section 67B(3) to require written agreement between an employer and employee for any dismissal, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that the Hon Phil Twyford’s tabled amendment to clause 5, repealing section 67B(5)(a), be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that the Hon Dr Duncan Webb’s tabled amendment to clause 5, inserting new section 67B(6) to require any disagreements about trial provisions to be referred to mediation services, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that the Hon Ginny Andersen’s tabled amendment to clause 5, inserting new section 67B(2A) requiring employers to keep records of dismissal processes under trial periods, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Arena Williams’ tabled amendment to clause 5, exempting certain employees from legal proceedings being brought against them by their employer, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Helen White’s tabled amendment to clause 5, inserting new section 67B(6) limiting the number of times an employer can utilise a trial period, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Camilla Belich’s tabled amendment to clause 5, exempting workers listed under Schedule 1A of the Employment Relations Act from trial periods, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Helen White’s tabled amendment to clause 5, limiting the number of employees that an employer may dismiss under a trial provision per calendar year, be agreed to. All those in favour, say Aye, to the contrary, No. The Noes have it. A party vote is called for. Please conduct a party vote. [Interruption] Whoever the member is who’s trying to be a budgie over there, stop it please. This will be—[Interruption] Sorry, who was that member whistling? Stand, withdraw, and apologise. That’s the second time you’ve done it.

Ryan Hamilton: Sorry, Mr Chair, I do apologise for that.

CHAIRPERSON (Greg O’Connor): Thank you.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Camilla Belich’s tabled amendment to clause 5, requiring third party witnesses to verify trial provisions, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that Camilla Belich’s tabled amendment to clause 5, barring employers from using trial periods for three years if they are found to have previously used them unlawfully, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that the Hon Jan Tinetti’s tabled amendment to clause 5, proposing a penalty regime for employers who unlawfully use trial periods, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): The question is that the Hon Jan Tinetti’s tabled amendment to clause 5, providing for dismissed employees to be retroactively entitled to beneficiary payments, be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Greg O’Connor): Helen White’s tabled amendment to insert new clause 6 is out of order as being contrary to the object and principles of the bill.

A party vote was called for on the question, That clause 5 be agreed to.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Clause 5 agreed to.

New clause 6

New section 67BA inserted (Monitoring and reporting on use of trial provisions)

CHAIRPERSON (Greg O’Connor): Members, we come now to new clause 6, set out on Amendment Paper 7. This is an amendment proposed by Ricardo Menéndez March requiring annual monitoring and reporting on the use of trial provisions and their impact on the labour market. The question is that the amendment inserting new clause 6 set out on Amendment Paper 7 in the name of Ricardo Menéndez March be agreed to.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Mr Chair. We know that the coalition has agreed to follow the best available data and evidence and wants to be guided by the facts. My amendment is an opportunity to honour that commitment by ensuring that we monitor and report annually on the use of these trial provisions and their impact on the labour market, to see, then, if what the Minister has spoken about actually comes to fruition. If the Minister is very confident on what the coalition campaigned on, then there is no reason to fear having this reporting and monitoring in place.

What we hope that we can then achieve via this reporting is the effects of the trial provisions on things like wages. I’ve spoken about wages and about a couple of concerns we have around the negative impact these trials could have—things like job security, so these provisions, for example, enabling people to stay longer or shorter amounts of time in those jobs, and the terms of conditions of those employees. Are we improving health and safety standards in the workplace as a result of these trial provisions, particularly the effects on Māori, Pasifika, women, youth, and disabled employees? I’ve canvassed some of those population groups in previous contributions, but I think it’s really important that we do have information on how specific population groups are affected, and I think, particularly when it comes to Māori, that we also remind ourselves of our Tiriti commitments and therefore make sure that we are taking due diligence when it comes to policy making.

The other component in my amendment is for the department to prepare a report every year and for that report to be publicly available within three months of the end of the financial year. This is also important for public scrutiny and for the public to have access to that information about how those trials are going for employers and workers, as they are people we serve and they deserve to have that information made available to them. As part of my amendment, an employer “must—(a) provide information that is reasonably required by the department for the purpose of the reports;” and then we establish that link between those relevant departments and the employer, and we think that’s really important. Also, the employer must “(b) notify the department as soon as practicable if the employer becomes aware that the information they have provided is or has become inaccurate.” I think this is important as well, because we can’t just take that feedback about the impacts of those 90-day trials in good faith. We have to have those protections and safeguards to address information that may not be presented.

I cannot emphasise enough how much I think that the Minister should take on board these suggestions in good faith. If we are to be guided by the facts, and if the Minister is confident on what she’s spoken to, then this will just further add to her statement. It will further add to everything she has said, and there should be no concerns about this amendment, because sunlight will end up giving us clarity on the impact of the 90-day trials. It’s been well canvassed that there’s limited domestic evidence on the impact of 90-day trials here. Whatever little we have would not really be supporting what the Minister has brought forward, but I do think that amendment on the reporting would help guide us as legislators to make better decisions going forward.

So I’m really interested in hearing exactly what steps she wants to take if she doesn’t want to take this amendment on board. I know she talks about investigating it, but what does that look like? Can she give us confidence that the reporting and the monitoring will be thorough and that there will be resource allocated to this? Otherwise, I think this amendment presents a really good opportunity to be guided by facts and evidence.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): I thank the member for his suggestion, but as I’ve suggested in clauses 4 and 5, and now in clause 6, I will consider any research and evaluation plans in the context of my wider work. However, I don’t consider it appropriate to include these provisions in this legislation.

CAMILLA BELICH (Labour): Thank you, Madam Chair, and I would also like to speak to the amendment before us in the name of Ricardo Menéndez March looking at monitoring and reporting on the use of trial provisions. One of the things that members who have read the regulatory impact statement on this bill will note is the lack of information about how trial provisions are used, and I think that this particular amendment goes quite a long way to making sure that that information would be recorded.

One of the issues is that we can do studies on the relative impact of hiring, and there’s been quite a bit of a reference in this debate and in previous readings to the research commissioned by the Treasury that showed there wasn’t an uptake, an uptick of hiring even though that was the intention of the trial provision. But one of the things they did note is the actual use of trial provisions within individual employment contracts is not something that is centrally recorded in relation to if—so it’s really difficult to know to the extent that this is actually included within employment contracts in New Zealand.

So I think that this would be a really useful thing. I know the Minister has responded to Mr Menéndez March to state that she doesn’t think that she wanted to include this particular provision at this stage. But I think I would ask her to reconsider that because I think this is very sensible. I don’t think it goes against the policy of the Act at all. In fact, I think this would strengthen the bill that she has in front of her because it would show that she’s open to receiving additional information on the efficacy of the lawmaking on which she is endeavouring to put through the Chamber at the moment.

I support this particular provision, and I am interested—I found the responses from the Minister, although helpful, a little bit vague in terms of the actual concrete steps that she’s looking to take. So I’d just like to say that from my end, I support this amendment and I think it would be incumbent on the Minister to go into a bit more detail on the actual steps that she’ll be taking in order to monitor the various labour market impacts that extending the trial period as much as this particular bill does extend it from a very small section of employees, about 28 percent, to every employee would have on the employment market. So I support this amendment.

Hon BARBARA EDMONDS (Labour—Mana): I too stand to support the amendment that’s been put forward by Ricardo Menéndez March. As the previous speaker Camilla Belich has asked the Minister, she’s asking for a bit more detail as to how this forms as part of the Minister’s business-as-usual (BAU), because the amendment that the member has put forward is not BAU. There is no monitoring BAU as part of a portfolio to be able to provide each financial year, make it publicly available within three months at the end of the financial year to which this report relates, which the amendment speaks to.

I also wanted to ask the Minister, again, adding on—can you provide more detail as to how much you will report as part of your BAU or monitor as part of your BAU? The Natural and Built Environment Act repeal that went through—was it yesterday or this morning; sorry, today, because it’s still Tuesday—had a specific post-100-day assessment clause in it. Now, it wasn’t part of the bill, but it was part of the disclosure statement. Apologies to the Minister; I wasn’t able to find a departmental disclosure statement. I wasn’t sure whether one was needed for this bill. But in that particular Natural and Built Environment Bill that was put through, it actually had a specific clause which said, as part of the 100-day initiatives—so the Government’s 100-day initiatives—there would be an assessment or monitoring of the bill because it had gone through urgency.

So my additional question to the Minister is—she has made clear that she is not supportive of this amendment. We are asking for a bit more detail as to how this comes within her BAU, but also, one, whether there was a disclosure statement prepared for this bill; and, if not, what is her intention in meeting the Government’s post-100-days monitoring evaluation—which we have seen in other bills—because this bill has gone through urgency? So those are the three various questions that I would like some answers from the Minister, please.

HELEN WHITE (Labour—Mt Albert): Thank you. I just want to add one simple thing to this debate, because I think it is very important. We have about 80 percent of employees who are on individual agreements. We have absolutely no idea what’s in those agreements, and this work about trials mainly fits into that area, because it won’t be something that is very happily adopted in the collective agreements. The collective agreements are things we have some sight of because they’re collected centrally, and so we can see those—we can see what’s in them. But what we can’t see is the complex situation in an individual agreement, which may be made with an employment builder or it may be something that’s entirely original.

What I’ve found in those agreements is that there will be clauses that say what you expect them to say, and entirely new clauses which you haven’t ever thought of, which might actually affect how these things are working. I’ve given you one example tonight, which is the restraints of trade that are increasingly used to tie up employees so they cannot go and work for others and they cannot ask for a pay rise, because they cannot afford to leave. In combination, a trial period in those agreements is a problem, and I haven’t heard an acknowledgment that it’s a problem. I’ve heard that it’s another piece of work, but it’s not another piece of work; it’s a way of finding out—monitoring this piece of work and its impact, and what’s impacting on it and what isn’t.

So what I’d like to know is: have you got a plan to have a look at the effectiveness of your legislation in this case? Have you got a plan that involves seeing the whole picture?

CHAIRPERSON (Barbara Kuriger): “Has the Minister got a plan?”—don’t bring the Chair into the debate.

HELEN WHITE: Sorry—has the Minister got a plan? I apologise, Madam Chair. Has the Minister got a plan to look at the overarching work and the place of trial periods within the context of an individual agreement? And are we going to see what impact that clause is having in conjunction with other clauses? What is the plan to monitor the performance of her Government and her decision here to make this a policy, given that she has made a strong argument and she has pinned her flag to the mast that this will help a particular section of New Zealand? How will we know who it helps and who it does not help?

DAN BIDOIS (National—Northcote): I move, That debate on this question now close.

A party vote was called for on the question, That debate on this question now close.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

CHAIRPERSON (Barbara Kuriger): The question is that the amendment inserting new clause 6 set out on Amendment Paper 7 in the name of Ricardo Menéndez March be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

New clause 6 New section 67BA inserted (Review of operation of section 67A)

CHAIRPERSON (Barbara Kuriger): Members, we now come to the debate on new clause 6, set out on Amendment Paper 8. This is an amendment proposed by Ricardo Menéndez March requiring a review of the operation of section 67A three years after the bill’s commencement. Just before we start taking calls on this, I just want to note that it’s a very narrow clause, just like the last one, so we don’t want to see anything repetitive; we just want to stick to the point of the clause.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Madam Chair. So, again, I don’t mean to sound repetitive; it’s just that we haven’t had the select committee process. But I think what this seeks to add in this amendment under my name is the ability for the House—and I make the difference compared to my previous call, and I talk about the House because this amendment does have a requirement to report to the House as opposed to just kind of publish the ongoing review each financial year. So there are those differences about the reporting mechanisms that are being presented in this amendment that I’m proposing.

This is a three-year proposed review, and particularly when it comes to any effects on outcomes for workers when it comes to employment—so it could be quite broad, and it does then allow for some discretion about the scope of what we would be looking for. It’s a bit less prescriptive—well, it’s quite a lot less prescriptive than the previous amendment that I put previously.

Then it also gives the Minister discretion, while requiring the Minister to “ensure that the persons and organisations”—including representatives of employees and employers—“that the Minister thinks appropriate are consulted during the preparation of the report” about the matters to be considered in the report. That should, in my view, allow the Minister to freely canvass what she has previously spoken about in terms of the needs of employers and that flexibility that she seeks to embed in the bill that she’s put forward. But it also then allows that worker’s voice to be present, right, which we didn’t have because there was no select committee report, and the Minister has been unable to present that worker voice.

Then, lastly, there’s a requirement for the Minister to present a copy of the report to the House of Representatives, so then this allows for us to have that more substantive debate on the issue. No matter what the make-up of Parliament is, it just allows those debates to continue to be carried, and then it allows that report to then be used by the public as well. And it gives the public confidence that when we are introducing something that has such a big material impact, that they can use the report that is being presented to the House for research and for that public discourse. I think that’s, again, really important. In my view, it also addresses some of the previous things that we’ve debated around the lack of awareness that was identified on any policy that changes employment law. Because by having an amendment that requires that public discussion in the House, you are also kind of lifting the awareness constantly each three years for it to be then debated in the public.

So I think this, again, reinforces what the coalition set out to do, which is to make decisions based on facts. This allows for evidence gathering and those facts to be out in the public, rather than making decisions without that information being available prior. So I think it, in my view, should be considered by the Minister, and I think, in fact, it’s in line with the goals of the coalition, despite myself not agreeing with the intent of this bill.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you, Madam Chair. I’d like to respond and thank the member for his contribution, also noting that I responded to this in clause 4, clause 5, and in the previous amended attempt at clause 6—and will repeat it again—that I will work to consider my research and evaluation plans in the context of my wider work programme in further months. However, I do not believe that there is an appropriate need for a review provision in this bill.

RACHEL BOYACK (Labour—Nelson): Thank you, Madam Chair. Thank you for the opportunity to take a contribution on the amendment in the name of a colleague from the Green Party, Ricardo Menéndez March, introducing a new clause 6. I guess I just wanted to put to the Minister the importance of including some provisions within the bill that would provide the Government and the Minister and the ministry that monitors this legislation with the evidence base that is needed in order to properly monitor the impact of this bill.

Throughout the debate tonight, we have heard about some of those impacts that colleagues have raised, one being the mental health impacts. We’ve heard some quite distressing stories about the mental health impacts of those who have been subject to a dismissal under the 90-day trial, including a very serious result, which my colleague Jan Tinetti shared with the House this evening.

There have also been questions raised around the cost to the taxpayer. For those who exit an employment relationship who have been dismissed under a 90-day trial, there’s a likelihood—quite a high likelihood, I would say—that they then become subject to receiving a benefit, and that is a cost to the taxpayer. So it will be useful to be able to do some evidence gathering, and we’re just noting the clause, in particular, is looking at any effects on outcomes for workers in employment. That would be the type of impact of someone who had been in employment who was leaving their employment, but also those who are within the employment, whether they are more likely, for example, to try to negotiate a higher wage rate, whether they may be more likely to join a union, whether they may be more likely—colleagues in previous contributions have talked about workers being willing to leave a job that might be safe; you know, they’ve gone past that 90-day trial, but they might be seeking to, for example, apply for a role where they would be having a higher rate of pay and they may be less willing to do so if that presents a risk that they would then be subject to a 90-day trial.

These are the kinds of matters that it would be very useful, I believe, for the Minister, for the Government, for the House to have some evidence of. So just reading out the amendment, which is that after three years following the commencement of the Employment Relations (Trial Periods) Amendment Act, require a report to be prepared “on the operation and effects of section 67A, in particular any effects on outcomes for workers in employment.”

I just really take note on that point around outcomes for workers, because throughout this debate, the other side often raise the issues that employers may raise, but this specific new clause would be specific around potential outcomes for workers in their employment. I’m very interested in the impacts, particularly for women workers, who—as my colleague Helen White pointed out earlier—are often less risk averse around actually looking for another job. There were some amendments I put up tonight that would have limited the scope of this bill to those earning over a certain amount, and, again, that’s often because—[Interruption] Yeah, we’re getting to that clause. We’re looking at the outcomes on workers and it’s very clear we’re talking about the outcomes on workers.

The point I’m making is that there could be an outcome, and one of the things around research is that you put out a hypothesis and then you test it. One of the hypotheses I’d like to put out is that those on lower wages may well be in a position where they’re less likely to negotiate for a pay rise and they may be less likely to apply for a different job with a different employer. So I would say to the members opposite who seem to be interjecting a lot tonight—I mean, if they’re so interested in this clause, then maybe they should take a fulsome five-minute call. I’d encourage them to do that. They’ve been, well, I wouldn’t say quiet tonight; they’ve actually certainly had quite a bit to say, and I’d really encourage them, if they’ve got—

CHAIRPERSON (Barbara Kuriger): To the point.

RACHEL BOYACK: —something to say, stand up and say it. So just responding to the interjections, Madam Chair. So I think this is an excellent amendment in the name of Ricardo Menéndez March. It would insert a new clause 6. It would allow us to have, as soon as is practicable after three years, a review. One of the things the Minister will be required to do would be to not just hear from employers but to hear from unions and others that might be interested. You could have employment consultants, for example. People who work with people with mental health could be consulted. So it’s an excellent amendment and I commend it to the House.

CHAIRPERSON (Barbara Kuriger): I’m going to take a call from Camilla Belich, but I want this to be very strictly to the point of the clause, please. Thank you.

CAMILLA BELICH (Labour): Noted, Madam Chair. Thank you for the opportunity to speak to the amendment in the name of Ricardo Menéndez March, amending 67BA which is a new clause to be added in at clause 6 of the Employment Relations (Trial Periods) Amendment Bill.

There are three parts to this particular amendment, and I won’t take the full amount of time, but I want to make a few comments on the operative parts of it. The first one is, as we know, a review provision. However, the member has set down a review in three years and, in my mind, I think that’s probably a bit too long. I think it would be preferable to have a review after a shorter period of time, possibly one year or two years. I would like to ask the Minister if she—she’s obviously indicated she’s not interested in this particular provision as it stands at the moment. However, if it was amended to change the number of years, in fact, to make it a shorter period of time, would she be more open to it? Alternatively, in fact, a longer period of time would also be better than nothing, in my view. So we’ve got three years at the moment; would she be minded to agree to review provision if it was five years? So that’s 67BA(1) of the amendments in Menéndez March’s name.

The second part of that provision is looking at the people who should be consulted as part of the review, and we have had, I think, some very relevant and useful contributions on other people that could be included in that provision. But I wanted to take the time just to note that this bill is going through without a select committee process. I did read, when I was looking at my phone briefly in between taking contributions, that when this bill was first introduced it was also introduced under urgency. I wondered if she had information about that or whether this is, in fact, the first time urgency has been used in a trial period bill. As we know there have been—and she stated in her first reading speech—four different iterations of trial period legislation as they’ve been through the House. It hasn’t been to a select committee, and I think clause 2, 67BA(2), addresses some of the issues relating to the fact we didn’t have a select committee.

The third provision which would be useful I think for the House would be to present a copy to the House of Representatives. I’d go a little bit further than my colleague Mr Menéndez March and just say: would it be, in fact, more appropriate for us to actually have a special debate on that report when it was tabled? I won’t be tabling a separate amendment to make that suggestion, but I’d be interested in the Minister’s thoughts. If she was to be agreeable to perhaps a shorter or longer period in clause 67BA(1), in that operative provision of three years at the moment, would she be open to having a debate in the House looking at this report that he has suggested?

DANA KIRKPATRICK (National—East Coast): I move, That debate on this question now close.

A party vote was called for on the question, That debate on this question now close.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

CHAIRPERSON (Barbara Kuriger): The question is that the amendment inserting new clause 6 set out on Amendment Paper 8 in the name of Ricardo Menéndez March be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

New clause 6 Section 103 amended (Personal grievance)

CHAIRPERSON (Barbara Kuriger): Members, we now come to the debate on new clause 6 set out on the Hon Ginny Andersen’s tabled amendment. This amendment seeks to enable an employee dismissed unfairly under a trial period to bring a personal grievance.

Hon BARBARA EDMONDS (Labour—Mana): Point of order, Madam Chair. Thank you, Madam Chair. I wasn’t going to interrupt the vote because you had gone to the vote. Not asking Madam Chair to reopen the vote for clause 5 and 6, but actually just a reflection as we go into one more amendment clause.

Even though the amendment clauses that have been tabled are quite small and narrow, the Minister has been saying she’s been repeating answers that she’s given to different clauses—clauses 4, 5, and 6. The concern that we have on this side of the House is that they are all still new amendments and, because we don’t have a select committee process, we need to be able to speak to the various amendments. Even though the Minister’s answer might be the same, they are relevant to previous clauses, not the new clauses.

So I just ask, Madam Chair, as we debate the next clause by Ginny Andersen, there are a couple of questions which I don’t believe have been addressed by the Minister, and I’m not going to reopen them, but they’re related to about four different questions that had not been addressed. But nevertheless, as we go into this new clause debate, I ask that Madam Chair just reflect on, even though the answer may be the same by the Minister for previous clauses, we are debating a new clause.

CHAIRPERSON (Barbara Kuriger): Thank you for that point of order. What I would say is that some of the debate over the course of this committee stage has been quite extended. The last two Amendment Papers were very narrow. This one appears to be a little bit broader, but I do want the conversation to be kept to what’s in the clause. I’d also say that it is up to the Minister as to whether she wants to take further responses. If she chooses not to, then that’s her choice. Thank you.

Hon GINNY ANDERSEN (Labour): Thank you very much, Madam Chair. Thank you for the opportunity to speak to this new clause. I think it’s really important. I’d like to highlight the importance of this addition to essentially enable an employee who has been dismissed unfairly under a trial period to be reinserted to provide that ability in the Employment Relations Act.

One of the main reasons that this is important is that those most vulnerable workers, which we know through the information we’ve received in the public domain, there was leaked Cabinet advice which specifically indicated that Māori, Pasifika, rangatahi, and disabled were made—that directly impacts in terms of workers’ rights. So we’ve seen two lots of legislation through this Chamber. In both instances, it is the most vulnerable workers that are actually impacted upon. So it’s really essential when we are making sure that we get this right—and I think it is most definitely not right—that we look at, if you are essentially taking away and removing the ability from an employee to have a personal grievance within the first three months of their employment, it is essential that we go through and look at all of the possibilities of where that can be taken advantage of.

This unfairly further tips the balance in favour of the employer and disadvantages employees. It will mean that those people will be discriminated against, whether they be working mothers, whether they be Maōri, whether they be Pasifika—it is those people who we know through research, through the analysis we’ve taken, that are those ones that are taken advantage of through the employment process. In order to protect the rights of those people who need it the most in New Zealand, it is fundamentally important that we take real consideration of my proposed amendment.

So in section 103 following (k) to insert a new (l) that employee has been dismissed unfairly under a trial period. That means you cannot legislate away workers’ rights. So by enabling that provision to be in place, if there is discrimination in the workplace under a 90-day period, it rightly reinstates workers’ rights to be able to stand up and say that that was an unfair dismissal.

It really bothers me. It gets to the core of the reason why a lot of the people are here today in politics and in this place, is because we stand up and fight for those people who don’t have a voice in this place—for those people who aren’t employers, who don’t own a business, who don’t run a company, and who are dependent upon a good, strong working relationship in order to put food on their table each week and to be able to pay the rent.

What concerns me most dearly is that the erosion of workers’ rights by taking away the very ability to bring a personal grievance after being dismissed will mean increased unemployment, will mean that children are in homes where there is not food. It will mean that it brings down our common standards of how we treat each other. And it fails to recognise that we are an interconnected community. We are part of the same country, and if we turn our backs on the workers then that will mean, in the long run, New Zealand is worse off.

So I think it is inherently important that we reinstate basic rights by enabling this new provision to be reinserted within the Employment Relations Act, to enable those people who are dismissed and feel that they have the right to bring a personal grievance against their employer, they should be able to do that. My question to the Minister is: how do you justify stripping away the most fundamental right, which is if someone has been discriminated against in their workplace and has been subsequently dismissed, then they—what is the reason or what is the benefit to New Zealand by nullifying those fundamental workers’ rights?

Hon WILLIE JACKSON (Labour): Thank you, Madam Chair. The personal grievance right is a basic human right. It’s something that we’ve taken for granted for many, many years. Sadly, these rights, as Ginny Andersen was saying, are being stripped away.

One of the anomalies when I was a union official for many years—one of the major problems we had—was not having the opportunity to enforce legislation, particularly when it came to kaupapa like redundancy. We don’t have that legal right to force redundancy payments through. But, really, we say—we’ve always said in the movements—that employers have a moral obligation to pay compensation to workers, and employers have a moral obligation to allow people to roll out and utilise the personal grievance provisions. It is a basic, basic right.

I said to the Minister earlier on that, when I was employment Minister, we had a number of strategies that addressed issues like this—that she chose to ignore, sadly. I talked to her about the Māori employment strategy that was embarked on and rolled out. My good friend Janice Panoho was the chair of that. If the Minister bothered to look at that, she would see how important the personal grievance—

CHAIRPERSON (Barbara Kuriger): Is this about unfair dismissal?

Hon WILLIE JACKSON: Yeah, I’m coming back to the bill. I’m just giving some precedent, Madam Chair, in terms of how important the personal grievance provisions are. It is absolutely imperative that workers get an opportunity, Madam Chair, to access that provision. Anything can happen. What we’re saying here—what the Minister is, essentially, saying here—is that a worker does not have the right, has no right, to take an employer to court, and an employer can do anything to that worker. That’s what the Minister and the National Party are saying. Workers have rights whether they’re on trials or not. We’ve said this for many years: workers have a right.

We’ve heard tonight from some of our speakers, from some of our women—we heard this from Tamatha Paul and other speakers—what happens when some of these young women are sexually harassed within the workplace. They have no access to support. They’re not able to respond at all. What is this Government saying? “Get lost. You can’t use the provisions that should be there for everyone.” That’s why this is such an important provision that Ginny Andersen has put up. All workers should have opportunities to justice. They should not be prejudiced against just because they’re on a trial. Everybody should have rights, and that’s what this side of the House has been trying to say for the last few hours.

I’m really pleased—it doesn’t matter what the time is, Madam Chair—that we have to address a basic fundamental human right. Personal grievances are important, and if a worker doesn’t have that, a worker doesn’t have anything. So I’m asking the Minister tonight what she is going to do. Will she address some of the strategies that have been rolled out by the previous Government, where we had a women’s strategy that has been rolled out, a strategy for Māori, a strategy for Pacific Islanders, a strategy for disabled people? It’s all there.

Why have we got these strategies? Because there have been barriers put up against all these different groups of people, and all these people want are basic human rights. They want a proper wage. They want access to the personal grievance area. They want support. They want their disparities recognised. I want to know from this Minister: will she support this type of provision? And, given the background that we’ve heard from her party, where they are so concerned about human rights, surely this personal grievance provision would be attractive to her? So I ask her to address that.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you, Madam Chair. Look, I’d just like to quickly address both members who made a contribution—that this is actually quite a narrow bill. It’s taking a law that existed under the previous Labour-led Government for 90-day trials for small and medium sized businesses and extends it to all employers. From the contributions of both members, anybody listening may not be aware that we actually do still currently have 90-day trials in law and we’re simply extending them. It is not as controversial as some of the scaremongering that I’ve heard in these contributions. However, talking to this specific amendment, this would undermine the entire purpose of the bill, and so, therefore, we do not support it.

RICARDO MENÉNDEZ MARCH (Green): It’s a pleasure to take my first call on this very specific amendment, so I appreciate being able to make a contribution. I think this is a really important amendment to discuss because—and to add a new angle to the debate—I want to get the Minister’s view on why she doesn’t think the intent of this amendment actually marries with what she has previously described around enabling that good matching of employers and workers to actually happen in a way that happens in good faith.

If the Minister is so confident that she wants to make sure that there’s flexibility in finding good matches, then there won’t be those unjustifiable and unfair dismissals. If the Minister is so confident that her legislation will lead to a better matching of employers and workers, then she should allow for personal grievances to be put in place when there’s unfair dismissals, because otherwise what this tells me is that the Minister is not actually that confident that 90-day trials lead to fair outcomes. If the Minister is so confident that 90-day trials lead to fair outcomes, she would have nothing to fear about personal grievances being able to be in place.

So I’m really curious to unpack how her previous statements regarding good matching between employers and workers and particularly around flexibility in the workplace match. To me, it says a lot that the members to my left say that it’s not a new—because they seem to not be listening and just being snarky and making comments. For the ones that are new, I would invite them to pay more attention in the House and do more service to the communities that they are supposed to serve.

Returning to the amendment, I think that the key thing here is, if she doesn’t believe that this adds flexibility, I’m interested to know why. Then, how does she think that without this amendment we can still continue to protect workers from unscrupulous employers? Because this amendment presents one of the few last safeguards that could be introduced at a time where the Government is presenting a huge, huge concession when it comes to workers’ rights in the name of productivity, according to the Minister, and in the name of flexibility. So yeah, again, really keen to unpack how this amendment, in her view, contradicts her previous sentiments around making sure that employers and workers match.

RACHEL BOYACK (Labour—Nelson): Thank you, Mr Chair, for the opportunity to take a call on the new clause 6 amendment proposed by my colleague Ginny Andersen. I just want to pick up on some of the comments raised previously around the ability to take a personal grievance, and just speak to a little bit of experience around that but also what this new clause would achieve, which I think would be a very good addition to the bill.

Section 103 of the Employment Relations Act lists a series of claims that can be used to take a personal grievance, one of which is sexual harassment. There are a variety of different claims there, and the Act goes on to also provide the test for that. One of the questions I’ve got for the Minister is whether any analysis has been provided to her by officials, in particular, about the risks to employers with the reintroduction of 90-day trials through to employers with 20 or more employees. The reason I raise that is that when this law was introduced under the previous National Government, what we found in employment law was there were a number of employers who used the law and subsequently did end up with a personal grievance being taken. In some cases it was found, for a variety of reasons, for example, one would be that the person—I remember a good test case we had where somebody had actually technically started their employment before the employment agreement was signed and the 90-day trial agreed, and so they were allowed to therefore take a personal grievance.

So I would put a proposition there that this introduction of this law actually presents a risk to employers. This is why I’m specifically speaking to this clause, which is that it would be explicit that you could take a personal grievance. One of the things that we used to find a little bit when I took cases off into mediation and then sometimes a lawyer would step in and assist to the Employment Relations Authority: one of the things that would occur would be you would have this test out between process and outcome, and one of the things that would occur in those cases would be that an authority member or a judge, at times, would say, “Yes, this person has been unjustifiably dismissed because the process was poor, but, actually, there’s a contribution from that employee and therefore I”. There have even been judgments when the contribution from the employee was considered to be at 100 percent. So, ultimately, while they won the personal grievance case through a process, they ultimately received no financial remedy or reinstatement because they had contributed 100 percent.

One of the reasons why I raise that particular example, coming back to this clause, is that by actually being explicit about the right to take a personal grievance, it doesn’t actually mean that there is going to be a remedy for that employee. That’s the point I want to make here: it still allows that process to be followed. It allows the employee that’s been dismissed under a 90-day trial to be able to have the opportunity to test that using the legal remedies that are available to them. What it doesn’t mean is that they will necessarily win that argument in either the authority or the court or a higher court.

The reason I raise this again, and I’m particularly interested in hearing from the Minister, is whether any advice has been received as to whether the reintroduction of 90-day trials for larger employers presents a risk if they don’t follow the process properly because there is case law sitting there on the books that actually allows people to still take a personal grievance. I would say we then have a situation where we have case law in the statute in contradiction with each other. That actually presents a risk in terms of analysis, and there may be situations that present themselves in the coming months where people are employed under a 90-day trial, dismissed under a 90-day trial, then able to take a grievance, and the courts say, “Actually, you can.”, and that has happened.

I think the best option would be to put in place what is a very good amendment from Ginny Andersen because it would then actually be clear to employees and employers that under case law you can still take—and I think it’s important we get this on the Hansard for the Minister, actually: what is the intent? What is the advice received, because this will come up in the courts—the intent. So if it’s not in the Hansard from the Minister, I would suggest that there’s probably employment lawyers that would read this Hansard and say, “Actually, you know, we haven’t had that clarification from the Minister.” So I’d be very interested to hear from the Minister on this particular clause.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): I thank the member for her concern, but I believe that the member may misinterpret the intention of this clause. It is actually quite possible with people who are currently under 90-day trials, as was the law under the previous Labour-led Government, where it is still the current law that we have 90-day trials, people can raise a personal grievance on other matters, such as sexual harassment, as the Hon Willie Jackson raised. So just to clarify for the member, that law exists now. We’re simply extending 90-day trials to all employers.

CAMILLA BELICH (Labour): Thank you, Mr Chair. I would just like to carry on the train of thought that the Minister raised in her contribution there.

Yes, it is correct that you’re able to take some personal grievances when you’re in a 90-day trial. That is, in fact, the entire purpose of the Hon Ginny Andersen’s amendment, because I heard the Minister respond to a previous speaker to say that she didn’t support this amendment because it goes contrary to the whole purpose of this bill, which is not to allow any employee in a trial period to take a personal grievance. Well, in fact, the substance—

Hon Brooke van Velden: That’s not what I said.

CAMILLA BELICH: Well, I’m happy to hear a contribution from the Minister in due course. The substance of this provision is actually to allow the bill to exist with its purpose of not allowing unfair dismissal personal grievances to occur, but inserting another clause in clause 103(1), entitled “clause (l)”, which essentially creates a new type of personal grievance, which is a type of personal grievance that can only occur when an employee has been dismissed unfairly in a trial period.

So yes, an employee couldn’t take a personal grievance for unfair dismissal during a relevant trial period. But if this provision was to go ahead, there would be a new personal grievance that only applies to people who were dismissed unfairly—which is a different term to “unjustified”, which is the common term used in relation to personal grievances in this Act. So it would create a new personal grievance for those who’ve been treated unfairly under a trial period.

So I think it actually does two things. It doesn’t just insert that section; it also goes back. If you can see in the Act at (1)(a), it also includes the reference to (k) in the primary Act as well. So it would make, essentially, two changes: one to the bill; which would then allow the bill to amend the primary legislation, which is the Employment Relations Act, inserting another—there’s a whole list of personal grievances that are listed in section 103; it’s one of the most important sections of the Employment Relations Act and it would add another one in there as well.

So I think it’s a very good provision. I support the inclusion of that provision, and the reason that I do is I think it helps to mitigate some of the unfairness which has been discussed at length during this debate for individuals that are covered by a trial period. It would allow the trial periods to exist as the Minister intended with the introduction of this provision. But it would allow them, if they were treated unfairly, to take an additional personal grievance. And there are, as the Minister knows and she’s mentioned, several exceptions to the overall ban on taking personal grievances. So the only one that is actually not allowed under the under the bill—

Hon Brooke van Velden: Very glad you’ve discovered this since question time.

CAMILLA BELICH: —is the unfair dismissal one, and this creates a new one there as well.

So I’m interested whether the Minister wants to reconsider her position in relation to this section. Given my professional opinion of this, I think that may be something that she wants to reconsider. I think that it’s very difficult to say to someone that you’ve got no recourse to justice—and this is about access to justice. Trial periods are serious in that they remove access to justice, and this provision goes some way to restoring the ability for individuals to gain justice.

I’m sure all members in this room, if they ever have a friend or loved one who is dismissed under a trial period, that feeling of frustration; that feeling of lack of justice; that feeling of unfairness that will just taint their entire life. I’m not overstating that. It is hugely serious and something that I think has been touched on a lot in this debate. Jobs are not simply a means of employment: they are self-esteem, they are about how you identify, they are about your place in the world.

If people are not allowed to take action where they’ve been treated unfairly in something that is so important to them, it is really important that we look at that, we take it seriously, and I think that this clause—as proposed by the Hon Ginny Andersen—goes some way into restoring dignity to those people covered by trial periods.

ARENA WILLIAMS (Labour—Manurewa): Point of order. Thank you for the point of order, Mr Chair. Mr Chair, there is a convention that, in committee, members in charge of legislation should not take unfair advantage of a live microphone by way of interjection. Mr Chair, I wonder if, given that we’re all a bit tired and I know the Minister is doing her best to observe those rules, whether you would allow my colleague Camilla Belich another five minutes to finish her points that I missed because the Minister was interjecting throughout her speech—three times. I wonder if that would be the right way to move forward with that.

CHAIRPERSON (Teanau Tuiono): I mean, I appreciate the point of order, but the member could also take another call. But I do want to bring back the focus to this very specific clause. I do want to acknowledge the energy in the committee tonight and the commitment from members right across the Chamber in this graveyard shift. But I would ask members opposite, in particular, to focus on this particular clause.

CAMILLA BELICH (Labour): Thank you, Mr Chair, and thanks to my colleague Arena Williams for the point of order. I do have some other thoughts on this particular provision, which I’m happy to elucidate for you, Mr Chair, and for the members still present in the Chamber. I think it’s actually interesting and I think it’s timely that we have a provision that focuses on section 103, because, although this section is not mentioned specifically in the bill, which is before the committee at the moment, the sections which the bill amends do mention section 103. It is fundamentally important to a lot of the points that the Minister has made around access to justice. I do commend the Minister for not getting rid of the access to personal grievance provisions that exist under this Act. There’s actually a significant number of them which are still included within this particular Act.

This particular section, (l), which is what the Hon Ginny Andersen’s amendment to the bill proposes to put in place, has a few different parts to it. In law, we would look at the different tests, in the particular provision, to make sure that we can prove them. So we would have to have an employee that has been dismissed for this to apply. So, obviously, anyone who had been dismissed from employment would be covered by that. That’s the first leg of the test.

The second part of the test that would apply would be “unfairly”. So there would have to be some kind of test. The Employment Relations Authority or Employment Court or the Court of Appeal of the Supreme Court, which are all of the courts that could potentially look at this particular provision—and that, I think, underpins the seriousness of what we’re discussing today—could potentially look at that and they would have to say whether something had been done fairly or not. If that person was found to have been dismissed but that it was a fair dismissal, then that person would not be able to meet the second leg of the test. So I think that is very important.

The third leg of the test would be under a trial period. If the person was found to have been dismissed and it wasn’t a valid trial period—I mean, this is something that’s important to consider: often trial periods are found to be invalid. So it could be quite a likely situation that someone could think that they were dismissed under a trial period, and not actually be dismissed under a trial period because the employer did something wrong. I’ve advised a lot of people on these cases. Every single case that I’ve seen on trial periods, the employer has not done it correctly. They’ve given someone a contract where they’ve already started a shift—that is not a valid trial period. They’ve, for example, given it to someone who’s already worked for them before—that is not a valid trial period. So it could be that trial period, which would be the third leg of the test under this particular amendment that we’re discussing, would not be fulfilled.

So I think it’s important to go through that to truly, fully understand the provision that’s before us. The Minister does have the opportunity to change her mind and support this amendment—

Hon Member: That’s right. Bishop did earlier.

CAMILLA BELICH: —to allow access to justice. Yeah, exactly. It’s not unprecedented for Ministers in the chair to reflect on the legislation before them and say, “Actually, this is a reasonable amendment which actually might add to the bill that’s before the committee.”—which is made by Parliament. We have to think about that as well. The reason that we’re putting forward these amendments, and the reason Ginny Andersen has put forward this amendment, is because this is a parliamentary bill, and what Parliament intends is important. Obviously, the Minister has a huge role in determining the direction that Parliament goes, but I think it’s important that we reflect on that.

So I thank you, Mr Chair, for the opportunity to fully go through that section. I actually think it was helpful for me in terms of understanding the applicability of this particular section, and I hope it assists the Minister in her consideration of the amendment.

CHAIRPERSON (Teanau Tuiono): Members, we are coming to the end of this discussion. People are starting to repeat. So the next call that is taken—it needs to be focused on this clause.

RACHEL BOYACK (Labour—Nelson): Mr Chair, I thank you for the opportunity, because I want to come back to the previous contribution I made. I have a specific question for the Minister that wasn’t addressed. So my specific question to the Minister about this clause asked what advice she had taken from officials, and that is what I actually want to hear from the Minister. So I need to raise it again, Mr Chair, because based on my earlier contribution it wasn’t answered. [Interruption] I’d love to hear from somebody on the other side, seeing they are so interested—maybe they could take some more fulsome calls.

The reason why I’m raising this again is that we have had circumstances under this law when it was in existence last time, where employers were subject to personal grievances. My colleague Camila Belich has outlined in a bit more detail than I did previously some of the examples of that. So I want to come back to this clause, because it’s very specific. What it says is that in section 103 it would insert that “the employee has been dismissed unfairly under a trial period.” I want to come to that part around “unfairly” because that comes back to process. It is the process that is critical here.

One of the things I am concerned about is that employers who might be listening to this debate will be becoming confused right now. There will be confusion out there amongst employers because the Minister has stated that employees can take a personal grievance, but we are being specific here around a personal grievance on the basis of an unfair dismissal.

I want to come back to the question I asked and didn’t get a thorough answer to from the Minister, which was about what advice officials have provided. Again, I bring it back to the point that the House is in urgency and we haven’t had the opportunity to test out these matters with officials. If I was sitting on a select committee now, I would be asking for this to get a thorough response in a departmental report, and we haven’t had that. So I really want to hear from the Minister what advice officials have given her about the risk that employers will still be subject to a personal grievance, based on both her comments in the committee stage tonight but also on what we know about case law.

I made that point in my earlier contribution and I haven’t had a response about the interaction between case law and what we put on the statute book. I note that my colleague Camilla Belich is a lawyer. I’ve had the opportunity to be an organiser; she’s been a lawyer so she does have a lot more knowledge on the legal complexities here. But my experience of working in this field is that there have been examples of people being put on trial periods and they’re found to not have followed a proper process. So the point I made in my earlier contribution—which, again, was not responded to by the Minister—is that actually putting that clause in would give clarity to employers about a personal grievance for an unfair dismissal.

I say again that it’s not coming back to the substance of the dismissal; it’s coming back to the process that’s been followed. I am very keen to hear if officials have provided that advice, if that advice has been sought, about what risks this presents to employers, because if I was an employer, I’d be quite nervous about going down a process of including a 90-day trial in an employment agreement. I’d be feeling nervous, because in the Hansard tonight we’re seeing some confusion in the responses.

Also, we know that there are good test cases out there, and so I think it’s actually in the Minister’s interest to make sure that this is clarified for the committee tonight. Otherwise, her intent is for employers to be able to use this clause—there may well be employers that wish to use this clause but elect not to because they are concerned that it would actually present them with a risk that they otherwise wouldn’t have exposed themselves to.

This is an important point because people like Camilla Belich, Helen White, and me have worked in this field for a number of years and have seen this happen in action, in reality. It’s not something we’re raising out of randomness. It’s a real issue, a live issue, that under that flaw that was brought in many years ago, it was unexpected but there were a number of cases that were put to the court and were won based on poor process. So I’m really keen to hear more from the Minister.

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): Thank you very much, Mr Chair. It’s a delight to take a call at this point in the evening. I just simply refer the member to paragraphs 3 to 5 of the regulatory impact statement that has been prepared for this bill.

Hon WILLIE JACKSON (Labour): It’s me!

CHAIRPERSON (Teanau Tuiono): Yes, the Hon Willie Jackson, it is you at 11.25!

Hon WILLIE JACKSON: I didn’t quite catch that, but I stand to support Ginny Andersen’s amendment: section 103 amended in terms of the personal grievances in section 103 following 103(1). As I said earlier, access to the personal grievance provisions is a basic human right that has sadly, in our view, been ignored. But here’s the point that we keep reiterating: vulnerable workers need this more than anyone. I spoke earlier about women workers—

Hon Member: The other kinds of women workers.

Hon WILLIE JACKSON: Well, there’s lots of workers and I talked about the different strategies—I know the Government’s been enjoying this. We rolled out a number of strategies when I was employment Minister in terms of women, Pasifika, and Māori. We were very considerate—when the former Minister Robertson was leading us, we always had considerations for the Treaty. So I ask tonight, as a new point—because, again, we know that the Treaty is a very integral part of what Governments do and has been at the forefront of a lot of debates. [Interruption] Mr Chair, I can’t help it if someone down there is offended by the Treaty. I’m bringing another aspect—

Dan Bidois: Point of order, Mr Chair. I’m just referring to Speaker’s ruling 124/6 about relevance being determined at committee stage: if it is a particularly broad-ranging bill, then a broad-ranging committee stage can be considered. But this is quite a narrow bill and the member is talking about Treaty stuff and there’s no thing in the bill.

CHAIRPERSON (Teanau Tuiono): Yes, I definitely take the member’s point and acknowledge the Minister who had an answer—I was expecting a question about the answer, or a contribution about the answer, and the Hon Willie Jackson has strayed, unfortunately. I will let him continue his contribution, but he needs to focus on clause 6.

Hon WILLIE JACKSON: Thank you, Mr Chair. I’m really disappointed to hear you say that. I would have thought that you may have been supportive of what—

CHAIRPERSON (Teanau Tuiono): Oh, I was totally supportive, but I would be more supportive if you at least mentioned clause 6.

Hon WILLIE JACKSON: —I was trying to say there, because—well, we’re talking about it, but, as you well know, Mr Chair, the Treaty is integral in just about every part of what we do, and we have had to attach it to most parts of legislation. So I’m surprised that it’s been ruled out here, because we’re talking about women workers—in an earlier amendment we were talking about women workers, we’re talking about Pacific workers, we’re talking about the disabled, and we’re talking about Māori workers.

Now, for Māori workers—and that’s why I’m saying this is relevant, Mr Chair, if you could think about this for a second. This is relevant and just because the other side and Mr Bidois over there—you know, I mean, he’s not understanding the relevance here for workers who want to bring their disputes through the personal grievance area but also bring a Treaty perspective to the table. So we’re talking about—

Hon Members: Relevance?

Hon WILLIE JACKSON: Oh, absolutely. I was not a former union lawyer or academic; I was a freezing worker, as you well know. That’s a fact. I come from the shop floor. So I’m not like my flash colleagues over here, but I’ve been very lucky to be part of this team. And from the shop floor, when personal grievances came in, it was an area that gave people an opportunity. That’s why—here’s the point—in a trial period, workers need the opportunity to access this right, a basic human right that all workers should have access to. And Māori workers—as I said, I want you to think about this, Mr Chair—should have an opportunity to put forward arguments with regard to the Treaty partnership as an employer engaged in the partnership—

Hon Members: Ha, ha!

Hon WILLIE JACKSON: You can laugh about this but New Zealand On Air made it very clear that there had to be a partnership. Just ask Winston Peters; he talks about it all the time. So that’s why I’m bringing this to the table. Has the Minister thought about the implications in terms of the partnership with Māori and the Treaty implications here? This is all connected, and personal grievances and the Treaty and the relationship are connected. Has the Minister thought about her response to the Treaty implications?

CHAIRPERSON (Teanau Tuiono): I call Grant McCallum. Let’s hope you read this out right.

GRANT McCALLUM (National—Northland): I move, That debate on this question now close.

A party vote was called for on the question, That debate on this question now close.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

s tabled amendment inserting new clause 6 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Teanau Tuiono): The question is that the Hon Ginny Andersen’

Bill to be reported without amendment.

House resumed.

CHAIRPERSON (Teanau Tuiono): The committee has considered the Employment Relations (Trial Periods) Amendment Bill and reports it without amendment. I move, That the report be adopted.

Motion agreed to.

Report adopted.

ASSISTANT SPEAKER (Greg O’Connor): This bill is set down for third reading immediately.

Third Reading

Hon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): I move, That the Employment Relations (Trial Periods) Amendment Bill be now read a third time.

The Employment Relations (Trial Periods) Amendment Bill extends the availability of the 90-day trial periods to all employers, repealing the Government’s policy that restricted it to just small and medium sized businesses. Under the current law, only employers with fewer than 20 employees can have the option of a trial period for up to 90 days within their employment agreements, and this Government is extending that provision to all employers. That will make a huge difference because larger businesses employ around 72 percent of all employees.

This Government has inherited a very bleak economic outlook and it’s of utmost importance that we give businesses certainty and confidence for the new year so that both employees and employers can hit the new year with certainty about the labour market, but, more importantly, that employers have confidence to give a new employee a fair go. So we’re wasting no time in making sure that we have changed the law before Christmas so that both employers and employees can keep their heads above water.

It doesn’t matter to this Government whether an employer has two or 200 employees. Every new employee that’s taken on is taken on with risk. It takes time, it takes money, and it takes energy. There’s a lot of relationship building, and both people want that relationship to work. We want an employment environment where people are the right fit for the right job, and we believe, as a Government, that this law will allow for employers to take a chance on more employees.

Apart from the cost of the dismissal process, retaining an employee who is a poor fit is not just costly to the business in terms of the dismissal process, but costly in terms of the whole culture of that workplace. Any employee—just one person—can really have a detrimental impact on everybody in that employment process. So we’re wanting to make sure that when it comes to that workplace, that we’re not seeing companies be less productive than they could be because of a poorly fitting employee. That’s because the costs and risks associated with dismissal can lead to a labour market with fewer employment opportunities, especially for those trying to get a foot in the door.

This issue of 90-day trials for small and medium or larger sized companies has been well canvassed through Parliament through the history of this institution. But we have heard from businesses, time and time again, that expanding the availability of their 90-day trials is one of their top priorities. It will help lift unnecessary regulation. It will help business owners across the New Zealand economy, which will help more job opportunities for employers, which will help employees and help their families and help all of New Zealand.

This bill is intended to encourage employers to take on new staff by reducing risks in the hiring process. It’s not particularly the case where employees—sorry, it’s getting a bit late. This is particularly the case where employers are considering employing someone that does not tick all the boxes in terms of their skills and experience, but they might have the right attitude. So I commend this bill to the House.

Debate interrupted.

Personal Explanations

Oral Questions—Question No. 1 to Minister, 13 December

CHLÖE SWARBRICK (Green—Auckland Central): Point of order. I seek leave of the House to make a personal explanation regarding question time on Wednesday, 13 December.

ASSISTANT SPEAKER (Teanau Tuiono): Leave is sought for that purpose. Is there any objection? There is none.

CHLÖE SWARBRICK: During question time on Wednesday, 13 December, I made comments intended to challenge the content of the Prime Minister’s answer to oral question No. 1. I can understand how this statement could be interpreted to be a personal reflection against the Prime Minister. It was not my intention to make a personal reflection on the Prime Minister in this House, and to that effect I apologise to this House. I recognise that that should have happened at the time.

Bills

Employment Relations (Trial Periods) Amendment Bill

Third Reading

Debate resumed.

CAMILLA BELICH (Labour): Thank you, Mr Speaker. Well, here we are at 20 to 12 on the same day that this bill was brought to the House, under urgency, removing again—the second week in a row—fundamental rights of working people.

Hon Members: Shameful!

CAMILLA BELICH: It’s absolutely shameful of this Government to prioritise taking away rights to natural justice for the majority of New Zealand employees through this piece of legislation.

There’s been quite a few comments on where this new Government is going. One of the common themes has been backwards, and there isn’t a clearer example than in this particular bill. This particular bill that the Government intends to pass tonight, but maybe they won’t quite get there, is exactly the same as a bill that was passed in 2011—exactly the same. Where’s the vision? Where’s the learning? Where’s the looking at evidence to see if this policy actually works? Where’s the consideration of how New Zealand has changed in 2023? It’s absolutely nowhere to be found in this piece of legislation. There is no vision about how a 2023 labour market is different from the labour market in 2011. If you just think about the technological changes, if you just think about how the world has moved on, you will realise how ridiculous that is.

We talked a lot in this debate about red tape. That’s what we heard from the other side. The Minister just said in her short contribution—I note all of her contributions have been extremely short, because she has nothing good to say about this bill, because there isn’t anything good to say. She calls the natural justice rights of employees to ask their employer why they were dismissed, to ask to be treated fairly, to ask for natural justice—she calls that red tape. I think that’s shameful. The right and access to justice is not red tape; it is a human right, and a lot of these things which are repealed through trial periods are actually human rights as well.

She didn’t have a lot of answers to our questions. We asked a lot of questions in the committee of the whole House stage and we were left with nothing. I asked about the contradiction, which I wonder if her colleagues are aware of, where people on accredited employer work visas are not covered by trial periods, but New Zealanders working here already are covered by trial periods, effectively giving people on those visas more access to rights than people here. I wonder if she has explained those differentiations to her colleagues and I wonder whether they in fact support that.

We also asked her questions about the benefits system. Would people who are dismissed—and there will be, make no mistake, more people dismissed because of the law that this coalition Government is passing; more people dismissed and not told why. So would they be entitled to some kind of support? What do we expect to happen to these people? All employees in the whole country are now covered by trial periods. What do we expect when they lose their jobs? We were not given any answers. We were told she’s not responsible for that, so she doesn’t know. Is that good enough? I don’t personally think that’s good enough.

There is no evidence for this particular piece of legislation. The world has moved on. Just like the fair pay agreements legislation that we were discussing only last week, there seems to be no recognition from this coalition Government of actual studies and evidence about workplace legislation and how effective it is or not. And in this case it’s not effective.

I want to take a moment just to thank the officials who have worked here, who have been here until 11.30 at night; the staff in Parliament who have been here through to 11.30 at night—quarter to 12 now—helping Parliament to debate this under urgency for no reason. The Minister has not given us a reason as to why this needs to go through urgency, why it’s so important that it has to happen under urgency, and with no select committee process.

I have read, in the previous readings, points that people have wanted to raise if there was a select committee process, but they’ve been unable to do that, and I just say again that an electoral mandate does not justify bad lawmaking—an electoral mandate does not justify bad lawmaking. I have not heard a single argument on the other side to justify why you couldn’t have a select—Christopher Bishop said you were going to have one, and now we’re not having one. Why? Where are the answers to these important questions? We certainly didn’t get them from the Minister.

I thanked the officials, but I also want to thank them for their sage advice that has been included on the regulatory impact statement. I want to take a moment to read this important clause. This is the conclusion in the regulatory impact statement: “We therefore consider that there are diminishing benefits from increasing the availability of trial periods to larger employers (from 89 percent of employers under the status quo to 100 percent of employers) and that this would not outweigh the costs of insecurity to a greater number of employees.” That is right—that is 100 percent correct. This is not radical thinking; this is sage thinking based on evidence, and there is no evidence that extending these trial periods works. It’s a step backward and it will simply make people more insecure in their work.

I also want to mention something else that has been mentioned a lot in this debate but perhaps hasn’t been given the exact attention it deserves so far, and that’s the study that Motu Research did after they were commissioned by Treasury. They found that 90-day trial periods, in terms of their objectives, have little effect. So it’s not helping anyone to do this. In terms of the macro scale in New Zealand, there is no impact of 90-day trial periods.

We need to look at this research and we need to see what the research has found. The main researcher, Isabelle Sin, who’s done a huge amount of research into employer—

Arena Williams: She’s awesome.

CAMILLA BELICH: Yeah, she is awesome. She said, “My research shows that the 90-day trial period isn’t helping people get jobs.” It isn’t helping people get jobs. This is the justification we have been given for this bill, and the researcher who did an actual study into it says it doesn’t help people get jobs. So why are we extending it? Why? Why does this coalition Government hate working people? Why does the Government hate them? I don’t understand why you would extend a policy that doesn’t work. It doesn’t give more people jobs. That is what the research shows.

I’ll tell you what it does do. This particular bill, for individual people, will be devastating. And I want to spend a moment just talking about that, because a lot of people, especially on this side of the House—and I’m sure maybe on the other side of the House too; I don’t know—they come to this place to make a difference, and one of the main reasons that we want to do that is we want to make a difference to people who face injustice. My colleague Jan Tinetti gave the most convincing reason for that when she made a contribution in the committee of the whole House stage. She had had someone that she knew in her life who had been dismissed under a trial period and they had tragically taken their own life. It’s not a joke. It’s a real story. It’s tragic. Everyone in this House agrees with that, and I don’t pretend to think that anyone else would say anything else about that situation. The reason that we have to take these decisions so seriously is these are the type of impacts that can occur when we take away rights from people.

I have a previous career as an employment lawyer, and I saw how important jobs were to people. Jobs are part of self-esteem. They’re part of how you identify yourself, how you find your place in the world, who you are. For many people, their identity as a human being is tied to the work that they do. To make it possible and to extend a policy that just doesn’t work for the objectives that this Government wants it to achieve, so that more people are in the situation where they may lose their job for no good reason and have no recourse—it is just a terrible policy to be putting on New Zealanders.

Let me tell you, every member of this House should be aware that you will soon get stories about trial periods. More and more people will be using them and more and more New Zealanders will be coming to your office and saying, “I was treated unfairly, and for some reason I’m told that there’s nothing I can do.” That is an absolute travesty and it’s an absolute tragedy, and we’re all going to have to look hard at the Parliament that we’re in at the moment that is passing this regressive law and justify to them why they don’t have any recourse to challenge unfairness. That is going to be something that everyone in this House is going to have to address. I don’t look forward to it. I think it’s going to be a sad day.

So I think this is a terrible bill. I think it takes New Zealand backwards, and I do not commend it to the House.

RICARDO MENÉNDEZ MARCH (Green): Thank you, Mr Speaker. Ninety-day trials are hurting workers, and the extension of 90-day trials to larger businesses will hurt workers even more.

The previous speaker, Camilla Belich, was very generous in presenting to the Minister and to the members of the Government the evidence as to why 90-day trials have not resulted in higher wages, have not resulted in greater retention of workers, and have hurt people. I think it was very generous because it’s almost like we’re pretending the Minister doesn’t know. It’s almost like we’re insulting the Minister’s intelligence by assuming that she didn’t know any of this.

The Minister knows—she does not care. She came into Government to undermine workers’ rights. She came to Government to serve the interests of big businesses, and this bill is a statement of the Government’s intent to lower working conditions, to have a low-wage economy, and to put workers in a vulnerable position where employers are able to dismiss them at will in those first 90 days, without an ability to take that in a way that allows for justice.

Throughout the committee of the whole House debate, the Minister was unable to substantiate her arguments. She spoke in platitudes about how this will increase the flexibility in the labour market without actually speaking about the direct material outcomes that these workers will have as a result of this policy. The members opposite to me, all they could do, instead of taking calls in the speech, they just clap like seals to a nothing speech from the Minister.

Our communities deserve far more than a Government that is hell-bent on ramming through legislation that will hurt our workers—the same workers that serve them at the cafes, the same workers that serve them at the restaurants, the workers that serve the hotels when they travel around the country to do their mahi. But they do not care, because these members did not come to this Chamber to serve the workers; they came to serve the interests of businesses.

So, as we look forward, the Greens will continue fighting to put forward amendments to this legislation to expose the truth, which is: we gave the opportunity to the Minister to put in place reporting mechanisms. Because if the Minister was so confident that this bill would have resulted in better outcomes for workers, she would have not been afraid of having those reported. Because she claimed, and the members of the Government claimed that this Government was founded and was built to honour the facts and the evidence and the latest available research. But let’s face it: that is not a commitment that is being put into action, because the Minister could only speak in platitudes; could only speak in vague terms when she talked about the future work she may or may not do to ensure that there’s information gathering.

Chlöe Swarbrick: It’s all vibes.

RICARDO MENÉNDEZ MARCH: So it is all vibes, but it is more than just vibes: it’s cruel, neo-liberal, already-proven-to-not-be-true vibes, and our workers do not deserve this.

What we are creating is a condition where we’re not setting up young people to succeed. We’re not creating the conditions where those young people going into their first job are supported to succeed. We’re creating the conditions where young people going to their first job can be dismissed at will without any reason for them to even—if they had an issue that they genuinely had to resolve, we’re not going to give them the opportunity to genuinely give them that recourse. Something that we actually did try to negotiate with the Minister, but she wasn’t even willing to meet us in the middle. Because, again, she knows what she is doing. She knows that she came here to hurt workers’ interests, and throughout the committee of the whole House, she has proven all of that to be true.

Chlöe Swarbrick: Yes, she’s cruel.

RICARDO MENÉNDEZ MARCH: Yes, the Minister is cruel. The policies are cruel, and it is a bit of a change of tune, right? We had what we called the “politics of kindness”, and the Greens were always quite clear that the politics of kindness needed to be matched with changes into material realities. But this Government has done a full 180 and has now instilled the politics of cruelness and the politics of greed—and this bill, again, speaks to that.

I want to mihi to the workers who, as they change employment, will now be subjected to this policy. I want to assure those workers that the Green Party will be here to listen to the experiences of those workers who are now undergoing 90-day trials in larger businesses. I want to honour the contributions of countless workers who made submissions back when the 90-day trials were being clawed back, who made submissions to remind us that 90-day trials were not working.

We’ve already heard the voices of workers. The Minister is not interested in hearing the voices of workers. She thinks that she can justify poor policy making, poor lawmaking, poor process because it’s in the coalition agreement. But let me tell you what: there’s a reason why we have these processes. It’s so that we can’t hurt our communities through just going through the whim of a paper that was signed by three parties that all they want to do is serve the interests of businesses and the service of workers.

As I have this privilege of taking the last call of the night, I want to remind the members that as they go forward and debate these issues in relationship to the workers, they may want to consider adding some substance to their words. I listened very carefully to the contributions they made—and sure, some of them may have been in a rush to go back home to spend time with family over the holiday period, and some of them will get a holiday period with family and friends. But those workers who are now going to be subject to those policies, they’re going to be subjected to potentially feeling they’re going to have to work longer hours and be subjected to strenuous conditions over the Christmas break—and the summer period—particularly as this policy comes into place. Because if they don’t take these strenuous conditions, they could just be fired at will with no good reason.

One of the other things we tried to put as an amendment was the ability to make it clear that employers would have had to add justification, to add a reason at least that they were dismissing those workers in a 90-day trial. We thought that was a reasonable thing for the Minister to take up because, once again, if the Minister is so confident that when there’s not a good match, 90-day trials are a way to actually get rid of those workers that are not a good match, then there is nothing to hide. Those employers should give a reason to those workers, and she didn’t even want to compromise in that regard.

Those amendments were not for us to be happy with a middle position. They were there to expose the Minister’s intentions, but she was not interested in any of the evidence. This was not at all about reaching a sort of middle ground with the Minister: this was about showing the Minister her own true colours of greed, of her inability to see workers in the face. I hope that our workers confront the Minister throughout the term for her decisions; that they are able to tell her directly what impact this policy is having on them, because she clearly was not interested in hearing this through a select committee stage.

Look, I finally just want to pay tribute to our union movement, who—

Hon Member: Of course you do.

RICARDO MENÉNDEZ MARCH: And of course we do, because this side of the House supports our workers, Because that side of the House only wants to listen to the business interests. That side of the House, at no point in the debate talked about workers—the people who actually build their economy, the people who actually create the profits of the employers that talk about the people who are foundational to our society. The employers that the people on the Government’s side talk about should be reminded that without their workers, they are nothing—without their workers, they would have no profits. And they should be careful, because the more they undermine workers’ rights, the more they’re eroding social cohesion, and the more they’re creating a situation by eroding social cohesion, we’re continuing to have discontent.

They themselves are manufacturing a crisis of inequality by keeping wages low, by preventing working conditions from improving, and the next time they talk about their concerns about social cohesion—and I hear the next lot of National Party members making maiden speeches about their concerns about discrimination and racism and inequality—they need to remember that it was their parties who created the conditions for those things to happen.

The Green Party will continue fighting throughout the term against the politics of cruelty. All the snarky comments that this side may make can’t hide the fact that they have no substance to add to this bill. All they had to add to this bill was snark. It was baseless arguments, and yet they’re quite willing to put in the energy to go until midnight to add their pettiness to the debate instead of being able to put the facts into this place. The Green Party will fight this till the very, very bitter end.

ASSISTANT SPEAKER (Teanau Tuiono): Members, the House is suspended until 9 a.m. this morning. Haere ki te moe. Pō mārie.

Debate interrupted.

Sitting suspended from 12.01 midnight to 9 a.m. (Thursday)


TUESDAY, 19 DECEMBER 2023

(continued on 21 December 2023)

Bills

Employment Relations (Trial Periods) Amendment Bill

Third Reading

Debate resumed.

It’s great to be speaking on the Employment Relations (Trial Periods) Amendment Bill in its third reading. I want to make it clear that the 90-day trial already exists and what we’re seeking to ensure is that businesses can make use of it—all businesses. Much of what was raised by members opposite shows it’s clearly their intention to call into question the entire Act, not just the extension of this from small and medium businesses to all businesses.

KATIE NIMON (National—Napier):

Now is not the time to be debating the merits of the trial itself but simply the difference between large and small to medium sized businesses and its application. Had we not introduced the repeal bill, medium businesses, of which there are many, would be disproportionately affected. Medium business are businesses that are neither small nor large and don’t have the budget to have HR departments, as members opposite speak to, so why is it that they should be excluded? This extension bill includes medium business and large businesses and the extension of the 90-day trial is simply to include them, but members opposite are debating the purpose of the 90-day trial in its entirety. It is simply an extension.

So the importance of amending the legislation to extend it to all employers is great, but we are not required to discuss the importance of the 90-day trial itself. We wish to extend 90-day trials to all employers, not just small businesses, and that is what we are here to support. So, with that, I commend this bill to the House.

Hon MARK PATTERSON (Minister for Rural Communities): New Zealand First also rises to support extending the availability of 90-day trials. New Zealand First has always been in favour of these 90-day trials. We think they do add flexibility in the labour market. They do give employers the opportunity to take a punt on an employee that they may not be 100 percent sure on. It does give better opportunities.

What I did want to say, though—really, because this is something that I had something to do with in the last term in Parliament when we were in coalition with the Labour Party—is that we actually fought really hard to keep these 90-day trials for businesses with under 20 workers, which is the issue here at play. For those hearty souls that are watching this morning for the gripping finale of this debate, and had been watching, through to midnight last night, the protestations and the dire predictions and the desperate virtue signallings from the Labour Party, the 90-day trials already exist for businesses with fewer than 20 employees. The Labour Party had three years with an absolute majority to take these mechanisms out but absolutely refused to. So if they are such a travesty to the working New Zealander—those New Zealanders in bakeries and dairies and local cafes are already subject to this legislation or this mechanism. The other thing I would be really tempted to do is a few Official Information Act (OIA) requests.

Were the Green Party lobbying behind the scenes and protesting to their Labour colleagues who had an absolute majority, who they were in confidence and supply with? Were they appealing? Were they appealing? I hope they were—I hope they were. Because the record will show that they, within that governing arrangement, failed to convince their colleagues that this was a travesty and should be repealed. Te Pāti Māori, who, I’m sure, will get up and rail against this in the following speech—what did they do? Did they appeal? Is there OIAs there that would show that sort of course of action from Te Pāti Māori to suggest that they were so concerned about the 90-day trials that they would like to see them repealed.

So New Zealand First see this—and always has—as a very sensible mechanism and balance between employees and employers, and continues to support this bill. Thank you.

ASSISTANT SPEAKER (Greg O’Connor): A five-minute split call.

TĀKUTA FERRIS (Te Pāti Māori—Te Tai Tonga): Tēnā koe, kia ora. Tēnā tātou. E te Pīka, tēnā rā koe. Mātika ake nei au ki te whakaara i ngā kōrero a te iwi Māori mō tēnei o ngā pire i tēnei pānuitanga tuatoru ōna. Otirā ki ngā pire katoa kua panangia nei i roto i te wā iti, me tā rātou pānga ngau kino nei ki runga i te tuarā o te iwi Māori, tēnei rā te whakatairanga ake. Nō reira ka tau hā, whakatau ko te rangi e tū iho nei. Ka tau hā, whakatau ko te papa e takoto ake nei.

[Yes, thank you Mr Speaker. Greetings, hello. Greetings to all of us. Mr Speaker, thank you. I rise to heighten the opinions of the Māori people about this bill in its third reading. Indeed about all the bills that have been pushed through in a short time, and their impacts that very adversely affect the Māori people, those that are being elevated here. So welcome, welcome the sky that stands above. Welcome, welcome the land that lies here.]

As usual, it is te ao Māori, the Māori people, the tangata whenua of this land, our Pasifika whanaunga, our rangatahi, our whānau hauā who will bear the brunt of this Government’s anti-whānau, anti - Te Tiriti o Waitangi policies and policy-making procedures.

Helen White: Point of order, Mr Speaker. We can’t hear anything and I don’t think there’s a translator, and I am actually very keen to hear the whole speech. So I wondered if there could be an extra time given, and perhaps the speaker given the option of telling us what he said so that we are able to listen.

ASSISTANT SPEAKER (Greg O’Connor): All right, we’ll add a minute on, and if the speaker is happy to do his own translation of that, that’s at his own discretion. Are you happy to do that? We’ll add a minute on.

TĀKUTA FERRIS: Tēnā tātou. The opening was just as most everyone’s opening was, just a formal way to introduce this kōrero to the Whare.

So kia hoki anō au ki ngā kōrero nei e mea ana. This Government is continuing the age-old colonial practice of treating tangata whenua as second-class citizens in our own country; akin to the treatment that our koroua who went and fought in the Second World War, in Te Hokowhitu a Tū, received when they returned to Aotearoa.

This policy, unequivocally, will make life worse for Māori and anyone else who doesn’t conform to the general stream, the tikanga Pākehā stream, in Aotearoa. It will allow employers to fire their workers with absolute impunity, treating people as products that can be discarded and repurchased every 90 days merely to cut the costs of providing secure employment such as annual leave, training, redundancy. We all know this to be true. It’s clear to me that this side of the Whare has no capacity and, more alarmingly, no will to apply any form of Tiriti analysis across their party’s policies. It’s also glaringly obvious that they have no evidence base of the historical impacts and ramifications of policies like this one on to iwi Māori—and there has been decades of experience to demonstrate it—showing a blatant disregard of the Government’s obligation to provide active protection in all areas, including economic activity, for their Tiriti partner. No regard for mana ōrite in the living standards of whānau.

The fact that they are willing and indeed eager to push this bill through, and many others, in the last two weeks without any consideration or regard to their Tiriti partner—in 2023, 48 years after the establishment of the Waitangi Tribunal, whose aspiration was to right the societal imbalance between the partners—is, quite frankly, unacceptable. It’s unacceptable, and I’m 100 percent sure that the recoil from te ao Māori will be swift, it will be determined, and it will be on a scale that Aotearoa has never seen before. And my advice to this side of the Whare—

Carl Bates: Fearmongering.

TĀKUTA FERRIS: My advice to you, e hoa, is to be sure that you’re here when they arrive and that you’re ready to stand up and explain yourself, and I hope that before that time happens, the Government have acquired a clear understanding of what their role and responsibility to Te Tiriti o Waitangi is, what their role and responsibility to the Crown’s Tiriti partner is, and are capable and happy to articulate it, because to be here at this early stage of the game, so willing to show no regard to consult, no commitment to evidence—Māori evidence, any evidence base—no capacity to apply any Tiriti-based analysis across these policies, if this is their starting point, then it’s going to be a long three years indeed for them.

Nō reira ka hoki atu ahau ki te whakapūrua i te moko o Te Pāti Māori e mea nei, e mea ake ana ki a koutou: mā te iwi anō te iwi Māori e whakaora. Kua roa ia e tahuri kanohi mai ki tēnei o ngā Whare me te whakawhiwhi ki ngā hua, kore, kore, rawa kore. Kore rawa atu! Tēnei o ngā Whare me ōna māngai kīhai i āhei ki te whakahua i te kupu Māori tika, ki te kawe i te reo Māori kia tika, ki te hiki ake i te hoka taringa kia whakarongo ki ngā kōrero Māori ka tae ki tēnei Whare. Me taku mōhio, me te whakahau ki a koutou, ka ākina ō koutou taringa ki te reo Māori ao te pō, pō te ao, toru tau, pau te kaha.

[So I will return to emphasise what Te Pāti Māori is saying, saying to all of you: the Māori people will restore the Māori people to health. For a long time, they have been turning their faces to this House to receive some benefit, nothing, nothing, destitution. Absolutely nothing! This House and its representatives that have not the ability to correctly pronounce Māori words, to accurately convey the Māori language, to raise the earpiece to listen to the Māori statements that come to this House. And I realise, and I urge you, your ears will continue to be assaulted by the Māori language all day, all night, for three years, to the limits of my strength.]

Nō reira, I reiterate: Te Pāti Māori vehemently reject and oppose this bill, this anti-worker, anti-whānau, anti-mokopuna, anti - Te Tiriti o Waitangi bill. Tēnā tātou.

FA’ANĀNĀ EFESO COLLINS (Green): Malo le soifua manuia i lau afioga le Taʻitaʻi fono. Greetings, Mr Speaker. I’m really excited this morning, not about this bill but definitely about this being my first contribution to the House. I can see that my friends over the hall there are very excited too, so I’m going to enjoy the next five minutes. Sir, congratulations to you, again, for being reappointed to your role in the Speaker’s Chair.

Today I think we begin the journey to nowhere. This being my first contribution to the House, I was thinking, “I’m so excited about speaking to the House.” I came here thinking, “Wow, I’m standing for Te Pāti Kākāriki because we can make a difference. We’re going to stand up for workers, we’re going to stand up for businesses too.”, but what have we got? What have we got? We’ve got the reintroduction of these 90-day bills that do nothing for our young people, that take away the aspirations of our young people.

These are the people who went out and said, “We’re about aspirations; we’re about a future.” A few years ago, they were talking about a brighter future, and look at where they’ve got us. Absolutely nowhere. Today, we’re back in the same spot where we’re telling our young people there is no future because you’re always going to be on trial. This sounds like your corrections policy.

You see, what we’ve got to do is stand up for our young people. I used to work at the University of Auckland. We used to say it was New Zealand’s premier university, great university, and where we graduated with my friends here, sitting to my left—to my left; hear the beauty of that; to my left. One of the things we used to do—my role was to go out into predominantly low-decile schools and encourage young people to think about the world of work, that beyond school they’d be able to go to work and earn money and support their families, eh? But now they’re always going to be, according to the Minister, who spoke last night and said, “Well, they might not tick all the boxes.” Oh my goodness, imagine—imagine—ticking nine of the 10 boxes and then after 90 days they say, “Na, na, na, get out. We want someone with the 10th.” Goodness gracious me! What kind of theory is that? That’s not going to help anybody. This is giving our young people, our future, absolutely no assurance whatsoever that there is a future for them in work. You’re not giving us the brighter future; this is dark and dim and harsh and horrible.

I encourage you to look in the mirror. [Interruption] I know you’re getting excited. I know you’re getting excited. So am I, because your contributions are not adding to the future of our young people. In fact, you’re stealing our future. The Grinch of Christmas has arrived, eh? The Grinch of Christmas has arrived, and they’re all looking at me now thinking, “If only I chose to stand for the Green Party”, rather than where you are today, taking away our hope. Let’s see what Ministry of Business, Innovation and Employment (MBIE) had to say, because you’re so driven by evidence! I can see it; I can see it right now: you’re driven by evidence! Let’s see what MBIE says. “We consider that the main impacts”—and we’ve heard this before, so I’ve got to reiterate it, because I don’t think people are hearing; I don’t think people are really opening their minds to this discussion.

So I’m going to invite you just to pause for a moment. Open your minds. Open your hearts to the young people you’re telling today that there’s no future and work for them. “We consider,” says MBIE, “that the main impacts of the 90-day trial policy are perceived insecurity for employees who are on a trial period and reduced costs for employers that choose to dismiss”—they choose to dismiss—“an employee on a trial period.” Is this the future you want? Shame! “We consider”, says MBIE—this is the department you’re about to gut—“We consider”—

ASSISTANT SPEAKER (Greg O’Connor): Mr Collins. Very liberal use of the word “you”. You are speaking through the Chair and through the Chair to whoever you are addressing.

FA’ANĀNĀ EFESO COLLINS: My friends opposing me, consider this: “We consider”, say MBIE—and I apologise for that, Mr Speaker—“that smaller employers are more likely to benefit from trial periods because they are less able to absorb the costs of a poor match or dismissal. In comparison, larger employers can be … equipped to manage any dismissal processes and absorb [those] costs. We consider that the option to extend trial periods to employers with fewer than 100 employees may lead to greater uncertainty than … other options.” This is deplorable. It’s deplorable because we’re taking away people’s ability to be able to negotiate and say, “This is what I want.” Instead, what we’re going to do is create fear, and that’s not the future that we want, so I do not commend this, because it is nothing but hopeless and poor and terribly thought through. Thank you, Mr Speaker.

CARL BATES (National—Whanganui): This is a great Christmas. We go into Christmas this year with a Government that is for all New Zealanders—employers and employees—a Government that believes in providing opportunities for businesses to grow and create economic growth, to have the confidence that it is the right time to take on another an employee, and to employees to put their best foot forward.

I look forward to seeing the success and the opportunities provided to both employers and employees at both the Whanganui Regional Business Awards in 2024 and at the 2025 Te Manu Atatū Maōri Business Awards, because this bill supports both, and I commend this bill, the Employment Relations (Trial Periods) Amendment Bill to the House.

Hon WILLIE JACKSON (Labour): On the first day of Christmas, the far-right race-baiting Government gave to me a kick in the guts to the workers. We’re making union-busting bosses jolly. They are a disgrace—they are a disgrace. It was lovely to hear Efeso Collins—beautiful. We had high hopes for him but he swapped sides, but kei te pai. We had high hopes for him.

The question’s got to be asked today: what was the price here? What was the price in terms of this legislation? Well, let’s kill 5,000 more people a year in terms of the smoke-free legislation. That stands out.

Hon Dr Duncan Webb: Surprise, surprise!

Hon WILLIE JACKSON: No, that’s a fact. Dr Duncan Webb knows. We’ll kill 5,000 more people to keep our rich mates happy so we can give our rich mates their tax cuts, yes. That is the price in terms of this legislation. Oh, and we’ll beat the Māoris. We’ll kick all the Māoris out, but we’ve got two or three with us so—

ASSISTANT SPEAKER (Greg O’Connor): Mr Jackson, if you’re going to be provocative, be provocative on the bill we’re talking about.

Hon WILLIE JACKSON: Thank you, Mr Speaker, but it’s all related, Mr Speaker. This anti-worker agenda has already been tried by National and ACT—already been tried with their 90-day trials. And the research from 2016 commissioned by Treasury clearly states—we’ve said this several times—that there’s no evidence that the ability to use trial periods significantly increases firms’ overall hiring and no evidence that the policy increased the probability that a new hire by a firm was a disadvantaged job seeker.

There you go. How many times has our great spokesperson Camilla Belich said this? How many times do you have to get it through their thick heads? I say that with all respect, of course. What did the Treasury commissioned research find? No evidence that the ability to use trial periods significantly increases firms’ overall hiring. Adding to that, the Treasury commissioned research into National and ACT’s previous 90-day trials concluded that the main benefit of the 90-day trial policy was a decrease in dismissal costs for firms while many employees faced increased uncertainty about their job security for three months after being hired.

So this law is not about helping workers; it’s about helping big business exploit those workers. That’s what this is about. These are the friends of the National Party. These are the friends of the ACT Party. They want to just placate them, look after them, and, sadly, so many of these people have forgotten their roots. I look across at the Māori members; they’re a disgrace to Māoridom—there’s no doubt about it. They sit there. They will be too scared to go back to their tribes this Christmas. They will be too scared because their tribes will tell them to get lost, like they said to David Seymour. He’s been kicked out. OK, I’ll come back to the bill—OK, Mr Speaker.

So the employment law that this new far-right race-baiting Government are ramming through under urgency, with no public submissions, helps abuse workers for the benefit of bad bosses. We are open to small business under 19 workers having this option, but giant companies will only exploit this law and use it to intimidate and bully workers so that they can pay their fees to the National Party. This is a fact. This is an undeniable fact. The members are always right. FIRST Union general secretary Dennis Maga knows this legislation—good man; good union fighter—will drive wages down and increase unemployment and underemployment. Dennis says putting an extreme libertarian ACT Minister—this is what he said. Have a listen. I’m glad you’re listening. He said that putting an extreme libertarian ACT Minister in charge of workplace relations and safety is like putting a vampire in charge of a country’s emergency blood supply, which is very unfair, of course, because it suggests Minister Brooke van Velden has a heart, and this law-bashing law is clearly the work of a heartless person.

Todd Stephenson: That’s unparliamentary, mate.

Hon WILLIE JACKSON: Ah, shush up, you ACT idiots. OK, this isn’t employment law; it’s extremism—the extremism of the ACT Party, the extremism of New Zealand First, and, sadly, the deterioration and extremism of a National Party who have betrayed their people and succumbed to David Seymour and Winston Peters.

It’s telling that this new legislation, this new far-right race-baiting Government’s attempt, is actually going to hurt ordinary people, going to hurt workers. Enabling bad bosses to cause injustice doesn’t build up a country; it tears it down.

That’s why I’m sad, like good National people like Jim Bolger, who found his roots and principles with the Labour Party; Jenny Shipley, who joins us at Waitangi every year. They’re embarrassed by this lot on the other side.

Cameron Brewer: Rubbish!

Hon WILLIE JACKSON: No, no, they are. You need to ring Jenny up. Well, I don’t know if she told me this but I know she’s going to tell me this one day.

Labour, the Greens, Te Pāti Māori, we all look after the many. See, we’re all in coalition now, collaboration. Even the Māori Party says some nice things about us sometimes, you know. We’re here to look after the few and not the many. But here’s the point, the moment a Labour-led Government is returned in 2026, we will change this law—we will change this law. Oh, that’s right. Winston will have a meltdown by then. I say again, many Kiwis are shocked by the extremism of this new Government, and this ongoing attack on workers’ rights will not go unchallenged. This is just the start. We’re just being all nice now.

But, listen, you wait till workers and Māori hit the streets. Voters supposedly wanted stability in the form of a National, ACT, and New Zealand First Government. But what they’re getting is an extremist agenda in terms of bashing workers, renters, beneficiaries, the environment, and the Māori nation. This isn’t a Government; it’s a right-wing revenge fantasy. National are eroding workers’ rights and this policy is focused on benefiting employers rather than employees, giving them more power over our average worker. It’s another example of this new Government’s aversion to evidence-based policy, which has been well traversed particularly by our legal team over here, led by Camilla Belich over here, Helen White, Rachel, Arena Williams. They’ve been so articulate in terms of making it clear. Are we interested in evidence-based policy or do we just create policy for our rich mates in the ACT Party, New Zealand First, and National?

That’s what this is about. During a cost of living crisis, workers need more protections and better job security, not less. This policy will reduce workers’ sense of job security. This exacerbates the inherent imbalance of power in the employment relationship and makes it harder for workers to secure wages. Together with the Government’s other employment relations reform, this will depress wages and keep New Zealanders locked into low wages. It does nothing to help workers with the cost of living, which is something this other lot has been waffling on about over the last year or two.

Lower job security will particularly impact Māori, women, Pasifika, workers. It just goes on and on. Along with the fair pay changes, it’s one of the worst pieces of legislation that’s ever hit our community. It focuses on benefiting employers and the rich mates of the National Party. The sad thing is, given that New Zealand already has one of the most relaxed sets of labour laws in the developed world, 90-day trials will put Kiwi workers at another serious disadvantage.

Mr Speaker, I could go on and on, of course, as you well know, but in this last 30 seconds I want to wish everybody a merry Christmas and a happy New Year. You know, even though it’s been a terrible last couple of weeks from the evil Government, I do want to wish them and their whānau all the very best. This is what it’s all about. We get up, we contest, we want to, you know, strangle each other, and then we ended up having a beer with some of them last night. So I want to say to them, ngā mihi ki a koutou. Meri Kirihimete me ngā mihi o te Tau Hou ki a tātou katoa. Kia ora.

MIKE BUTTERICK (National—Wairarapa): Thank you, Mr Speaker. You could only but speculate about what they’ve had for breakfast over on the other side of the House there this morning. Perhaps I could actually return to speaking about the Employment Relations (Trial Periods) Amendment Bill. I reiterate that this bill is about creating opportunities—opportunities for both employers and employees, including those that have or have had challenges—providing an opportunity for employment; an opportunity to have purpose; an opportunity for those that may not have the skills, may not have the experience, but want to be given the chance to learn. This bill provides exactly that. Therefore, I’m pleased to support this bill.

RACHEL BOYACK (Labour—Nelson): Thank you, Mr Speaker. I appreciate the opportunity to take a short call on what is a terrible piece of legislation, the Employment Relations (Trial Periods) Amendment Bill. Not only is it a terrible piece of legislation but it is terrible that we are considering this under urgency and without the scrutiny of a select committee.

During the committee stage last night, there were a significant number of questions, many of which were very relevant, particularly those raised by me and my colleague Camilla Belich about the process around an unfair dismissal. I have a prediction, which is that employers will go ahead and use these 90-day trials just like they did the last time it was available to all employers, and they will get it wrong. They will get that process wrong. It’s quite interesting because they’re heckling over there and saying, “Oh, that’s what they’ll say.” It’s actually what happened last time under the exact same law. So just go and look at the Employment Relations Authority decisions website and you’ll find all the examples.

So I predict that we will see employers use it. They will get it wrong, and they will ultimately pay a price. And the winners, with apologies to colleagues on both sides of the House, in all of this will be lawyers. The winners will be lawyers because employers will get it wrong, people will take a case, and we will end up in the same situation we were in last time. It’s all to do with the fact that we didn’t take the proper amount of time to have a scrutiny period through a select committee process.

In many of the contributions we made, we came back to the real impact that this law has on real working people, and I want to reflect on the contribution made by my colleague Jan Tinetti, which was a far worse example than the example I used from my family member. But I will bring that back again, because my family member was dismissed under a 90-day trial. It happened in the most humiliating of circumstances. He was on day 88 or 89. He had had no issues raised with him. He was taken into the middle of a busy cafe and told to take his knives and leave. He was in his early 20s. That had a real issue.

We talk about mental health a lot in this House and in this country. He ended up in a significant mental health state for a long time—years. The big issue for him in that situation was we had people suggesting that people should just ask their employer why they were sacked, but people fundamentally do not understand the power imbalance in the employment relationship. It just goes to show that people have not actually put themselves in the shoes of other people.

It was always very interesting—and there are going to be heckles, but whatever—when I worked for a union that one of the things that new managers in supermarkets would often say to me is, “Why did that person not come and talk to me about this thing they were concerned about?” But the very title “manager” meant that a 19-year-old was actually scared of that person. They were scared of that person with the title “manager” who was in their 40s or 50s. We have to take ourselves back to when we were kids and we thought, “Oh, my goodness!” Going to the manager to raise an issue freaked the heck out of me—I mean, my father was a chief executive, and he used to freak the heck out of me when I worked for him briefly. We need to think about these things. There is, as I said in the House last night, in the object of the Act, not a perceived but a very real inherent power imbalance.

I believe that this law is inconsistent with the object of the Act, and I’d actually love to see someone take a case on that matter. It would be very interesting to see if they actually said this law is inconsistent with the object of the Act, because there is no process involved.

Another prediction that was made last night, which I thought was a very good prediction, is that electorate MPs are going to have people coming in who’ve been sacked under these situations, and I as an electorate MP had a number of people come to me about employment matters. It’s a regular type of constituency issue that you’re faced with. So I’ll be very interested to hear what electorate MPs will do when someone comes in and says, “On day 89, I was sacked. I’d been turning up to work on time. I was sacked, and the next day they went and hired someone else because they didn’t want to continue”—

Carl Bates: I’ll meet with them, I’ll engage them—I’ll do my job.

RACHEL BOYACK: Well, good. I hope you’ll help them, and I hope that you’ll properly consider repealing this terrible law that will harm New Zealand workers—our most vulnerable workers—and I do not commend this bill to the House.

CATHERINE WEDD (National—Tukituki): I support this bill, the Employment Relations (Trial Periods) Amendment Bill, because this bill does support the workers. The other side of the House talks a lot about the workers, but this bill supports businesses and workers, and I’ll give you an example. I’m the MP for Tukituki. In Tukituki, we are the powerhouse of New Zealand horticulture. Horticulture provides thousands and thousands of jobs, thousands and thousands of opportunities, and this bill is an opportunity to not only grow our economy; it creates opportunities for workers. It is a win-win, and we believe it supports the workers and businesses. I commend this bill to the House.

HELEN WHITE (Labour—Mt Albert): Thank you, Mr Speaker. I too was an employment lawyer for 25 years and I would agree with my colleague that what you’ll see out of this is actually a real issue of disconnect between the object of the principal Act, which recognises the inherent inequality of power between an employer and employee, and the law that is about to be passed in this country, the Employment Relations (Trial Periods) Amendment Bill.

Now, I was listening to a woman recently called Claudia Goldin—she won the Nobel Prize for her work on the pay gap—and it was a very interesting discussion. I’d urge you to look at that work if you really want to work on bettering the lot of New Zealanders. I’d love it if the Government MPs would actually look at that work, because it’s science based. It’s all based on her work as an economist. She has looked at the things that make a difference in people’s lives, and she’s done it quite dispassionately. She said that there was a difference between people who look at the world as historians and people who look at it as economists. I did a history degree, and so I look at the problem before us and the piece of legislation before us partly through a historic lens. The reason she says that that’s different is she says the economists look at things in terms of markets and that the historians look at things in terms of power imbalance, which is interesting because it comes up in this situation. So I look at the world differently from many people in this room who would look at it in the market view. But the issue with markets, which is effectively systems, is that this doesn’t really hold up under either form of scrutiny, in my opinion, and I want to explain why.

The historic lens that I take to this is that I’ve always been aware that there are major issues with power imbalance, and I can see that in the work I’ve done as an employment lawyer. Really, in the early days, I was involved just as we had awards, etc., and we had some form of collective representation. Then the world changed and we ended up in the Employment Contracts Act, where that was stripped away completely and people were treated in an atomised way. I worked under that and I found it really, really hard, because in these situations where you put somebody into a position where they have very little power, it’s a very sunless world.

We changed to an Act which recognised for the first time that power imbalance. That was the Employment Relations Act, with part of that Act about objectives there fair and square before us, holding us to account in terms of making sure that the things we did around employment—because employment is so important to the bread and butter of people’s lives—were fair, were actually reasonable, and took into account the nature of human beings, which is that there are power imbalances.

I saw a change to trials for groups under 20, and I thought, “OK, I can live with this.”, because what you’ve got in that situation is smaller employers who also are in a situation of less power than the big businesses. But this is a change that is all about giving the powerful more power. That’s what, effectively, the Government are doing today, taking our biggest entities, taking our big powerful institutions, and making them bigger. And we’re making the workers who work in those situations, who’ve just begun their employment, much smaller and more vulnerable. That is what we are doing today.

I want to explain how that works at a human level. I gave an example earlier in my speeches, and I want to give you another one. Take a childcare worker. Take a childcare worker living in Mount Albert who has her kid at Kōwhai Intermediate, another one at Mount Albert Grammar, who’s looking to this Government for a little bit of relief. They’re renting and they’re not earning a great deal of money. They might be earning $70,000; that’s not unreasonable. This Government promised them an easier run. It promised them in tough times they would get a tax cut and they would be better off. What they face instead is a situation where if they’re working for a childcare company and now they move across to one of the big corporate childcare companies, they’re likely to go on a trial.

Now, we know that women’s pay has been below men’s and we know it’s been that way for a while. Surely a Government would try and make it better. But that woman’s going to be hesitant to move, isn’t she? Because she’s now got further cost of living increases because her kids can’t go into childcare. If she’s got an under-2-year-old, she’s not going to get it. She’s not going to get that free childcare subsidy and she’s not going to get all the half-price transport, which would have been possible for her children at Kōwhai and at Mount Albert Grammar. That’s gone and instead she’s got a decision to make: does she move to that job that pays a little bit more at the big corporate childcare centre? Does she do it? Because if she does it, she’ll be put on a trial period.

Now, I asked the Minister yesterday whether—as a thought she had had—perhaps we should make sure that such people are not constrained at the other end of the trial period by something called a restraint of trade—something I’ve seen a lot. I’ve seen it a lot with low-paid workers and I know it happens, because the evidence tells us it happens, and it happens to childcare workers. It happens to people like that. They can’t just go and work down the road if they start with one of the big childcare companies because they’re restrained.

I asked the Minister to consider an amendment on that, but no. No, no; apparently that’s an entirely different thing and doesn’t count. If we had been in a select committee process, I would have raised that, as would other people, and we would have ended up in a situation where perhaps we would have ended up with a little bit more balance. But there is no balance here, because now this woman will be in a position where she has to decide: does she go to the new job at $5 extra, which will feed her kids and pay for the bus fare and maybe pay for the childcare of her 2-year-old? Will she do that or will she not take that opportunity for career advancement? Will she stay where she is on less money, because that’s what she’s got to do, isn’t it? She is not—let’s bust this myth once for all—somebody who will be frightening to an employer and they’ll have to take a chance. But is it possible they’ll put her on the trial? Absolutely, it’s possible. She will be put in the most precarious situation possible.

Now, if something goes wrong in that time—and I raise the issue of maybe her kids getting sick. We know how important it is to the community that people feel secure enough that they’re not going to get sacked if their kids are sick. But say she has a run of bad luck and those children get sick and she ends up in a situation with her employer who is concerned. They’re not going to tell her. What they’re going to do is what human nature does. People in power, they don’t engage in that situation. They tend to withdraw. They tend not to tell the childcare worker who is in that situation. They tend to just disengage. So she spends three months sweating it, three months worrying about it, and at the end of it, just before the three months are up—because you take your time if you’ve got the power on your side, don’t you, and you do it when it suits you—she’s going to get terminated from her employment. Who is going to end up paying the bill? Because she’ll be without work, and that’ll be next Christmas, won’t it? Thank you for that; happy Christmas!

At that stage, she will end up going to—guess who? To the very people that you’re punishing people for going there. She will end up on a benefit. Guess who pays those benefits? We do. And guess who will be getting the profit from the switch in staff? The big Kindercare or the big organisation that sacked her. They will be pocketing the money. That money won’t be with New Zealanders. That money will be—sure as eggs—overseas. And guess who will have paid for it? The mugs in the Government will have made the taxpayer pay for it.

We can talk about competition, we can talk about competence, but if we do not scrutinise, if we do not scrutinise new law, if we do not put our thinking caps on, if we do not read the latest, people, if we do not take advice—we are just arrogant and soulless if we do that. And if we do that, we will end up in deep trouble in this country. We will end up with people who hurt. We will end up with people who are powerless and disengaged. Do you know where this starts? With a lack of capacity to empathise. There were some disturbing signs on the other side that some people think that this would never happen to them. Well, it will happen to your children. I do not commend this bill to the House.

GRANT McCALLUM (National—Northland): Well, it’s a great privilege here to take the last call on this great bill, the Employment Relations (Trial Periods) Amendment Bill, which has given a great Christmas present to all the business owners of New Zealand, where finally now they are going to have the opportunity to have great relationships with all their employees. One of the things that’s really frustrated me as I’ve been sitting here listening to the other side of the House is they demonise employers like we’re the devil incarnate. Well, actually good employers build good businesses and they build them because they employ good people and they look after them.

I’m very fortunate to be in a position here to be representing the people of Northland. One of the reasons I can do that is because I’ve got some very good staff that look after me and do a great job looking after my business and building the economy of this country, and that’s what enabled me to do this job, and I look forward to doing it. I commend this bill to the House. Thank you.

A party vote was called for on the question, That the Employment Relations (Trial Periods) Amendment Bill be now read a third time.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

Bill read a third time.

Bills

Taxation Principles Reporting Act Repeal Bill

First Reading

Hon SIMON WATTS (Minister of Revenue): I present a legislative statement on the Taxation Principles Reporting Act Repeal Bill.

ASSISTANT SPEAKER (Greg O’Connor): That legislative statement is published under the authority of the House and can be found on the Parliament website.

Hon SIMON WATTS: I move, That the Taxation Principles Reporting Act Repeal Bill be now read a first time.

The bill that we are considering today has one simple purpose: to repeal the Taxation Principles Reporting Act 2023. The Act it repeals is not an ordinary taxation Act. It imposes no taxes, nor does it remove taxes. It neither makes the tax system fairer nor less fair. What it does do is require the Commissioner of Inland Revenue to commit resources to this make-work programme dreamed up by the former Government. In New Zealand we have a long history of a low rate - broad based tax system, and it is fitting that we have principles when it comes to tax that have never been in contention.

As the Minister of Revenue, I’ve signalled very clearly the principles this Government holds when it comes to tax. We want a tax system to be efficient and we want it to be effective. We want it to be focused on simplicity and compliance—making sure people pay their taxes they owe, cracking down on evasion, and making it easy to navigate the system and reduce complexity to reduce cost. We also think that Kiwis should be paying less tax, and I’m proud to say that on this side of the House we will deliver tax relief.

This Act has fundamental flaws beyond the lack of justification for which it was ever passed into law. Firstly, it is the right of an elected Government to devise, shape, and implement its tax objectives, such as those that I’ve just articulated. An elected Government should not have those ambitions hobbled by the views of an earlier Government on what constitutes a fair tax system—especially a Labour Government.

This Act paints a picture of the previous Government’s view on taxation using tax principles that it dreamed up. Yes, we all want and should strive for a fair tax system. But what is not fair is one view of fairness to crowd out the views of others. That is what this Act does. To be a valuable enduring—these principles, as they are described, need to be universally accepted by tax experts, the public, and across the political spectrum. In this Act, they are not.

In the various pieces of feedback the previous Government received when they passed this into law, there was a clear objection to the idea that the principles defined in the Act are widely understood or accepted, especially by those people who deal with this on a daily basis. Even the Treasury—even the Treasury—said it could present a risk to the integrity, and I quote, “independence, and endurance of the reporting framework.”

As I said earlier, this legislation does not make the tax system fairer, however one describes that. It merely describes what a fairness is according to the previous Government. It also does not make tax or change tax settings, or make anyone pay more or less tax, but it does set the foundation for more taxation, particularly regarding wealth taxes. But what it does do is it requires Inland Revenue to report on the performance of the tax system against these principles. There has been never any justification for why resources should be used to chase down information simply to make a point in regard to the previous Government instead of it being focused on core taxation services.

It might be somewhat confusing there, why such a bill, which makes no changes to taxation and merely adds redundant reporting, was passed into law in the first place. To answer that question, one only has to look at the Government that produced it. One whose wasteful spending drove an insatiable desire to squeeze every last cent out of the back pockets of hard-working Kiwis. This was a Government that worked behind the scenes on wealth taxes and job taxes, and the door is open again—not more than a few weeks after falling out of power, Labour is already back on the “tax the people more train”.

Revenue spokesperson Dr Deborah Russell said it might be time to “seriously look at capital gains”. Clearly, she has forgotten that her leader has tried to rule that out, or maybe there has been some information—

ASSISTANT SPEAKER (Greg O’Connor): Mr Watts, this is a legislative statement. First reading—you’re introducing a bill. You are straying away from what the convention is on that. Can I just remind you.

Hon SIMON WATTS: Thank you very much, Mr Speaker. The Inland Revenue is a highly respected department with a strong history of managing highly complicated policy and operational areas. This Government, through the legislation that we’re placing on the Table today, will ensure that they are focused on ensuring they have the tools to make our tax system more straightforward, efficient, and better overall. We should not be wasting their time putting together reports on the last Government’s ideas of tax principles.

This bill repeals a bill that has no place in law, and it is right to consign it to the history as another example of unnecessary bureaucracy. Its repeal cannot come soon enough, and I won’t be using any more of the House’s time to discuss it. I commend the Taxation Principles Reporting Act Repeal Bill to the House.

ASSISTANT SPEAKER (Greg O’Connor): The question is that the motion be agreed to.

Hon Dr DEBORAH RUSSELL (Labour): So much to say; so little time. It’s a little hard to know where to start with that speech from the Minister of Revenue, but where I want to start is with the idea that in actual fact, this bill, repealing the Taxation Principles Reporting Act, does away with an incredibly valuable piece of information that we need in New Zealand’s democracy.

I want to put the idea out there that, as Mr Watts said, this bill does not collect more tax. It does not change how our tax is calculated in any way. But what the Taxation Principles Reporting Act does is it gives us information about our tax system. It tells us how well our tax system is doing. Now, that’s incredibly important in a democracy. Every three years we vote—that’s part of our democracy. We spend time lobbying the Government, we spend time making presentations to select committees, we spend time on petitions and on demonstrations, we engage in our governance on all sorts of levels. That’s our democracy. It’s a complex and multifaceted beast.

But one thing that makes our democracy function better is information so that people have a good understanding of the issues in play. Now, here’s the problem: tax makes up half the Budget. It’s an incredibly important part of our annual Budget process. It’s something that people need to understand. It’s something that people need to have good information about. Yet most people find it quite mysterious, and it’s actually hard to find information about our tax system.

Now, Mr Watts asserted that this was redundant reporting, suggesting that we could get all the information that the Taxation Principles Reporting Act would give us elsewhere. But I’m going to challenge him on that during the committee stage of the debate to find out where else we could get this information.

But I also want to talk about two other things that that Mr Watts said. He said that New Zealand has a broad based - low-rate tax system. It certainly has a low-rate tax system. Tax as a proportion of GDP is lower than OECD averages, but it does not have a broad-based system. It has big gaps in our tax system, and that’s something we do need to address.

There was something else that he asserted. He asserted that what the Taxation Principles Reporting Act does was ask Inland Revenue to report against principles that had been, and I quote him, “Tax principles that it dreamed up.”—tax principles that were just made up out of nowhere. That’s a canard. It’s just completely false. These tax principles have a long, long history, and I’ve brought to the House my trusty copy of Adam Smith’s The Wealth of Nations from 1776—my well-thumbed and well-read copy of this really important work. Sitting in this incredibly important early work of economics and political theory are what are referred to as the four canons of taxation. So now we refer to them as the four main principles of taxation, and what they give us is how to assess a tax system.

Way back in 1776, Adam Smith set out four principles of taxation: fairness, certainty, convenience, efficiency. Since then, other principles have been added, but they are widely agreed. They are widely discussed and widely agreed amongst the tax community. There may be some nuance, there may be some detail, but to assert that they are dreamed up out of nowhere is absolutely ridiculous. We do have well-established tax principles. We can use them to judge the effectiveness of our tax system, and this is exactly what the Taxation Principles Reporting Act was in place to do, to enable us to have good information so that we could make good judgments about our tax system. This throwaway Government is going to throw away this incredibly useful piece of information. What a way to end the year. I do not commend this bill.

CHLÖE SWARBRICK (Green—Auckland Central): E te Māngai, tēnā koe; tēnā koutou e te Whare. Much like Dr Deborah Russell, I don’t really know where to start here and I’m a bit gutted for the new Minister, because this is embarrassing, mate. You’re scared of the data and evidence that you’ve made a lot of a song and dance about caring so much about. So let’s talk about precisely that.

The first report under this legislation is due in 10 days. Two of those days are public holidays—that is, of course, Christmas and Boxing Day—two of those days are weekends, and that leaves six ostensible working days. But I’m certain, as with most white-collar jobs across the rest of this country, that those who would be working in the IRD on this would be on holiday, probably from tomorrow, which means that all of the work necessary for the first report is done. Yet the Minister is rushing under urgency to repeal the enabling legislation, because he is terrified of what that report might, in fact, behold.

I do have to say that that, kind of, has to leave us with the conclusion that the National Party, the ACT Party, and the New Zealand First Party are terrified of the data and evidence that they profess to care so much about. I also just want to refer to some of the comments as made by the Minister in introducing this legislation that somehow these were these foreign and alien concepts when it comes to tax principles—those seven tax principles, mind, that we scrutinised heavily throughout the Finance and Expenditure Committee throughout this year, and the National Party could not identify one that they disagreed with.

But to that point of how foreign and out the gate these are, these are the comments about independent adviser from that Finance and Expenditure Committee scrutiny on the initial legislation—Sir Rob McLeod, none the less, who said, and I quote, “I would omit the descriptors because the meaning of each design principle is sufficiently well understood on their own.” That is not ideological; that is independent advice about the inherent value of each of those tax principles and how they are understood out there within the sector.

So there is a fundamental problem here, and that is the fundamental problem of the lack of data and evidence that we have consistently reported against in Aotearoa New Zealand. That has led to an issue of perception, which the National Party proclaimed to care about so much when they were repealing the dual mandate of the Reserve Bank of New Zealand and refocusing things just on that sole mandate. It wasn’t about the data or evidence then either, by the way; it was simply about perception and the imputed behaviour of market players.

So let’s talk about that fundamental issue. Here, I think, I would invite all members of the Government to read Max Rashbrooke’s Too Much Money, published in 2021, within which there is a brilliant graphic contained. It was read, the Hon Simon Watts, by one of your former colleagues—that was, of course, the one now leading the Chamber of Commerce in Auckland.

So this here is a really, really, really important graph. What this tells us is the distribution of wealth that New Zealanders think is ideal. It looks pretty fair; it looks pretty equitable; it looks as though it’s distributed in a relative equitable smattering. Then we have, below that, the distribution of what New Zealanders think the distribution is. So you can see that from the ideal, we deviate into what New Zealanders think it is, and they think it’s a lot more unfair than it actually is. But in fact, as reality and the data and evidence bear out, Minister Simon Watts, things are so, so much worse than New Zealanders think it is. As you can see here, that is the top 20 percent of New Zealanders holding far more than 60 percent to 70 percent of the wealth of everybody in this country.

Of course, this suspicion and this data and this evidence was even more borne out by the high-wealth individuals report from IRD and the subsidiary papers from Treasury at the beginning of this year. That confirmed what New Zealanders have suspected for a really, really long time: that our tax system is fundamentally unfair and it results in the aggregation of wealth from the top 311 families of approximately $85 billion. That is more than the bottom 2.5 million New Zealanders combined hold. What that IRD report told us, Minister Watts, is that that is not an accident. It is a consequence of a tax system which sees the wealthiest New Zealanders pay, effectively, half the tax rate of our nurses, of our firefighters, of our front-line essential workers, of those who work in early childhood, of our teachers, of the average New Zealander.

So what we are standing here today debating under urgency is the repeal of a bill that is largely already done from a Government that pretends to care about data and evidence, but spits in the face of public access to that information on. So I’m at a loss, and really we will continue to prosecute this case throughout the committee of the whole House, because the Minister should be embarrassed.

TODD STEPHENSON (ACT): Thank you. ACT will be supporting this bill, and the hypocrisy from the other side this morning is staggering—staggering.

Hon Grant Robertson: Point of order, Madam Chair. I recognise that the member is a relatively new member, but the use of that term is one that’s been ruled out by many, many presiding officers, and I’d ask that he be asked to withdraw it.

ASSISTANT SPEAKER (Maureen Pugh): I agree with the point of order. The member will withdraw—

TODD STEPHENSON: I withdraw.

ASSISTANT SPEAKER (Maureen Pugh): —and apologise.

TODD STEPHENSON: And apologise to the House. The bill that we’re repealing was done without proper public policy consultation. The then Minister announced that it would be widely consulted on, and it wasn’t. It didn’t even follow the IRD’s own principles for developing policy. The generic tax policy process was not followed. If the former Government had taken the time to actually widely consult on this bill, maybe there would have been some tax principles that could have been agreed and reported on. It was—

Chlöe Swarbrick: You don’t know what you’re talking about.

TODD STEPHENSON: No, I do. It was not done in an appropriate way. It was not done with a full and long select committee process, and the submitters overwhelmingly did not support it. You had accounting societies, the Law Society, all saying that it was not a bill that they would support. If the former Government had actually taken the time, we could have potentially agreed on some principles—[Interruption]

ASSISTANT SPEAKER (Maureen Pugh): Order! I know everyone is tired and this is the end of the year, but there are people in in the community who would like to hear this debate with a little less background noise. Thank you.

TODD STEPHENSON: Thank you, Madam Speaker. As I said, if the time had been taken, perhaps a set of principles—ACT is very interested in tax, as I’m sure everyone would know. If time had been taken, perhaps this could have been a useful piece of legislation. But it wasn’t. [Interruption] It wasn’t, and we are not going to support it, and we want it repealed immediately so that something that wasn’t properly consulted on and didn’t have the support of the majority of submitters—[Interruption] What we should be looking at is actually having tax principles—actually, Dr Russell made some very good points about trying to have some consistency around tax principles—

Chlöe Swarbrick: So which one do you disagree with?

Hon Members: Take a full call.

Hon Member: Great speech, Todd.

TODD STEPHENSON: Yeah, thank you. [Interruption] I know. I’m just letting them get it out.

ASSISTANT SPEAKER (Maureen Pugh): It’s your call.

TODD STEPHENSON: Thank you. I appreciate that, Madam Speaker. Look, as I’ve said, we do support this bill amending this Act that we think was ill conceived, inappropriately consulted on, and did not have widespread support. So I commend this bill to the House.

CHLÖE SWARBRICK (Green—Auckland Central): Point of order, Madam Speaker. I seek leave of the House to table the Finance and Expenditure Committee’s report on the Taxation Principles Reporting Bill.

ASSISTANT SPEAKER (Maureen Pugh): Is that available?

CHLÖE SWARBRICK: It is, but it appears the members of the Government have not read it.

ASSISTANT SPEAKER (Maureen Pugh): That’s not the use of the leave system. Thank you.

ANDY FOSTER (NZ First): Thank you, Madam Speaker. The passion around this bill is absolutely remarkable. I’m really impressed by the Opposition benches that they can keep going after the last two pieces of legislation and are still doing this in the last week before Christmas. Very impressive.

What we’ve heard is that this is about understanding principles. No, it’s not about understanding principles; it’s about whether you actually need to report on those principles in the way which is being suggested. This Government is very, very clear that we want to reduce bureaucracy. What we have seen in the last few years is a burgeoning increase in the number of public servants required to do all sorts of reporting and compliance and all sorts of other things, and what we want to do is to save some money and give that back to the people who have worked so hard to pay for it.

Dr Russell said this is incredibly important information. Well, it may be incredibly important but we’ve managed to cope for more than 180 years without that information and it hasn’t done us too badly. Chlöe Swarbrick says she’s given us the indication of how much is owned by various different parts of the community, but how much is paid in tax? About half our population doesn’t actually pay any net tax by the time they’ve interacted with the Government system. So I think we need to recognise that as well.

Chlöe Swarbrick: So let’s report on it.

ANDY FOSTER: I think we already know that. We don’t need a bureaucracy to report on that.

What is very, very clear is that this was clearly contested at the select committee stage. We’ve got the regulatory impact statement here, something that the Opposition benches are very, very keen on, and you can see the Inland Revenue Department’s advice there—that there are concerns about that, they reflect the concerns about that, and they can also report on some of these things in other ways as well. I commend this bill to the House.

Hon GRANT ROBERTSON (Labour): Madam Chair, thank you very much for the opportunity, somewhat earlier than I’d expected, to speak on this bill. Mr Watts, in his opening speech, I think, articulated a very important point about any piece of legislation that comes forward. He said that the reason why the Government wants to repeal the Taxation Principles Reporting Act is because, “The principles are not universally accepted by tax experts.”

Well, I’ve got news for Mr Watts. His Government’s programme of tax cuts is not actually “universally accepted” by tax experts. So we’ll ditch that now, will we, as well? We’ll get rid of that because it’s not universally accepted. You see, the thing is that Mr Watts actually doesn’t have a reason for getting rid of this legislation other than who brought it in. That’s it; it’s the only thing. Because the reporting and the information that is provided under this Act, I would have thought, is exactly the thing that parties opposite would want: information in the public arena about our tax system.

Now, we all know that there are people in this House who know the intricate and arcane details of our taxation system—I’m thinking about tax lawyers and people who’ve lectured in tax policy—but most New Zealanders don’t. Most New Zealanders don’t have access to that kind of information, and actually being able to understand our tax system, being able to understand how tax is collected, what basis it’s collected on, and how that affects core principles of how we live our lives is relevant and important information. The tax principles as listed in the Act that is being repealed by this bill are ones that I think universally—to coin Mr Watts’ phrase—are ones that people would want to understand: equity, efficiency, integrity, compliance costs, certainty, flexibility, and adaptability. Now, we will disagree across this House about tax policy and about what policy we think should be implemented at any given moment. But what I would have hoped we would not disagree about, Madam Speaker, is the importance of transparency and the importance of information being available to New Zealanders to be able to understand this core and critical part of our financial system.

I’ve heard today already—and fair warning for Mr Watts; these will be questions that come up in the committee of the whole House stage. I’ve heard from him that there’s a bureaucracy involved here. We know exactly how many people are involved. It’s 2.5 full-time equivalents. That, as Chlöe Swarbrick has said on multiple occasions during this debate already, is 0.06 percent of the staff of Inland Revenue; less than 0.1 of 1 percent of the staff of Inland Revenue to actually help all New Zealanders understand their tax system. That is a very, very small price to pay for that information to be available.

But, Madam Speaker, do you know what makes this all so much worse? It is that the work on the first report has undoubtedly already been completed. As has already been pointed out by previous speakers, we are towards the end of the working year. IRD are a very effective and efficient department and they will have completed this work. It will exist. Mr Watts should also be warned that we’ll be asking about that when we come to the committee of the whole House stage.

This is a Government that rails against wastage. The work’s been done and they want to waste it. They want to say, “You know what? Even though we oppose this legislation that the previous Government brought in, we’re going to make certain that the work that’s been done on it is wasted.” They are actively passing a piece of legislation today to ensure that the work of the Public Service is wasted. What a remarkable thing it is, for the first act of the Minister of Revenue to be coming to this House to take away a piece of legislation that means more New Zealanders will understand the tax system and that will provide more transparency about our taxation system. That’s the priority of the Government here.

Among all of the bizarre things that they’ve brought in front of this House over the last couple of weeks, this is the one—this piece of legislation is the one that makes the least sense to me. They don’t like workers, so they’re going to do the legislation that we just had before. But this one’s about the transparency of our taxation system. Every member across there should want to know what is in this report or at the very least give New Zealanders the opportunity to hear it. They are afraid of what’s in it. We will be strongly opposing this legislation.

ASSISTANT SPEAKER (Maureen Pugh): Just for the Green Party’s reference, I will swap the Labour Party call with your call and keep the order, and I’ll call the National Party—Stuart Smith.

STUART SMITH (National—Kaikōura): Thank you, Madam Speaker. Well, there’s certainly been some extra shots of coffee this morning by the sound of the energy in the House. Who knew people would get so engaged about tax? This is a very simple bill. It was, in fact, the Hon Grant Robertson who talked about the principles in the bill earlier. But in the select committee, it was quite clear—it came out in the report—that there was a lack of common understanding on the principles. In fact, the Inland Revenue themselves stated that in their view, the anticipated benefits of the Act are unlikely to be fully realised for that reason. So it’s an unnecessary bit of bureaucracy, which we know that the former Labour Government loves. We don’t; we’re more efficient, and we’re getting on with it. I commend the bill to the House.

Hon JAMES SHAW (Co-Leader—Green): Well, obviously the members of the Government don’t have a great deal to say about this bill. They can’t defend it, because it is an indefensible bill.

As far as I’m aware, no one in the coalition Government has said that they object to any of the seven principles that are outlined in the Act that is about to be repealed here. So if they don’t object to the principles themselves, the question then is: why are they spending the last sitting day or two of the year repealing this? They ran an election campaign saying that they were going to be relentlessly focused on the cost of living for New Zealanders. The question here is: when there are 2½ fulltime-equivalent staff in an operation of 4,000 at Inland Revenue, how does repealing this Act reduce the cost of living for middle and low income New Zealanders? The answer is that it makes no difference at all to the cost of living of middle and low income New Zealanders.

So the question then is: in whose interests is the Government repealing this Act? That is obvious—the answer to that is obvious. It is the interests of the people who pay less of a share in tax as a proportion of their wealth and income than middle and low income New Zealanders, and those are the people who are the donors to the National Party and the ACT Party and the New Zealand First Party, who funded those parties’ election campaigns in order to ensure that their tax transparency would be erased so that questions would stop being asked about what an unfair, unproductive, unprofessional, and inequitable tax system we have.

Particularly for those members of the National Party who, when they were in Opposition, sat on this side of the House and day after day after day taunted the Labour-led Government around how transparent they were being, how open and transparent they were being, throwing that in the faces of the Government at the time—and one of their very first acts as a Government is to take away openness and transparency about the tax system of this country, to simply eliminate that and to say, “We actually don’t want to know. We want to see no evil, we want to hear no evil, and we want to speak no evil about what an inequitable tax system we have.” Because that is what is in the report that has already been written that is under the current Act.

So those are the only interests—

Hon Judith Collins: Point of order, Madam Speaker. I draw to your attention Speakers’ ruling 55/5 where it is out of order to say that a Government is influenced, and certainly that is what I am hearing from the member who has just resumed his seat. It’s out of order to suggest a Government or any member is subject to outside domination. It does say that the term “pressure” is a borderline one, but it is really not in the spirit of Speakers’ rulings, nor is it, by the way, in the spirit of Christmas, and when I’m on my feet—thank you—

ASSISTANT SPEAKER (Maureen Pugh): Is this still the point of order?

Hon Judith Collins: So I would ask the member to withdraw his statement, please.

Hon JAMES SHAW: Speaking to the point of order, I did not say that the Government was acting under influence.

ASSISTANT SPEAKER (Maureen Pugh): Just to the member that raised the point of order, I did seek clarification when I heard that comment, and technically it is within the Standing Orders. Thank you.

Hon JAMES SHAW: Well, in the spirit of Christmas, just seeing as we’re taking away transparency, we’re taking away openness about the nature of this tax system in a way that obviously makes no difference to average New Zealanders, which the members of that Government said that they were supposed to represent. And I do want to thank the Minister for her interjection there, just because it helps to kind of really point out just how defensive they are about what a pointless bill this is, given that, actually, the one thing that we did not have a good understanding of in this country was an understanding of the nature of the tax system and of wealth distribution and so on and so forth. That was why this Act was there.

So for all of those new members who have been elected as part of the Government benches, I’d just ask them to reflect on exactly why it is that this has been introduced. What is so urgent that it gets introduced under urgency right before Christmas, in order to kind of fill the time? I have to say that for a Government whose coalition agreements refer to saying that “decisions will be based on data and evidence”, one of their very first acts is to ensure that there is no data or evidence in relation to the tax system of this country. I have to say that it is appalling that this Government would say, as one of its very first acts, having fought an election campaign saying that the whole point was to focus on the cost of living, that this only serves the cost of living of the wealthiest New Zealanders of this country.

CATHERINE WEDD (National—Tukituki): I support the repeal of the Tax Principles Reporting Act because we don’t need more bureaucracy, more reporting, more tax, and, as my colleague referred to, redundant reporting—and, as the member on the other side of the House also referred to, redundant reporting. We don’t need more time-wasting and wasteful spending. We need a fair tax system that is simple and efficient, that supports hard-working New Zealanders.

We don’t need a tax principles Act to tell us our principles on tax. On the other side of the House, they are obsessed with taxing hard-working New Zealanders and creating more bureaucracy and more rules. On this side of the House, we are focused on getting things done, delivering for New Zealanders, and creating less bureaucracy. I commend this bill to the committee.

Hon BARBARA EDMONDS (Labour—Mana): And here we are, a mere three, four, five days before Christmas, with a bill that’s coming under urgency that adds to the anti-worker agenda that that side of the House, that Government, wants to run. We have seen under urgency over the last day—over the last three days, because this is Tuesday—an absolute agenda of removing fairness in our system, fairness for workers, fairness for employees. This bill continues that unfairness, because the unfairness is no longer going to be subject to evidence or data.

Now, I have worked for a long time in the tax community outside of these walls, including for one of the Ministers, the Hon Judith Collins, who, in the time that she was the Minister, did a very important piece of work around a multilateral instrument with overseas jurisdictions. She championed that piece of work to ensure that overseas companies and overseas jurisdictions could share information with New Zealand to ensure that people overseas were paying their fair share of tax.

This piece of work allows New Zealand to share the information so that the rest of the public who are listening to this debate understand where the incidence of tax lands, and, unfortunately, this Government has shown that it is not evidence based, or perhaps it’s going to be evidence based on the data that they want to use. This report would have been written—there’s a draft report. I look forward to our members’ Official Information Act (OIA) requests to Inland Revenue for that draft report to understand the evidence that’s been written. But when I looked to the Minister’s press release as to why exactly that side of the House, this Government, wants to ram this piece of legislation through just before Christmas, I couldn’t find the answers, and all I found were a whole bunch of contradictions.

On the Taxation Principles Reporting Act, I quote the Minister: “despite widespread opposition”. Again, as evidenced by one of our own Finance and Expenditure Committee members and other members who were sitting through that tax principles bill, that was absolutely incorrect. There wasn’t “widespread opposition”. Then the Minister’s press statement goes “The bureaucracy it would have entailed is completely unnecessary.” Again, even in the officials’ regulatory impact statement, it states 2.5 fulltime-equivalents (FTEs)—2.5 FTEs—and I object to the Minister using the word “bureaucracy” to describe our hard-working public servants, the 2.5 of them who would have already written this report and whose time, therefore, is being wasted by this Government. But, then again, it is official information, so, again, I encourage other members of this House to put in that OIA request.

The Minister’s press release then carries on: “be on higher priority measures to address the cost of living and get the government’s books back in order.” Well, the cost of living just yesterday, in the Minister of Finance’s mini-Budget, removed two key elements which would have helped with the cost of living: that is the half-price transport fares, and that is the removal of the 20 hours’ early childhood education (ECE). Those are two policy initiatives that would have helped our families with the cost of living. I’m aware, just today, of a family that was absolutely banking on being able to have 20 hours’ ECE free next year and for that family to be able to go back to work for one of those parents, but this Government is not about the cost of living.

The Minister’s press release statement then goes, “[it] requires Inland Revenue to report under the Act by 31 December unless the Act is repealed prior.” Again, the work’s been done—another contradiction in the Minister’s press release, because the work has been done. We know that, because the Green member quite clearly showed that there’s only a few more working days. So again, the OIAs are going to be flooding through.

The last thing I want to point to in the Minister’s press release: “[it means it’s] focused on collecting tax and contributing to the delivery of the Government’s income tax reduction plans.” I can bet my bottom dollar that the 2.5 FTEs are probably working in the evaluation section of Inland Revenue. Their information will help target where you need to put your compliance costs, where you need to put your compliance resources, because, again, the Minister in his press release has failed to provide an absolute foundation for repealing this Act under urgency. It shows that that side of the House wants to be anti-workers. It wants to be anti-transparent. I do not commend this bill to the House, and I look forward to the debate we’re going to have over the next couple of days.

NANCY LU (National): I rise to speak on the first reading of the Taxation Principles Reporting Act Repeal Bill. I am in total support of this bill because it is truly a bureaucratic scheme by an Opposition member. I was from the profession of tax and accounting in my pre-Parliament life, and so I know that in practice both taxpayers and tax services providers need a fair, simple, transparent, easy, and adequate tax system to service our country’s revenue needs. Kiwis don’t need another bureaucratic scheme, so therefore I commend the bill to the House.

A party vote was called for on the question, That the Taxation Principles Reporting Act Repeal Bill be now read a first time.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Motion agreed to.

Bill read a first time.

ASSISTANT SPEAKER (Maureen Pugh): This bill is set down for second reading immediately.

Second Reading

Hon SIMON WATTS (Minister of Revenue): I move, That the Taxation Principles Reporting Act Repeal Bill be now read a second time.

Good tax legislation generally can improve a lot for the taxpayers in this country, either by introducing favourable tax changes, or in making tax legislation simpler and cheaper to comply with. The Taxation Principles Reporting Act 2023 does neither of these things. It also does not do what it set out to do: to provide a set of principles which would guide New Zealand to a fairer tax system. Instead, the Act contains a set of taxation principles and establishes a reporting requirement on the Internal Revenue Department (IRD).

The bill we are considering today will repeal the descriptions of those principles and the obligation on IRD to produce the reports on the performance of the tax system weighted against those principles. The Government is taking the step because those principles, to be of value, need to be reflective of the values which we can all sign up to, and not the views of the earlier Government. Those views, on what constitutes a fair tax system, cannot be allowed to stymie the tax policy aspirations of a democratically elected Government.

The honourable members of this House, whatever their political conviction, are united, I’m sure, in one fundamental objective: that we all want to see a fairer tax system. We also want to see increased transparency in the tax system, but we have differing views on what fairness looks like, and that is to be expected.

The Act we are repealing purportedly was to achieve those objectives, but in reality it simply gives the illusion of having achieved something. In fact, it actually introduced some concerning problems which have negative implications for transparency, for public understanding, and to a principled tax policy development. The right of any elected Government to devise, shape, and implement its own tax policy must be preserved. A Government is elected by the public to carry out its stated tax policies. Had the Act been consulted on, it is possible that it might have achieved consensus on what constitutes fairness in the tax system. Consultation would have also helped avoid the problematic descriptors of those principles. Repealing the Act will remove those problems.

Another problem is the core requirement of the Act: the requirement for the IRD to produce reports on the performance of the tax system as gauged against those principles. First, we don’t think the reporting needs to be legislated for. Secondly, to meet the reporting requirement, the IRD is likely to need to collect more information from taxpayers on economic income, for instance, and this could impose unnecessary compliance costs. The final thing to mention is that I previously described the Taxation Principles Act as “redundant”. Once this bill we are considering has fulfilled its objective, it too will become redundant. But rather than cluttering up the statute book with redundant Acts, the bill contains a legislative housekeeping measure, clause 3, which says that the repealing Act is itself repealed on 1 January 2025. So this bill first repeals the Taxation Principles Reporting Act with effect later this month, and then, having done its job, the repealing Act repeals itself.

There are many problems with the Taxation Principles Reporting Act. It’s good, therefore, that this Act will be repealed and allow us all to move on and have a merry Christmas. I therefore commend this bill to the House.

Hon Dr DEBORAH RUSSELL (Labour): This is an unusual bill for this National-led coalition. It’s an unusual bill because it’s got a regulatory impact statement. Famously, they said a couple of weeks ago that they weren’t going to have regulatory impact statements for matters that were being repealed under urgency, but this bill has one, so a little bit of consistency from the National-led coalition Government would be quite nice.

However, setting aside that, I suppose, minor point, I think I do want to draw something out of it, which is that having worked with the officials at Inland Revenue myself in recent years, having in past times been one of those officials at Inland Revenue Department, I have a very, very high regard for their integrity and professionalism, for their intellectual commitment to an excellent tax system in New Zealand, and for the work they do to preserve it. I think it’s a mark of their integrity and their professionalism that despite that Government’s rush to do away with regulatory impact statements, the hard-working and able officials at Inland Revenue nevertheless produced one.

I understand that perhaps a draft regulatory impact statement was prepared for one of the bills that—which bill was it that there was a draft one?

Hon Barbara Edmonds: EVs—Clean Car Discount.

Hon Dr DEBORAH RUSSELL: Yeah, right, OK; the one repealing the electric vehicle discount scheme. There was a draft regulatory impact statement for that, but it wasn’t brought to this House—they didn’t want to see that one in the House. We’ll be requesting it under the Official Information Act, of course. But this one has at least got into the House, so I’m grateful for that.

I just wish to repeat back some words which members of the Government have said in respect of our tax system. So, first of all, welcome to Nancy Lu. I believe that might have been the first time that Nancy was speaking in this House. She brought to the table her previous experience in the tax system, which of course, having come from that that space myself, is always valuable to have in this House. Nancy Lu said quite correctly that what New Zealanders want—and indeed this is what I know Inland Revenue works toward and the tax community works toward—is a fair, simple, easy, and transparent tax system. Of course! Of course that’s what we all want. And Simon Watts, the Minister of Revenue, said that we all want to see a fairer tax system and we want transparency. Those were words coming from members of the National-led coalition. Of course we all want that. The point is: how would we know? How could we assess whether that is the case?

This is exactly what the Taxation Principles Reporting Act sets out to do. It sets out to give us a way of assessing the fairness and simplicity, the easiness, the transparency of the tax system. It sets up some principles. It sets up some ways that they are to be measured. And then it sets up a reporting requirement for Inland Revenue so that those of us—and I take it that we’ve got broad agreement across the House on this, that we want to have a tax system that is fairly simple, easy, and transparent. It sets up a way that we can actually get some information about that as to whether our tax system really is fair, whether it really is simple, whether it really is easy, whether it really is transparent. That is exactly what the Taxation Principles Reporting Act was enabling us to do.

By doing away with this Act, the National-led coalition Government is working against us understanding the fairness, the simplicity, the easiness, the transparency of the tax system. What a shame—what a shame. As my colleague James Shaw rightly pointed out, we’re pretty sure that the hard-working Inland Revenue Department officials, hard-working people of great integrity, have almost certainly already prepared the very first interim report on the tax principles. And yet, nevertheless, we’re not even going to get that interim report. What a shame. So two things: doing away with the reporting requirement and doing away with the work that has already been done to assess the fairness, simplicity, and easiness and transparency of the tax system.

Mr Watts went on to talk about a democratically elected Government. Indeed, in the broad sense, we are all part of the governance of New Zealand. We are all part of this democracy. But democracies thrive on transparency. They thrive when citizens understand what is happening. They thrive when people can participate meaningfully in democratic processes. They thrive when people have the information to do this. Now, as someone who has worked in the tax system, I know that tax is not easy. Look, when I was a tax lecturer, one of my first tasks every year was to stop my students being scared of tax. A lot of them found it quite confronting and hard to deal with. My first task was always—always—to help them to understand how tax worked and to get them to be familiar with it so that even if it wasn’t easy, they could at least get under way with working on it.

Now, if it was hard for students who had already done some basic accountancy, if it was hard for people who wanted to know about the tax system, how much harder for the rest of the country? Some of us in this House have specialised knowledge about taxation and we can bring that knowledge to bear in debates in this House, but what proportion of New Zealand actually understands our tax system? I’m going to say it’s probably not a very high proportion. That’s a shame, because tax really matters.

It matters because democratically elected Government quite rightly asks their citizens to contribute to the running of the country. And how much they ask from each citizen is a matter for debate constantly, and especially in elections. But how much better that debate would be, how much better our democracy would be, if we had the information we need about our tax system, rather than just the very, very basic level that people mostly have. So that is why this Taxation Principles Reporting Act would have added to our democracy.

I wish I had had time in this speech to go through each of the principles and to talk about why each of the principles is important. Actually, this is one of the things that would have been examined and, in fact, was examined in a select committee process. [Interruption]

ASSISTANT SPEAKER (Maureen Pugh): I’m sorry to interrupt the member. Can I just ask for these conversations to be taken outside the House, thank you. Apologies.

Hon Dr DEBORAH RUSSELL: Thank you, Madam Speaker. There was a select committee process where, as always happens in select committee processes—

Chlöe Swarbrick: Great report.

Hon Dr DEBORAH RUSSELL: Great report. The wording of the bill at that time was changed in order to meet the concerns of submitters. Now, of course not everything went the way that some submitters wanted, but nevertheless there was an ongoing discussion about the content of those tax principles and about which tax principles should be in the bill and which ones should be measured. In fact it came off the back of a standard consultation process. It’s one of the correct things about the IRD’s policy process, the generic tax policy process. It is an extensive process of consultation, of exposure drafts, and so on. So the principles in the ACT were extensively consulted on. Nevertheless, all that work is going to go to waste. What a shame.

I’m hoping that my colleagues on this side of the House will perhaps pick up some of the challenges that were issued by the Minister of Revenue. He said that we don’t even agree on what fairness is in a tax system. That’s simply not the case. Actually, we do have a fairly good grasp on what people think is fairness in a tax system. We do know from survey, research, and so on that most New Zealanders think that we should have a progressive tax system, that those who earn more should contribute more to the wellbeing of the country. Now, there might be disagreement about how much, there might be disagreement about how that is calculated and so on, but most New Zealanders buy into the basic principle of a progressive tax system.

So that’s a vertical equity. Most New Zealanders buy into the notion of horizontal equity, and I’m hoping that my colleagues on this side of the House will talk about these principles a little bit more. But there is actually fairly widespread agreement about what a tax system should look like, and it’s agreement within New Zealand—quibbling around the edges, some detail and nuance, but some broad agreement there. There’s broad agreement in the tax literature about what a good tax system should look like. The only thing is we actually need to measure how it’s working in this country, and that National-led Government will not allow that to happen.

CHLÖE SWARBRICK (Green—Auckland Central): E te Māngai, tēnā koe. Tēnā koutou e te Whare. There’s been a lot made of the fact that as I’ve stood up here representing the Greens in opposition to this legislation, I’ve exerted some level of frustration. And that’s true, I am deeply frustrated about the fact that we are sitting under urgency without due process for this legislation through a select committee process, which, ironically, the National-led Government is saying they think should have occurred to a greater extent when it came to the imposition of this legislation in the first place, but also the fact that I have not heard yet one coherent or consistent argument from members of the Government on the need to repeal this legislation. So if I may, Madam Speaker, given that this is the only scrutiny that we’ll have on this repeal legislation, I think it is really important to put these points on record again and again.

As, actually, members of the Government themselves have stated, this legislation as it currently sits on our statute book doesn’t fix our broken tax system. So let’s dig into what it is that the Greens are talking about when we’re talking about our broken tax system. Well, actually, arguably, some would say it’s by design that it is inequitable and unfair, as reflected in that report from the beginning of this year from the IRD, with subsidiary papers from Treasury, which showed us that the wealthiest 311 families in this country pay an effective tax rate of less than half of that of the average New Zealander. What that kind of rubbed up against is the general sentiment and sense out there that many New Zealanders have that the tax system is unfair. But that tax system is a result of either intentional decisions that have been made by Government after Government after Government, or by intentional neglect. That is the point of this reporting legislation, to require that for the first time, God forbid, in this country, we have consistent reporting against consistent measures so that we can measure the efficacy of our tax system against principles.

So to dig through those principles—because I think it is a really, really important point that I actually haven’t heard any contention from members of the Government in opposition to any of the seven principles within the legislation. So let’s talk about those seven principles; the first is the notion of horizontal equity—and this is a bingo card so folks can play along at home, or those on the Government benches if they’d like to actually address the substance of the legislation that they’re appealing under urgency this morning.

Horizontal equity—first up. That is, basically, the notion, and I quote, “The extent to which people with similar levels of economic income pay similar amounts of tax”. It seems like a pretty fair metric that we should be measuring against. The second principle is efficiency, something that I often hear members of the Government railing in support for. Efficiency, and I quote, “is the extent to which tax revenue is raised in ways that minimise costs to the economy, including distortions.” The third principle is that of vertical equity, and here I quote, “Tax is progressive if people with higher levels of economic income pay a higher proportion of that income in tax.” That is a principle that’s been baked into our tax system since time immemorial. The fourth principle is of revenue integrity, and that is, and I quote, “[coherent and] sustainable over time and minimises opportunities for tax avoidance and tax evasion.”

I’ll never forget the point at which we were debating another piece of tax legislation a few years ago when the Hon Andrew Bayly said, “There is such a thing as legitimate tax avoidance.” And he really said the quiet part out loud there, in talking about how our tax system enables those with power and wealth to squirrel away that wealth in such a way to avoid payment of taxation. It’s totally legal and totally legitimate. Is it ethical? Is it fair? Well, that’s exactly what this principle would have allowed us to report against.

The fifth principle is one of compliance and administrative costs—again, something I would have thought that this Government, who is really opposed to waste, would have been in support of. It is, and I quote, “the extent to which compliance and administrative costs for taxpayers and the Government are reasonable.” The sixth is certainty and predictability—and here I thought that we loved a “certain” investment environment—that is, and I quote, “the extent to which the tax system is … transparent and taxpayers are able to determine their tax obligations before they are due.” Is that not a really important principle that all of us in this House should abide by or seek to uphold? The seventh is the principle of flexibility and adaptability; here it says, I quote, “the extent to which the tax system keeps pace with changes in society, in particular technological and commercial developments, and changes in inequality or comparative wellbeing.”

The reason that I thought it was really, really important to put that on the record is because I’ve reflected on a number of the speeches, especially from new members, and it appears as though they’re not quite aware of the extent of the process that we had undertaken at the Finance and Expenditure Committee to put really, really serious scrutiny on these principles and the operation of this legislation. And here I would just refer those members back to the points—not made by the Government, not even made by IRD advisers, or by officials, or even by submitters, but by the independent adviser that members of the ACT Party and the National Party agreed to appointing to our Finance and Expenditure Committee on the basis of those principles and his ability to offer us meaningful insight into them. This is, again, the substantial document of the Finance and Expenditure Committee’s scrutiny on the taxation reporting legislation, and this is Sir Rob McLeod—you can google him if you’re not aware of how extensive his experience and his reputation is in this space. He was actually arguing for the removal of the definition of these principles because he thought that they were so well understood. So just to put this on the record again, he says, and I quote, “I would omit the descriptors because the meaning of each design principle is sufficiently well understood on their own.”

So that then takes us to another point, which we’ve heard rather flippantly from the Minister and from members of the Government, that apparently this was really widely opposed. Well, unfortunately, that doesn’t really quite bear out in the facts. Again, I would invite members to go and look at the Finance and Expenditure Committee report and the departmental report from that select committee scrutiny, which shows us that, in fact, the majority of submitters were in favour of consistent reporting and data and evidence on the efficacy and operation of our tax system. In fact, even players like the Federated Farmers were in support of the basic principles as outlined in this legislation. They wanted this reporting because—you know what?—all of us benefit. All New Zealanders benefit when we have more access to information, more transparency, so that better and more informed decisions can be made by the Government but also, yeah, so that those in contention with the direction of the Government can make the argument in the opposite direction.

Here I just reflect on the statement from Jeanette Fitzsimons, who, obviously, was the founding female co-leader of the Greens, who said, “Sunlight is the best disinfectant.” We can reflect on a number of different instruments that Parliaments past have instituted in order to provide greater levels of insight into decision making, into data, into evidence such that the public can draw their own conclusion. I think about how our forebears advocated, for example, for the pecuniary interests for members of Parliament, which at the time might have been argued against on the basis that they are a massive incursion into the privacy of members of Parliament, and, you know, members of the public should just trust members of Parliament when it comes to any kind of influence that they may or may not have over their decision making. But hey, guess what? It’s now a matter of common practice and it is out there for members of the public to draw their own conclusions. It is a standard practice of transparency and accountability. Same actually goes for PAYE. When that was first instituted as an income tax proposal, there were arguments made that this was a massive incursion into the privacy of individuals to organise and arrange their own affairs, and you know, just a little “wink, wink, nudge, nudge—just trust us”. But again, obviously now this is a matter of common practice because this is how society and our economy evolves.

So let’s talk about that point of how our society and our economy has evolved. Well, it’s evolved in such a way that, as I held up before in the first reading, we have the greatest levels of wealth inequality in this country that we have ever seen on record. And you know what? It’s actually, as far as democracy goes, an OK thing that members of the Government don’t want to see that addressed. That is their prerogative. They can choose what side they want to sit on when it comes to that argument and that debate. But our contention, here in the Opposition, is that in lieu of having access to that data and that information and that consistent data set, we are robbing not only this Parliament of the opportunity to have a meaningful and informed debate and discussion but the general public’s ability to also participate in understanding precisely what is going on.

The point’s been made time and again that this work has actually already been done, because we know that the first report is due out on 31 December and the 2.5 full-time equivalents (FTEs) who have been seconded into working on this—just for the record, again, that’s 0.06 percent of all of the FTEs working within IRD—we have seen that they will have already done this work. So I’m very much looking forward to putting forth those Official Information Act requests to the Minister and seeing the advice that he so evidently has seen, which scared him so much into putting this into urgency before Christmas.

The final point is that I just really put it on the Government, who have said that they still want to see some transparency in reporting, to tell us precisely what format they’d like it to take. Because the IRD themselves, in their own regulatory impact statements, are asking for more resources to keep doing exactly that.

DAVID SEYMOUR (Associate Minister of Finance): Thank you, Madam Speaker. I thank the member who’s just resumed her seat, Chlöe Swarbrick, for the speech she gave, although I have to say I don’t think the last nine minutes were really necessary.

I stand in support of the Taxation Principles Reporting Act Repeal Bill, and let me take an opportunity to respond to some of the things that we’ve just heard. We’ve heard time and again that the wealthiest New Zealanders pay half the tax rate of the average New Zealander. We’ve heard that time and again, repeated by people on the Opposition benches, and I wouldn’t describe it as lying because, as Chlöe Swarbrick recently found, you’re not supposed to say that. In fact, for people who want to watch on replay, you can see the high and mighty Chlöe Swarbrick, who tells us we’re all inexperienced and have no data, come into the House at midnight and apologise to the House for not knowing the most basic rules.

She also repeats continuously this untrue assertion that the wealthiest New Zealanders pay half the tax rate of the average New Zealander. Let me tell you where that comes from. It comes from a fishing expedition that the previous Government sent the IRD on to survey 311 high net worth New Zealanders, and they calculated how much money those people had and how much their paper assets increased over a period of time and how much tax they paid. And they divided the tax they paid by how much their paper wealth had increased to try and calculate what they described as an effective tax rate.

Well, the problem with that is that if that was really the standard that was applied to New Zealanders, then take a year like 2021. The median house price in 2021 under the previous Government, when it lost control of monetary policy and lost control of inflation, increased by $135,000. And that means that the average person has a $45,000 tax bill. That’s what they would have paid if we took this thinking seriously. If we were seriously going to say that every time your paper assets go up, such as house prices increase, that you are liable to pay tax on that, then we would have a very different tax system. And, actually, that is the policy of the Greens. The question is whether it is the policy of the Labour Party.

Does the Labour Party want to join the Greens in saying that people should pay tax on their paper asset gains? Should there be a tax on your house? I see Grant Robertson waving the bill at me while I’m responding to members who have contributed to the debate. And if Grant Robertson doesn’t like the members contributing to the debate, he’d better think about how to win back Wellington Central from them. That’s the real problem he’s got.

So that is the real question about tax principles—are we serious about taxing wealth? Because the Green Party is very clear that they’re coming after your house. I remember debating Julie Anne Genter in Epsom one day years ago, and the question was asked: how should a person who has a lot of assets, perhaps a widow who has recently lost their partner, pay for the Greens’ wealth tax on their house? And Julie Anne Genter told the audience, “Oh well, maybe they could get a reverse mortgage,” and you could hear the air getting sucked out of the room. She hasn’t said it again, I’ve got to say.

But that is where these tax principles take us. The problem that the Green Party has, and the Labour Party for that matter, is that none of their own policies would actually adhere to these principles, because these parties want to start using tax not as a way to raise revenue, not in a way to be fair, not in a way to be efficient—they want to add new taxes that will go after your assets and if you don’t have the money to pay, they’ll put you on a reverse mortgage and start bleeding you dry. That’s what these guys really believe, and that is why the Taxation Principles Reporting Act, which we’re repealing today, makes no difference—because the parties opposite who brought this legislation in then went and wrote tax policies and campaigned on policies that would never be consistent with the Taxation Principles Reporting Act.

I see a new member over there from the Greens who’s frowning at me, thinking, “Does this make sense? Was that really our policy?” Well, let me explain to her how it works. Actually, the Green Party’s policy is that you pay 1.5 percent wealth tax on assets in trust. So you’ve got two people, one owns a home, one owns a home that they’ve put in trust, and if you’ve put your home in a trust because you’re worried that your kid is getting married and you don’t want them to lose their asset in a settlement when it’s their inheritance from you, you pay 1.5 percent. The person that keeps the house in their own ownership doesn’t pay the 1.5 percent. So that’s one Green Party policy that would fail the horizonal equity test. So they voted for the legislation and then they campaigned on a policy that would fail the first test.

And here’s another one. They say that if you have $4 million of wealth, you pay 2.5 percent as a couple but you pay only 2.5 percent on $2 million of wealth if you’re single. So what happens to an older couple who might have $3 million of wealth that they’ve worked their whole life for, they’ve got a nice house, they’ve got some retirement savings, their $3 million is not taxable because it’s under $4 million. All of a sudden, one partner dies—that can happen with elderly couples—and all of a sudden one of those people is liable for 2.5 percent on the extra million dollars, a $25,000 a year tax bill for that elderly lady who’s grieving the loss of her husband under the Greens’ tax policy. Now, is that equitable? Oh, here we go.

Hon Julie Anne Genter: Point of order. I just wanted to raise with you a question because it seems to me that the member currently speaking is not speaking to the bill at all but is talking about imagined conversations from 10 years ago, policies from other parties that they campaigned on. It’s very interesting and I’m glad that he’s promoting our policies, but it’s not really in the bill.

DAVID SEYMOUR: Speaking to the point of order, Madam Speaker—

DEPUTY SPEAKER: Can I first of all say I am actually hearing the member who has been on his feet talking about tax principles, and the bill is about tax principles reporting, so unless the member has something further to add to the point or order, I’d ask you to carry on.

DAVID SEYMOUR: Oh, I do, Madam Speaker. In raising the point of order, Julie Anne Genter said that the conversation I assume she was referring to, events where she told a group of my Epsom constituents to get a reverse mortgage, was an imagined conversation. I just want to put it on the record that that actually happened, and for her not to take me at my word and accuse me of lying is wrong.

DEPUTY SPEAKER: Thank you. I’m sorry; that’s not a point of order. I’m sorry, I was talking and I missed that comment when I was speaking to the Clerk.

DAVID SEYMOUR: Thank you very much, Madam Speaker. I think that people watching at home can take heed of the fact that the Green Party is the only party I know that has just tried to shut down a discussion about its own tax policy. But it’s kind of understandable. The point that Julie Anne Genter was not following along is that the Green Party voted for the Taxation Principles Reporting Act and then ran the election on policies, and had they been successful they would no doubt have tried to implement policies that violate the Act.

That is why we oppose it—because even the people who believe in it don’t follow it. Why would it make any difference for this Parliament to require the IRD to go to great expense to prepare a report every year when even the people whose idea it was don’t agree with it and don’t follow it? If it can’t have any influence on the Green Party, who think it’s desperately necessary to have this law, then how can it possibly have an effect on anyone else? They don’t do it; why would anyone else?

There’s another point that maybe needs to be considered. The Labour Party and the Green Party were in Government for six years, and not a single report was produced under the Taxation Principles Reporting Act. As we heard earlier, the first report is due at the end of this year. So how is it possible that the Labour Party and the Green Party are sitting here desperately telling us that we have to have this legislation, when they themselves governed without it for six years? They cannot be sincere when they believe that this is important.

On this side of the House, we are interested in saving the taxpayer money. We are interested in a smaller, more efficient Government. We are interested in removing red tape, regulation, and bureaucracy wherever we find it. Taking a few hours to debate the removal of the Taxation Principles Reporting Act is a very good example of this Government getting to work and saving money so that people sitting at home can actually have some more money left at the end of the week and spend less of their time funding pointless bureaucracy and stupid law that even the people who came up with it and supported it do not believe in, because even they don’t follow it in their own policy. As an added Christmas bonus, the Green Party are over there and they’re not going to be taxing a house. Thank you, Madam Speaker.

ANDY FOSTER (NZ First): Thank you Madam Speaker. Look, what is very, very clear from the select committee report is that it was only a majority report in favour. In other words, it was contentious at the time. We’ve heard suggested from the Opposition benches that this is in some ways some sort of slight on the hard-working staff at the IRD, which clearly it is not; it’s just about whether this piece of reporting needs to be done.

I think we’ve also heard from the Opposition a lot of discussion about the principles which are there, and I don’t think, again, you’ve heard any disagreement with those principles. They’re good principles. The question is do you need to report on those principles under the Act? I think we’ve also heard some very interesting discussion about whether some of the party’s policies that are around here would actually meet some of those principles. And I was interested that the Hon David Seymour didn’t also highlight the boondoggles that were around GST, which clearly would not—clearly would not have met those principles.

I think the key thing here is whether those principles need to be reported under this Act. If you look at the regulatory impact statement it’s quite clear. Obviously it’s from the IRD, and they say that following the select committee and bill process “it became apparent that the final reporting framework did not have broad support. It is, therefore, unlikely that the framework will prove enduring”. They then go on to say “The Act, therefore, is unlikely to be effective in achieving its purposes. In Inland Revenue’s view, this indicates the anticipated benefits of the Act are unlikely to be fully realised.” Now, they’d obviously started off saying this was something that they thought was worth doing and then they came to the view that maybe after this process it wasn’t, which I think is interesting. Then they also say, well, look, we can still provide information there and “Inland Revenue intends to consider means of improving its current reporting under the Tax Administration Act 1994.” So they can still report on the things that they deem are important.

The Hon Deborah Russell said that the important thing here is the transparency of the tax system. Actually, I think the thing that is much more exercising the public’s mind is the transparency of the expenditure that goes on by Government. We’ve seen the recent report by the Auditor-General, which cast some severe doubt about that in some areas. I think the other thing which is sitting behind this relatively harmless looking piece of legislation in many ways is more about how people might want to spend, or how people might want to tax—how different parties might want to tax New Zealanders in the future. I think really what it comes down to is an issue of trust. I think that many New Zealanders do not trust that Government, given information—given powers, would not misuse that to really severely impact on them, and we’ve heard the example that we’ve just had about a couple with a $3 million house and what would happen if one of the couple dies.

I think really this is about the public’s confidence and trust in this Parliament and in Governments to make sure they do not overreach themselves into people’s lives. Thank you, Madam Speaker; I commend this bill to the House.

DEPUTY SPEAKER: Before I call the Hon James Shaw, this is normally a split call and I just want to clarify for the House that I have a letter from the Maōri Party giving their five minutes to the Green Party. So James Shaw will have the option of a 10-minute call.

Hon JAMES SHAW (Co-Leader—Green): Thank you very much. I think this is very important that we debate this properly, because obviously we don’t have proper full parliamentary scrutiny due to the use of the urgency process to kind of sneak this in before the Christmas break. So I’d encourage the Minister of Revenue to buckle up, because this is his first piece of legislation that he’s presenting to the House, and clearly the removal of transparency and openness as the very first act of the new Minister of Revenue I find kind of remarkable.

I actually just wanted to respond to some of the points that I’ve heard in the debate just now. So the member for New Zealand First, Andy Foster, was just talking about trust and confidence and how important it is for New Zealanders to have trust and confidence in their Government and in their Parliament. I think the idea that you would take away transparency, take away evidence, take away data, take away that information, take away openness about the nature of our tax system is not a very good way of building trust and confidence. Trust and confidence actually come from having public information that is objective and publicly available, having information that is open and transparent, being able to form opinions about what is going on here. In fact, this Government is doing the exact opposite of building trust and confidence by removing data and information, which is directly contrary to their own coalition agreement principles that say that decisions will be based on data and information—except apparently data and information that they don’t like, such as information about the tax system.

The other thing that I wanted to respond to that Andy Foster had talked about was he said that he thought that New Zealanders would be exercised about the transparency of expenditure of the Government. And that is fair—that is fair. They are exercised about that. But it is inconsistent to say that they will not also be exercised about transparency around revenue, because revenue is how you are able to get expenditure. The two are inextricably linked. The idea that you would actually take away transparency and openness around revenue because you think that they’re more exercised about transparency around expenditure is an incoherent argument. It is not an argument for the bill.

One of the points that David Seymour raised in his intervention earlier was he raised a point that some of the tax policies that some of the parties took to the election campaign were inconsistent with the principles in the Act. I would agree with him on that point. That is an argument for the Act, because if nobody disagrees with the principles in the Act itself, having some information in the public domain about how the country is doing in relation to those principles you would think would, over time, start to encourage political parties to develop policies that are coherent with those policies.

In fact, I would argue—and if David Parker were able to be here, I suspect he would argue—that the point of the existing Act is to ensure that Parliament is better informed about the state of our tax system in relation to those principles, and that therefore that transparency and that openness about the tax system would start to inform Parliament and start to inform political parties and non-Government actors outside of the system who are informing us about the policies that we adopt here, in order to encourage them to start to develop policies that are more aligned with those principles.

If you say, actually, we don’t disagree with the principles, but we are going to remove information and data from the public domain about how the country is doing in relation to those principles, it means that we continue to operate in the dark. Now, that is inconsistent with, for example, the Fiscal Responsibility Act that was brought in by a National Government in the 1990s, the very point of which was to raise transparency and openness about the state of Government finances, right? That was the point of that legislation. And now the same political parties that brought in legislation in relation to a structure around transparent information are now taking it away when it comes to the tax system. It is an utterly incoherent argument to make.

They say that the reason that they’re doing that is because it’s bureaucracy. We’ve already heard a number of times in this House that there are 1½ fulltime-equivalent people in the entire country whose job it is to execute this law, so it will make zero difference—zero difference at all—to the ability of the Government to give tax cuts. It will make zero difference in the pockets of working New Zealanders, of middle and low income New Zealanders, at all, which is why I raised in the first reading speech: in whose interests is the repeal of this Act being taken?

In terms of the kind of spurious argument that the Act causes bureaucracy and waste, it does not. It creates transparency. It creates accountability. It highlights the inconsistencies that various political parties might have in their tax policies in relation to it. It runs entirely contrary to the coalition Government’s own agreements between its parties around making their decisions on the basis of facts and evidence, because they are saying that they do not want facts and evidence in relation to the tax system. That would be inconvenient to them. That would be inconvenient to the people that they get their money from at the election campaign.

I’m yet to hear an argument from the other side that says that if they—I mean, I’ve heard a number of times that they say that they actually do agree with the principles. I have yet to hear an argument that says why less transparency makes more sense than more transparency. In fact, yesterday the new Minister of Finance, the Hon Nicola Willis, got up and issued her mini-mini-mini-Budget and in that was complaining about the lack of transparency in the Government accounts, even though those accounts are under legislation that requires a Government to report on the state of the books, and it is all there. And now what they’re saying is they want more transparency on that side of the ledger but they don’t want it on the revenue side of the ledger. Why is that? Why would they not want that transparency? In whose interest is it to obfuscate that information? In whose interests is it? [Interruption] This is working, Simon. Keep it up. This is really getting the House going. In whose interest is it that we take away that information from the public domain?

I think the answers to that are obvious, but they will never admit to it, and so they give us these spurious arguments about how the Act is some kind of massive bureaucratic boondoggle because it requires 1½ people to do some work about the state of the Government’s revenue strategies and where we get our money from in order to be able to afford the things that New Zealanders expect their Government to pay for.

So I would like to hear from the Government at some point how repealing this Act is consistent with their coalition agreements for decisions based on facts and evidence. I want to hear an argument on that line. I want to hear an argument from the political parties that complained about the openness and transparency of the last Government about how repealing this Act increases openness and transparency. We have yet to hear an argument that relates to that. I want to hear an argument from the Government side about why they think, if they agree with the principles that are in the Act, it is so important to repeal the Act. If they do not disagree, if they agree with those principles, then they have yet to lay out an argument why reporting on those principles is a bad thing.

I have yet to hear a coherent argument about the exact line between if they think that this is bureaucracy, if they think it’s waste, if they think it’s—how much money will be delivered into the pockets of New Zealanders as a result of this bill? If that is the argument that they are making, how much money will New Zealanders get in their pockets by the repeal of this Act? Because they fought an election campaign on the basis of cost of living and they have yet to make that argument.

STUART SMITH (National—Kaikōura): Thank you, Madam Speaker. For the benefit of the new members in the House, I thought it would be helpful to get an understanding of where this, the original Act that we are now repealing, came from. It was a genesis—an idea—from the Hon David Parker, who is an enthusiastic follower of Thomas Piketty. He’s the French economist, and for those who don’t know his work, I suggest you look it up and it will explain all. So, on that note, I commend the bill to the House.

Hon BARBARA EDMONDS (Labour—Mana): Thank you, Madam Speaker. I had to have a little bit of a giggle after that contribution from the chair of the Finance and Expenditure Committee—

Hon Grant Robertson: All 40 seconds of it.

Hon BARBARA EDMONDS: —a little bit of a giggle at the 40 seconds it took for the chair of the Finance and Expenditure Committee to provide a history as to the Taxation Principles Reporting Act 2023. So I’m going to spend my contribution on the second reading of this bill which, again, has come under urgency with no select committee process—and very much like the leader of the ACT Party, who spent his contribution deflecting transparency, deflecting the reason they should have this bill—I’m going to spend my contribution on providing the people of the public a history of the Taxation Principles Reporting Act 2023, and how we actually got to the point where this Government does not want to be transparent and does not want to be able to provide a reporting framework so that ordinary New Zealanders can understand the principles by which their tax policies, whatever they will be, will benefit them. Because that is the absolute purpose of this bill, despite a press release that is full of contradictories.

So I’m going to provide to this House a reason and the background and the history of how we got to a Taxation Principles Reporting Act, which this bill now repeals, and actually, it goes way back—before Thomas Piketty. It actually goes back to 1776, to Wealth of Nations, Adam Smith’s magnum opus, Wealth of Nations.

The members on the other side of the House are getting exercised about this history lesson that I’m just going to take them through. The reason why the members on that side of the House, from the Government, cannot provide a strong reason to remove the Taxation Reporting Principles Act is because those tax principles have been used throughout generations—throughout centuries—to be able to develop tax policy across the world. It then moved on—and I’m going to move history a little bit closer, a little bit closer to their home, maybe in 2010, when the Victoria University of Wellington Tax Working Group, which was led by the formidable Sir Rob McLeod—he used to be a partner of Ernst & Young and he’s still very much an active commentator on the tax community, isn’t he, Dr Russell and Dr Webb?

That also then led to another review in 2019 by the previous Government, which was the Tax Working Group, to assess the design of New Zealand’s tax system. Time and time again, throughout the ages, throughout centuries, throughout decades, and throughout different Governments—including members who are still in this House, who have throughout those different tax working groups—New Zealand has grappled with this question of fairness and where does the incidence of tax fall in New Zealand. That’s why there have been millions of dollars spent over generations and decades to try and grapple with this question.

So what this Government then did, back in 2011, was we asked the question: “What is the problem that we’re trying to solve? Can we save the public of New Zealand millions of monies in the future by being able to have a data set, to be able to have a framework in which these principles, which we have used over the decades through various economists who have written many books over this?”. We asked, “Is there a way to futureproof it so that it doesn’t matter who is in Government, they can use this framework in order to develop tax policy in New Zealand so that it is fair?”. Because I will admit, fairness has a different definition depending on which side of the House you’re on. I’m not going to say whether that’s right or wrong, although I definitely agree with this side of the House. But fairness has different definitions, and the tax principles therefore try to draw out from those centuries of history, the centuries of economists’ views—basically, what have been the principles that this country has used to develop tax policy since, I think, the late 1800s when our first land tax was actually the first income tax that New Zealand ever had. So what this side of the House then managed to draw out was the different principles which we have used.

Then if you look at the regulatory impact statement for that first Act, it says that Governments around the world are currently facing similar challenges in the form of rising inflation and supply chain shortages, therefore putting pressure on the economy and revenue collection. It then carries on in the form of rising inflation and supply chain shortages, therefore putting pressure on the economy and revenue collection. It then carries on—there are also impacts from technological changes and the impacts of climate change and the changing nature of work.

Basically, that Act provided the background and the history in which the context that the previous Government was grappling with as well as other Governments across the world—and then it covers out through the different reviews that we continued with. But actually, what that regulatory impact statement also referred to—and I’ve met different members across the House who have referred to this—is that the Government then tasked Inland Revenue with collecting information to determine the effective average tax rate paid by the wealthiest people relative to their economic income. Now, this is important, because economic income—yes, it may be on paper, but at any point it can be realised, so we wanted to understand where is that incidence of tax falling.

The Inland Revenue high-wealth individuals research project revealed a startling disparity, and this is a world first, another world first that provided data and evidence to show that there is a startling disparity between the effective tax rates paid by the super wealthy compared with other New Zealanders. Everybody across the House may have a different definition of tax, but actually, that high-wealth individuals project provided the data and evidence. It was a world-first—such a world-first that other revenue jurisdictions were actually asking us: “How did you do it? How did you manage to get this data—because we have been grappling with this as well; we have the same challenges post-COVID, we have the same challenges with climate change.” So we were a world leader.

That individuals project again basically compared the full income of the super wealthy. What it showed was that on full income information from 311 of our wealthiest citizens, the average person in this group pays an effective tax rate of just 8.9 percent tax on their economic income. In contrast, most New Zealanders—and I’m going to hear, probably, time and time again in this House in adjournment debates, us thanking the cleaners; us thanking the security guards. Well actually, those salary and wage earners—if someone earns a salary of $80,000, with no other income, they pay 22 percent tax on that income. That excludes GST. Now, if you add GST, the wealthiest—their effective tax rate rises to 9.5 percent, but you know what? For the other New Zealanders, if you include GST, it goes up to 28 or 29 percent.

That is the evidence and the data that showed that it was unfair. So the Tax Reporting Principles Act therefore tried to provide a reporting framework to show this unfairness—or, actually, just to show what’s happening, because maybe it wasn’t going to be unfair if they did more data. A major obstacle to understanding that unfairness that that project brought out has been the lack of reliable data. So what this Act wanted to do is basically—we’re already framing tax policy based on those principles. Governments across the centuries have been making tax policies based on those principles. What happened was, the previous Government said, “Let’s put that down on to paper so that we can communicate it to the average Kiwi so they can understand, so that that cleaner and security guard, or those who are earning $80,000 who are having to pay more tax than the super wealthy in our country, can at least know that the decision makers here in this Chamber know that they have an ability to be able to have some fairness in this system”, and that’s what that reporting framework is going to provide. It was going to provide the data and the evidence and the transparency which that side of the House has proven over the last two weeks not to contain.

That is why, again, days before Christmas, when a draft report is likely to have been written, they do not want to release that report under this framework. That is why they are rushing this legislation through. But this side of the House absolutely believes that New Zealanders need to know where the incidence of tax is falling. That is why we are fighting hard to ensure that there is transparency. It doesn’t really matter what that side of the House want to say to Kiwis about cost of living—it is really clear by their actions, and their actions matter—that they want to push under urgency something that will help the fairness of our system.

CATHERINE WEDD (National—Tukituki): Madam Chair, thank you. I support the second reading of this bill. On this side of the House, we are focused on what truly matters to hard-working New Zealanders, and that is less tax and a fair tax system. Requiring Inland Revenue to produce additional annual reports would take extra resources, and we would be focusing on the wrong things. We need to get back to the priorities, and that is reducing the cost of living and getting the Government’s books back in order.

The members on the other side of the House talked about how us as new members had little political experience in Parliament. But what I will tell you is that we have a lot of experience working hard in the real world, running businesses, working real jobs, rolling our sleeves up in the orchards and on the farms, being efficient, but being challenged by paying more tax and having more bureaucracy. We understand that to strengthen our economy and reduce the cost of living we need tax relief and less bureaucracy and less redundant reporting. I commend this bill to the House.

INGRID LEARY (Labour—Taieri): It’s a really sad, sad day to see one of my favourite pieces of legislation be so cynically pulled and repealed without a select committee process, and five days before Christmas. I would ask viewers at home to ask why are they repealing it—why are they repealing it?—and why are they doing so at this time?

Secondly, I would like to raise the issue of accountability, and this is an area that I really plan to interrogate with the Minister in the committee stage. Because what this Act did—the one that is being repealed—is it gave a beautiful coherence to the architecture of our financial system. Andy Foster, on the other side, raised the issue of accountability. Well, what they are doing by repealing this bill is taking away that accountability on the taxation side.

We’ve heard in the House today that some of the reasons that they may be repealing it is a fear of data. Now, why would the Government be scared of data? Perhaps it’s not; perhaps they are scared of fairness. And if we look at the timing of the bill, as has been alluded to, there is very likely to be a report sitting in the Minister’s office that contains information that they don’t want the public to see. Is that transparent and is it fair? What is in that report that they are so worried about?

We’ve heard it would be bureaucratic to keep this legislation in place. Two and a half staff members—that’s far fewer, I would say, than those that would be needed to change all the road signs around New Zealand into English first. Although, obviously, Chris Bishop didn’t get the memo because he is still calling it Kāinga Ora.

This bill that we’re appealing helps to inform decisions. It’s around data and information, and we haven’t seen data information in the tax arena. Look at the tax cuts that the Minister of Finance is proposing. There is still no detail as to how they will be paid, despite her repeated promises that she would say how she was going to fund those tax cuts; that information is not out there.

The question that I will have for the Minister is: how will the tax system be accountable to the budgets that it funds? This was raised really eloquently by the Hon James Shaw. Because we have accountability in the budgeting process, but when it comes to taxation, we don’t have a way of understanding how decisions are being made. There is no transparency around the different pillars around fairness. Now, the Act does not purport to say what is fair; what it does is say that the information will be available so that New Zealanders can see for themselves that decisions are being made according to different principles and those principles will have different weightings. That is what accountability in the tax system looks like.

There was a small change that we made in the select committee, which I was really proud of because we added the words “comparative wellbeing” into the principle that was around flexibility and adaptability. That talked about changes in inequality, it referred to the extent to which the tax system keeps pace with technology and so on, and it referred to inequality—and we added “or comparative wellbeing”. Now, the reason that’s significant—and I’d really like to hear the Minister’s views on this when we question him about it—is because wellbeing was also put into the Public Finance Act 1989, in 2020, under section 26M(2)(aa). That meant that there would be reports done on the Living Standards Framework which would show the level of wellbeing being achieved by budgeting.

To have that at the outcome end is one thing, but to have it at the input end—at the taxation end—gives the system a coherence. It means that all the way through the financial system there is a wellbeing lens across it. The Auditor-General has said it is not to make substantive judgments about whether wellbeing has been achieved; it is to inform public discussion so the public can ultimately hold Governments to account in how money is spent. Well, the same should be true as to how money is gathered, and that’s what this report would allow. It would allow those discussions and their engagement, which ultimately leads to more trust in the system, and it enables taxpayers to have certainty about which principles are at stake. That comes up every three years during an election cycle. If they don’t like the way those principles are being applied, they can change the Government.

I don’t understand why this Government is so scared of having that level of accountability. It’s something the Auditor-General wants. We are very disappointed in this bill.

ASSISTANT SPEAKER (Maureen Pugh): The member’s time has expired.

NANCY LU (National): I rise to support the second reading of this bill. Members opposite previously talked about a small amount of fulltime-equivalents being an insignificant cost to the Inland Revenue’s total employees. However, we are not just talking about the cost this year but actually going forward, and we’re repealing this bill to save cost and time going forward. This is what a National-led coalition Government is about: saving cost and reprioritising our service for the betterment of our country and our people.

Kiwis don’t need Inland Revenue to produce additional reports, and so our focus should be on higher-priority measures to address the cost of living pressures and get the Government’s books back in order. So I commend the bill to the House.

Hon Dr DUNCAN WEBB (Labour—Christchurch Central): Kia ora, Madam Speaker. Well, it’s a sad day when the Government calls urgency to repeal a bill which its great evil, according to the other side, is to find out how we’re doing in our tax system.

This is a Government which has said in its coalition agreements that it wants to be evidence-based, but in this most important area of all, it’s hiding from the evidence. What is it that they don’t want to know? What is it that the people who are influencing them don’t want them to know?

We heard from Barbara Edmonds moments ago that the IRD itself independently studied our richest New Zealanders and found the huge disparity in our tax system. Is that what they don’t want to know? What is so dangerous about knowing whether our tax system is equitable? What is so horrific about understanding whether we have horizontal and vertical equity? What is so dangerous about knowing that our richest New Zealanders don’t pay their fair share?

Well, I can understand why they don’t want to know that, because we’ve seen their tax policy already, which is to let the richest New Zealanders off the hook. There are landlords out there that are going to get a million-dollar tax break because of the tax changes that Government wants to put into place.

This study would show that the fairness of our tax system will go backwards under that Government, and it’s no surprise that they don’t want to know it. Do they want to improve our tax system? Absolutely not. That’s why they don’t want to measure it. If you don’t measure it, you can’t improve it. So of course they don’t want to know whether or not we’ve got an improving and a fair and an equitable tax system.

Are they scared? Are they scared of understanding that capital is being preferred over labour? That workers are paying the lion’s share of the tax whilst the owners of capital, who sit on capital increase, don’t get taxed at all? On this side of the House, we want to know. We want to know who’s paying tax and how fair it is, because we are committed to a progressive, forward-looking tax system that changes with society. The dinosaurs over there want to leave the tax system largely as it is, which is inequitable, which doesn’t look after those that need the most, which makes those who can’t bear the burden shoulder the lion’s share.

So why is it that they want to shield their eyes from the fact that there are dirty tax breaks that their mates are taking advantage of? We want to have an IRD which is equipped, prepared, and authorised to look into that.

That Minister there is presiding over a system where the very integrity of the tax system is at risk. He should be utterly ashamed of himself, here under urgency, through the last sitting days of the year, ushering through as quietly as he can an unfair tax system, a system which is less transparent than it should be. And that is going to be the first thing that he does.

So why is it that they’re in trepidation of it being known that the top 1 percent of New Zealanders, in terms of wealth, are paying around about 9 percent of their economic income annually in tax, whereas, as Barbara Edmonds said, a worker on the average wage pays around 28 percent? Is that equitable? Is that fair? He knows it’s not, but it’s his mates that are getting the benefit of this system, so he wants to brush it under the carpet. It’s a Government that doesn’t want to know.

We know the work’s been done. We know there’s a draft report. I’m sure the Minister will be happy to release it. Will you release the report—will you release the draft report? Do you want to answer? I’ll yield if you answer. The Minister is sitting there po-faced because he doesn’t want to answer the question.

Here’s the other question. Why are we repealing all of this Act? Which principle is it that he doesn’t like? Is it the principle of horizontal equity? Is it the idea that people in a similar position should pay similar tax? Possibly not. Much more likely it’s vertical equity—the fact that people who have more should pay more, because we know that doesn’t happen at the moment, and this Government, the Government on the other side of the House, doesn’t want to address that issue.

David Parker laid the foundations with a study of the wealthiest New Zealanders, with the passing of this Act, to make substantial changes to our tax system. The evidence is there. Whilst on the other side of the House they talk about it not being legitimate in some way, it’s an independent study using verifiable information that itself was not previously available, but we changed the law to make it possible to look at those wealthy New Zealanders. So the foundations are laid, but over there they just don’t want to know. They want to keep it on the low-down.

What I want to know is what that Government is going to do in terms of understanding these inequities, these imbalances in our tax system? Even the tax breaks that they’re now going to create, the landlord’s tax breaks, the deductibility of interest—we know what that’s done to the market. We saw the housing market price increases. We saw the crisis in house prices, which were contributed to by the fact that landlords were getting tax breaks on interest payments. We know that one of the things that’s going to happen when they restore that tax break is that house prices will go up. So much for caring about ordinary New Zealanders, because under that Government, homeownership will be further away for many homebuyers. Of course what they’ll be doing is lining the pockets of their landlord mates who’ll buy more houses and deprive first-home buyers of their first home.

So once again we see a Government that doesn’t really care about the effects that the tax system has on the wider economy. They’re going to be preferring landlords over renters. They’re going to be preferring landlords over first-home buyers. And are we going to see this tax break? Are we going to see rents go down? Not even the Prime Minister will lower his rents. He won’t commit to that on his rental properties. I wonder if the Minister has a few rental properties that he’d like to talk about. Well, he’ll get another opportunity.

Because we know these parties—well, at least the ACT Party, at least they’re upfront. They just don’t like tax. They just want lower taxes. They want flat and low taxes. Have a look at their policy platforms. So at least they’re upfront about it. As for New Zealand First, on the other hand, well, we know that the influences on them see them doing things like pushing for a roll-back of smoke-free and a roll-back of careful labelling of therapeutic products. Over there they’re a little more behind the scenes. They don’t want us to know who their backers are. They don’t want us to know why it is that they’re fronting for landlords, but we do know that they’re looking after their mates.

So it’s no surprise to me that when we look at the tax principles, tax principles which they say—and I loved the comment that we don’t all agree what fairness means. Well, I’ll tell you what, you’re on your own there, mate. I’ve got a pretty good idea that a progressive tax system is a fair tax system. These principles have not come out of nowhere. They’re widely and internationally accepted. Over there we have an island of unfairness. It’s a shameful example where we’ve got a bunch of people who say “We don’t believe in an equitable tax system. We don’t believe in a tax system that doesn’t distort. We don’t believe in a tax system that isn’t efficient. We don’t believe in a tax system that’s flexible and adaptable, certain and predictable.” These are the principles they don’t believe in.

So that Minister’s got some real answering to do. I’m looking forward to the committee of the whole House stage and I’m looking forward to the Minister answering some questions on exactly those matters.

DAVID MacLEOD (National—New Plymouth): Thank you, Mr Speaker.

Hon Kieran McAnulty: Here we go: 30 seconds of magic!

DAVID MacLEOD: You know, I was just closing my eyes just for a moment, and I could have sworn that’s what a speech from Karl Marx would have sounded like. I stand in support of this Taxation Principles Reporting Act Repeal Bill. This National-led coalition Government doesn’t need a tax principles Act to tell us our principles of tax. Our principles on tax are very simple: Kiwis should pay less of it. And that’s just what this Government is planning to do. And you’re absolutely right—30 seconds. I stand here, and I commend this bill to the House.

A party vote was called for on the question, That the Taxation Principles Reporting Act Repeal Bill be now read a second time.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 55

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 6.

Motion agreed to.

Bill read a second time.

ASSISTANT SPEAKER (Teanau Tuiono): This bill is set down for committee stage immediately. I declare the House in committee for consideration of the Taxation Principles Reporting Act Repeal Bill.

In Committee

Part 1 Repeal of this Act

CHAIRPERSON (Barbara Kuriger): Members, the House is in committee on the Taxation Principles Reporting Act Repeal Bill. I will start by reminding members that wording of the closure motion has changed in this Parliament. The new wording is, “That debate on this question now close.” I refer members to Standing Order 137(1). Members, we come first to Part 1. This is the debate on clause 3, “Repeal of this Act”. The question is that Part 1 stand part.

Hon GRANT ROBERTSON (Labour): Madam Chair, I thank you for the call, although it may not be in my long-term interests that you’ve given it to me. Part 1 of the bill repeals this Act, and I want to start with a very simple question for the Minister, and that is: why do we have this clause? We’ve been in the House over the course of the last—well, it’s three or four days and then last week with the Government’s agenda of repealing anything it can find. None of the bills that have done that has included this type of clause. They’ve done repeals, but they don’t repeal the repeal. Just to be really clear, that’s what this clause is doing. What this clause does is repeal this bill. It’s kind of remarkable in its own way. It does give a date for that, which is 1 January 2025. I reckon I might know the answer to this question, but it is actually a genuine question for the Minister, because all the other bills that we’ve done that repealed all sorts of really good and important things that the previous Government did didn’t have a clause that repealed themselves. I think we’ve just got an epidemic of repeal. The Government is so excited about repealing things that they’re going to repeal their own bills as well as the Acts that they were repealing before. So that’s exactly what clause 3 of the bill does. It repeals the repeal. Now, we’re going to get ourselves into some pretty farcical territory shortly, so I would like to know from the Minister: why do we have clause 3?

Hon Dr DEBORAH RUSSELL (Labour): I was interested in this repeal clause as well because, as the Hon Grant Robertson says, it states “on 1 January 2025.” It’s interesting because, reading through the bill, I sort of said, “Hang on a second, why that repeal date?” It took me a while to sort it through because it is an unusual clause. The thing is that in the Act that this bill is repealing—so in the Taxation Principles Reporting Act 2023—in section 10(1) of the Act which is being repealed by this bill, it says that, “The Commissioner must give the Minister an interim Commissioner’s report annually, before the end of a calendar year, for the tax year that ends in the calendar year, using the best information that the Commissioner has on hand at that time.”

So that’s all quite confusing because we’ve now got three dates in play: we’ve got a calendar year and we’ve got a tax year and then we’ve got the date that this bill is coming into the repeal. Now, ordinarily, I was thinking that if we’re repealing an Act, you’d expect to see a specific date for that Act. But instead, we’ve got the tax year, the calendar year, interim reports—so a whole lot of stuff floating around. I could work it out—it took a while, but I worked it out to see what was going on.

Hon Grant Robertson: Don’t do his work for him.

Hon Dr DEBORAH RUSSELL: But it was confusing in respect to—no, no, I’ve got the tax year, the calendar year, and that repeal date. So I would like the Minister to explain it for the benefit of this House. I think he needs to explain to this House why we have those several dates in play, to make it clear for all of us what we’re actually talking about here.

After all, he’s the one with the officials and he’s the one who’s promoting this. So I would expect him to be able to explain it for the benefit of those of us here in the House and also for those who are watching at home—hi Dad, I know you’ll be watching; daughter of a tax person, it’s genetic. So I would actually like the Minister to explain that to us.

So that clause, section 10(1) in the Act which is being repealed, the dates in there, how the calendar year and the tax year relate, and then how that relates to this date of 1 January 2025, which is in the bill.

CHLÖE SWARBRICK (Green—Auckland Central): Thank you, Madam Chair. I just note that this clause 3 in Part 1 of the Taxation Principles Reporting Act Repeal Bill is of course a very narrow clause. But I think it is very important to take it into the full context of the legislation that we are speaking about.

So just for those who are following along at home, such as Dr Deborah Russell’s father, what this clause states is that this Act—this Act itself which the Minister is seeking to pass today will itself be automatically repealed from our statute book on 1 January 2025. It is effectively a repeal of the repealment Act. Which means, if I’m to take it correctly, they are here seeking not only to do the undoing of this legislation, but to leave it without a trace on our statute book; to hide away the proof that they have repealed legislation which would have enabled New Zealanders to have consistent and clear reporting on the efficacy and operation of our taxation system.

So my question for the Minister is: why is it that he is seeking to repeal the repealment legislation? Is it that my intuition on this point is correct, that he is seeking not only to do this deed but to do it in such a way that it is now gone without a sense of any trace or any ability or any evidence—evidence and data mind, that this had happened in the first place?

Hon Dr DUNCAN WEBB (Labour—Christchurch Central): Oh thank you. I think you’re right, Chlöe Swarbrick, that they’re simply covering their tracks here. But I guess mine’s a technical question. I’m pretty sure, but I’d like the Minister’s assurance—and also kind of the authority for the point—because, of course, repealing a repeal: does that put you back essentially to the status quo ex ante? That is to say: does that un-repeal the Taxation Principles Reporting Act?

Now, I suspect that that’s not the case—and I think, somewhere in the mists of time, I remember that the repeal of a repeal doesn’t un-repeal the repeal—but I think it’s quite important, seeing that you are going to repeal a repeal, that you explain exactly how it is that that doesn’t put us back to the status quo ex ante and the Taxation Principles Reporting Act springs back to life? Whilst that would be a good thing, I suspect that’s unlikely. But I would like you to confirm exactly how that is the case. Let me know if you need a hand.

ARENA WILLIAMS (Labour—Manurewa): Thank you, Madam Chair, for the opportunity to take this first call in the debate. I have an amendment to this clause 3 of Part 1 to propose to the Minister, and I hope you will consider it. I have been in a select committee context with the Minister before, and I commend him on his discursive approach within those select committee rooms. I hope that he will consider this amendment, because it would allow that kind of engagement which he himself is very good at around the table of a select committee to determine which way forward this Parliament can take to finding a broader-based tax system and one that works for everyone.

So my amendment reads, “In clause 3, delete the words after ‘repealed’ and insert, ‘on whichever date occurs first—(a) 1 January 2026, or (b) the day after an inquiry of a committee of the House of Representatives is reported back to the House of Representatives on those parts of the Taxation Principles Reporting Act that should be given effect in policy’.”

I haven’t suggested that any part of this bill be retained. What I’m suggesting for the House is that the House consider a select committee piece of work to determine what principles within the Act, particularly in Schedule 1, should be retained within the commissioner’s policy remit. All of these things in Schedule 1 are things that the commissioner should be taking into account and should have some consideration of in the course of their ordinary work—that’s a given. In the course of the public service that Inland Revenue provides to the people of New Zealand, that would continue within the department itself.

What I’m seeking to do here is for the select committee to be able to inquire into how to retain the principles in some form of policy that is publicly available, which members of Parliament can use to, say, consider policy options when having these sorts of tax debates.

I would suggest, myself, that there is a place for this schedule to be retained as a new Schedule 9 to the Tax Administration Act, however I haven’t proposed that here. What I’m asking for is that the Minister might take a chance to consider that select committee’s work as a way to find a bipartisan way forward.

I am going to continue this call because I know that there is something going on. So let me tell you, Minister, the opportunity for us to look into this as a select committee would be really warmly received, I think. You’ll see that there are a number of colleagues on my side of the House who are enthusiastically taking calls in this committee stage. We have questions for you about how you seek to reach the principles that are provided in Schedule 1, and those are things that I think we can all probably agree on. Whether they are in primary legislation, regulations, or policy is a question that we all can engage on, that we can engage with experts on who might advise us of the right approach.

Minister, I know you will have read the works of people like Dr Craig Elliffe, who was my supervisor for my tax Master’s. The kind of evidence that we can seek from the experts would be really good and we would love to have a discussion with you about that in the committee room. Thank you, Mr Chair.

Hon SIMON WATTS (Minister of Revenue): Mr Chair, thank you very much for the opportunity. I do appreciate a bit of time there; we had a little bit of an issue up here at the front desk, but I’m glad that that’s been resolved.

What is clear from the contributions—I’ll go through each of the members, but we’ve obviously got a bit of duplication already on the same matter. Hon Grant Robertson, in terms of clause 3, around why we’ve got that clause—similar to the Hon Deborah Russell’s points around the repeal—member for Auckland Central, Chlöe Swarbrick, also noted around the repeal, and the Hon Duncan Webb’s question was around the repeal. So let’s cover the repeal point in clause 3.

So basically, clause 3—and it is quite simple—of this Act is repealed on 1 January 2025. The purpose of that clause—and it’s not the first piece of legislation that’s had that in it; what it does ensure is that there is a period of time in which the bill and the legislation is and does remain within the public forum, on the IRD website for about a year, before it is moved off. This makes sure that, just as a courtesy to people, they can see that the bill has done its job for 2024, and before it is tidied away on 1 January 2025. So that’s the purpose of the clause, nothing more complex than that. There is precedent around that, and that will cover off those four questions.

In regards to the last question from Arena Williams in regards to her tabled amendment, which is in regards to the same aspect, the reality is that the first part of that clause, which is basically changing the name—which doesn’t seem aligned with the principles of the Act. Clause 2, in terms of adding an additional 18 months—as I’ve said there in clause 3 around deleting the words in terms of “1 January 2026”, it’s not necessary for having such an elongated time for that bill to be up. One year is about right, based on the advice that we’ve got, and so the suggestions in this amendment are something that we will not be supporting.

Hon GRANT ROBERTSON (Labour): I thank the Minister for responding there, but I do believe he’s opened up a number of questions on this part. The first of those for me is the choice of “one year for people to see that the Act has done its job.” I think in the interests of transparency, New Zealanders deserve to know for time ad infinitum what’s happened in this House today, because otherwise this fulfils the very thing that Opposition members spoke about in the first and second readings. That is that there seems to be a lack of transparency from the Government about tax policy. So the idea that clause 3 will make this entire debate that we’re having this morning vanish. And magically, on 2 January 2025, when someone, perhaps Dr Russell’s father, wakes up and says, “What did they do to that tax principles Act?”, and they will go and look, and there’ll be nothing. In all seriousness, if the Government is so proud and so urgently bringing this law to the House, how on earth can clause 3 be the kind of thing that they would do for a matter that they considered to be so urgent?

So I think the Minister needs to give a bit more of an explanation beyond the idea that it’s just a time period chosen so that people for a short period of time can know that an Act existed, as opposed for a longer period of time. I’m not aware of the precedents that the Minister has mentioned, so I would also like him to tell us what precedents those are so that we can understand what the logic was for those laws, because I’m not sure, but I would question whether or not they were Acts that were, for example, repealing something that was in place for a very short time, where the report in the case of this bill we know has been drafted and is ready to go. And it does beg that question that, actually, what the Minister is doing is trying to make sure this is scrubbed from history so that the questions won’t continue to be asked about a report that clearly will have been finished and should be available to the New Zealand public. So I don’t believe that the Minister has sufficiently answered the questions that I raised, and I would like him to answer these two questions: firstly, what are the other Acts that he’s relying on for precedent? Secondly, why does he feel that on the 2 January 2025, no one deserves to know that this Act passed through Parliament?

CHLÖE SWARBRICK (Green—Auckland Central): Tēnā koutou, e te Māngai. I just really wanted to continue prosecuting, particularly, this point on the repeal of this repeal Act, because it is a really, really important point when it comes to that trail of bread crumbs that is necessary for future lawyers and law students and politicians and people who may be interested in gathering the data and the evidence, which this Government has said that they are so intent on.

Because just reflecting on the regulatory impact statement, which accompanies this legislation and is indeed quite light—a good old two- to four-pager, which, you know, is quite an interesting contrast to the 17-odd pages of the regulatory impact statement for the initial legislation. But there’s a point here under the header “Views from consultation with stakeholders and the general public: Views of the general public”, and I quote: “Due to time constraints, no consultation with stakeholders was undertaken on the repeal of the Taxation Principles Reporting Act 2023.” This is “no consultation with stakeholders … undertaken”, no consultation whatsoever.

And now we have a clause here in the form of clause 3 saying that after a year on the statute book, there is going to be an automatic repeal of the evidence that this repeal occurred in the first place. We also have contained within this regulatory impact statement some really important points I think that we’ll continue to prosecute throughout other clauses, but this is an important one, particularly, on that point that there has been no consultation. Now, there’s an intent to repeal the repealment legislation, which is that “Inland Revenue”—here I’m quoting—“intends to consider means of improving its current reporting under the Tax Administration Act 1994, subject to internal resourcing and government priorities.” From that, we are to assume that IRD is still going to undertake some form of reporting on something akin to something like these principles, yet we have no idea what format that might take, what resources might be necessary, despite also knowing that the only resources that are necessary for them to do the reporting against the legislation as it currently sits in the status quo of the statute book is 2.5 fulltime-equivalent, 0.06 percent of the IRD’s staffing fulltime-equivalents.

But this point, again, I really put to the Minister—because there has been absolutely no consultation, as is here in black and white on the regulatory impact statement as issued to him—that there has been no consultation with stakeholders undertaken. It has been one of his core points of contention in putting forward this legislation that there was some disconcert from some of the submitters with some of the principles throughout the fulsome select committee process that we undertook at the Finance and Expenditure Committee in the middle of this year. Yet now he’s looking to remove this legislation and to then remove the removal of the legislation without a trace. It’s a Houdini kind of endeavour, isn’t it, Minister Watts? So I really want to ask him: what comes next from this point? If he is to remove the evidence that he removed this legislation from the statute book for transparency and accountability, what comes next?

Hon Dr DEBORAH RUSSELL (Labour): Mr Chair, we’ve had a lot of talk of repeal today and this is a really unappealing repeal of a repeal. I’m going to appeal the unappealing repeal of the repeal—there’s a lot of peeling going on, like Christmas bells. It’s kind of like “Ding Dong Merrily on High” around here at the moment, isn’t it.

I just want to go back to the question I asked before, because the Minister did not answer it. He just explained the nature of the repeal clause again, but he did not answer the question that I asked, and it’s actually quite an important one, because anyone reading this bill might look at that repeal clause and wonder what on earth is going on here because it simply refers to the Act. You have to go back through the definitions and things to find out what’s going on. So I’m going to refer the Minister back to section 10(1) of the original Act, the Taxation Principles Reporting Act, and I still want that explanation from the Minister. It is for the benefit of other people in this Chamber who perhaps don’t have the specialised tax knowledge that people like Nancy Lu, Arena Williams, and Barb Edmonds have.

I’m assuming the Minister has this knowledge. I know he has been an accountant, I think, in his previous life, so he’s worked in that space. So I’m assuming he does actually know, but I’d like him to explain it for the benefit of people who don’t. The relationship between the repeal date in the bill, 1 January 2025, and section 10(1) of the Taxation Principles Reporting Act—so that’s the relationship between the calendar year, the tax year, and the repeal date in this bill. We haven’t had that explanation yet, so I’d like the Minister to demonstrate that he actually does know what is meant by the tax year and how it relates to the calendar year and how, then, that relates to the unappealing repeal of the repeal of the legislation.

ARENA WILLIAMS (Labour—Manurewa): Thank you, Mr Chair. I will begin this call, but welcome your guidance if this is the wrong place to debate this. The Minister has sought to debate my amendment to clause 1 in this part, where he began his contribution in answer to my colleagues’ questions, by speaking about my amendment to clause 1, which is to delete the “Taxation Principles Reporting Act Repeal Act 2023” and replace it with the “Taxation Principles Reporting Act Repeal and No Reporting on New Zealand’s Taxation Settings Act 2023.” This is a good amendment, Mr Chair. However, if I was to give a call on that now, I would be in the wrong part, but I’m seeking to debate with the Minister what he has raised in the chair and I hope my colleagues will support the questions that he has asked me.

I’m taking the call on clause 1, which the Minister spoke to. The reason for my proposal to amend the name of the Taxation Principles Reporting Act Repeal Act 2023 is that it doesn’t include the reference to what the repeal of this would actually do. The actual effect of this bill right now is that there is a piece of work which the IRD has conducted, at the expense of the New Zealand taxpayer, into the distribution of wealth within New Zealand, particularly for high net-wealth individuals, and they would be expected to make an interim report to the Minister very shortly and then a full report in the 2025 calendar year. That work is largely done. The effect of this bill that the Minister has proposed would be to keep all of that work and put it in a box and boot it out the window.

So I want to make that clear in the wording of the name of this bill, which the Minister has sought to debate with me in this part—and the reason why we need to change the name of the bill is because we need to be really clear about the wastage that this Minister is proposing, about the public work that has gone on for the benefit of the New Zealand people that is already done that will be put in a drawer, filed away, and never used again should this bill progress. I don’t want that to happen. On this side of the House, we don’t think that is a good use of taxpayers’ money and we think that the Minister should release the report today so that we can debate it within this committee stage.

However, if he does not, then it must be the case that this committee should change the name of this bill and make sure that the New Zealand public are just clear that that’s the Minister’s preference—that he would keep from the New Zealand public the work that has already gone on by the hard-working people at IRD, and we would never know what they were going to tell the Minister, and that this bill is progressing in urgency. The reason for its urgency is because he doesn’t want to know. He’s days away from receiving the interim report and he wants to make sure that the empowering legislation that he’s probably already got on his desk—he doesn’t want to read that over summer. He doesn’t want to be sitting in his office reading that over summer. He doesn’t want to know how his taxation policies that he must defend as the Minister of Revenue in his party—he doesn’t want to know how that will affect the low-income workers of New Zealand but, as well, the hard-working homeowners who he represents in his electorate of the North Shore; he doesn’t want to know. So he’d better change the legislation so he doesn’t get that work.

That is why the name of the bill must change or the Minister should take a call and explain that he will be tabling that report very shortly.

Hon SIMON WATTS (Minister of Revenue): Thank you very much, Mr Chair. Look, I do acknowledge the energy in the room as we head into Christmas for a clause which has eight words, just for the record—eight words are in this clause, and we’ve heard a lot of clauses inside it.

As I outlined clearly in my first response to the questions in regards to that, I’ve covered off why that clause is there. The question raised by the Hon Grant Robertson, I think, was in regards to the other bills that there were. We had the fair pay repeal legislation, which included a clause similar to that within this. So just to reply to that question: different time duration acknowledged, but the view is that 12 months is an appropriate time.

The questions from Chlöe Swarbrick and also from the Hon Dr Deborah Russell: those are, again, consistent around clause 3, which I’ve already covered.

Again, going back to the amendment on the Table, well, the title of the clause is not part of the part that we’re currently discussing. I think you can be pretty clear that the title on this bill is pretty clear on what it’s doing and that’s exactly what it says, so anything other than that is not going to be accepted.

Hon KIERAN McANULTY (Labour): Thank you very much, Mr Chair. I’d have to say I was a little bit disappointed with the answers that have been provided so far. They’ve been very fair questions, in my view, and I hope to provide a fair question myself as I rise to speak in support of the proposed amendment in the name of Arena Williams, which proposes to insert that, as one option, the day after an inquiry of a committee of the House of Representatives has reported back to the House of Representatives on those parts of the Taxation Principles Reporting Act, that should be given effect in policy. What on earth is wrong with that? If the bill is going to be repealed and wiped off the books and the dust’s covered over it, why not at least look into it first?

So my question to the Minister is: what’s changed? Why has his view changed, because I was sitting here listening to the response and I was thinking, I’m pretty sure that before the election, Simon Watts was a huge advocate for ensuring that the public had their say. So I had a little bit of a nosy and I found here a quote from Hansard, which is part of a debate on a bill that went to select committee and had a full public hearing—and I quote—“I placed a motion on the table to extend the process, to give them more time—more time for scrutiny, to listen to those submissions—but it is clear from those members on that side of the House that they have no interest in listening to Kiwis”. We did listen, because we had a select committee process, and there’s a clear difference between that and this.

As we’ve seen throughout urgency, there’s been no opportunity for the public to have their say, and in this instance, not only have the public not had their say but, as is proposed in this clause, they’re going to wipe it. They’re going to wipe all record of the fact that there was a bill, there was a repeal bill, and we’re just going to fritter it away.

However, Arena Williams has come up with an elegant solution, in my view—as she has done throughout this entire period of urgency. She has proposed—look, fine, we get it. As the Minister has explained, the purpose of clause 3 is to indicate that this bill will be repealed. We get that—fine. But why not do that after we have an inquiry, because the public hasn’t had their say.

The Government says it’s not needed. Why don’t we put that to the test—why don’t we put that to the test? I imagine that the report is actually written, as has been talked about. Give it to the select committee, have a nosy, and I tell you what—here’s a promise. I haven’t consulted my colleagues, but I’m pretty sure they’ll back me on this. If, after the independent inquiry, it says, “You know what? This isn’t needed. This is a waste of time.’’, we’ll go, “Fair enough—fair enough. We’re not into that.”

Hon Barbara Edmonds: I’m not sure I can give my support to that.

Hon KIERAN McANULTY: Ha, ha! Yep. All right, I’ll reconsider my proposal.

But it’s a fair question, and it’s a question that quite clearly has a range of responses, and that’s good. We’re here to debate. But the only response that really matters right now is that from the Minister, so let’s hear it. Will you give it a go? Will you stick up for what you used to believe and let this go to an inquiry?

Hon BARBARA EDMONDS (Labour—Mana): Thank you, Mr Chair. Really great—

Hon Kieran McAnulty: Oh no!

Hon BARBARA EDMONDS: Yeah, I’m going to take this call. I too want to support the amendment that’s been put forward by the formidable MP for Manurewa in relation to having a select committee review after this bill to be able to actually provide some assurance to the public of New Zealand that actually the actions taken by this Government can be scrutinised because, clearly, under urgency we have not had that opportunity.

I’m a little bit indifferent as to what the Hon Kieran McAnulty has proposed, but you know, I can take things into consideration, you know, just a bit more. I might just have to think about that one. But, you know, I absolutely agree with the Hon Kieran McAnulty that a select committee process should follow this. And there’s also something that I have seen over the last couple of weeks that we’ve been under urgency; even external people such as Professor Dean Knight from Victoria University has also said that, actually, this is something that should be done as part of good process when a bill goes through under urgency—is to allow select committee process to go through it.

When I asked that question of a previous Minister, the Hon Chris Bishop, in the departmental disclosure statement, it actually made reference to: “The 100-day initiatives will be reviewed by the Government.” So I actually specifically asked that Minister who is going to undertake that review and that Minister’s response was Ministry for the Environment and Treasury. So my question to the Minister is: given that this bill meets that criteria that it is within the 100-day period, that it is going through under urgency, who is going to undertake that post-implementation assessment? Is it going to be Inland Revenue? Is it going to be Treasury? I still agree with the member from Manurewa that it should be a select committee to look to it, but if the Minister does not agree with that particular amendment, then, actually going back to what his Government has put in the disclosure statements, who’s going to be doing that post 100-day implementation and assessment?

Yesterday, when I—actually, it wasn’t long after the Minister was just made the co-captain of the Parliamentary Rugby Team, so I have to congratulate you on that one. I don’t think you quite understood what you were signing up to given, you know, possibly Fiji, South Africa, and there’s only $57 in the balance book, but I congratulate you on that. So when I turned my mind to this particular repeal bill, I too actually questioned when this actually comes into force and I had to go talk to a bunch of lawyers—it happens to be just on this side of the House over here, and it had to be clarified to me this is what they thought was the interpretation of clause 3. And I did worry because I thought, hang on, Inland Revenue drafters—they’re an absolutely amazing bunch of drafters that I have had the privilege of working with for over 10 years when I worked for Inland Revenue. I thought, no, they can’t get this wrong, I’m pretty sure that they have this right. And I still haven’t had that clarification from the Minister as to—exactly what Dr Deborah Russell has gone through—how this interacts with the reporting Act, which is then going to be repealed, and then this repeal bill which will become an Act which will then be repealed in January 2025.

I’m still trying to understand how that alignment works, so I’d really like the Minister to be able to really clarify. The Minister did talk about the precedents around the fair pay agreements, that there was a particular bill that, again, went through under urgency with no select committee process, and that that was in that bill. However, I want to ask the Minister: have there been other tax bills similar to this or tax bills where this type of precedent has been used? And then the Minister also, in his response to one of the earlier questions, said that, basically, they’re going to be maintaining it for a year. So my next question is, given that the purpose and intention of this particular repeal bill is to remove wastage and to remove bureaucracy, given that we have seen right throughout the regulatory impact statement that it’s only going to be 2.5 full-time equivalents (FTEs), how many FTEs will be required to maintain these pieces of repealed legislation on the Inland Revenue—I’m guessing maybe the Inland Revenue website, if you can clarify where it’s going to be held, given that we want to be able to have it on some record where members of the public can find it. I want to understand from the Minister how many FTEs will be required for that.

Hon Dr DUNCAN WEBB (Labour—Christchurch Central): Thank you. Look, in the spirit of the new committee stage and a conversation, I just want to get an answer to my original question, which wasn’t answered at all, which was: does a repeal of a repeal restore the original legislation; if not, why not? If the Minister could respond to that, that would be great.

MIKE BUTTERICK (National—Wairarapa): I move, That debate on this question now close.

Hon BARBARA EDMONDS (Labour—Mana): Thank you, Mr Chair. I’m just going to finish my contribution, and it will be very short while we’re waiting for the Minister to get some advice on it, to be able to provide a response to the committee. What other tax bills has this precedent been used in? Not just other bills; I’m talking about tax bills, because there are particular drafters that draft these tax bills, which are different from the Parliamentary Counsel Office.

I also want to know how many fulltime-equivalents will be used to maintain this repeal of a repeal bill over the next year, up to January 2025, given that the purpose and intention of this repeal bill is to remove waste and bureaucracy. I’d be really keen to know what the Minister’s response is in relation to that, especially given we do not have a select committee process, we do not have the ability for the public or for members of the Finance and Expenditure Committee, the great committee that it is, to be able to ask Inland Revenue officials or an independent adviser, which we always have as part of tax bills, these particular questions. Because even for myself, who has practised in tax, at my first blush at looking at this bill, I too was confused. I do have confidence in the Inland Revenue drafters and I just want to understand if the Minister can provide those answers to those very different questions.

Hon SIMON WATTS (Minister of Revenue): Thank you very much, Mr Chair, and thank you for those contributions.

I’ll start off with, firstly, the, I think, partial contribution by the Hon Kieran McAnulty—until his colleague interrupted and he sat down. But the reality is we won’t be taking him up on their offer, so I think we’ll just cut to the chase on that.

The other contribution from the Hon Barbara Edmonds was in regards to, again, the prioritisation between these clauses, so let’s work it through. The commencement date is the date that the Taxation Principles Reporting Act is repealed. That will be the date at which that actually occurs and it gets published. So that would be the date which follows post Royal assent.

Then clause 3, which we’ve extensively been through, over and over, the eight words—at that point this bill, on 1 January 2025, in effect will be repealed. Basically, what happens with these bills is that they go on to the legislation website. Once they are repealed, they go into another bucket of old bills that have been repealed. So from a point of process, that’s what’s happening. It’s no more complex than that. It’s eight words in that clause. I appreciate there’s a lot of interest in that, but it is as simple as that.

There were a couple of other questions from the Hon Duncan Webb, that cover, I think, in terms of where there were examples of other bills where we’ve used that. I’ve given an example of the one that was being done in the last few days. And, as I said, why we’re doing it is it does, in effect, clear up the statute book. So those are the three questions.

HELEN WHITE (Labour—Mt Albert): Thank you, Mr Chair, and I’d like to congratulate the Minister on his new role. I want to know about the report and the work that’s been done pursuant to the bill that is going to be repealed, and whether the Minister would look at really putting hard-working New Zealanders’ money to good use in letting us see the work that’s been done and, perhaps, consider an extension in terms of the repeal for a few years so that we can see this information and its value and then make a considered decision about whether in fact it provides value for New Zealanders.

It does seem to me that the work that’s been done—even if we may I disagree on whether in fact that is good value for money, the money has now been spent, largely. I would like the Minister to answer very plainly whether he has such a report already, or if he does not, how much work would be involved in getting that report into a position where we would be able to see it. If it involves particular people, what happens to those people? Are they going to be made redundant? In which case, it’s on notice, and, actually, they’ve got time on their hands that they might be able to finish this work. So what’s the cost of retaining those people till they finish this time?

And I guess my bigger point here—and I would like an answer to this, and I am absolutely genuine about this—is the taxpayer is someone who we all know; it’s us. We are all paying tax at the moment.

CHAIRPERSON (Teanau Tuiono): Can the member bring the focus to clause 3, please?

HELEN WHITE: Yes. Sorry. So in a situation, is it really something where we want to repeal an Act if in fact we are about to see whether that taxpayer is being overtaxed? Given the position of the Government on the situation, I’d like a genuine answer as to why we wouldn’t wait and see whether in fact the tax balance is right, even in this current work that’s been done. Thank you.

CHAIRPERSON (Teanau Tuiono): Just in terms of the next contributions, they do need to be focused on clause 3. I do note that previous contributions have focused on clause 3 and have brought up new material, but continuing on from here, we need to keep that focus.

Hon Dr DEBORAH RUSSELL (Labour): Thank you, Mr Chair. I don’t like having to do this, but I have still not received an answer from the Minister on the initial question I asked, and this is starting to worry me. So let me reprise the question, and I’ll tell you why it’s worrying me.

All right. So we have three dates in play here. So first of all is the date for the repeal of the repeal, so that’s 1 January 2025. So this bill has a self-repeal clause in it that’s set at 1 January 2025. The problem is that as I read the bill, as a tax person, I looked and I thought, “Hang on a second; what’s that date and why?” I couldn’t quite understand it, so I went back to the original Act and I looked, in particular, at the date at which the first interim report is due under the Taxation Principles Reporting Act, and I’m going to direct the Minister to it. It’s section 10(1), where it says, “The Commissioner must give the Minister an interim Commissioner’s report annually, before the end of a calendar year,”—so that’s the second date that’s in play—“for the tax year that ends in the calendar year,”—so that’s the third date that’s in play.

As a tax person, it took me a little while to sort that through, but I got it. It just took a moment of reflection and I got there, but I wanted the Minister to explain—he has not done this yet—the relationship between section 10(1) in the Taxation Principles Reporting Act and clause 3 of the Taxation Principles Reporting Act Repeal Bill.

Now, that’s the question I’ve asked three times now and still have not received an answer. The reason I’m starting to get a bit worried is because I’m not sure that the Minister understands this. Now, that’s alarming, because Ministers ought to understand the nature of the legislation they’re putting in front of the House. In this case, it’s a repeal bill. I would anticipate that the Minister would understand the nature of the original bill, the Taxation Principles Reporting Act 2023.

Now, these are common concepts in tax: tax year, calendar year, and how they relate. I would anticipate that the Minister of Revenue and his officials would be able to explain that to us and to the House. Now, I’m happy to step outside and explain it to people, but that’s not my role in the House. But I would like the Minister to explain it to the House for the benefit of the House and for the benefit of people watching. So, Minister, the ball is in your court on that one. Answer the question and I’ll stop asking it.

ARENA WILLIAMS (Labour—Manurewa): Thank you, Mr Chair. I have 10 questions for the Minister about clause 3. I will take him through my first six questions, and then I would really appreciate a short call after that about clause 3.

Now, as the Hon Kieran McAnulty explained, there is a real purpose in spending some time within a select committee context, or another group context, to find a way through this, where we’re appealing some taxation principles that we actually all agree with. The Minister hasn’t said that we do not all agree with these taxation principles. He has not said that he disagrees with sunlight as the best disinfectant to work through a bipartisan way forward on these tax principles, and so I’m here to help. I have some suggestions.

The first question that I have for the Minister is: will he be taking to Cabinet a proposal for a Cabinet committee to consider those principles within the Taxation Principles Reporting Act 2023, which should be given effect in policy?

My second question is: would he consider a futures forum - like setting, which is a tool of the Scottish Parliament, to consider those principles of New Zealand’s taxation reporting regime as it exists now, particularly Schedule 1, and whether those are still relevant and how they should be given effect in policy, regulation, or secondary legislation which would be subordinate to the Tax Administration Act? A futures forum for the Minister’s benefit is a tool which uses a cross-partisan approach, alongside experts, to conduct inquiries into issues which are long-term political issues for the good of a nation. Two examples from Scotland’s Futures Forum are its inquiry into drug use in Scotland, which was a cross-partisan approach to healthcare, and an inquiry into their superannuation settings.

The third question I have for the Minister is: would he consider that forum being chaired by a presiding officer of this House and it being a genuinely bipartisan forum where members of this House were represented in proportion to their party vote that they received, or one representative per party? Because that would genuinely give us the opportunity to have a cross-partisan way of working, most similar to the Business Committee.

My fifth question for the Minister is: would he consider me chairing it? I would love to.

And the sixth question that I have for him before I ask the further four is: would he consider Dr Dean Knight as a special adviser, given his interest in this debate and the submissions that you have heard from my colleagues on this side of the House about his advice about how to proceed with this particular clause 3?

INGRID LEARY (Labour—Taieri): Thank you, Mr Chair. Look, I have a new question on clause 3, which is really, I know that the Minister has made the point that it is a short clause, but I think what I haven’t heard from the Minister is: what is the reason for the repeal of the repeal? My question to the Minister is: would he be able to give to the committee today the reports or any advice or information or drafts that he has received pursuant to the Act which is being repealed to show the intention of why he is doing the repeal?

Now, if, for example, there is information in that report that shows that there aren’t great disparities, that things are going all according to plan, and everything looks fair, that would really behove well for the Minister to share that, because it would show a genuine intention from the Government that this is really about bureaucracy, which is what has been said in the House.

But without seeing that report, and given the timing of this repeal and the repeal of the repeal, the fact that we’re doing it without a select committee process and then trying to remove the breadcrumbs, as Chlöe Swarbrick said, I think it’s really important for the transparency to show the work that’s been done and, therefore, New Zealanders who are watching this debate—and this is the only debate that we’re having on this bill. This is the only time that New Zealanders will get to hear from the Minister, get to hear the intention behind what he is doing and why there is this complexity in clause 3.

That would be a very revealing thing, because the Minister could say anything that he wants about the clauses, but actually the data would speak for itself and it would be great evidence for this committee to have. It would be great evidence to show that all the statements made by the Minister and others on his side of the Chamber—they’re saying that this is about busting bureaucracy. That is an admirable thing to want to do, to bust bureaucracy, but when we put that in the context of 2½ full-time employees and we haven’t seen even just a sliver of any of the data that has been gathered or what work has been done, it’s very difficult for us and for the New Zealanders watching this debate to be able to make an informed judgment about what the purpose is for clause 3 and why there is this complexity around it.

So this is a new point, because my colleagues have asked about why it’s complex, but I think what I’d like to hear from the Minister is the motivation for doing it, as shown by the evidence. So, Minister, if you cannot bring that report today or share with us the work that has been done on it, my subsequent questions are when could you bring that to the House? Would you be prepared to do that? Even if this repeal does go through before Christmas, would you be prepared to show the House at a later date, rather than having to go through an Official Information Act process? Because that would be much more efficient and less bureaucracy for you than having Official Information Act requests come from every side of the House. So when could you do that?

Or if you are not going to, then I’d really like to know your reasons why you’re not going to, because this is really material evidence to show your intention and so that we can accept, at face value, the answers—or the semi-answers, because I haven’t heard them answered yet, as my colleagues have said—to this really important, strange removal of the breadcrumbing under clause 3. So I’d really like to hear that from you, Minister. Will you share the report? Will you do it today? If not, when will you share it with the House, and will you do that proactively rather than subject to Official Information Act requests?

If you’re not going to do that, can you please give us a really clear reason why you’re not going to, so that we can feel reassured that there isn’t sort of some kind of hidden agenda, which is partly what I’m hearing you say, so that you can evidence the things you’re saying about this being just a simple eight-word clause. That’s what I’d really like to hear from you, Minister.

Hon SIMON WATTS (Minister of Revenue): Thank you very much. Again, I acknowledge the questions, and I’m going to be free and frank in regards to my responses on these questions. I do not have a copy of such report and have not seen any copies or views in regards to that report. So there is no magic report that is sitting on my desk, in my office in regards to that.

The reality is, going back to the questions around dates by the Hon Deborah Russell, around the tax year dates—so the report which is going to be technically required under legislation which we are now repealing would be as at the 31 March tax year this year. That report needs to be delivered by 31 December this year. And this bill will, in effect, repeal the need to do that reporting and that will be effective post this bill passing through a Royal assent. So the timeline in terms of those dates is as follows, and, to be honest, it is as simple as that.

To the questions from Arena Williams—and I acknowledge the feedback—no, I will not be taking any papers to Cabinet in regards to the principles. We’re pretty clear. We do not see the need for this legislation in regards to what it’s purporting to do. The reality is that the tax system already, and Inland Revenue and many policy aspects within that already refer to tax principles. That’s not a new concept. The tax principles actually, in the annual report from Inland Revenue, include a wide range of information in regards to the integrity of the tax system. So the conversation around the member asking in terms of, you know, am I as Minister open to suggestions by the member in terms of other aspects that aren’t in that annual report that might be of value, of course, and I’d encourage the member to get in touch and I will consider that in a best interests and genuine manner. So I think that that covers off the questions around principles, covers off the questions in regards to dates, and, from Helen White and Ingrid Leary, covers off the questions in regards to the actual report.

CHAIRPERSON (Teanau Tuiono): Members, before we move to the next call, I just want to acknowledge the probing questions of members, but I would also note that it’s the prerogative of the Minister how he chooses to address them or not, and I’m asking and looking for new material in terms of this clause. I do understand that you want to get specific answers, but that is the prerogative of the Minister, and members need to understand that.

ARENA WILLIAMS (Labour—Manurewa): Point of order, Mr Chair. Thank you, Mr Chair. I hope to seek your guidance on Speakers’ ruling 79/4, which sets out at (1)—and I will read it to you—it was ruling of Speaker Tolley in 2020. “I encourage you to keep your contributions focused”—which is what I did in my last contribution; I did not use my full five minutes, which she refers to there—“and [it is] relevant to promote good interaction with the Minister in the chair. We have the ability then to take short calls, and have a series of questions and answers between members and … Minister[s].” Her ruling there was that someone in my position could be confident that they would receive the next call after the Minister had answered a short series of questions. As I’ve indicated to the Minister, I have 10 questions to ask him, and a further four, given what he has told me, and I’d like to take the next call.

CHAIRPERSON (Teanau Tuiono): I shall take some advice. In your following contribution, I do want you to focus on clause 3, and I acknowledge that the Hon Barbara Edmonds will allow me to give you the call.

ARENA WILLIAMS (Labour—Manurewa): Thank you, Mr Chair. Speaking on clause 3 of the Minister’s proposed amendment bill, I have an amendment on the Table to refer the Act that is being repealed to a committee of the House. The Minister has indicated to me that he is not considering a committee, but he said in his contribution recently to the House that he would encourage me to get in touch with him and to further discuss these principles. He also told the House that the principles are something that IRD uses frequently. So I hope to help him with some further assurances to the House, which can get us there and then can leave us all happy around the House to vote for his amended clause 3.

So my further three questions are: would the Minister be open to an amendment to my amendment to make Schedule 1 of the Act, which is being repealed here, a new section 9 of the Tax Administration Act? It would only require one small operative provision to make sure that that schedule was given effect and remained in the statute book. The reason why I’m proposing that within this clause 3 is that it’s relevant to when this entire Act that the Minister has proposed is repealed and we then lose all of the legislation on the book. So what I’m proposing here is sort of like a transitional savings provision whereby Schedule 1 of the Act which is being repealed is then retained somewhere on our statute book, which I think should be the Tax Administration Act.

My eighth question to the Minister is: given what he has told me in answers to his questions, will he write to the Commissioner of Inland Revenue and recommend that it become the practice of the commissioner to publish those principles that are within Schedule 1 that the commissioner has taken into account when preparing the annual report that the Minister spoke of? That would be really useful, I think, for transparency within our system and would improve the operation of clause 3, which repeals the Act in its entirety.

My last question to the Minister is, given that he does not support my amendment, clause (b), whether he would consider, then, doing the intent of that, which would be by giving a 90-minute briefing to the Finance and Expenditure Committee alongside the Commissioner of Inland Revenue. Thank you, Mr Chair.

Hon SIMON WATTS (Minister of Revenue): In the interests of free and frank conversation in regards to those questions, it’s not something that I’m going to consider. The whole purpose of this repeal bill is to take the legislative requirement around the reporting out, and hence the purpose of the bill. So to, in effect, take on board the feedback that you’re providing, or the suggestion, would, in effect, go against the principle of the bill. In regards to the conversation around tax principles and writing to the commissioner, look, the reality is that the annual report for IRD is publicly available. There’s a page at the back in which you can provide feedback and suggestions in regards to information in regards to that. That’s open for all New Zealanders to do so. As I’ve indicated to the member, if they wish to converse and write to me about their ideas around what’s not in that report that might be of use, then please feel free to do so and I will consider that in good faith. But in regards to any other aspects around protocol, this is a very simple bill. It is repealing a reporting requirement which the Government do not believe is necessary. That is the effect of the bill. On that basis, we’re not going to be considering the amendments that are proposed by that member.

Hon BARBARA EDMONDS (Labour—Mana): Thank you, Mr Chair. Always charitable this time of the year, and a really great contribution there from the MP for Manurewa.

We’re going to clause 3, in response to a question that I gave to the Minister, and he addressed it in the sense that the maintenance of this particular repeal bill will go into a bill box. Now, my—

Hon Grant Robertson: Bucket.

Hon BARBARA EDMONDS: Oh sorry—bill bucket. My bad—a bill bucket. The reason why I question this in relation to clause 3 is because clause 3 provides the date in which that particular bill bucket closes or gets filled up or disposed of or whatever, which is in January—

Hon Simon Watts: Comes in a sleigh.

Hon BARBARA EDMONDS: What was that, Minister, sorry? I didn’t hear you.

CHAIRPERSON (Teanau Tuiono): He said, “Comes in a sleigh.”

Hon BARBARA EDMONDS: Oh, OK. So January 2025, which goes to clause 3. But, again, the reason why—and I understand from various speakers across that side of the House and the Government side of the House—this bill needed to be repealed was because of the wastage and the bureaucracy. Therefore, the bill bucket, which will be filled up by January 2025—I’m trying to get through my train of thought here—how many fulltime-equivalents will be required to maintain that bill bucket, given that the purpose and intention of this repeal bill is wastage and bureaucracy? I think that is a valid question in relation to clause 3, because clause 3 is when that bill bucket closes—in January 2025.

So my question is to the Minister: does he have any advice as to how much that bill bucket maintenance is going to cost? Has he received any information as to how many full-time employees will be required for the maintenance of that? And if he hasn’t, why has the Minister not asked for that information, given the purpose and intention of this bill, which clause 3 brings into effect?

Then my second question—and this is in relation to, again, another response by the Minister around clarifying how this interacts with the Taxation Principles Reporting Act, which is going to be repealed. I thank the Minister for providing that clarification, because he said the reporting time frame is for the tax year ended 31 March, and I’m assuming 2024.

So in relation to that, does that mean that there’s been seven months that the Inland Revenue has been able to develop a report? The Minister has confirmed that he has not seen the report. I’m not sure whether he’s asked for the report. But within that seven-month period, has he got any advice from his officials as to what they’ve done in that seven months, how much that has cost for that seven months of work, so that we here on this side of the House can be able to assess that? Because, again, this bill and the foundations on which this bill are predicated are, according to the Government, wastage and bureaucracy.

So those two relative questions in relation to clause 3, given that’s when this repeal bill is coming into effect. Again, I just acknowledge the Minister and thank him for clarifying the time frames in relation to 31 March, 21st, and I think when this bill comes into force so it’s not delivered on 31 December 2023.

INGRID LEARY (Labour—Taieri): I have a new question, and it follows from comments made by my colleague the Hon Barbara Edmonds but also following from the answer that the Minister gave to my question about the release of any work done. I want to thank the Minister for engaging so authentically and directly with that very authentic and direct question. If I recall his answer correctly, he said that there was no magic report on his desk or whatever. My colleague didn’t ask this question, but I’d like to pick up on her train of thought where she said she didn’t know if the Minister had proactively asked for information. She’s talking about the cost of full-time employees and the cost of gathering the data.

So my question to the Minister, in response to what he told me, and in the spirit of this engagement as a debate, Minister: will you proactively get some of the data collated for us, even if it’s not in a final form? I hear you when you say that you haven’t been given any advice by your officials. The question is, really, not only have you proactively asked for it—which my colleague asked—but my question to you is: will you proactively ask for this information? Not how much the reporting of it would cost or the full-time employees—all of that. This is a new question around: will you actually give us some substantive data—

CHAIRPERSON (Teanau Tuiono): The member is starting to repeat.

INGRID LEARY: —could you please collate some of, and proactively ask your officials to collate what they have, even if it’s not in a perfect final form so that we can make an assessment about what work has been done. So I’ll ask that, also because the Minister did raise that when he was answering my question. Thank you.

CHAIRPERSON (Teanau Tuiono): The time has come for me to leave the Chair. The House is suspended and will resume at 2 p.m.

Sitting suspended from 12.58 p.m. to 2 p.m.

Resignations

Hon Kelvin Davis, New Zealand Labour Party

the Hon Kelvin Davis

SPEAKER: Members, I wish to advise the House that I have received a letter from, resigning his seat in the House with effect at 11.59 p.m. on 6 February 2024.

Oral Questions

Questions to Ministers

Question No. 1—Prime Minister

1. Rt Hon CHRIS HIPKINS (Leader of the Opposition) to the Acting Prime Minister: Does he stand by—I better make sure I get the wording right! Does he stand by all of his Government’s statements and actions?

Rt Hon WINSTON PETERS (Acting Prime Minister): In the context in which they were said and with the facts that were then known, yes.

Rt Hon Chris Hipkins: Does he agree with Todd McClay that Winston Peters is “fast earning himself an international reputation as an apologist for Russia”; if not, why not?

Rt Hon WINSTON PETERS: Because that statement was made without any relevance to the new circumstances that member finds himself in. He’s in Opposition. Ask questions that represent the Opposition, not when he was in Government.

Hon Grant Robertson: What?

Rt Hon WINSTON PETERS: It means ask questions that were relevant after this Government was formed, and not before. He should know that. That’s why he’s sitting over there.

Rt Hon Chris Hipkins: He didn’t say he didn’t disagree with it! Does he agree with Chris Bishop that Winston Peters often “makes false claims to the media and the public.”; if not, why not?

Rt Hon WINSTON PETERS: This may be a slow constitutional lesson, but the questions that we are required to answer pertain to when we formed this Government and thereafter, and probably for the next 25 years. In his case, he should be explaining who his possible unlucky successor is.

Rt Hon Chris Hipkins: Does he agree with Paul Goldsmith that “Peters’ big mouth is harming Kiwi businesses”; if not, why not?

Rt Hon WINSTON PETERS: This is another lesson that’s going to take a long time to sink in, and that’s why we would like to relieve this Parliament for a few days and for a few weeks for them to lick their wounds because they are not learning the lesson that they lost. As their former deputy leader Michael Cullen said, “We won. You lost. Eat that!”

Rt Hon Chris Hipkins: Does he agree with the Rt Hon Sir John Key, of Winston Peters, “Historically, he has always been sacked by prime ministers. It’s a very different style to mine and it’s rearward-looking.”?

Rt Hon WINSTON PETERS: As everybody knows, Mr Key made a lot of statements, but privately he’s a secret admirer of mine.

Rt Hon Chris Hipkins: Does he agree with David Seymour that Winston Peters has “fallen out with National twice, with half his own colleagues within New Zealand First, even though he hand-picked them. I mean, he can’t work with anybody. I think you’ll find that Chris Luxon is ultimately far too principled to try and work with them too.”, and, if not, why not?

Rt Hon WINSTON PETERS: They say that all is fair in love and war and—dare I say it—politics. Those things that are said on the campaign—some are meant to be true, some are slightly inflated, and some are sometimes wrong. However, those words, again, said by Mr Seymour and Mr Luxon’s actions, and mine as well—we’re off to form a long-term, safe, successful Government.

Question No. 2—Finance

2. Hon JAMES SHAW (Co-Leader—Green) to the Minister of Finance: Does she stand by the principle in her Government’s coalition agreements that “decisions will be based on data and evidence”?

Hon NICOLA WILLIS (Minister of Finance): Yes. I stand by the full principle in the coalition agreements, which is that “decisions will be based on data and evidence, with programmes regularly assessed to see if they are delivering results.”

Hon James Shaw: In that case, does she stand by her statement that she has “seen evidence that the living costs of lower-income New Zealanders are based on a range of things”, and, if so, what data and evidence has she seen that increasing bus fares will lower the living costs of low and middle income New Zealanders?

Hon NICOLA WILLIS: I have seen information—which I would hope the member would also have access to—which shows that living costs consist of a range of things. Bus fares are one of those things. A very important factor is also what people’s after-tax incomes are. This is a Government that is committed to lifting after-tax incomes, including by delivering income tax reduction next year.

Hon James Shaw: So is she saying that increasing bus fares will decrease the cost of living for low-income New Zealanders?

Hon NICOLA WILLIS: That is not what I said. What I said is that we are a Government that is committed to addressing the cost of living across a range of factors, including ensuring that people have higher incomes—including those who use buses.

Hon James Shaw: What data and evidence has she seen on how much rents will decrease by and when, as a result of the changes to the brightline test?

Hon NICOLA WILLIS: The brightline test, having been extended to 10 years, has had the effect of stopping some people selling their properties, because they are trying to avoid that tax. I’ve not seen any evidence that extending the brightline test to 10 years lowered rents.

Hon James Shaw: What data and evidence has she seen on how much money will be returned to the pockets of New Zealanders by reducing the transparency of our tax system by repealing the tax reporting Act?

Hon NICOLA WILLIS: I reject the assertions in the member’s question. We have a very transparent tax system. We don’t need a silly Act that makes IRD write silly reports.

Hon James Shaw: So how much money will each New Zealander receive as a result of the repeal of the Act?

Hon NICOLA WILLIS: The purpose of the repeal of the Act was not to deliver direct money to New Zealanders. It was consistent with our coalition’s view that the Government should be focused on priorities. That member was a member of a Government that wrote endless reports about everything—and very little was delivered. We’re going to be quite different.

Question No. 3—Finance

3. MILES ANDERSON (National—Waitaki) to the Minister of Finance: What reports has she received on the state of the New Zealand economy?

Hon NICOLA WILLIS (Minister of Finance): Yesterday’s half-year update showed that New Zealand faces a number of economic and fiscal challenges, in particular the toxic combination of high inflation and interest rates, a slowing economy, and rising unemployment. But despite that challenging outlook, confidence in the economy is returning. ANZ’s Business Outlook shows business confidence is at the highest level since March 2015, and inflation expectations among businesses are the lowest in two years. We’ve got a lot more to do in the coming weeks and months, but it’s an early vote of confidence in our Government’s plan to beat inflation and get New Zealand’s economy back on track.

Miles Anderson: How are Kiwis responding to the Government’s first steps to rebuild the economy?

Hon NICOLA WILLIS: ANZ’s consumer confidence survey released earlier this week shows what ANZ described as “A hint of Christmas cheer”, as consumer confidence continues to bump up. In promising news, inflation expectations fell below 4 percent to 3.9 percent, the lowest level in three years. We are moving quickly to support the Reserve Bank in its fight to beat inflation, reducing Government spending, reducing costs on business, and clearing out broken regulations so we can get this economy moving again.

Miles Anderson: What economic challenges were revealed in the half-year update?

Hon NICOLA WILLIS: Yesterday’s half-year update showed that with the last Government having let inflation soar, interest rates will have to remain higher for longer to get the inflation genie back in the bottle. That is tough news for Kiwis, who are struggling with the cost of living and now facing big hikes in the cost of servicing their mortgage. Our Government knows New Zealanders are doing it tough and we also know the only way to get ahead is with a strong economy. Low inflation, low interest rates, and consistent economic growth—that’s what Labour inherited in 2017 and it’s what we’ll be working hard to deliver again.

Miles Anderson: What next steps is the Government taking to support Kiwis with the cost of living?

Hon NICOLA WILLIS: Our Government is committed to delivering tax relief for hard-working New Zealanders. To support that commitment, yesterday we announced $7.5 billion of savings—our first three weeks of work to restore fiscal sustainability. It is no surprise that for six years Kiwis didn’t receive a cent of tax relief. When you have an addiction to spending, you just can’t afford to let New Zealanders keep more of what they earn. Our Government is setting out a new chapter, cutting the waste, delivering the basics, and letting New Zealanders spend a bit more of their own hard-earned money.

Hon Grant Robertson: Does she agree with National MP Miles Anderson, who said, “You would think if you were going to do tax cuts that they would be best to come in on 1 April, wouldn’t you, at the beginning of the tax year, so maybe they will be addressed in this mini-Budget. They’ll need to be included, anyway.”, and, if not, what message does she have for Mr Anderson?

Hon NICOLA WILLIS: My message for Mr Anderson is: congratulations on winning your fine seat. You are going to be a fine representative, and I believe you will be someone who will stand up for farmers, the productive economy, those who run tourism operations, and those who create jobs and incomes in this country, so keep up the good work.

Hon Grant Robertson: Is Miles Anderson correct that any tax cuts should be addressed in the mini-Budget, and why weren’t they?

Hon NICOLA WILLIS: I think Miles Anderson is correct that New Zealanders yesterday enjoyed learning that this Government, in just three weeks, has made a $7.5 billion downpayment on tax relief, that we remain committed to delivering tax relief in July next year, and I think New Zealanders are also of the view that while Grant Robertson is obsessed with the arcane details of IRD tax programmes, actually, we’re a Government that’s getting on with it.

Question No. 4—Finance

4. Hon GRANT ROBERTSON (Labour) to the Minister of Finance: Does she stand by all of the fiscal and economic commitments made in the coalition agreements signed by National, New Zealand First, and ACT?

Hon NICOLA WILLIS (Minister of Finance): Yes, subject to final consideration and decision making by Cabinet.

Hon Grant Robertson: Will the total value of the savings and new revenue initiatives in the list that she released yesterday be used to fund the tax cuts programme in the coalition agreement?

Hon NICOLA WILLIS: As the member knows, savings, reprioritisation, and revenue can all contribute to the consolidated fund—

Hon Grant Robertson: Oh, so that’s how we’re going to do it now.

Hon NICOLA WILLIS: —to the accounts of the Government. Yes, we will be saving money, we will be reprioritising money, we will be raising revenue from new sources such as better audits at the Internal Revenue Department, and all of that will support two things. Yes, it will support income tax relief. It will also support better books.

Hon Grant Robertson: That’s heavy lifting there. Was the table of savings and initiatives that she issued in hard copy in the Budget lock-up yesterday a Treasury document?

Hon NICOLA WILLIS: Sorry, the member will have to repeat his question.

Hon Grant Robertson: Was the table of savings and initiatives that she issued in hard copy in the Budget lock-up yesterday a Treasury document?

Hon NICOLA WILLIS: That was a table provided to me by Treasury that had gone through a Treasury assurance process.

Hon Grant Robertson: What are the “good estimates” that Treasury has given her of the cost of her tax cut policy that she talked about on Radio New Zealand this morning?

Hon NICOLA WILLIS: Treasury have provided me with indicative costings of what it would cost to deliver on National’s personal income tax plan. They’ve caveated that carefully to say that it does depend on how we design that policy. According to the coalition agreement between National and ACT, we are still taking detailed design and implementation advice.

Hon Grant Robertson: Do the concepts of ACT’s income tax policy as a pathway to the delivery of tax cuts—that she noted just now in her answer and in her media release yesterday—include the reduction of the 39 percent top tax rate?

Hon NICOLA WILLIS: No.

Hon Grant Robertson: What other elements of ACT’s income tax policy remain on the table?

Hon NICOLA WILLIS: We are having detailed discussions. We’re taking a range of advice. There are a lot of options. What we also share in common is this: we want to deliver income tax relief next year, but it is our view that, in principle, where we can, we should allow New Zealanders to keep more of their own money. We shouldn’t be a Government that just keeps spending and spending and spending with very few results to show for that. New Zealanders had six years of that, and they didn’t like it very much.

Hon Grant Robertson: Does she agree with Cameron Bagrie that he is surprised that she is doubling down on tax cuts and they “would not be top of the pops for me” right now, or indeed, the OECD’s view that such tax cuts would add to inflation?

Hon NICOLA WILLIS: I’m not surprised that Cameron Bagrie has a view; he is entitled to it.

Hon Grant Robertson: Does she agree with the editorial in the New Zealand Herald this morning that her hyperbole will only serve to undercut her credibility in the long run, and will she join me in some taxpayer-funded hyperbole aversion courses, which apparently some colleagues think I need too?

Hon NICOLA WILLIS: I’m sure that the member and I have many things in common. There are also many things that differentiate us. One of the things that I hope—

Hon Grant Robertson: The time I went to bed last night being one of them.

Hon NICOLA WILLIS: —and I’m working with this fine team of people to deliver is that we will be people who, when we say things, we deliver them. We will be people who make things happen and deliver results. And yes, it was very nice to see you last night, Mr Robertson.

Question No. 5—Housing

5. JAMES MEAGER (National—Rangitata) to the Minister of Housing: What recent announcements has he made regarding Kāinga Ora?

Hon CHRIS BISHOP (Minister of Housing): Today, I have released the terms of reference for the independent review into Kāinga Ora - Homes and Communities, which was announced earlier this week. As a Government—[Interruption]

Hon Grant Robertson: He’s been demoted—there’s been a reshuffle.

SPEAKER: It is the last question time of the year—

Hon CHRIS BISHOP: I’m just pondering the number of jokes I could make about demotions on the other side.

SPEAKER: While I’m speaking, you’re not. It is the last question time of the year. Just try and keep it a little bit seemly. [Interruption] Well, you know what I mean: less noisy.

Hon CHRIS BISHOP: As a Government, we are deeply concerned about the performance of Kāinga Ora - Homes and Communities. Their operating deficit is already at $520 million and is forecast to continue to increase. This hits the Government books directly and so it’s important that Kāinga Ora’s financial position is sustainable. The terms of reference announced today will allow us to get answers to these crucial questions on their finances.

James Meager: What are the terms of reference he announced earlier today for the Kāinga Ora review?

Hon CHRIS BISHOP: The terms of reference include the financial viability of Kāinga Ora - Homes and Communities, asset procurement and management, engagement with communities and tenants, tenancy management, their remit, and the current institutional arrangements and whether they incentivise better performance. The scope we’ve set will allow us to really get under the hood of Kāinga Ora and see what’s working and what isn’t. It will look at financial performance, the efficiency of their building and construction practices, as well as the things that impact Kiwi communities, like how they manage badly behaving tenants. I’m looking forward to seeing their findings and recommendations so we can get Kāinga Ora back on track.

James Meager: What do his recent Kāinga Ora announcements mean for hard-working New Zealanders like those in mid- and South Canterbury?

Hon CHRIS BISHOP: I thank the member for that very good question and admire his advocacy for those people. Kāinga Ora’s performance impacts every New Zealander, including those in mid- and South Canterbury, those who need support, or who may be looking for support in the future. It also impacts every New Zealander who pays tax, and they deserve to see their hard-earned tax dollars spent wisely. That’s why we are very focused on getting Kāinga Ora back on track.

Question No. 6—Finance

6. Hon Dr MEGAN WOODS (Labour—Wigram) to the Minister of Finance: Does the Government intend to implement the National Party’s climate dividend policy; if so, will all the funding currently tagged to the Climate Emergency Response Fund be used to pay for it?

Hon NICOLA WILLIS (Minister of Finance): In answer to the first part of the question, yes, and consistent with our coalition agreements this will be subject to final consideration and decision making by Cabinet. In answer to the second part of the question, the mini-Budget yesterday confirmed decisions to enable the climate dividend, including returning funding from the Climate Emergency Response Fund, returning funding from the Government Investment in Decarbonising Industry Fund (GIDI), and the National Land Transport Fund.

Hon Dr Megan Woods: Will every household receive an equal split of the total dividend funding pool adjusted for household size?

Hon NICOLA WILLIS: As the member would know if she had read the climate dividend policy which she referred to in her primary question, it is our intention that the climate dividend be used to support income tax reduction.

Hon Dr Megan Woods: Will the climate dividend scale with the carbon price?

Hon NICOLA WILLIS: The member would have to repeat her question.

Hon Dr Megan Woods: Certainly. Will the climate dividend scale with the carbon price?

Hon NICOLA WILLIS: I’m not sure what the member is referring to. The climate dividend is intended to be the proceeds of the emissions trading scheme, and we intend that those proceeds will be used to support income tax reduction.

Hon Dr Megan Woods: Does she agree with the Treasury: “over the long term, the total cost of achieving emissions reductions targets and addressing the impacts of climate change will be significant and is likely to exceed provisions made in the forecasts”?

Hon NICOLA WILLIS: The Government is committed to meeting our climate change commitments, and as part of our mini-Budget we considered the climate implications of returning funding from different initiatives including GIDI and the Clean Car Discount. We also considered how decisions might impact our ability to meet future emissions budgets. From the advice I have received, I do not expect mini-Budget decisions to pose a significant risk to achieving our first emissions budget.

Hon Dr Megan Woods: Isn’t it true that she has no intention of meeting any recognised criteria of a climate dividend with her so-called climate dividend, and what it is is no more than a raid on funding for emissions reductions spending to fund her tax cuts?

Hon NICOLA WILLIS: No, and I’ll tell you what I won’t do either: raid money from hard-working New Zealanders to give big cheques to profitable businesses like BlueScope Steel and Fonterra. Hard-working Kiwis deserve that money.

Question No. 7—Prime Minister

7. TĀKUTA FERRIS (Te Pāti Māori—Te Tai Tonga) to the Acting Prime Minister: Does he stand by his Government’s statements and policies on Te Tiriti o Waitangi?

Rt Hon WINSTON PETERS (Acting Prime Minister): That is the Government’s wont to do, but given that some parties in this House believe that the Treaty of Waitangi is an evolving document, they are confusingly arguing that we should not stand by our statements.

Tākuta Ferris: What examination and research, if any, has the Government undertaken into the adverse effects on Māori of the legislation currently being passed under urgency?

Rt Hon WINSTON PETERS: The reality is that the legislation being passed under urgency is for everybody in this country regardless of their gender, background, their creed, or where they came from. We treat people all the same and don’t have special treatment based on ancestry, which some in this House prefer.

Tākuta Ferris: Has the Government applied any Tiriti-based analysis on the policies currently being heard under urgency; if not, why not?

Rt Hon WINSTON PETERS: The Treaty-based analysis which this Government refers was written 101 years ago by a Māori who got his law degree in the record time in this country in just two years flat. His name was Sir Apirana Ngata. That’s our authority; what’s yours?

Debbie Ngarewa-Packer: Point of order, please, Mr Speaker. I believe Standing Order 112, relevancy to the question—this question isn’t about Tā Apirana Ngata or Ngāti Porou. It is about Te Tiriti, which was written before the existence of Apirana Ngata. If we could return to the kaupapa, please.

SPEAKER: Yes, but the question asked what authority the Government was relying on, and I think that was a reasonable answer in that regard.

Debbie Ngarewa-Packer: But that, with all due respect, again referring to Standing Order 112—relevancy—there is absolutely no relevance of Tā Apirana Ngata being used in this House, and being misrepresented. That was a hundred years old, and we’re talking about today.

SPEAKER: Well, with respect, I think it would be odd not to accept that Sir Apirana Ngata had a reasonable degree of authority when speaking about the Treaty.

Tākuta Ferris: How can he think it’s appropriate to deliberately exclude the Tiriti partner in the deliberation of legislation that will have a profound impact on the lives and wellbeing of whānau, tamariki, and even the mokopuna of himself?

Rt Hon WINSTON PETERS: I thank the member for acknowledging that the legislation will have a profound impact upon all the people he talked about and a profound impact for the better, based on their genuine needs, like was announced yesterday with respect to certain rates of treatment that were targeted directly to the Māori people—in this case, on the basis of need, not some preferential basis that arises from the beltway of Wellington or the sociological department of the universities with no connection with ordinary Māori.

Debbie Ngarewa-Packer: Again, a point of order, please. Standing Order 121, “Personal reflections”—while we understand that the Deputy Prime Minister may not reflect and even rate Māori who go to university, that is a personal reflection and doesn’t address the question that was put down.

SPEAKER: No, I don’t think it constitutes a personal reflection. I’ve been listening very carefully to the answers, because I understand there’s some sensitivity, but I don’t think that’s a fair suggestion with regard to the Deputy Prime Minister’s answers this afternoon.

Debbie Ngarewa-Packer: Point of order, please?

SPEAKER: Is it a new point of order or is it a continuation of the point of order?

Debbie Ngarewa-Packer: No, it wasn’t new.

SPEAKER: Well, give it a go; it’s the last day.

Debbie Ngarewa-Packer: Oh, your generosity—thank you, e te Pīka. It is the offensive reference and certainly there is, I guess, a duty of care on us if we do look at 121 and the fact that we don’t want people out there thinking that there are ordinary Māori and not ordinary Māori. Every Māori matters, especially those who have opinions, and this is a personal reference. And kei te pai tērā, if that is indeed the Deputy Prime Minister’s views, but it isn’t one that should be reflected in the House. Everyone should be treated and talked about equally. [Interruption]

SPEAKER: Excuse me. With all due respect, I think that if the member were to look at the Hansard responses from the Rt Hon Winston Peters, it would be hard to conclude that he was saying anything other than that. We’ll move on—question No. 8—

Hon James Shaw: Point of order, Mr Speaker. Thank you, Mr Speaker. In that exchange just now about the previous points of order, the Rt Hon Winston Peters was referred to as the Deputy Prime Minister, whereas in the question he is the Prime Minister or the Acting Prime Minister, and I just wanted some clarity about whether he was speaking as the Deputy Prime Minister or as the Prime Minister.

SPEAKER: OK, well, the point is that the point of order was not directed in the way perhaps it should have been, so I responded appropriately to that. But he is here today. He is acting as the Prime Minister—no question about that.

Rt Hon Winston Peters: Great news, James!

SPEAKER: And I’m sure he’s very happy for the nation to have learnt that by virtue of this question time.

Question No. 8—Health (Pharmac)

TODD STEPHENSON (ACT): Thank you, Mr Speaker, and merry Christmas.

SPEAKER: Thanks very much. Merry Christmas to you too, Todd. Are we going to go around the whole House? It could take a while. But, actually—

TODD STEPHENSON: Just a special merry Christmas for you, Mr Speaker.

SPEAKER: —we’d all like to get home for Christmas.

8. TODD STEPHENSON (ACT) to the Associate Minister of Health (Pharmac): Why is the Government planning to change rules relating to the availability of pseudoephedrine?

Hon DAVID SEYMOUR (Associate Minister of Health (Pharmac)): Mr Speaker, merry Christmas. The Government, in its coalition documents, has a commitment to make pseudoephedrine-based cough and cold medicines available again after over a decade of New Zealanders being denied these medications. The simple reason is because when you’ve got the winter ills, you need the good stuff that works. People agree that pseudoephedrine medicines are more effective, and, unfortunately, the original purpose of restricting them—that was to stop the supply of methamphetamine—has completely failed as the price of that drug has, sadly, gone down and it has become more available. So the ban didn’t work; let’s get the good stuff back for the winter.

Todd Stephenson: Will the increased access to pseudoephedrine put us out of step with the rest of the world?

Hon DAVID SEYMOUR: No, it will not. Countries such as Australia, the United Kingdom, the United States, and Canada all have pseudoephedrine-based medications, which are able to be purchased without a prescription. This change will move New Zealand into line with countries that we generally like to compare ourselves with.

Todd Stephenson: Does the Minister think the removal of the ban on pseudoephedrine could inform his approach in other areas of regulatory reform in New Zealand?

Hon DAVID SEYMOUR: Well, I think it’s right across Government that we intend to take a very responsible approach to regulation. We don’t want to make rules if they don’t have a clear problem to be solved or if the benefits of the rule don’t exceed the cost. And clearly in the case of banning pseudoephedrine, the benefits have been trifling, the cost to people’s welfare have been large, and so the rule will go. And, yes, in conversation with the Government’s dynamic, young Minister for Regulation, I’ve learnt that that’s going to be our approach to many matters.

Question No. 9—Health

9. GREG FLEMING (National—Maungakiekie) to the Minister of Health: Tēnā koe e te Māngai. Meri Kirihimete. What recent announcements has he made on uplifting immunisation rates for vulnerable population groups?

Hon Dr SHANE RETI (Minister of Health): I’d firstly like to thank the health sector for keeping us safe over this past year and for their care and attention over the upcoming holiday period. Thank you. This morning the Prime Minister, Minister Potaka, and I visited Porirua to announce a $50 million package to help local providers to lift the immunisation rates for the most vulnerable in their communities. Low immunisation rates put children at risk of life-threatening, and, in some cases, deadly illnesses such as whooping cough and measles. It is critical that we take preventative health steps such as immunisation to protect those most in need and to drive better health outcomes.

Greg Fleming: What feedback has he received about this announcement?

Hon Dr SHANE RETI: I was very pleased to be joined at this event by local providers, iwi partners, and, of course, hard-working community-based health workers. It was great to hear from these providers on the work they do. We all have shared determination to make a difference for those with the greatest need and who have the highest risk. Delivering healthcare in communities helps relieve the burden on our under-pressure hospitals, and this Government looks forward to supporting local organisations who do such outstanding work for their people.

Greg Fleming: What other steps will the Minister take to lift immunisation rates?

Hon Dr SHANE RETI: National campaigned on improved immunisation rates, and these will feature as part of our health targets, which will be announced as part of our 100-day plan. I look forward to 2024 and a new year when this Government will continue working to deliver timely access to quality healthcare for all New Zealanders.

Question No. 10—Māori Development

SPEAKER: Moving now to question No. 10, in the name of the Hon Dr Duncan Webb but I think may be asked by the Hon Willie Jackson.

Hon WILLIE JACKSON (Labour): Kia ora, Mr Speaker, Meri Kirihimete to you—

SPEAKER: Yeah, yeah, it’s good. Do you mean it?

Hon WILLIE JACKSON: Oh, do you want a translation? Merry Christmas.

SPEAKER: No, I asked if you mean it.

Hon WILLIE JACKSON: Absolutely. All the best to you and your whānau, Mr Speaker.

SPEAKER: Oh, thank you—thanks very much, and the same compliment back to the member. How long is this going to go on for?

Hon WILLIE JACKSON: Ngā mihi o te Kirihimete ki a koe, Mr Speaker.

SPEAKER: Kei te pai.

10. Hon WILLIE JACKSON (Labour) to the Minister for Māori Development: Does he stand by all of his statements and actions?

Hon TAMA POTAKA (Minister for Māori Development): Ngā mihi o te tau hou pōhutakawa ki a koe. At the time and in the context of making those statements, āna, particularly the statements that I have made that this coalition Government will be ruthlessly focused on delivering on the needs of Māori and all New Zealanders, particularly in housing, health, and education—unlike the previous Government.

Hon Willie Jackson: Has the Minister indicated that the funding of the Waitangi Tribunal will be reduced either directly or indirectly, and, if so, is he using a reallocation of resources to help fund tax cuts?

Hon TAMA POTAKA: Kāore au i te paku mahara ki tērā kōrero i kī mai ai au ki te marea.

[I don’t recall at all that statement that I made to the public.]

Hon Willie Jackson: Then why has the Waitangi Tribunal senior leadership team informed the tribunal officers of cost cuts and Judge Wainwright of the tribunal has stated that cost cuts are necessary across all inquiries in the current financial year and that financial constraints are expected to continue and possibly intensify?

TAMA POTAKA: I have not spoken to Judge Wainwright in many, many years.

Hon Willow-Jean Prime: Has he considered access to justice issues that arise for Māori claimants from budget cuts, and how does he expect to resolve these issues when he cuts funding designed to address claims brought in relation to Crown breaches of the Treaty of Waitangi?

TAMA POTAKA: I have not asked for any budget cuts in the Waitangi Tribunal. I have no recollection of the comments that have been made.

Hon Willie Jackson: Is the Minister, along with the Prime Minister, prepared to front up at Waitangi in February 2024 to discuss why he is looking at cutting funding to the Waitangi Tribunal, and, if not, why not?

TAMA POTAKA: As I have mentioned before in this Whare, I look forward to the manaakitanga and the hospitality of our Ngāpuhi relatives in the motu at Waitangi 2024, and I do not have any recollection of talking to anyone about cutting the funding of the Waitangi Tribunal. Tīhei mauri ora!

SPEAKER: Question No. 11 in the name of Ricardo Menéndez March—Feliz Navidad.

Question No. 11—Social Development and Employment

11. RICARDO MENÉNDEZ MARCH (Green) to the Minister for Social Development and Employment: Feliz Navidad, Mr Speaker. What, if anything, is she doing to end poverty for people receiving a benefit as we head into the holiday season?

Hon LOUISE UPSTON (Minister for Social Development and Employment): Our Government will continue to make benefit and tax credit payments over this time, and in April, main benefits will be increased through the adjustment by the cost of living. This change will protect the real incomes of benefit recipients while putting the benefits system on a more sustainable footing. This early decision is expected to mean that main benefits will be higher next year than they would have been if we had retained the current index to wage growth. Assistance through the Ministry of Social Development (MSD) will continue over the Christmas period to ensure that people can contact MSD if they need support. This Government’s view is that the best route out of poverty is through paid employment. My officials have already begun work on how we can better support people off welfare and into jobs.

Ricardo Menéndez March: Does she agree with recent analysis that found that changes made to benefits will mean that over 300,000 people already living below the poverty line will be up to $3,120 worse off, per year, by the end of this decade?

Hon LOUISE UPSTON: I agree with indexation of benefits to the Consumers Price Index (CPI), which means that the real costs that people face on welfare will be taken care of. And I agree that during this dire cost of living crisis the Government’s focus and priority will be how to alleviate that to reduce people’s hardship.

Ricardo Menéndez March: Will she continue implementing any of the Welfare Expert Advisory Group recommendations, such as a recommendation to index income support to movements in average wages or prices, whichever is higher, and, if not, why not?

Hon LOUISE UPSTON: This Government has made an early decision, as I said in my primary answer, to index main benefits to the cost of living. This is to adequately reflect the costs that those on benefit face.

Ricardo Menéndez March: Does she believe that people receiving income support deserve to live in poverty, and, if not, why won’t she lift benefit levels above the poverty line?

Hon LOUISE UPSTON: This side of the House doesn’t want anyone living in poverty, which is why we absolutely have a relentless drive and focus on getting more on welfare into work where they will have higher incomes, more opportunities and choices, and I will never, ever make any excuse for that.

Hūhana Lyndon: Is she aware of the UN Committee on the Rights of the Child and their report that has shared that they’re seriously concerned at the disproportionate number of tamariki Māori and Pasifika experiencing food insecurity and housing deprivation in Aotearoa New Zealand, and, if you are, will you lift main benefits above the poverty line?

Hon LOUISE UPSTON: This Government’s very clear focus is supporting individuals and families into work, which will lift their income and lift them out of poverty. Sixty percent of the children currently living in material hardship are in benefit-dependent homes, so we will focus on how we support more people off welfare and into work. It benefits them; more importantly, it benefits their children.

Hūhana Lyndon: What is she doing to ease Christmas pressure on our front-line community services such as Whangārei’s own 155 Whare Kai social supermarket, where the CEO said to me—and I quote—“Whānau are going hungry. Kai continues to be our highest demand. Our 155 Whare Kai supermarket is booked through to February already. It is very sad and it’s getting worse in our community.”?

Hon LOUISE UPSTON: I met with organisations in the Food Network just yesterday and acknowledge the work that they are providing on the ground across New Zealand, and I also acknowledge that this is an incredibly challenging time because of economic mismanagement by the previous Government that has driven the cost of living higher for longer—

SPEAKER: That’s enough. That’s enough, thank you.

Ricardo Menéndez March: Point of order. I don’t believe the question was addressed. The question was in relationship to actions—[Interruption]

SPEAKER: Sorry—points of order are heard in silence. Please start again.

Ricardo Menéndez March: Thank you, Mr Speaker. I don’t believe the question was addressed. The question was in relationship to actions, not in relationship to the past Government, and at no point did she talk about or mention any points of actions that she would be taking in relationship to the quote that was given.

SPEAKER: Well, previous Speakers’ rulings do allow a Minister to refer to circumstances in their current portfolio that may lead to difficulties for them because of previous Government actions. So I don’t know that that was particularly out of scope.

Ricardo Menéndez March: Speaking to the point of order, the question was none the less asking about what she would do in relationship to the quote. I take your point that she can point to previous conversations, but she did not address the one and only leg of the question, which was about what she would be doing.

SPEAKER: Yes, I know, but the Minister is a Minister of the Crown, a Minister of the Government. They don’t act individually; they act collectively.

Question No. 12—Revenue

12. DAN BIDOIS (National—Northcote) to the Minister of Revenue: What announcements has he made regarding the Taxation Principles Reporting Act?

Hon SIMON WATTS (Minister of Revenue): This week I have announced that the Government will be repealing the Taxation Principles Reporting Act. This Act requires IRD to report against a set of principles as decided by the previous Government. Unfortunately, this Act is little more than a make-work programme, using valuable IRD resources on producing reports rather than focusing on core business. Repealing this Act will allow IRD to deliver on the real priorities for our tax system.

Dan Bidois: What are the principles this Government does support for the tax system?

Hon SIMON WATTS: This Government is committed to making sure that the tax system is as simple as possible to navigate. Making it easy for individuals and businesses to interact with the tax system is good for them and better for the system as a whole. The Government is also committed to delivering tax relief for Kiwis and the boost in their back pocket to those who need it most. We’ll do a whole lot more on a yearly basis than such reporting proposed under this Act.

Dan Bidois: What feedback has he seen from the sector on the Taxation Principles Reporting Act?

Hon SIMON WATTS: The previous Government received extensive feedback on the Act from stakeholders when they passed it into law earlier this year. The message from them was clear: this Act provided no benefit to the tax system—

SPEAKER: Yep, that’s enough. Thank you. That’s enough. Is there another supplementary on that? OK.

Bills

Taxation Principles Reporting Act Repeal Bill

In Committee

Debate resumed.

Part 1 Repeal of this Act (continued)

CHAIRPERSON (Barbara Kuriger): Can we have more quiet in the Chamber, please. Those that are leaving, do your talking out in the Ayes and Noes lobbies. Thank you. Members, the committee is resumed on the Taxation Principles Reporting Act Repeal Bill. When we suspended for the lunch break, we were considering Part 1. Once again, the question is that Part 1 be agreed to. Now, I just did want to make the point that this is a very small piece of legislation. The committee stage on Part 1 has already traversed about an hour and 10 minutes, from my estimation. So we need to make sure that any points that are made need to be extremely close to the mark.

CHLÖE SWARBRICK (Green—Auckland Central): Point of order. Sorry, Madam Chair, we can’t quite hear you, and I’m not sure if your microphone is on.

CHAIRPERSON (Barbara Kuriger): Oh, thank you.

NANCY LU (National): I move, That debate on this question now close.

A party vote was called for on the question, That debate on the question now close.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Motion agreed to.

CHAIRPERSON (Barbara Kuriger): The question is that Dr Deborah Russell’s tabled amendment to clause 3 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Barbara Kuriger): The question is that Arena Williams’ tabled amendment to clause 3 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

A party vote was called for on the question, That Part 1 be agreed to.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Part 1 agreed to.

Part 2 Repeal of Taxation Principles Reporting Act 2023

CHAIRPERSON (Barbara Kuriger): Members, we now come to Part 2. Part 2 is the debate on clause 4, “Repeal of Taxation Principles Reporting Act 2023”, and clause 5. The question is that Part 2 be agreed to.

Hon Dr DEBORAH RUSSELL (Labour): Thank you, Madam Chair. We have had an extensive debate on this already—on Part 1 of this bill. I do want to talk just briefly on Part 2 of the bill. It has the operative clause in it, the one that actually does the repeal work of the Taxation Principles Reporting Act.

The Taxation Principles Reporting Act asks for Inland Revenue to prepare a report—an interim report some years, and a triannual extensive report—reporting on how the tax system does against some key principles. The principles are listed in Schedule 1 of the Act. The principles are: horizontal equity, efficiency, vertical equity, revenue integrity, compliance and administrative costs, certainty and predictability, flexibility and adaptability. Reasonably well-agreed principles.

However, in his first speech on this bill, in the first reading of the bill, the Minister of Revenue said that the Act serves no purpose because it just was an exercise in—and I quote—“redundant reporting”. Look, that redundant reporting implies that this information on these principles is available elsewhere and in a form that is readily available to New Zealanders, to citizens. So I would like to hear from the Minister where else we can get a coherent and easy-to-find, easy-to-access piece of reporting on the New Zealand tax system that encompasses those key principles, or, even if not these particular principles, the generally agreed principles that tax experts use when assessing tax systems.

So if the Minister could let me know where else we can find this information that makes the Taxation Principles Reporting Act something that engages in redundant reporting.

Hon SIMON WATTS (Minister of Revenue): Yeah, in the interests of good back-and-flow, as I’ve noted before the Inland Revenue’s annual report does include significant amounts of information in a variety of areas. I acknowledge the member’s point in terms of a concise table of principles, but the report does include a comprehensive nature of those elements within that report. On that basis, I’m comfortable that that information will cover and suffice the member’s request.

CHLÖE SWARBRICK (Green—Auckland Central): E te Māngai, tēnā koe. Tēnā koutou e te Whare. As the previous speaker’s just alluded to, what we’re in now, with Part 2, is the operative part of the legislation, and to that effect I have a few questions for the Minister, albeit referring to what was referenced in Part 1, but it was actually about the substance of this legislation, that being the taxation principles reporting repealment.

The Minister said in the debate on Part 1 that there is no report and that he has not seen any draft version of a report, which, again, just for the sake of the record, under the status quo of the laws currently on our statute book, should be done, at least in draft form, because it is due to be published, as the law currently sits—until it is repealed and this Government rams through under urgency the third reading of this bill. As it currently sits, the IRD should still be functioning towards publication on 31 December.

So I just really wanted to drill into that point as made by the Minister. Is it the case that he has been offered absolutely no evidence, data, briefing to the incoming Minister, memorandum, correspondence, or otherwise on where this work programme was at under the IRD’s work programme? So that’s the first question: where is this work programme currently at, given where we are at in this stage of the development of that report under status quo legislation as required, because that legislation still right now sits on our statute book?

To the second point, the Minister has made the point that he still expects that there is going to be transparency of reporting from the IRD. This is an interesting one, because it’s also referenced within the regulatory impact statement here, and I quote: “Inland Revenue intends to consider means of improving its current reporting under the Tax Administration Act 1994,”—good year, that was—“subject to internal resourcing and government policies.” To that effect, what I’m hearing is that the IRD is asking this incoming Minister to actually continue to allow them the resources to continue something along the lines of the reporting as is required under the status quo legislation which they are rushing under urgency to repeal. And in needing that resource, I have a secondary flow-on question, which is: what kind of resource does he expect or anticipate allocating the IRD so that they can do that form of reporting, which at this point is ambiguous? We have no idea what that might look like.

So just to be really clear to the Minister, who I hope is writing these questions down so that he can answer them—that first question there, or the first part of that second round of questions, was on the engagement that he has had with IRD around the fact that they intend to still do more transparent reporting for the sake of accountability on the tax system. The second tranche of that second question is: therefore, what resourcing is he anticipating giving the IRD to undertake this new ambiguous work programme of potentially reporting against tax principles? We’re not quite sure. Because we know, again, under the status quo, per his own advice, that we’re looking at 2.5 fulltime-equivalents (FTEs) being allocated to this work programme—again, for the sake of the House, 0.06 percent of the entire workforce within the IRD. This is minuscule, and it feels as though this is very much a matter of throwing out the baby with the bath water.

This kind of leads to the follow-on question of why not just allow this report to come out for the sake of having a more informed public debate on what it is that the National Party is so vehemently opposed to, as opposed to just trying to get rid of this before it comes out into the public light, based on a bogeyman that we can’t really all conceive of in any meaningful way because we don’t know what the shape of that potential report might look like.

So just to really re-emphasise that point to the Minister, is it the case that he has had absolutely no engagement with his officials from IRD, given that he is saying that he’s seen no report or no draft report, that no report exists—he’s had no engagement with them on where they’re at in that work programme, as is due out in six ostensible working days? Is it the case that he has had no meaningful engagement with the IRD on what kind of comes next, given his own regulatory impact statement says that they want to shake their reporting up even more so? And, thirdly, what resources are necessary to give to the IRD to do that next iteration of reporting? Because all of us are kind of in the dark here about what that might look like, and it’s really difficult to get a coherent understanding of whether that will be any different to the 2.5 FTEs currently allocated under status quo legislation.

Hon SIMON WATTS (Minister of Revenue): So just responding to the member’s questions—as I said before, I have not seen a copy of the report, nor do I have a copy of a report or a draft report or any aspect of the report. The reality is that with this Act being repealed following the work which we’re undertaking at the moment, I will not receive a copy of that report, and I expect that IRD will handle any work that they’ve undertaken to date in the normal way in which they would do so in line with their policies. In regards to where we’re at, that’s where we are on the report.

I acknowledge the member’s feedback and frustration around that, but the reality is we are undertaking a piece of work with the IRD—as we are doing with all Government departments with the new Government to ensure that the Government departments’ workload and their focus is aligned with Government and coalition priorities. That is our priority. That is the direction and conversation that I’m having with my relevant people within the relevant ministries that I am responsible for. As I have said clearly, and as our Government has said clearly, this piece of work is not a priority for this Government, and hence we’re repealing this legislation.

Hon BARBARA EDMONDS (Labour—Mana): Thank you, Madam Chair. This is just a really quick question, actually, of the Minister’s commitment in his previous response that there will be some reporting in the annual report. My question to Minister is: whereabouts in the annual report? Because the current annual report has some information about organisation and capability, it has some of the statement of performance, and it also has the auditor’s report. So I just want to have it crystal clear for this committee: whereabouts in the annual report is the Minister committing to including some reference to the principles and an assessment of it?

Hon Dr Duncan Webb: Point of order.

CHAIRPERSON (Barbara Kuriger): Just before I take the Minister, point of order from Dr Duncan Webb.

Hon Dr DUNCAN WEBB (Labour—Christchurch Central): I seek leave for all questions to be taken as one debate.

CHAIRPERSON (Barbara Kuriger): Leave is sought. Is there any objection to that course of action? There is not.

Part 2 and clauses 1 and 2

CHAIRPERSON (Barbara Kuriger): So the question is that Part 2 and clauses 1 and 2 stand part.

Hon SIMON WATTS (Minister of Revenue): Thank you, Chair. Acknowledging the question from the Hon Barbara Edmonds, the point that I was referring to in regards to principles being included within the annual report is that the elements of tax principles are embedded within a whole variety of information within the annual report. What we acknowledged on a prior question around a succinct list or categorisation of that, that does not exist. But the inherent nature of tax principles, as it is, was embedded within that report. If the member wants to propose any other ideas on how they believe that might be useful, as I indicated to the prior speaker in the member’s party, then they’re most welcome to get in touch.

CHLÖE SWARBRICK (Green—Auckland Central): I just wanted to say that I’m appreciative of the Minister engaging in this back and forth. I think it’s a really important and constructive process for us to have in lieu of having a fulsome select committee process here as we pass this under urgency.

So a few more questions for the Minister following his answers to my questioning just before. He noted that he has not seen that report and he does not intend to see that report. But with your leave, Madam Chair, it does not feel as though the actual question which I asked—which is whether he has seen any advice, any correspondence, any memorandums, or had any conversations with officials about where in the work programme that report is actually at. Because the Minister, as the Hon James Shaw said before in the second reading of this bill earlier today, can decide that he wants to hear no evil, see no evil, speak no evil, but it doesn’t necessarily mean that it doesn’t exist.

So my question to the Minister remains: does he have any idea where in the work programme this report is, given that under the law as it currently sits on the statute book, this report is due out on 31 December, in 10 days? Two of those days are Christmas and Boxing Day—public holidays—two of those days are weekend days, and the other days, we would assume, will largely be taken up by the holiday of the public servants who largely work in these white-collar jobs where most people will be on break from tomorrow, which would lead us to the inevitable conclusion that this work should already be done.

If the Minister is to say, potentially, that he doesn’t know that, then I would then say that that begs the question of what on earth else is happening with Inland Revenue (IR) that the Minister is not aware of. So the core question is whether the Minister has had any engagement with his IR officials about where this work programme is currently at, because based on the law as it currently stands, it should be near publication.

The second question—because I think there’s been some really important and valuable engagement and discussion around the fact that he still believes that there needs to be some form of reporting against some form of taxation principles. Again, we’re still kind of left in the dark as to what that may or may not look like. Which of the seven principles within the taxation principle reporting legislation as it currently stands, again, does he or does the Government disagree with? Because throughout the Finance and Expenditure Committee process a few months ago now, a rigorous process with dozens and dozens of submitters that we heard from with an independent adviser, who advised us that these tax principles were commonly known, to the extent that they didn’t actually require descriptors within the legislation itself, the National Party and the ACT Party, throughout that process, didn’t disagree with any of those seven principles, which leads us to the conclusion that they agree with the importance of those seven principles, the likes of equity and vertical integration and otherwise.

So that kind of begs the question: why is it that they are now revoking the reporting against those principles which they agree upon? And that begs the question which the Hon James Shaw put before of whose interests does this bill serve? Because it’s definitely not the interests of a general public who deserve to be informed about the functioning of our tax system.

Because if I may make the point, and not to belabour it, we operate in a dearth of evidence in this country when it comes to making meaningful public policy decisions, not just in the tax arena but also actually when we’re talking about housing policy. We actually don’t even know how many landlords there are in this country. We have to scrape to get the data from Land Information New Zealand, the Companies Office, the Ministry of Business, Innovation and Employment bond lodgement data, and a range of other areas to try and pull together any meaningful insights. I had thought that this legislation, as it sits on our books, would have been a really useful potential bipartisan accord to move towards consistent reporting, which can inform a better public debate and a stronger democracy as a result.

So those questions, if I may repeat them, are: where in the cycle or in the work programme is that report at, or is it simply a matter that the Minister doesn’t want his officials to tell him? And secondarily, what of the seven principles does the Minister or the Government and its three parties inherently disagree with?

Hon SIMON WATTS (Minister of Revenue): Thank you very much, Chair. I acknowledge we are getting close to Christmas and we’re getting a little bit off-piste on some of that, and some repetition as well in regards to some of these questions, but I will be free and frank, again, in terms of the position around what I’ve said. The requirement on that report is by 31 December, and I acknowledge that all Government departments and all public sector workers are under significant pressure, and at this stage, that is the time at which they would deliver the report, and I have not received the report. The reality of what we are doing in terms of the repeal is going to be the fact that that reporting is no longer required, and that is as simple as that.

In regards to the principles point—and I was in the Finance and Expenditure Committee along with the member as we worked through this bill—the reality is that there isn’t consistent agreement by parties around the principles in the tax principles, and that is the reality of where we’re at. The challenge that we have identified is that we believe that the requirements under this Act to report and require IRD in a legislative manner to report on that is not something that we deem as a priority or necessary. That’s why we’re repealing the Act.

CHAIRPERSON (Barbara Kuriger): The Hon James Shaw, but I’m just looking for very new information and very new questions.

Hon JAMES SHAW (Co-Leader—Green): Well, thank you, Madam Chair. I’m specifically asking the Minister to expand on a point he was just saying. He’s now said that the Government disagrees with at least one or more of the principles in the existing Act. And so my question then is: why not amend the Act to reflect the principles that they prefer to base the tax system on rather than repeal the Act and have no information available? So that is my first question, because my understanding, Madam Chair, is that that is new information to the committee, because previously in the debate, the kind of general understanding has been that, actually, no one on the Government side had stated a disagreement with the principles, but the Minister has now stated a disagreement with the principles that are in the Act, so my question then is: why, which ones, and why would the Government simply not amend the Act rather than repeal it?

I have another question, which is to come back to the reasons for the repeal. At question time today and in previous stages of the debate, I’ve heard a number of different reasons, and I think it would be helpful if the Minister would give us the actual reason or the official reason. So in an earlier stage of the debate, the Hon David Seymour said that the purpose of the repeal was to cut costs at IRD and then return that money to New Zealanders in the form of tax cuts, which is where my question then is: if that was true, of the 2.5 fulltime-equivalents (FTEs) that are resourced for this, if we were to divide that by the five million New Zealanders, how much money would each New Zealander receive from the 2.5 FTEs whose salaries would be returned to New Zealanders?

The Hon Nicola Willis at question time today said, “No, that wasn’t the reason for the repeal”—that Mr Seymour’s reason was not the reason. Her reason was that the Government didn’t want reports. And I wanted to check for consistency with the coalition agreement that the decisions of Government would be based on facts and evidence and how repealing an Act that provides facts and evidence is consistent with ensuring that decisions are built around facts and evidence. How are we going to make decisions around the shape of the tax system if we don’t understand it and we don’t have any data or evidence about it? So I would like an answer around that.

My third question is around openness and transparency. So my question is: will New Zealanders have more or less information about the tax system as a result of the repeal of this Act, and how is that consistent with the commitment to openness and transparency in Government? Because the Government, to my knowledge, are still signatories to the Open Government Partnership, and this suggests that the Government is acting inconsistently with that.

So those are questions that I think are new or have not been addressed by the Government during the debate so far, Madam Chair, that I would be quite keen to get some insight on from the Minister.

My fourth question during an earlier stage of the debate was that one of the speakers, Andy Foster from the New Zealand First Party, said that the purpose of repealing the Act was to build trust and confidence in the public. And I’d like to hear from the Minister how having less transparency around the tax system builds trust and confidence, if that’s an official line of the Government, or if it was just a view of one of the MPs of one of the parties. So it would be useful to understand how having less transparency leads to more trust and confidence in our public institutions.

Given that the Government has got a commitment to focusing relentlessly on living costs, I’d like to understand how the repeal of this Act helps to cut living costs for New Zealanders.

Hon SIMON WATTS (Minister of Revenue): Thank you very much, the Hon James Shaw, for those questions. I’ll work my way through them as they were asked.

The first aspect in regards to the decision around principles and whether those that submitted to the select committee were unilateral in their support and agreement for the way in which those principles were defined was not the case. There was divergence in terms of the views of those principles, and there was divergence across tax experts and members of the public in regards to that. And that is what was conveyed, and that is the reality. Any time spent on preparing these reports that would be undertaken if the Act wasn’t repealed, in our view, is a waste of time and money. Any resources within our Public Service should be focused on higher priorities aligned with Government priorities, and hence the basis of why this bill, which is only 60 words in its entirety, taking out the headings, is quite straightforward.

The last aspect in regards to the member’s questions around openness and transparency—as I’ve outlined on probably three occasions now and I’m now repeating, the Inland Revenue does, in what I think is a good way, produce a lot of reporting already on a wide variety of its operational and policy activities. The annual report is a summarisation of that information and is comprehensive. There are mechanisms to request and ask for more feedback and different views of that perspective, and I, again, would reinforce and encourage you to provide that feedback. From my point of view, I am very confident that the Inland Revenue Department, being one of the most highly performing departments that I’ve had the experience of dealing with, does uphold the important principles of being open and transparent in terms of its policy and its operational effects.

CATHERINE WEDD (National—Tukituki): I move, That debate on this question now close.

A party vote was called for on the question, That debate on this question now close.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Motion agreed to.

CHAIRPERSON (Barbara Kuriger): The Hon Dr Deborah Russell’s tabled amendment to clause 1 is out of order as not being an objective description of the bill.

The Hon Grant Robertson’s tabled amendment to clause 1 is out of order as not being an objective description of the bill.

The Hon Dr Duncan Webb’s tabled amendment to clause 1 is out of order as not being an objective description of the bill.

The question is that the Hon Barbara Edmonds’ tabled amendment amending the commencement date to 1 January 2024 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Barbara Kuriger): The question is that the Hon Dr Deborah Russell’s tabled amendment amending the commencement date to 1 January 2027 be agreed to.

A party vote was called for on the question, That the amendment be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendment not agreed to.

CHAIRPERSON (Barbara Kuriger): The question is that Arena Williams’ remaining tabled amendments be agreed to.

A party vote was called for on the question, That the amendments be agreed to.

Ayes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Noes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Amendments not agreed to.

CHAIRPERSON (Barbara Kuriger): The question is that Part 2 and clauses 1 and 2 stand part.

A party vote was called for on the question, That Part 2 and clauses 1 and 2 be agreed to.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Part 2 and clauses 1 and 2 agreed to.

Bill to be reported without amendment.

House resumed.

CHAIRPERSON (Maureen Pugh): The committee has considered the Taxation Principles Reporting Act Repeal Bill and reports it without amendment. I move, That the report be adopted.

Motion agreed to.

Report adopted.

DEPUTY SPEAKER: The bill is set down for third reading immediately.

Third Reading

Hon SIMON WATTS (Minister of Revenue): I move, That the Taxation Principles Reporting Act Repeal Bill be now read a third time.

Madam Speaker, honourable members, I thank you for your time in considering this bill under urgency. As we’re under urgency, I will provide a very brief recap of the bill that we are considering today.

The Taxation Principles Reporting Act Repeal Bill does what the name implies. It has a simple purpose, and once that purpose has been fulfilled, it writes itself out of the history books by repealing itself.

But as humble and self-fulfilling as it is, it is a very useful bill with some noble objectives. It frees future Governments from the restrictive descriptors of tax principles set out in the Act, and it allows them to describe for themselves what they see as good tax system. It allows them to pursue the tax policies they were elected to carry out. It is saving taxpayers money and compliance costs by stopping them from having to provide unnecessary information to Inland Revenue, and it will stop Inland Revenue from having to devote precious resources to preparing reports on the tax system in relation to certain tax principles. Those resources could and should be better used, including actually collecting tax. This, then, is a very worthwhile bill.

I would like to thank the tax policy officials and legislative drafter for all their work in preparing this bill so quickly. I commend the Taxation Principles Reporting Act Repeal Bill to the House.

SPEAKER: The question is that the motion be agreed to.

Hon Dr DEBORAH RUSSELL (Labour): Thank you, Mr Speaker. This week, under urgency, we have had fair pay agreements taken away. We have had 90-day trials put back in place. We have had the Clean Car Discount taken away.

The Government has not proposed any new or original policies. It has not come with anything positive to this House. Instead, it has taken away, removed, repealed, destroyed. That’s their agenda—that’s their agenda.

Hon Grant Robertson: That’s all they’ve got.

Hon Dr DEBORAH RUSSELL: It’s all they’ve got. And now they’ve done it on this bill. This bill takes away the Taxation Principles Reporting Act, an Act which would simply have given us more information about our tax system so that as citizens we can make good judgments.

You know, the previous speaker, the Minister, Simon Watts, said that the descriptors were “restrictive”, that Governments should be allowed to “set principles for themselves”—that’s an astonishing thing to say—and that it would “free” Governments to set their own tax policies. Let’s work through that. Governments are still—always have been—free to set their own tax policies. What this bill would have done would have enabled some judgments to be made about those tax policies using descriptors that are long established and widely agreed as the appropriate descriptors and the appropriate principles to use for assessing a tax system. But this Government is too scared to allow that to happen.

It is a real shame that this bill is going through. I’m going to end with a quote from the submissions on the original bill from a submitter who actually said this would be a good policy to pursue. This submitter said—I’m going to reveal the name at the end; this is a surprise for the end of the year—the organisation “has a keen interest in tax policy, including a comprehensive submission to the 2018-19 Tax Review as well as submissions and feedback to Inland Revenue on more technical consultations” on the area. This submitter “supports the concept of increased information about the operation of the tax system and reporting of tax information against core taxation principles. We also broadly agree with the list of seven principles listed in Schedule 1 of the Bill.” This submitter agreed with the Taxation Principles Reporting Act.

The chair of that submitter is now in this House as an ACT MP. Federated Farmers thought this was good policy, and that Government has rejected it. What a sad note on which to end the year.

CHLÖE SWARBRICK (Green—Auckland Central): E te Māngai, tēnā koe. Tēnā koutou e te Whare. I just wanted to continue in the vein of the Hon Dr Deborah Russell and say that it’s gutting that this is where we end the year in the House.

Merry Christmas to the workers who have had their opportunity to engage in sector-based bargaining stripped away from them, again under urgency, oftentimes in the dead of night, without the opportunity for meaningful consultation or engagement at select committee. Merry Christmas to the workers who will now be going into their new jobs with the opportunity to be fired at will under the first 90 days. Merry Christmas to the climate, which will be, you know, facing more oil and gas poured on the climate crisis. Merry Christmas to the climate with the Clean Car Discount being repealed, one of the most successful climate change policies that Governments have seen in decades, without any commensurate policy put forward to replace it.

Merry Christmas as well to renters who, under this Government, will potentially see their rent skyrocket between 15 to 20 percent, based on estimations from the likes of economist Bernard Hickey, based on this Government’s work programme to remove and roll back interest deductibility rules and otherwise.

It is abundantly clear that the Government currently bollocking at me has absolutely no vision, because what we have seen over the past two weeks is that they have instead simply fired up the shredder. There is no creativity, no meaningful policy pathway that we have seen to build an Aotearoa New Zealand that is inclusive, that is equitable, and that ultimately provides that pathway for the upholding of people and the planet.

So to the bill, which we haven’t had any real meaningful opportunity to talk about, given that the Government actually engaged no external submitters, no external stakeholders, despite accusing the former Government of undertaking no meaningful engagement. And then, obviously, it completely bypassed the select committee process by which we may have had a more meaningful and informed opportunity to shape up this legislation into something that any of us could be proud of.

This bill, as has oftentimes been said throughout all stages, actually doesn’t change our tax system. It doesn’t fix the inequities that have been long baked in, as well elucidated in the high-wealth individuals report from IRD with subsidiary papers from Treasury at the beginning of this year.

This is a really important and fundamental point, because it leaves us with the state of the economy as we presently have it. And I’ll bring it back to this graph from Max Rashbrooke [Holds up document], which, obviously, members of the Opposition would prefer I put down in the same way that they’d like to bin the report which officials have largely worked on. Just for those following along at home, this is really, really important to outline here. This is based on substantive survey data—the distribution of wealth that New Zealanders believe would be ideal. It looks equitable. It looks as though everybody has the opportunity to start at the same point in the starting line. The second bar is what New Zealanders think that the distribution of wealth in Aotearoa New Zealand is. And you can see a substantive divergence there. New Zealanders actually do assume that right now we do have an unfair and inequitable distribution of wealth that is far from what they think that it is, or rather what they believe it is, ideal to be.

But then we get to the third point of the graph around what it actually is, and it’s there you can see where the disproportionate wealth and power in Aotearoa New Zealand is held. And that is the core point that we are debating today, because that wealth aggregation doesn’t occur in a vacuum; it occurs

as a result of a tax system which many New Zealanders, per that graph, assume is unfair—and as the high-wealth individuals report from the Inland Revenue Department told us was unfair. Because we see that the top 311 families in this country pay an effective tax rate less than half of that of the average New Zealander.

Hon Member: They worked hard, and they succeeded.

CHLÖE SWARBRICK: I dare members of the ACT Party who are presently heckling about how those 311 families worked hard to tell us that the bottom 2.5 million New Zealanders who hold less wealth than those 311 families combined—I dare you to tell those New Zealanders that they did not work hard. Because, in fact, what we see is that our tax system, as again borne out in those subsidiary papers from Treasury on that IRD report—those New Zealanders do work hard, but we have a tax system that disproportionately taxes work over wealth, and that puts us as an outlier in the OECD. We are one of the only countries that we compare ourselves to that does not have a capital gains tax, a stamp duty tax, a wealth tax, or any form of taxation that is meaningfully targeted to address those inequities.

The other point on this bill is that this report is already done, and this was largely canvassed throughout other parts and debates in this bill. Because we know that under the law as it currently sits on our statute book—as it currently sits, actually, until we get to the point of this bill being passed under urgency in the next hour or so—IRD are required to publish a report on 31 December. And as I’ve said during the first reading and the second reading and committee of the whole House—and it bears out putting on the Hansard once again—that is 10 days from now. In those 10 days we have two public holidays in the form of Christmas and Boxing Day. We also have two weekend days. That takes away four days. That gives us ostensibly six working days. But we know that IRD officials, as with most public servants and white collar workers across this country, are probably on holiday from tomorrow. And the inevitable logical conclusion that that brings us to is that this report is done. And that then begs the question of why the Government is keen to bin it. Because we’ve been told that the reason that we are rushing this through under urgency today and through midnight last night is because they need to get it done before 31 December, when that bill is due to be published.

My question to members of the Government is: what are you so scared of? Because we heard from the Minister during committee of the whole House, and, actually, as reflected in the regulatory impact statement from his officials, that there is an intention to actually increase the level of reporting within IRD on the efficacy of our tax system. So there is still an intention to do some form of ambiguous reporting, and we’re not quite sure what it is going to look like, yet we’re repealing this principles-based legislation based on, again—and I take here from our independent adviser on the bill who said, and I quote, and this is from Sir Rob McLeod, not somebody who I don’t think anybody in this House could allege of being ideologically driven,“I would omit the descriptors because the meaning of each design principle is sufficiently well understood on their own.”

So we’re left with a situation with a report which is due to come out in 10 days, under the law as it currently sits on our books, and a Minister who says that we’re doing this in order to reduce waste of resources, but those resources are already spent. Again, it bears worth putting on the record that those resources are 2.5 fulltime-equivalent (FTE)—i.e., 0.06 percent of all of the FTE that operate within the Inland Revenue Department—and a Minister that is saying that he intends to continue doing some form of reporting, which we have no meaningful clarity over.

So we should have and we could have had a process, if the Government had decided to let this report come out—as it, again, still to this point, is due to in the next 10 days—where they could have said, “Hey, look, New Zealand, here’s the issues that we have with the format of this reporting as it has been put out.” But we’re not going to be able to have that meaningful debate, because in the dark of the night this Government has decided to shred that legislation, pushing through midnight and urgency last night.

And it really bears pointing out again that this is a Government who has utilised rhetoric such as the importance of data and evidence but is deciding to shred a framework which would have enabled us to have precisely that. We don’t live in a game of Monopoly; we live in a democracy where, when we are informed by evidence and data, we have the opportunity to make informed decisions about the economy that we want to live in. Because the question for the Government and for the Opposition, and indeed for our Parliament, should be: what kind of economy do we want to build? Because it isn’t handed down to us on concrete tablets from a deity in the sky; it is a man-made concept with structures, rules, and regulations that we put in place to try and achieve outcomes that we put down on paper in these laws.

And I have just got to say, having heard the inconsistencies logically in the Speech from the Throne a few weeks ago, where this Government was talking about the wants to have more affordable housing while doing policies and putting forward policy prescriptions that they know demonstrably will do the opposite of that; saying that they want to have a higher-wage economy while doing the opposite of what Australia does with a fairer tax system, a capital gains tax, and sector-based bargaining which they repealed under urgency, this Government really has us all questioning what their priorities are and who they serve. We oppose this bill.

Mark Cameron: Mr Speaker, well I don’t know how I compete with the theatricality—

SPEAKER: I haven’t called the member—just a little bit of order would be good. I call Mark Cameron.

MARK CAMERON (ACT): Thank you, Mr Speaker. Well, you’ve taken my momentum away about all the oxygen and theatricality of the former member’s speech. I just want to congratulate her on all of her efforts, and highlight the fact that fallacies don’t cease to be fallacies just because they’re the fashions of the left—the green and the red team that we’ve had now six years of.

I commend the bill to the House. I think it’s a good piece of legislation and I want to congratulate the former Minister, or the said Minister, for all his endeavours. Thank you very much.

ANDY FOSTER (NZ First): There’s been a lot of hyperbole and tilting at windmills here, but one of the things about select committee, of course, is that the legislation which is being repealed has effectively just been through select committee earlier this year. So there have been submissions on it. Those submitters have had different views, and, obviously, there was a minority opinion from what is now the Government side, saying we don’t like that piece of legislation.

IRD are quite clear that they started off saying that they thought the legislation makes sense, and then they’ve come to the view that maybe it doesn’t make sense and they can actually do it a different way. If you look at the regulatory impact statement, that is exactly what they say.

I just want to finish off by saying that the issue of trust members raised—and I think James Shaw misquoted what I was trying to say. The key point here is that what people really want to trust is how we spend their money and how much Government reaches into their pockets to take their hard-earned money and spend it on something the Government thinks is a good idea. That really is the key issue. It’s not so much about understanding the tax system; it’s understanding how we spent their money and knowing that we spent their money well. I guess that is the challenge. I commend this bill to the House.

Hon JAMES SHAW (Co-Leader—Green): Why, thank you, Mr Speaker. Can I just start this intervention by saying one of the few things that I do like about urgency debates is that you actually sometimes do get a debate rather than just people coming into the House and making statements then buggering off again. So I will, in that spirit, pick up the point that Andy Foster just raised, which is that he said that people want to have trust and confidence in how we spend their money. In a previous part of this debate, I agreed with him on that point. But they also want to have trust and confidence that the tax system is fair and transparent, that when we say we’re spending their money—whose money? Where is it coming from, and how much proportionately are people paying?

Actually, what we have seen is an erosion in recent decades of trust and confidence in our Governments and in this Parliament, because we have consistently passed laws that have increased wealth disparity in this country and created a multi-generational underclass and a multi-generational class of people whose wealth is inherited rather than earned. What we do know—the very few things that we do know about the tax system in New Zealand—is that it currently reinforces that. So the Act that is being repealed simply provides some transparency and builds trust and confidence, because it means we’re all operating off the same set of information about the nature of the tax system.

I wanted to respond to some of the back and forth with the Minister in the committee of the whole House stage immediately preceding. One of the things that the Minister said was that if New Zealanders want this information, they can get it through the Inland Revenue system of annual reporting. One of the other things that he said is that the purpose of the repeal is to focus Inland Revenue’s resources on the things that this Government prioritises. But if New Zealanders want to intervene in the annual reporting process and get the information that was provided by the Act, then the same amount of resource—in fact, probably more—will have to be deployed responding to the requests of New Zealanders who want that information. So it will save no resource, other than making it harder for New Zealanders to access the information that the Act provides for, right? It’s an inconsistent argument. It doesn’t reduce the amount of resource that Inland Revenue will have to devote, but it does make it less transparent and less accessible for New Zealanders.

Again, the arguments that the Government side have laid out during the course for why the Act is being repealed are spurious. They’re so thin. They’re wafer thin. And the next question that I’ve got is: why the urgency? Why is it such a rush? Why is it so important, so desperately important, that we repeal an Act that provides transparency about the tax system at this point?

It’s because they don’t want to know. They do not want to know what the reports provide. The Minister himself said that regardless of the amount of work that Inland Revenue have already put into the first report this year, he doesn’t want to see it. He’s not received it. He’s not asking for it. Any work that they’re currently doing will have to get binned. Even though the report is due, effectively, tomorrow in real terms, he doesn’t want to know what’s in that. He doesn’t want New Zealanders to know what’s in that, because they already have a pretty good sense that it’ll just show the same thing that we’ve already discovered through other work that Inland Revenue have done, which shows that we have a deeply unfair and unproductive tax system in this country.

That’s why they want to repeal the Act, that’s why they want to repeal it under urgency, that’s why they want less transparency in the tax system—because the interests that that Government serves do not want New Zealanders to know where the money comes from that pays for the public services that the Government provides. They don’t want to know and they don’t want New Zealanders to know, because all it would do would be to inform us that we have a system where the wealthiest New Zealanders pay less as a proportion in their tax base than other New Zealanders. [Interruption]

All of these people on the other side are sitting there going, “No, it’s all to do with hard work. It’s merely a function of hard work.” Well, let me tell you something. The wealthiest New Zealanders pay less proportionate tax than the people who clean the offices of the members present. You try and tell those people who come in here in the dead of night to vacuum their floors and clean their desks and empty their rubbish bins that they don’t work hard and that those people should continue to pay more tax as a proportion of their wealth and income than the wealthiest New Zealanders. That’s what they’re saying. That’s what they’re hiding in repealing this Act.

The interests that they are serving are the people who made the largest donations at the last election, which were the millions of dollars that went from the richest New Zealanders to the parties that formed the Government—millions and millions of dollars in donations from the wealthiest New Zealanders—on the basis that those tax affairs would be covered up again and we would continue to operate in the same darkness that we have for a very long time.

So you really have to wonder, when the parties of Government got up to say during the course of the election campaign that they would be relentlessly focused on reducing the costs of living to New Zealanders, how much does the repeal of this Act reduce the living costs of New Zealanders, given that there are 2½ fulltime-equivalent resources devoted to it? If you divide those 2½ people by the 5 million New Zealanders, how much will our living costs go down by repealing this? It is completely inconsistent to say that average New Zealanders will see their cost of living go down by having a less transparent tax system.

They’ve said that they don’t want glossy reports. They don’t want that kind of thing. But at the same time, they’ve said that they’re going to be a Government that’s based on facts and evidence—but only facts and evidence that are convenient to them and the people that support them. They’re not interested in facts and evidence that are inconvenient to their political agenda. It is as ideological a Government as one I have ever seen. It is not based on facts and evidence at all. It is based entirely on serving the interests of the people who put them into power.

So when you come to the question of trust and confidence, there is no reason why New Zealanders should have trust and confidence in this Government, when one of its very first acts—other than making bus fares more expensive for our poorest New Zealanders; other than making it more expensive to decarbonise as a country; other than to make it more fragile for people to walk into employment, on the basis that they could get fired for no reason within the first three months of that employment, on the basis that they’d make it harder to actually bargain for better wages, so that’ll drive wages down, as it always has demonstrably over the course of the last three decades.

I can see the Minister asking me to move on and to speed up, because he wants to go home for Christmas. He wants to get out of here and he wants to go home. But it is his responsibility that this bill is in the House and it is his first act as a Minister of Revenue that we are debating this, and all he wants for Christmas is a little less transparency. All he wants for Christmas is to repeal an Act that made it obvious what the state of our tax system is in this country, and then he wants to get out of here and go home and have it all be done by Christmas so that people forget about it and don’t worry our pretty little heads about the fact that the status quo is being preserved and the poorest New Zealanders will get poorer and the wealthiest will get wealthy under this Government. Because that is exactly the agenda that they have outlined in the first three sitting weeks of this Government.

New Zealanders can look forward to a lot more than that. They’re putting it through under urgency because they want to get it out of the way. They want to do the stuff that’s unpopular, they want to clear the decks, and then they want people to forget about it. Well, we won’t forget about it. We will continue to hold them to account for their inequitable and unjust policies for the entire time that they remain in Government. The signals that they have sent to New Zealanders about what their priorities are and whose interests that they are serving over the course of the last three weeks, and in particular over the last set of bills that we have debated in the course of this week—it is a cruel Government. It is a Grinch-like Government right before Christmas for the vast majority of New Zealanders, except for those people who backed them in the election campaign.

STUART SMITH (National—Kaikōura): Thank you, Mr Speaker. There must have been some really bad lobster over in Doha. This is a great bill and I commend it to the House.

Hon GRANT ROBERTSON (Labour): I’ll just take a short call in this third reading, to say that there’s nothing that quite sums up this Government but to be finishing with a petty, backward-looking piece of legislation that does the opposite of what it purports to do.

So throughout the quite long debate that we’ve had on this bill, what we’ve been able to establish is that the Minister of Revenue thinks that there should be some principles, doesn’t quite know what they are, thinks that they’re in the annual report—which they’re not—and opposes a bill that actually outlines some principles.

We believe that a tax system should be fair. We believe that a tax system should be progressive. We believe that a tax system should be open and transparent. And that’s what the National Government is finishing their time with, in this year—is to take away transparency. We will see more of that, I’m sure. I oppose this bill.

CATHERINE WEDD (National—Tukituki): I’d like to commend this bill to the House.

HELEN WHITE (Labour—Mt Albert): Thank you. What I’ve watched over the last day is what I would describe as wilful blindness. What we are going to have is the non-information of people in an area where we desperately need information. But also, we have a responsibility to the New Zealand public to make sure that if we’re taking their hard-earned money, we know that we are doing so fairly. That is what the Government is turning its back on today. What a sad day it is, and what a lot of work we’re going to have as Opposition, and what a lot of fun we’re going to have pointing out what a lacklustre Government we have, one that does not give us vision, does not give us hope. We’ll see you here in the new year. Happy New Year.

NANCY LU (National): This is an excellent bill and I commend the bill to the House.

Hon BARBARA EDMONDS (Labour—Mana): In the spirit of Christmas, A Christmas Carol comes to mind today, and when I think of Ebenezer Scrooge, I’m not going to cast aspersions on the misers on the other side of the House. When I think of Ebenezer Scrooge, he saw the light, and the ghost of Christmas Past, which is that this Government brought in the principles to make the tax system fairer. But the Christmas present that that Government is giving is, basically, removing the transparency that the New Zealand public can depend on to ensure that the incidence of tax is fair.

Therefore, I do not commend this bill to the House. But I do want to wish you, Mr Speaker, manuia le Kerisimasi ma le tausaga fou. That’s the end of this speech.

A party vote was called for on the question, That the Taxation Principles Reporting Act Repeal Bill be now read a third time.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 49

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15.

Motion agreed to.

Bill read a third time.

Adjournment

Sittings of the House

Sittings of the House

SPEAKER: In accordance with a determination of the Business Committee, the motion for the adjournment and for the sitting programme of 2024 may be moved.

Hon CHRIS PENK (Senior Whip—National) on behalf of the Prime Minister: Thank you, Mr Speaker. Merry Christmas. I move, That the sitting programme for 2024 be:

January 30 and 31;

February 1, 13, 14, 15, 20, 21, 22, 27, 28, and 29;

March 5, 6, 7, 19, 20, 21, 26, 27, and 28;

April 9, 10, 11, and 30;

May 1, 2, 7, 8, 9, 21, 22, 23, 28, 29, and 30;

June 25, 26, and 27;

July 23, 24, 25, 30, and 31;

August 1, 6, 7, 8, 20, 21, 22, 27, 28, and 29;

September 10, 11, 12, 17, 18, 19, 24, 25, and 26;

October 15, 16, 17, 22, 23, and 24;

November 5, 6, 7, 12, 13, 14, 19, 20, and 21;

December 10, 11, 12, 17, 18, and 19;

and that the scrutiny weeks for 2024 under Standing Order 338C be:

June 17, 18, 19, 20, and 21;

December 2, 3, 4, 5, and 6;

and that the House do now adjourn until 2 p.m. on Tuesday, 30 January 2024.

Mr Speaker, as the most senior MP named Chris on this side of the House who was available to take this call, I do so on behalf of National. First, I want to wish you and all a very merry Christmas. I congratulate you again on your new role. Clearly, you’re a man of experience, and it shows in a way that is very helpful. It’s not your first ro-day-o, or indeed your first rodeo—which reminds me, sir, to acknowledge and thank our coalition partners of New Zealand First and, of course, the ACT Party. Some returning colleagues and friends, and some new ones alike—we are enjoying the opportunity to walk together in a way that reflects the election result for the good of New Zealand.

Sir, you haven’t yet thrown anyone out of the House. If you choose to do that to me today, I’ll be able to get home a bit earlier and avoid some of that Wellington traffic that we’re going to hope to get Wellington moving again—

SPEAKER: You can go voluntarily.

Hon CHRIS PENK: OK. I’ll move on, and if I finish before the 10 minutes, that will be the reason; not because I haven’t prepared sufficiently well for this, sir.

I do want to say, as we’re concluding the whole of the parliamentary year, that your predecessor Adrian Rurawhe is to be acknowledged for his good humour and judgment. Our right honourable friend earned the respect of the House throughout the period in which he held that role, and, again, we thank him for it.

We acknowledge your presiding officer colleagues. Barbara Kuriger, Maureen Pugh, Greg O’Connor, and Teanau Tuiono—thank you very much. Please consider this to be the last closure motion that we will see, at least for now.

We’re well served in this place, sir, as indeed you are personally, by the Clerk of the House and the Office of the Clerk team. We are grateful for the important functions that they fulfil in this place.

We’re supported too by the grounds and buildings staff in this place. To colleagues who are finding out for the first time the difficulty of putting rectangular furniture into a round building—a good problem to have. I hope that they don’t find that too much of a metaphorical experience—square pegs and round holes, and all that.

I also wish to thank Bellamy’s and other catering staff in this place. They do their job sometimes too well. Parliament runs on the will of the people, democratic institutions’ strength, and, of course, coffee.

I want to thank as well, on our behalf, the security teams who are approachable, but not too approachable, as is appropriate for their role, including wearing the new black; the messengers; the Parliamentary Library team; and, of course, IST—I’d like to thank them for their service to me, and I hope they’ve got my telegram of thanks; the VIP team and all the other drivers who get us to and from Parliament—I’d especially like to thank those who get us from Parliament; the travel office, likewise; so too the cleaners; the pay office; and also the education services in this place. They play a vital role in assisting our democracy flourish in a way that New Zealanders can understand what’s going on here. I think it’s appropriate this place has some mystique, but not complete mystery. And, of course, I thank all those others who help fulfil the role of the House of Representatives playing its part in our functional democracy.

I also want to thank, on that note, the press gallery. We acknowledge that the fourth estate has an important role in our vibrant democracy.

In terms of the year, I’d be remiss if I didn’t acknowledge the events of earlier this year with Cyclone Gabrielle and other severe emergency weather events, both before that in terms of Auckland anniversary floods, and since that time too, all across New Zealand. I want to thank the first responders and all who worked hard to improve that situation in terms of response, recovery, and so forth. I also want to than our New Zealand Defence Force personnel who are serving overseas this Christmas.

New Zealanders voted for change this year, and change they will get. Change is not our right, but our responsibility to deliver. We have that mandate and indeed we have that responsibility. Six years ago, a new Labour Government came in and they had finally caught that passing car at which they had been barking at for nine long years. They made a mistake, I think, in not seeing that they had any mandate for change and working to effect that. But for us, we will be working over working groups, and we will favour mahi over mihi.

Our 100-day plan is being rolled out. We’ve seen it over the last three weeks. We will see it more indeed in the year to come.

Our coalition Government is purposeful, and, again, I acknowledge our coalition partners. We will manage the economy well so New Zealanders get ahead. We will restore law and order. We will deliver public services in health, education, and every other way that New Zealanders rely on the Government—including they rely on the Government not interfering with their lives beyond a reasonable measure of necessity.

From a National Party perspective, I thank all our team, including the chief of staff, Cameron Burrows, who the Prime Minister has generously acknowledged that he deserves a long holiday. He’s less generously stated that, I think, he’s going to get a short one, but that’s appropriate, of course. We’re going to be back in the new year, hitting the ground running, of course.

Other leaders from the National team, from the leader’s office, the Prime Minister’s Office, our team of whips—I’d like to personally thank especially the Hon Scott Simpson for relieving me of that role in more than one sense of the phrase, along with Suze Redmayne, our House team, and all the MPs’ support teams, including in our electorate and community offices, who are no less than anyone else a part of the work that is done in this place for the people of New Zealand.

I want to acknowledge not only our leader, the Prime Minister, but also Nicola Willis in terms of her role as deputy and that finance gig; the Leader of the House, Chris Bishop; and to all my National Party caucus colleagues, congratulations for being here. Thank you for your hard work already, and we look forward to proceeding with such exciting times in the new year. We’ll see many more constructive bills and work programmes of the Government.

On that note, I also wish to thank every member of the Parliament—all the very best for the new year. It has been a frenetic resumption of play in terms of the Parliament. The maiden speeches across the House have been a particular highlight. They reflect some very good decisions of the people of New Zealand voting in the general election, particularly those who voted for parties on this side of the House, of course. But in the genuine spirit of acknowledging and thanking those who have stepped up to the plate in public service and have been successful, who are now in this place, but also those who put themselves forward for public office, took that risk, put themselves and their families through that, we thank them too for their commitment and their service to democracy.

On that note: to all, a very merry Christmas. May you have a blue Christmas, and to those, particularly, who got the Elvis Presley reference, I say, thank you, thank you very much.

Rt Hon CHRIS HIPKINS (Leader of the Opposition): If ever we needed more proof—if these last few weeks haven’t given us plenty of proof—that this Government simply can’t live up to their own expectations, that was it. This was the Government that said that we’re going to be sitting right through to Christmas and we’re going to be back on 15 January, and yet most of the Government seem to have gone home for Christmas already. And, of course, we’re not coming back on 15 January; it appears we’re coming back on 30 January—about what we do every year.

So in keeping with the summer barbecue tradition, I would say that they are all sizzle and no sausage, but I believe that that particular currency has been somewhat devalued in the last 24 hours, so I’ll stick with an adage that the Deputy Prime Minister will be much more familiar with: they’re all hat and no horse.

But actually, speaking of the Deputy Prime Minister, there seemed to be a transfer in the Cheshire grin that Christopher Luxon had after election day on the day the special votes came out, from Christopher Luxon to Winston Peters, where it has remained ever since, although, well, except perhaps when he’s dealing with the New Zealand media. Never has a Deputy Prime Minister been so bitter in victory as Winston Peters appears to be following this year’s general election.

But what we have heard from this Government over the last few weeks is a plan, unambiguously, to take New Zealand backwards—not a plan to lead New Zealand forward to the promised land, but a promise to repeal this, cancel that, stop this, not do that, and cut this. No plan to actually take New Zealand forward.

That is something that I hope they will spend a little bit of time as they are lying on their beach towels over the summer holidays thinking about—how they are actually going to lead New Zealand forward, rather than simply dial back to 2017, as if the world was a perfect place in 2017, before the last Government took office.

But we’ve also seen from this Government that their priorities are confused and they are wrong. This is a Government that’s decided to prioritise mega-landlords over renters and first-home buyers. It’s a Government that’s decided to prioritise the tobacco lobby over the health and wellbeing of all New Zealanders, a Government that has decided to prioritise oil and gas companies over our environment, to prioritise millionaires instead of salary and wage earners, and a Government that has chosen to accept conspiracy theories instead of policy based on facts, evidence, and science. And we’ve just seen—and we’ve just seen—more evidence of that now, where they repealed legislation that would have done nothing more than produce an evidence base for better policy making in the future.

But what we’ve also seen from this Government is that they are adhering to that great children’s game called Simon Says—do as I say, not as I do. They are quite happy to use taxpayer funding for their own te reo Māori lessons, but when it comes to other New Zealanders, that’s got to stop. They’re happy to claim the Clean Car Discount for themselves, but when it comes to other New Zealanders, that has to stop. They’re quite happy to criticise others who use air force planes to travel internationally, but when it comes to themselves, oh, actually that has to keep going. The list of that could go on. It is a Simon Says Government. Be careful to listen to what they say, because what they do is entirely different.

With all of the twists and turns this Government has done in the last few weeks, it has felt like a pilot episode for the New Zealand version of The Office. There is no question who is assuming the role of David Brent on that side of the House, although I have it from the TV company that a second season is highly unlikely.

New Zealanders did vote for change at the last election, and we on this side of the House do respect that, but I don’t think that this was the change that they had in mind. I don’t think they voted for more Kiwi kids taking up smoking, for dialling back the work that we had been doing as a Government to cut down on vaping—something that they criticised us for not doing enough of, and now they want to stop the work that we were actually doing. I don’t think that Kiwis voted for the change that they are getting.

I want to acknowledge that for many New Zealanders, 2023 has been a difficult year, and I want to take a moment, politics aside for a moment, and acknowledge that the first thing that I did as Prime Minister was to travel to Auckland after the flooding on 27 January this year, followed shortly after by travel across the Tairāwhiti, Hawke’s Bay, and Wairarapa regions to inspect the cyclone damage in those areas.

I can say with sincerity that the pictures on the TV news of the damage done by those natural weather events actually understated the damage; it was actually worse on the ground than the pretty dreadful images that we saw on the TV news. We saw some of the worst of what mother nature can throw at us, but we also saw some of the best of the resilience of the Kiwi human spirit.

I met people who were going out of their way to support others in their time of need. I’ve spoken of some examples of that. I’m thinking of the nurse who I met who was seeing patients in a pub, because that was the nearest available building to see people who had health issues caused by the cyclone. When I asked her how she was doing, she burst into tears, because she’d been working for about 36 hours and it was the first moment that she had had to reflect on the fact that she had lost everything—her home, all of her possessions—and had gone straight to work. I think that just highlights how amazing New Zealanders are when they are confronted with some of the most difficult circumstances we can imagine.

So on behalf of the previous Government, I do want to acknowledge all those whose lives were turned upside down by those weather events. I also want to say that we dealt with some of the most difficult decisions that we have dealt with during the brief period that I had as Prime Minister as a result of those natural weather events. I want to thank my colleagues, particularly the Hon Grant Robertson, for the leadership that they showed in all of that.

Over the summer, I hope that all New Zealanders get a good, long, and uninterrupted summer. It feels like it’s been a wee while since we’ve had one of those, with a global pandemic, with severe weather events, with other things. I think New Zealanders are well and truly due a decent summer. I hope they get to spend plenty of time with their loved ones, plenty of time at the beach, plenty of time over the barbecue, and enjoying the best of what Aotearoa New Zealand has to offer.

As is tradition, I want to take a moment to thank all of the people who make this place possible to operate: the team at the Parliamentary Service, and our past ministerial staff, who have had a pretty difficult couple of months. One of the things about democracy is it’s actually hardest on many of the people who don’t get a voice in that process. So to our past ministerial staff, a very warm thankyou and a very merry Christmas to all of you.

To the Chamber and gallery staff, to the interpreters, the cleaners, the buildings team, the Bellamy’s and Copperfields staff, who I want to thank for keeping a healthy stock of sausage rolls in their cabinets, to all of our security guards who keep us safe, to all of our electorate staff across the House and the many, many volunteers and supporters who also help to make the democratic process function, a very warm thankyou to all of you. Thank you to the parliamentary press gallery for keeping us all honest.

Rt Hon Winston Peters: What?

Rt Hon CHRIS HIPKINS: I want to—well, maybe not all of us, Mr Peters, but I do want to thank them. Come rain or shine, they were there during the election campaign, asking us the difficult questions and making sure that New Zealanders had the information that they needed to make informed decisions.

I want to take a moment to thank the whānau, the families, the loved ones of all MPs and Ministers, past and present. Without their love and support, we would not be able to do the jobs that we do, and they make a lot of sacrifices that go unnoticed, and those sacrifices can go on for a long period of time. So I want to really take a moment to thank them. I know that they will be looking forward to having us back over the summer break. By the end of the summer break, I’m sure they’ll be happy for us all to come back to work again, but I do want to take a moment to thank them for all of the love and support they give to everybody.

And of course, to you, Mr Speaker, thank you for the essential role that you play or are starting to play in this Parliament. Can I wish you and your family a very merry Christmas, and to all the staff who work for you, the Office of the Clerk, and the Parliamentary Service, thank you for everything that you do to keep this place operating. And to all members, a very merry Christmas.

Hon JAMES SHAW (Co-Leader—Green): Firstly, meri Kirihimete to the members opposite. I know that some of them may not have understood what I just said, but I’m sure they understood the spirit with which I intended it.

Mr Speaker, I do wish you a very restful summer break, and I actually have not yet had the opportunity to congratulate you on your elevation to the role of Speaker.

SPEAKER: Oh, take your time.

Hon JAMES SHAW: Well, I’ve got nine minutes and 34 seconds on the clock, so I’ll give it a go. I would like to say that it might not be the job that you most wanted, but it does seem to be the job that you were really born into. So if the last few weeks have shown us anything, it is that you’re going to be a terrific Speaker, and we’re looking forward to working with you over the course of the coming three years as we continue to hold the “Coalition of Chaos” to account. For a group of parties that spent the election campaign trying to terrify New Zealanders what a kind of three-headed demon of a Government might look like, they’re doing a pretty good job of illustrating exactly what it was that they were warning us all about what might happen.

I have to say that it’s tempting to focus on the leaked Cabinet papers that started appearing largely before the ink was even dry, or the classic moment when the Hon Shane Jones waited until the Prime Minister and the climate change Minister were out of the country so that he could put nature on notice that he was going to dig it all up and burn it and do whatever the hell else he wanted as long as there was a buck in it—that that was the policy of this Government and, of course, without the right of reply of the actual Prime Minister at the time. I would have thought also, of course, that the Prime Minister—who used to run an airline—would have been in a clearer position about how he was going to fly to Australia, but there we go. The games of Truth or Dare that are currently playing out in the Cabinet room really are something to behold.

I do want to acknowledge the former Prime Minister, the Rt Hon Chris Hipkins, for his service to the country as Prime Minister over the course of what has been a challenging year. And I do want to acknowledge what a remarkable year it has been—in fact, the last several years.

Three hundred and thirty thousand people trusted the Green Party enough with their votes this year, and I want to thank every single one of them, as well as 8,000 volunteers who were the lifeblood of our campaign. I have not yet had an opportunity to put that on the record since the election—that the support that they have shown us has elected the largest Green caucus ever in our history, and we still carry their hopes for a better Aotearoa into this House every single day. Our constituents, the New Zealanders that we are here to represent, do deserve a Government that puts its best foot forward for the interests of everybody in this country, not just a few, not just those who have inherited their position. And they deserve an Opposition that rises to that with constructive and also honest challenges, and that is the role that we intend to take.

The things that we fought the campaign on are as relevant now as they were before the election: warm, dry, affordable homes for everyone in this country—

Rt Hon Winston Peters: All talk.

Hon JAMES SHAW: —rivers that are clean enough to swim in for everybody in this country; wages that are enough for life’s essentials and a decent celebration with friends and whānau over the holidays; the hope for a safe climate for their children and for their grandchildren, First Deputy Prime Minister.

At the beginning of this year, and the former Prime Minister acknowledged this, Parliament opened when there were two regions in the country that were in a national state of emergency and half the regions in the country were in a regional state of emergency. Cyclone Gabrielle and the Auckland Anniversary Day floods brought the reality of climate change into our homes and into our doorsteps—in fact, over the thresholds of our doorsteps and into the homes of many thousands of New Zealanders. And in response to those crises, communities stepped up—communities stepped up, neighbours helped neighbours, marae opened their doors once again to provide food and shelter for everybody who was affected, and I want to acknowledge that there are still thousands of people in this country who are displaced from their homes as a result of those. It should not take the worst of times to bring out the best in us, and yet in those worst of times the best of us is demonstrated time and time again.

There were two parties that used the word “back” or “backwards” in the election campaign, and we can certainly see how that’s playing out now that they’re in Government, where the more backwards component is clearly steering the waka on this occasion.

Communities know that when people have enough to get by, everyone does better. That’s what we know: when everybody has enough to get by, we all do well. The fact that we have created a society over the course of the last few decades which favours a few over the many—that is not a sustainable route for a society to go down, and the Green Party will continue to work towards a better New Zealand for all of us. Aotearoa, we believe, will get better, despite rather than because of this Government. In this House, we will do everything that we can to hold this Government to account day in and day out, even when they want to go home early for Christmas, despite the fact that it was because of their bills that they put on the Order Paper.

Grant McCallum: Do you want to stay?

Hon JAMES SHAW: I live here, buddy. So I’ll tell you what, if you want to moan about the fact that it’s taking a little bit of time for the House to get through your business that you put on the Order Paper and tried to jam through under urgency, then Merry Christmas to you, because that’s your problem to solve, not mine.

When they backtrack on policies that are designed to tackle climate pollution, we will speak out. The Green Party of Aotearoa will speak out. When they raid the Climate Emergency Response Fund, whilst squeezing social support for those who need it the most, we will hold them to account. For a Government that campaigned primarily on reducing the cost of living, they haven’t yet done a single thing over the course of this Government that will actually help to reduce the cost of living. If anything, they’ve made things more expensive, more precarious, for the New Zealanders who need that support the most. They have overturned the basic protections for working people. They’ve signalled that next year the cost of public transport is going to go up, child support is going to go up. All of those things that New Zealanders actually depend on are going to become more expensive as a result. I do want to acknowledge that people are feeling anxious, therefore, about the direction. The people who actually wanted to plan to make their wages go further to keep their rents lower instead got a gift-wrapped carton of cigarettes from the Marlborough man.

Amongst the people—I mean, they have been acknowledged as well, and I do want to add the Green Party’s voice to this. As this year comes to a close, I do want to acknowledge, on our behalf, the people who make this place tick: the library researchers, the security guards, cleaners, the Copperfields team, drivers, the maintenance team, the travel team, IST, messengers, Chamber staff, the House Office, the Office of the Clerk, the finance, payroll, HR—all of those people who make this place tick, and many of whom are in a more precarious position at the end of this year than they were at the beginning of this year. I do want to acknowledge those people. I want to thank them for their service, as we always do, and to acknowledge any anxiety that they may be feeling going into this Christmas.

I do also want to acknowledge the press gallery and the work that they do to hold all of us to account and to the standards that we ought to observe. From Marama and myself, from our larger-than-ever Green Party caucus, we do wish you all a very restful Christmas. I do want to acknowledge the Green Party team that support us every day.

To our colleagues in the House, please do have a good break. We will be working alongside you next year as we try to work on behalf of all New Zealanders here in the green city of Pōneke next year. Merry Christmas.

Hon DAVID SEYMOUR (Leader—ACT): Thank you, Mr Speaker. As I listened to the last two speeches from Labour and the Greens, I couldn’t help but have a few thoughts. That speech by James Shaw sounded like a speech by a man who’s resigned already. He’s just forgotten to actually leave. He was phoning it in. The energy, the conviction, it just was not there. And we wish him well; he’s nearly free.

There was the speech from Chris Hipkins, and it could easily have been given by Grant Robertson. Now, here’s the most dangerous thing that the Opposition, particularly the Labour Party, could do to the Government—the most dangerous thing they could do. You see, they in Government presided over a time when we had record inflation. The economy is having three-quarters of negative growth in one year. That’s their legacy. In terms of social division, they had fires on the lawns of Parliament. They have a crime epidemic that has terrorised people just trying to run a shop. So what’s the most dangerous thing that the Labour Party could do to the Government? They could actually start to admit they made some mistakes and say they’re going to change, but they’re not doing anything like that. They are totally unrepentant. They would have you think that they were somehow a perfect Government that did nothing wrong and, if only they were back, then actually everything would be fine. Now, the problem for Labour is nobody believes that. Nobody. You know, the country under them had people starting off by saying that the country is going in the right direction and finished off saying it’s going in the wrong direction. Until the Labour Party actually start to do some penitence for the enormous damage their policies did to New Zealand, they are no danger. They have a plan to be in Opposition for at least nine years—or, as Winston Peters suggested today, 25.

I couldn’t help but notice that, listening to their speeches, but I also just say to you, Mr Speaker, congratulations on your election, and thank you to the many staff in Parliament that you effectively lead—those in the Office of the Clerk, the House Office, the cleaners, the travel office, the library. I want to say IST, but we’d particularly like to give a shout-out to someone—I don’t know his full name. He’s known to us only as Super Tom, who, as people who have had help from Tom know, is the most extraordinary, helpful person in an IST department—possibly the only one in the world. We’re very grateful for Super Tom.

I want to thank the security, looking smart and a lot tougher these days, and I think that makes us all feel good; the caterers; but also those in Government departments. Those that I’ve been responsible for—in education, health, and Treasury, Pharmac—we’re very grateful for the work that they’re already doing to support us, and that goes right across Government, including the official who seems to think that they were in communications with Minister van Velden’s Cabinet paper. We’d like to thank them. We’ve got a lot of good policies if they want to help us get them out there. Well, I tell you what, it hasn’t worked out too well for them now, has it? I also want to thank those staff in the ACT office, ably led by Andrew Ketels. We’re lucky to have extraordinary people who come and work for us and stay. To have a happy and productive workplace is something I’m extremely proud of and grateful for the people there.

And that goes also for ACT’s MPs. We’re proud we’ve had a record year. We’re grateful for the quarter million - odd New Zealanders who have trusted ACT with their party vote. Those voters, my neighbours in Epsom, who have returned me to this place for a fourth term—I’m very grateful for that. And our neighbours next door in the Tāmaki electorate, who now have a brilliant, new, young, and dynamic member of Parliament—we’re very grateful for the trust that they’ve placed in us. But also in the quality of those MPs that have been elected in that record result, we’re very proud to have five new MPs, six returning MPs. We have an extraordinary team, and people who trusted us with their party vote can see that they have had real quality.

I want to also acknowledge our other parties in Government. Te Pāti Māori—I was thrilled today to see that Debbie Ngarewa-Packer has opened the Standing Orders and could even quote one. I’ve got to tell her, the one that she was looking for was actually 396, “Content of replies”, but that will require her to turn over another few chapters, because if you’re going to talk about tikanga, it’s about time that Te Pāti Māori respected the tikanga of this particular party as well.

I particularly want to acknowledge the Green Party, and I want to acknowledge the significant work that they’ve done on climate change and installing a policy that looks to be ongoing. I think they should be congratulated on that, and we wish them a very merry Christmas. To the Labour Party, we wish you, too, a very merry Christmas. Opposition is important work, and we look forward to our exchanges, including areas where I hope we can build consensus on policies for the long-term future of New Zealand.

To my colleague the Rt Hon Winston Peters and the New Zealand First Party, a very merry Christmas to you. You know what? I never quite believed when they said that politics makes strange bedfellows, until I got into bed with you guys. But none the less, in contrast to what the Opposition would say—they have this kind of binary argument against this Government: one is that we can’t work together, and the other that we’re working so effectively that we’re rapidly doing all these terrible things. And they’re going to have to work out which one it is. Is the Government being ineffective and divided, or is it being too effective? They’re going to have to work out which one it is pretty soon.

I heard James Shaw say that we play some sort of game—I think Simon Says—in the Cabinet room. Unfortunately, imagining what happens in Cabinet is as close as James Shaw will ever get, because I can tell him that we have a very united Government working effectively to deliver. And that goes for my friends and colleagues in the National Party—Chris Luxon, Nicola Willis. Up and down the country, to see new blue MPs joining us in Parliament is a fabulous thing, and we look forward over the coming years to tackling in a deep and substantial way the serious challenges that New Zealand faces.

This country has more land than most, fewer people than most, and yet a massive shortage of places for people to live. That is a real failure. It’s a failure that can be fixed, and I have great confidence that with Chris Bishop leading in that area, we are going to make enormous progress at making sure that this is a place where, once again, the Kiwi Dream of a property-owning democracy can be a reality.

We got news this week that in the third term of this year, fewer than half of kids regularly attended school. And that’s just kids that are enrolled. This is the size of the challenge that we face, but I’m confident that along with Erica Stanford, I, as Associate Minister of Education, am going to make a major contribution as part of this Government to finally get kids engaged in learning and have a school system that has the flexibility to deliver and the accountability for delivering it—the opposite of what they’ve had for the last six years.

We face serious challenges with crime after the previous Government tried the experiment of being nice to criminals to see if they’d be nice back. Unfortunately, too many victims know how that experiment ended, but, luckily, we know that the experiment is over, and this Government will be locking up the bad people and rehabilitating them. Rather than putting the criminal at the centre of the criminal system, we will be putting the victim at the centre of the criminal system.

And we are going to ensure that we have a Government that makes careful use of taxpayer money, because the previous Government’s record—a 30 percent increase in expenditure per person after inflation, with worse results in every sector, from safety to health to education. That is a disastrous legacy, and that’s why the Opposition over Christmas need to actually do some repenting and reflecting on what went wrong in New Zealand under their leadership and policies, which they have not changed.

But this Government has already, in just a few weeks, found how we can save $7.5 billion dollars from the previous Government’s spending plans. James Shaw says, “They haven’t done anything that will improve the cost of living.” I can tell James Shaw saving money and stopping Government waste takes pressure off inflation. That helps the cost of living. I can tell him. That is exactly how we are going to do it.

So, Mr Speaker, I finish by wishing you, again, a very merry Christmas. I wish you, my fellow parliamentary colleagues and your families, a very merry Christmas. To all of those who have supported us, volunteered, campaigned, and voted for us, we thank you for your support, and we look forward to 2024, when we will continue to deliver on the real change you ask for. Thank you, Mr Speaker.

Rt Hon WINSTON PETERS (Leader—NZ First): Mr Speaker, as Parliament draws to a close, New Zealand First wishes to express our thanks to you and your staff. We may not always agree, Mr Speaker, but we’ve enjoyed the calm and the humour you have brought to the House. We must also thank the Rt Hon Adrian Rurawhe for having served in the Speaker’s role for the majority of this year, and for bringing a certain independence and professionalism that could be observed as being widely respected by parliamentarians.

To the cleaners, caterers, security staff, drivers, library, and Hansard staff; to the real workers, as well as to the many office staff from the precinct, we thank you for your exemplary service. This building would not function without you, and I wish you a happy and safe festive season.

I must also acknowledge all of the first responders and essential services—our policemen and women, firefighters, paramedics, doctors, nurses, corrections officers, and all those other front-line professionals and volunteers trying to keep our country safe and running this year. We all thank you and also have a special message of gratitude to those who cannot go on holiday, cannot have a break, and must run essential services right over Christmas. So pay some thought to them and remember them when you’re having your holiday.

To my colleagues in New Zealand First, our caucus has come together quickly and well. So thanks for your support and excellent work to begin the term, alongside all of our parliamentary and ministerial staff and alongside our coalition colleagues.

Mind you, we got our Christmas present on 14 October. That was election day. A lot of people couldn’t read the polls, but it was 14 October and we had a team that went out, Cinderella-ised and marginalised, despite everything that they say at the moment. Maybe my eyesight is failing me, but I couldn’t see those people at those meetings we were having, but they tell me they were there.

The reality is that politics is about reporting every angle, every side, and one of the most amazing things about politics—whether it be on the far left or the far right, right around the world—is that numbers and packed halls usually mean something. It means potential market share, but it didn’t happen, and I just want to remind those who were congratulating the media today to have a good look at the details of the journalism interest fund. Have a look at what its terms were and have a look the clause that says if you don’t obey this, pay the money back. It’s all there, clear as daylight, and I hope we never see that again in our country, because the fourth estate is critical to a sound democracy. I hope they go away and reflect on that before they come back next year.

I do thank my party members around the country who worked so hard to bring about the result, and I also want to reciprocate the words that David Seymour has expressed, and I’m sure so would Mr Luxon do if he was here as well. We have put together, I think, a very sound coalition Government that can go forward, and the fact is that if we all agreed with each other, we would not be in our different parties—that’s the essence of it. If we all agreed and had consensus, we wouldn’t be in different parties. We’ve all got something to contribute, and what we’ve got to do is rebuild a country that was, in a very short space of time, rapidly destroyed.

Please don’t talk about the Labour Government of 2017. I can recall just that before 1 October 2017, a Talbot Mills poll came out, and they were on 20 percent. We’d risen to 19 percent and we thought, “Good heavens! This is bad timing for us. There’s going to be a collapse in the Labour Party.”, and there was. Jacinda Ardern got chosen on 1 August, and 54 days later, she becomes the Prime Minister, because we are not biased. We’re fair: we give people a fair go and give them a break. But the reality is they want to now say that that was them—no, it wasn’t.

There was a handbrake at the time. Remember light rail? It started off at $1.9 billion, then $8 billion, then $14 billion to $16 billion, and then $29 billion, and some party stopped it, because we didn’t think it was ever feasible in the first place. But here we go, we got programme after programme, but look at their advertising in 2020: everything we did was in their campaign advertising.

I’m reminding them about that, because that’s the reason why they’re going to be in the wilderness a long, long time, and I’ll tell you what their problem is now. They haven’t got a leader, and it showed in the lack of lack of intensity and in the repetitiveness of the attack today. With the greatest respect, this is not the Labour Party I once studied, and if they’re going to make a change, the best thing they can do is start remembering who they are meant to represent, for in the end, it’s the numbers that matter.

Hon Kieran McAnulty: Who? The tobacco lobbyists, or forestry, and all that sort of stuff?

Rt Hon WINSTON PETERS: Oh, here we go—tobacco. This is the outfit, you see, that were happily changing the tobacco rules so that from 2011 to now, they have taken $24 billion off these users—cigarette smokers and what have you—and of those, one-third are Māori. So $8 billion has been taken off Māori. Are you going to the Waitangi Tribunal about that? No. That’s more than all the Waitangi settlements put together, because of their woke signalling to the Māori people.

Education will change that. As a famous man called Pōmare, the first Māori Minister of Health, said all those years ago, education and training changes that, not the imposition of woke taxes—$8 billion has been taken off Māori. And they’re not too happy now, are they, when they’re outside there, throwing flags around, and saying what they should be doing. We’re want to change Māori and give Māori a chance to have freedom and education and information to make the changes themselves. But back to the—

Darleen Tana: Honour Te Tiriti.

Rt Hon WINSTON PETERS: Oh, honour the Treaty—really? Which Treaty are you talking about? Which Treaty are you talking about? Are you talking about the one that you are writing every day because you don’t know anything about the history of this country, or the one that great—[Interruption] Oh, not more than me. No, no, you won’t. Excuse me, I was there a long time before you were, right there—[Interruption] No, right there with Whina Cooper when you weren’t—right there when all these great causes like kōhanga reo were started, and you weren’t. I can speak to you all day about things that I’ve done, and all we’ve seen from people like you is noise, noise, noise. All talk—all hui and no do-ey.

We’re not having that going forward, and I hope that member goes home and thinks at Christmas-time on the fact there were people in the past Māori world with far more knowledge, far more intelligence, far more integrity, and far more respect than this person shouting out today. Have you ever seen a Māori on a marae behave like that? Do you ever see a Māori, male or female, on a marae behaving like that? Uh-uh, no you don’t.

Here it comes—this new version of Māori behaviour. They come in here, not prepared to hear the other side of the story, and let me ask you this one question: what on earth have you ever done for Māori? Any of you—give me the list. I tell you what, I could put it on the back of stamp with a carpenter’s pencil and there’d be room left over. That’s what you’ve done for Māori. In our case, we’ve done it and we’ve meant it, and we’re proud of it.

But, as Shane Jones would say, the kūmara never says—he asked me to do this, so I’m not going on boasting about it. All right? But let me tell you, I know what’s happened here. Out in the Māori world, using the radicalisation of a few elite—people who know nothing about the Māori world, really—and in this case, Te Wai Pounamu. Half of the mining in the South Island is on their chest right now. The greenstone is all there, huge, almost pulling their necks down—because if they were real, you wouldn’t need to wear that, would you? All imagery, all show—no action.

Can I just say that this time, over Christmas, there are going to be a lot of people around the barbecue highly relieved that there is a change of Government. I feel it; I see it. You can see it in their eyes when you walk down a street. They’re saying they’re so pleased that there was a change of Government. If you learn to read a room and watch people, there’s a new breath of relief and a fresh confidence, and our job is to take that on to rebuilding the country we once were with the principles that we once had but with the policies that understand that it’s sound common sense, sound commercial policies, that put a businessman and woman alongside a businessman’s and woman’s workers and their staff, and they are both of equal value—they are critical. We understand that. We’re not here as a party just arguing one side of the story; we want everybody to realise that our future is best as a country going forward together, in a country that has always been known—and it was known at time of the Treaty of Waitangi—as New Zealand. None of the chiefs—

Hon Kieran McAnulty: Listen up—he was there.

Rt Hon WINSTON PETERS: “Listen up”, he says—I was there. No, but my chiefly ancestor was, and he’s a whole lot more brighter than you. He’s a genius compared to you. I respect this ancestor and I respect all those chiefs back then, who knew what they were doing, and not one in the whole breadth of the country ever called the country Aotearoa. Have a happy Christmas.

DEBBIE NGAREWA-PACKER (Co-Leader—Te Pāti Māori): Tēnā koe e te Pīka. Tēnā tātou e te Whare. Hā ki roto, hā ki waho, waerea mai.

[Breathe in, breathe out, clearing.]

Last night we finished at midnight. I think we must have done about 15, 16 hours and I was feeling a little bit sorry for myself. I got down to the ground floor and I saw our whānau, our Pasifika sisters, and they were all getting ready to come in and clean this building. It made me humble myself, remember my place, and remember that every day we walk in and the pixies have done their thing—now, not the same pixies that Shane Jones simply refers to, but the real pixies around here, the real fairies that are here, being real agents of change every day in our daily lives. They are cleaning up after us. They are correcting our spaces and places. They whakanoa—I don’t know how they whakanoa this space, but they do. Every day, we come in and it all looks perfect—the caterers, the Parliamentary Service. The same goes on when we go out into our supermarkets, our schools, our hospitals, our buses, the motels, the restaurants. But in this particular building, I want to mihi first and foremost to all of those who behind the scenes make everything happen for us.

I know at times the whole world or the whole of Aotearoa thinks that we are “it”; we’re certainly not. So I want to mihi to the people we don’t see, who we don’t hear. I want to humble myself to you for every day what you do to make this possible, and I really love the cleaner who’s got the Xmas caddy, because sometimes we walk out of here and you feel like you’ve just been shot in the stomach and in the back, and you’re limping up the stairs and you see her with her little caddy. I don’t know if you’ve all seen it, but it’s brilliant. It’s just brilliant for us to have around—to actually have staff who show their character in this place, because in institutions at times it’s really hard to see their character.

I think it’s really important that we continue to stay humble in this place, and it being my second term, what I have seen is waves of red fill the place and really assert themselves really confidently and be really proud. And then I’ve seen them quietly leave with all their hopes and their passions and their boxes. We’ve had to sit in the corridor and watch a whole corridor empty out. I want to remind ourselves this year—and I congratulate our Government; I truly do. You worked hard and you’ll continue to work hard to stay together. But those of us who campaigned—and you have taught me the true meaning of what goes on in campaign, stays in campaign. But in all sincerity, I think it’s really important to remember that we are replaceable. Most of us politicians are indeed forgettable, and not many of us are going to end up in bronze statues, and not all of us will become dames and sirs or Winston Peters. Those are unique politicians—and I pay respect—but we also need to stay humble and remember our egos in this place and remember the people that we’re performing in front of.

I also I want to mihi to our Pīka, who knows that I started, first and foremost, by trying to bring in my whanaunga from Te Tai Hauāuru; I’ve never seen him move so fast in his life to decline the offer. But we have enjoyed your wisdom. I know that you have some long-term relationships in here, and even though our ACT leader has gone, I’m enjoying getting to know and having some space and some colleagues now with us to be able to understand the tikanga of the House. And I ask for the patience and enjoy listening to you all, old and new—breaths of fresh air or old air. It’s important for us to all understand and to learn that Governments are not the vessels of change as much as we think we are. We’ve had some brilliant maiden speeches this year, but we rise and fall with the tide and the will of our people. I’ll keep reminding that there are two Cinderellas in Parliament this year. We have experienced what it’s like to leave here and to not be voted back in. I think it’s really important to remember ourselves, to be humble.

We find ourselves as Māori, Pasifika, tangata Tiriti in a really unique situation where 83 percent of us didn’t support this Government. I’ll say this, and it’s not to takahi: 1 percent voted for ACT, 4 percent voted for New Zealand First, 5 percent of Māori voted for National. My tono to you, even though that’s the case, is that you don’t leave tangata whenua behind. I get where you’re going, but I also want you to see and hear our people and who we are today. Because even though we didn’t vote for this Government, we are various peoples of privilege and how we use that privilege is really important and how we check ourselves—and having privilege doesn’t mean that we haven’t had hardship. Having privilege means that there are certain times when people have an unearned benefit or advantage.

I really ask for our mana hauā, for our tāngata hauā, for our rainbow communities, for our Māori and Pasifika communities that we stay focused on what it is that you’re needing to do. But please, please don’t make them expendable as you’re asserting your style of politics in Aotearoa in this very small, short time, because history has shown us that things often change very quickly. Te Tiriti had 500 rangatira; the Treaty had 50 rangatira. That’s just facts, and I’ll leave that there.

We are a young nation. We’re the last of the islands to be colonised. We’re known as a nation of progress. We are acknowledged for how we made decisions in the past—how we’ve done it with women’s votes, how we’ve done it with our nuclear-free moments, how we’ve done it with our tangata whenua, and how the Treaty is seen. So I acknowledge today that we’ve reached a point in our political environment and our moment in time where we have, as tangata whenua, progressed so far that it’s created fear. And somehow it’s been viewed that we are putting a certain sector of people who are used to a certain type of superiority and power at risk. These are just my views to offer in the adjournment debate.

I’m not quite sure what we do with this knowledge as a nation. What I am really clear on is that I’m a politician for a culture and a group of society where 70 percent of our population are under the age of 40 and 25 percent of our population are under the age of 21. I invite us to see who some of these mokopuna are and who they belong to. So they belong to some of the largest employers in Aotearoa. They belong to some of the largest landowners and providers of milk to Fonterra. They belong to some of the largest fishing industries. They belong to some of those with the largest fishing quota. They belong to some of those who have the largest infrastructure and tourism spaces. They belong to some of those who have the largest blueberries and the largest horticulture sectors. They are shareholders here in Taranaki of those who have the Government Crown leases. They belong to shareholders of perpetual funds that actually perform better than local and regional government perpetual funds.

So my hope is that we go away and have a good break, because everyone deserves it. It was a vicious campaign and people worked really, really hard to get their points across and to get to where they are today. But peace and goodwill is the theme that I intend to lead from our party for the season and that we use this period to be more tolerant, perhaps, to use our opportunities and relationships to give guidance, to fix where we have extreme views. I acknowledge that at times it will be seen as us having an extreme, opposing view. Also, I urge that we continue to behave with decorum and to be held accountable at times when we don’t.

To our own people who are out there, I want to thank you for your support, through the polls and the media—we don’t have a great relationship with the media. In fact, I often use Jason as part of my TikTok content. I hope he gets the good spirit that’s intended in.

But I also I want to remind our people that we must be persistent. We must be patient. I am not the end game. You are not the end game. The end game is still being born. Their end game is still being born. We must stay focused on what matters. We must remember our tūpunas’ lessons to be smarter, to be peaceful, to not be degrading ourselves, to act with dignity, and also oranga whānau, oranga whenua, toitū Te Tiriti.

I hope also that we take this time to remember those that are suffering, that are in pain, to look after the elderly, to make sure that we take time out for them. Don’t do the phone calls; if you can, get around and see them. Not everyone is having a happy Christmas. Not everyone has something under their tree. So please take time to help in whatever way that you can, with whatever generosity and charity that you have.

I hope also that we do all we can do to a ceasefire and to stop the violence that we see going on to children and innocent civilians, and we use all our sphere of influence, no matter what side you sit on, to make sure we spend this time to stop the world from being as cruel and harsh as it is to peoples, and we try and build a better, peaceful, dignified world for all to be able to live in.

I wish you all a merry Christmas, especially you, e te Pīka. I cannot promise that Rawiri Waititi won’t get booted out in the next term, but I certainly think will be five others that will be happy to fill that out for him as well. So all the blessings to you all. Kia ora rā.

Hon CARMEL SEPULONI (Labour—Kelston): I want to acknowledge the last speaker for that beautiful speech. It was just such a lovely tone. I can’t guarantee that mine will be of the same manner. So we were told that we would be kept here until Christmas. We’re here, and then we come to the House and we find out the most senior person from the National Government is Chris Penk—here on the last day. I’m really proud of the fact that we’ve lasted till the last minute, and it just goes to show how seriously we take this place, how seriously we take our representation, and that even though we may not have won the election, we are up for the fight.

We came back after the election to urgency, and what did we come back to in terms of what the Government perceived as being urgent? The repeal of fair pay agreements, the repeal of the Resource Management Act, the repeal of the Clean Car Discount, and then the extension of the 90-day bill. This is what they prioritised in their first two weeks—legislation that doesn’t serve to actually help New Zealanders but actually takes away from them. And that is indicative of what we can expect for the next three years under that Government. They are mean-spirited, they are the Christmas Grinch, they are the Scrooge, Negative Nelly, and now we’ve just heard in the House today that someone was at the signing of the Treaty of Waitangi even.

I feel for New Zealand. I don’t think they actually knew what they signed up to. Gracious in defeat—we lost the election, and we are gracious in defeat and we absolutely accept that. But I don’t think they know what they signed up for. How could they know what they had signed up for when we were hit immediately with the repeal of smoke-free legislation? No one knew that was coming. Cuts for the tax cuts is what we got. And, actually, tax cuts where we don’t even know when they will arrive, what they will look like, how they will be delivered, or how much they will cost.

I will add too, “Sorry but not sorry.”, said the Government when during the campaign they said, “Oh, we’ll just do the proposed changes for Working for Families that Labour said that they’re going to do.”, and then they get into Government and then they say, “Oh no, sorry, New Zealand—can’t do that now.”

New Zealand had no idea what they were signing up to when they voted in that side of the House. I think it’s very fair to say there’s been a bit of a cringe fest watching this three-headed demon, watching this very awkward three-way political relationship going on over there. And lots of people are saying “How long will this last?” And many people are saying, “Give it 18 months.” Because, actually, when the head cowboy has to give up the ranch to the nephew cowboy from Northland, as well, then I think we’re going to see a few problems. We all thought that the person inheriting the ranch would be Shane Jones, but it turns out it’s that it’s Rawiri Seymour, and let’s see how that goes at the 18-month mark.

I do want to end on a positive note, even though that wasn’t that negative really. So I’ll move away from the three-ring circus, the awkward political three-way, the three-headed beast, over to my thanks for the many wonderful people that do work in this place, and they have been named. I want to apologise to the people that work in this place that will no longer get access to the fair pay agreement—our security guards, our cleaners—and I apologise on behalf of the Government for the fact that that will no longer happen.

I acknowledge that it has been a really tough year for New Zealand, actually, and I was there in Auckland on Auckland Anniversary Day when Auckland was hit by the worst flooding that I think we’ve ever seen. At the same time, my house, along with many others, was flooding too, and I want to acknowledge that there were so many not just Aucklanders but New Zealanders that were impacted by those weather events. I also want to reiterate what James Shaw said earlier. It was the first real wake-up call for many people that climate change is real.

I want to wish everyone in this House a good Christmas. It has been a hard year. I want to wish the general public a good Christmas and please, please God let the weather be better than what it was last year.

Hon SCOTT SIMPSON (National—Coromandel): Thank you, Mr Speaker. Notwithstanding that last contribution, I want to thank and congratulate members who have participated in this adjournment debate, because we have come to the end of what has been a very long year, both in terms of real terms and in terms of Parliament. And I want to acknowledge all of those people that you oversee who make this place run on our behalf—who serve and provide us with the services and the ability to do the jobs that we do—on behalf of us all.

So it has been a long, hard year, and none more so than for those who were impacted by the weather that occurred, first in Cyclone Hale and then in Cyclone Gabrielle, and I know that all too well for people who live in my own beautiful Coromandel electorate, but in other parts of the country that has been the case as well. But here we are, nearly at the end of the year, on the cusp of the prospect of a new year of new hope, new vision, and new direction for the country. And it can’t come soon enough, because if ever there was a symbol of how out of touch and how tone-deaf the Labour Party had become, it was that last speech. They were out of touch, disconnected, and remote from the people of New Zealand. They no longer shared the reflective views, aspirations, and hopes of so many New Zealanders that put them on the Opposition benches for those reasons, and there they will stay for a very long period of time.

But we are ultimately a participatory democracy. It involves people participating, and as my late mother used to often say, “The world would be a very boring place if we all had the same views and opinions.” This is a robust debating chamber. It is a Chamber where strong views and strong opinions should be strongly argued, and that’s right and proper in a functioning democracy. But it couldn’t happen—none of us could be here without the help and support of the volunteers that put us here from our various parties. And I want to acknowledge in this final contribution this year those people from every political party—whether they are parties that we agree or disagree with—that make democracy in our country work. They are the people who put up the hoardings, deliver the pamphlets, knock on doors, make phone calls, and have the commitment of their views and opinions and then the commitment to actually go out and do something about it. And those are the people who, I think, are the heroes of our democracy. The people who frankly get up my nose are the ones who say, “I don’t care, it doesn’t matter, it’s not important.” But it is important, they should care, and it does matter. So to all the volunteers from every political party, whether they’re candidates, doorknockers, pamphleteers, phone ringers or whatever, I say thank you on behalf of our democracy.

Every three years, we have a general election. We can be proud of that in New Zealand. We have a peaceful, easy transition of power. That doesn’t actually happen in every country, as we all know so well. So, I want to acknowledge the respectful, professional way that the outgoing Government transferred power. As I say, that doesn’t necessarily happen in every country. We as Kiwis, I think, can be proud of that process. We may not like the result—many people—but we get on with it and we do it and we accept it. Then we have the ongoing, robust debate, as we should. Nothing wrong with that; that’s exactly as it should be.

So, in conclusion, on behalf of my National Party colleagues, National Party supporters, volunteers, and members up and down the countryside, ACT and New Zealand First members, parties, supporters, volunteers, Te Pāti Māori, Green Party, Labour Party—all those people, I want to say: thank you for your contribution to our functioning, participatory democracy. I want to wish you all a safe, peaceful, happy, contented Christmas.

Finally, it would be remiss of me, as the humble but hard-working member of the Coromandel, not to invite you all to come to the beautiful Coromandel and spend some time, and more importantly, some money in my electorate. Mr Speaker, thank you very much, merry Christmas, kia ora.

SPEAKER: This is the one time of year that the Speaker gets to make a speech. I’m tempted to spend some time talking about the challenges that come with the joy, the disappointments, the exhilaration of the year, etc.—all that the country has been through, but, like many of you who are still here, I’ve got a taxi waiting. So I simply want to acknowledge my fellow presiding officers: Barbara Kuriger, Teanau Tuiono, Maureen Pugh, and Greg O’Connor. They certainly are doing a good job, and I’m sure that you all appreciate that.

I want to particularly acknowledge the Rt Hon Adrian Rurawhe, who might have been here and giving you much longer and more learned speech, had it not been for different circumstances changing all of that. Sir, I said it a couple of weeks ago, you brought a calm and a dignity to this House that was very much appreciated. I think the way in which the House has been substantially self-managing, in a way, over the last three weeks—no, well, by and large it has. It is in no small way due to the legacy that you have left, and I thank you very much for that, and wish you personally all the best for the Christmas season and the new year. Thank you.

Could I acknowledge the Clerk, David Wilson, and his staff—there are hundreds of them; they do a great job keeping us all on track; the Parliamentary Service CEO, Raf Gonzalez-Montero, and the nearly 700 staff, I think, both in Parliament and out of Parliament, that keep us working as well.

To all the groups that have been mentioned by the previous speakers. There’ve been lots of thankyous, lots of salutations—I simply stand by all of that.

So all I need now do is thank my own staff, Felicity Cuzens in Christchurch, Laree Taula here, and all the families of all the MPs, for all that they have to give up in order for all of us to be able to do the job that we’re elected to. My sincere thanks. Again, I echo the sentiments expressed by many other previous speakers.

Finally, can I just wish all members of Parliament a very happy Christmas, a happy New Year, and all the best for whatever their wishes are in 2024.

Motion to adjourn House and sitting days agreed to.

SPEAKER: The House stands adjourned until 2 p.m. Tuesday, 30 January 2024.

The House adjourned at 5 p.m. (Thursday)