Whistling Past The Graveyard.

“Bugger the pollsters!”

WHEN EVERYBODY LIVED in villages, and every village had a graveyard, the expression “whistling past the graveyard” made more sense. Even so, it’s hard to describe the Coalition Government’s response to the latest Taxpayers’ Union/Curia Research poll any better. Regardless of whether they wanted to go there, or not, the polling data is leading the Coalition partners’ thoughts inexorably towards the dreary burial-ground of electoral hopes.

As they draw nearer to that dismal place, the tune they have elected to whistle to keep up the courage of their jittery supporters is that old political favourite: “Don’t Worry, We’ve Been Here Before.”

Conservative voters are invited to cast their minds back to 1990-1993, the first term of the Jim Bolger-led National Government. (That rules out every voter under the age of 40, but, never mind, they can always Google it!)

In the years preceding the 1993 General Election, we are told by National’s whistlers, the opinion polls also showed National lagging behind its opponents. (One survey put them at just 21 percent!) When all the votes had been counted, however, National found itself with just enough seats to govern.

On the night, and facing the prospect of a hung parliament, Bolger was not moved to breathe a huge sigh of relief. In the run-up to election day, he had been persuaded that National was on track for a comfortable win. Denied his easy victory, a clearly frustrated Bolger was moved to deliver the most memorable quote of the entire campaign:

“Bugger the pollsters!”

But, National’s whistlers are forgetting something. The General Election of 1993 was the last conducted under the First-Past-the-Post (FPP) electoral system. Indeed, it was also the year in which New Zealanders voted decisively to replace FPP with Mixed Member Proportional (MMP) representation. Looking for solace in Bolger’s narrow 1993 victory is, therefore, a lot like looking for cheese in a chalk factory.

Not a good analogy, then? But wait, it gets weirder.

The Jim Bolger-led National Party had been swept to victory in 1990 on a wave of revulsion at the damage inflicted upon New Zealand society by Labour’s “Rogernomics” – the top-down free-market revolution for which it had never asked, or received, an unequivocal mandate. Promising a return to the “Decent Society” of happy memory, Bolger’s party romped home with just shy of 48 percent of the popular vote.

Three years later, after discovering that the Decent Society entailed the Employment Contracts Act, the Mother of All Budgets, and user-pays health care, National emerged from the last FPP election with just 35 percent of the popular vote. The anti-government parties, Labour, the Alliance and NZ First, between them accounted for 61 percent of the popular vote.

It is practically inconceivable that the 1993 election result, replicated under New Zealand’s current electoral system, would see the incumbent government returned to office. What happened in 1993, largely on account of the anti-government vote being split three ways, would not happen today, because under MMP the parties opposing the government would be allocated parliamentary seats in proportion to the number of Party Votes they received.

Barring something unprecedented occurring (like Labour entering into a “grand coalition” with National) if the 2026 General Election leaves the anti-government parties sharing 61 percent of the popular vote – as they did in 1993 – then they will have more than enough seats to form a government.

After all, the 50.6 percent claimed by Labour, the Greens and Te Pāti Māori in the Taxpayers Union/Curia Research Poll would still give them enough seats to govern.

National hung on in 1993 because, under FPP, 35 percent of the vote was enough to secure them just enough seats to govern. But National, Act, and NZ First, if they continue, as Bolger’s government continued between 1990 and 1993, to implement policies opposed by a significant majority of the New Zealand electorate, should not anticipate a similar, by-the-skin-of-their-teeth, happy ending.

And yet, this is precisely the advice being tendered to the Coalition Government by the Taxpayers’ Union and other assorted ideological cheerleaders. The very policies that are driving the Government’s numbers down, it is suggested, must not be discarded as electoral liabilities, but instead, “all options should be on the table”.

Rather than whistling past the graveyard, any government disposed to heed such advice should probably be praying in the church.

This essay was originally published in The Otago Daily Times and The Greymouth Star of Friday, 14 March 2025.

Leadership Problems.

Contenders: The next question after “Will Luxon really go?” is, of course, “Will that work?” The answer to that question lies not so much in the efficacy of Luxon’s successor as it does in the perceived strength of the Centre-Left alternative.

AT LEAST TWO prominent political commentators are alluding publicly to the imminence of a leadership spill in the National Party. Matthew Hooton and Duncan Garner have both written recently about the National Party’s growing dissatisfaction with Prime Minister Christopher Luxon’s performance. This sort of commentary would be much easier for conservatives to dismiss were it coming from the usual left-wing suspects, but neither Hooton nor Garner fall into that category. If the Centre (let alone the Right) cannot hold, then things are most certainly falling apart.

The next question after “Will Luxon really go?” is, of course, “Will that work?” The answer to that question lies not so much in the efficacy of Luxon’s successor as it does in the perceived strength of the Centre-Left alternative.

Chris Hipkins is pulling out all the stops to convince New Zealanders that Labour can indeed assemble a more effective and efficient coalition government than the fractious assemblage currently running the country. He used the occasion of his (rather belated) State of the Nation address to the Auckland Chamber of Commerce on Friday (7/3/25) to reassure the business community that his party is committed to comporting itself in a thoroughly non-threatening fashion.

As proof of these moderate intentions, Hipkins later announced a reshuffled, ‘all the talents’, shadow-cabinet – presumably committed to rolling out equally non-threatening policies. It is many years since horses crowded the nation’s streets, but even if they were still there, we may be certain that Labour has nothing planned that would frighten them even a little.

Does that mean that Labour has abandoned all thought of raising taxes, or, even worse, imposing that perennial horse-frightener – a Capital Gains Tax (CGT)? Not at all. It simply means that, in marked contrast to earlier Labour leaders, Hipkins intends to make the case for Labour’s revenue-enhancing policies well before the formal campaign launches in September/October 2026.

In this regard, Labour will be able to draw on the widespread global support for CGTs. New Zealand remains an outlier among the members of the OECD for the disinclination of its political leadership – Left as well as Right – to introduce a comprehensive tax on capital gains. Beset by the same demographic pressures as the rest of the developed world, the New Zealand state remains unusually reliant on income and sales taxes to pay for its core services. As the cost of these services, health in particular, continues to grow, the ability of the state to pay for them, without increasing its revenue, must be called into question.

Finance Minister Nicola Willis’s willingness to meet her government’s core obligations by incurring more and more debt will, as her Treasury advisers were quick to point out, very rapidly become economically unsustainable. But diluting those obligations, by reducing or privatising core public services will, even more rapidly, become politically unsustainable.

The present government’s economic and political difficulties are attributable almost entirely to its unfathomable decision to slash billions off the state’s income by cutting taxes when virtually every part of the state apparatus was crying out for more, and just about every responsible economist was arguing against it. Attempting to resolve the inevitable (and self-imposed) fiscal crisis by cutting state expenditure, has only compounded the Coalition’s difficulties.

On its face the Coalition’s behaviour seems self-defeating, which is why left-leaning commentator Rob Campbell’s latest contribution to The Post is so intriguing. In brief, Campbell sees a great deal more method than madness in the Coalition’s behaviour.

Stripping away its pious posturings and well-worn excuses, the former trade union leader reveals what he considers to be five key shifts at the heart of the Coalition’s policies:

• From public to private investment and delivery.
• From an emergent bi-cultural, back to a colonial nation.
• From universal to user charges.
• From regulated to market-use of resources.
• From limits on, to incentives for, private investment returns.

The temptation for Hipkins and his colleagues to pledge themselves to rolling-back the Coalition’s right-wing policy transitions will be strong. If they succumb, it would require an incoming centre-left government to reprioritise:

• Public provision over private enterprise.
• Tino rangatiratanga over colonial institutions.
• Universal provision over user pays.
• Rational regulation over laissez-faire.
• The public good over private interest.

This isn’t quite the pitch Hipkins made to the Auckland Chamber of Commerce. His purpose there was to play up the continuities embedded in National and Labour policy – especially with regard to the restoration of New Zealand’s decrepit infrastructure. Picking up on the growing disquiet at the Coalition’s apparent obsession with tearing down everything Labour had built, Hipkins was also careful to reassure his audience that while Labour might amend the policies of its predecessor, it does not share its affinity for the wrecking-ball.

The name for this approach is the “small-target strategy”. The idea being that the less one’s opponents have to aim at, the less they can hit. Sir Keir Starmer’s emphatic 2024 victory over the British Conservatives represented a huge vindication of the strategy, which might also be described as relying upon your opponent’s failures, rather than your own party’s policies, to carry you into office. Or, as Napoleon expressed the same idea: “Never interrupt your enemy when he’s making a mistake.” Bold and detailed policies are a dangerous distraction.

In the context of MMP, however, one’s own party’s commendable policy discipline can easily be compromised by the wild policy incontinence of one’s putative coalition partners. A strong and measured argument in favour of introducing a CGT on the part of Labour could all-too-easily be undermined by the Greens trumpeting a swingeing Wealth Tax on the non-tax-paying rich. And even that degree of fiscal radicalism might be overwhelmed by Te Pāti Māori demanding that full compensation for the crimes of colonisation be paid to tangata whenua.

Small wonder, then, that Hipkins is asking all those New Zealanders anxious to be rid of the National-Act-NZ First Coalition to play it safe by making sure that Labour receives by far the largest share of the anti-government Party Vote. Keeping the parliamentary representation of Labour’s potential coalition partners as small as possible will also limit dramatically their ability to demand excessive and/or outlandish policy concessions.

A Green Party heading into the election with 15 percent of the vote is much more likely to make trouble for Labour than a Green Party hovering just above the 5 percent threshold. A Te Pāti Māori facing stiff competition from Labour in all the Māori seats, and registering insufficient voter support to crest the MMP threshold, will find it harder to justify the angry performative politics at which it excels.

The chances of Labour winning back all those voters who deserted it for the Right in 2023 would, of course, be seriously enhanced if Hipkins felt confident enough in his position to execute what might be called a “Newsom Turn”.

Gavin Newsom, the Democratic Governor of California, last week turned his face against his party’s uncompromising support for transgenderism. By coming out against biological males participating in sports formerly restricted to biological females, Newsom signalled that he would run for President in 2028 on a “non-woke” policy platform. His decision is the strongest signal yet that the Democratic National Committee’s hold on the party’s ideological direction is faltering.

A similar signal from Hipkins, indicating that Labour’s infatuation with Identity Politics was also waning, would hasten the return of the tens-of-thousands of supporters alienated by Labour’s 2020-23 policies. The true test of Hipkins’ leadership, however, would be whether or not he could prevent tens-of-thousands of outraged “progressives” responding to his “Newsom Turn” by deserting Labour for the Greens and Te Pāti Māori.

Clearly, Christopher Luxon is not the only politician with leadership problems.

This essay was originally posted on the Interest.co.nz website on Monday, 10 March 2025.

The Only Other Reliable Vehicle.

An Elite Leader Awaiting Rotation? Hipkins’ give-National-nothing-to-aim-at strategy will only succeed if the Coalition becomes as unpopular in three years as the British Tories became in fourteen.

THE SHAPE OF CHRIS HIPKINS’ THINKING on Labour’s optimum pathway to re-election is emerging steadily. At the core of his strategy is Hipkins’ view of the Labour Party as the only other reliable vehicle for achieving an “orderly rotation of elites” – a position which defines the lowest respectable expectation of the democratic process.

Hipkins seems content to shadow the existing government’s policy options – with the single obvious exception of Crown-Māori relations. Were this not the case, the outcry of the Labour Opposition in regard to social-welfare policy, health policy, and even education policy would be much louder than has been the case to date.

A party representing “the preferential option for the poor”, which, as a political movement strongly influenced by the social teachings of both the Catholic and Methodist churches Labour most certainly was, right up until the late-1970s, would have a great deal more to say about the Coalition’s pestilential preference for sanctions over succour. That Labour’s statements on social policy and the poor have about them a decidedly pro-forma quality is, however, of a piece with the party’s real-world conduct when in power.

That Labour’s tax policy would have to be refashioned radically in anticipation of any genuine assault on poverty in New Zealand explains why it is currently the flashpoint of the party’s internal policy debates. Who holds the upper-hand in these debates is best registered by David Parker’s current caucus ranking. At No. 17 he is currently 13 places below Labour’s present Finance spokesperson, Barbara Edmond.

A Labour leader still firmly attached to his party’s founding principles would not have hesitated to allocate the finance portfolio to Parker. He was, after all, the person who, as Revenue Minister, presented his party with a tax package foreshadowing both a Wealth Tax and a progressive, tax-exempt, income threshold of $10,000. A package which also, significantly, enjoyed the support of the then Labour Finance Minister, Grant Robertson.

That the person who issued a “captain’s call” scotching the Parker/Robertson initiative is the same person who elevated Edmonds over Parker, is hardly to be wondered at. Chris Hipkins has little patience for such blatant social-democratic offerings. That a majority of Labour Party members are enthusiastic supporters of Parker’s progressive and redistributive tax suggestions, while very likely true, is also irrelevant. Rank-and-file preferences will not be enough to prevent “Captain” Hipkins from side-tracking his party away from tax reform in 2026.

Why would he not, when so many of the nation’s political journalists respond with Pavlovian reflexes whenever the word “tax” is mentioned? Hipkins is well aware of the damage done to Labour’s chances in election after election by the self-imposed necessity of having to stand in front of the cameras and explain to “hard-working New Zealanders” why the government should take more of their “hard-earned” income by increasing, and/or imposing new, taxes.

No, by far the best course of action, at least from Hipkins’ vantage-point, is the “small-target” strategy adopted by Sir Keir Starmer’s Labour Party in the run-up to the 4 July 2024 General Election. Napoleon Bonaparte is said to have advised his generals never to interrupt the enemy when he’s making a mistake. Starmer, in the same vein, determined to forbid his party from promising anything likely to distract the British voters from their all-consuming hate-affair with the Conservative Party. Did he care that this would deliver Labour only a default victory? Not a bit. With a 174-seat majority, he didn’t give a hoot.

But, Hipkins’ give-National-nothing-to-aim-at strategy will only succeed if the National-Act-NZ First Coalition Government becomes as unpopular in just three years as the Tories became in fourteen.

This is not the long-shot expectation which, at first sight, it might appear to be. Electorally, things only really turned sour for the Conservatives after Boris Johnson’s balls-ups. Prior to the tousle-haired one’s spectacular self-immolation, the Tory party seemed set for another ten years in office. It was only in the five years between their landslide win of December 2019 and the July 2024 election – a period that included the rigors of the Covid Pandemic – that the Tories’ hopes turned to ashes. Hipkins’ wager is that the Coalition’s fall from grace will be even faster.

And, in this, he may well be right. Driven by its smaller coalition partners, National finds itself in a place it has studiously (and very successfully) steered clear of since the social impact of the 1981 Springbok Tour solidified into the New Zealand electorate’s long-term and strong aversion to overtly racist political parties. Building on the impressive legacy of Jim Bolger and Doug Graham, National has taken care to paint itself as, if not the bosom buddy of Māori, then not their sworn enemy, either. That enviable achievement has been put at serious risk by National’s coalition agreement with Act and NZ First. If National is unable to shift Māori perceptions – and soon – then Hipkins is betting that, come 2026, the government will crash and burn.

Making free with the matches and gasoline will be, variously, the judiciary, academia, the public service, and the mainstream news media. Hipkins and his potential coalition allies in the Greens and Te Pāti Māori know that the impression left upon Māori and their Pakeha allies by the Coalition’s “anti-Māori” policies is already so deep and so negative as to render its wholesale elimination impossible. Any further refusals to apply the policy brakes risk up-ending the whole ethnically-charged mess into the nation’s streets.

That will not be pretty.

Some idea of what the country might expect is conveyed in blogger and podcaster, Martyn Bradbury’s review of “Autaia – Haka Theatre” staged in the Kiri Te Kanawa Theatre of Auckland’s Aotea Centre last Wednesday. This is how he describes the behaviour of the mostly young, mostly Māori, capacity audience’s reaction to projected images of the Coalition’s leaders:

During one of the performances, Seymour, Winston and Luxon come up in the background and when they did, all hell broke loose. The gasp of shock from the combined audience that these hated figures would suddenly appear in huge form in front of them was startling, and then that gasp of oxygen ignited with a fury and outrage that exploded from the lungs of over 2000 as they roared in naked rage at the three of them. It was like that moment in 1984 when they all start yelling at Goldstein. It was glorious.

This is the anger that Hipkins and his Praetorian Guard – Carmel Sepuloni, Megan Woods, Barbara Edmonds – are counting on. This is why they are surreptitiously shadowing National in respect of most of its policies unrelated to Māori and te Tiriti.

It is the Labour leadership’s calculation that if a major outburst of Māori rage occurs, and the state’s difficulty in bringing the situation under control is painfully exposed, then all that will be required is for Labour and its allies (by now both suitably house-trained) to step forward with the clear message that, as custodians of the “public welfare, peace and tranquility” of Aotearoa-New Zealand, National and its coalition partners have failed. To secure an orderly rotation of political elites, and put an end to the dangerous racial tension, New Zealanders must fulfil the most basic of their democratic duties – electing a government equal to the task of keeping its citizens from each other’s throats.

This essay was originally posted on the Interest.co.nz website on Monday, 26 August 2024.