Maori party co-leaders  Pita Sharples and Tariana Turia with Prime Minister John Key after signing a confidence and supply agreement in 2011 (Photo by Marty Melville/Getty Images)
Maori party co-leaders Pita Sharples and Tariana Turia with Prime Minister John Key after signing a confidence and supply agreement in 2011 (Photo by Marty Melville/Getty Images)

OPINIONPoliticsSeptember 24, 2020

The true legacy of minor parties in government

Maori party co-leaders  Pita Sharples and Tariana Turia with Prime Minister John Key after signing a confidence and supply agreement in 2011 (Photo by Marty Melville/Getty Images)
Maori party co-leaders Pita Sharples and Tariana Turia with Prime Minister John Key after signing a confidence and supply agreement in 2011 (Photo by Marty Melville/Getty Images)

The Māori Party’s time in government with National proves the impact of minor parties isn’t always measurable by the number of bills they pass or the amount of funding they secure, but also its impact on the political tone, argues Ben Thomas. 

After Tuesday’s lacklustre leader’s debate, one question hung in the air: where were Māori? Discussion of policy particularly affecting Māori, and the Treaty, were notably absent.

In a historical and limited way, this may be seen as a good thing. Bipartisan support for the Treaty settlement process (which for many years was the signal “Māori” issue in elections) and the evolving post-settlement relationship with iwi is one of the great markers of progress in New Zealand democracy over the past decade. When “Māori issues” (which were usually defined in that narrow sense) surfaced in election campaigns, it was usually as the result of divisive, populist politicking.

It’s even better that its absence was not simply noticed, but was noticeably jarring. It reflects the increasing recognition that the Treaty’s significance isn’t merely confined to the settlement process or RMA consultation, but goes much wider to the way government works in New Zealand.

In large part, we can thank the Māori Party for this, and specifically for its time in government with National.

Its influence in government may be instructive for the (seemingly large) parts of the electorate writing off voting for minor parties, as the political centre swells in density in the Labour and National parties.

John Key brought the Māori Party into his government in 2008 along with Act and United Future in order to give his government maximum leverage to its right and its centre on different issues, and as an insurance policy for future elections.

The Māori Party was much maligned by the left and its own supporters (and, during the 2008-2011 term, by one of its own MPs, Hone Harawira) for its closeness to Key. And like other minor parties in that government, its policy achievements were solid but not spectacular.

Māori Party co-leader Dame Tariana Turia created Whānau Ora, a counterpart to Bill English’s social investment strategy, that was more intuitive and based on community connections than in big data number crunching. The party secured the repeal of the hated Foreshore and Seabed Act and supported the replacement Marine and Coastal Area (Takutai Moana) Act.

Then Māori Party co-leader Tariana Turia in 2014 (Photo by Hagen Hopkins/Getty Images)

Where the Māori Party did have significant, and likely lasting, influence was in the tone of politics during that time.

With an eponymous Māori Party not just in parliament but in government, every new policy or initiative was suddenly subject to the question that was so absent from Tuesday’s debate: “what does this mean for Māori and the Treaty?”

Treaty principles compliance had long been treated at best as a litigation risk and at worst as an afterthought. Now, the very concrete effects on a real constituency were front and centre in the minds of Beehive staff, ministers, bureaucrats and the media – as well as opposition looking to drive a wedge in the government.

Key was elected only three years after Don Brash’s failed race-baiting campaign in 2005. Key himself campaigned on abolishing the Māori electorate seats. However, in order to court the Māori Party, that policy shifted to the position it maintains today, after the parliamentary departure of its support party and its dumping from government – that National believes in the abolition of the Māori seats, but only when it’s what Māori want.

This is perhaps a very roundabout way of getting to this point: smaller parties have been routinely punished after stints in government. But their impact isn’t always measurable by the number of bills they pass or even by the dollars they secure in funding.

It’s perhaps this instinct which has brought support back to the Greens and continued to grow Act’s vote in this week’s Colmar Brunton poll.

The latest 1 News/Colmar Brunton poll sees Act and the Greens up (Photo: TVNZ)

It’s become fashionable to discount the Greens’ achievements in government, particularly when measured in gross dollar terms against its swaggering senior counterpart, New Zealand First. Where James Shaw secured a $100 million Green Bank to lend for green energy projects with a solid business case at commercial interest rates, Winston Peters secured a $3 billion Provincial Growth Fund to hand out for free, essentially however Shane Jones liked.

But even if it smacks of the homeopathic theories that Greens like the very competent associate health minister Julie Ann Genter has fought to disassociate themselves from, it’s true that the influence of minor parties doesn’t necessarily show up in the hard numbers, but in a change in the energy of a government.

Similarly, no-one would pretend that National is unfamiliar with the notions of property rights and personal freedoms. But being part of a broad church party prevents MPs like Chris Bishop from being the same kind of animating force Act leader David Seymour has proved over the past three years.

Act isn’t just safe, with Seymour secure in Epsom, but flourishing. The Greens, without the safety of an electorate seat, may still hover on the margins of oblivion.

Progressive voters wanting continued action on climate change, environmental standards or inequality but frustrated by the Greens’ seeming lack of progress in this current government, may think back to the lessons from the Māori Party.

It still exists, of course, and is currently battling to re-enter parliament, with its best opportunity being through its very impressive co-leader Debbie Ngarewa Packer. But it’s a longshot, and the neglect of even the word “Māori” in the first leaders’ debate shows that in politics, out of sight can be out of mind.

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Image: Jihee Junn/RNZ
Image: Jihee Junn/RNZ

OPINIONPoliticsSeptember 24, 2020

The courage to make life better

Image: Jihee Junn/RNZ
Image: Jihee Junn/RNZ

Labour has made an extraordinary ascent in the polls and is now clinging to a mostly non-threatening brand of centrism. Hayden Donnell counts the cost of that strategy. 

Cast your mind back to 2016. As Bill English rolled out his budget, Grant Robertson issued what looked like a criticism. In an article headlined “a Budget that lacks vision and courage to make life better”, he accused English and prime minister John Key of “refusing to take on the housing crisis”.

He wrote: “It is astonishing that nothing has been introduced to tackle demand in the housing market and that there’s nothing for first home buyers locked out of the Kiwi dream of homeownership.”

Many people would have taken Robertson’s words as a promise to be more visionary and courageous once he became finance minister. They made a big mistake. Last week, Robertson issued a release clarifying his position: Key and English were actually good at running budgets, he said, before excoriating his National Party rival Paul Goldsmith for clumsily misplacing $4 billion in his financial plan. “There is no John Key or Bill English there any more. No one who knows how to run a budget would have made a basic mistake like this.”

Robertson’s implied pitch to Key and English’s voters is that Labour is the real heir to the fifth National government. It’s him – not Goldsmith – who’s really carrying on the proud traditions of the pair who, in his own words, lacked the “vision and courage to make life better”.

There’s at least a grain of truth to the sales pitch. Over the last few months, Labour has presided over New Zealand’s biggest upward redistribution of wealth since Key and English paid for tax cuts that primarily benefited the rich by adding the cost onto poor people’s grocery bills. While keeping people in work, the $14 billion Covid-19 wage subsidy has delivered huge, government-subsidised profits to the shareholders of some of New Zealand’s richest companies.

At the same time, the Reserve Bank has kept interest rates at record lows, gifting property owners a $64 billion support package and flooding our already thermonuclear housing market with cheap cash. House prices have implausibly gone up. Rents have too. New Zealand’s landed gentry is richer than ever before while people who don’t own a home are often worse off than they were under Key. If first homes were out of reach in 2016, they’re now a disappearing speck on the horizon, hurtling toward outer orbit.

Finance minister Grant Robertson (Photo: Getty/Hagen Hopkins/Stringer)

Politicians can defend these distorted conditions: the wage subsidy was necessary to keep the economy afloat during a global pandemic, and low-interest rates stimulate spending which keeps people in jobs. These arguments would be more palatable if the government was also taking brave steps to mitigate the widening inequality its own policy settings are creating. 

Instead, it has clutched tight to its political capital. At the midpoint of Tuesday’s leaders debate between Labour leader Jacinda Ardern and National leader Judith Collins, Auckland City Missioner Chris Farrelly asked a question about the people he sees who are poor and getting poorer. He talked about parents working two or three jobs and still struggling to pay rent and put food on the table. “If you’re the next government what is your plan for addressing income inadequacy and wealth inequality in New Zealand?” he asked.

In response, Ardern talked first about state house construction. The government has built or is in the process of building roughly 7,000 houses and is planning 8,000 more. It has lifted the minimum wage, put benefits up $25, and advocated for more employers to pay a living wage. If she had more time, Ardern might’ve added that it had taken steps to enable affordable housing, most notably by eliminating mandatory parking minimums and stopping Nimby-possessed councils implementing density controls in the places most people want to live.

Those are real achievements, but the answer was notable for what wasn’t mentioned. The government has also fallen far short of the recommendations from its own welfare advisory group which has called for core benefits to be immediately raised by up to 47%.  Economist Shamubeel Eaqub says implementing those recommendations would immediately smooth the sharpest edges of inequality while helping stimulate the economy because people on low incomes spend most of their money. Keeping those people in poverty is a political choice, he says. “You don’t win elections by promising to pay more on benefits. Even in a pandemic, even in a big recession, even if it will actually make New Zealand better and help the economy.”

Prime minister Jacinda Ardern (Photo: Mark Mitchell/Getty Images)

Instead of meaningfully adjusting benefits, Labour has taken what, in some cases, seems like an actively punitive approach to those struggling with rising rents in a spiralling housing market. On Monday, Newsroom’s Dileepa Fonseka reported that the party was reviving its plan to charge people 25% of their income to stay in emergency housing. Social welfare minister Carmel Sepuloni said the charges were to “incentivise” people to move into transitional homes or private housing, though Eaqub is doubtful that many families are truly choosing to cram long-term into cheap motel rooms because they love the feng shui. “It’s stupid. It’s disgusting,” he says. “You failed in the first instance by not building enough social housing, and now you say because you’re on the bones of your arse, we’re going to take more money from you, and if you can’t pay it then we’re going to put you in debt.” 

Labour’s tax policy also seems designed to lock in existing inequalities. Its sole adjustment would be to raise the tax rate to 39% for incomes over $180,000 – the top 2% of earners. There’s no tax break for the working poor; no demand that property owners share any of their government and Reserve Bank-enabled profit.

The Greens have proposed a more progressive tax system, calling for a guaranteed minimum income funded by a tax on wealth. But Labour wouldn’t have to copy its actually leftwing allies. Eaqub points out that the tax system under Scott Morrison’s Australian government has a 0% tax rate for people’s first $18,200 of income, and a 45% rate for incomes above $180,000. Boris Johnson’s UK government also has a tax-free threshold of £12,500. “I just look at Australia in particular and I think ‘how is it that they have a tax system that is so much more progressive than ours?’,” Eaqub says. “New Zealand has this myth about how we’re a highly taxed country, and we really believe it. When it comes to wealth or higher incomes, we’re not highly taxed, and there’s a lot of vested interests in keeping it that way.”

Labour under Robertson is too pragmatic and sensible to follow in the footsteps of known pinkos like Scott Morrison and Boris Johnson. It has instead pursued policies that have left it unable to truly address the magnitude of the problems facing the working poor, beneficiaries, and just about everyone who doesn’t already own a home. Last month, health minister Chris Hipkins said free dental care was off the table because it’s unaffordable in the “current economic environment”. Maybe that’s true, but it’s hard to square with the government’s lack of similar qualms about propping up Briscoes’ profit margin.

The truth is Labour doesn’t want to fight for a tax system that could fund free dental care, or for a budget that prioritises that kind of expenditure above dumping gold into a Scrooge McDuck-style vault inside Rod Duke’s Herne Bay mansion*. Former Labour advisor Clint Smith describes its strategy as a play for broad-spectrum political dominance. In his eyes, the party wants to create a kind of eternal government of the median New Zealander, and to slowly, but enduringly, tilt politics in a slightly kinder direction. To do that, it needs to avoid annoying even a single rental property-owning Boomer, who it fears will switch their vote back to National the second someone looks at their $4 million capital gain the wrong way. 

That’s an easy calculation to justify in the abstract. It’s much harder in the real world. The bill for Labour’s hoarded political capital is paid in a grim currency: young people locked out of the housing market for good, renters paying 65% of their income to rapacious landlords, and desperate families handing over 25% of their pay cheque to authorities who want to be sure they’re not getting too comfortable in their motels. All this is taking place while the already rich reap the benefits of a generous tax system and eye-watering profits on property under the watchful eye of a supposedly left-wing government. If that’s the cost of popularity, Labour’s leaders have signalled they’re willing to stump up. But they’re not the ones actually paying the price.

* The existence of this vault has not been independently verified