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Regulatory Issues Volume 13 – Issue 4 – November 2017 IN FOCUS Regulatory Issues Regulatory Stewardship: voice of the regulator Trends and Determinants of Top Pay in the New Stephanie Winson 3 Zealand Public and Private Sectors, 1995–2014 Are Regulated Parties Customers? Tim Hazledine, Michael Wang and Kar Yew Lee 53 Ben Wauchop and Keith Manch 10 Civics and Citizenship Education in New Zealand: a New Zealand’s Port and Harbour Marine case for change? Safety Code – a case study in co-regulation Todd Krieble and Danijela Tavich 60 Keith Manch 13 Insuring Property under Climate Change A Rail Tale Belinda Storey and Ilan Noy 68 Chris Ballantyne 21 Managing the Opportunities and Risks Associated Graduate Pathway Students: three contributions with Disruptive Technologies: space law in Lessons from an Internship at Waipa- District New Zealand Council: motivations and incentives Kirsty Hutchison, Katherine MacNeill, Peter Mumford Alice Denne 75 and Val Sim 28 Two Key Lessons from a Public Sector Internship: Rapid Developments in Artificial Intelligence: accountability in public sector contracting and how might the New Zealand government client-level data respond? Matthew Macfarlane 77 Matthew Boyd and Nick Wilson 36 New Zealand Productivity Commission Internship: Income Volatility in New Zealand social sector productivity Toby Moore 44 Danijela Tavich 80 Editorial Note This issue of Policy Quarterly commences with five The five regulatory articles traverse a number of articles on aspects of government regulation in New issues. Two are conceptual. The first, by Stephanie Volume 13 – Issue 4 – November 2017 Zealand. A separate editorial note (see below) by Dr Winson, argues that regulators have a lot of value to Peter Mumford and Keith Manch summarizes the offer in the policy development and review process. Policy Quarterly (PQ) is targeted at readers purpose and content of these articles. My sincere You may or may not agree with Winson’s assertion that in the public sector, including politicians and their staff, public servants and a wide variety thanks to Peter and Keith, and also Dr Veronica policy analysts may ‘dismiss or may not appreciate’ of professions, together with others interested Jacobsen, for their efforts in overseeing the selection, the real world of regulatory compliance. However, in public issues. Its length and style are preparation and peer review of these articles. she makes a compelling argument that regulators intended to make the journal accessible to Collectively, these pieces provide a fascinating have unique insights that can be exploited through busy readers. insight into the evolving nature of public regulation in good leadership and collaboration across regulatory Submissions: The journal welcomes contributions of about 4,000 words, written this country, not least the important quest for better systems, underpinned by effective information on any topic relating to governance, public regulatory stewardship and improved regulatory management and competency. policy and management. Articles submitted practice. Ben Wauchop and Keith Manch tackle the will be peer reviewed. Please submit articles The remaining eight articles fall into two contentious subject of whether regulated entities to the Editor: [email protected]. Although issues will not usually have single categories. First, there are five articles on various (those who are required to comply with the law) are themes, special issues may be published from topical policy issues from a range of (mostly ‘customers’ of the agencies that are regulating them. time to time on specific or general themes, academic) contributors. These cover the following Does it matter what they are called? In his seminal perhaps to mark significant events. In such matters: the ethical, societal and policy implications work on the philosophy of language, Wittgenstein cases, and on other occasions, contributions of artificial intelligence; the extent of income volatility concluded that ‘Different words create different may be invited from particular people. Subscriptions: The journal is available in PDF in New Zealand; trends in top pay in New Zealand; worlds’. From this perspective it does matter as both format on the Institute for Governance and ways to enhance education on civics and citizenship; regulators and those they regulate may condition Policy Studies (IGPS) website: http://igps. and the implications of climate change for household their behaviours based on what they understand the victoria.ac.nz/publications/publications/list/10. insurance. term ‘customer’ to mean. Readers who wish to receive it by email should register as PQ subscribers igps@vuw. The final three articles are from students in A further two articles provide insights into the ac.nz. This service is free. the Graduate Pathway Programme in the School regulatory practice world. Both deal with critical For all subscription and membership of Government: Alice Denne, Matthew Macfarlane infrastructures – ports and rail, and both deal with enquiries please e-mail [email protected] or and Danijela Tavich. These articles are based on safety. The quest for better regulatory outcomes post to Institute for Government and Policy research undertaken by these students as part can involve experimentation and the ports and rail Studies, P.O. Box 600, Wellington. Electronic Access: The IGPS directs of their internships with various public and non- safety stories show how the regulatory regimes interested individuals to its website: governmental agencies. This is the first time Policy have evolved based on what both the regulators and www.igps.victoria.ac.nz where details of the Quarterly has published such material, but I trust it regulated entities have learned from experience. Institute’s publications and upcoming events will not be the last. My grateful thanks to Dr Barbara Keith Manch emphasises the features of co- can be found. Allen, who coordinates our School’s Graduate regulation that align the mandates, incentives Permission: In the interest of promoting debate and wider dissemination, the Pathway Programme, for suggesting the idea of and capabilities of the national regulator, local IGPS encourages use of all or part of the having these students contribute to the journal and government regulators and port companies. Chris papers appearing in PQ, where there is no for overseeing the preparation of their articles. Ballantyne shows how the regulator first had to element of commercial gain. Appropriate New Zealand has a new government. The February recognise the need and then change its regulatory acknowledgement of both author and source should be made in all cases. The IGPS issue of Policy Quarterly will, accordingly, include culture, capabilities and ‘rules of thumb’ to retains copyright. Please direct requests reflections on the political and policy implications implement effectively the safety case approach that for permission to reprint articles from this of the change of government. In the meantime, I was introduced through legislative change in 2005. publication to [email protected]. trust that readers will find much of interest in the Finally, New Zealand has implemented the most Editor: Jonathan Boston November issue. modern regime for regulating outer space activities Guest Editors: Peter Mumford and Keith Manch and high altitude vehicles originating from its territory. Editorial Board: Barbara Allen, Jonathan Boston Kirsty Hutchison, Katherine MacNeill, Peter Mumford Guy Beatson, Roger Blakeley, David Bromell, and Val Sim describe this regime and what it seeks to Simon Chapple, Jo Cribb, Girol Karacaoglu, achieve. Put into the context of regulating disruptive Gerald Minnee, Anneliese Parkin, Mike Reid and Andrea Schollmann Articles on regulatory issues technologies and markets so that the benefits are ISSN: 2324-1098 (Print) This issue of Policy Quarterly continues the regulatory secured while managing the risks, this article puts a ISSN: 2324-1101 (Online) theme that has emerged over the past couple of stake in the ground for a permissive approach which Volume 13, Issue 4 – November 2017 years. This recognises the critical role that regulation facilitates innovation and entrepreneurship, but with Copy Editor: Rachel Barrowman plays in maintaining a society where people are safe rigorous checks and balances to ensure that what is Design & Layout: Aleck Yee Cover Photography: Aleck Yee and secure, and an economy that supports growth permitted is safe and secure. Production: Alltex Design and prosperity. Recent regulatory failures have Proof Reader: Vic Lipski graphically demonstrated the costs when regulation Keith Manch and Peter Mumford on behalf of does not deliver on its promises, and parliament has the Government Regulatory Practice Initiative ‘upped the game’, by requiring under the State Sector (G-REG). With thanks to Dr Veronica Jacobsen for her Act that chief executives exercise ‘stewardship’ over contribution to the editorial review of the five articles. the legislation administered by their agency. Stephanie Winson REGUlatorY Stewardship Voice of the effectively over time. In his 2014 article ‘Why departments need to be regulatory stewards’, Jonathan Ayto said the then Regulator initial government expectations for regulatory stewardship ‘can be viewed as introducing some very basic asset management concepts to the regulatory In 2014 the New Zealand Productivity Commission inquiry environment’ (Ayto, 2014, p.27). The government issued updated on regulatory institutions and practices concluded that ‘The
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