Beehive Bulletin
For Week Ending Friday 11 October 2002
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Also Available On-Line www.labour.org.nz
Forum explores growth options
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Ten cabinet ministers, led by Prime Minister Helen Clark, attended the Business Leaders-Government Forum at Parliament
on Friday. The key theme was how to raise New Zealand's economic growth rate through innovation and improved
productivity. It built on previous dialogue between the government and business. The 65 participants also included
senior officials, and representatives of a cross-section of New Zealand's largest businesses, community and workforce
representatives. The forum was hosted by the Growth and Innovation Advisory Board (GIAB) is hosting. The forum is the
start of a range of activities that the Growth and Innovation Advisory Board, which was established this year to advise
the Prime Minister on the evolution and implementation of the government's Growth and Innovation Framework.
Better transport in logging areas
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Transport Minister Paul Swain has directed the board of Transfund New Zealand to provide Northland and East Cape with
100 per cent funding for land transport projects that assist in regional development. This is aimed at helping Northland
and East Cape develop better transport links to cope with the 'wall of wood' due to be harvested. The minister's
direction to Transfund applies to $30 million earmarked for transport-related regional development projects that was
announced in February's Moving Forward package. Paul Swain said the direction requires Transfund to provide 100 per cent
funding for regional development roads and alternatives to roading to the six councils in the East Cape and Northland
regions. Transfund usually funds about half of a project's cost. The ministers said the spin-offs would be increased
investment from forestry and transport companies in these regions and more jobs.
Govt agenda progresses in Parliament
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A number of important government measures became law as Parliament sat under urgency this week. The Electronic
Transactions Bill, which puts electronic transactions on the same legal footing as paper-based transactions, was passed
on Thursday. The Minister for Information Technology, Paul Swain, said the Act would help reduce business compliance
costs by allowing the use of electronic transactions and the electronic storage of information instead of paper-based
processes. Parliament also passed new anti-terrorist legislation this week. Justice Minister Phil Goff said the laws
would allow New Zealand to take every step it could against international terrorism, in line with United Nations
conventions and Security Council resolutions. The rights of victims will be enshrined in law in legislation due to be
passed shortly, Justice Minister Phil Goff said today. Another measure to be enacted was the Victims' Rights Bill, which
ensure that the rights and needs of victims are recognized by the criminal justice system.
Govt moves to streamline GST treatment
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Finance Minister Michael Cullen this week issued proposals for improving the GST treatment of financial services. Banks,
credit unions, life insurers and other financial institutions would be treated more like other enterprises and allowed
to recover GST on purchases related to the supply of their services to businesses, under the proposals. Michael Cullen
said the simplicity of New Zealand's GST regime derives from its comprehensive coverage. However, when GST was
introduced, it was decided that areas such as financial transactions could not be accommodated within normal GST rules,
so they were made exempt. The minister said the exemption can penalise the finance sector because it can prevent them
from claiming GST refunds. After consultations with the industry the government is now proposing to bring within the GST
system financial services that are supplied to businesses.
Leaky buildings mediation on way
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An expert group to establish a mediation service to help people seeking remedies for leaky buildings began work this
week. Internal Affairs Minister George Hawkins announced last week that a mediation service would be established to
examine the issue. The expert group will support Internal Affairs in developing a framework and terms of reference for
the service. The systems, assessors, mediators and publicity necessary for the service to get underway will be put in
place later this month. The group is being chaired by former State Services Commissioner Don Hunn. It also includes
Tomas Kennedy-Grant, mediator, arbitrator and legal adviser; Ian Bond, engineer; Brian Roche of Price Waterhouse
Coopers; and David Kernohan, an architect.