EXPLAINING NEW ZEALAND'S PARLIAMENTARY GOVERNANCE

UNCLAS SECTION 01 OF 02 WELLINGTON 000821 SIPDIS STATE FOR D (FRITZ),EAP/ANP, EAP/EP, EAP/RSP, INR/EAP NSC FOR VICTOR CHA AND MICHAEL GREEN SECDEF FOR OSD/ISA LIZ PHU PACOM FOR J2/J233/J5/SJFHQ E.O. 12958: N/A TAGS: PGOV PREL NZ SUBJECT: EXPLAINING NEW ZEALAND'S PARLIAMENTARY GOVERNANCE REF: A. WELLINGTON 816 ¶B. WELLINGTON 806 ¶1. New Zealand,s new government, announced October 17, was formed through an awkward arrangement that includes a coalition between the leading Labour Party and the Progressive Party and the &confidence and supply8 support of New Zealand First and United Future. In addition, the Green Party has agreed to abstain on votes of confidence and supply (ref B). The government also took the unprecedented step of naming a foreign minister ) New Zealand First,s leader ) who is to serve outside of Cabinet (ref A). These arrangements raise questions regarding parliamentary governance, several of which are answered below. ¶2. What is "confidence and supply"? It is, essentially, a commitment to a &yes8 response on a parliamentary vote of confidence in the government. The term &supply8 applies to votes on budget measures that provide the government its supply of money. ¶3. How can the government lose confidence and supply? If a party either in the governing coalition or providing confidence and supply withdraws its support from the government, the government could lose the ability to pass legislation. In such circumstances, the government could seek a parliamentary vote of confidence. However, a government would not seek such a vote if it expected defeat. Instead, it could try to form a new coalition or call a general election. The opposition also could make a motion of no-confidence in the government. In 1996, Prime Minister Jenny Shipley called for a confidence vote in Parliament after New Zealand First opted out of the coalition government with the National Party. National won the vote, 62-58, and continued to govern. ¶3. Can the government also lose confidence and supply via legislation? Yes. If the government fails to pass a piece of legislation that is sufficiently broad-ranging or weighty enough to either affect its performance or hinder its ability to govern, then a motion of no-confidence can be moved and voted on by Parliament. This motion takes the form of an amendment to the original troublesome legislation. Any party in Parliament can move to attach such an amendment. The budget is one sufficiently broad-ranging item whose non-passage could precipitate a government,s fall. It is possible -- but unlikely -- to have a situation like the one recently in Japan, where the rejection of far-reaching bills by the Upper House in August 2005 triggered a general election. Two other principal litmus tests of a government's "confidence and supply" are the non-legislative procedures of "Address and Reply" (a broad-ranging policy statement at the opening of a term of Parliament) and "the Prime Minister's Statement" (given annually on the first sitting day of Parliament). Though neither the "Address and Reply" nor the "Prime Minister's Statement" are legislative, they can be followed by a motion of no-confidence. ¶5. What is required for a motion to carry? A motion must secure a majority of votes to carry. Members who do not vote or who abstain are not considered in determining the majority. As part of the support agreement with Labour, the Green Party has agreed to abstain on votes of confidence. Because the Greens hold six seats in the 121-seat Parliament, Labour needs to secure a maximum of 58 votes to survive a test of confidence. ¶6. Does Parliament require a quorum to meet? Yes. At least one Minister and 20 members must be present for the House to meet, according to the current "Standing Orders of Parliament." However, there are no requirements regarding the attendance of any particular party. ¶7. Can a member vote by proxy? Yes, but with various restrictions, including the type of vote (party or personal) and the size of the party. In any event, no party may cast more than 25 percent of its party vote by proxy, rounded up. In the current Parliament, Labour must have 37 members present to cast a party vote on behalf of its full 50 seats, and National must have 36 members to vote on behalf of its 48 seats. ¶8. What happens if the government loses confidence and supply? Parliamentary convention would call for the government to resign or call for a new general election, unless it is able to form an alternative governing majority. If the government did not take action, the Governor General, as the Head of State, could choose from several options: -- She could confirm whether the Prime Minister can produce enough votes from elsewhere to restore the government's parliamentary majority. -- She could ask whether the Leader of the Opposition, for example the National Party's Don Brash, can secure enough votes to form a parliamentary majority and thus an alternate government. -- She could dissolve Parliament with the aim of having another general election. ¶8. What is "Cabinet"? This a political arrangement used by government to establish and coordinate government policy. Though Cabinet has no constitutional or legal authority, by convention it serves as the final arbiter of government policy. Nonetheless, the legal authority to govern is vested in the Ministers of the Crown, who are appointed by the Governor-General with consideration for the Prime Minister's portfolio recommendations. ¶8. What does it mean for a Minister to be "outside of Cabinet"? Ministers, legal authority is identical whether they sit inside or outside of Cabinet. It is common in New Zealand to have several ministers and associate ministers who sit outside of government. However, the political reality is that ministers who sit outside of Cabinet generally have less influence. Moreover, they usually are junior ministers or are ministers with portfolios of lesser priority. The current situation of Foreign Minister Winston Peters sitting outside Cabinet is unprecedented and potentially awkward, but it is not illegal. ¶9. What is "collective responsibility"? Collective responsibility is a convention of government whereby members in government are expected to publicly support government policy, whether or not they agree with the policy. Under the current governing arrangement, Labour has agreed to revise the Cabinet manual to limit the "collective responsibility" of two ministers who sit outside Cabinet -- Foreign Minister Peters and Revenue Minister Peter Dunne, leader of United Future. This is a governing innovation that allows Peters and Dunne the ability to criticize aspects of government policy that fall outside of their portfolios. Burnett