Free Press: ACT’s regular bulletin
Free Press ACT’s regular bulletin
The Secret Labour/NZ First
Agreement
The Free Press has learned from a
usually reliable source what is in the secret coalition
agreement.
First Things First: Why is it
Secret?
It is very damaging in a democracy
for Jacinda Ardern to keep secret what the Government has
pledged to its coalition partner. Why the secrecy? There
are significant new extra spending promises. Labour does
not want the Treasury to know or the extra spending will be
added to the Treasury forecasts due to be published
shortly.
Running out of Other People’s
Money
Already the treasury forecast will
show Labour's election spending promises were understated
and there is a blow out. Add the new secret spending
promises and New Zealand's credit rating is at risk. A
credit rating decline means everyone's mortgage payments go
up.
Second
There are or
were 38 pages to the Labour-New Zealand First agreement. As
the PM has almost admitted it has been edited down to 33
pages and Labour is trying to get it lower. The missing
five pages are still part of the coalition agreement but
both governing parties have conceded it will be very
damaging if they are ever published.
The
Two Governments Agreement
What is in the
agreement? In effect the document creates two governments, A
Labour/Green government and a New Zealand First government.
Winston Peters is granted a veto over the Labour/Green
government but in the New Zealand First government his
powers are untrammelled.
Labour/Green
Government
1. The government budget must be
submitted to NZ First (Winston) for approval
2. Labour
has agreed to a 10 percent a year increase in the Foreign
Affairs budget.
3. Labour has agreed that NZ First
manifesto promises will have priority. The Northland port
and railway, for examples
4. New Zealand First
nominations will be approved. For example to the port
inquiry.
5. No concessions can be made to the Greens
without prior approval from New Zealand First, think
Kermadecs
6. No new policy not contained in the coalition
agreement can be advanced by Labour Ministers without NZ
First approval.
7. All government appointments must be
approved by NZ First
New Zealand First
Government
1. Foreign Affairs budget to be
increased and Mr. Peter's Foreign Affairs budget requests
cannot be vetoed. Mr Peters can spend his budget how he
chooses.
2. All budget requests from New Zealand First
Ministers that have been approved by Mr Peters must get
priority.
3. As Minister of Foreign Affairs Mr Peters has
the sole right to nominate all Ambassadors and other
diplomatic posts not just Washington and London but he
cannot be stopped from appointing his mates to be consuls as
he tried with Owen Glenn.
4. As Minister of SOEs Mr
Peter's has the sole power to appoint all the chair and
directors of every SOE. Dozens of appointments.
5. New
Zealand First can nominate, over three years, six people to
be knights (or, theoretically, Dames) and its nominations
will be favourably considered for other honours.
6. New
Zealand First will appoint the next Chief of Defense
7. A
provision requires all Ministers to refer any request from
or to a New Zealand First Minister to go through Mr Peters
office.
8. The PM has agreed that she will not dismiss
any New Zealand First Minister, MP or appointee without Mr
Peter's approval and the PM has also agreed to dismiss any
NZ First minister, MP or appointee if asked to by Winston
Peters.
Unbridled Power
No
previous Prime Minister has had the power and patronage that
Winston Peters has been given. He can appoint his cronies to
be Ambassadors, SOE chair and directors and he can give them
knighthoods. He has an iron grip over his party. Winston in
effect controls the government budget and can spend billions
of dollars on his pet projects while vetoing the plans of
both Labour and the Greens.
Snookered
No wonder the Prime
Minister, who foolishly thought none of this would become
known, is desperate to keep it secret. We suspect that at
some stage some of the document will have to be released but
as the PM is now denying even the existence of five pages of
the secret deal it may be years before we know.
We Need Some Responsible Adults
Here
The Secretary of the Treasury should
demand to see the full 38 pages. If the government will not
let the Treasury see the full secret coalition agreement
then the Secretary of the Treasury must tag the Government
accounts saying that the Treasury had asked and been denied
access to the full coalition agreement and future spending
may be significantly greater than the forecast.
Why did the Government Change
Anwyay?
National lost power because, despite
consistent advice from ACT, they did not confront the red
tape and regulation that’s made it impossible to build
homes. As one affluent central Auckland professional
recently told Free Press ‘I just got the feeling that for
every person who got ahead, another got left behind.’
Denial Files
National still
don’t get it. Here’s National’s Michael Woodhouse
commenting on a housing market where homes cost 10 times
income and housing construction is half 1970s rates due to
red tape and regulation: "The housing market is flat to
falling and we are in the middle of a record residential
building boom. The solutions were implemented by the
previous Government based on official advice and they are
working."
Denial Files
II
Beehive staffers love telling the story
of Nick Smith, recently demoted from being a Minister,
turning up at the airport and wondering why he couldn’t
get on a plane no staff had booked for him. He’s at it
again. Last week he claimed National ‘won’ the election.
Nobody wins under MMP without 61 votes in the House. Unless
there is a coalition of parties on the right, we will be
getting acquainted with the Air New Zealand self-booking
application for years and years to come.
What Will It Take?
The
political Right must learn how to build coalitions and
address hard issues rather than trying to conceal them
behind good PR. That formula has had its day and ACT takes
no pleasure from saying ‘we told you so.’ Meanwhile
Labour, New Zealand First and the Greens are wreaking havoc
on the New Zealand economy.
ends