Government apology and Treaty divisions trump tax and banks
ANALYSIS: Political consensus around the formal apology over abuse in State care but plenty of division over the Treaty Principles Bill.
ANALYSIS: Political consensus around the formal apology over abuse in State care but plenty of division over the Treaty Principles Bill.
Two big events dominated politics this week and Māori were at the centre of both.
First, on Tuesday, Prime Minister Christopher Luxon made a formal apology for the abuse people suffered in State care. While the abuse did not discriminate, Luxon noted that Māori were disproportionately victims of it.
Then, on Thursday, the Act Party’s contentious Treaty Principles Bill had its first reading in Parliament. It ended with a haka from the bill’s opponents and Speaker Gerry Brownlee suspending Parliament until order could be restored.
Act leader and Associate Justice Minister David Seymour, who is responsible for the legislation, was the target of heated criticism, with Labour MP Willie Jackson ejected from Parliament for calling him a “liar”. Te Pāti Māori MPs then challenged him with a ‘Ka Mate’ haka as the vote was being taken; they were joined by other MPs and Ngāti Toa members in the public gallery.
Seymour described it as disappointing behaviour and it made him worried about the state of the debate.
But former National Government Treaty Negotiations Minister Christopher Finlayson said there was nothing surprising about the response in Parliament. “I think David’s got to understand that, while he may want a nice, rarefied, intellectual seminar on the principles of the Treaty, it’s a lot more than that.
“It goes to the heart of what tangata whenua aspire to and so on, and it can’t be seen as a mere debate,” Finlayson told RNZ.
Earlier in the week, 40 King’s Counsel had also written an open letter opposing the legislation.
But now it goes to select committee for consideration, so the Government must deal with the controversy for the next six months until it comes back to Parliament, at which point Luxon promises the National Party will vote against it.
In contrast to the political division of the Treaty Principles Bill debate, earlier in the week, political parties were unanimous in their support for the apology to survivors of abuse in State care. There is agreement too on what the Government must do to ensure such abuse does not happen in the future and that it must pay meaningful compensation to those who suffered.
But survivors were still left with unanswered questions, particularly around just how generous or parsimonious the Government will be with whatever payout it decides upon. That will not be known until next year when Finance Minister Nicola Willis delivers her second budget.
For survivors, if the compensation package is seen as measly, then all the words of apology this week will be for nothing.
On more mundane matters – which perhaps only accountants get excited about – Revenue Minister Simon Watts announced the Government’s tax working programme for the next few years.
As expected, it does not include new taxes and certainly there is no mention of a capital gains tax. Instead, Watts said the Government believes the current mixture of personal income tax, GST, and corporate tax is enough to raise the money the Government needs to provide public services.
He says the tax work programme will look at removing tax obligations that are obstacles to growth, for example by simplifying tax rules for non-resident contractors. It will also look at supporting the transition to digital tax administration for tax intermediaries; make it easier for small businesses to comply with tax law; consider whether the New Zealand Superannuation Fund should be exempt from paying income tax to free up more money for retirement savings; and continue to improve FamilyBoost payments to help families with early childcare costs.
Meanwhile, Luxon did get a call from United States President-elect Donald Trump this week, which allowed him to congratulate Trump on his election win.
In the 10 to 15-minute call, Luxon says they spoke about global security matters, the Pacific region, and trade, but the issue of tariffs did not come up. For Luxon the talk was all about establishing a relationship.
He says it went well, and that Trump has a positive image of New Zealand, having visited here a couple of times previously.
The question now is will that positive view help insulate this country from any negative effects of Trump’s trade policy, if he goes ahead with plans to impose higher tariffs on imports to the US?
Banks were back in the gun this week, with ASB having its turn in front of the Finance and Expenditure Select Committee’s inquiry into banking competition.
ASB chair Dame Therese Walsh effectively told MPs the bank’s massive profits helped customers by ensuring the stability of the bank and allowing it to source overseas funds at lower interest rates. Implicit in her argument was that, if the bank did not make such big profits, it would pay more for funding and that would be passed on to customers in higher interest rates.
The committee seemed unimpressed, with National and Act MPs most aggressive in their questioning of the bank and its return on equity.
But back to the first reading on the Treaty Principles Bill. Luxon was not in the House for the debate, having left Wellington to head to Lima, Peru, for the Asia-Pacific Economic Cooperation leaders’ meeting. It is his first Apec meeting and surely an opportunity to discussion with other leaders what Trump’s presidency might mean for the region and its efforts to have a more open trading environment.
He gets back to New Zealand on Monday, though, in time to witness the hikoi arriving at Parliament the next day. While the Treaty Principles Bill has given the hikoi its focus, hapū and iwi and others remain concerned about a range of policies being pursued by the Government.
Treaty Negotiations Minister Paul Goldsmith outlined what those were when he explained to Parliament why National would eventually vote against the bill, saying the Government was already taking steps issue-by-issue to ensure people were treated equally.
“That’s why we have reasserted the principle that healthcare should be delivered on the basis of need alone. That’s why we’re pushing back against the previous Government’s move against equal voting rights in local government. That’s why we’re unwinding co-governance arrangements in core public services and a separate Māori Health Authority. That’s why we’ve taken the unusual step of overturning the reasoning behind the Court of Appeal ruling in the Marine and Coast Area Act to restore the high test before the customary marine title is awarded on parts of our coastline. That’s why we’re embarking on the mammoth task of reviewing the Treaty references in existing legislation to ensure that they’re clear about what Parliament does and doesn’t mean,” Goldsmith said.
It is also likely why thousands of protesters will turn up at Parliament on Tuesday to register their opposition.
Finally, the United Nations climate change talks – COP29 – are under way and Climate Change Minister Simon Watts arrives in Azerbaijan over the weekend to represent New Zealand. As well as being accompanied by officials, Green Party co-leader Chlöe Swarbrick and Labour’s environment spokesperson Rachel Brooking are also part of the delegation attempting to get more substantive commitments to reduce global emissions.
Will the conference achieve anything, or will it just produce more hot air and more carbon emissions?
Beehive Banter is hosted this week by Mike McRoberts, with NBR’s political editor Brent Edwards.