Rurawhe Adrian; Wood Michael; Court SimonPart 6 Amendments to other legislationCHAIRPERSON (Adrian Rurawhe): Members we now come to the debate on Part 6—clauses 40 to 47 and Schedule 5. This is the debate on amendments to other legislation. The question is that Part 6 stand part.Hon MICHAEL WOOD (Minister of Transport): Just a brief comment on Part 6 in relation to Supplementary Order Paper (SOP) 17 as well because the other change that is introduced through this SOP is a small but important one in terms of the recreational aviation sector. There's been a longstanding bugbear in that sector that much of the aviation sector uses specialised jet fuel but in the recreational aviation sector there are some users mainly of smaller planes and other aviation vehicles who do use fuel that fuel excise duty is attached to. The complaint from that sector—which is a not unreasonable one in my view—over the course of time has been that unlike for other sectors there is no benefit that applies from that fuel excise duty to the sector. So in the case of maritime for example maritime users who pay fuel excise duty do have the ability to see some of that duty come back in terms of maritime safety for things which are funded through the payment of that duty. We don't have the same thing applying to the users of recreational aviation. This SOP makes a small amendment which effectively puts recreational aviation on the same footing so that the fuel excise duty that that sector pays will be able to be applied to purposes affecting recreational aviation mainly in the safety space. That has been a call from the sector. It seems like a fair and reasonable thing to do. It makes it consistent with other sectors as well. I'm sure—and I hope—that members across the committee will support that small change and once again I'm very happy to take any questions on it. SIMON COURT (ACT): Thank you Mr Chair. To the Minister through the Chair: some of the aviation sector—particularly the recreational users—have been very concerned that the fuel excise duty that is hypothecated for land transport has been used for purposes that they do not benefit from so we appreciate that this change here goes some way towards addressing that. However they've also made the point in other submissions that through the civil aviation safety levies they already pay a significant amount of money based on the type of aircraft and what they're doing. For safety they are trained to an extremely high standard which is quite different from the recreational boatie who can walk into a dealership and buy an $80000 or a $120000 boat on a three-axel trailer take it down to the ramp and use it with nothing more than a couple of life jackets. That's all the qualification they need—it's a chequebook. The recreational aviation sector and the training sector which includes flight schools some of which use up to 200000 litres of fuel a year—I understand that there's one in Christchurch at that scale—are really concerned that they've been paying the fuel excise duty and receiving no benefits and now this change this amendment will actually have them paying twice. So they're certified they're audited by the Civil Aviation Authority (CAA) and they pay levies to CAA. They have beacons on board and they are often responsible as amateur or recreational pilots for going and participating in search and rescue activities for lost boaties and others at their own cost. So I would ask the Minister to explain how is this revenue collected from recreational and training and all of those motor gas fuel users who use that fuel in their aircraft—how is that different from the levies that are taken through civil aviation and applied to aviation safety? Thank you. Hon MICHAEL WOOD (Minister of Transport): Just in response as the member Simon Court's question pertained to this particular part of this particular bill I just think it's important to clarify that there's no additional payment requirement that is being created by this Supplementary Order Paper (SOP). What we are simply doing is saying that the estimated value of the payments that are made by the users of recreational aviation through fuel excise duty can be applied to activities that will benefit that sector. It's important to note that in the way that section 9 of the Land Transport Management Act is set up we will only be able to provide benefits to that sector up to the estimated value that is paid in by the sector through fuel excise duty. So in respect of this SOP and the way that this piece of legislation works those are the bounds that we work in. My recollection is that the total estimated value is relatively small—it might be around about $500000 per year. Under this change myself in consultation with the Minister of Finance and in consultation with the sector—which is probably quite an important point to note—will be able to ensure that the value up to the value of those levies received can be applied to the sector. If there are broader questions around how other levies are used levies that might be applied through the Civil Aviation Act and other pieces of legislation they're probably just things that we'll have to pick up in another forum but I'm open to a conversation with the member around them. This change is quite a specific one and I think I've probably given an explanation of how that will be applied. CHAIRPERSON (Adrian Rurawhe): The question is that the Minister's amendments to Part 6 set out on Supplementary Order Papers 16 and 17 be agreed to.Amendments agreed to. CHAIRPERSON (Adrian Rurawhe): The question is that Part 6 as amended stand part. Part 6 as amended agreed to.Schedule 1CHAIRPERSON (Adrian Rurawhe): The question is that the tabled amendment in the name of the Hon Michael Wood to the amendments to Schedule 1 set out on Supplementary Order Paper 16 in his name be agreed to.Amendments to the amendments agreed to. CHAIRPERSON (Adrian Rurawhe): The question is that the Minister's amendments to Schedule 1 as set out on Supplementary Order Paper 16 as amended be agreed to.Amendments as amended agreed to. CHAIRPERSON (Adrian Rurawhe): The question is that Schedule 1 as amended stand part. Schedule 1 as amended agreed to.Schedule 2CHAIRPERSON (Adrian Rurawhe): The question is that Schedule 2 stand part. Schedule 2 agreed to.Schedule 3CHAIRPERSON (Adrian Rurawhe): The question is that the tabled amendment in the name of the Hon Michael Wood to the amendments to Schedule 3 set out on Supplementary Order Paper 16 in his name be agreed to.Amendments to the amendments agreed to. CHAIRPERSON (Adrian Rurawhe): The question is that the Minister's amendments to Schedule 3 as set out on Supplementary Order Paper 16 as amended be agreed to.Amendments as amended agreed to. CHAIRPERSON (Adrian Rurawhe): The question is that Schedule 3 as amended stand part. Schedule 3 as amended agreed to.Schedule 5CHAIRPERSON (Adrian Rurawhe): The question is that the Minister's amendment to delete Schedule 5 as set out on Supplementary Order Paper 16 be agreed to.Amendment agreed to.CHAIRPERSON (Adrian Rurawhe): Therefore Schedule 5 is deleted. Clauses 1 and 2CHAIRPERSON (Adrian Rurawhe): Members we now come to the debate on clauses 1 and 2. This is the debate on the title and commencement provisions. The question is that clause 1 stand part.Clause 1 agreed to.CHAIRPERSON (Adrian Rurawhe): The question is that the Minister's amendments to clause 2 set out on Supplementary Order Paper 16 be agreed to.Amendments agreed to. CHAIRPERSON (Adrian Rurawhe): The question is that clause 2 as amended stand part. Clause 2 as amended agreed to.House resumed. CHAIRPERSON (Adrian Rurawhe): Madam Speaker the committee has considered the Regulatory Systems (Transport) Amendment Bill and reports it with amendment. I move That the report be adopted.Motion agreed to.Report adopted.