The Government today issued more information about its Better Public Services programme, which is focused on delivering better frontline services in areas that matter most to New Zealanders.

The information includes officials’ papers canvassing the need to reduce decision points and clutter in the public service; better sourcing of goods and services; and opportunities to rationalise Crown entities, Finance Minister Bill English and State Services Minister Tony Ryall say.

These topics are being considered by the Better Public Services Advisory Group appointed by the Government earlier this year. This group is releasing further issues papers to generate discussion, starting with best-sourcing and the public sector model.

“As part of its wider programme to build faster economic growth, the Government has made it clear that the public sector – which represents about a quarter of the real economy – needs to play its part,” Mr English says.

“This is not just about considering the structure of individual Crown entities. The Government’s top priority is providing better public services using less money and more innovation. I’m pleased that public servants across New Zealand are working hard to deliver that.”

Mr Ryall says the Government’s public sector programme has three objectives.

“First, we want to set clear priorities, so the public sector is focused on the things that matter most to New Zealanders, including providing high quality, cost-effective and customer-focused frontline services.

“Second, we want high quality services that are modern, responsive, business like, and provide good value for money.

“And finally, we want to reduce waste, ensuring that government administration is as efficient, streamlined and well organised as it can be.”

The first two issues papers and other information on the Government’s public sector programme are available at:

http://www.dpmc.govt.nz/better_public_services

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Delivered by Hon Tony Ryall, Minister for State Owned Enterprises, on behalf of Hon Bill English

Good morning.

Recent events on world financial markets make this a particularly interesting time to be addressing you.

I believe we should all get used to the regular outbursts of uncertainty we have seen in recent weeks and months – this is how the world will be, on and off, over the next decade.

Today I’ll cover the world as we see it, how New Zealand is placed in this environment, the challenges we still face and how the Government’s economic plan is addressing them.

I’ll also cover how the Government’s mixed ownership model fits into the Government’s plan to build a more competitive, faster-growing, export-based economy.

The global outlook

The last few weeks have seen a stream of bad economic news from Europe and the United States, as well as Japan and the UK, where they’re suffering from high debt and low growth.

This is a combination of governments having spent more than they earned, particularly over the last decade, and in some cases the bailouts of the financial sector that occurred in 2008.

The only way to deal with excessive debt is to pay it off or write it off. But in these countries debt is growing and shifting around. So the problems will get worse before they get better.

Because it's government debt, finding solutions to stop the growth of this debt is in the hands of the politicians and there are no easy political solutions.

It's not easy to cut pensions, benefits and public services, or to lift taxes.

And it’s not easy to inflate debt away when consumers are so sensitive to price increases. We shouldn’t be surprised that the politicians of Europe and the US are struggling with these giant problems.

We had our own milder version of excessive debt in New Zealand through the 1980s and 1990s. Solving that problem was a long painful process requiring a restructuring of most of the economy.

In fact, it took until 2006 to get net debt back to where it was in 1972 as a proportion of GDP.

So markets are grappling with this new situation and sending us some interesting signals.

World sharemarkets are signalling lower growth, and have mostly fallen 15 to 25 per cent since their highs earlier in the year. But considering how much they had risen, this is not especially unusual.

What is unusual is the plummet in long-term interest rates for those countries still deemed credit worthy. Long-term yields on government bonds in the United States, the UK and most Eurozone countries are below two and a half per cent.

At the same time as interest rates have been dropping sharply, the default premiums built into sovereign interest rates have been widening, to the point where sovereign default risk appears to account for up to half the yield of many stronger nations - and around three-quarters for countries such as Italy and Spain.

So the risk-free rate has dropped significantly – investors are primarily interested in security, to the point where they will accept zero or even negative real returns in exchange for certainty of being repaid.

That puts every country under the microscope. Are their debt levels acceptable? Are there plans to contain debt and get it down? Do the government's policies help or hinder economic growth?

New Zealand's position

So where does New Zealand fit into this picture in 2011?

If I had to sum it up, it would be fair to say that the New Zealand ship is in better shape, and certainly more seaworthy, than it was even three years ago. But at the same time, the global waters have become rougher.

Compared to other countries, New Zealand has come through the recession in reasonably good shape. We did not have a banking collapse, household incomes have continued to grow moderately and unemployment peaked at 7 per cent and is coming down.

Looking ahead we have many opportunities, but also some risks.

Many of our opportunities revolve around our increasing trade with the fast-growing Asia-Pacific region, near record-high commodity prices and our strong fiscal position.

The Government is focused in the longer term on lifting incomes and creating jobs in New Zealand by selling more of our goods and services to our Asia-Pacific neighbours.

We are strongly motivated by this opportunity. It is limited only by our ability to organise our domestic resources to support a stronger export performance.

At the same time, we face two main risks - demand risk and financial market risk.

Both internal and external demand will fluctuate. New Zealand consumers have got the message on debt. The latest credit aggregates show bank lending is barely growing and consumption is flat.

In 2007, New Zealanders spent $1.11 for early dollar they earned. This year will see the first positive household savings rate in 11 years, helped by the lowest interest rates in 45 years.

If consumers stick to a new pattern of saving, the domestic economy will take longer to pick up, but when it does it will have stronger foundations.

And we are affected by the growth prospects of our trading partners

Global uncertainty doesn’t help. If the large Western economies grow more slowly than expected, then demand and prices for our exports could fall.

But we should remember that export prices are the highest they’ve been for 50 years. And this risk may be offset by a declining exchange rate, since there is historically a close relationship between commodity prices and the NZ-US exchange rate.

The second risk for New Zealand is financial market risk. We remain a highly indebted economy. Both the Government and banks need to go to the global financial market regularly to refinance our existing stock of debt, and in the Government’s case, finance still growing debt.

The Government has moved to reduce our vulnerability to these volatile markets, but the job has only just begun.

In late 2008, we were handed a set of forecasts showing deficits in perpetuity, resulting in net Crown debt rising to over 60 per cent of GDP within the projection period and still climbing.

As a result of decisions across our three Budgets, we now expect to be one of only a handful of developed countries back into surplus by 2014/15. Net core Crown debt is expected to peak at below 30 percent of GDP. This is well below western world averages.

Earthquake costs

We’ve also had to absorb costs of the Canterbury earthquakes along the way.

Yesterday we made public estimates from EQC that the cost of its claims will be higher than initially forecast. This simply reflects better estimates of the cost of damage as EQC assesses and processes more claims.

It new estimates made headlines, but they should be put in perspective.

The additional costs to the National Disaster Fund will be around $4 billion. But the Government has a $220 billion balance sheet, and about $70 billion of income a year.

Economic vulnerabilities

As I said before, in today’s economic and fiscal environment, we should get used to ups and downs. Importantly, we are still on track to return to budget surplus in 2014/15 and to keep net Crown debt below 30 per cent of GDP.

The best protection against world shocks is to rebuild capacity within our finances to absorb them. Both government and households have much more to do in this respect.

Our biggest vulnerability remains that we still have high foreign debt, a legacy of excessive household and government consumption and a debt-fuelled property boom.

Indeed, this is the main reason New Zealand remains on negative credit outlook with two of the three major credit rating agencies.

We’ve stressed for some time that problems built up over a long period will take some time to fix. We will remain vulnerable until we reduce this long-term reliance on foreign debt.

As we build a more competitive, export-focused economy, we will need to use our capital as efficiently as possible. In particular, New Zealand needs to reduce its longstanding reliance on foreign debt.

It’s fairly clear what we need to do:

• The Government needs to return to surplus and stabilise its debt at a reasonable level.
• Households need to continue lifting savings, repaying debt and diversifying their investments away from housing.
• The Government also needs to ensure that the $220 billion of assets it holds on behalf of taxpayers are used as efficiently as possible, reducing the need to borrow.

The Government has taken several steps to help achieve this - including the largest tax reform in 25 years, investing heavily in infrastructure, setting a faster path back to budget surplus and making the public sector more efficient.

Extending the mixed ownership model

Another contribution the Government can make to build a more competitive economy is extending the mixed ownership model to four energy SOEs and reducing its shareholding in Air New Zealand, while keeping a majority stake.

I want to talk a little more about that today – and explain why it will be positive for both taxpayers and New Zealand investors if a National-led Government is re-elected in November.

The mixed ownership model is a win-win. New Zealand savers get to invest in good Kiwi companies.

And the Government frees up $5 to $7 billion – about 3 per cent of its current assets – over three to five years to buy new assets like schools, hospitals and ultra-fast broadband, without having to borrow from overseas lenders and increase our debt.

The Government will retain at least 51 per cent control of these five SOEs on behalf of all New Zealanders – the same model used successfully for Air New Zealand for nearly 10 years. And Kiwi investors will be at the front of the queue for shares.

The Government manages $220 billion of assets owned by taxpayers – everything from hospitals, state houses, roads and schools to the NZ Super Fund, electricity companies and shares in Air New Zealand.

And these assets are growing rapidly. Over the next five years, we will increase taxpayers’ assets by about $35 billion - or 16 percent.

This figure is net of depreciation - in gross terms, the Government will acquire around $78 billion of extra assets in the next five years.

So any suggestion the Government is selling the family silver is rubbish.

This is a very large commitment to public investment. It’s more than the entire value of the NZX, and about as much as all of the managed funds owned by New Zealanders.

The $78 billion of new assets will be funded from a wide range of sources. Some, like roads, come from dedicated taxes, and some come from returns on commercial investments. But over a quarter - some $21 billion - will be funded from the Crown through extra borrowing.

We think both the Government and the New Zealand private sector will be better off by having local investment in these assets.

The mixed ownership model will improve the balance sheets of both taxpayers and investors, bring better commercial discipline to the companies concerned, and provide them with easier access to capital to grow.

In fact, the $5 billion to $7 billion mixed ownership programme is pretty modest. As I say, it’s about 3 per cent of all current assets owned by taxpayers, and about one-sixth of all the net new assets the Government will accumulate over the next five years.

New Zealanders at the front of the queue

We have promised that New Zealanders will be at the front of the queue for shares. We would rather pay dividends to New Zealanders than interest on rising debt to foreigners.

Overseas investors will play a role in helping to get a good price for taxpayers. They will also help deliver a robust and liquid market for New Zealanders.

But it's important to remember that these companies will remain firmly - and overwhelmingly - in New Zealand control.

In total, we expect that across the programme New Zealanders will own at least 85 to 90 per cent of these companies - including the Government's cornerstone shareholding.

There are solid reasons for expecting such strong domestic support for these shares. For example:

• New Zealand retail investors currently have $105 billion sitting on the sidelines in term deposits, $108 billion in financial assets and between $100 billion and $150 billion of investment property. This adds up to total investments of over $300 billion, excluding their own homes.
• The 34 registered KiwiSaver providers have about $9 billion invested and will double in size over the next four years.
• New Zealand institutions (excluding KiwiSaver funds) have $59 billion under management.
• Government CFIs (including the NZ Super Fund, ACC and GSF) have almost $40 billion under management.
• Iwi are estimated to have over $10 billion of assets.

So the mixed ownership programme is small compared with the size of the local capital pool.

New Zealanders are also telling us they are hungry for other investment options, particularly with the shine having come off the investment property and finance company sectors.

This has been apparent in the strong domestic demand for corporate bonds. More than $11 billion of non-government debt has been issued over the past two years alone. Many INFINZ members will have participated.

What’s more, lower wholesale interest rates and a reduced demand for highly-geared property reinforce this appetite.

Final arrangements for the Government’s mixed ownership programme will be made next year – after we have taken the policy to the election in November and after scoping studies have been completed. But there are some aspects I can confirm today:

As I’ve mentioned, the Government has already made two important commitments: That it will retain a shareholding of at least 51 per cent in each company, and that New Zealanders will be at the front of the queue for shares.

It’s our clear intention to prioritise New Zealand investors so they will have the first opportunity to buy shares.

We will invite participation from all New Zealand investors. They will include retail investors, Kiwisaver funds, other managed funds, Crown financial institutions such as ACC and the NZ Super Fund, Iwi, community trusts and all others.

We expect most will be long-term shareholders.

In addition, we will ensure the widest possible spread of shareholders. To achieve that, it’s the Government’s intention to impose a maximum shareholding cap on the mixed ownership companies. That cap is most likely to be 10 per cent.

For the reasons I’ve outlined, the Government expects a strong and ongoing demand for shares from New Zealand investors.

Let me repeat, we expect New Zealanders will own at least 85 to 90 per cent of the shares – and quite possibly more, with most being long-term holders.

This is an opportunity for them to diversify their investments away from housing and finance companies and help lift their savings rates.

At the same time, it will free up money for the Government to invest in important assets like hospitals, schools and broadband – without borrowing from foreign lenders.

That has got to be good for the economy.

Conclusion

This is just one policy we will take to New Zealanders at the election to help build a more competitive, faster-growing economy supported by higher savings and less debt.

We’re confident we can build on the good progress we’ve made over the past three years. We’ve come through a number of significant challenges in pretty good shape.

Over the next three years, New Zealand has the opportunity to grow solidly, create more jobs and increase wages. The Government wants to take advantage of that opportunity.

Thank you.

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A large and growing pool of New Zealand investment funds will ensure strong local demand for the Government's $5 billion to $7 billion mixed ownership programme, Finance Minister Bill English says.

As a result, ministers expect New Zealanders to own at least 85 to 90 per cent of the companies in the mixed ownership programme, including the Government’s majority shareholding, he said in a speech prepared for delivery at the Institute of Financial Professionals of New Zealand conference in Wellington.

At the same time, the Government will acquire around $78 billion of other assets over the next five years, on top of the $220 billion of assets it currently owns on behalf of taxpayers.

“The mixed ownership model is a win-win. New Zealand savers get to invest in good Kiwi companies. And the Government frees up $5 to $7 billion over three to five years to buy new assets like schools, hospitals and ultra-fast broadband, without having to borrow from overseas lenders and increase our debt.

“We would rather pay dividends to New Zealanders than interest on rising debt to foreigners.”

The Government will retain at least 51 per cent control of the five SOEs on behalf of all New Zealanders - the same model used successfully for Air New Zealand for nearly 10 years.

“We have also promised that New Zealanders will be at the front of the queue for shares.

“In total, we expect New Zealanders will own at least 85 to 90 per cent of these companies – including the Government’s cornerstone shareholding.”
There are strong reasons for expecting a high New Zealand shareholding, Mr English says:

• New Zealand investors currently have more than $300 billion of investments excluding their own homes, ranging from money sitting in term deposits to financial assets and investment housing.
• The 34 registered KiwiSaver providers have about $9 billion invested and will double in size over the next four years.
• New Zealand institutions (excluding KiwiSaver) have about $59 billion under management.
• Crown financial institutions (including the NZ Super Fund, ACC and GSF) have almost $40 billion under management.
• Iwi are estimated to have over $10 billion of assets.

“So the mixed ownership model, spread over three to five years, is small compared with the size of the local capital pool,” Mr English says.

“New Zealanders are also telling us that they are hungry for other investment options, particularly with the shine having come off the investment property and finance company sectors.”

Final arrangements for the mixed ownership programme will be made next year, after the Government takes the policy to voters in the election.

“But it’s the Government’s intention to impose a maximum shareholding cap on the mixed ownership companies. That cap is most likely to be 10 per cent.”

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The Earthquake Commission (EQC) has increased its estimated Canterbury earthquakes liability by about $4 billion to $7.1 billion, Finance Minister Bill English says.

The new estimate follows an actuarial valuation of EQC's liability, based on available field assessments of damage claims. It includes an increase of $2.17 billion from the 22 February earthquake and $1.42 billion from the 13 June earthquakes and other aftershocks, which were not previously included.

"The Government is committed to rebuilding Christchurch and supporting the people of Canterbury," Mr English says. "Today's announcement will not affect homeowners' claims, which EQC will continue to pay in full. And it will not delay rebuilding in Christchurch.

"EQC can meet most of these costs through the Natural Disaster Fund, which held about $6 billion before the first earthquake. The Government, through its guarantee under the Earthquake Commission Act, will meet any shortfall. EQC also has reinsurance in place to help meet the cost of any future events.

"Despite the increased liability, which will have a one-off impact on the Government's operating balance for the 2010/11 year, the Government remains on track to meet Budget forecasts of a return to surplus in 2014/15 and to keep net debt below 30 per cent of GDP," Mr English says.

EQC's initial liability estimates were based on international models for calculating damage from single events. While these hold for the 4 September earthquake, they were not designed to calculate the effects of multiple events.

"Quite clearly the scale of residential damage from the 22 February earthquake has been worse than initially thought, with more claims, more damage on a house-by-house basis and greater land damage than expected.

"For example, it was initially thought 12,000 houses would have more than $100,000 in damage. As EQC has completed more detailed assessments, this number is now estimated to be about 30,000 houses.

"Damage to land was initially estimated at between $300 million and $600 million. This has increased to $1.8 billion."

The increased estimate breaks down as follows:

Budget 2011 – estimated net claims cost	$3.05 b
Inclusion of 13 June earthquakes and other aftershocks	+$1.42 b
22 February earthquake increase	+$2.17 b
Post-earthquakes re-evaluation of ongoing costs	+$0.35 b
4 September earthquake increase	+$0.02 b
Other	+$0.06 b
Mean estimate of net EQC claims cost	$7.07 b

The new estimated liability will be reflected in the 2010/11 Crown accounts, which will be published in October. Current indications suggest the higher EQC liability will be partially offset by higher than forecast tax revenue and lower than forecast costs in other areas.

Combined, these factors are likely to push the operating deficit before gains and losses up to about $18 billion - $1.3 billion higher than the Budget forecast. However these figures have not yet been finalised or audited.

"We need to remember these are still estimates and EQC and the Treasury will continue to periodically revise the expected liability as more claims are completed and more information becomes available.

"At the time of the Budget, Treasury put the total earthquake damage bill – to all property owners and insurers - at $15 billion, or about 8 per cent of GDP, making it the worst natural disaster in recent memory to hit a developed nation – relative to the size of its economy.

"The Government has asked Treasury to update this estimate based on new information available since the Budget," Mr English says.

Questions & Answers

Q. How much has EQC's liability increased?
EQC’s ultimate net cost of claims (the amount it expects to pay over time) has increased to $7.07 billion from the estimate in Budget 2011 of $3.05 billion. This increase can be broken down into:

Budget 2011 – estimated net claims cost	$3.05 b
Inclusion of 13 June earthquakes and other aftershocks	+$1.42 b
22 February increase	+$2.17 b
Post-earthquakes re-evaluation of ongoing EQC costs	+$0.35 b
4 September increase	+$0.02 b
Other	+$0.06 b
Mean estimate of net EQC claims cost	$7.07 b

 

Q. Will the increased estimate affect EQC's ability to pay its claims?
No. This will not affect homeowners' claims in any way and EQC will continue to pay out claims in full. As at 24 August, EQC had paid out $1.41billion for all claims to date, which is about $4 million per day.

Q. Will this new estimate affect the rebuild?
No. The revised estimate will not delay rebuilding in Christchurch and will not affect homeowners' claims, which EQC will continue to pay in full.

Q. Why was EQC's previous estimate so much lower?
The estimates for the 4 September and 22 February quakes were based on international models for calculating damage from single events and were not designed to calculate the effects of multiple events. As data has become available from actual field assessments, it has become clear residential damage from the 22 February earthquake is worse than initially thought, with more claims, more damage on a house-by-house basis and greater land damage than expected. In addition, the previous estimate did not include the 13 June earthquakes and other aftershocks.

Q. What are the main factors behind the increase?
There are two main reasons for the increase. The first is a $2.17 billion increase in the estimated residential damage of the 22 February earthquake from $3.98 billion to $6.15 billion. Because this increase is above EQC's level of reinsurance for the earthquake, which covers the cost of claims between $1.5 billion and $4 billion, EQC bears all of the increase on its own books.

The second reason is the inclusion of the 13 June 2011 earthquakes and other aftershocks. They were not included in the Budget estimate, published in May. Together they add another $1.42 billion to EQC's estimated liability.

Q. What are the implications for the Crown's finances?
EQC's increased liability will have a one-off impact on the Government's operating balance for the 2010/11 year. Despite the higher EQC liability, the Government still expects to return to surplus in 2014/15 and to keep net debt below 30 per cent of GDP. This is because the higher liability will be fully accounted in the 2010/11 accounts and will not affect operating balances in the years beyond.

The full 2010/11 Crown accounts will be published in October. Current indications suggest the higher EQC liability will be partially offset by higher than forecast tax revenue and lower than forecast costs in other areas. Combined, these factors are likely to push the operating deficit before gains and losses up to about $18 billion - $1.3 billion higher than the Budget forecast. However these figures have not yet been finalised or audited.

Q. Can you rule out the figure changing again?
No. These are still estimates based on available assessments and EQC and the Treasury will continue to periodically re-estimate the expected liability as more claims are completed and more information becomes available. EQC won't know the final cost of all the Canterbury earthquakes until all claims have been assessed and settled. EQC is aiming to complete its assessments of buildings and settle all contents claims by the end of December 2011.

Q. Who pays if the Natural Disaster Fund (NDF) is used up?
The Natural Disaster Fund managed by EQC held about $6 billion before the first earthquake on 4 September 2010. Based on the latest estimate the shortfall is $829 million. However due to the expected timing of claims assessments and payments, the eventual shortfall is not expected to exceed $500 million. Under Section 16 of the Earthquake Commission Act 1993, the Government would honour its guarantee if there is a shortfall, but the final form of this payment, if it is required, has not yet been established. In the meantime, this figure will be reflected in the Crown accounts as a small increase in forecast net Crown debt.

Q. Who pays if there is another event?
EQC has renewed its reinsurance, which means EQC has reinsurance for another two events the size of the 4 September earthquake. If the NDF could not cover EQC’s share of costs from a future event, the Government would honour its guarantee under the Earthquake Commission Act.

Q. What does this mean for the overall earthquake damage bill?
At the time of the Budget, Treasury estimated the total cost of damage – to all property owners and insurers – for the 4 September and 22 February earthquakes at about $15 billion, or about 8 per cent of GDP, including $9 billion for residential property damage. The Government has asked Treasury to update this estimate based on new information available since the Budget.

Q. What does this mean for the Government's share of the earthquake damage bill?
In Budget 2011, a six year $5.5 billion Canterbury Earthquake Recovery Fund (CERF) was established to provide certainty for rebuilding Canterbury.
A further $3.3 billion cost was forecast to meet the Government's share of costs, including EQC and ACC costs (a total of $8.8 billion). With rounding, the increased EQC liability takes the Government's total estimated share of earthquake costs to $12.9 billion.

Q. Will the Canterbury Earthquake Recovery Fund be enough to fund the recovery?
The current Canterbury Earthquake Recovery Fund ($5.5 billion) excludes cost associated with meeting EQC's insurance liabilities. The Government is committed to funding its share of rebuilding Canterbury and the fund is still expected to cover those costs.

Q. What audits/checks have been or will be done on this actuarial estimate?
The actuarial estimate and report has been considered by:
• EQC’s internal risk committee
• External auditors (Deloitte) on behalf of the Office of the Auditor General.

Q. What is the Government doing to allay any concerns reinsurers might have about writing cover in New Zealand?
Canterbury Earthquake Recovery Minister Gerry Brownlee will lead a government delegation to London and to the Rendez-Vous de Septembre in Monte-Carlo, Monaco on 10-15 September. Mr Brownlee will give a presentation on the Canterbury earthquakes and meet several major reinsurers including Swiss Re, Gen Re and Munich Re.

Q. What does the new estimate mean for insurance in Christchurch?
Several major insurers are not currently writing new insurance cover in Christchurch as continued seismic uncertainty makes it difficult for them to accurately price risk. This response follows the pattern seen in other countries following a significant natural disaster. However, as the changes to EQC estimates do not fundamentally affect the risk profile of Christchurch, they are unlikely to significantly affect future insurance.

Q. What is the size of this disaster compared to other disasters?
This is New Zealand’s largest natural disaster. EQC has received more than 388,000 claims for the earthquakes since 4 September. The previous biggest event for EQC was the Gisborne earthquake in 2007 with 6224 claims.

The Canterbury earthquakes are likely to rank as the fourth most costly global event for insurers since 1970 after the Northridge earthquake in California in 1994, the 9.0 earthquake and tsunami disaster in Japan in March this year, and the Kobe earthquake in Japan in 1995.

At the time of Budget 2011, Treasury estimated the combined cost of 4 September and 22 February earthquakes to be equivalent to about 8 per cent of New Zealand’s GDP. Damage from the 1995 Kobe earthquake in Japan was just over 2 per cent of Japan’s GDP. Hurricane Katrina in 2005 cost about 1 per cent of US GDP, and March’s Japanese earthquake and tsunami disaster was an estimated 3-5 per cent of Japan’s GDP.
Q. What progress has been made in the earthquake recovery process? Progress so far includes:

• EQC has paid out $1.41 billion on claims to date and completed about 52,000 full assessments since 22 February. It is on track to complete all its full assessments by December 2011. EQC is working towards completing all contents claims by the same deadline.
• A new government department – the Canterbury Earthquake Recovery Authority - has been set up to lead and co-ordinate the recovery.
• A Royal Commission of Inquiry has been established to find answers to why so many people lost their lives on 22 February and is due to provide an interim report in the next few months.
• More than 23,000 emergency repairs have been completed by contractors employed by Fletcher Construction to make homes damaged by the earthquakes safe, sanitary and weather tight.
• More than 10,000 heat pumps or solid fuel burners have been installed or repaired in homes whose primary heating source were damaged by the earthquakes.
• A total of 363 buildings have been demolished in the CBD since 22 February, with 600 demolition contractors working in the CBD each day to bring down the rest of the 1000 estimated buildings that need to be partially or fully demolished.
• A draft recovery plan for the Christchurch central business district has been developed and released for public consultation, and will be submitted to the Government in December 2011 for consideration and approval.

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August

The bitterly cold weather of last week has been challenging. It disrupted our communities, closing schools and roads, and causing flights to be cancelled.

It hit our rural communities hard at what is the busiest time of the year for our farmers who keep the economy ticking over.

Dairy farmers had to dump milk because the tankers could not get through. And dairy farmers, along with sheep farmers who are trying to keep ewes in good condition for lambing, have the added worry of possible pasture damage and stock condition.

The good news is that as temperatures warm up it feels like spring is just around the corner.

Southern farmers are well aware that the rural sector is leading the way in the nation's growth. Last week, the National Bank's quarterly regional trends survey showed that Southland had a 2.1 per cent rise in economic activity in the June quarter.

According to the survey this made Southland the fastest - growing region in the country for the first time since 2003, when the province had enjoyed New Zealand's fastest growth for three years from 2000. And the region's unemployment figures have fallen from 5.1 per cent last December to 3.5 per cent, which is the lowest in the country.

The Southland Stags have continued to bring pride and passion back to Southland rugby with their serious challenge and win against Canterbury to bring the Ranfurly Shield home. It's fantastic to see the mood of the electorate change when we win the shield.

I pay special tribute to the Southland Stags team who work hard both on and off the paddock.

Post-Budget Survey:

I would like to thank all who took the time to complete and return my recent survey.  I've had many returns, and they are still arriving in the mailbox, giving me a good snapshot of issues in our area.

If you requested to receive Key Notes and Plain English I'd like to welcome you if this is your first edition. Key Notes is the Prime Minister's weekly email newsletter and Plain English is quarterly. I also have Focus on Finance and if you would like to subscribe to it please do so at http://subscriptions.beehive.govt.nz/

In the Electorate:

It's always great to get out and about in the Electorate to catch up with constituents.

After many challenges with the development, the long awaited completion and opening of Hilton Queenstown was celebrated recently. Having the Prime Minister there to formally open the hotel, then to declare the Queenstown Winter Festival open was a boost to the community as they awaited the first snowfall. I visited the temporary ice skating rink at the Queenstown Winter Festival which was an opportunity to meet with Simon Green the Winter Festival director.

The PM hosted a breakfast at the Hilton Queenstown, before we headed to morning tea at Nokomai Station. It was good to get the Prime Minister into real farming country. You get to hear the grassroots issues by talking to the workers and owners of the stations. It was great to meet local school students who came out to greet the Prime Minister at Mossburn and Winton. The branches did a great job of hosting these events.

At Telford Rural Polytechnic a function was held to unveil a plaque to mark its merger with Lincoln University. Lincoln University is certainly making its mark in the South with a visit from Vice-Chancellor Roger Field who joined the Prime Minister and me at Nokomai Station last month, along with a group of Southland students.

Celebrating 75 years

It was great to catch up with people at the National Party Annual Conference in Wellington and celebrate 75 years since the party was founded.

The Prime Minister announced the first of National's changes to reduce long-term benefit dependency. In our first step we are focusing on young people.

We're changing the way we support 16- and 17-year-olds who are not in education, training or work. Schools will be required to tell us when 16- and 17-year-olds leave during the year. That means we'll actually know who the at-risk young people in our communities are.

We'll then fund third-party organisations such as NGOs and private providers to support and mentor these kids. We're also boosting the number of places in training programmes such as the Youth Guarantee and Trades Academies.

We're taking a more hands-on approach to young people on benefits, with the exception of those on the Invalid's Benefit. We're going to provide intensive case-management and mentoring for these vulnerable young people. We're going to help them manage their money within their budget. And we're going to make sure they attend budgeting or parenting programmes - and get into education, training or work.

Reducing our vulnerability to global uncertainty

National has taken a number of steps over the past three years to make New Zealand less vulnerable in these times of global uncertainty.

Our responsible decisions to get debt under control and return to surplus faster include reprioritising $4 billion of spending over four years in our first two Budgets. Further to this we reprioritised $5.2 billion of spending in Budget 2011 and we are requiring the state sector to find almost $1 billion in savings over three years to go towards improving frontline public services and reducing debt.

In our first Budget, we suspended payments to the NZ Super Fund, as it made no sense for taxpayers to borrow to invest on risky world share markets. And we're making changes to KiwiSaver, Working for Families, and student loans so they are better targeted, sustainable into the future, and reduce the need for extra borrowing.

At a time when financial markets have no appetite for countries wanting to borrow more, New Zealand has an opportunity over the next few years to build on solid foundations for faster growth and more jobs.

More information: http://www.beehive.govt.nz/release/video-briefing-economy

Government launches Green Paper on Vulnerable Children

Every year an average of 10 New Zealand children die at the hands of those closest to them. Last year there were 21,000 substantiated cases of child abuse and neglect. This has got to stop.

The Government has released the first Green Paper in 14 years, focusing on these vulnerable children. A Green Paper is about testing ideas with the public before making decisions. The document raises some complex issues, including mandatory reporting of child abuse, information sharing between agencies, prioritising services for vulnerable children and their parents, tracking children from birth, and when the government should intervene with families.

Public submissions are open until 28 February 2012 and we would welcome your input. Once submissions have been received, a White Paper will be released outlining a Children's Action Plan. Too many children are being hurt, abused and neglected but we can change this, and now is the time to act.

More info: http://www.national.org.nz/Article.aspx?ArticleId=35735

In the South people remain connected to extended family and we have good sensible role models and support which provides safety mechanisms that makes it a safer place to bring up children.

Tougher rules for non-bank finance firms

National has taken another step in lifting investor confidence in our financial institutions.

Legislation to further tighten the rules for non-bank deposit takers (NBDTs) passed its first reading recently.

The Non-Bank Deposit Takers Bill puts in place licensing requirements and strengthens the Reserve Bank's powers, including the power to remove directors.

From 2006, deposits of about $8.6 billion were put at risk by finance industry failures. The bill is part of a suite of measures designed to lift investor confidence in our finance sector and capital markets - we've established the Financial Markets Authority, put in place a new regime for financial advisers, required licensing of trustees and auditors and strengthened disclosure requirements.

More information http://www.national.org.nz/Article.aspx?ArticleID=36603

Offender levy collects nearly double its projection in first year

National's $50 offender levy has been more successful than projected. The levy has collected $3.7 million in its first year, nearly double its forecast of $2 million. The offender levy was introduced to fund more services for victims.

At time of sentencing all convicted offenders must pay the levy. This is collected after reparation and before fines, and is in addition to any sentence or court order.

The levy now funds 13 entitlements and services for victims of serious crime, including court attendance grants, counselling, travel, accommodation, and childcare assistance, homicide support, and funeral grants.

National has been able to introduce five additional services for victims of crimes because the levy is being collected more quickly than expected.

Later this year the Victims of Crime Reform Bill will be introduced to Parliament and proposals announced around alternative trial processes for child witnesses. These services and further reforms highlight the National-led Government's commitment to put victims at the centre of the criminal justice system.

More information: http://www.national.org.nz/Article.aspx?articleId=36583

Freedom Camping Bill passed into law

New laws to better manage freedom camping will take effect before the Rugby World Cup.  Freedom camping is an important part of our tourism industry and is a great Kiwi tradition.

Freedom campers have doubled over the past decade, and the Freedom Camping Bill passed this month targets irresponsible campers who spoil our most iconic areas with human waste and litter. 

The law gives councils the practical tools to control freedom camping, including introducing instant fines.   Councils have been asking for greater clarity for years, and this law allows councils to define where people can freedom camp, where they can camp subject to self-containment, and where they cannot.

This is a pragmatic response that will better protect public health, our iconic spots, and New Zealand's clean, green brand.

More information: http://www.national.org.nz/Article.aspx?articleId=36806

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National has launched a new page on Facebook.  The page is a place to keep up to date with National, and includes Press Releases and MP video blogs, as well as photos and other video content.  You can also follow me on Facebook:  www.facebook.com/honbillenglish

Regards,

Bill English
MP for Clutha-Southland

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Don't forget to leave your comments!

 

@NZJon Jon Pawley asked:

>>Tell me @HonBillEnglish, how does a low interest rate help savings? #nzpol (Actually, I wont hold me breathe for a response from Mr English)<<

@honbillenglish responds:

They don't. But they are low because NZers are borrowing less, consuming less and saving more, which economy needs. http://bit.ly/mQoPa1

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Two issues papers released today for public consultation continue the Government’s focus on ensuring fairness in the tax system, Finance Minister Bill English and Revenue Minister Peter Dunne say.

The issues papers, which were announced in Budget 2011, provide options for making the tax system fairer in two areas:

Livestock valuation - this paper presents options for fairer rules covering livestock valuation elections. Mr Dunne says the current rules appear to be too loose, allowing farmers to switch between valuation methods providing an unfair tax advantage.

Mixed use assets - this paper provides options to address unfairness in the tax treatment of assets such as holiday houses used for both private and income-earning purposes.

Mr Dunne says unfairness arises when some owners claim their house is available for rent during the significant periods of the year the house is empty.

“This provides them with a basis for claiming tax deductions for expenses relating to the period the property is empty. Claiming these deductions could be regarded as unfair, particularly if the owner holds the asset primarily for private enjoyment,” Mr Dunne says.

Officials are also working on a third issues paper focusing on the tax and social assistance treatment of salary traded off for other benefits. This will be released separately once policy analysis is complete.

“Tax dollars are needed for a wide range of government services such as health, education, justice, lowering the road toll, reducing family violence, immunisation programmes and conservation,” Mr Dunne says. “Taxes also pay for work in Christchurch on roads, hospitals, schools and emergency recovery.

Mr English says it’s important that everyone pays their fair share of tax.

“By tightening the rules around property investment, aligning the top personal and the trustee tax rates and by ensuring greater fairness in social assistance programmes, Budget 2010 had a strong focus on fairness and integrity of the tax system.

“Today’s announcement continues that focus,” Mr English says.

The closing date for submissions is 30 September 2011. The two issues papers and fact sheet are available on the Inland Revenue policy website at: http://taxpolicy.ird.govt.nz/publications/year/2011
 

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Good Morning.

It’s a pleasure to address you today as part of the John Key-led National Party team. You have sent to Parliament competent motivated ministers and a disciplined hard-working caucus. It’s a steady stable team making sensible decisions.

And don’t we need that in these uncertain times.

In the past week we've seen the world's largest economy downgraded, turmoil on international markets and social unrest spreading to the UK.

John Key's Government has provided for New Zealand what New Zealand knows it needs - responsible economic management, strong leadership and stable government.

New Zealanders know what needs to change in this economy and they trust John Key to change it.

As we approach this year's election voters face a stark choice.

They can choose a sensible pragmatic National Party which will take New Zealand forward, or the Labour Party who will take us backwards with more spending, more tax and more borrowing. Those policies choked our economy in good times and they are downright dangerous in bad times.

The global outlook

The last few weeks have seen a stream of bad economic news from Europe and the United States.

I say, get used to it – this is how the world will be, on and off, over the next decade. That is because the underlying problems driving this week’s events are getting worse not better.

Most of the developed world has very high levels of government debt. This is a combination of the huge bailouts of the financial sector that occurred in 2008, and governments spending more than they earned, particularly over the last decade.

Lenders are starting to get worried about whether they will get all their money back. They used to regard governments as a no-risk customer, but this week they have been jolted by the first ever credit downgrade for the US.

That puts every country under the microscope. Are their debt levels acceptable? Are there plans to contain debt and get it down? Do the government's policies help or hinder economic growth?

There are only two ways to deal with excessive debt – pay it off or write it off. Neither is happening in these countries. No amount of shuffling the debt around can hide the fact that in the US and Europe, and to a lesser extent in the UK, debt continues to grow.

Because it's government debt, finding solutions to stop the growth of this debt is in the hands of the politicians, and there are no easy political solutions.

It's not easy to cut pensions, benefits and public services, or to lift taxes. It's no wonder the politicians are struggling, and financial markets are losing faith in them.

We had our own milder version of this problem through the 1980s and 1990s and it was a long painful process. In fact it took until 2006 to get net debt back to where it was in 1972 as a proportion of GDP.

New Zealand's position

So where does New Zealand fit into this sobering picture in 2011?

In terms of the immediate impact, it’s a mixed picture. On the one hand these large economies may grow more slowly than expected and prices for our exports may come down. That isn’t unexpected given export prices are the highest in 50 years.

On the other hand, indebted countries are being sorted into the strong and the weak. The weak are paying higher interest rates on their debt. New Zealand is among the stronger countries that are paying lower interest rates.

So we are well positioned to remain a stable economy with prospects for higher incomes and more jobs.

We have taken a number of measures to make our economy less vulnerable. 

We are two years into a large long-term infrastructure investment programme that will help lift efficiency and productivity. 

In 2010 we put better incentives into the economy through a tax switch that increased taxes on consumption and property investment and cut tax on income from work, savings, investment and exports.

In 2011 we absorbed the costs of the Christchurch earthquake and still managed to put the Government's books on a track to surplus by 2014/15.

At the same time we've cut red tape, raised education standards and continued to reform the public sector, while improving frontline services.

And we've continued to invest more in science and innovation despite a tight budget.

There are signs the economy has now turned a corner. 

It has grown in seven of the last eight quarters and this year it is likely to grow faster than Australia. 

Our exporters are generally profitable despite a high exchange rate. 

New Zealanders have got the message on debt, which is barely growing. 

In 2007 New Zealanders spent $1.11 for early dollar they earned. This year it could be 99 cents for every dollar earned. That would be the first positive household savings rate in 11 years, helped by the lowest interest rates in 45 years.

We have avoided the harsh choices many governments face, because of the 20-year effort through the 1980s and 1990s to reduce government debt and a series of considered decisions by this Government to bring spending under control.

We have avoided the huge costs of banking collapses. Our housing market has drifted down, unemployment peaked at 7 per cent and is dropping, and 43,000 net new jobs were created in the last year.

So we managed to get through the recession in reasonable shape. 

Of course we face risks from global events as the economy begins to pick up. But we also face the best opportunities in a generation.

We borrowed too much of our increased wealth in the last 10 years, and in the next 10 years we will have to earn every dollar of it. 

So it's good news that the opportunity to earn higher incomes and create more jobs is better than it has been for a long time. We need to take that opportunity.

My predecessor Brian Talboys was the Minister of Trade and Agriculture in the 1960s and 1970s. He spent years travelling to Europe to plead for access for our products to markets that did not want them. 

Today's trade ministers will have secured free trade agreements by the end of next year that cover over half the world's population.

In the next decade we will be selling to fast-growing markets who want our products. While the middle class is static or shrinking in our traditional markets, China, India and the rest of the Asia Pacific have a rapidly growing number of affluent consumers.

More countries are joining the China club, and a number of them are markets we haven't properly explored yet, like Indonesia, or Vietnam.

The Food and Agriculture Organisation at the UN has just produced a study showing the world supply of protein is unlikely to expand as fast as demand, and that means stronger prices for New Zealand products.

So our opportunity to grow our incomes by growing our exports is limited only by our ability to organise ourselves to take advantage of it. 

So it's time to shift our focus.

The Government's economic plan

Up until now we have focussed on getting through the recession, dealing with the earthquake and natural disasters, while laying the platform for future economic growth.

Now it is time to look ahead. A re-elected National Government will focus on growing New Zealand’s tradeable sectors and taking more advantage of our connection to the world's fast growing economies, including Australia, so we can lift incomes and create more jobs at home.

We need to build a competitive economy to lift incomes and support success in our export markets.

It's about doing the basics and doing them well.

If we are re-elected National will lock in and extend the policies we initiated in the last three years.

We will build a tax system that allows workers to keep more of their hard-earned income and encourages savings, and channels investment to productive jobs.

We will build an efficient public sector that delivers better services to the public, value to taxpayers and doesn’t crowd out the internationally-competitive parts of the economy.

We will build the infrastructure New Zealand needs, and manage existing infrastructure better to lift productivity and unclog our economic arteries.

We will build on our successful ambitious free-trade agenda to link us into more of the world's fast-growing economies.

We will reorganise government so that New Zealand Inc can support business better to take the opportunities created by our trade agreements.

We will refocus the regulation-making parts of government to help business to be competitive and efficient.

We will insist on standards in our schools to help produce competent citizens and a skilled workforce.

And we will persist with limiting government debt, to keep our interest rates lower for longer and to reduce our reliance on foreign lenders, and to build a buffer against future economic shocks.

The Government has made significant changes in all of these areas since coming into office.

There are three particular areas where we can achieve significant success for New Zealand in another term in office.

Building momentum on savings and investment

It will be particularly important to build on the momentum of more savings, and more productive investment.

Over the last few years, many New Zealanders lost faith in investing their hard-earned savings in the businesses that will grow our economy.

Investors lost $8.5 billion in the finance company melt down – after taking bad advice to invest in unsound businesses.

By the middle of next year, a re-elected National Government will complete the job of re-regulating financial markets from top to bottom, so investors and KiwiSavers know they won't be ripped off.

But New Zealanders also need better opportunities for investment than in shaky finance companies.

So in keeping with our undertakings in the 2008 election, we've said that if re-elected we'll extend the mixed ownership model to four energy SOEs and reduce the Government's stake in Air New Zealand – while retaining majority stakes.

In every case the Government will ensure New Zealanders are at the front of the queue to buy shares.

If we want to rebalance our economy towards savings and exports, we need dynamic investment markets that offer attractive options for savers and enable local businesses to access the capital they need to expand.

Extending the mixed ownership model will provide attractive investment opportunities for Kiwi mums and dads and capital for the Government to reinvest in social infrastructure like schools and hospitals - reducing our borrowing requirements.

That is just one part of the Government's job we can do better.

We will continue to focus on a more efficient public sector and we will get the results you expect for your contribution to the welfare of all New Zealanders.

We can achieve success that’s good for people and good for the economy. For example, in 2008 we took over a dysfunctional and failing ACC. We have turned this performance around and ACC is now proposing cutting levies for households and businesses - keeping half a billion dollars a year in their pockets.

And there is more to come. We've told government chief executives to find $1 billion in savings and we've started looking at which agencies can be merged, or can work more closely together, to reduce costs and improve services.

If we stay on track we can drop ACC levies further, reduce crime rates and prison numbers, lift standards in all schools and give more people better health care – those are results worth fighting an election for.

Finally in a growing economy we will need everyone who can work to be in work. Unemployment among those aged 25 and over is already down to 4.5 per cent, with an ageing population leaving the workforce in increasing numbers.

We've already been busy in the skills area. Youth Guarantee places will rise to 7,500 next year, we have the highest number of core university and polytechnic places ever, we've opened eight trades academies and we are driving better results out of industry training.

We will be working to support as many people as possible into the labour market - skilled migrants, school leavers, and our biggest pool of lost potential, tens of thousands on long term welfare.

The Prime Minister will talk more about those policies tomorrow – better welfare policy is as important for our economy as it is for our community.

Conclusion

In the next few months, in the run-up to the election, we'll release new policies.

They will be policies that press ahead with our well established programme to build faster growth, more jobs and higher incomes.

They will be policies that make our economy and our businesses more competitive.

They will be policies that keep our debt low and support a stable investment environment with relatively low inflation and interest rates.

They will be policies that promote savings and support our exporters to make the most of the opportunities ahead.

And, most of all, they will be policies that give hard-working Kiwis the opportunity to get ahead here in New Zealand.

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08 August. Finance Minister Bill English talks about the US economy, the global debt problem, what it means for New Zealand and why our economy is relatively well-placed to weather any shocks in the pipeline.

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Deputy Prime Minister Bill English and Maori Affairs Minister Dr Pita Sharples today announced the 12 appointees to the Constitutional Advisory Panel.

The Government confirmed last December that it would conduct a wide-ranging review of New Zealand’s constitutional arrangements – including the size of Parliament, the length of the electoral term, Maori representation, the role of the Treaty of Waitangi and whether New Zealand needs a written constitution.

It was the start of a considered process that would take place over three years.

The Constitutional Advisory Panel is an independent group that will lead public discussion on constitutional issues that are under review and will then report to the Ministers.

The Panel will be co-chaired by Emeritus Professor John Burrows and Sir Tipene O’Regan, of Ngai Tahu. The other members are:

• Peter Chin
• Deborah Coddington
• Hon Dr Michael Cullen
• Hon John Luxton
• Bernice Mene
• Dr Leonie Pihama
• Hinurewa Poutu
• Professor Linda Smith
• Peter Tennent
• Emeritus Professor Ranginui Walker

The Panel will begin work shortly on a plan to inform public debate on New Zealand’s constitutional arrangements.

“The panel has a broad range of skills, including constitutional expertise and experience with community engagement,” Mr English says. “It will lead a forum for New Zealanders to develop and share ideas on constitutional issues, which we expect to be in place in 2012.”

“An important part of the review process will be consultation with Maori, particularly on the place of the Treaty of Waitangi in our constitution,” Dr Sharples says. “The members of this group are well placed to seek out and understand the perspectives of Maori on these important issues.”

The Panel will report to the Ministers in September 2013, identifying areas of broad public consensus and where further work is recommended.

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Biographical information:

Emeritus Professor John Burrows QC (Co-chair): Professor Burrows is currently a Law Commissioner. He has extensive legal expertise and has written a leading text on statute law in New Zealand. He has led or jointly led Law Commission reviews of the Presentation of New Zealand Statute Law, Privacy, the Official Information Act 1982, Tribunals in New Zealand, and Private Schools and the Law.

Sir Tipene O’Regan (Co-chair) (Ngai Tahu): Sir Tipene has extensive academic, governance, Treaty negotiations and Maori leadership experience. From a background in tertiary education he became Ngai Tahu’s chief Treaty claim negotiator. In more recent years he has led debate on developing iwi economic structures and modernising iwi governance models. He is currently the Upoko (traditional head) of one of the 18 constituent regional runanga of Ngai Tahu. Over the past 40 years he has served as a director or trustee of a wide range of commercial and non-profit enterprises in the public, private and Maori sectors.

Deborah Coddington: Ms Coddington is an experienced journalist and author. Ms Coddington was a Member of Parliament from 2002 until 2005.

Peter Chin: Mr Chin is currently a consultant with Webb Farry Lawyers. He has expertise in community engagement and representation (including as a former Mayor of Dunedin), and over 40 years’ legal experience. Mr Chin is a highly respected member of the Chinese community.

Hon Dr Michael Cullen: Dr Cullen is currently the Chairman of NZ Post and Principal Treaty Claims Negotiator for Tuwharetoa iwi. Dr Cullen has experience of machinery of government and Treaty of Waitangi/Crown-Maori relations. Dr Cullen was a long-serving member of Parliament, including as Deputy Prime Minister, Attorney-General, Minister in Charge of Treaty of Waitangi Negotiations, Minister of Finance and Leader of the House.

Hon John Luxton: Mr Luxton is currently an agribusiness entrepreneur, company director and consultant. Mr Luxton has expertise in government, governance, Crown-Maori relations and community connections. He is a former Minister and electorate MP. Mr Luxton has experience in co-management (as co-chair of the Waikato River Authority) and representing farming and other interests alongside Maori interests.

Bernice Mene: Ms Mene is currently a TV presenter on education and netball programmes. She has a strong public profile, project management experience and the ability to connect with the community. Ms Mene has represented New Zealand in netball and is a member of the New Zealand Order of Merit. She is also a qualified teacher and has represented New Zealand at OECD education forums.

Dr Leonie Pihama (Te Atiawa, Nga Mahanga a Tairi, Ngati Mahanga): Dr Pihama is a senior Maori researcher in Maori and Indigenous education with a focus on Kaupapa Maori. She has lectured in policy analysis, Maori women’s issues, and representation of indigenous people, and was the Director of the International Research Institute for Maori and Indigenous Education at the University of Auckland. Dr Pihama is a staunch advocate of Kaupapa Maori, and has also been involved in film and media production, and served on the Maori Television Board during its establishment phase.

Hinurewa Poutu (Ngati Rangi, Te Ati Haunui a Paparangi, Ngati Maniapoto): Ms Poutu is a doctoral student at Massey University and a teacher at Te Kura Kaupapa Maori o Mana Tamariki. She is a graduate of kura kaupapa Maori, with an academic and work record in studying, researching and teaching te reo Maori. Ms Poutu also has journalism experience and has worked as a Maori language media consultant.

Professor Linda Tuhiwai Smith (Ngati Awa, Ngati Porou): Professor Smith is currently Pro Vice-Chancellor (Maori) and a Professor of Education and Maori Development and the University of Waikato. Professor Smith is an internationally renowned author, and authority on Maori and Indigenous research and education. She has worked as a Treaty negotiator for Ngati Porou, and was Deputy Chair of Te Wananga o Awanuiarangi. Professor Smith is also a member of the Marsden Fund Council and the Health Research Council.

Peter Tennent: Mr Tennent is a former Mayor of New Plymouth. He trained as an accountant and spent much of his life as a hotelier and in public life. As Mayor of New Plymouth, he emphasised community involvement and encouraged public engagement. Mr Tennent was nominated for World Mayor in 2010, and judged to be in the top 10 world community leaders.

Emeritus Professor Dr Ranginui Walker (Whakatohea): Dr Walker is a member of the Waitangi Tribunal, and well known Maori author and academic. His groundbreaking book Ka whawhai tonu matou, struggle without end has become a reference text for the history of the modern Maori renaissance. He has organised many Maori leadership conferences on urbanisation, gangs, Maori land, Maori fisheries, Maori educational development and Maori representation in Parliament, and is widely published on Maori anthropology, education and development.

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Frequently asked questions

What constitutional topics will the Constitutional Advisory Panel consider?

Electoral matters:

• The size of Parliament.
• The length of terms of Parliament and whether or not the term should be fixed.
• The size and number of electorates, including the method for calculating size.
• Electoral integrity legislation.
• Cown-Maori relationship matters:
• Maori representation including the Maori Electoral Option, Maori electoral participation and Maori seats in Parliament and local government.
• The role of the Treaty of Waitangi within New Zealand’s constitutional arrangements.
• Other constitutional matters:
• Whether New Zealand should have a written constitution.
• Bill of Rights issues.

How were Constitutional Advisory Panel members selected?
Constitutional Advisory Panel members were selected based on their expertise and specialist skills in areas such as constitutional matters and community relations, and their ability to relate to a wide range of New Zealanders.

When will the public have their say?
The Constitutional Advisory Panel will establish a forum to develop and share ideas on the constitutional topics. It will seek the views of New Zealanders on these topics in 2012 and 2013.

Is the Constitutional Advisory Panel independent of the Government?
Yes, the Constitutional Advisory Panel is an independent group. It will be supported by a Ministry of Justice-led secretariat and will provide regular updates to the responsible Ministers (the Deputy Prime Minister and the Minister of Maori Affairs) and to the Cross-party Reference Group of Members of Parliament.

What will be the outcome of the Constitutional Advisory Panel’s work?
The Constitutional Advisory Panel will deliver a final report to the responsible Ministers (the Deputy Prime Minister and the Minister of Maori Affairs) by the end of September 2013, identifying areas of broad consensus where further work is recommended. Its work should be seen as part of a long conversation about New Zealand’s constitutional arrangements. The responsible Ministers will report to Cabinet by the end of 2013, and the Government will have six months to respond. The Government has acknowledged that constitutional change should not be undertaken lightly and will require either broad cross-party agreement or the majority support of voters at a referendum.

Where can I find more information?
More information on the Consideration of Constitutional Issues, including the Terms of Reference, can be found at: www.beehive.govt.nz and www.justice.govt.nz.

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