Goldsmith Paul: Standards and Accreditation Bill — First ReadingText is incorporated into the Bound VolumeGoldsmith Paul: Standards and Accreditation Bill — First Reading[Sitting date: 04 November 2014. Volume:701;Page:488. Text is incorporated into the Bound Volume.]Hon PAUL GOLDSMITH (Minister of Commerce and Consumer Affairs):I move That the Standards and Accreditation Bill be now read a first time. I nominate the Commerce Committee to consider the bill. At the appropriate time I intend to move that the bill be reported to the House by 31 March 2015. This bill puts in place new arrangements for the development and approval of standards in New Zealand and makes minor amendments to the institutional arrangements for the Testing Laboratory Registration Council.A review of New Zealand’s standards regime was triggered in 2012 by the Standards Council’s not being financially sustainable in the medium to long term. The review found that there is a need to improve the responsiveness of the current arrangements for delivering standards in New Zealand to better meet the needs of business consumers and regulators and to increase the contribution to the Government’s objectives such as economic growth international trade innovation and health and safety—for example feedback from users included a desire to speed up the development of standards to maintain the currency of the Standards Catalogue and to keep pace with changes in technology and best practice. There was also an expectation for the standards to be more readily accessible online.Without the bill standards developed in New Zealand are not likely to remain fit for purpose over time—for example standards that are cited in a regulation could be out of date which would result in poor health and safety outcomes. This legislation will ensure New Zealand’s standards and conformance system is viable and well-functioning and meets the needs of business regulators and consumers into the foreseeable future.Under the new arrangements approval of standards and standards development committees will be undertaken by a new independent statutory board called the New Zealand Standards Approval Board. A new independent statutory officer the NZ Standards Executive will be responsible for standards development including the formation of balanced development committees. The bill also explicitly preserves and strengthens some key aspects of the current arrangements—for example balanced independent committees consisting of experts from across the relevant sector will continue to develop and revise standards.To protect the robust reputation of New Zealand standards and ensure that they remain internationally authoritative and credible independence from industry regulators and the Government has been built into every part of the system. The board will make decisions on standards and committee membership with regard to clear criteria in the legislation. Neither the board nor the NZ Standards Executive will be subject to the direction of the responsible Minister. The board will advise the Minister on standards the standards work programme and current and emerging trends in standards.The NZ Standards Executive will be an independent statutory officer located within the Ministry of Business Innovation and Employment and will be subject to public accountability requirements and the scrutiny of the Ombudsman. The Standards Executive will have functions to establish and maintain a work programme for the development maintenance and review of standards as well as to make arrangements for public access to standards.Locating the standards development function within the Ministry of Business Innovation and Employment is expected to help ensure that standards contribute more effectively to innovation economic growth international trade and health and safety. Further this move should facilitate more effective coordination with regulators who are key commissioners and users of standards and enhance the visibility and credibility of standards within other parts of Government.It is vital for New Zealand to maintain its linkages with the international standards community including the International Organization for Standardization (ISO) and the International Electrotechnical Commission. The functions of the NZ Standards Executive include assuming responsibility for New Zealand’s membership of these international organisations and cooperating with international standards organisations to develop draft standards. Standards development and approval will continue to be undertaken in accordance with guidance from the ISO and the International Electrotechnical Commission and will continue to meet New Zealand’s obligations in relation to the World Trade Organization Agreement on Technical Barriers to Trade. These international obligations are integrated into the statutory criteria that will guide the board’s decisions.Finally the bill strengthens the current cost-recovery model for standards. It provides a framework to enable the NZ Standards Executive to set fees for access to standards and to recover the costs associated with developing approving maintaining and providing access to New Zealand standards. The framework provides a balance between the initial development cost and ongoing access costs for particular standards to be negotiated and agreed between the NZ Standards Executive and those commissioning New Zealand standards.The bill also specifies principles that the NZ Standards Executive must have regard to in setting the fees or charges for cost recovery—namely equity efficiency transparency and flexibility. Collectively these measures are intended to ensure the standards system is financially sustainable with flexibility in the recovery of costs available through a negotiated combination of development and access costs with those who commission standards.The bill makes minor amendments to the Copyright Act 1994 to maintain existing copyright protection for standards. This is important to protect the intellectual property of third parties including that of international parties used in New Zealand standards.In relation to accreditation the bill renames the Testing Laboratory Registration Council as the Accreditation Council to better reflect the nature of its functions. It also changes the composition and appointment process for the council in accordance with good governance principles.In conclusion standards and accreditation of conformity assessment facilitate trade promote innovation and enable firms to leverage competitive advantage. As noted standards are also often cited in legislation and thereby support the Government’s regulatory outcomes. The new arrangements will ensure that the value and contribution of standards and conformity assessment to New Zealand’s trade and overall well-being continues and is maximised. These arrangements for standards and accreditation will contribute to the Business Growth Agenda in two ways: first a well-managed standards system builds innovation by facilitating the creation and diffusion of technology by codifying technical excellence; and second the new arrangements support exports by preserving New Zealand’s connections to international standards organisations and ensuring international expectations are met. The new arrangements will also provide a high-quality service to business reflecting the Government’s priority for efficient business-facing services.I look forward to progressing this bill through the House. Thank you.