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Economist Brian Easton asks: Why doesn’t our government reflect New Zealanders; why doesn’t Parliament make them?

Public Policy / opinion
Economist Brian Easton asks: Why doesn’t our government reflect New Zealanders; why doesn’t Parliament make them?

This is a re-post of an article originally published on pundit.co.nz. It is here with permission.


There will be many claims over the next few months that the minor parties will hold the major parties/politics/New Zealanders to ransom. That reflects a misunderstanding of how our system works. Any ransom occurs because the two main parties will not contemplate a ‘grand coalition’ of the two forming the government. It has happened in the past – during the First World War and the Great Depression – but nobody considers that possibility nowadays.

I leave others to explain why, although allow me to add another, venal, reason. If the larger of the two parties forms a grand coalition then it will get, say, eleven Cabinet positions; if it joins up with a minor party it will get sixteen or more. The grand coalition option does not offer the same spoils to the victor.

(As an aside, all governments struggle to find enough people of ability to be valuable Cabinet ministers. The usual rule is that up to five in a cabinet deserve to be there on other than political grounds – there may be some junior members who will develop, but most do not. With luck a grand coalition might find ten — half a cbinet.)

We have gone to a lot of trouble to have a more representative Parliament under MMP; it is not a perfect system but it is much better than the previous system, where each seat was won on the basis of Winner Takes All. However, the resulting government is hardly representative because it is based on the winner-takes-all approach, which MMP was specifically designed to ameliorate.

I reported an example from the 2017 election in Not in Narrow Seas.

While New Zealanders’ fundamental political ideology probably did not change much between 2014 and 2017, that of the government dramatically did. The MMP electoral system produces a parliament which reflects the demography and ideology of voters reasonably closely, much more so than front-runner parliaments did. However, parliament selects the government on a winner-takes-all principle rather than a proportional one. In 2017 and perhaps always, there was no acceptable combination of parties which reflected the voters’ ideology. The choices offered, National–NZF and Labour–NZF–Green – others were ruled out – were some distance from the political centre. The first coalition was about 0.8 standard deviations to the right of the New Zealand centre on a left–right scale and the second about the same distance to the left. That meant that only about 15 percent of the population were on the right of the first coalition or on the left of the second. On the social conservative–progressive scale the first coalition was also about 0.85SDs on the conservative side, while the second was a slightly closer 0.65SDs on the progressive side, with about 25 percent more progressive. The sharp change in the politics of the government did not reflect a sharp change in the politics of the voters.

Don’t worry about the exact measurement. The kicker is in that last sentence. The substantial switch of the government from centre-right to centre-left did not reflect as great a change in the public’s political viewpoint, but rather reflected the eccentricities of how governments are formed in New Zealand. Had a grand coalition been formed, the result would have been a government closer to the public’s political preference.

My guess is that unless something dramatic happens, grand coalitions will be ruled out in the foreseeable future, so we are stuck with a winner-takes-all unrepresentative government. Is there anything we can do about it? The first thing is that the problem is not MMP. Sure, we can fine-tune the way we select MPs – and we should – but we are still stuck with a system of WTA government.

The only obvious improvement I can see – and it is not a total solution – would be a stronger, more independent Parliament, better at holding the government to account. It is not happening at the moment. Parliament makes a lot of noise, especially from the Opposition, but it is surprisingly ineffective. This is one thing the London Parliament does better than us. Even its government backbenchers show more independence and can challenge a particular policy of their own government. (It is possible that ours do so in caucus meetings, but the convention is not to report proceedings, which weakens any public accountability.) This may be because the London Parliament is six times bigger than the Wellington one, so there are more backbenchers trying to stand out.

How does one get backbenchers to be more challenging? Any proposals one would put up would be promptly blocked by the party leaderships. It certainly would help if MPs were to state repeatedly that their function, once they had chosen a government, is to hold it to account. When did you last hear an MP say that? It is not the same thing as mindlessly opposing the government – that is done very well – because good accountability is a constructive activity in which government backbenchers can be involved.

I’ve heard it said that the process happens in select committees, but I am unimpressed by those I have connected with. Usually legislation put before them by the government is a fait accompli, while their reviewing of bureaucratic failure is ineffective.

(Since I drafted this, it has been reported a select committee has found a government department – the Ministry of Local Government in the Department of Internal Affairs – has ignored them and redrafted a Three Waters bill according to its desires. The committee has given the officials a bollocking. Good on them. A reminder of who thinks they are in charge, and who ought to be in charge.)

The one place where Parliament accountability does work well is the Officers of Parliament. There are three:

            The Auditor General;

            The Commissioner for the Environment;

            The Ombudsman (who also deals with complaints under the 1982 Official Information Act).

However, there are other commissioners also charged with providing checks and balances on the bureaucracy but who are, bizarrely, subordinate to the self-same bureaucracy they are meant to be holding to account. They include:

            Chief Archivist;

            Commissioner for Children;

            Health and Disability Commissioner;

            Human Rights Commissioner;

            Police Complaints Commissioner;

            Privacy Commissioner;

            Race Relations Commissioner;

            Retirement Commissioner.

Is the independence of these commissioners compromised by their position in the bureaucracy? The short answer is that even where it is not currently, it can be. A longer answer is that there are cases where the ability of some commissioners to carry out their functions seems to have been compromised. (Even the Ombudsman is undermined by failing to vote the office sufficient funds to deal with OIA requests speedily.)

Instructively, Parliament has complied to demands from the bureaucracy to reduce the independence and powers of these commissioners. The case for the change is always in terms of bureaucratic rationalisation; the impact on accountability is never mentioned.

It is the usual complacent way we run New Zealand. When was the last time Parliament was strengthened? Thirty years ago when we introduced MMP? It is easy enough to identify instances where the power of Parliament has since been weakened. Are we really sure that we have a well-functioning system of government?


*Brian Easton, an independent scholar, is an economist, social statistician, public policy analyst and historian. He was the Listener economic columnist from 1978 to 2014. This is a re-post of an article originally published on pundit.co.nz. It is here with permission.

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14 Comments

Yes , 51% winners = 49 % losers. And yes , minor parties holding to ransom on a radical issue is only a threat if the 2 main parties don't cooperate in blocking it . 

My question , in the event of no majority , who gets to form a minority govt , the party with the biggest single vote , or the party who can put together a coalition that still does not make a majority?

We have always said that the government without a majority is un workable , but is it ? Most differences are not confidence and supply issues, Of course the vote of no confidence system would have to be reworked. 

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minor parties holding to ransom on a radical issue is only a threat if the 2 main parties don't cooperate in blocking it

 Exactly.  But let's blame the minor parties and scaremonger accordingly.

We have always said that the government without a majority is unworkable, but is it? 

I don't think so - it might mean that real and meaningful changes could be made at the select committee level instead of them being a facade of consultation.  MP's might actually have to genuinely think about, meaningfully discuss and justify laws with MP's not directly aligned with their own party.

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In answer to your first question. The party with the most votes gets first try at forming a government. If they can't cobble together enough support it falls to the next largest party. Example: 2017 Election.

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Thank you. Makes sense, which isn't necessarily a factor, unfortunately.

If they can't cobble together 50%,they must have confidence and supply agreements to 50%.? My understanding is the government must have a majority to form a govt, or avoid a vote of no confidence? So a minority govt is not currently possible in the NZ system.

 

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NZ would function a lot more effectively with a higher standard of economists as the ones that we have at the moment are not fit for purpose. 

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I'm not sure which 'economists' you have in your sample set to arrive at such a conclusion.

I'm guessing that you get to hear most from the noisiest which are all 'bank economists'? These are 'economists' who are paid by the banks and will only ever give you a view through the filter the banks want on their views. I.e. they'll never say anything that would in any way disadvantage their bank (and/or endangers their pay cheque).

Other less trustworthy economists would be real estate agent's 'economists', and private 'think-tank economists' who are paid to represent just one view and do it with considerable bias.

There are many, many others. The commercial independents are worth listening to but they tend to be long winded - quite correctly as many 'pronouncements' need to be explained by delving into what they see as critical factors that they've used to come to their pronouncements. Another group worth listening to are the trade union economists. They tend to eschew - or at least question - many business led concepts like 'growth is good', 'business's won't exist if they're taxed", "workers are lazy", etc., etc. And there are university economists. And then there are some that simply do it for the love of trying to understand very complex behavior, both human and natural (e.g. the effects of weather).

I guess all are 'biased' to some degree but the ones focusing on making the world a better place are the best ones IMHO. More trustworthy in my experience and more likely to be right. Case in point - are 'bank economists' being honest where on interest rates will be in 2, 3, or 5 years?

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Economists such as Bill Mitchell, Steve Keen, Steven Hail, L.Randall Wray, Stephanie Kelton, Pavlina Tcherneva, Warren Mosler and Michael Hudson as a sample would be those who actually have an understanding of economics, unfortunately none reside in NZ and our publications it seems can't be bothered to approach them for some alternative points of view. 

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Wow. Great list! Just about all challenge the mainstream economic status quo (orthodoxy). Yes, indeed, it would be great to hear more from them in NZ.

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I listen to UK politics fairly regularly. Lack of talent in political parties isn't just a New Zealand problem. The UK is also suffering from a collapsing health service, declining education standards, food inflation and child poverty (Under a Conservative right-wing government that promotes policies similar to Act and National). It doesn't matter if the government is left or right they still manage to stuff things up given long enough in power.

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We have gone to a lot of trouble to have a more representative Parliament under MMP

No we haven't.  The 5% threshold proves otherwise.  We have 120 MP's so 1/120th of the vote should mean representation in Parliament for the people that voted for such a party.

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MMP is no improvement on First Past the Post.

If you want to improve our democratic system the only course is to adopt Sortition which was used in classical Greece and in other odd instances in other countries over the centuries.  Sortition is basically a random lottery system whereby lots are drawn from all citizens and the chosen then partake in the decision making process.  People from all walks of life are randomly chosen to make governance decisions.

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An interesting thought Brian... if Labour get 32% of the party vote and National 34% then that should be reflected in the govt...?

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I did like David Seymour's idea that the minor parties should be in charge of select committees. It would seem like an opportunity for more thought and rigour to be applied to legislative processes 

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