More time to fix unreinforced masonry

Source: New Zealand Government

Headline: More time to fix unreinforced masonry

Building owners who have taken ‘reasonable steps’ to secure unreinforced masonry on their buildings following the 2016 Kaikoura Earthquake now have a further six months to complete the remedial work.
‘Reasonable steps’ would include
Design work being complete, or in progress, and a demonstrable programme of work.
The programme of work provides an indication of when the building owner will contract a builder and when the work is expected to be completed. 
“This amendment is to help building owners who’ve made genuine efforts, but haven’t met the deadline, due to capacity constraints in the sector,” says Building and Construction Minister Jenny Salesa.
“Where building owners have done nothing, I expect councils to exercise their powers to manage public safety risks.”
Councils have the power to limit access to the building, and/or take enforcement action. The penalty for non-compliance is a fine of up to $200,000.
“It is crucial for building owners to make their buildings safe. Unreinforced parapets and facades pose significant risk to life and safety of the public,” says Ms Salesa.
“Thirty-nine people were killed by falling unreinforced masonry in the 2011 Christchurch earthquake, and we know the risks can be reduced by securing parapets and facades to the main building structure.
“We have struck a balance between the need to protect public safety and the need to recognise the practical constraints that have delayed progress for some building owners,” says Ms Salesa.
Note to the editor: On 19 March, the Government increased the funding cap for securing work for buildings that are three storeys or taller from $25,000 to $65,000.

Govt accounts continue to track slightly above forecast

Source: New Zealand Government

Headline: Govt accounts continue to track slightly above forecast

Stronger employment growth and residential investment continued to support the Government’s financial accounts in the seven months to the end of January, Finance Minister Grant Robertson says.
The operating balance before gains and losses (OBEGAL) was $677 million above forecast at a surplus of $2.4 billion. This was driven by core Crown tax revenue coming in $937 million (2.1%) above forecast at $44.8 billion. Core Crown expenses were $155 million (0.3%) above forecast as some expenditure was recognised earlier than expected. Net debt at 21.6% of GDP was below the 22.0% forecast.
“Treasury says stronger employment growth in the economy than it had expected in last year’s forecasts has led to PAYE coming in higher than forecast due to more people working. Stronger residential investment meant GST receipts were up, while customs and excise duties also contributed,” Grant Robertson says.
“While some of the revenue variance might still reverse out over coming months, primarily related to customs and excise duties, much of it is expected to persist and will be built into the 2018 Budget Economic and Fiscal Update.”
The better-than-expected financial position of the Government reflects broader economic conditions.
“Business confidence has improved this year, with headline perceptions turning around and the more important ‘own activity’ measures continuing to rise in positive territory. Employment and investment intentions are positive, residential construction intentions are up and export intentions have also improved. On top of this, the latest consumer confidence and employee confidence readings are also positive.
“These surveys can often fluctuate month-to-month, but the trends indicate a clear direction as Ministers get out there to explain the Coalition Government’s policy programme. While Treasury’s projection of near-term growth near 3% is slightly softer than recent years, this comes as we transition the economy to more sustainable and productive activity and away from property speculation and population growth,” Grant Robertson says.

Joint statement by the Hon Malcolm Turnbull and Rt Hon Jacinda Ardern

Source: New Zealand Government

Headline: Joint statement by the Hon Malcolm Turnbull and Rt Hon Jacinda Ardern

Prime Minister the Hon Malcolm Turnbull MP and Prime Minister the Rt Hon Jacinda Ardern met in Sydney on 2 March 2018 for the annual Australia-New Zealand Leaders’ Meeting. Prime Minister Turnbull and Ms Lucy Turnbull warmly welcomed Prime Minister Ardern and Mr Clarke Gayford to their home.
The Prime Ministers reiterated their commitment to this enduring partnership; there is no closer friendship than that between Australia and New Zealand. They noted these bonds endure not only as a result of our shared history, community ties and region, but draw strongly on the two countries’ shared core values, including our joint commitment to liberal democratic governance, open markets and the rule of law.
The leaders underscored their shared belief that Australia and New Zealand are natural partners in responding to the challenges and opportunities arising from the rapidly changing global environment. They agreed to deepen cooperation to enhance the security and prosperity of Australians, New Zealanders and the region.
Regional and International Trade
The Prime Ministers highlighted their steadfast support for open markets and rejected economic protectionism. Australian and New Zealand citizens continue to prosper from economies that create jobs, deliver opportunities and lower costs for consumers. The Prime Ministers agreed to collaborate in support of an open, rules-based global trading system.
To this end, both leaders reaffirmed their commitment to the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP), expected to be signed this month. They emphasised the CPTPP is the most important contribution to the global rules-based trading order in recent times. It will shape our region’s future economic integration and growth trajectory and provide significant new market access opportunities for our goods and services exporters.
Prime Minister Turnbull and Prime Minister Ardern also emphasised the importance of pursuing an ambitious Regional Comprehensive Economic Partnership (RCEP) Agreement to improve market access and the business environment for Australian and New Zealand exporters to ASEAN, China, India, Japan and Korea.
Trans-Tasman Economic Integration
The Prime Ministers welcomed the progress in reinvigorating the trans-Tasman Single Economic Market (SEM) agenda and reaffirmed Australia and New Zealand’s commitment to broadening and deepening the economic relationship between the two countries. They agreed that finding innovative ways to create a more seamless economic environment is a partnership priority.
Leaders acknowledged the importance of the Australia New Zealand Leadership Forum (ANZLF) to provide insights and innovative business ideas to take forward the SEM agenda. They thanked the senior representatives from the Australian and New Zealand business communities for generously contributing their time and ideas to improve trans-Tasman flows of people, goods and services.
Both countries will capitalise on recent trials looking to improve the trans-Tasman movement of goods and people, such as the successful proof of concept trials of an e-commerce green lane and secure trade lane, and Australia’s removal of outgoing passenger cards. As a result of our joint efforts, we continue to work towards making trans-Tasman travel and trade one of the smoothest pathways for people and business in the world.
Building on this momentum, Australia and New Zealand will also continue to streamline passenger clearance processes through trials such as the reciprocal data-sharing arrangement for cruise passengers.
Leaders welcomed the success of the Australia New Zealand Infrastructure Pipeline (launched in October 2016), which will continue to be a useful mechanism to promote investment opportunities in both countries and attract capital from outside the region. They also welcomed good progress toward the mutual recognition of prequalification criteria for road infrastructure projects, making it easier and more efficient for companies to tender successfully across the Tasman.
Leaders discussed the growth potential that exists within small and medium sized enterprises (SMEs), and agreed to strive for gains for small business under the Single Economic Market agenda. Leaders recognised that the most common leap into exporting for the majority of SMEs in both countries was across the Tasman. They undertook to make that leap as seamless as possible, and commissioned work to identify opportunities for SME exporters to make full use of trans-Tasman economic integration.
The Prime Ministers recognised that the digital economy is the future economy, providing tremendous opportunities for growth and jobs, and connecting people who would otherwise be excluded. It opens up new markets for SMEs and levels the playing field. The Prime Ministers commissioned a review into how Australia and New Zealand can work together to remove barriers to growing the digital economy, both between our countries and into our region, to ensure our two countries are prepared to seize the opportunities arising from the digital transformation of our economies. Both countries will also explore further opportunities to reduce the costs of engaging in e-commerce and digital trade, especially for our SMEs, including through practical action around common approaches to e-invoicing.
The Prime Ministers welcomed the delegation of Australian Indigenous business leaders to New Zealand in January-February 2018 to speak with Maori business leaders and Ministers. The initiative was part of reinvigorating the SEM agenda and was aimed at developing collaboration, trade and investment linkages between Indigenous businesses for mutual benefit. The Prime Ministers welcomed the formation of a new Sector Group on Indigenous business under the ANZLF to increase collaboration on promoting indigenous business.
People and Immigration
The Prime Ministers noted that the Trans-Tasman Travel Arrangement is the cornerstone of the two countries’ economic, social, and cultural integration. New Zealand and Australia remain two of the most connected economies and two of the most successful multicultural societies in the world.      
The Prime Ministers discussed the first eight months of operation of the unique pathway to citizenship for New Zealanders who are long-term residents of Australia, and committed to work closely on ongoing implementation of the policy. More than 8,500 New Zealand citizens have applied for the new permanent residency visa to date, and both Prime Ministers encouraged further applications by eligible New Zealanders.  
Prime Minister Turnbull reconfirmed Australia’s commitment to ensuring the process for visa cancellation and removal of New Zealand citizens on character grounds is conducted as sensitively as possible. Prime Minister Ardern noted the cooperation Australia has provided through information sharing to aid in the management of these cases. The two Prime Ministers noted the importance of decisions and information sharing that lead to successful integration and re-settlement in New Zealand.
Research, Science and Innovation
The Prime Ministers welcomed ratification of the bilateral Science, Research and Innovation Cooperation Agreement in November 2017. They noted the importance of the Treaty in helping Australia and New Zealand work together to develop ideas that will drive new opportunities for our economies and people. They welcomed work underway to strengthen links between science organisations on both sides of the Tasman and cooperation, including joint investment in the Australian Synchrotron to promote high quality research and innovation, addressing chronic disease, and the Satellite-Based Augmentation System trial. The two countries will continue working together to explore avenues to cooperate on genomics in healthcare.
Leaders agreed to establish new trans-Tasman cyber security research collaboration. This will focus on two key areas: ‘post quantum cyber security’ and ‘artificial intelligence for improved cyber security’. The collaboration will include joint research projects, and provide for PhD and researcher exchanges. The Prime Ministers reaffirmed their joint commitment to championing an open, free and secure internet and the important role it will play in the future prosperity of both countries. They agreed to continue regular dialogues on cyber security issues, joint cyber security exercises, and efforts to build cyber security capacity internationally, particularly among Pacific island countries.
Leaders also agreed that Australia and New Zealand, in partnership with relevant organisations, will jointly host a smart and sustainable cities symposium in Australia. This will bring together experts from across the Tasman to investigate initiatives to improve the productivity and liveability of our major cities.
Security and Defence Cooperation
The Prime Ministers reiterated the importance of unity as defence allies in the face of current and emerging regional and global threats, including to the international rules-based order. They looked forward to their Defence Ministers reaffirming their enduring commitment to close defence and security cooperation, and agreed that the interoperability of our defence forces is important to maintaining security in our region and more broadly.
Both leaders committed to continue to work together to counter people smuggling and trafficking of persons in our region, particularly through the Bali Process. The leaders noted that regional cooperation was essential in disrupting the harmful people smuggling trade, as it puts vulnerable peoples’ lives at risk and enriches criminal networks.
Prime Minister Ardern and Prime Minister Turnbull also exchanged views on domestic security and the threat of foreign interference. Both leaders noted the need to remain vigilant in the face of this threat and resolved that Australia and New Zealand would actively share information, cooperate, and jointly work to defend the integrity of our democratic institutions.
The two leaders agreed to build on the substantial collaboration and information sharing between the two Governments to combat terrorism and counter violent extremism. The terrorism threat in Southeast Asia, particularly the Philippines, is acute. Both countries reaffirmed their commitment to work closely together and with regional partners, including on managing the return of foreign fighters.
Prime Ministers Ardern and Turnbull shared their grave concerns over the illegal, dangerous and increasingly defiant actions of North Korea. North Korea’s actions violate successive United Nations Security Council resolutions and pose a grave threat to regional and global security. Leaders agreed on the importance of rigorously enforcing sanctions against the regime. Australia and New Zealand are committed to working with the international community to apply maximum pressure on North Korea to bring it back to denuclearisation negotiations.
The two leaders remained concerned about the situation in the South China Sea, including land reclamation, and the ongoing construction and militarisation of disputed features. The Prime Ministers called on the parties to avoid unilateral actions that change the status quo, erode trust, and undermine efforts to manage tensions. The leaders also reiterated the importance of freedom of navigation and overflight, and resolving maritime disputes peacefully through full respect for legal and diplomatic processes and in accordance with international law, including the United Nations Convention on the Law of the Sea (UNCLOS). They acknowledged work towards a Code of Conduct for the South China Sea and supported early conclusion of an effective Code of Conduct, consistent with international law.
The leaders discussed the protracted conflict in Syria and underlined that only a negotiated political solution in Syria could provide lasting peace. The Prime Ministers recognised the valuable work of the joint Australia-New Zealand Building Partner Capacity mission in Iraq, which has provided training to more than 30,000 Iraqi soldiers and police to help Iraq to combat Daesh and secure its country and people.
Cooperation in the Pacific
Prime Ministers Ardern and Turnbull agreed that the stability, security, well-being, and economic prosperity of Pacific island countries was of fundamental importance to both Australia and New Zealand. Noting her Foreign Minister’s speech the previous day foreshadowing New Zealand’s own re-energised approach to the Pacific, Prime Minister Ardern welcomed the Australian Government’s commitment in its 2017 Foreign Policy White Paper to step up Australia’s engagement in the region. The leaders resolved to strengthen their already close partnerships with Pacific island countries to address the region’s unique challenges. They highlighted the need as responsible, enduring partners to support the Pacific Islands Forum and other regional institutions to respond to existing and emerging economic and security challenges.
As the region’s major economic partners, leaders agreed on the need to promote the conditions for regional economic growth to support opportunity, stability and security in the Pacific. They welcomed the signing of the Pacific Agreement on Closer Economic Relations Plus (PACER Plus) trade and development agreement by eleven countries as a means to create closer regional economic integration and drive economic activity, and reaffirmed their commitment to support Pacific island signatories to implement the agreement.
The Prime Ministers agreed on the importance of labour mobility to provide new work opportunities, skills development and flows of remittances in the region and welcomed the inauguration of a Pacific Labour Mobility Annual Meeting to facilitate regional collaboration amongst signatories. In this light, Prime Minister Ardern noted the recent increase in New Zealand’s Recognised Seasonal Employer (RSE) scheme and new labour mobility initiatives under way and welcomed the announcement in 2017 of Australia’s new Pacific Labour Scheme. Both countries will increase collaboration and coordination on the implementation of their respective labour mobility schemes to ensure these bring maximum benefit to participating countries. The Prime Ministers also agreed to maintain the momentum of work being done jointly by the two countries to reduce the cost of remittances in the Pacific.
Australia and New Zealand will also work with Pacific partners to respond to the distinct security challenges of the region. The Prime Ministers welcomed the decision of leaders at the Pacific Islands Forum last September to negotiate a new ‘Biketawa Plus’ regional security declaration that will improve the ability of the region to tackle emerging security challenges, such as climate change, transnational crime, cyber threats and illegal fishing. Prime Minister Ardern welcomed Australia’s initiative to establish an Australia Pacific Security College (APSC). Both countries are agreed on the objective of building the capacity of law enforcement, border protection and intelligence agencies within partner governments in the region to respond to transnational crime, identity fraud, and other security threats.
The Prime Ministers agreed on the importance of Australia and New Zealand, as the region’s largest security contributors, strengthening cooperation on regional maritime security. Prime Ministers acknowledged Australia’s $2 billion Pacific Maritime Security Program. They asked their Defence Ministers to investigate ways to better coordinate support to regional maritime surveillance operations and to Pacific nations as they transition to the new Guardian-class patrol boats. They welcomed the condemnation at September’s Pacific Islands Forum of North Korean provocations and also welcomed the Pacific leaders’ agreement to identify and de-register North Korean vessels operating under Pacific flags in order to evade UN sanctions. The Prime Ministers highlighted the cooperation of both countries to help Pacific partners to implement this commitment.
The Prime Ministers discussed the unique vulnerability of the Pacific to impacts of climate change and natural disasters, and agreed to continue to work together and with partners to implement the Paris Agreement. Noting successful cooperation to date, Australia and New Zealand will continue to support the region’s climate change mitigation, adaptation, and disaster risk reduction strategies. This includes supporting the region’s access to clean energy and climate finance, including through our respective development assistance programmes and support for mechanisms such as the Green Climate Fund. The Prime Ministers reaffirmed the role of Australia and New Zealand as first responders for humanitarian and disaster relief in the Pacific, as recently demonstrated in the response to Tropical Cyclone Gita.
The leaders discussed the upcoming APEC meetings to be hosted by PNG, and welcomed PNG’s thematic focus on the digital economy. They agreed to continue to coordinate their security support to PNG for its host year. The Prime Ministers discussed common priorities in multilateral fora, recognising the responsibility of Australia, as a G20 member, to take into account the interests of its neighbours.

New Zealand signs Working Holiday Scheme with Portugal

Source: New Zealand Government

Headline: New Zealand signs Working Holiday Scheme with Portugal

Young New Zealanders will soon be able to set their sights on Portugal to live, work and play.
Immigration Minister Iain Lees-Galloway has announced that up to 50 young New Zealanders a year will be able to live and work in Portugal for up to 12 months.
The announcement follows the signing today of a reciprocal working holiday scheme, during the visit to New Zealand of the Secretary of State for Portuguese Communities Abroad, H.E. José Luís Carneiro.
Mr Lees-Galloway says today’s announcement provides a great opportunity for young Kiwis to broaden their horizons, and for young Portuguese people to enjoy New Zealand’s warm hospitality and incredible environments.
“Portugal is an important partner for New Zealand on a wide range of international issues, and a strong supporter of the effective rules-based international system that underpins our security and prosperity,” he says.  
“It’s important that our political relationship is complemented by strong links between our people, and especially our young people.  The new working holiday scheme will help to strengthen these links, and to deepen the relationship between New Zealand and Portugal still further over the years to come.”
The Portugal-New Zealand working holiday scheme will be open from 20 March 2018 to people between 18 and 30 years old.  New Zealanders wishing to apply should email vistos@mne.pt or contact the Portuguese Embassy in Canberra (or, if living offshore, the Portuguese Embassy in their country of residence).

New appointment to Reserve Bank Board

Source: New Zealand Government

Headline: New appointment to Reserve Bank Board

Dr Chris Eichbaum has been appointed to the Board of the Reserve Bank of New Zealand, Finance Minister Grant Robertson says.
Dr Eichbaum is currently a Reader in Government at the Victoria University School of Government and Associate Dean in the Victoria University Business School. He holds a Doctor of Philosophy in Public Policy and has published on topics including public policy and central banking.
He previously served on the Reserve Bank of New Zealand Board between 2008 and 2013. His current appointment is for a five-year term, in accordance with the Reserve Bank Act. Dr Eichbaum’s previous roles include a number of positions at Victoria University and in Government.
“Dr Eichbaum brings his experience as a previous Board member at a critical time of change. His understanding of public policy and the place of monetary policy in that context will also be very helpful as the review of the Reserve Bank Act progresses,” Grant Robertson says.
Reserve Bank chairman Professor Neil Quigley welcomed Dr Eichbaum back to the Board. “It will be invaluable having someone with Chris’ previous experience as we go through the review, including looking at the role of the Board itself,” Neil Quigley says.
Dr Eichbaum’s appointment fills the vacancy left by Rod Carr’s retirement from the board in 2017.

New High Commissioner to Tonga announced

Source: New Zealand Government

Headline: New High Commissioner to Tonga announced

Foreign Affairs Minister Winston Peters today announced diplomat Tiffany Babington as New Zealand’s new High Commissioner to Tonga.
“New Zealand has a strong relationship with Tonga, based on a population of more than 60,000 Tongans resident in New Zealand, development cooperation and our shared interest in regional issues,” says Mr Peters.
“Cooperation between our countries has been clearly demonstrated in recent days with our support to the Tongan Government following Tropical Cyclone Gita.
“Ms Babington will lead the delivery of New Zealand’s Official Development Assistance programme in Tonga, helping to oversee $66 million of investment over three years focused on energy, policing, justice and education.”
Ms Babington has previously been posted to Vanuatu and Italy, and worked on global development, Pacific regional, Niue and Tokelau issues.
ENDS
Contact: Alex Masters, Press Secretary, 021 809 186

New factsheets show extent of crisis in regions

Source: New Zealand Government

Headline: New factsheets show extent of crisis in regions

New regional factsheets being published for the first time today show the housing crisis is not just an issue for Auckland but is now a challenge for our regions, Housing and Urban Development Minister Phil Twyford says.
Factsheets for 11 regions are now available on the Ministry of Social Development website and contain the latest data – including regionally-specific public housing supply figures, government support, transitional housing and numbers on the public housing waiting list – from the December 2017 quarter.
“The Labour-led Government isn’t shying away from the housing challenges our regions face. We want the public to understand the extent of these issues,” Phil Twyford says.
“This data gives the regions the information they need to work with central government on solutions to increase the supply of housing in their areas.
“This information is critical for the Government to understand what is happening at the grass roots level. We know what is happening at a national and main centres level, Auckland especially, but these factsheets shed new light on what is happening in heartland New Zealand in places like Northland, East Coast, Bay of Plenty and Canterbury.
“Everyone – no matter where they live – should have a warm, dry, safe home. Solving the national housing crisis is a massive task and one we are rolling up our sleeves and getting on with.
“This is why last week I announced the first tranche of up to 155 new state houses to be built in the regions by the middle of this year. And there will be more to come,” Phil Twyford says.

NZ supporting resilience of Niue infrastructure and renewable energy

Source: New Zealand Government

Headline: NZ supporting resilience of Niue infrastructure and renewable energy

Infrastructure and renewable energy programmes are getting support today as Prime Minister Jacinda Ardern announces a package to improve water and roading infrastructure on Niue and further develop renewable energy generation.
“Niue’s remoteness and susceptibility to extreme weather make high quality and resilient infrastructure very important for visitors and the local population of Niue,” says Prime Minister Jacinda Arden.
“New Zealand will invest $750,000 to make immediate improvements to Niue’s roads and water network ahead of the 2018 tourism season. We have also undertaken to carry out an assessment of Niue’s long-term water infrastructure needs to safeguard the resilience of the network.
“We will provide a further $5 million to support the development of solar energy generation in Niue. This builds on the $5 million we have already provided and will help Niue meet its renewable energy target of 80 per cent by 2025.
“Achieving this target will create annual savings of close to $1 million for the Government of Niue, which can be applied to other development priorities such as health, education and other public services,” Ms Ardern said.
Niue and New Zealand share a close relationship built on shared citizenship and our unique constitutional arrangements.
Large increases in tourism numbers have been a major success story for Niue’s economy but they have also placed major demands on the atolls roads and water supply.
The Prime Minister is currently in Niue leading the 2018 Pacific Mission.

HMNZS Te Kaha arrives in Canada for major systems upgrade

Source: New Zealand Government

Headline: HMNZS Te Kaha arrives in Canada for major systems upgrade

Minister of Defence Ron Mark announced today the arrival of HMNZS Te Kaha in Canada, where a major upgrade of its sensor and weapons systems will be undertaken.
Focused on the frigates’ surveillance, combat and self-defence capabilities, this upgrade is the latest in a series of projects that will extend the vessels’ operational life to around 2030. Earlier projects delivered a refit of the frigates’ propulsion, heating and air-conditioning systems, and the close-in weapon system. 
“There is a significant programme of work to upgrade or replace New Zealand’s defence equipment that aims to maintain the safety of our military personnel and the country’s ability and readiness to deploy when needed, both in this country and overseas,” says Mr Mark.
An additional $148 million was approved by Cabinet to ensure the upgrade could proceed, bringing the total project budget to $639 million. To fund the cost overrun, and consistent with the Coalition’s commitment to fiscal prudence, Cabinet agreed to reallocate a portion of the money that was provisioned in Budget 2017 for the Littoral Operations Support Capability project.
“The Government’s decision reflects the value placed on our frigates and their ability to operate across and support a wide range of operations.
“In the time the frigates have been operational New Zealanders have come to expect their involvement in constabulary and humanitarian, to combat roles as part of a multinational coalition. These contributions are valued by our international partners.”
When completed, the frigate will have updated equipment and systems including the combat management system, radar and underwater sonar.
Following an international tendering process, the contract for the work was awarded to Lockheed Martin Canada. The company’s design for the systems upgrade of 12 Royal Canadian Navy Halifax Class frigates has been adapted for use in New Zealand’s vessels.
“New Zealand and Canada have a close and enduring partnership based on shared history and common interests. Our cooperation on the Frigate System Upgrade is a demonstration of the maturity of our bilateral relationship, which continues to strengthen in 2018,” says Mr Mark.
The 25-day passage to Esquimalt in British Columbia, where the upgrade will take place, was marked by a brief port visit in Hawaii’s Pearl Harbor where Te Kaha and her crew represented New Zealand as part of the United States’ commemoration of Presidents’ Day.
For the final leg of the voyage, the crew was supplemented by a group of 10 Royal Canadian Naval Reserve personnel who had an opportunity to experience working life on board the frigate.
The upgrade of the second frigate, HMNZS Te Mana, is scheduled to take place in 2019.

Insurance contract law review starts

Source: New Zealand Government

Headline: Insurance contract law review starts

Commerce and Consumer Affairs Minister Kris Faafoi has today released the terms of reference for a review of New Zealand insurance contract law.
 “Insurance plays an important role in the lives of New Zealanders, helping people cope with unforeseen life events and providing businesses with greater certainty.
 “But there are significant problems with New Zealand’s insurance contract law which are undermining the effectiveness of our insurance markets and impacting those who do not receive the support they anticipated from their insurance policies.
 “I have heard, for example, that consumers are sometimes not covered for losses or unable to claim for important needs like health treatment because they innocently did not disclose seemingly unrelated matters to the insurer.
 “This is really tough for people who genuinely believe they have met their requirements and are later unable to rely on benefits of insurance. So onerous disclosure requirements are one of the issues I am keen to look at.”
 Mr Faafoi says the review will also consider whether there is a case for greater regulation and supervision of insurer’s conduct. The International Monetary Fund has identified that New Zealand has room for improvement in this area.
 “Insurance contract law has been significantly updated in comparable markets including Australia and the UK, so this work is long overdue,” Mr Faafoi says.
 “Reform is needed so that all New Zealanders have the protection of a well-functioning insurance market. The sector has been supportive of the need for a review so I am optimistic that stakeholders will be involved in order to make good progress swiftly.”
 The terms of reference outline the review’s scope, process and an indicative timeline.
 “I see this as an important piece of work so I am asking officials to move this forward quickly. With Cabinet approval I hope to release an issues paper for public consultation in mid-2018. If I find that change is warranted I’ll be working towards introducing legislation in the current Parliamentary term,” says Mr Faafoi.
 More information on the review of insurance contract law is available here.