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March 2010

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Strategic Directions September 2009 Newsletter

General

Trans-Tasman regulatory integration to deepen
Prime Ministers Kevin Rudd and John Key met in Canberra on 20 August 2009 during Prime Minister Key’s official visit to Australia.

At the meeting, the Prime Ministers agreed to a joint statement of intent to give new intensity and a renewed focus to delivering the practical benefits and outcomes from the Single Economic Market (SEM). They noted that this work will be guided by key principles designed to deliver more quickly and effectively the benefits of a seamless trans-Tasman economy to consumers and businesses in both countries. A key element within the framework is a deliberate move from consideration purely of national benefits in policy development, to consideration of the net trans-Tasman benefit.

The Prime Ministers announced that they had already identified a range of shared outcomes in the areas of insolvency law, financial reporting policy, financial services policy, competition policy, business reporting, corporations law, personal property securities law, intellectual property law, and consumer policy.

The outcomes the Prime Ministers identified complement and build on the extensive work already underway under the SEM. They will accelerate and deepen trans-Tasman regulatory integration.

The joint statement and full list of proposed outcomes can be found on the MED website.

Growth and Innovation September 2009 Newsletter

There is no news for this month

General September 2009 Newsletter

There is no news for this month

Companies Office September 2009 Newsletter

General

Companies Office key data
The Companies Office has released a report with key statistics including the last financial year (July 2008 to June 2009).

The report includes the statistics on:

New companies incorporated;
Companies removed;
New voluntary sector registrations; and
Liquidations, receiverships and voluntary administration volumes.

To view and comment on the report visit the latest blog post at the Companies Office Blog.

Adjustment to the employee preferential claim figure under the Companies Act 1993 and the Insolvency Act 2006
Insolvency law provides all creditors with some measure of equality in order to avoid destructive fights between creditors and wasteful races to courts to recuperate their debts.

Employees are one of the categories of creditors that have statutory preference so that wages and salary are paid before payments are made to unsecured creditors of an insolvent company.

The maximum amount employees can claim in an insolvency proceeding under the Companies Act 1993 and the Insolvency Act 2006 is currently set at $16,420. There is a statutory requirement to adjust this amount every three years based on a prescribed formula. The prescribed formula provides for the revised figure to reflect any overall percentage increase, over the relevant adjustment period, in average weekly earnings (total, private sector), calculated by reference to the last Quarterly Employment Survey published by Statistics New Zealand.

The new employee preferential claim figure has been adjusted to $18,700. This reflects the overall increase in average weekly earnings in the private sector of 13.9% over the three-year period ending 30 June 2009.

The adjusted employee preferential threshold amount will come into effect on 25 September 2009.

Please see the Companies Office website for related information.

ITS September 2009 Newsletter

General

Employees are one of the categories of creditors that have statutory preference so that wages and salary are paid before payments are made to unsecured creditors of an insolvent company.

The adjusted employee preferential threshold amount will come into effect on 25 September 2009.

Please see the Companies Office website for related information.

Improving the operation of financial markets
On 26 August, as part of the range of measures government is putting in place to improve the operation of financial markets, Commerce Minister Simon Power announced three key areas where new regulations are being put in place.

New securities regulations have been approved that will improve the quality of disclosure to investors, improve flexibility for issuers, and reduce compliance costs. The regulations also provided for the details of the new simplified disclosure prospectus for listed issuers that were established by the recently enacted Securities (Disclosure) Amendment Act 2009. This will provide a significant reduction in compliance costs for listed issuers by removing the requirement to disclose information that is already available to the market.

The Government hopes to introduce regulations that will simplify and clarify disclosure obligations for finance company moratoria. Moratoria proposals are an alternative to receivership for companies that issue debt and are in financial difficulty and unable to pay their investors.

The Minister also announced the introduction of a new regime for corporate trustees and statutory supervisors who supervise debt issuers and some collective investment schemes. The regime will involve the licensing of trustees by the Securities Commission, and a range of measures to strengthen the quality of supervision provided by trustees. Legislation is expected to be ready for introduction to Parliament by the end of the year.

National Enforcement Unit releases August figures for Insolvency Act offences
The National Enforcement Unit (NEU) received three new insolvency cases in August 2009.

There are 26 cases currently in court and 20 cases under investigation.

	August	YTD Total
New cases	3	45
Cases closed	2	40
		July 2009 - June 2010
Charges	3 charges 2 defendants	30 charges 10 defendants
Convictions	1 charge 1 defendant	1 charge 1 defendant

Convictions

Warwick George Barker was convicted under Sec 126(1)(g)(i) of the Insolvency Act 1967 for concealing assets and Sec 274(1)(b) of the Companies Act 1993 for failing to deliver property to the Liquidator. He was sentenced on 9 July 2009 to 200 hours community service on each charge, to be served concurrently

Related link

Further information on the National Enforcement Unit

IPONZ September 2009 Newsletter

General

Sourcing plant material of protected varieties
The availability and sourcing of plant material for varieties, necessary for evaluation alongside plants of candidate varieties in plant variety right growing trials, continues to be problematic with ongoing difficulties.

This is clearly an issue for non-protected varieties with no immediate solution. In recent years the availability of plants of protected varieties is also becoming an increasing problem.

The granting of a plant variety right comes with certain obligations with respect to official access to plant material. The Plant Variety Rights Act 1987 requires that plant material of protected varieties be available on request from the Plant Variety Rights Office for the testing of other varieties. Section 16 of the Act provides for the possible cancellation of a grant of plant variety rights if representative plants of a protected variety are not available.

The PVR Office requests that the availability of plants for PVR testing or other PVR Office purposes be taken into consideration for variety management plans or strategies.

New Practice Guidelines

New trade mark practice guideline – Government departments as trade mark applicants
From time to time IPONZ receives applications for trade mark registration from Government departments. To assist these departments and their agents in the application process, the Practice Guideline on Filing Trade Mark Applications has been amended to include guidance on the appropriate wording for the applicant name for Government departments.

The following will be inserted in the Practice Guideline as clause 4.1.6:

4.1.6 Government departments
An application may be filed in the name of a Government department. When an application is filed in the name of a Government department, the applicant name should be in the following format:

"Her Majesty the Queen in right of New Zealand acting through the Department of …”

OR

"Her Majesty the Queen in right of New Zealand acting through the Commissioner of … or his or her duly authorised delegate"

MVTR September 2009 Newsletter

There is no news for this month

PPSR September 2009 Newsletter

General

What is the Registrar's role
The role of the Registrar of Personal Property Securities is to manage the operation of the Personal Property Securities Register (PPSR) and make it available for public use. The PPSR is a centralised electronic register and is available 24 hours a day, 7 days a week.

Searching and Registration
The Registrar does not provide searching or registration services. If you want to conduct a search or register a financing statement, you will have to be a registered user. If you prefer, you can engage an agent to act on your behalf.

PPSR staff are not able to register or maintain financing statements, or conduct searches of the register for you.

Disputes
From time to time we receive calls asking the Registrar to help resolve disputes between secured parties and debtors or persons with an interest in certain collateral. Some of the more common calls include requests to update the register where –

a debtor has repaid their debt but the financing statement has not been discharged, or
a debtor or another interested party believes that the secured party does not hold a security interest over the collateral described so has no grounds for registering the financing statement.

It is not the Registrar’s role to resolve these types of disputes.

The Personal Property Securities Act 1999 places the responsibility for ensuring the accuracy of financing statement registrations squarely on the shoulders of the secured party.

What should you do if you are the debtor or an interested party and you believe there is a problem with a financing statement? In the first instance you should contact the secured party with a written notice asking them to put it right. If the secured party fails to respond to this written notice within 15 working days – the debtor, or interested party, can consider lodging a change demand.

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

Energy & Resources September 2009 Newsletter

General

Reminder: Electricity Market Review submissions
Submissions on the Electricity Market Review discussion paper "Improving Electricity Market Performance" are due by 5.00pm Wednesday 16 September 2009.

Comments should be provided in writing, preferably via email to: electricity@med.govt.nz.

Alternatively, submissions can be provided by post or fax to:
Electricity Market Review
Energy and Communications Branch
Ministry of Economic Development
P O Box 1473
Wellington 6140

Fax (04) 473 7010

Submitters are asked to focus on the recommendations in the paper, and to please follow the structure of the paper in their submissions. Reference the section and paragraph numbers from the discussion paper where relevant.

Related link

Improving Electricity Market Performance discussion document

Tourism September 2009 Newsletter

General

International visitors plan accommodation ahead
Data released by the Ministry of Tourism shows that accommodation is most commonly booked prior to travel, with nearly two-thirds (64%) of international visitors booking ahead.
The Regional Visitor Monitor (RVM) shows that Australians are more likely than other markets to book at least some accommodation before they arrive in regions. Seventy-five per cent of Australian visitors booked accommodation prior to arrival compared to 60% for all other markets (excluding Australians).

Ministry of Tourism Research Manager, Bruce Bassett, said that the shorter length of stay by Australian visitors was a likely factor in the pre-booking behaviour. “Because Australians tend to take short breaks in New Zealand, they are more likely to plan their trips in detail. They are also more likely to be travelling for specific events such as weddings, birthdays, and other special occasions and events, where they know exact dates, and want to be sure they have a bed for the night.”

The internet is most frequently used to pre-book accommodation (50%) and one-in-four (24%) travellers still pre-booked through a travel agent. Perhaps surprisingly – Australians were more likely than any other market to pre-book accommodation using a travel agent (29%).

The RVM also found that satisfaction with accommodation was higher if a visitor had pre-booked, with the exception of Asian markets.

“When booking ahead, travellers are likely to have done research, seen photos and perhaps read some reviews of the accommodation they’re booking. Having built up certain expectations they are less likely to be surprised when they arrive. The finding implies that if we encourage travellers to pre-book their accommodation, they will be happier with their visit overall – because accommodation is such a significant aspect of a stay.”

The RVM is a partnership between the Ministry of Tourism, Tourism New Zealand and the Regional Tourism Organisations for Auckland, Rotorua, Wellington, Canterbury, Queenstown and Dunedin.

The RVM Benchmark Report is available from www.tourismresearch.govt.nz/rvm. For further information on the RVM contact Bruce Bassett - telephone (04) 498 7448 or email bruce.bassett@tourism.govt.nz.

Consumer Issues September 2009 Newsletter

General

Safe garage door springs
You might think your garage just needs a spring clean, not a new door spring, but there may be a serious hazard lurking in those dusty corners.

The Ministry of Consumer Affairs is asking people to check that their garage doors springs are secured by a retaining cable. This simple measure will ensure that as the springs wear, they do not present a danger should the spring break.

To find out what the risks are and how to prevent damage or injury read our Word of Advice column.

Mind your T’s and C’s
You’re doing a spot of online shopping and are about to hit the ‘buy’ button to get your new purchase when up pops “Please accept the terms and conditions.” Be honest - do you read them? Or do you just click on “I agree” without even giving them a second thought?

Every time you agree to buy something you are entering into a contract. The terms and conditions are as much a part of the contract as what you are buying and how much you have to pay. So, if you don’t know what the terms and conditions are, you don’t really know what you are agreeing to.

Find out what to look out for and how to negotiate in our Word of Advice column.

RSM September 2009 Newsletter

Spectrum Licensing

Presentations from Future Wireless Technologies Seminar are now online
The Ministry of Economic Development convened a seminar on Future Wireless Technologies on 24 August 2009 in Wellington.

The intention of this event was to share knowledge amongst participants about emerging developments and to commence identifying areas on which to focus future technical and regulatory work.

Presentations were contributed by the Ministry, industry and research institutions, with topics including Cognitive Radio, Software Defined Radio and Future Mobile and Broadcast Technologies being covered. A panel discussion was also held. Attendance exceeded expectations with the event being oversubscribed and over 100 participants attending.

The Ministry has requested feedback on the event and suggestions on next steps from participants.

Digital Futures discussion paper
The Ministries of Economic Development and Culture and Heritage are currently seeking feedback on a range of issues related to the switch-over to digital-only television broadcasting.

The Digital Futures: Planning for Digital Television and New Uses discussion paper outlines issues relating to achieving a fully digital television broadcasting environment and the re-allocation of the spectrum resulting from the upcoming “digital switch-over” (DSO) process.

Submissions close on Wednesday, 30 September 2009. They should be made in writing, preferably by email, to radiospectrum@med.govt.nz (with “Digital Futures discussion document” in the subject line), or by mailing:

Digital Futures Discussion Document
Radio Spectrum Policy and Planning
Ministry of Economic Development
P O Box 1473
Wellington 6140

Radio Licensing

SMART Tip #1 – How to allow additional users in your organisation to manage licences on your behalf
If your organisation holds radio or spectrum licences in the Register of Radio Frequencies (SMART), you will have a client record and an associated logon with a user name and password. This SMART Tip explains how you can add an additional user to your client record to enable them to manage licences on your behalf.

This is particularly useful if you want someone else in your organisation to logon in their own right (for example, someone in your accounting team or an external radio engineer). These additional users will have their own user name and password to manage your client and licence details – there is no need to divulge your own logon details (not a recommended practice!).

You will also have the ability to manage the logons of these additional users and delete them if access is no longer required.

For further information freephone 0508 RSM INFO (0508 776 463).

Related link

Link to Register of Radio Frequencies (SMART)

Product Compliance

Prohibited radio jammer equipment is subject to a $1250 fine
Devices intended to "jam", that is harmfully interfere with, radiocommunications are increasingly becoming available.

Recognising the importance of effective, interference-free spectrum for New Zealand's communications infrastructure, particularly where radio-navigation or other safety services are concerned, Radio Spectrum Management has issued a Prohibited Radio Jammer Equipment Notice for radio jammer equipment.

The manufacture or sale of such interfering equipment is not acceptable in New Zealand and an infringement fine of $1,250 may be imposed on any company found to be in breach of the notice.

Persistence and direction finding pays off
A recent interference problem at a land mobile site in the Blenheim area involved Radio Spectrum Management (RSM) staff chasing a rogue signal for several hours.

The signal was only able to be heard by RSM staff at two widely separated hill top sites using a high gain antenna and an amplifier.

Two direction finding bearings were enough to give a map location for the faulty mast head TV amplifier. It was tracked down on the western side of Blenheim before it got dark.

RSM has located several spurious mast head TV amplifiers in the last year and reminds industry to use low gain amplifiers and to install TV systems with quality splitters and terminations.

Direction-finding can even be used to identify interfering stations on the other side of the world. In a separate case this month, a licensee using a frequency around 7MHz complained of interference on their service. With the co-operation of the ACMA direction finding service in Australia, the interfering signal was identified as a time signal station which had recently come on to the frequency in Ottawa, Canada. Negotiations are being held between administrations as to how to overcome the interference issue.

Are you selling wireless products?
This is a reminder that if you are selling electronic products, with a radio transmitter function, you must ensure that the transmitter complies with prescribed standards and is authorised by a New Zealand radio licence.

Radio transmitters are present in all products using WiFi or Bluetooth connections, and in wireless devices such as cordless phones, baby monitors, security systems and walky-talkies.

This requirement applies to all sellers of electronic products with radio transmitter functions, regardless of whether you are a commercial seller or a private seller, and including sales on Trade Me. If you are using Trade Me then the website lists radio transmitters and transceivers as restricted items.

For further information go to the Radio Spectrum Management website for advice about the product compliance and licensing requirements, or contact Radio Spectrum Management on 0508 RSM INFO.

Inform & Comm Tech September 2009 Newsletter

There is no news for this month