New Zealand
Review
of New Zealand Minerals Royalty Regime
In a report to the NZ Ministry of
Economic Development, ACIL Tasman reviews the ad
valorem component of a proposed new royalty regime
as it would apply to new coal, gold, silver or platinum
mines. The primary objectives of the Ministry are
to deliver a new royalty regime that is equitable
and simplified compared to the existing regime.
ACIL Tasman’s report:
• assesses the proposed new regime
against the old regime in terms of
– the maintenance of a comparable return to the
Crown and, correspondingly, the maintenance of comparable
returns to miners
– the incentive to continue to invest in exploration
for and production of precious minerals and coal
– the implications for the level of compensation
paid to landowners under access agreements
– the minimisation of transactions costs, including
the degree of simplicity and costs of compliance;
and
• assesses the proposed new regime in terms of its
international competitiveness with those that apply
in similar circumstances in Western Australia, Queensland,
NSW and Alberta.
Electricity Generation from
Renewable Sources
In this Report to the NZ Greenhouse
Policy Coalition, ACIL Tasman examines the options
to provide incentives to renewables electricity
projects that are not cost-competitive, with the
objective being to minimise the costs to the New
Zealand economy that such incentive would create.
The options that minimise an increase in electricity
prices paid by consumers, or taxes paid by taxpayers,
are the options that will cause least damage to
the economy.
In order to determine which renewables
projects might not be cost-competitive, ACIL Tasman
draws on existing published material from the Ministry
of Economic Development and the Electricity Commission.
Although new data on capital costs is emerging,
ACIL Tasman concludes that:
• provided unnecessary impediments
to the approval of projects are removed, there may
be no need to give financial incentives to encourage
investment in renewables electricity capacity before
about 2015; and
• unless the impediments are removed, any subsidy
scheme that might be considered for beyond 2015,
or now for that matter, will be ineffective.
NZ cervical cancer screening
evaluation
ACIL Tasman
along with the Cancer Council of NSW and the National
Centre for Epidemiology and Population Health are
currently involved in an evaluation of New Zealand’s
cervical cancer screening programme. This work includes
a cost-effectiveness evaluation and was commissioned
by the NZ Ministry of Health. The project involves
Markov modelling calibrated to the local population.
Water
Markets 2004
ACIL Tasman
prepared a report for Meridien Energy on Australia's
experience with the development of water markets.
The report assisted in debate about competing agricultural
and hydro demands for water in the Waituki basin,
South Island.
New
Zealand – Australia Economic Interdependence, New
Zealand Ministry of Economic Development, 2004
ACIL Tasman
and a New Zealand consulting firm drew on interviews
with over 40 companies in Australia and New Zealand
to report on the nature of business integration
and interdependence between the two countries. It
was found that trade liberalisation in the early
1980s, combined with better and low-cost transport
and communications, had led to more complex, effective
and dynamic types of business connection than in
the past. Existing integration has driven deeper
integration and produced significant spillover effects.
The study identified a number of lessons for all
Australian and New Zealand firms contemplating activity
in the other country and a number of government
policy changes that would reduce barriers to trans
Tasman business. New Zealand Ministry of Economic
Development.
Review of the New Zealand
Gas Sector
ACIL Tasman, assisted by Farrier Swier
Consulting, and Indepen (UK), has prepared a major
review of the NZ gas sector. Issues include economic
efficiency, inter-fuel competition, barriers to
entry, environmental externalities, asset valuation,
multi-utilities, the regulatory regime, and the
impacts of the present take-or-pay contracts. The
report is available on the Ministry's website.
Economic Regulation of New
Zealand Electricity Lines Businesses
ACIL Tasman, assisted by Farrier Swier
Consulting, and Indepen (UK), designed a regime
for targeted economic regulation of NZ electricity
transmission and distribution. This replaced the
previous right-handed regime and by focusing only
on a limited number of lines businesses that breach
thresholds, is less intrusive than economic regulation
practiced in Australia, US, UK and elsewhere. The
work required:
• Familiarity with existing regimes,
problems with those regimes, the regulatory literature
and the electricity industry
• Innovative policy design capability (as there
is no international precedent to copy)
NZ Commerce Commission
Passenger Transport Reform
An overview and analysis of passenger
rail privatisation in Victoria - competition, subsidies,
franchising with periodic retendering, revenue sharing,
incentives related to infrastructure maintenance,
alternative models, and a comparison with the UK
Tranzrail
Prospects for Investing in
the NZ Gas Industry
In 2000 ACIL Tasman undertook an analysis
of the gas market in New Zealand for an electricity
generation company who were considering investing
in a major gas fired power generation plant. ACIL
Tasman used its model of the gas transmission system
in New Zealand to assist analysis of the regional
impact on delivered gas costs of different gas field
supply options.
ACIL Tasman has further developed
this model for subsequent analysis of the New Zealand
gas sector.
Agricultural Marketing Regulation
— Reality versus Doctrine
This landmark 1992 report by ACIL
Tasman, conducted for the New Zealand Business Roundtable
following nearly two years of research, broke new
ground in the debate over statutory agricultural
marketing. It has had a profound impact on the course
of events in New Zealand since then, with all five
major producer boards having had their roles and
functions reevaluated and substantially curtailed.
It has led to substantial spin-off work for ACIL
Tasman in both Australia and New Zealand, and the
public policy principles espoused in the report,
especially the market failure logic, are now widely
acknowledged and agreed.
