Misplaced Pages

#735264

102-573: The New Zealand Treasury ( Māori : Te Tai Ōhanga ) is the central public service department of New Zealand charged with advising the Government on economic policy , assisting with improving the performance of New Zealand's economy , and managing financial resources. The Minister responsible for the Treasury is the Minister of Finance of New Zealand ; however, from 1996 to 2002, there existed

204-446: A general election . Not since 1928 has a government been defeated on a confidence vote and therefore been obliged to resign. The Constitution Act 1986 stipulates that general elections must be held at least every three years, making this the maximum period of time that a government can serve without seeking renewal of its mandate . Upon the dissolution of Parliament (preceding a general election) ministers are no longer members of

306-471: A portfolio of specific responsibilities such as departments or policy areas, although ministers without portfolio can be appointed. The position of prime minister belongs to the person who commands the confidence of the majority of members in the House of Representatives. The position is determined also by several other factors, such as support agreements between parties and internal leadership votes in

408-409: A corresponding public service department ( see § Departments ). The most important minister, following the prime minister, is the finance minister , while other high-profile portfolios include foreign affairs , justice , health and education . Traditionally, all members are collectively responsible for the actions taken by Cabinet—typically all Cabinet ministers must publicly support

510-458: A few officials responsible for managing the Government's day-to-day financial affairs. In the 1920s the department took on a supervisory role over other departments’ spending and oversight of government borrowing. However, the most dramatic change to the role of the Treasury came in the 1950s when the department began to develop its role as economic advisor to the Government. The Treasury "hit

612-472: A form of "corporate socialism" that serves to "regressively tax consumers, impoverish small firms, inhibit new entry, stifle innovation, and diminish consumer choice ". The FCC selectively granted communications licenses to some radio and television stations in a process that excludes other citizens and little stations from having access to the public. Michael K. Powell , who served on the FCC for eight years and

714-421: A group of states or provinces with a large timber industry might have their legislature and/or their delegation to the national legislature captured by lumber companies. These states or provinces then become the voice of the industry, even to the point of blocking national policies that would be preferred by the majority across the whole country. Moore and Giovinazzo (2012) call this "distortion gap". The opposite

816-461: A large number of people (for example, all taxpayers )". For public choice theorists , regulatory capture occurs because groups or individuals with high-stakes interests in the outcome of policy or regulatory decisions can be expected to focus their resources and energies to gain the policy outcomes they prefer, while members of the public, each with only a tiny individual stake in the outcome, will ignore it altogether. Regulatory capture refers to

918-483: A more specific position of Treasurer of New Zealand . The role was created for Winston Peters by the Fourth National Government under Jim Bolger after the 1996 election, and abolished by Helen Clark’s government in 2002. Treasury has four main functions: The Treasury is one of New Zealand's oldest institutions, having been first established in 1840. Initially the Treasury consisted of just

1020-523: A pattern of regulatory abuse and widespread regulatory lapses, allowing 117 aircraft to be operated commercially although not in compliance with FAA safety rules. Oberstar said there was a "culture of coziness" between senior FAA officials and the airlines and "a systematic breakdown" in the FAA's culture that resulted in "malfeasance, bordering on corruption". As of 2023, aviation in the United States,

1122-527: A prominent railroad lawyer, was asked by a railroad president if he could do something to get rid of the ICC. Olney, who later was appointed Attorney General in the Grover Cleveland administration, replied in an 1892 letter: The Commission… is, or can be made, of great use to the railroads. It satisfies the popular clamor for a government supervision of the railroads, at the same time that supervision

SECTION 10

#1732771951736

1224-415: A special interest is prioritized over the general interests of the public, leading to a net loss for society . The theory of client politics is related to that of rent-seeking and political failure ; client politics "occurs when most or all of the benefits of a program go to some single, reasonably small interest (e.g., industry , profession, or locality ) but most or all of the costs will be borne by

1326-618: A special underdog rhetoric. On 21 October 1966, a tip containing spoil and tailings from Merthyr Vale Colliery slipped after a period of heavy rain, killing 116 children and 28 adults in the Welsh village of Aberfan . In contravention of the National Coal Board 's procedures, the tip was partly based on ground from which water springs were known to emerge. After three weeks of rain the tip became saturated and 140,000 cubic yards (110,000 m ) of spoil and tailings slipped down

1428-722: A spokesman for the National Mining Association , which lobbies for the mining industry, praised Salazar, saying that he was not doctrinaire about the use of public lands . MMS had allowed BP and dozens of other companies to drill in the Gulf of Mexico without first attaining permits to assess threats to endangered species , as required by law. BP and other companies were also given a blanket exemption ( categorical exclusion ) from having to provide environmental impact statements . The National Oceanic and Atmospheric Administration (NOAA) issued strong warnings about

1530-638: Is a formal body that meets to give legal effect to decisions made by the Cabinet, and to carry out various other functions, such as the making of certain appointments to government agencies and boards. The Executive Council's primary function is to issue Orders in Council , which are legally binding regulations made by the Government. All ministers are members of the Executive Council, and are styled " The Honourable " while in office (or for life if

1632-410: Is a public administration policy that focuses on private behavior. It is a rule drawn from the public interest. Irving and Brouhingan state that regulation is a way of obeying public needs and weakening the risk of market operations. They also expressed the view that regulation reflects the public interest. The review of the United States' history of regulation at the end of the 19th century, especially

1734-677: Is a reference to the monarch, King Charles III , who is the head of state under the Constitution Act 1986. The legal authority of the state that is vested in the monarch, known as " the Crown ", which is the source of the executive power exercised by the Government. Sovereignty in New Zealand has never rested solely with the monarch due to the English Bill of Rights 1689 , later inherited by New Zealand, which establishes

1836-427: Is able to use the state for its purposes". He focuses on whole industries. But, it is never a whole industry which is ‘capturing’ its regulators, but only the big companies which, using the tool of the revolving door , ‘highjack’ the regulator by offering high salaries. Brezis and Cariolle (2019) has shown that the connected firms are always the big firms. Indeed, the top 5 financial companies concentrate around 80% of

1938-556: Is almost entirely nominal. Further, the older such a commission gets to be, the more inclined it will be found to take the business and railroad view of things.… The part of wisdom is not to destroy the Commission, but to utilize it. While the Interstate Commerce Act forbade "undue and unreasonable prejudice" against interstate passengers, in the sixty-six years before Sarah Keys v. Carolina Coach Company (1955)

2040-428: Is associated with Nobel laureate economist George Stigler , one of its major developers. Likelihood of regulatory capture is a risk to which an agency is exposed by its very nature. This suggests that a regulator should be protected from outside influence as much as possible. Alternatively, it may be better to not create a given agency at all. A captured regulator is often worse than no regulation, because it wields

2142-457: Is difficult to distinguish between the two. Regulatory capture theory has a specific meaning, that is, an experience statement that regulations are beneficial for producers in real life. So it is essentially not a true regulatory theory. Although the analysis results are similar to the Stigler model, the methods are completely different. Stigler used standard economic analysis methods to analyze

SECTION 20

#1732771951736

2244-442: Is evidence that regulation has little effect on prices, so the industry can earn excess profits. Evidence shows that regulation is beneficial to producers. These observations led to the emergence and development of regulatory capture theory. Contrary to regulatory public interest theory, this holds that the provision of regulation adapts to the industry's needs, that is, both the legislator and regulator are controlled and captured by

2346-659: Is generally regarded as having been the country's first prime minister. The first ministry that formed along party lines did not appear until 1891, when John Ballance formed the Liberal Party and the Liberal Government . The prime minister became the leader and public face of the governing party. The status of the monarch's representative was upgraded from "governor" to " governor-general " in 1917 letters patent . In short, there have been three distinctly different periods of New Zealand government—firstly,

2448-494: Is possible. Very large and powerful industries (e.g., energy, banking, weapon system construction ) can capture national governments, and then use that power to block policies at the national, state or provincial level that the voters may want, although even local interests can thwart national priorities. Regulatory capture has an economic basis: vested interests in an industry have the greatest financial stake in regulations affecting them, and so are more likely to try to influence

2550-430: Is said to serve " at His Majesty's pleasure ". As per the conventional stipulations of constitutional monarchy , the king and his representative rarely intervene directly in political affairs. Just as the sovereign's choice of governor-general is on the prime minister's advice, the governor-general exercises the executive powers of state on the advice of ministers. For example, the governor-general's power to withhold

2652-424: Is selected on the advice of the prime minister. " Advice " in this sense is a choice without options since it would be highly unconventional for the prime minister's advice to be ignored—a convention that protects the monarchy. As long as the monarch is following the advice of his ministers, he is not held personally responsible for the decisions of the Government. The governor-general has no official term limit , and

2754-578: Is the most influential of the Federal Reserve Banking System. Part of the New York Fed's responsibilities is the regulation of Wall Street , but its president is selected by and reports to a board dominated by the chief executives of some of the banks it oversees. While the New York Fed has always had a closer relationship with Wall Street, during the years that Timothy Geithner was president, he became unusually close with

2856-546: Is the part of The Treasury responsible for managing the Crown's debt, its cash flows and its interest-bearing deposits. The 1988 reforms of the Government's financial management led to its establishment with the aim of improving the management of the Government's debt portfolio. Central Agencies Shared Services (CASS) is a shared services centre housed within the Treasury. Set up in March 2012, it provides information technology and management, human resources, and finance services to

2958-431: Is to make up for market failures, improve the efficiency of resource allocation, and maximize social welfare. Posner states that the public interest theory contains the assumption that the market is fragile, and that if left unchecked, it will tend to be unfair and inefficient, and government regulation is a costless and effective way to meet the needs of social justice and efficiency. Mimik states that government regulation

3060-701: The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) and on October 1, 2010, the collection of mineral leases was split off from the agency and placed under the Department of the Interior as the Office of Natural Resources Revenue (ONRR). On October 1, 2011, BOEMRE was then split into two bureaus, the Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Ocean Energy Management (BOEM). The three-stage reorganization, including

3162-584: The Center for Biological Diversity , said, "MMS has given up any pretense of regulating the offshore oil industry. The agency seems to think its mission is to help the oil industry evade environmental laws". After the Deepwater accident occurred, Salazar said he would delay granting any further drilling permits. Three weeks later, at least five more permits had been issued by the minerals agency. In March 2011, BOEMRE began issuing more offshore drilling permits in

New Zealand Treasury - Misplaced Pages Continue

3264-532: The Executive Council and accountable to the elected legislature , the House of Representatives. Several senior ministers (usually 20) constitute a collective decision-making body known as the Cabinet , which is led by the prime minister (currently Christopher Luxon ). A few more ministers (usually junior or supporting) are part of the Executive Council but are outside Cabinet. Most ministers have

3366-741: The Freedom Riders protests of 1961. According to Frank N. von Hippel , despite the 1979 Three Mile Island accident in Pennsylvania, the Nuclear Regulatory Commission (NRC) has often been too timid in ensuring that America's 104 commercial reactors are operated safely: Nuclear power is a textbook example of the problem of "regulatory capture" – in which an industry gains control of an agency meant to regulate it. Regulatory capture can be countered only by vigorous public scrutiny and Congressional oversight, but in

3468-511: The Union of Concerned Scientists (UCS) released a study critical of the NRC's 2010 performance as a regulator. The UCS said that through the years, it had found the NRC's enforcement of safety rules has not been "timely, consistent, or effective" and it cited 14 "near-misses" at U.S. plants in 2010 alone. Tyson Slocum, an energy expert at Public Citizen said the nuclear industry has "embedded itself in

3570-500: The central government deals with issues relevant to New Zealand and its people as a nation, local government exists "to enable democratic local decision-making and action by, and on behalf of, communities", and "to meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses." Regulatory capture When regulatory capture occurs,

3672-477: The " Beehive " because of the building's shape, houses many government offices and is also where the Cabinet meets. Thus the name Beehive is sometimes used metonymically to refer to the New Zealand Government. The official website of the New Zealand Government uses the web address beehive.govt.nz . The first New Zealand Constitution Act was passed in 1846, though Governor George Grey

3774-443: The 32 years since Three Mile Island, interest in nuclear regulation has declined precipitously. Then-candidate Barack Obama said in 2007 that the five-member NRC had become "captive of the industries that it regulates" and Joe Biden indicated he had absolutely no confidence in the agency. The NRC has given a license to "every single reactor requesting one", according to Greenpeace USA nuclear policy analyst Jim Riccio to refer to

3876-491: The Abolition of Provinces Act 1876, during the premiership of Harry Atkinson . For the purposes of the law, the provinces formally ceased to exist on 1 January 1877. The Sewell Ministry constituted the first responsible government , with control over all domestic matters other than native policy. Formed in 1856, it lasted from 18 April to 20 May. From 7 May onward, Henry Sewell was titled " colonial secretary ", and

3978-427: The Cabinet as a legal entity; it exists solely by constitutional convention. Its decisions do not in and of themselves have legal force; however, it serves as the practical expression of the Executive Council, which is New Zealand's highest formal governmental body. The prime minister is responsible for chairing meetings of Cabinet. The governor-general will appoint as prime minister the person most likely to receive

4080-433: The Cabinet that outlines the Government's policy and legislative proposals. A few other ministers serve in the Executive Council but outside of Cabinet. Since the introduction of MMP, governments have been formed following agreements between a major party and smaller support parties. In such arrangements, government ministers from the support parties are often ministers outside Cabinet. Non-Cabinet ministers may also be from

4182-767: The Crown in the running of these. This group includes what was the Crown Ownership Monitoring Unit (COMU, pronounced "co-moo") from November 2009 to February 2014, and before that the Crown Company Monitoring and Advisory Unit. The Treasury has courted controversy, particularly since the Rogernomics reforms of the 1980s. Given the agency's key influence and impact on fiscal policy, it has been accused by critics in recent years of inaccurate forecasts, regulatory capture and political partisanism, and accepting corporate gifts from

New Zealand Treasury - Misplaced Pages Continue

4284-428: The FAA proposed to fine Southwest $ 10.2 million for failing to inspect older planes for cracks, and in 2009 Southwest and the FAA agreed that Southwest would pay a $ 7.5 million penalty and would adapt new safety procedures, with the fine doubling if Southwest failed to follow through. In September 2009, FAA Administrator Randy Babbitt issued a directive mandating that the agency use the term "customers" only to refer to

4386-482: The FAA was a victim of regulatory capture was one focus of a United States Senate Commerce Subcommittee on Aviation and Space meeting held in the wake of the Ethiopian Airlines Flight 302 crash that followed a previous crash of a Lion Air flight and claimed 157 lives. The Boeing 737 MAX platform that crashed had been subjected to only an "amended" airworthiness type certificate . The NTSB

4488-546: The FCC commissioners who approved a controversial merger between NBC Universal and Comcast . Four months later, she announced her resignation from the FCC to join Comcast's Washington, D.C. lobbying office. Legally, she is prevented from lobbying anyone at the FCC for two years and an agreement made by Comcast with the FCC as a condition of approving the merger will ban her from lobbying any executive branch agency for life. Nonetheless, Craig Aaron, of Free Press , who opposed

4590-638: The Fukushima Daiichi plant. The plant had been found to be leaking radioactive materials through a network of underground pipes, which Entergy , the company running the plant, had denied under oath even existed. Representative Tony Klein, who chaired the Vermont House Natural Resources and Energy Committee, said that when he asked the NRC about the pipes at a hearing in 2009, the NRC didn't know about their existence, much less that they were leaking. On March 17, 2011,

4692-560: The Gulf of Mexico. Michael Bromwich , head of BOEMRE, said he was disturbed by the speed at which some oil and gas companies were shrugging off Deepwater Horizon as "a complete aberration, a perfect storm, one in a million", but would nonetheless soon be granting more permits to drill for oil and gas in the gulf. Since the Federal Aviation Administration (FAA) charter was amended in 1996, its sole focus has been

4794-466: The House of Representatives, with a sufficient number of MPs to win crucial parliamentary votes, will form a Cabinet —this is the sense intended when it is said that a political party "forms the government". The Constitution Act 1986 , the principal part of New Zealand's constitution, locates the executive government in the Executive Council , which also includes ministers outside Cabinet. The Executive Wing of Parliament Buildings , commonly called

4896-431: The House of Representatives; however, they can remain members of the Executive Council "until the expiration of the 28th day after the day on which that person ceases to be a member of Parliament". Also known as " ministers of the Crown ", these are members of Parliament who hold ministerial warrants from the Crown to perform certain functions of government. This includes formulating and implementing policies and advising

4998-424: The House. The Government is required by convention and for practical reasons to maintain the support, or confidence, of the House of Representatives. It also requires the support of the House for the maintenance of supply (by voting through the government's budgets ) and in order to pass primary legislation . By convention, if a government loses the confidence of the House then it must either resign or call for

5100-475: The ICC had ruled against every black petitioner bringing a racial segregation complaint, earning the nickname "The Supreme Court of the Confederacy ". The ICC then failed to enforce Keys vs. Carolina Coach , attempting to justify segregation on a separate but equal basis for six years before being forced by the Department of Justice under then Attorney General Robert F. Kennedy to act in response to

5202-532: The January 2010 congressional hearing into the AIG bailout, the New York Fed initially refused to identify the counterparties that benefited from AIG's bailout, claiming the information would harm AIG. When it became apparent this information would become public, a legal staffer at the New York Fed e-mailed colleagues to warn them, lamenting the difficulty of continuing to keep Congress in the dark. Jim Rickards calls

SECTION 50

#1732771951736

5304-547: The Parliament in order to call an election , and extends to foreign affairs: the negotiation and ratification of treaties, alliances, international agreements, the right to declare war and peace , and the deployment and armament of defence forces. The king rarely personally exercises his executive powers; since the sovereign does not normally reside in New Zealand, he appoints a governor-general to represent him and exercise most of his powers. The person who fills this role

5406-586: The Royal Assent to bills of parliament has been rendered ineffective by the convention. Under the conventions of the Westminster system , the Government is accountable to the House of Representatives, the democratically elected component of Parliament , rather than to the sovereign. This is called responsible government . For example, ministers are required to be members of the House, and they make statements and take questions from other members in

5508-540: The Treasury's role being to provide central agency leadership, co-ordination and monitoring. Between 2008 and 2011 Treasury administered the Crown Retail Deposit Guarantee Scheme . Under the scheme the government bailed out nine finance firms including South Canterbury Finance to the value of approximately $ 2 billion. Today the Treasury employs 363 people, is the Government's lead advisor on economic and financial policy, and has

5610-569: The Treasury, the Department of the Prime Minister and Cabinet , and the Public Service Commission . Aside from providing these services, the goal of CASS is to set an example for other state sector organisations in sharing service delivery functions. The Crown owns many companies, including state-owned enterprises , Crown entities , and Crown Research Institutes . The Treasury's Commercial Operations group assists

5712-455: The actions by interest groups when this is successful at influencing the staff or commission members of the regulator. ... as a rule, regulation is acquired by the industry and is designed and operated primarily for its benefit... We propose the general hypothesis: every industry or occupation that has enough political power to utilize the state will seek to control entry. In addition, the regulatory policy will often be so fashioned as to retard

5814-591: The actions of their department, being answerable to the House of Representatives. This principle is called individual ministerial responsibility . The wider state sector also includes about 2,800 Crown entities (including some 2,600 school boards of trustees), 17 state-owned enterprises , three officers of Parliament, and the Reserve Bank of New Zealand . There are two main tiers of elected local authorities— regional councils and territorial authorities —in some places merged into unitary authorities . While

5916-468: The advent of the European standard for motorcyclists' protective clothing (EN 17092), Bennetts and Motor Cycle News asserted that "the testing standards now used to certify motorcycle riding kit have reduced protection levels by as much as 90%" because of regulatory capture as industry representatives accounted for half the standards committee members including its chair, noting "Few will be aware of

6018-531: The agency approval process as a "rubber stamp". In Vermont, ten days after the 2011 Tōhoku earthquake and tsunami that damaged Japan's Daiichi plant in Fukushima , the NRC approved a 20-year extension for the license of Vermont Yankee Nuclear Power Plant , although the Vermont state legislature had voted overwhelmingly to deny such an extension. The Vermont plant uses the same GE Mark 1 reactor design as

6120-460: The authority of government. However, increased transparency of the agency may mitigate the effects of capture. Recent evidence suggests that, even in mature democracies with high levels of transparency and media freedom, more extensive and complex regulatory environments are associated with higher levels of corruption (including regulatory capture). Stigler framed the problem of regulatory capture as "the problem of discovering when and why an industry

6222-515: The bailout a crime and says "the regulatory system has become captive to the banks and the non-banks". Historians, political scientists, and economists have often used the Interstate Commerce Commission (ICC), a now-defunct federal regulatory body in the United States, as a classic example of regulatory capture. The creation of the ICC was the result of widespread and longstanding anti-railroad agitation. Richard Olney ,

SECTION 60

#1732771951736

6324-413: The banks received a "back-door bailout" of 100 cents on the dollar for the contracts. Had the New York Fed allowed AIG to fail, the contracts would have been worth much less, resulting in much lower costs for any taxpayer-funded bailout. Geithner defended his use of unprecedented amounts of taxpayer funds to save the banks from their own mistakes, saying the financial system would have been threatened. At

6426-427: The confidence of the House of Representatives to lead the Government. In practice, the appointment is determined by size of each political party , support agreements between parties, and leadership votes in the party that leads the Government. The prime minister then advises the governor-general to appoint other ministers. Each minister is responsible for the general administration of at least one portfolio , and heads

6528-417: The decisions of Cabinet. However, since the introduction of the mixed-member proportional (MMP) electoral system in 1993, processes were developed to allow different parties within a coalition cabinet to " agree to disagree " on some issues. The legislative agenda of Parliament is determined by the Cabinet. At the start of each new parliamentary term, the governor-general gives an address prepared by

6630-575: The establishment of a whistleblower office and a two-year "cooling off" period that FAA inspectors or supervisors of inspectors must wait before they can work for those they regulated. The bill also required rotation of principal maintenance inspectors and stipulated that the word "customer" properly applies to the flying public, not those entities regulated by the FAA. The bill died in the United States Senate Committee on Commerce, Science, and Transportation that year. In 2008

6732-480: The executive. Based on the principle of responsible government , it operates within the framework that "the [ King ] reigns, but the government rules, so long as it has the support of the House of Representatives ". The Cabinet Manual describes the main laws, rules and conventions affecting the conduct and operation of the Government. Executive power is exercised by ministers , all of whom are sworn into

6834-639: The field in which the FAA is tasked to regulate, has had an unparalleled safety streak. Because of this, U.S. regulatory policy in this sector is regarded as one of the best in world. With an estimated 29,000 flights daily, the United States hasn't had a major commercial aviation disaster since Colgan Air Flight 3407 in February 2009. On July 22, 2008, a bill was unanimously approved in the Democrat-controlled House to tighten regulations concerning airplane maintenance procedures, including

6936-459: The financial industry. New Zealand Government The New Zealand Government ( Māori : Te Kāwanatanga o Aotearoa ) is the central government through which political authority is exercised in New Zealand . As in most other parliamentary democracies , the term "Government" refers chiefly to the executive branch , and more specifically to the collective ministry directing

7038-485: The first schedule to the State Sector Act 1988 . Staffed by around 45,000 public servants, they provide the government of the day with advice and deliver services to the public. Since the 1980s, the public service has been marketised . Each department is headed by a chief executive who answers to a government minister for that department's performance. In turn, a minister bears the ultimate responsibility for

7140-582: The flying public. Prior to the deregulation of the US air industry , the Civil Aeronautics Board served to maintain an oligopoly of US airlines. In a June 2010 article on regulatory capture, the FAA was cited as an example of "old-style" regulatory capture, "in which the airline industry openly dictates to its regulators its governing rules, arranging for not only beneficial regulation but placing key people to head these regulators". That

7242-468: The governor-general. Before 1996 nearly all ministers were members of the Cabinet, but since the introduction of proportional representation , which has led to complex governing arrangements, there are currently three categories of minister: ministers in Cabinet, ministers outside Cabinet, and ministers from supporting parties. The Executive Council, established under the Letters Patent 1983 ,

7344-459: The industry. The basic view of the theory is that the regulator gets captured no matter how the regulatory scheme is designed. The implication is that regulation increases the industry's profits rather than the social welfare. This was essentially a purely capture theory in the early days, that is, the regulators and legislators were captured and controlled by the industry. Later regulatory models, such as those by Stigler, Pelzmann, or Becker, follow

7446-514: The intense opposition [to higher safety standards] from within the industry." However, there is a shortage of academic research into regulatory capture regarding motorcyclists' PPE standards. In the aftermath of the 2010 Deepwater Horizon oil spill , the Minerals Management Service (MMS), which had regulatory responsibility for offshore oil drilling, was widely cited as an example of regulatory capture. The MMS then became

7548-763: The major governing party, as has been the case in recent governments. Ministers outside the Cabinet have the same overall duties and responsibilities as their senior colleagues inside Cabinet. The current ministry , since November 2023, is the National Party government led by Prime Minister Christopher Luxon , forming a coalition with ACT New Zealand and New Zealand First . The table below lists all ministers, as of 25 June 2024 . Notes New Zealand's public service includes 32 core government institutions—most have ministry or department in their name, e.g. Ministry for Culture and Heritage , or Department of Internal Affairs —which are listed in

7650-471: The matter after two FAA whistleblowers , inspectors Charalambe "Bobby" Boutris and Douglas E. Peters, contacted them. Boutris said he attempted to ground Southwest after finding cracks in the fuselage , but was prevented by supervisors he said were friendly with the airline. The committee subsequently held hearings in April 2008. James Oberstar , former chairman of the committee said its investigation uncovered

7752-607: The merger, complained that "the complete capture of government by industry barely raises any eyebrows" and said public policy would continue to suffer from the "continuously revolving door at the FCC". In July 2019, congresswomen Elizabeth Warren and Pramila Jayapal issued a letter (citing a report by the Project On Government Oversight ) showing concerns for the composition of the FCC's Communications Security, Reliability and Interoperability Council (CSRIC), questioning whether it could effectively serve

7854-592: The name change to BOEMRE, was part of a re-organization by Ken Salazar , who was sworn into office as the new Secretary of the Interior on the same day the name change was announced. Salazar's appointment was controversial because of his ties to the energy industry. As a senator, Salazar voted against an amendment to repeal tax breaks for ExxonMobil and other major petroleum companies and in 2006, he voted to end protections that limit offshore oil drilling in Florida 's Gulf Coast. One of Salazar's immediate tasks

7956-460: The overall vision of helping governments achieve higher living standards for New Zealanders. Specific areas of work undertaken by the Treasury include: The Treasury serves 8 portfolios and 7 ministers. The Secretary to the Treasury is the public service head of the department. The role was created in 1873 when the offices of paymaster-general and under treasurer were amalgamated. Senior leadership The New Zealand Debt Management Office (NZDMO)

8058-525: The party that leads the Government. The prime minister and other ministers are formally appointed by the governor-general (who is the King's personal representative in New Zealand). By convention, the governor-general acts on the advice of the prime minister in appointing ministers. In New Zealand, the term Government can have a number of different meanings. At its widest, it can refer collectively to

8160-465: The period before responsible government; second, from 1856 to 1890, the period in which responsible government begins; and the third period starting with the formation of political parties in 1891. By convention, a distinct government is named after the largest party that leads it. The New Zealand Government is formally styled [His] Majesty's Government in the Seal of New Zealand Act 1977 . This

8262-428: The phenomenon extends beyond political agencies and organizations. Businesses have an incentive to control anything that has power over them, including the media, academia and popular culture, and will try to capture them too. This is called "deep capture". Regulatory public interest is based on market failure and welfare economics. It holds that regulation is the response of the government to public needs. Its purpose

8364-427: The political establishment" through "reliable friends from George Bush to Barack Obama", that the government "has really just become cheerleaders for the industry". Although the exception, there have been instances of a revolving door . Jeffrey Merrifield, who was on the NRC from 1997 to 2008 and was appointed by presidents Clinton and Bush , left the NRC to take an executive position at The Shaw Group , which has

8466-405: The prime minister recommends it), except for the prime minister, who is entitled to be styled " The Right Honourable " for life. Although not a member of the Executive Council, the governor-general usually presides at Council meetings. Cabinet ( Māori : Te Rūnanga ) is the senior decision-making body of the Government. Constitutional law, such as the Constitution Act 1986, does not recognise

8568-512: The principle of parliamentary sovereignty . Nonetheless, the Constitution Act describes the monarch as the " Sovereign ". In many areas, the Crown possesses a body of powers known as the royal prerogative . For example, the Royal Assent (the monarch's approval) is required to enact laws and the royal sign-manual gives authority to letters patent and orders in council . The royal prerogative also includes summoning and dissolving

8670-459: The public interest if the majority of its members were representatives of the private sector. They wrote that "having the FCC's policy-making process rely on input from individuals employed by, or affiliated with, the corporations that it is tasked with overseeing is the very definition of regulatory capture". The Food and Drug Administration is considered to suffer from regulatory capture. The Federal Reserve Bank of New York (New York Fed)

8772-540: The rate of growth of new firms. George Stigler , The Theory of Economic Regulation (1971) Regulatory capture theory is a core focus of the branch of public choice referred to as the economics of regulation ; economists in this specialty are critical of conceptualizations of governmental regulatory intervention as being motivated to protect public good . Often cited articles include Bernstein (1955), Huntington (1952), Laffont & Tirole (1991), and Levine & Forrence (1990). The theory of regulatory capture

8874-799: The regulation behavior, then created a new regulatory theory – regulatory economic theory. Of course, different divisions depend on the criteria for division, and they essentially depend on the researchers' different understanding of specific concepts. Justice Douglas' dissent in Sierra Club v. Morton (1972) describes concern that regulators become too favorable with their regulated industries. There are two basic types of regulatory capture: Another distinction can be made between capture retained by big firms and by small firms. While Stigler mainly referred to large firms capturing regulators by bartering their vast resources (materialist capture), small firms are more prone to retain non-materialist capture via

8976-588: The regulation of railway tariffs by the Interstate Commerce Commission (ICC) in 1887, revealed that regulations and market failures are not co-relevant. At least until the 1960s, regulation was developed in the direction of favoring producers, and regulation increased the profits of manufacturers within the industry. In potentially competitive industries such as trucking and taxis, regulations allow higher prices and prevent entrants. In monopoly industries such as electric power generation, there

9078-447: The regulation of safety. A report by the U.S. Department of Transportation found that FAA managers had allowed Southwest Airlines to fly 46 airplanes in 2006 and 2007 that were overdue for safety inspections, ignoring concerns raised by inspectors. Audits of other airlines resulted in two airlines grounding hundreds of planes, causing thousands of flight cancellations. The House Transportation and Infrastructure Committee investigated

9180-447: The regulator than relatively dispersed individual consumers, each with little incentive. When regulators form expert bodies to examine policy, these invariably feature current or former industry members, or at the very least, individuals with lives and contacts in the industry. Capture is also facilitated where consumers or taxpayers have a poorer understanding than businesses of underlying issues. Jon Hanson and his co-authors argue that

9282-400: The regulatory capture theory in the eyes of Posner (1974) and others. All these models reflect that regulators and legislators are trying to maximize private, not public, interests. They use "private interest" theory to explain the origin and purpose of regulation. Aton (1986) argues that Stigler's theoretical logic is clearer and more central than the previous "capture theory" hypothesis, but it

9384-538: The risks posed by such drilling and in a 2009 letter, accused MMS of understating the likelihood and potential consequences of a major spill in the Gulf of Mexico. The letter further accused MMS of highlighting the safety of offshore drilling while understating the risks and impact of spills and playing down the fact that spills had been increasing. Both current and former MMS staff scientists said their reports were overruled and altered if they found high risk of accident or environmental impact. Kieran Suckling, director of

9486-726: The scions of Wall Street banks, a time when banks and hedge funds were pursuing investment strategies that caused the 2007–2008 financial crisis , which the Fed failed to stop. During the crisis, several major banks that were on the verge of collapse were rescued via the Emergency Economic Stabilization Act of 2008 . Geithner engineered the New York Fed's purchase of $ 30 billion of credit default swaps from American International Group (AIG), which it had sold to Goldman Sachs , Merrill Lynch , Deutsche Bank and Société Générale . By purchasing these contracts,

9588-601: The side of the hill, engulfing Pantglas Junior School and a row of houses. Iain McLean and Martin Johnes, in a 2000 study of the Aberfan disaster, observed that Her Majesty's Inspectorate of Mines went largely unchallenged by the tribunal, although the two consider that the organisation failed in their duty, falling in line with the interests of the National Coal Board whose activities they were supposed to be overseeing. With

9690-770: The signing of the Treaty of Waitangi was the Charter for Erecting the Colony of New Zealand of 1840. New Zealand was granted colonial self-government in 1853 following the New Zealand Constitution Act 1852 , which was an act of the Parliament of the United Kingdom . Governments were set up at both central and provincial level, with initially six provinces. The provinces were abolished by

9792-554: The spotlight" in this role during a wave of far-reaching, and often controversial, economic reforms in the 1980s and early 1990s. This period also coincided with a general shift towards higher scrutiny of government activity and performance, making the Finance portfolio and Treasury operations more transparent. Since the 1950s, the Treasury has evolved from being a control agency to a "central agency". During this time, departments have become largely free to manage their own resources, with

9894-456: The stock of revolving door movements and regulatory capture. This leads to inequality of influence among firms in the same sector. It should also be noted that regulatory capture in developed country is not anymore related to corruption and illegal behavior, but to abuse of power. There is substantial academic literature suggesting that smaller government units are easier for small, concentrated industries to capture than large ones. For example,

9996-579: The three traditional branches of government—namely, the executive branch , legislative branch (the King-in-Parliament and House of Representatives ) and judicial branch (the Supreme Court and subordinate courts). Each branch operates independently of the others in an arrangement described as " separation of powers ". More commonly, the term is used to refer specifically to the executive branch. The largest party or coalition in

10098-533: Was chairman for four, was appointed president and chief executive officer of the National Cable & Telecommunications Association , a lobby group, effective April 25, 2011. His role has been the cable industry's leading advocate, spokesman, and representative in its relationship with the U.S. Congress, the Administration, the FCC, and other federal agencies. Meredith Attwell Baker was one of

10200-459: Was opposed to its implementation, specifically the proposed division of the country into European and Māori districts, and stated that settlers were not ready for self-government. As a result, almost all of the Act was suspended pending the new Act of 1852. New Zealand was at this time being governed as a Crown colony . Prior to the act, the basic document setting out the governance of New Zealand since

10302-502: Was tasked with the investigation of the FAA's certification process. Legal scholars have pointed to the possibility that federal agencies such as the Federal Communications Commission (FCC) had been captured by media conglomerates . Peter Schuck of Yale Law School has argued that the FCC is subject to capture by the media industries' leaders and therefore reinforce the operation of corporate cartels in

10404-556: Was to "[end] the department's coziness with the industries it regulates" but Daniel R. Patterson, a member of the Arizona House of Representatives , said "Salazar has a disturbingly weak conservation record, particularly on energy development, global warming, endangered wildlife and protecting scientific integrity. It's no surprise oil and gas, mining, agribusiness and other polluting industries that have dominated Interior are supporting rancher Salazar – he's their friend". Indeed,

#735264