Read The Times Australia

Daily Bulletin

NZ deputy PM under fire, but maintains no laws broken in party donations scandal

  • Written by: Andrew Geddis, Professor, University of Otago
NZ deputy PM under fire, but maintains no laws broken in party donations scandal

New Zealand’s deputy prime minister, Winston Peters, is under pressure following a complaint to the New Zealand Electoral Commission about his party’s mysterious funding arrangements.

Under electoral law, political parties have to disclose all donations above NZ$15,000. But the New Zealand First party, a coalition partner in the Labour-led government, has a somewhat opaque relationship with a trust called the New Zealand First Foundation, which has loaned the party tens of thousands of dollars in the past three years.

Those giving money to the foundation can remain anonymous because under electoral law, loans are not subject to the same disclosure requirements as donations.

But the foundation’s trustees are the New Zealand First party’s lawyer and an ex-member of parliament, who is now a lobbyist. This raises questions about the legality of the funding.

Read more: New Zealand politics: how political donations could be reformed to reduce potential influence

Money, politics and scandal

The relationship between private wealth and public power bedevils all democracies. In particular, constant tension surrounds the use of such wealth to fund political parties and candidates that contest public office.

This issue often emerges in the form of a scandal, where some practice or behaviour is revealed that challenges current legal or social norms. New Zealand is in the midst of such a moment.

While the loans from the foundation are legal, they have the practical effect of preventing the public disclosure of whoever provided the money in the first place. Reporting based on leaked internal documents reveals that the foundation’s funding sources include “companies and individuals who work in industries that have benefited from a NZ$3 billion Provincial Growth Fund” overseen by a New Zealand First minister.

As further reported, the foundation also appears to have directly paid for some of New Zealand First’s activities without those payments being disclosed as donations to the party. If correct, that practice looks to be at least questionable under existing electoral law.

While the New Zealand Electoral Commission is now examining the matter, its investigatory role is somewhat limited as it cannot require anyone to produce additional documentation. But should the commission conclude that the recent revelations show New Zealand First (or, more specifically, its party secretary) has committed an offence against the Electoral Act, it has a statutory obligation to refer the matter to police.

Such a referral would, of course, be politically very damaging to the party. Unfortunately, it would not be unprecedented. The country’s Serious Fraud Office already is examining allegations relating to the opposition National Party’s treatment of some NZ$100,000 in donations. To have two of New Zealand’s political parties under police investigation for possible illegal activity is hardly a ringing endorsement of the country’s political culture.

Is the law fit for purpose?

The alternative may not be all that much better. Consider what it means if, after discussing the matter with the party and the foundation, the commission concludes that no laws have been broken. After all, the leader of the New Zealand First party, Winston Peters, maintains this to be the case.

It would demonstrate New Zealand’s electoral law simply is not fit for purpose.

It would mean a key part of the government can be intimately connected to a legally opaque foundation that has raised hundreds of thousands of dollars from primary industry leaders, wealthy investors and multi-millionaires; that the foundation can use that money for the benefit of a party and its MPs; and that no one outside of the party and those who gave the money need know what is going on.

Such a state of affairs surely would threaten New Zealand’s ranking as the world’s second least corrupt nation in the world. It is important to note there is no indication that any form of quid pro quo actually exists here, but this would make it hard to sustain public trust and confidence in our governing arrangements.

Read more: A full ban on political donations would level the playing field – but is it the best approach?

For this reason, the current scandal is already generating calls for change to New Zealand’s electoral laws. Former National Party prime minister, Jim Bolger, advocates an end to private donations to political parties and a system of public funding. Author Max Rashbrooke advocates a combination of low limits on private donations and the use of “democracy vouchers”, which give every citizen a small amount of money to donate to the political party of their choice.

Those are proposals that New Zealand ought at least to consider seriously. For as long as the country continues to leave the funding of political parties and candidates up to those individuals and groups with wealth to spare, we will see scandals like the current one reoccur.

Authors: Andrew Geddis, Professor, University of Otago

Read more http://theconversation.com/nz-deputy-pm-under-fire-but-maintains-no-laws-broken-in-party-donations-scandal-127596

Business News

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

Portable Toilet Hygiene Standards Explained: Clean vs Sanitised vs Disinfected

In portable toilet servicing, the words clean, sanitised, and disinfected often get used as if they mean the same thing. They don’t. And that difference matters because a unit can look tidy and still ...

Daily Bulletin - avatar Daily Bulletin

Options Available When a Company Faces Financial Distress

Financial distress can develop gradually or arrive suddenly, and when it does, the decisions made in the early stages often determine what options remain available later. Directors who act promptly ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...