Modern Australian
Times Advertising

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

Why Pendant Lights Continue To Be A Popular Choice In Modern Interiors

Lighting has become an essential design element in modern homes, influencing both the appearance and functionality of interior spaces. Many homeowne...

How Whiteboard Supports Structured Communication In Work And Learning Environments

Clear communication and structured planning are essential in both professional and educational settings, which is why a whiteboard remains a practi...

How A Cardboard Box Manufacturer Supports Modern Packaging Needs

Packaging has become an essential part of modern business operations across retail, manufacturing, logistics, and e-commerce industries. Many busine...

How Pallet Racking Helps Businesses Improve Warehouse Operations

Efficient warehouse management depends on reliable storage systems that support organisation, safety, and productivity. Many businesses use pallet rac...

Why I/O Controller Is Essential For Efficient Industrial Automation Systems

Modern industrial systems rely heavily on automation and precise data exchange, which is why an I/O controller plays a critical role in ensuring sm...

Why Modern Traffic Management Systems Are Important For Safer Roads

Cities and industrial facilities increasingly rely on advanced Traffic Light System technology to improve road safety, traffic flow, and operationa...

How Structured eCommerce Web Design Influences Online Buying Behaviour

A strong online presence begins with effective eCommerce web design that prioritises both functionality and user experience. Businesses entering or...

What People Mean by “Alternative Doctor” And Why Expectations Around Care Are Changing

When people search for an “alternative doctor,” they’re usually looking for something specific, even if they haven’t fully defined it yet. I...

Why Does My Power Keep Tripping? Common Causes Explained by Electricians Sydney

The electrical system is the lifeblood of your home, powering everything from your phones to cooking utensils and more. But from time to time, your po...

Interstate Car Transporter Urges Buyers to Book Early

As the conflict in the Middle East continues to put increasing pressure on local fuel supply, Australian transport companies are experiencing increasi...

Digital Minimalism for Business Owners: Fewer Tools, Better Systems

Be honest. How many apps are open right now? One for scheduling, another for invoices, a third for customer notes, plus a spreadsheet someone email...

The Importance Of Proactive NDIS Renewal Preparation For Sustaining Your Provider Business

Your NDIS renewal notice is not a signal to start preparing. By the time it arrives, preparation should already be well underway. For new providers, s...

Why Fire Extinguisher Testing in Sydney Is Becoming a Records Game, Not Only a Maintenance Job

A fire extinguisher used to feel like one of the simpler parts of building safety. It hung on the wall, wore a service tag, and sat there quietly unle...

The Switchboard Upgrade Question Every Melbourne Renovator Should Ask Before the Walls Close Up

Renovations have a funny way of making people think on surfaces first. Splashback, stone, joinery, tapware, paint. Fair enough too. That is the exciti...

Winter Sanitation Gaps in Parramatta Kitchens: A Hidden Pest Risk

Winter brings a host of changes to our homes, from the chill in the air to the cozy warmth indoors. However, this season also introduces sanitation ch...

When to Seek Advice from Employment Lawyers in Melbourne

Australian employment law is detailed and, at times, complex, with rights and obligations that aren't always obvious to employees or employers witho...

7 Benefits of Professional Gutter Cleaning for Australian Homeowners

Gutters aren't exactly glamorous. They sit up there on the edge of your roof, doing their job quietly - until they stop working. Clogged, overflowing ...

Pipe Floats Strengthening Pipeline Performance In Demanding Environments

Pipelines often travel through environments that are anything but predictable, water currents shift, terrain changes, and materials keep moving unde...