logo
The ins and outs of what is in, and out, of the Standards Bill

The ins and outs of what is in, and out, of the Standards Bill

On Thursday, as Act New Zealand leader David Seymour was touring Dunedin, back in Wellington a somewhat surreal select committee process of keen interest to him was drawing to a close.
The finance and expenditure select committee — or at least a Covid lockdown-reminiscent Zoom version of it — spent all week considering submissions on Mr Seymour's trophy legislation, the Regulatory Standards Bill.
Predictably, given the avalanche of criticism the Bill has received in the leadup to the hearings, the vast majority of submitters were implacably opposed to it, for a wide variety of reasons.
This, somewhat disingenuously, mystifies Mr Seymour, who professes the Bill — which he has tried and failed to pass in previous parliaments — is nothing more than an attempt to improve the law-making process in New Zealand.
This would be done by each piece of proposed regulation and legislation being reviewed through the lens of a set of regulatory principles ... and therein lies the fundamental issue critics have with the Bill.
Put simply, what makes a good law is a contestable idea, and what Mr Seymour thinks should underpin responsible and responsive legislation is not a universally shared concept.
The Bill does have a proposed safeguard in place — a committee to oversee its function — but many submitters also doubted it would, or could, be a truly independent watchdog.
Some things in the regulatory principles are non-contentious: few would argue with laws being consistent with existing legislation, effective, having heed of the rule of law and not impinging unnecessarily on rights.
But opposition to the Bill revolves, generally, around two things: what has been put in the Bill and what has been left out.
What has been put in are things like guarantees of property rights and personal freedoms, and what has been left out is any consideration of the place and role of the Treaty of Waitangi or environmental protections.
Bill supporters have been reassuring on this front, arguing that the principle that the public interest be considered when drafting laws and regulations covers a multitude of concerns; opponents, however, lack faith that those who will determine what the public interest actually is will truly reflect their concerns.
A variety of southerners appeared before the committee this week. The first salvo from the region was one of the few in favour of the Bill, Queenstown's Basil Walker (once briefly an Act candidate) arguing that New Zealand could not increase economic growth, and hence income from business taxation, without the sort of better governance reforms the draft legislation proposed.
Much more scepticism was evinced soon after by the Dunedin City Council, whose chief in-house lawyer Karilyn Canton said that the council was concerned the Bill was neither necessary or desirable, and overly narrow in some parts and over-simplified in others.
She said the council felt the Bill ran counter to existing Local Government Act requirements concerning consideration of Treaty of Waitangi issues and environmental concerns. It also felt that it would be required to review bylaws and plans for their compliance to the Bill's principles — ironically adding to compliance costs when the Bill purported to reduce red tape.
Speaking of the DCC, Tuesday featured a blast from the past when former mayor Aaron Hawkins (who was quite the juxtaposition to his preceding submitter, the Taxpayers Union) got his five minutes of fame.
Mr Hawkins did not hold back, rejecting the Bill in its entirety — "no amount of tinkering can save this Bill from itself" — and saying he was appalled by Mr Seymour's attacks on opponents of the legislation.
"Ultimately Mr Seymour's attacks leave me confused because either this Bill is necessary to shape all of our legislation coming through the House, as he says, or it's nothing to be worried about, as he also says, because it cannot be both."
University of Otago Wellington public health academics Calvin Cochran and Amanda D'Souza did not have the same high-flying rhetoric but each had deep concerns over the Bill, which they felt posed unacceptable risks to public health, the environment and Maori/Crown relations. The law change could stymie future legislation on tobacco and vaping control, a potential sugar tax on junk food and drinks and controls on alcohol abuse.
Mr Cochrane, a research fellow, further noted that health positive legislation — specifically the smokefree environment laws — might never have been passed had they first had to clear a scrutiny of their infringement on property rights.
That afternoon the Otago University Students Association wheeled out its representative (and Labour-backed council candidate) Jett Groshinski. OUSA, in the manner of Mr Hawkins earlier, was not pulling any punches either, calling the Bill not just flawed, but dangerous.
"Let's not sugarcoat it, this is a calculated attempt to rewrite how we make laws in this country, shifting power away from the public and towards an ideology that puts profits before people."
Completing a local body candidate-packed lineup of southern submissions, on Thursday the Green Party opted for the party's Dunedin mayoral candidate Mickey Treadwell as the frontman for its organisational submission in opposition to the Bill.
The Greens, unsurprisingly, highlighted the Bill's "egregious omission" of any reference to the Treaty, the environment and the Bill of Rights Act.
More locally, Mr Treadwell felt it would create legal ambiguity for local bylaws, plans, liquor bans and freedom camping rules.
Finally, and even more locally, he raised the spectre of residents in South Dunedin, from where he was zooming in, being ankle-deep in climate change-fuelled flooding, and asked rhetorically what the Bill's claimed improving of regulatory standards might do for them.
Well, perhaps all the paper the Bill has generated this week might be used to build bulwarks and other defences?
mike.houlahan@odt.co.nz
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

How investors can stack the odds in their favour in uncertain times
How investors can stack the odds in their favour in uncertain times

NZ Herald

time3 hours ago

  • NZ Herald

How investors can stack the odds in their favour in uncertain times

Despite all this, global share markets remain remarkably resilient – hovering at, or near all-time highs. Investor optimism has been fuelled by fiscal stimulus in Europe (mainly Germany) and the unstoppable rise of artificial intelligence, which just saw Nvidia become the first company to be valued at US$4 trillion. With a constant barrage of headlines and a wall of worry to climb, yet equity markets near all-time highs, investing in the share market can feel a bit like a gamble. Much like a roulette wheel – black you win, red you lose. But is this really true? Is the share market a casino? While it's tempting to see markets as games of chance, the evidence tells a very different story. Unlike the casino, where there is only one winner, the share market is not a zero-sum game. History suggests that patient, long-term investors – rather than lucky punters – stand to win, as share markets tend to rise over time. The house always wins Casino games are typically win or lose affairs, with the probabilities skewed in favour of the house. That's why they say, 'the house always wins'. Take roulette, for example. The wheel, in most instances, has 38 numbers: 1 to 36 in either red or black, plus 0 and 00 in green. The dealer spins the wheel and the ball falls on one of the numbers. The simplest bet is on whether the ball will fall on a red or black number, which has odds just over 47%. If you put $5 on red, and the ball lands on black or green, you lose your entire $5. The win-win game In contrast, for patient investors, the share market tends to be a win-win game. History has shown that share markets have risen through time. $100 invested in the US at the beginning of this century – just before the Dotcom bust – would now be worth around $580, despite the global financial crisis and the Covid pandemic. Data from J.P. Morgan Asset Management underscores the power of a long-term mindset. The worst drop in the US S&P500 stock market index over any year since 1950 is -37%. Yet for those who stayed invested, the lowest annualised return over any 20-year rolling period since then was still +6% a year. All about the long-term Investors should avoid treating the share market like a casino by trying to predict what will happen in the next week, month or even year. Shifting away from long-term investing into short-term speculation pushes investors closer to gambling. Even if an investor could accurately predict an event, they would still need to anticipate how other investors might react. Sometimes bad news is already priced in, causing markets to rise rather than fall. Then comes the challenge of timing both entries and exits to maximise returns. That is four decisions to get consistently right to generate healthy returns – even before considering random or unforeseeable shocks like Covid – an almost impossible feat. Click to trade, easy to gamble As it has become easier to trade shares in companies, more people are approaching investing with a short-term mindset, blurring the lines between stock market investing and gambling. In the 1950s, the average holding period for US shares was around eight years. By the 1980s, that fell to two to three years. Today, the average holding period for retail investors is just six months or even less. It can be hard to sit on your hands and do nothing during volatile times, even though that is exactly the right approach to take, according to history. But please, don't just take my word for it. Listen to Warren Buffett, recently retired, and arguably the greatest investor of all time. 'If you own your stocks as an investment – just like you'd own an apartment, house or a farm – look at them as a business,' he says. 'If you're going to try to buy and sell them based on news or something your neighbour tells you, you're not going to do well. Find a good bunch of businesses and hold them.' Long-term investing is just the opposite of gambling. May the odds be always in your favour.

Woman added to husband's business loan without her consent
Woman added to husband's business loan without her consent

Otago Daily Times

time4 hours ago

  • Otago Daily Times

Woman added to husband's business loan without her consent

By Susan Edmunds of RNZ A woman who discovered she had been added as a guarantor on her husband's business loan without her knowledge or consent complained to Financial Services Complaints Ltd (FSCL) when the business defaulted and she was called on to repay it. It was one of 1469 complaints received by the scheme in the year to 30 June. That is up from 1426 the previous year but almost double the number of five years earlier. In the case of the business loan, the lender offered to extinguish the woman's guarantee and release their security for her half share of the family home. FSCL chief executive Susan Taylor said it highlighted the importance of giving clear explanations and proper disclosure to everyone involved in a loan, including guarantors of business debt. "Especially when small business are borrowing under stress." FSCL was one of the external dispute resolution providers that helped with complaints that cannot be resolved directly between the customer and financial service provider. Taylor said complaints about lenders were the largest share, at 38 percent. Of the 366 cases that were formally investigated, complaints about financial advisers - including mortgage and insurance brokers, as well as wealth advisers - made up the largest proportion at 23 percent, followed by complaints about lenders at 20 percent, and insurers at 17 percent. Taylor said there had been a rise in complaints from small businesses, particularly about loans and insurance products. She said the increase in complaints over the years was partly because people were more aware of their opportunity and right to complain. "But I think it's also a reflection of the wider economic environment, we know that many New Zealanders and small businesses are struggling financially and when people are living with financial stress, they are more likely, I think, to complain. "Also, I think there's still a little bit of a hangover from Covid times in terms of the debt burdens some people are dealing with, particularly small businesses. And I also think there is a lot less tolerance now for when something goes wrong. Some years ago, people might have been prepared to chalk that up to a bad experience, but now they're more likely to want to complain and to have their complaint heard." She said sometimes complaints would alert FSCL to a possible systemic problem that needed to be taken further and referred to a regulator. Taylor said while financial providers' processes had improved, there was still room for more. Some people had to do a Google search or talk to a lawyer or friend before they knew they could take a complaint to FSCL, she said. Providers were meant to refer people to their third-party dispute provider when relevant. Taylor said complaining was difficult for some people. "Often the people have got lots of other things that they're struggling with in life. They're juggling so many balls that making a complaint is just one thing too many and that's difficult… which is where third-party support like financial mentors plays such a vital role."

Financial complaint numbers at historically high levels
Financial complaint numbers at historically high levels

NZ Herald

time4 hours ago

  • NZ Herald

Financial complaint numbers at historically high levels

The Financial Services Complaints Limited received 1469 complaints in the year to June 30. Photo / 123RF Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech. The Financial Services Complaints Limited received 1469 complaints in the year to June 30. Photo / 123RF Financial complaint numbers remain at historically high numbers and show no sign of easing, the Financial Ombudsman says. New annual figures show the complaints service received 1469 complaints in the year to June 30, up from 1426 the previous year. 'We're not yet seeing signs of complaints reducing since increasing rapidly two years ago in the wake of Covid-19,' said Financial Ombudsman Susan Taylor. 'What's changed is the spread. Complaints are now more evenly distributed across a broader range of financial services, rather than being concentrated in just a few areas like non-bank lenders.' Lenders accounted for the largest share of complaints at 38%, though many were resolved before escalating to a dispute needing formal investigation.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store