Business Update

Strategic Directions November 2009 Newsletter

General

As part of this procurement reform programme, Minister Gerry Brownlee recently announced that the Department of Internal Affairs and the Ministry of Economic Development will host the first established procurement Centres of Expertise.

• The Department of Internal Affairs will host the CoE responsible for establishing all-of-government contracts for IT equipment (PCs and laptops) and multi-functional devices (copier, printer, scanner and fax combined); and
• The Ministry of Economic Development will establish a CoE responsible for all-of-government contracts for passenger vehicles and stationery.

• Achieving cost savings;
• Building procurement capability and capacity;
• Enhancing New Zealand business participation; and
• Improving governance, oversight and accountability.

The past year was a very busy one for the Ministry as we responded to the priorities of a new Government, the impact of a worldwide recession, and a greater focus on delivering value for money for taxpayers.  The Ministry’s people worked hard to deliver on a range of projects including work to improve business support programmes, reduce trade and investment barriers, lighten the regulatory burden on business, deliver better business services, begin implementation of the ultra-fast broadband network, review electricity market performance, and help improve Auckland infrastructure and governance.

You can find the annual report, along with a summary, on the Ministry’s website.

Subject to the results of the survey, the seismic data collected will be compiled along with various geotechnical reports into data packages to support the promotion of competitive block offers to attract exploration companies. Although the timing is not yet determined, the block offers are likely to occur in 2011.

“In 2008 oil was our third largest export earner and we have the opportunity to increase the value of this industry to our economy. The data acquisition initiative has the potential to open up new areas which are prospective for oil and gas,” said Energy and Resources Minister Gerry Brownlee.

In May the Government committed $20 million to the data acquisition programme as part of Budget 2009.

”This latest seismic data acquisition will increase exploration activity across our frontier basins,” said Mr Brownlee.  ”We have a vast offshore continental area of which New Zealand’s frontier basins cover an area of about 1.2 million square kilometres and may be capable of generating billions of barrels of oil.”

The Bergen Resolution will make a short port call in Wellington and then head out into the Pegasus Basin to acquire approximately 3,000 km of 2D seismic data.  Preliminary studies by GNS Science suggest this basin has considerable hydrocarbon potential. 

The Bergen Resolution will then head south to the Great South Basin and Bounty Trough area to acquire approximately 4,000 km of seismic data. Reconnaissance data will also be acquired across the Challenger Plateau and Bellona Trough area, outer Taranaki Basin, and Northland East Slope Basin area where satellite oil seep detection surveys have identified natural oil seeps suggesting active petroleum systems are present in these areas.

Exploration companies will also utilise this vessel to acquire further 2D and 3D seismic data.

In addition to the data acquisition work, a large drilling campaign is due to commence when the Kan Tan IV semi-submersible drilling rig arrives in New Zealand towards the end of this year. 

Crown Minerals will also be advancing a variety of detailed geotechnical studies on the Taranaki Basin. The results of this work will assist moving forward exploration in the basin and accelerate the potential discovery of new oil and gas reserves.

• View a large image of the areas to be surveyed this summer

Growth and Innovation November 2009 Newsletter

General November 2009 Newsletter

Companies Office November 2009 Newsletter

General

Taking a quick look back in history we started introducing online services in 1996 with an electronic search. Since then we have introduced multiple new services such as a director, shareholder and address search (1997), electronic company incorporation and credit-card payment options (1999), Annual Return filing (2000), Certificate of Incorporations (2002), Change of Name (2003), Companies Office G2B services (2004) and the joint IRD service for tax application (2005) and GST registration (2007), to name a few. Following this approach, we will launch the new IT platform, called Enterprise, starting in Winter 2010. 

Enterprise means we will have a new look and feel, and some brand-new services in addition to all our existing ones (advanced searching, online filing and incorporation, and 24/7 availability). Our clients will benefit from:

• better and innovative services to the business community
• a higher quality of register information to the public
• increased integrity of the information on our register
• improved internal processes. 
  

ITS November 2009 Newsletter

General

The purpose of the delegation’s visit was to share insolvency knowledge and experience with a view to initiating and developing a positive and mutually beneficial working relationship.  With input and guidance from the Ministry of Foreign Affairs and Trade (MFAT), ITS worked with SAE on developing a document to record the desire of ITS and SAE to work more closely.

The agreement document outlines how ITS and SAE expect to be able to work together on areas of mutual benefit and interest. The general terms of the agreement are as follows:

• Discuss and work on matters, projects and activities of mutual interest and benefit;
• Contribute to each other’s studies and research if appropriate; and
• Discuss any other matters that the participants mutually decide.

The agreement between ITS and SAE was signed on 14 October 2009 at the International Association of Insolvency Regulators conference in Johannesburg, South Africa. The agreement was signed on behalf of ITS by Acting Group Manager, Robyn Cox and on behalf of SAE by Rodrigo Garza.

There are 28 cases currently in court and 18 cases under investigation.

Related link

• Further information on the National Enforcement Unit

IPONZ November 2009 Newsletter

General

Clients and agents can log in to www.iponz.govt.nz  to view and download the correspondence relating to their Patent, Design or Trade Mark portfolio.

Following an extensive digitisation project we have been able to create an electronic file for the majority of IP records in our system. As a result of this work we are now in a position to provide clients / agents with this service.

Further information on why you should use this new service and who can use it can be found on the IPONZ website http://www.iponz.govt.nz/cms/iponz/latest-news/view-ip-history-online-service-now-available

MVTR November 2009 Newsletter

General

• Carrying on the business of motor trading without being registered
• Tampering with odometers
• Failure to display a Consumer Information Notice
• Providing false or misleading information on a statutory declaration.

› Learn more about trader responsibilities
› Learn more about the complaints processes under the MVSA

PPSR November 2009 Newsletter

General

• hire purchase agreements (for example, over a TV)
• long term leases (for example, a lease over a washing machine)
• retention of title (Romalpa) clauses (for example, when a manufacturer supplies goods to a customer and has a term in their invoice that they keep title to the goods until the invoice is paid)
• loans which have personal property as security (for example, a car).

The importance of security agreements
Registering a financing statement does not replace the need for the underlying security agreement.  Your financing statement needs to be supported by an appropriate security agreement.  In most cases this will be a written agreement, signed by the debtor but can include an oral agreement.
The actual security agreement is not registered on the Personal Property Securities Register (PPSR) - in its place a notice of this agreement is posted on the Register, by way of registering a financing statement.

• Learn more about the PPSR at www.ppsr.govt.nz

If you are unsure how the Personal Property Securities Act 1999 (PPSA) affects you, we recommend that you seek professional advice.

Energy & Resources November 2009 Newsletter

General

On 4 November 2009, Energy and Resources Minister Gerry Brownlee announced a discussion document on the proposed changes to Schedule 4 will be released in February next year to be followed by a six-week public consultation period.

In August 2009 the Minister of Energy and Resources and the Minister of Conservation directed the Ministry of Economic Development and the Department of Conservation to undertake a review to determine conservation areas that should be added to Schedule 4 and whether any areas included within it could be removed.

Conservation areas listed in Schedule 4 of the Crown Minerals Act 1991 are closed to mining access (except underground mining that does not disturb the land surface). 

Subject to the results of the survey, the seismic data collected will be compiled along with various geotechnical reports into data packages to support the promotion of competitive block offers to attract exploration companies. Although the timing is not yet determined, the block offers are likely to occur in 2011.

“In 2008 oil was our third largest export earner and we have the opportunity to increase the value of this industry to our economy. The data acquisition initiative has the potential to open up new areas which are prospective for oil and gas,” said Energy and Resources Minister Gerry Brownlee.

In May the Government committed $20 million to the data acquisition programme as part of Budget 2009.

”This latest seismic data acquisition will increase exploration activity across our frontier basins,” said Mr Brownlee.  ”We have a vast offshore continental area of which New Zealand’s frontier basins cover an area of about 1.2 million square kilometres and may be capable of generating billions of barrels of oil.”

The Bergen Resolution will make a short port call in Wellington and then head out into the Pegasus Basin to acquire approximately 3,000 km of 2D seismic data.  Preliminary studies by GNS Science suggest this basin has considerable hydrocarbon potential. 

The Bergen Resolution will then head south to the Great South Basin and Bounty Trough area to acquire approximately 4,000 km of seismic data. Reconnaissance data will also be acquired across the Challenger Plateau and Bellona Trough area, outer Taranaki Basin, and Northland East Slope Basin area where satellite oil seep detection surveys have identified natural oil seeps suggesting active petroleum systems are present in these areas.

Exploration companies will also utilise this vessel to acquire further 2D and 3D seismic data.

In addition to the data acquisition work, a large drilling campaign is due to commence when the Kan Tan IV semi-submersible drilling rig arrives in New Zealand towards the end of this year. 

Crown Minerals will also be advancing a variety of detailed geotechnical studies on the Taranaki Basin. The results of this work will assist moving forward exploration in the basin and accelerate the potential discovery of new oil and gas reserves.

• View a large image of the areas to be surveyed this summer.

Tourism November 2009 Newsletter

General

Consumer Issues November 2009 Newsletter

General

People tend to think that buying things off the internet makes the rules a bit murky. But the law doesn’t actually change when you are buying online. Buying from a website at a fixed price is like buying from a shop. The only trick is finding out what country the shop is in. You’ll also want to consider how you pay for it and any extra costs that may be involved.

See our Word of Advice column to find out what laws apply and what to look out for when internet shopping.

The Minister of Consumer Affairs recently banned the import and sale of all chainsaws that don’t have chain brakes. But you might have one of these chainsaws in your shed already.

Find out more about the chainsaw ban and what equipment and skills you need in our Word of Advice column

RSM November 2009 Newsletter

Spectrum Licensing

This will be one of the activities to be carried out in November 2009 during their visit to New Zealand as part of a research initiative led by Fernando Beltran, Information Systems and Operations Management (ISOM) Department, University of Auckland Business School.  The seminar is sponsored by the Ministry and the PING Research Group at Auckland University.

The purpose of this event is to share knowledge amongst participants about emerging research and best-practice for spectrum regulation of different uses.  The seminar is likely to be of interest to all users of radio spectrum, particularly industry groups, including users and operators of emerging technologies (particularly wide-band low power devices).  A programme is presented below.

The seminar will be held at the Ministry at 33 Bowen Street in Wellington and is expected to run from 9.00am – 12.00pm, with a light lunch being provided at 12.00pm. 

Intending participants should register their attendance by sending an email to radiospectrum@med.govt.nz by 11 November 2009.

Programme - Current Research in Spectrum Allocation and Related Issues
16 November 2009
Venue: Wigley/Ngata Rooms, Ground Floor, MED Building,
33 Bowen Street, Wellington, New Zealand

9:00 – 10:00 am | Overview of spectrum assignment and allocation issues - both licensed and unlicensed use

1. Advanced Wireless Service 3 (Service Rules - Licensed Use)
2. White Spaces: “Dynamic Spectrum Access” (Unlicensed Use/Assignment Issue)
3. Licensed vs. Unlicensed Use (Allocation Issue)
4. Wireless Spectrum Congestion (Unlicensed Use/Assignment Issue)
5. Use of a market to identify service rules

10:15 – 11:00 am | Introduction to auction tools - types of auctions and their Pros/Cons

1. Objectives
   1. Efficiency
   2. Revenue
       
2. Economic Environment
   1. Bidder Preferences
   2. License Characteristics
       
3. Auction Forms and Their Pros/Cons
   1. Simultaneous Sealed-bid
      1. Non-package
      2. Package bidding
   2. Anglo-Dutch (Ascending bid auction with final sealed-bid round)
   3. Clock Auction

11:15 – 12:00 am | International survey of spectrum auctions and trends

The recent economic downturn has caused a number of advertising-dependent commercial radio broadcasters to reassess business plans, and some licensees may have difficulty paying the currently contracted one-off lump-sum renewal payments for their 20-year spectrum licenses, due next year.

Cabinet has therefore agreed to offer an alternative payment option to the affected commercial radio broadcasters.  This will allow a series of no more than five annual payments incorporating interest at 9.5 percent, plus inflation, in order to make the alternative offers revenue-neutral to the Crown. The 9.5 percent is Treasury’s published discount rate for technology projects.

There will also be appropriate mechanisms for the Crown to have first security over any licenses paid for in this manner until the payments are completed.

Mr Joyce said that this option is designed to provide the radio industry with some short-term flexibility to assist it during the current economic downturn.  It does not represent a decision to move away from lump sum payments when settling other spectrum purchases.

Radio Licensing

Simplex and repeater channels are now labelled with the channel use information where appropriate.
 
The channel use information is also viewable in Spectrum Search Lite by clicking on a channel in the "M/R Plan" area at the top of the page/screen. Spectrum Search Lite is a graphical software tool designed to search and display data contained in RSM's Spectrum Management and Registration Technology (SMART) system.

The inclusion of a band plan, or a particular channel in any band plan, does not necessarily mean that the band or channel is available for licensing.

Please consider the environment before printing a copy of the latest version of PIB 23.

The General User Radio Licence prescribes limits, conditions and a schedule on the operation of LPFM. Section 5 of the schedule specifies a maximum field strength of 112dBµV/m at a reference distance of 10 metres from the transmitting aerial in a 100 kHz resolution bandwidth (of the measurement receiver). Because the signal appeared stronger than expected, and an off-air audit does not require the assistance of the licensee, signal strength measurement was promptly commenced.

After correction for all factors, the measured field strength was calculated as 126dBµV/m at 10m within 100 kHz; 14dB over the limit prescribed. This indicated that the output of the transmitter was slightly over 10 Watts e.i.r.p. Also noted was excessive occupied bandwidth levels against both the LPFM licence schedule and the applicable Table 3 limits prescribed in the Radiocommunications (Radio Standards) Notice 2008.

As the transmitter was not operating in accordance with the licence conditions, an infringement fine was issued to the company responsible.

Audits aim to ensure that all spectrum users are complying with the terms, conditions and restrictions of the LPFM General User Radio Licence, and fair and equitable access to the radio spectrum is available to as many users as possible.

Radio inspectors set up to conduct field strength measurements.

Product Compliance

This publication updates the requirements applying to suppliers and users of radio transmitters and to suppliers of electrical and electronic products.

It outlines:

• The responsibilities of users and suppliers and the objectives of the guide.
• The audit policy applied by RSM.
• The enforcement process for non-compliant activities.

The guide provides information that will help suppliers and users meet their obligations to protect radiocommunication and broadcasting services from radio frequency interference (RFI).

Please send questions to info@rsm.govt.nz or freephone to 0508 RSM INFO (0508 776 463).

Related link

• Compliance Guide 2009

While prayers and ceremonies may not have been disturbed by the ringing of mobile phones, the wider community was potentially at harm. The risk of emergency calls failing in the vicinity of the church was significant.
 
With the potential impact of that risk so high, the Ministry of Economic Development has now published a prohibited equipment notice for jammers. Intending suppliers and purchasers of jammers should note that the outcome may be an infringement fine of $1,250 or prosecution under the Radiocommunications Act 1989.

If churches, libraries, cinemas or restaurants require phone-free zones they should consider appropriate in-house rules and signage to control use of phones, allowing essential communication services to be maintained unharmed by interference.

Related link

• Prohibited Radio Jammer Equipment Notice 2009

As a result of the evaluation, a compliance strategy review was undertaken, which included two industry workshops in December 2008 and March 2009.

From feedback received, RSM revised and refocused its compliance audit programme. One of the major changes is greater emphasis of resources on radiated (off-air) measurements.

Since 1 July 2009, over 90 percent of licence audits completed have been off-air measurements. This has had the beneficial effect of significantly reducing the amount of client interaction and involvement required, resulting in cost and time savings for those licensees.

Whilst there is a greater emphasis on off-air audits, some direct-coupled measurements will continue to be made, both for sampling information and for confirmation of off-air audit data. These will only be done by prior arrangement with licensees.

With this new focus RSM field staff have been developing and refining their skills in this very demanding discipline with associated benefits expected for interference investigation. This is particularly relevant in the fixed links above 1GHz where RSM has traditionally not spent a lot of time auditing mainly due to equipment constraints.

Off-air measurements have all but removed the need to involve licensees, and in most cases licensees will only know an audit has been conducted once RSM has completed the off-air analysis and advised licensees the outcome.

Related link

• Compliance audit programme for 2009-10 and beyond 

To prevent this effect, equipment must conform to technical electromagnetic compatibility (EMC) standards, and comply with other requirements before being supplied or offered for sale. For many products this includes being marked with either one of two recognised regulatory compliance marks – the C-tick or the RCM.

Feedback sought

1. Transitioning to a single RCM mark for EMC compliance.
2. Providing for electronic labelling of equipment.

To make a submission email international.standards@acma.gov.au by Tuesday 15 December 2009.

Background

The RCM is also a voluntary compliance label for electrical safety in both Australia and New Zealand. Electrical safety regulators have recently reviewed the safety framework and are likely to formally adopt the RCM as a mandatory mark within the next three years. In principle, one symbol to represent compliance with multiple regulatory frameworks should reduce business compliance costs.
 
Further details, including next steps for New Zealand, will be advised in due course.

Related links

• Current EMC requirements

Inform & Comm Tech November 2009 Newsletter