Cunning Plan Or Suicide Note: The scale of English’s political folly is astonishing. His refusal to honour Key’s pledge on NZ Superannuation has front-footed the very political combination that National should be doing all it can to destabilise: Labour, NZ First and the Greens.
WE’LL PROBABLY NEVER KNOW whether yesterday’s announcement
on NZ Superannuation was carefully planned, or simply inept political
improvisation. Either way, it is highly likely that Bill English has just cost
National the 2017 General Election.
As if high-interest student loans and unaffordable houses were
not intergenerational injustice enough for Generation X, a Baby Boomer Prime
Minister has just advanced their retirement age from 65 to 67.
For older New Zealanders, English’s announcement has
stirred-up bitter memories. Fears that John Key’s pledge to leave NZ Super
alone had put to bed for nine years have been reawakened.
Very early on in his career as leader of the National Opposition,
John Key realised that he and his party were vulnerable on the superannuation
issue. In the bluntest terms, he understood that, in the minds of most older
voters, his party had “previous form”.
Too many of them remembered Jim Bolger’s “no ifs, no buts,
no maybes” promise to restore NZ Super to its former universal,
non-means-tested and un-surcharged status. The Bolger government’s subsequent
promise-breaking on NZ Super inflicted huge damage on National’s brand.
It was the making of NZ First.
Among the many “To-Do” items confronting Key in the run-up
to the 2008 election were, firstly: pushing Winston Peters and his party out of
Parliament; and, secondly: eliminating NZ Super as a negative issue for
National.
Strategically, these two objectives were inextricably
intertwined. If Key was to secure the required ideological head-room for his
new “Labour-lite” government, then Winston Peters’ voters would have to become
John Key’s voters. A National government obligated to Peters and NZ First would
make the John Key = National, National = John Key equation impossible. If
centre-Right New Zealanders were to repose their faith and trust in Key’s “Everyman”
brand, then Peters would have to go.
Key’s pledge: That he would resign as Prime Minister before
he would countenance any changes to NZ Super; was his inspired tactical
solution to his own, and National’s, double-headed strategic problem.
As it became increasingly certain that Helen Clark’s
government would fall, and the National/Act assault on Peters reached its
crescendo, Key’s pledge encouraged a crucial fraction of Peters’ followers to
believe that their damaged champion could be abandoned safely. Henceforth, that
“Nice Mr Key” would be there, right at the top, to look after them.
It was a definite “twofer” for National.
Clark had gone to considerable lengths to look after New
Zealand’s older voters and ensure as many as possible remained in Labour’s
column. Unfortunately, her support for Sue Bradford’s anti-smacking bill had
fatally undermined older voters’ trust and confidence in the Clark-led Labour
Party’s values.
Ordinarily, that would have prompted these voters to shift
from Labour to NZ First. Not this time. Peters’ “disgrace” and Key’s
unequivocal pledge had laid down a royal road to National as the pragmatic
custodian of “Mainstream New Zealand’s” core values. They defected in droves.
All of which makes English’s decision to advance the age of
eligibility by two years electorally incomprehensible. All he had to do to keep
National’s elderly supporters on side was to re-confirm Key’s pledge. ‘No
change to NZ Super’ was the simple and straightforward formula for removing the
issue from the 2017 election agenda.
So, why didn’t he do it?
The critics of NZ Super (which, unfortunately, includes the
Retirement Commissioner, Diane Maxwell) will do their best to paint English’s decision
as a brave attempt to prevent New Zealand Superannuation from becoming
“unsustainable”.
But English’s past pronouncements make it clear that he does
not believe the scheme is
unsustainable. Immigration flows and the over-65-year-olds remaining in the
workforce for longer will take NZ Super over the Baby-Boom hump quite
comfortably – after which the demographic stresses will reduce significantly.
The only explanation that makes any sense is that English
sees NZ Super as the last remnant of the welfare state’s universalist heritage
– and he hates it. His whole “social investment” approach to state support
reflects his determination to substitute “tightly-targeted” services for the
demonstrably more efficient and cost-effective policies of universal
entitlement.
In other words, English has allowed ideological extremism to
undermine his predecessor’s phenomenally successful pragmatism.
All that Little and Peters need to do now is loudly recommit
themselves to honouring Key’s pledge. Not only will this reassure older voters,
but it will also incentivise younger New Zealanders to get out and vote. After
all, if National can advance the age of eligibility in 2017, what’s to stop it
introducing a means test in 2018? Or changing the formula for calculating the
pension’s value in 2019?
The scale of English’s political folly is astonishing. His
refusal to honour Key’s pledge has front-footed the very political combination
that National should be doing all it can to destabilise: Labour, NZ First and
the Greens.
The proud defenders of NZ Superannuation.
This essay was
originally published in The Press of Tuesday,
7 March 2017.


