Regional Investment Corporation Amendment Bill

1. Title

This Act is the Regional Investment Corporation Amendment Act 2019.

2. Commencement

This Act comes into force the day after the date on which it receives the Royal Assent.

3. Purpose

The purpose of this Bill, recognising the impacts of both climate change and climate change mitigation on regional economies, is to expand the Regional Investment Corporation's mandate to allow it to provide financial assistance for the purposes of economic development and sustainable job creation in regions impacted negatively by both climate change and efforts to combat climate change, and to provide financial assistance for infrastructure projects that will mitigate the impacts of climate change on communities.

4. Principal Act

This Act amends the Regional Investment Corporation Act 2018 (the principal Act).

5. Section 3 amended (Interpretation)

In section (3)(1), insert the following new definitions in the appropriate alphabetical order:

• climate change impacted communities mean communities or regions who are negatively impacted either by the impacts of climate change, or the impacts of measures to reduce greenhouse gas emissions, as designated by the Regional Investment Corporation and the Climate Change Commission
• Climate Change Commission refers to the Climate Change Commission set up under the Zero Carbon Act 2017
• climate change impact mitigation infrastructure means infrastructure with the purpose of mitigating impacts of climate change or adapting a community or region to the impacts of climate change
• local community means the community or region significantly or partly reliant on the particular mining project for employment or economic development which is the source of the relevant mining royalties, as deemed by the Regional Investment Corporation
• sustainable jobs are jobs that have minimal environmental impact or have a clearly demonstrated impact towards improving environmental conditions and will likely provide permanent long term employment

6. Section 5 amended (Functions of the Corporation)

• (1) After section 5(c), insert the following new subsections:

• (ca) to administer, on behalf of the Government, financial assistance to foster economic development and sustainable job creation in climate change impacted communities, including by:
  • (i) liaising, negotiating and cooperating on possible economic development and sustainable job creation projects; and
  • (ii) providing advice to responsible Ministers in relation to economic development and sustainable job creation projects; and
  • (iii) implementing directions of the responsible Ministers under section 9(3) to enter into agreements, on behalf of the Government, for the grant of financial assistance to in relation to economic development and sustainable job creation projects; and
  • (iv) reviewing financial assistance granted, and the terms and conditions on which such financial assistance is granted, periodically;
• (cb) to administer, on behalf of the Government, financial assistance in relation to climate change impact mitigation infrastructure projects, including by:
  • (i) liaising, negotiating and cooperating on possible climate change impact mitigation infrastructure projects; and
  • (ii) providing advice to responsible Ministers on a climate change impact mitigation infrastructure project; and
  • (iii) implementing directions of the responsible Ministers under section 9(3) to enter into agreements, on behalf of the Government, for the grant of financial assistance to in relation to climate change impact mitigation infrastructure projects; and
  • (iv) reviewing financial assistance granted, and the terms and conditions on which such financial assistance is granted, periodically;

• (2) In section 5(c)(iii), replace "subsection 12(3)" with "section 9(3)".

7. Section 9 amended (Responsible Ministers may give other directions to the Corporation)

• (1) After section (4), insert the following new sections:

Economic Development and Sustainable Job Creation Projects

• (4A) The responsible Ministers and the Minister for the Environment may give a written direction to the Corporation to enter into an agreement, on behalf of the Government, for the grant of financial assistance in relation to a particular economic development and sustainable job creation project. The direction may specify terms and conditions to be included in the agreement.
• (4B) Before giving a direction under subsection (4A), the responsible Ministers and the Minister for the Environment must seek the Board’s advice on the particular rural infrastructure project to which the direction relates, and the advice of the Climate Change Commission.

Climate Change Impact Mitigation Infrastructure Projects

• (4C) The responsible Ministers and the Minister for the Environment may give a written direction to the Corporation to enter into an agreement, on behalf of the Government, for the grant of financial assistance in relation to a particular climate change impact mitigation infrastructure project. The direction may specify terms and conditions to be included in the agreement.
• (4D) Before giving a direction under subsection (4C), the responsible Ministers and the Minister for the Environment must seek the Board’s advice on the particular rural infrastructure project to which the direction relates, and the advice of the Climate Change Commission.

8. Section 13 amended (Appointment of Board members)

• (1) In section 13(2)(a)(viii), replace "." with ";".
• (2) In Section 13(2)(a), insert the following in the appropriate order:

• (ix) environmental policy and management;
• (x) te ao Māori and katiakitanga.

9. New section 5A inserted (Distribution of mining royalties)

After section 5, insert the following new section 5A:

5A. Distribution of mining royalties

• (1) The government must allocate 30% of all royalties paid under section 99H of the Crown Minerals Act 1991 to the Regional Investment Corporation.
• (2) The Regional Investment Corporation must invest money allocated under subsection (1) within the local community with the purpose of fostering long term economic stability.
• (3) The government must allocate 10% of all royalties paid under section 99H of the Crown Minerals Act 1991 to the Regional Investment Corporation.
• (4) The Regional Investment Corporation must use money allocated under subsection (3) to provide financial assistance to foster economic development and sustainable job creation in climate change impacted communities and in relation to climate change impact mitigation infrastructure projects.

B.137 - Regional Investment Corporation Amendment Bill - is sponsored by the Minister of Regional Development /u/BloodyChrome (Opportunities) on behalf of the Government and was written by /u/imnofox.

Committee of the whole house will conclude at 4:00pm, 27 March 2019.