Appendix One: Sector Studies Process & Areas of Concern
Methodology
It was expected that a deeper understanding of how regulations (and the interaction of regulatory requirements) impact on business would be gained through engagement with firms. The studies were not intended to be comprehensive, or to include a completely representative sample of firms. Rather it was expected that after interviewing 136 firms of varying sizes from Auckland to Southland, it would be possible to draw lessons and develop general solutions.
The key industry organisations in each of the four sectors proposed a selection of businesses, on the basis of their ability to provide information on regulatory concerns and proposed solutions. Officials contacted potential interviewees, and conducted the interviews. The interviews were designed to ensure active engagement; officials were present for the purpose of seeking information, not to defend or rebut concerns or solutions. Each interviewee was sent a written summary of the notes. This gave them an opportunity to confirm that the record of the interview was correct, and to provide rewording or additional information. Next, the government departments responsible for the areas to which each issue related were sent a list of relevant issues. Departments then considered the issues and provided responses.
Areas of concern
A range of regulatory frameworks apply across the four sectors. It should be noted that some issues raised were outside the scope of the Review because they relate to underlying policy. These include some issues relating to the provisions of the Employment Relations, Holidays, Gambling, Customs and Excise, and Tax Acts.
All four sectors raised concern about;
- accident compensation scheme administration;
- the Building Act;
- the Employment Relations Act;
- food safety;
- health and safety;
- the Holidays Act;
- immigration;
- local government;
- the Resource Management Act;
- statistical surveys; and
- tax.
It became evident that some areas of particular concern were common across the studies. For example, the Holidays Act received a great deal of criticism due to its perceived complexity and generic approach (although it should be noted that it was subject to a number of conflicting views). Implementation of regulations such as the Resource Management and Building Acts, which enabled a degree of local flexibility, raised the concern about balancing local flexibility versus the desire for national consistency. Examples of areas of particular concern for certain sectors are noted below.
Employment matters: Employment issues were raised in all four studies. Many interviewees indicated support for added flexibility to dismiss staff in probationary periods, and criticised the paperwork associated with employment agreements. The view that disputes processes are biased in favour of employees was often expressed by retail and hospitality interviewees, but this remains anecdotal and has not been substantiated in the research the Department of Labour has undertaken. Requirements to do with part-time and seasonal workers, including calculating leave and statutory holiday payments, were common to all sectors. Immigration enforcement, noting that the immigration status of contract workers is often not clear to employers, was a particular concern to the wine and horticulture sectors.
Liquor licensing: Concerns were raised in most of the sectors. A particular focus was on the number of licences and renewals required, the training required, the expensive and out-dated requirement to advertise licence renewals, and the one size fits all approach.
Hospitality interviewees had concerns about special licence requirements.
Wine interviewees were more concerned with the lack of a risk-based approach to different types of businesses, and the lack of a distinction between new applicants and established licence-holders with good records.
Retail interviewees noted the onerousness of the regulation required to sell alcohol, and expressed concern and confusion around the required physical location of the licensee during trading hours.
The Hazardous Substances and New Organisms Act (HSNO): Concerns about the complexity and impracticality of the information communicated about HSNO requirements were expressed in the horticulture, retail and wine sectors.
Excise: Excise was the most frequently mentioned issue in the wine sector interviews. A particular concern was the indexation to the Consumer Price Index, though this was a move that was introduced by the government to respond to demands for more certainty to the way the rates would be determined. Some interviewees criticised the fact that excise puts the collection onus on wineries rather than at the point of consumption. The calculation and payment process is seen as laborious. Furthermore, for many wineries the excise payment date comes before they have been paid for the wine by customers.
Gambling: Hospitality sector interviewees raised a range of concerns about gambling requirements. Problem gambling training was seen as disproportionately expensive and time-consuming, and not a solution to difficulties in identifying and approaching potential problem gamblers. The sheer number of rules, including gaming machine auditing requirements, were noted. Interviewees also identified a perceived lack of a level playing field across the sub-sectors of the gambling industry.
Retail consumers: Retail sector interviewees indicated that there is a lack of clarity in some areas, such as the Consumer Guarantees Act. They also noted inconsistencies between the Sale of Liquor Act, Holidays Act and Shop Trading Hours Act.
Biosecurity: Horticulture and wine interviewees shared concerns over the perceived inflexibility and inconsistency of New Zealand's biosecurity processes.
Wheelchair access: Some retail and hospitality interviewees stated that wheelchair accessibility requirements are excessive and often imposed inconsistently or in some cases provide little benefit as it was unlikely that a person in a wheelchair would be able to access the area.
Forklift licences: Wine and horticulture interviewees noted confusion about the licence renewal requirements for forklift operators. There was also a feeling that forklift licences are unnecessarily singled out as different from other licences.
Provisional tax: Grape growers identified a particular problem with provisional tax, given the difficulty of predicting the size of a harvest months in advance.
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