About

The GTAC governs the terms of access to the high pressure North Island gas transmission pipeline systems owned by First Gas Limited, previously known as the Vector and Maui pipelines.  Access to these pipelines has since the early 2000s been governed by separate industry codes.  This separation has created operational inefficiencies particularly around capacity reservations, offtake management, gas balancing, reconciliation and liability for non‑specification gas, amongst others.  With the pipelines now under common ownership has come the opportunity for a rationalisation and reset in accordance with the Gas Act objectives.

Gas Industry Co’s sanction of the new GTAC as “materially better” than the existing codes, comes after a lengthy period of engagement, consultation and extensive debate between different sectoral levels.  The industry is presently engaged in IT systems and implementation processes.

The new building has been designed by Warren and Mahoney and is a nod to the historic built fabric of the area, while providing for a new iconic and forward looking landmark to invite residents and visitors in to the inner city.

Along with 80 guest suites, the development includes a restaurant, café, bars and a function room to create a thriving space for both guests and local residents alike to assist in the on-going rejuvenation of Invercargill, helping to achieve a key purpose of the Southland Regional Development Strategy.

Given the historic nature of the inner city, a key element of the project was ensuring that the overall heritage values of the previous corner building on the site were retained in the wider Invercargill. This was achieved through volunteered resource consent conditions, including the establishment of a public heritage fund to assist with the upkeep of other Invercargill heritage buildings. Also included was a condition that the new hotel name pays homage to the history of the site. A public competition is now underway to choose a name that reflects the heritage of the area. Entries can be made by emailing newhotel@ilt.co.nz or submitting entries via the Invercargill Licencing Trust facebook page.

The Central Interceptor is a wastewater tunnel that will run between Western Springs and the Mangere Wastewater Treatment Plant. The tunnel will run underground for 13 kilometres and will be at a depth of between 22 and 110 metres.  Along the route it will connect to Watercare's existing wastewater network, which will divert flows and overflows into the tunnel.

Hadleigh Yonge is leading Greenwood Roche’s team which is advising Watercare on various aspects of this project, including providing strategic advice, negotiating and acquiring property rights, and advising on and dealing with issues relating to compensation.

Greenwood Roche has assisted Otakaro with various property aspects relating to the Convention Centre.

The initiatives comprise the introduction of the shared electric car fleet with Yoogo, a proposed public bike share system, and Lime’s e-scooters.

Christchurch City Council has partnered with a range of leading public and private sector organisations with a view to promoting the physical health of its residents, reducing the negative impacts that traditional transport options have on the environment, and reducing the number of cars on Christchurch roads.

Greenwood Roche’s team, led by James Riddoch, worked with Christchurch City Council to prepare the legal framework to support these projects, including advising Council on procurement matters, negotiating the commercial terms with the suppliers, and advising Council in relation to the required permits to allow these businesses to operate in the city.

Watercare is working with various interested parties to deliver improved wastewater services to enable the Redhills area to be extensively developed with the introduction of close to 10,000 residential properties.

Hadleigh Yonge is leading Greenwood Roche’s team which is advising Watercare on aspects of this project, including providing strategic advice, negotiating and acquiring property rights, and advising on and negotiating infrastructure funding agreements.

Canterbury Cricket Trust have advised Hagley Oval’s current resource consent conditions make it costly and difficult for Hagley Oval to host large international fixtures, in particular day-night matches that are now required by top-tier teams. As a result, Hagley Oval is less competitive when bidding for games compared to its rival cricket grounds.  With the Women’s Cricket World Cup approaching in 2021, the changes in the proposal will need to be approved by the Minister in order for Christchurch City to be able to bid for and host top-tier games. Bids for the upcoming Woman’s Cricket Work Cup close on 20 December 2019.

The proposal provided to the Minister seeks to amend the Christchurch District Plan through section 71 of the Greater Christchurch Regeneration Act 2016 (GCR Act). The proposal seeks to incorporate the current resource consent conditions into the Plan and to amend certain aspects of those conditions, including:

• Amending the current condition to increase the four, retractable light towers to allow six permanent light towers to meet international broadcast standards.
• Allow more lenient pack in and out timeframes for temporary facilities associated with hosting cricket matches; to improve health and safety and limit damage to the Oval grounds.
• Increasing the number of fixtures allowed per season, including an allowance for hosting International Cricket Council events on years that they occur.

This area is significant in many ways for Christchurch/Otautahi.  It has been and continues to be an area comprising sites and geographical features of cultural importance to Te Runanga o Ngai Tahu and Te Ngai Tuahuriri Runanga.  The area also comprises various other sites of historical significance to Christchurch/Otautahi and is traversed by the Otakaro Avon River which is itself a key feature of the city’s identity and urban framework. In developing this Plan Regenerate Christchurch has therefore sought to acknowledge the significance of this area to the wider Christchurch/Otautahi community, as well as working with the environmental constraints and opportunities that it provides.  
 
The process has taken time and has not been without its challenges – the size and geographical constraints of the area, the various interests and feedback from stakeholders, community groups and members of the public, and the uncertainties particularly around future implementation have all been matters to carefully consider and address.  The Plan’s vision and objectives and the accompanying framework for the Area are broad.  While they have strong focus areas (including ecology, recreation, economic opportunity and community connection), they also seek to recognise that the regeneration of this Area will take time, and that new ideas, new technology and new activities which are not currently contemplated should be allowed to take place.  The vision and objectives therefore operate as a touchstone against which future decisions can be made – ensuring a clear aspiration for the area while still allowing flexibility to adjust to a changing future. 
 
The approval of the Plan by the Minister (and the Ombudsman’s recent finding as to its legal and evidential rigour) is a significant endorsement of the work done by the Regenerate Christchurch team on this project.   Greenwood Roche lawyers, Lauren Semple and Rachel Murdoch have been privileged to advise Regenerate Christchurch on the development of this Plan, the exercise of its powers under the Act in respect of this and other projects, and its general regeneration mandate.  It is extremely satisfying to see the Plan become operative and attention now turn to its implementation. 

Due to technical issues we have been unable to use macrons in this article - we are working with our website providers to remedy this.

Climate change is arguably one of the most pressing threats to the planet.  According to the United Nations, climate change “is the defining issue of our time and we are at a defining moment”. 
 
The Kyoto Protocol requires its members to monitor their actual greenhouse gas emissions and precise records of trades have to be kept.  It has set the framework for numerous policy, legislative and environmental initiatives.  New Zealand has the unique opportunity of playing its part in reducing greenhouse gas emissions through forestry.  Forestry exports are worth around $5 billion a year and forestry directly employs approximately 20,000 people.  It is a crucial part of our climate change response.
 
With that in mind, it is imperative that New Zealand implement a sufficient, robust and effective Emissions Trading Scheme (ETS).  On 31 July 2019, improvements to the ETS regulations were announced to reach that goal.  An Amendment Bill to the Climate Change Response Act 2002 will be introduced to Parliament later this year.  Four changes in this Amendment Bill are worth noting:
 

1. the introduction of “averaging accounting” for foresters;
2. the reduction of free allocation to major industrial emitters;
3. the cancellation and replacement of units from the first commitment period of the Kyoto Protocol; and
4. the introduction of a “stand down period”.

In response to a complaint, the Chief Ombudsman’s opinion confirms that Regenerate Christchurch acted lawfully and in an administratively reasonable manner in the development of the draft plan.  The draft plan is currently with the Minister for Greater Christchurch Regeneration for her approval or decline. For more information and to review the case note please click here.

While there were a number of suggestions made, the draft report found the current framework is broadly sound. The Commission Chair stated “The current framework measures up well against the principles of a good funding and financing system for local government. It is clearly separated from the central government’s tax base which is an important feature. It is relatively simple and economically efficient. It also provides a high degree of flexibility for councils to shape how they raise their revenue.”
 
Existing tools
The report notes that councils can make better use of the tools they already have access to, and there is room to improve organisation performance, transparency and decision making that will help to relieve cost pressures. These existing tools include rates, fees are user charges, development contributions, central government funding and debt.
 
The Commission favours the “benefit principle” as the primary basis for deciding who should pay for local government services. Those who benefit from a service should pay for its costs. Additionally, where local services benefit national interests, central government should contribute. User charges or targeted rates should also be utilised.
 
The Commission found that there is no clear evidence that rates have become less affordable over time, despite this being one of the key reasons the inquiry was undertaken. Overall, rates have continued to broadly align with population and income growth over the past 3 decades, but have not become relatively more burdensome.
 
Cost pressures and new tools
The report noted some new tools are needed to help councils deal with some specific cost pressures. The highest priority pressures have been identified as:
 

• Supply of infrastructure to support rapid urban growth: the failure of high growth councils to supply enough infrastructure to meet demand is a serious social and economic problem.
• New tools: special purpose vehicles; central government funding; tax on vacant land; volumetric charging of wastewater; road congestion pricing; and value capture for property owners who enjoy “windfall gains”.

• Climate change: rising sea levels and more intensive rain events threaten infrastructure, particularly roads and waste / storm water infrastructure. These risks are large and unevenly distributed across the country.
• New Tools: Extended NZTA model; Local Government Resilience Fund and Agency; and more national leadership in developing and providing high-quality and consistent data, information, guidance and legal frameworks.

• Tourism: the increasing number in tourists has led to pressure on several types of services and infrastructure in districts that are popular tourist destinations. Tourists are using mixed-use facilities without making a direct contribution.
• New Tools: A tourist accommodation levy; and provide local councils with a share in the new international tourist border levy.

• New standards and requirements from central government: e.g. meeting health and environmental standards in the three waters sector is a major challenge for many councils, and the Commission makes the case for significant reform of the sector.
• New tools: development of a “Partners in Regulation” protocol to improve the state of relations between central and local government.

Summary
The establishment of Te Waihanga – New Zealand Infrastructure Commission as a Crown entity is one of the more significant actions taken by the Government towards addressing the major infrastructure deficit in New Zealand, and the existing challenges with the planning, co-ordinating and delivery of infrastructure projects which have contributed to New Zealand’s current position.  Taking lead from similar initiatives in Australia, the UK and elsewhere, the Commission will provide strategic oversight and leadership over the way in which infrastructure projects are planned, co-ordinated and procured.  Critically, its functions are advisory only.  Any decision-making regarding infrastructure projects (including investment in those projects, or the timing for or manner in which they are procured and delivered) will remain with the relevant Ministers/departments.  

Specifics
Under the bill, Te Waihanga would be established as an autonomous Crown entity, governed by a board of up to 7 members.  The entity will largely take shape from the existing Infrastructure Transactions Unit currently within Treasury which will be incorporated into Te Waihanga once it is established (anticipated for October 2019).

The overarching function of the Commission is to co-ordinate, develop, and promote an approach to infrastructure and resulting services that improve the well-being of New Zealanders.  The bill authorises the Commission to carry out that function through two main ways:

b. Providing advice on infrastructure including the current state of infrastructure, current and future infrastructure needs, infrastructure priorities, and matters which may prevent the effective delivery of infrastructure.

a. Promoting a strategic and coordinated approach to the delivery of infrastructure projects;

c. Providing support services to those projects, including advice, services or staff to assist in the delivery of a project.

While not specifically included as a provision in the bill, the explanatory note identifies that Te Waihanga would be empowered to, and will be expected to, promote best practice infrastructure delivery as part of its supporting function.  To that end, it is expected that the Commission will:

e.  Publish a pipeline identifying existing and upcoming infrastructure projects (the first of these can be accessed on the Treasury website);

f.  Produce best practice guidance on infrastructure procurement and delivery.  This function will be part of its role as the “centre of expertise to assist infrastructure projects to be delivered efficiently and effectively”.  To that end, where requested by the relevant department/Minister, the Commission will also provide advice on business cases for proposed projects. 

In support of its functions (and in addition to its general powers as a Crown entity), the bill both grants powers to, and imposes obligations on, the Commission, including:

• The requirement to publish a strategy report setting out the Commission’s views on the ability for existing infrastructure to meet community expectations over the next 30 years, and the priorities for infrastructure over that same time period.  The report (which will be issued at least once every five years) may also include any other matter the Commission considers relevant.  The Minister for Infrastructure has the opportunity to comment on the report before it is finalised, but once finalised, the Government will then be required to provide a formal response to it which must be made public.
• The Minister may also direct the Commission to provide a report on any matter relating to infrastructure.
• Where necessary and desirable to enable the performance of its functions, the Commission is also empowered to require the provision of specific information from specified government departments, agencies, statutory entities and the New Zealand Defence Force. 

Comment
This proposal has generally received strong support and input from industry and experts within both the public and private sector, and represents a critical step towards a more informed, strategic and coherent approach to infrastructure planning, procurement and delivery.  Perhaps the biggest potential shortcoming is the general lack of any strong levers which would at least encourage action/compliance by other government departments with the advice of the Commission.  For example, while the Government would be required to issue a response to the Commission’s strategy reports, government departments are not obliged to consider the findings of the reports in reaching any decisions relating to procurement or planning of capital projects, nor consult with the Commission.  Consequently, to successfully effect change at the decision making level, the Commission will need to build a narrative around the positive impacts of sound planning and procurement, and the role that it can play in supporting other departments in achieving those outcomes.  Even if it is able to do so, there is still the risk that the Commission could be sidelined.

Among the options to mitigate this risk, there is the opportunity to expand the Commission’s mandate to include monitoring and reporting on the Government’s progress in addressing New Zealand’s infrastructure challenges.  While under the current proposal it would be required to provide “state of the nation” assessments, there is no explicit directive to undertake on-going monitoring of how the Government is responding to the findings of the Commission’s assessments, including how it is addressing identified constraints on the effective delivery of infrastructure.  Expanding the Commission’s mandate to include monitoring and reporting on the Government’s response to the identified challenges and opportunities (which would also, as a first step, require the development of some form of metric) would strengthen the Commission’s ability to keep the Government accountable for effecting improvements in the planning, procurement and delivery of infrastructure.

For further information on the Commission or if you are interested in receiving further updates on this matter, please do not hesitate to contact us.