The coalition class of 2008

By Stephen Layburn, Senior Associate | Wednesday 19 November 2008

A review of the coalition agreements signed by National and the minor parties provides an interesting insight into both the way National has been able to achieve relationships of confidence and supply, and the likely shape of the new Government's legislative programme.

Coalition agreements have been a feature of MMP and their status can at best be described as a (legally unenforceable) compact - at times part marriage of convenience, part moral commitment and framework for an ongoing dialogue. It does mean that the focus of commentators is not so much on the points of agreement as on the points of difference or likely areas of tension. In the present case, there is much that can be taken from the election campaign that goes to make the current crop of agreements seem rather predictable. However, the backdrop of a 'perfect storm' of financial and economic conditions and, with it, the need for stable and decisive leadership gives us cause to comment on the class of 2008.

Possible points of tension have already been highlighted. For starters, will the presence of private sector members in the taskforces to review base government spending (as outlined in the National-ACT Coalition Agreement) intrude on areas of responsibility allocated to the Maori Party? The pragmatism demonstrated by the Maori Party since the election would suggest that there is a joint acceptance of the need to focus on outcomes that deliver results. For example, having previously been labelled a single issue party, we now see the Maori Party with specific provisions enabling it to be allocated memberships of Finance and Expenditure and Commerce Select Committees. As a result, while there may be some interesting debate behind closed doors about the make-up of some of the taskforces, it is likely the new political reality will mean much closer attention to the quality of government spending. However, before getting too carried away, it is noted that the Maori Party agreement includes a commitment from National to recognising the challenges of servicing the disproportionately large Maori electorates.

Any attempt to summarise the coalition agreements is likely to highlight not so much the review of constitutional issues, including the Maori seats and the Foreshore and Seabed Act, or even the speedy repeal of the Electoral Finance Act but instead focus attention on the changes needed to manage a greatly reduced tax take as recession bites deeper in the business community and among individuals. As well we can expect a focus on establishing a Climate Change Select Committee, the ban on new thermal generation to be lifted and a review of the Resource Management Act.

National and ACT have also agreed to explore the concept of a productivity advisory group, similar to the Productivity Commission in Australia, to support higher productivity growth and improve the quality of regulation. The Australian experience would suggest that, for such an initiative to be effective, bi-partisan support should be explored. While it is early days, the prospect of the new leadership team in the Labour Party lending its support is an exciting one. Whether the Greens and Jim Anderton are prepared to be equally co-operative remains to be seen.

A last point of interest in each of the coalition agreements is a reminder on paper of the standards of behaviour expected of Ministers. In each case the parties - noting that each will be allocated Ministerial roles outside of Cabinet - agree to be bound by the Cabinet Manual in the exercise of Ministerial responsibilities, including its rules on conduct, public duty, and Ministers' personal interests.

Here is a summary of the key provisions in the confidence and supply agreements between National and each of the Maori Party, ACT and United Future.

Confidence and Supply Agreements