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