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Over the next 15 months, the clear strategic imperative for all three Coalition partners is break-out. Each must seize as much of the Right’s ideological territory as possible for themselves

Public Policy / opinion
Over the next 15 months, the clear strategic imperative for all three Coalition partners is break-out. Each must seize as much of the Right’s ideological territory as possible for themselves
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By Chris Trotter*

"He said what!" David Seymour’s response to Tama Potaka’s less-than-fulsome endorsement of Act’s beleaguered Regulatory Standards Bill (RSB) is readily imagined. Interviewed by Jack Tame on TVNZ’s Q+A show, Potaka floated the possibility that Act’s legislation might be reported back to the House of Representatives with recommendations relating to te Tiriti and tikanga.

That is fighting talk.

Did the Minister of Māori Development not get the Memo? Could Potaka really be unaware of Seymour’s public warnings that the RSB is to be passed – entirely unmolested by second thoughts? That it’s a non-negotiable element of Act’s coalition agreement with National?

Seymour was unable to convince his coalition partners to pass Act’s Treaty Principles Bill. That’s why he’s telling National and NZ First that if they step back from their commitment to the RSB, then all bets are off.

But, would the Act leader and his parliamentary caucus colleagues really walk away from the Coalition and move to the cross-benches? More to the point, would they be willing to vote against their former partners, or even abstain from voting, and allow Labour, the Greens and Te Pāti Māori to defeat the Government? Are they prepared to precipitate an early election?

One must assume that they are willing to exercise “the Samson option” of bringing down the house, because if they are not, then their followers will feel, rightly, that they have been betrayed. Act’s electoral fortunes could then be expected to take a sudden turn for the worse.

On the other hand, taking a stand on the principle that once a political party’s word is given, then it must be honoured, would likely achieve a number of important Act objectives.

Not the least of these would be slowing the steady rise of NZ First as the Right’s honest broker. Winston Peters ‘going first’ in the role of deputy prime minister allowed him to strengthen his credentials as the Coalition’s reliable ‘voice of reason’. The man whose commitment to economic and political stability has encouraged a growing number of conservative New Zealand voters to view NZ First as being indispensable to both.

Seymour and his colleagues cannot be unaware that Peters’ ‘soul of moderation and responsibility’ routine is one the Act leader will now be expected to replicate. Quite apart from the fact that David Seymour doesn’t really do moderate and responsible – preferring, instead, the role of the political disrupter and agenda-setter – the expectations which Peters has shrewdly laid across the shoulders of his electoral rival are calculated to leave all the running on the Right to NZ First and National.

The role of deputy prime minister demands a large measure of statesmanship. Unfortunately, in the current political climate, statesmanship does not win elections. In an acutely polarised ideological environment, where extreme solutions attract many more votes than ‘sensible’ policies bearing the Establishment’s’ seal of approval, the gravitas expected of prime-ministers and their deputies confers scant electoral appeal.

Over the next 15 months, the clear strategic imperative for all three Coalition partners is break-out. Rather than hanging together, it makes much more sense for National, NZ First and Act to hang separately. Each must seize as much of the Right’s ideological territory as possible for themselves.

Act and NZ First have always understood that, when it comes to increasing their share of the Party Vote, the primary target must always be National. Leonard Cohen used to sing: “First we take Manhattan/Then we take Berlin”. In the case of the smaller right-wing parties, it’s more a case of “First we take as much as we can off National, then we take the support that Labour has burned-off.”

That this is what their “partners” are planning is hardly news to National’s election strategists. To counter such political cannibalism, National’s objective is clearly to highlight the tail-wagging-the-dog problems associated with minor parties attracting excessive voter support. Accordingly, Christopher Luxon’s appeal to the electorate must be for a large enough share of the Party Vote to put Act and NZ First back in their boxes.

As Prime Minister, John Key could turn for support to the Māori Party on his left, and Act on his right. Crucially, neither of these ‘friends’ were in a position, numerically, to pull-the-plug on his government. That’s because John Key could rely upon his party attracting a Party Vote in the high-40s. National’s problem in 2025 is that it has been unable to get anywhere close to Key’s levels of support.

That could change, however, if Luxon and National were willing to cry “taihoa!” on the ‘nonsense’ policies of Act and NZ First. Indeed, a very large chunk of the right-wing vote has been crying out for Luxon to do exactly that for a very long time. Luxon’s less-than-stellar performance in the preferred-prime-minister stakes is, almost entirely, born of the perception that he lacks the spine to call his coalition partners into line.

With all these factors in play, it isn’t hard to develop narrative political arcs for the next few months.

Seymour can be expected to demonstrate zero willingness to acquit himself as a traditional deputy prime minister. His mission, rather, will be to demonstrate the political courage required to expose the timidity and conventionality of his coalition partners. Requiring National and NZ First to keep their promises to pass the RSB, as-is, and being seen to do so, would be the best start.

Winston Peters and NZ First face the less daunting, but ultimately more rewarding, challenge of presenting themselves as the champions of traditional, decent, and fair-minded New Zealanders. The voters who have had enough of ideological radicals and political cowards. Essentially, Peters’ job is to drive home the simple message: “You can’t risk a Parliament without us in it. Think of NZ First as your insurance policy against political extremism.”

National’s break-out strategy is unquestionably the most difficult, and the most risky. From presenting as a rather detumescent collection of middle-managers: neither fish nor fowl; radical nor conservative; National needs to show that it has recovered – to borrow Luxon’s own term – its “mojo”.

Seymour and Act, in particular, need to be put firmly in their place. That means courting Act’s rebellion by drastically redraughting, or withdrawing altogether, the RSB. Providing National holds its nerve, this is a no-lose strategy. If Seymour flounces-off to the cross-benches, then, fine, ask Dame Patsy to dissolve the House and issue the writs. If he meekly bows to National’s will, then, even finer. Luxon’s ample supply of mojo will have been demonstrated, and National’s poll-numbers should improve markedly.

Labour would, of course, deride the all-too-obvious disunity of Luxon’s government and offer itself as the moderate and responsible alternative. And, who knows, it just might work (provided the Greens and Te Pāti Māori could be persuaded to shut-up and nod enthusiastically).

A left-wing victory at the polls could only be won, however, if Labour, by some miracle, was able to come up with a suite of moderate and responsible policies that stood even a remote chance of being translated into an improved economy and a happier country.

That would be the sort of break-out nearly all New Zealanders could get behind.


*Chris Trotter has been writing and commenting professionally about New Zealand politics for more than 30 years. He writes a weekly column for interest.co.nz. His work may also be found at http://bowalleyroad.blogspot.com.

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24 Comments

Rather than National "recovering its mojo", what might help is an active demonstration that they aren't intellectually bankrupt and are prepared to adopt some new ideas to pull us out of what is beginning to look increasingly like a dismal spiral.

That's not to say the other side are not equally bereft of useful ideas: one side has shown no long plan for change and development while being focussed on stopgaps in the here-and-now that are reducing our future options, while the other is all about change while there is very little to solve - or even acknowledge - current problems in a way that would allow future development. 

 

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The problem for National is that PM Luxon has about as much charisma as a boiled egg. Now there’s nothing exactly wrong with boiled eggs but the PM’s job is to sell the government to the electorate and here the message is not being delivered whereas the leaders of the coalition partners are in contrast rather adept at getting it across. More and more, this government is needing to rely on criticism of the opposition make up, the unruly and raucous elements of the Greens and TPM, rather than being able to publish a record of actual achievement.

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Bland managerialism would be just fine if it got results. It might even be a welcome respite from some of the loopier pronouncements from the ends of the political bell curve.

The problem is that said managerialism is not doing anything new, and is perceived to be achieving little.

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To be fair Golem, they weren't elected on what they were going to start doing, they were elected on what they were going to stop. Throw into the mix having to work with ACT and NZF. Luxon is your corporate exec company man type, devoid of charisma and original thought. Media trained to repeat the same few phrases over and over rather than answer a question. 

They are weak from a Finance perspective though and that shows through.

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The last thing any country needs is a dominant politician with original thoughts [e.g. Trump, Putin]. However the ability to judge others ideas and pursue the good one is valuable.

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Luxinda has 1 in 12 on the main benefit. Labour and National should be honest with the voters and form a grand coalition, rather than run a pretend democracy. 

"Umm why is Dominos and McDonald’s, Pizza Hut given accreditation by the Govt for hiring immigrants to relocate to NZ ?"

https://x.com/2ETEKA/status/1946442345190486103

https://www.immigration.govt.nz/work/requirements-for-work-visas/approv…

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I can't quite see Winston as the next "Mr. Reasonable" Peter Dunne somehow.

Decades of National & Labour "moderate and responsible policies" have gutted out NZs economic, education, health & other fundamentally important sectors while empowering the self serving aggrandisement of central & local govts bureaucracies. NZ is  increasingly an intergenerational culture of victim entitlement - in contrast to Australia (I have recently returned from a short visit). 

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"Indeed, a very large chunk of the right-wing vote has been crying out for Luxon to do exactly that for a very long time. Luxon’s less-than-stellar performance in the preferred-prime-minister stakes is, almost entirely, born of the perception that he lacks the spine to call his coalition partners into line."

I suspect the larger chunk of the right-wing vote is increasingly impatient with Luxons clear preference to play the international stage rather than confront serious domestic problems & his  refusal to stop chronic squeaky wheel appeasement & call the Opposition parties bluff. The recent public dissatisfaction with Stanfords education ToW  manipulations a case in point.

 

Leonard Cohen also said "You want it darker...?"

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As he said, he's rich and sorted. Could simply be trying to stoke his career for post PM and sail off to better ventures with the help of his mentor John Key. Couple this with seeing the sheer profit our previous PM derived form her time, and then harvesting this overseas where her reputation somehow is still in tact. 

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Erica Sandford is the only senior National MP that doesn't make me want to scream into a pillow and I voted for them. 

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She should be in the labour party, as should "I can outspend Robbo" Willis, congestion tax Bishop, and Luxon who the media were desperate to have as leader of National before he was even an MP. The left play a long game and know there is more than one way to skin a cat. The insidious takeover of academia, education, health and now the national party.

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The crisis of political fragmentation will continue until some political entity is willing and capable of presenting a realistic roadmap of how NZ is to address the problems besetting the failing current model....something they have all proved increasingly incapable of for many elections past.

Dont hold your breath.

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6

I can see the election being fought over tax. As a country we need more tax with more retired needing health and opex coverage,  and less workers paying tax. Add in inflation on Govt Funded stuff we are getting less for the $$ spent. Options...

  • Stop registered charities being Tax free. Churches and Iwi abusing this tax free for commercial activity
  • Capital gains tax, look to Aussie, how about an Unrealised CGT = specu panic!
  • A land tax like TOPs policy
  • Edit. Turnover based tax on Internationals multinationals. Facebook. Youtube. Google. Microsoft. AWS etc. See Aussie legislation

Putting up GST or more income tax is just a path to making valuable workers leaving NZ.

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Shoulda gone with Morgan's TOP polices 20 odd years ago, primary UBI and asset tax. But we were too busy playing rock star.

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It may well be fought over tax, but in the end it is clear none of the incumbent politicians on either side of the aisle understand how money works in the economy or how to fix our economic issues. We just keep on hearing the same old mantras they've always spouted. 

They don't seem to be able to let go of old, failed ideologies or learn lessons from the past.

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If you're generally interested in tax, I suggest you check out the large multi-nationals before worrying about iwi.  Lolz.

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Neither NZ nor anyone outside USA has any power to fairly tax USA multinationals, Trump has recently reneged on the decade old Basle Accords on multinational profit shifting (15% global tax).

Taxing Iwi businesses the same as any other NZ businesses & competitors on the other hand...

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Iwi businesses owned under Charitable status is now well north if 1B in turnover per year. And growing. Not Iwi per say, just the "Charitable" status. Agree on International tax shifters. We should copy the tax in Aussie which levels tax on turnover. Have edited the above post.

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Yes, but you don't pay tax on turnover do you.... Ngai Tahu would be top 2 iwi commercially and their net earnings were $42m last year. No doubt if they had to pay corpration tax they could push that lower still. All in, maybe we are talking about a total of $20m, maybe $30m??? Iwi pay GST and they pay income tax on employee's. Their retained earnings are put into marae, community programs, grants for education scholarships, tikanga.

You are simply miles off the mark thinking there is an untaxed vein of gold here, to the point anyone pushing this narrative could be seen as financially illiterate. This is one small way for Maori to close the gap educationally to pakeha. If you need me to explain the many Maori struggle to get access to tertiary education because they are more likely to be living rurally, then I really do give up.

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And while you're on education, of the $21b in assets held by charities $12b is held by universities. The three largest iwi hold $2.1b iirc.

As you say TK, pretty irrelevant in the scheme tax of things.

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But those university assets can't be used to buy/establish mainstream commercial (profit making) enterprises - like Shotover Jet, can they?  I think the comparison between universities vs iwi corporates might not be an apples for apples one.  I think the unis are more constrained.  But, I could be wrong.

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I worked for a university in a professional training facility set up to model a private business but... not allowed to run at profit. Made for interesting monthly meetings with the higher-ups.

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TVNZ did an excellent series on what various iwi have done since their settlements.  All very impressive.  And a great deal of expenditure on social housing and other socially worthwhile programs.  I can't find the series on TVNZ's website, but if anyone can - it would be great to post the link.

I think the charitable status should be re-thought - as in many cases decisions relate to good commercial enterprises delivering dividends that are then re-invested in the social and environmental projects.  So perhaps a hybrid type of taxation is warranted where tax is paid on commercial investments and tax relief is given when the surpluses are used for social good reasons. 

To my mind, if anyone can solve the housing problem, particularly for those most vulnerable - it is iwi organizations.  There were many an innovative example across a number of the iwi featured.

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Check out the rest homes while you are at it eg Rymans deferred tax credit of $147 million.

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Aren't Rymans up a certain creek financially?  They have been reported on recently as having some "issues" to the point where I'd have thought they are heading into a downward spiral.

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