RITANZ recently met with the Treasurer to discuss Phase 2 of the Reserve Bank Act, in particular whether NZ should introduce Depositor Preference or a Depositor Insurance Scheme, or a combination on both into the Reserve Bank Act. They are calling for public submissions and RITANZ is currently preparing a written submission in this regard.
Please feel free to send us your comments and feedback so that we can incorporate your views into our report.
The full Phase 2 Consultation Document is available here to read.
Members who attended the RITANZ Annual Conference in Auckland this year may recall Steve Flynn’s presentation strongly questioning the outcome in the Western Australian case of Hamersley v Forge, which involved the important issue of the inter-relationship between insolvency set off and PPSA. Steve’s subsequent article can be found at (2018) 29 JBFLP 175.
The Western Australian Court of Appeal has now overturned the lower court decision – a succinct case note on the appeal can be found at:
RITANZ’s Chairperson John Fisk and Vice Chair Matt Kersey recently presented an oral submission to the Select Committee in Parliament on the Supplementary Order Paper to the Insolvency Practitioners Bill.
John Fisk the Chair of RITANZ, recently featured on Country TV’s Point of View current affairs show to discuss the Farm Mediation Bill, and other insolvency issues that relate to New Zealand’s rural community.
Country TV is on SKY Channel 081, however RITANZ members can simply access John’s wide-ranging and informative 30 minute interview by watching the video below:
RITANZ has prepared and submitted our submission on the Supplementary Order Paper to the Insolvency Practitioners Bill which strongly supports the IPB and the co-regulatory regime for insolvency practitioners . On the 20th Sep 2018, we will appear before the Select Committee to provide an oral submission.
RITANZ Chairman, John Fisk, was recently interviewed by Radio NZ on a range of issues facing our industry at the moment and the work that we as RITANZ are doing around proposed legislation. See the following audio clip from this morning’s broadcast on Morning Rural News. The piece dealing with the proposed Farm Debt Mediation Bill is at 2:20 mins into the clip.
MBIE has advised of an upcoming change to the maximum employee preferential claim figure in the Companies Act 1993 and Insolvency Act 2006.
On 30 September 2018, The figure is being adjusted from $22,160 to $23,960. This adjustment occurs every 3 years, to account for any increase in average weekly earnings (total, private sector).This adjustment reflects an 8.1 percent increase in average weekly earnings since 2015, as reported by Statistics New Zealand in its Quarterly Employment Survey.
The amendments to the Companies Act and Insolvency Act have been signed into law (see the New Zealand Legislation website) and notified in the Government Gazette. For more information, please see the MBIE website.
Following the incorporation of GST into the new Inland Revenue computer system START, Inland Revenue has a new process for dealing with GST and refunds. Some insolvency practitioners have been confused by aspects of the new process, and in particular by requests from Inland Revenue staff for an IRD number for the account into which the refunds are to be paid. Inland Revenue wish to make it clear to insolvency practitioners that the IRD number is required as part of the verification process in START and not for any type of audit or compliance activity.
When notifying Inland Revenue of their appointments practitioners should also include in their letter details of the account into which they want tax refunds to be paid together with the IRD number for the owner of that account.
On the 28th June, the Minister of Commerce and Consumer Affairs. Kris Faafoi sent the Insolvency Practitioners Bill back to the select committee to consider a supplementary order paper which replaces the proposed negative licencing regime with a co-regulatory licensing framework.
The select committee is calling for submissions on the SOP with a deadline of 24th Aug 2018.
RITANZ is compiling a submission representing feedback from the industry viewpoint and we encourage members to let us have their thoughts and comments on this very important topic as a matter of urgency.
The SOP is available for further reading as per the link below: