Category: 2020 NZ election

The difference between Green and Labour: a tale of two Finance Ministers

Photo source: Newshub

So the Greens co-leader James Shaw recently made a mistake. In his role as Associate Finance Minister approving funding for “shovel-ready” projects, he fought hard for a private “Green school” to get funding to expand their buildings and, therefore, their student capacity. There are many problems with what he did: forgetting to oppose private schools as per Green policy; supporting an approach to environmentalism based on individual education of wealthy elites’ children, rather than systemic change; finally showing some spine around the cabinet table and for this; being so out of touch with his party’s kaupapa and membership that he actually thought his actions would be seen as a “win” for the Greens. It was a big mistake and it doesn’t say anything good about Shaw’s political judgment.

But here’s what happened next: the Greens’ membership, supporters, and former MPs flipped out. They rightly criticised what Shaw did, instead of sycophantically defending his actions because he’s the party leader. And Shaw called an emergency meeting with members, admitted it was a mistake, apologised unreservedly, and tried to do whatever he could do to reverse his actions.

Meanwhile, Grant Robertson, Shaw’s fellow Wellington Central-based MP and carpool buddy*, was working on an announcement of his own. Robertson is also effectively the second most important leader of his party, and he’s also a Finance Minister… and not just an associate one, but the proper one.

Robertson’s announcement was that his party, Labour, are finally going to increase tax on the rich. First, they’ve brought in a new top income tax rate of 39% on income above $180,000. And second… there is no second. That’s it. In this country of notoriously low taxes on the rich, in the greatest economic crisis since the Great Depression, their revenue policy is: Bringing back the Helen Clark/Michael Cullen top income tax rate of 39c, but to qualify for that top tax rate you have to earn as much as someone working 183 hours and 10 minutes per week on the minimum wage. No wealth taxes, just a small income tax change that even right-wingers think is too low. Australia, the UK, and other OECD countries have higher income tax on the rich, lower taxes on the poor, and of course capital gains taxes, even before the COVID recession… but Labour’s pathetic approach is literally lower taxes on the rich than what Don Brash proposed as National leader in 2005.

So what happened next after Robertson’s announcement? Well, there was dismay and anger from the left and from the centre (this example from No Right Turn is characteristically concise and well-reasoned: If not now, when?). But did Labour’s membership and supporters revolt? Did Robertson, like Shaw, call an emergency members’ meeting, apologise profusely for his massive misjudgment, and do everything in his power to rectify his mistake? Nope. None of that. The leader of the country’s biggest union, the PSA, even welcomed the announcement. The policy stands, and will probably become government policy after the election, unless polls change and the Greens get some leverage. Yet another opportunity for Ardern’s and Robertson’s promised “transformational change” has been wasted.

And therein lies the difference between the Green and Labour parties.

* “carpool buddy”: My partner saw Robertson giving someone a ride in his Labour car during the 2017 election campaign, and she’s like 76% sure it was Shaw.

Special votes are increasingly turning towards Labour, away from National

So the final election results are out. The results weren’t too surprising… They produced the second of the two likely scenarios I outlined in my last blog:

  1. Golriz Ghahraman (Green) and Angie Warren-Clark (Labour) are in. Nicola Willis and Maureen Pugh (both National) are out.
    • Winston remains king/queenmaker. A Nat-NZF government would have 65/120 seats. A Lab-NZF-Green government would have 63/120.

I’m pleased to have Ghahraman and Warren-Clark in there, as they both seem like good people. They also make the Greens’ caucus 75% women and Labour’s caucus 45.65% women (but meanwhile National’s caucus is lowered to 30.36% women):

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Here’s how everyone did in the end (for similar numbers for previous elections, see my previous blog):

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In 2020 we could have even more seats swinging from National to Labour after special votes are counted, if the following four trends continue:

  1. Labour did their best ever on special votes: 18.91% better than on preliminary votes. Their previous best was last election, where they did 14.16% better.
  2. National did their worst ever on special votes: 21.12% worse than on preliminary votes. Their previous worst was last election, where they did 16.86% worse.
  3. There were more special votes than ever, even more than the Electoral Commission predicted: 422,094 or 16.29% of votes.
  4. This was the worst election ever for minor parties. National and Labour together won a massive 81.34% of party votes: the highest since party votes have existed:

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Meanwhile, TOP did an impressive 63.18% better on specials than on preliminary votes. Only a few parties have done better than this on specials:

  • Internet Mana in 2014 (97.58% better),
  • Mana in 2011 (77.34% better),
  • Māori in 2005 (68.76% better),
  • Green in 2002 (85.52% better).

This brought TOP up to 2.4% of total votes. This was towards the upper end of what we could have expected based on the polls, but it isn’t anything like the massive polling error that would have been required for them to crack 5%.

One fact from the final results that could give some hope to left-leaning people: The combined National-ACT vote has dropped below 45% for the first time since 2005.

Anyway, now that the final results are in, Winston claims he’ll finalise a coalition agreement within the next five days. Will he do it? Who will he go with? How productively will he work with them? Only time will tell… I can’t predict Winston Peters’ actions with spreadsheets.

After the election trauma: disappointment, anger, fear, hope

seatprojections

Election results: disappointment and anger

After the last election I wrote a blog entitled I was wrong. This time I was right, but I’m not happy about that, because what I was right about was basically that the polls would be pretty accurate.

I’m expecting special votes will be slightly favourable to the Greens and/or Labour at the expense of National, but it won’t be enough to change the basic configurations and possibilities.

So the result is about what we could have expected from recent polls and past polling accuracy. But of course this is a big disappointment for me and everyone who leans to the left, especially because slightly-less-recent polls were more positive for Labour vs. National. Those polls got our hopes up that we would have government change.

The main thing I’m devastated about is the Māori party being driven out of government, and I mainly blame Labour for that. Two kaupapa Māori parties have been driven out of Parliament in the last two elections. Of course, this is partly because of their decisions to sit at tables with rich white men. But it’s also partly because they’ve been taken out by their political opponents. I know that’s politics (and Te Ururoa himself helped defeat Hone last election), but it’s sad. The Māori party were an effective voice for Māori and for justice, and they held the major parties to account on Te Tiriti, which needs to happen. They were the best part of the National-led government and they would have been a good part of a Labour-led government.

Once again I’m angry at the undemocraticness of the 5% threshold for representation. The thousands of party votes TOP and Māori received mean those parties deserve a few seats between them: those party votes should be worth as much as party votes for the big parties. But the threshold (and their failure to qualify for the local-seat exemption) blocks those parties from getting those seats, because of the Electoral Commission’s undemocratic fear of a “proliferation of small parties” with extremist views. And yet ACT survives again because they & National use the local vote to their advantage.

 

The incoming government: hopes and fears

We don’t know yet what the government will look like, except that it will be some combination of just the four big parties (National has already cast David Seymour aside). While a Labour-NZ First-Green govt is technically possible, it would be a bit of a poisoned chalice for Labour and the Greens: firstly because a lot of people would (rightly or wrongly) consider this government illegitimate, and secondly because they’d have to work with Winston Peters. A National-Green government is also technically possible, but National would have to give some pretty enormous concessions for the Greens to decide the situation has changed and they’re now willing to risk electoral suicide by working with National.

On the whole, I’d be extremely surprised if it doesn’t turn out to be National-NZ First.1 We’ll have to wait and see what a National-NZ First government will look like. We’ll get some clues with coalition negotiations, and find out the rest over the next three long years.

They’re both terrible parties, so their government could be doubly terrible. But my hope is that since they’re terrible in different ways, they could somewhat cancel out each other’s terribleness. E.g. National are too committed to globalisation (for the sake of capitalism) to go too far in appeasing Winnie’s anti-immigrant sentiments. And NZ First are far more economically left-leaning than National,2 so they could hopefully stop National from going too far on neoliberalism. A bunch of things that were passed over the last nine years by National, ACT and Peter Dunne were opposed by NZ First. There is precedent for NZ First holding National to account on its extreme capitalism, such as in the 90s when the minimum wage was not increased during the whole term of the Bolger government until NZ First forced them to increase it in 1997. So I think there is some hope that this government will be not as bad as the government over the last three terms has been.

Secondly, there’s some hope that private members’ bills from the left will be taken over the line by NZ First. For example, it’s possible that a zero carbon by 2050 law could be passed this term.

Thirdly, there’s hope in the way the Overton window has shifted slightly leftward during this election campaign. Earlier on, it looked like it was shifting in a worrying immigrant-scapegoating direction, but the Greens repented of their immigration stance, Labour toned theirs down, National didn’t join in,3 and NZ First somewhat fizzled. The political conversation became more about issues that matter: poverty, homelessness, housing unaffordability, and river water quality (sadly, climate change not enough).

And I think there is some hope that this government will do at least something on these issues. Under Key, National’s line on these issues was basically “there’s no issue”, but under English it’s more like “there is an issue and we’ve got it under control”—not a dramatic difference but an important one. And there are some signs National are starting to actually act on some of these issues. For example, they’ve done some encouraging Housing First experiments in Hamilton and Auckland and it would be great if they made this nationwide.4 And in Paddy Gower’s debate, English famously committed to lifting 100,000 kids out of poverty (even if they have been conveniently vague on what poverty measure he’s using). If this happens, great. If not, it’s something to hold them to account for.5

My biggest fear is that NZ First will push National to revive its policy to abolish the Māori seats. It’s still their policy to do to this eventually, but it’s on hold because “now is not the right time” (translation: we have a government arrangement with the Māori party). Bill English has already said this won’t happen, and I don’t want to believe that he’d do it. He’s seemed quite different to Don Brash on te Tiriti and te ao Māori (and on basic human decency), but Bill English has disappointed me quite a bit over the last few months.

Last but not least, I also have hope that there will be a strong Labour-Green government in three years time. Hopefully Labour has got its act together more by then and is more Corbynite than it is now.

 

Footnotes

  1. Though Winnie will milk his technical queenmaker powers to gain maximum concessions out of National. 
  2. I see NZ First as roughly 2/3 Trump and 1/3 Sanders. 
  3. Not out of concern for immigrants so much as concern for immigrants’ low-wage employers, in my opinion. 
  4. Housing First is quite a radical reversal of the currently dominant mindset of having a bunch of conditions and sanctions in exchange for any welfare support. It gives an unconditional roof over the head first. Any state involvement in trying to change people’s lives comes after this, and isn’t a condition for having a roof over the head. And it works – it basically eliminates rough sleeping. 
  5. However, a third option is probably more likely: they’ll find a measure that allows them to say that they’ve met their target, even though the opposition and pretty much everyone else will say it hasn’t happened. They’ll continue to insist they’re right next election, as they did with the 11 billion dollar hole this time.