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Political stability despite minority governments:
the New Zealand experience
14 July 2021
Presented by Wendy McGuinness
CEO, McGuinness Institute
Jeffrey Sachs Center on Sustainable Development
Sunway University, Malaysia
2
Research
Project 2058: Report 8 – Effective Māori
Representation in Parliament: Working towards
a National Sustainable Development Strategy
(Jul 2010)
Nation Dates: Timelines of significant events that
have shaped the history of Aotearoa New Zealand
(Fourth Edition, Dec 2020)
Think Piece 14: Constructing a House Fit for the
Future (Jun 2011)
Working Paper 2020/07 – Analysis of the 2017
Labour-New Zealand First Coalition Agreement,
three years on (Sep 2020)
Working Paper 2020/08 – Analysis of the 2017
Labour-Green Party Confidence and Supply
Agreement, three years on (Sep 2020)
Working Paper 2020/11 – A List of Coalition
Agreements and Support Agreements since 1996
(Jul 2021)
Agenda
1. Compare Malaysia with New Zealand
2. New Zealand’s system of government
3. Coalition agreements
4. Other forms of agreements
5. Further improvements?
6. Emergency 1: What was NZ’s constitutional response to COVID-19?
7. Emergency 2: What should NZ’s constitutional response to climate change be?
3
Malaysia
(as at 2021)
New Zealand
(as at 2021)
Area (land) 330,000 km² 270,000 km²
Population 32 million 5 million
Number of MPs 222
(144,000 per MP)
120
(42,000 per MP)
Number of women MPs 33 58
Type of electoral system FPP MMP
1. Compare Malaysia with New Zealand
4
• No written constitution
Other similar countries include the United Kingdom and Israel.
• One legislative chamber (a unicameral parliament)
Other similar countries include Sweden, Norway, Finland, Portugal, Denmark, Israel, Iceland and Taiwan.
• Two electoral rolls: General and Māori roll
• Three-year election cycle
Other similar countries include Australia, Mexico and the Philippines.
• Ninth-oldest continuously functioning parliament in the world
• MMP* (mixed-member proportional representation) from 1996
Other similar countries include Germany, Lesotho and Romania.
• The Executive Council comprises all Ministers of the Crown, whether those Ministers are inside
or outside Cabinet.
• The time between election and formation of government is managed by a caretaker convention
– which has two arms: when PM is not clear and when PM is clear but not appointed.
• The Cabinet Manual is the go-to document.
2. New Zealand’s system of government
* MMP is a mix of first past the post and party list.
5
Outcome of Elections
‘Under New Zealand’s proportional representation
electoral system, it is likely that two or more parties will
negotiate coalition or support agreements so that a
government can be formed, whether it is a majority or
minority government.
A coalition agreement provides for a closer relationship
between two or more parties than a support agreement,
a distinguishing characteristic of coalition agreements
being that coalition parties are represented in Cabinet.’
Cabinet Manual 2017
6
‘The origins of electoral reform lay in the gradual breakdown of public
trust and confidence in politicians, Parliament and the simple
certainties of the old two-party system.’
History of MMP
1852
1981 & 1984
First FPP election
During the election campaigns, the Labour Party promised to set up
a Royal Commission to explore a wide range of issues relating to the
electoral system.
Following Labour's victory, a Royal Commission on the Electoral
System was established in early 1985. A range of issues were
explored including whether the existing system of parliamentary
representation (FPP) should continue or whether an alternative
system/s should be put in place instead.
The Report of the Royal Commission on Electoral Reform was
published and recommended, among other things, MMP.
The first referendum was a vote on whether to keep or change
FPP, and if changing, to which system. The second was whether
to change the system to MMP under the Electoral Act 1993.
A further referendum reaffirmed the 1993 referendum.
1985
1986
1992 & 1993
2011
7
Origins of each party that went on to have an elected MP
8
1996 Majority coalition
B. A feature of MMP is the necessity for parties to consider coalition
agreements to enable the formation of a stable government. The
experience of similar democracies to New Zealand with coalition
governments is that policy is developed by consensus it being
recognised that co-operation is critical to the long-term stability of
coalition government.
C. Even though parties form coalitions the identity of each coalition
partner is recognised as being legitimate. It is accepted that
circumstances dictate that political parties going into coalition
should focus on their similarities, on what they have in common
and how they can bridge the gap between them in the interests
of the country as a whole. It is an extension of this process that
parties are able to co-operate in policy development and
administration to ensure the greater public good.
D. The parties recognise that no party has an absolute mandate to put
its own promised policies in place. The advancement of
administration and policy positions requires negotiation,
understanding, and practical resolution of differences to achieve an
acceptable position for the enduring of a coalition. Development of
policy is achieved through consensus and good sense. 9
The Electoral (Integrity) Amendment Act 2018 requires party-hopping MPs to vacate
their seats. The amendment states: ‘The seat of any member of Parliament shall
become vacant [if] … he or she ceases to be a parliamentary member of the political
party for which he or she was elected.’
Arguments in support of the existing legislation:
• Maintains certainty over electoral proportionality in Parliament
Arguments against the existing legislation:
• Compromises free speech in Parliament
• Concentrates too much power in party leaders
• Contradicts core Kiwi value of tolerating dissent
Party-hopping (waka-jumping)
10
Under MMP, there are four types of government that are likely to eventuate
(although other permutations are possible):
Majority single-party
(single party with over 50% or more of the
seats in the House held by one political
party)
Minority single-party
(single party with 50% or less of the seats
in the House held by one political party)
Majority coalition
(multiple parties with over 50% or more
of the seats in the House govern together)
Minority coalition
(multiple parties with 50% or less of
the seats in the House govern together)
1
2
3
4
Most
control
Least
control
3. Types of Government
11
Type of government formed Year signed
Majority single-party
(single party with over 50% or more of the
seats in the House held by one political party)
2020
Minority single-party
(single party with 50% or less of the seats
in the House held by one political party)
2008, 2011, 2014
Majority coalition
(multiple parties with over 50% or more
of the seats in the House govern together)
1996
Minority coalition
(multiple parties with 50% or less of
the seats in the House govern together)
1999, 2002, 2005, 2017
Types of government formed since 1996
1
2
3
4
12
Majority single-party
(e.g. Labour Party in 2020, 65 out of 120 seats)
1
Co-operation agreement
13
Minority single-party
(e.g. National Party in 2008, 58 out of 122 seats)
2
Confidence and supply agreement
14
How the formation of government eventuates
15
Time between election and signing of coalition agreement
Date
of election
Date
coalition agreement
signed
Days between
election and
signing of
coalition
agreement
12 Oct 1996 9 Dec 1996 58
27 Nov 1999 6 Dec 1999 10
27 Jul 2002 8 Aug 2002 12
17 Sep 2005 17 Oct 2005 30
23 Sep 2017 24 Oct 2017 31
16
Majority coalition
(e.g. National Party and NZ First in 1996, 61 out of 120 seats)
3
Coalition agreement
17
Minority coalition
(e.g. Labour Party and NZ First 2017, 55 out of 120 seats)
4
Coalition agreement
Confidence and supply agreement 18
Confidence and supply* agreements
For example, in the 2017 Labour/Green confidence and supply agreement, the Green
Party committed ‘to provide confidence and supply support’ by voting in support.
Co-operation agreements
In contrast, in the 2020 Labour/Green co-operation agreement, the Green Party must
not oppose ‘votes on matters of confidence and supply’. They must either vote with the
Labour government or abstain from voting.
Notably, the agreement also states that the Minister of Climate Change is from the Green
Party. Therefore, the Minister is not a member of the (ENV) Cabinet Environment, Energy
and Climate Committee (although he does receive all relevant Cabinet Papers and does
attend the committee when his portfolio is being discussed).
4. Other forms of agreements
* Supply refers to the budget and the estimates of appropriations for the Government.
19
Types of political agreements since 1996
20
Page length of coalition agreements, confidence and supply
agreements and co-operation agreements since 1996
21
Significant political party agreements since 1996
22
• Transparency: Political party agreements that shape the formation of government should
not only be signed in public, but be tabled in the House.
• Reports on policy implementation: Agreements should be reviewed and tabled in the House
as a matter of good practice on the last day of the House (before the election). For New Zealand,
this would mean agreements are independently reviewed say six to eight weeks before the
next election in order for the public to understand what policy was implemented and how the
coalition worked in practice.
• Party-hopping legislation should only apply to confidence and supply: The existing waka-
jumping legislation is a blunt instrument. Arguably, rogue MPs should only be required to vote
along confidence and supply lines with the political party they came to the House to represent.
• Proportional representation: In cases where a single-party majority does not occur, the two
largest parties should be expected to meet first to try and form a working relationship (as practised
in Germany). This is because MMP should aim to maximise proportional representation
of votes counted.
5. Further improvements
23
6. Emergency 1: What was NZ’s constitutional response to COVID-19?
December 2005
NZ Accountants Journal, 2005
24
Distancing strategy: flattening the COVID-19 curve
11 March 2020 (2 weeks before New Zealand entered Alert Level 4, a nationwide lockdown)
25
New Zealand’s COVID-19 governance structure
25 March 2020
26
The Long Normal
April 2020
Why complacency must be avoided
The four pandemics in the last century (mentioned above)
were all types of influenza. They all come from one family of
viruses: technically known as A(H1N1), A(HSN2), A(H3N2)
and A(H1N1) respectively. In contrast, COVID-19 is a disease
generated by a human coronavirus. Importantly, human
coronaviruses have only been around since the 1960s;
before that time coronaviruses were only found in
animals.
What is concerning is that two smaller human coronavirus
outbreaks have occurred over the last 17 years: the 2003
Severe Acute Respiratory Syndrome (SARS) (technically
called SARSCoV) and the 2012 Middle East Respiratory
Syndrome (MERS) (technically called MERS-CoV). The
COVID-19 pandemic is therefore the third significant
human coronavirus outbreak in just under two decades.
27
What can we improve?
June 2021 Figure 2: NZ COVID-19 vaccinations
Figure 3: UK COVID-19 vaccinations
28
Our pandemic future
2017: The CDC Pandemic Severity Assessment Framework (PSAF)
29
7. Emergency 2: What should NZ’s constitutional response to
Nationally
• Non-partisan approach
• Share key data and experts
• Make all information and discussions publicly available
• Engage early with those that are likely to be harmed or disadvantaged
• Prepare national reserves of key resources for storms, wildfires, droughts etc. and position
strategically around the country
• Build key infrastructure and transportation away from the coast
• Design health care systems for heat strokes, burns, diseases etc.
Globally
• Build trust with neighbors and nation states more broadly
• … and of course, reduce emissions.
climate change be?
30
Final thoughts?
Q1: What do the two emergencies have in common?
Both emergencies have global impacts, require trust in government, require considerable
investment in infrastructure, are dependent on ‘game theory’ to resolve, and require a non-
partisan approach at state and global governance levels. They have created and will continue
to create constitutional stress.
For example, an elimination/isolation strategy in one country will simply isolate the country;
we need to all find a way to open up safely. This is also the case for climate change; an emissions
reduction plan in one country will not prevent the consequences of climate change if other
countries do not act to reduce emissions.
Q2: How might these two emergencies merge?
For example, to what extent could climate change help create/circulate more viruses etc.,
and pandemics hamper our ability to reduce emissions and build the necessary infrastructure?
The health care system will be critical as the planet heats up.
Q3: Do global problems require global governance to solve?
Do we need centralised global governance with a constitution and an electoral system?
How would this be organised?
31
Thank you
Nga mihi
Learn more at: www.mcguinnessinstitute.org
Jeffrey Sachs Center on Sustainable Development
14 July 2021

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Political stability [the nz experience]

  • 1. Political stability despite minority governments: the New Zealand experience 14 July 2021 Presented by Wendy McGuinness CEO, McGuinness Institute Jeffrey Sachs Center on Sustainable Development Sunway University, Malaysia
  • 2. 2 Research Project 2058: Report 8 – Effective Māori Representation in Parliament: Working towards a National Sustainable Development Strategy (Jul 2010) Nation Dates: Timelines of significant events that have shaped the history of Aotearoa New Zealand (Fourth Edition, Dec 2020) Think Piece 14: Constructing a House Fit for the Future (Jun 2011) Working Paper 2020/07 – Analysis of the 2017 Labour-New Zealand First Coalition Agreement, three years on (Sep 2020) Working Paper 2020/08 – Analysis of the 2017 Labour-Green Party Confidence and Supply Agreement, three years on (Sep 2020) Working Paper 2020/11 – A List of Coalition Agreements and Support Agreements since 1996 (Jul 2021)
  • 3. Agenda 1. Compare Malaysia with New Zealand 2. New Zealand’s system of government 3. Coalition agreements 4. Other forms of agreements 5. Further improvements? 6. Emergency 1: What was NZ’s constitutional response to COVID-19? 7. Emergency 2: What should NZ’s constitutional response to climate change be? 3
  • 4. Malaysia (as at 2021) New Zealand (as at 2021) Area (land) 330,000 km² 270,000 km² Population 32 million 5 million Number of MPs 222 (144,000 per MP) 120 (42,000 per MP) Number of women MPs 33 58 Type of electoral system FPP MMP 1. Compare Malaysia with New Zealand 4
  • 5. • No written constitution Other similar countries include the United Kingdom and Israel. • One legislative chamber (a unicameral parliament) Other similar countries include Sweden, Norway, Finland, Portugal, Denmark, Israel, Iceland and Taiwan. • Two electoral rolls: General and Māori roll • Three-year election cycle Other similar countries include Australia, Mexico and the Philippines. • Ninth-oldest continuously functioning parliament in the world • MMP* (mixed-member proportional representation) from 1996 Other similar countries include Germany, Lesotho and Romania. • The Executive Council comprises all Ministers of the Crown, whether those Ministers are inside or outside Cabinet. • The time between election and formation of government is managed by a caretaker convention – which has two arms: when PM is not clear and when PM is clear but not appointed. • The Cabinet Manual is the go-to document. 2. New Zealand’s system of government * MMP is a mix of first past the post and party list. 5
  • 6. Outcome of Elections ‘Under New Zealand’s proportional representation electoral system, it is likely that two or more parties will negotiate coalition or support agreements so that a government can be formed, whether it is a majority or minority government. A coalition agreement provides for a closer relationship between two or more parties than a support agreement, a distinguishing characteristic of coalition agreements being that coalition parties are represented in Cabinet.’ Cabinet Manual 2017 6
  • 7. ‘The origins of electoral reform lay in the gradual breakdown of public trust and confidence in politicians, Parliament and the simple certainties of the old two-party system.’ History of MMP 1852 1981 & 1984 First FPP election During the election campaigns, the Labour Party promised to set up a Royal Commission to explore a wide range of issues relating to the electoral system. Following Labour's victory, a Royal Commission on the Electoral System was established in early 1985. A range of issues were explored including whether the existing system of parliamentary representation (FPP) should continue or whether an alternative system/s should be put in place instead. The Report of the Royal Commission on Electoral Reform was published and recommended, among other things, MMP. The first referendum was a vote on whether to keep or change FPP, and if changing, to which system. The second was whether to change the system to MMP under the Electoral Act 1993. A further referendum reaffirmed the 1993 referendum. 1985 1986 1992 & 1993 2011 7
  • 8. Origins of each party that went on to have an elected MP 8
  • 9. 1996 Majority coalition B. A feature of MMP is the necessity for parties to consider coalition agreements to enable the formation of a stable government. The experience of similar democracies to New Zealand with coalition governments is that policy is developed by consensus it being recognised that co-operation is critical to the long-term stability of coalition government. C. Even though parties form coalitions the identity of each coalition partner is recognised as being legitimate. It is accepted that circumstances dictate that political parties going into coalition should focus on their similarities, on what they have in common and how they can bridge the gap between them in the interests of the country as a whole. It is an extension of this process that parties are able to co-operate in policy development and administration to ensure the greater public good. D. The parties recognise that no party has an absolute mandate to put its own promised policies in place. The advancement of administration and policy positions requires negotiation, understanding, and practical resolution of differences to achieve an acceptable position for the enduring of a coalition. Development of policy is achieved through consensus and good sense. 9
  • 10. The Electoral (Integrity) Amendment Act 2018 requires party-hopping MPs to vacate their seats. The amendment states: ‘The seat of any member of Parliament shall become vacant [if] … he or she ceases to be a parliamentary member of the political party for which he or she was elected.’ Arguments in support of the existing legislation: • Maintains certainty over electoral proportionality in Parliament Arguments against the existing legislation: • Compromises free speech in Parliament • Concentrates too much power in party leaders • Contradicts core Kiwi value of tolerating dissent Party-hopping (waka-jumping) 10
  • 11. Under MMP, there are four types of government that are likely to eventuate (although other permutations are possible): Majority single-party (single party with over 50% or more of the seats in the House held by one political party) Minority single-party (single party with 50% or less of the seats in the House held by one political party) Majority coalition (multiple parties with over 50% or more of the seats in the House govern together) Minority coalition (multiple parties with 50% or less of the seats in the House govern together) 1 2 3 4 Most control Least control 3. Types of Government 11
  • 12. Type of government formed Year signed Majority single-party (single party with over 50% or more of the seats in the House held by one political party) 2020 Minority single-party (single party with 50% or less of the seats in the House held by one political party) 2008, 2011, 2014 Majority coalition (multiple parties with over 50% or more of the seats in the House govern together) 1996 Minority coalition (multiple parties with 50% or less of the seats in the House govern together) 1999, 2002, 2005, 2017 Types of government formed since 1996 1 2 3 4 12
  • 13. Majority single-party (e.g. Labour Party in 2020, 65 out of 120 seats) 1 Co-operation agreement 13
  • 14. Minority single-party (e.g. National Party in 2008, 58 out of 122 seats) 2 Confidence and supply agreement 14
  • 15. How the formation of government eventuates 15
  • 16. Time between election and signing of coalition agreement Date of election Date coalition agreement signed Days between election and signing of coalition agreement 12 Oct 1996 9 Dec 1996 58 27 Nov 1999 6 Dec 1999 10 27 Jul 2002 8 Aug 2002 12 17 Sep 2005 17 Oct 2005 30 23 Sep 2017 24 Oct 2017 31 16
  • 17. Majority coalition (e.g. National Party and NZ First in 1996, 61 out of 120 seats) 3 Coalition agreement 17
  • 18. Minority coalition (e.g. Labour Party and NZ First 2017, 55 out of 120 seats) 4 Coalition agreement Confidence and supply agreement 18
  • 19. Confidence and supply* agreements For example, in the 2017 Labour/Green confidence and supply agreement, the Green Party committed ‘to provide confidence and supply support’ by voting in support. Co-operation agreements In contrast, in the 2020 Labour/Green co-operation agreement, the Green Party must not oppose ‘votes on matters of confidence and supply’. They must either vote with the Labour government or abstain from voting. Notably, the agreement also states that the Minister of Climate Change is from the Green Party. Therefore, the Minister is not a member of the (ENV) Cabinet Environment, Energy and Climate Committee (although he does receive all relevant Cabinet Papers and does attend the committee when his portfolio is being discussed). 4. Other forms of agreements * Supply refers to the budget and the estimates of appropriations for the Government. 19
  • 20. Types of political agreements since 1996 20
  • 21. Page length of coalition agreements, confidence and supply agreements and co-operation agreements since 1996 21
  • 22. Significant political party agreements since 1996 22
  • 23. • Transparency: Political party agreements that shape the formation of government should not only be signed in public, but be tabled in the House. • Reports on policy implementation: Agreements should be reviewed and tabled in the House as a matter of good practice on the last day of the House (before the election). For New Zealand, this would mean agreements are independently reviewed say six to eight weeks before the next election in order for the public to understand what policy was implemented and how the coalition worked in practice. • Party-hopping legislation should only apply to confidence and supply: The existing waka- jumping legislation is a blunt instrument. Arguably, rogue MPs should only be required to vote along confidence and supply lines with the political party they came to the House to represent. • Proportional representation: In cases where a single-party majority does not occur, the two largest parties should be expected to meet first to try and form a working relationship (as practised in Germany). This is because MMP should aim to maximise proportional representation of votes counted. 5. Further improvements 23
  • 24. 6. Emergency 1: What was NZ’s constitutional response to COVID-19? December 2005 NZ Accountants Journal, 2005 24
  • 25. Distancing strategy: flattening the COVID-19 curve 11 March 2020 (2 weeks before New Zealand entered Alert Level 4, a nationwide lockdown) 25
  • 26. New Zealand’s COVID-19 governance structure 25 March 2020 26
  • 27. The Long Normal April 2020 Why complacency must be avoided The four pandemics in the last century (mentioned above) were all types of influenza. They all come from one family of viruses: technically known as A(H1N1), A(HSN2), A(H3N2) and A(H1N1) respectively. In contrast, COVID-19 is a disease generated by a human coronavirus. Importantly, human coronaviruses have only been around since the 1960s; before that time coronaviruses were only found in animals. What is concerning is that two smaller human coronavirus outbreaks have occurred over the last 17 years: the 2003 Severe Acute Respiratory Syndrome (SARS) (technically called SARSCoV) and the 2012 Middle East Respiratory Syndrome (MERS) (technically called MERS-CoV). The COVID-19 pandemic is therefore the third significant human coronavirus outbreak in just under two decades. 27
  • 28. What can we improve? June 2021 Figure 2: NZ COVID-19 vaccinations Figure 3: UK COVID-19 vaccinations 28
  • 29. Our pandemic future 2017: The CDC Pandemic Severity Assessment Framework (PSAF) 29
  • 30. 7. Emergency 2: What should NZ’s constitutional response to Nationally • Non-partisan approach • Share key data and experts • Make all information and discussions publicly available • Engage early with those that are likely to be harmed or disadvantaged • Prepare national reserves of key resources for storms, wildfires, droughts etc. and position strategically around the country • Build key infrastructure and transportation away from the coast • Design health care systems for heat strokes, burns, diseases etc. Globally • Build trust with neighbors and nation states more broadly • … and of course, reduce emissions. climate change be? 30
  • 31. Final thoughts? Q1: What do the two emergencies have in common? Both emergencies have global impacts, require trust in government, require considerable investment in infrastructure, are dependent on ‘game theory’ to resolve, and require a non- partisan approach at state and global governance levels. They have created and will continue to create constitutional stress. For example, an elimination/isolation strategy in one country will simply isolate the country; we need to all find a way to open up safely. This is also the case for climate change; an emissions reduction plan in one country will not prevent the consequences of climate change if other countries do not act to reduce emissions. Q2: How might these two emergencies merge? For example, to what extent could climate change help create/circulate more viruses etc., and pandemics hamper our ability to reduce emissions and build the necessary infrastructure? The health care system will be critical as the planet heats up. Q3: Do global problems require global governance to solve? Do we need centralised global governance with a constitution and an electoral system? How would this be organised? 31
  • 32. Thank you Nga mihi Learn more at: www.mcguinnessinstitute.org Jeffrey Sachs Center on Sustainable Development 14 July 2021