The last few weeks of coalition negotiations have been reminiscent of the Mainland Cheese advertisement on television, where the cheesemakers wait, and wait, for the cheese to say it is ready.
Now,
with the imminent swearing-in of the new three-way coalition government,
attention will shift from the process of its formation and the tedium that
induced, to the job that lies ahead of it over the next three years. The new
government comes to office at a time of heightened international tension
arising from the ongoing war in Ukraine, the mayhem and carnage in Gaza, and
the fallout from increasing super-power rivalry in our own part of the world.
On the domestic front, inflation, high interest rates and an economy hovering
just above recession are at the forefront of most peoples’ minds.
The
new government will therefore want to hit the decks running, both to
demonstrate the viability and credibility of the new coalition arrangement, and
to introduce some of its promised immediate legislation. The principal item
here will be the Mini-Budget incoming Finance Minister Nicola Willis has been long
promising, but it is also likely the government will want to introduce other
items of legislation that reflect the key parts of its agreements with ACT and
New Zealand First.
That
will not be as easy as it sounds. It is possible, but unlikely, that the new 54th
Parliament will be summoned to meet next week. The following week seems more
likely. The ceremonies associated with the Opening of Parliament will take up
most of the sitting time available during Parliament’s first week. These
formalities include the Commission Opening by a panel of senior Judges, the
swearing-in of Members, the election of the Speaker, the State Opening of
Parliament by the Governor-General with the Speech from the Throne, and the
moving of the Address-in-Reply debate in response.
That
will leave just two sitting weeks before Christmas. Although the timetable will
be very tight, it should allow sufficient time for the government to introduce
some legislation, and to pass through all stages any legislation associated
with the Mini-Budget especially if the government takes Urgency to extend
Parliament’s sitting hours.
But
again, things are not quite that simple. The new Ministers do not have any
authority to direct their departmental officials to begin work on any of the
new government’s plans, until they have been sworn in as members of the
Executive Council early next week. This is particularly pertinent to the
development of the Mini-Budget.
While
it is highly likely that Willis has been working on the content of that
statement since the election, she has been unable to seek any Treasury input
into its content until she is formally sworn in as Minister of Finance.
Although the content of the statement is properly her (and the government’s)
political prerogative, it would be extraordinarily unusual – not to mention
massively unwise – to proceed without Treasury’s advice and input. Allowing for
Cabinet approval of the content of the Mini-Budget, it is unlikely to be introduced
to Parliament before the end of the week after next at the earliest. It would
be prudent (if a little symbolic given the time available) for the government
to then refer any legislation associated with it to the Finance and Expenditure
Committee for what would only be the briefest and most perfunctory of
consideration, before being passed through all its remaining stages in
Parliament in the week before Christmas.
The
Mini-Budget will be the government’s first big challenge. It must get it right,
so it cannot contain any errors, or loopholes that will be subsequently
discovered. This puts additional pressure on Willis, her staff, and officials.
Aside from its content – likely to be pared back anyway from the scope
initially foreshadowed – the Mini-Budget will be an early test of her
credibility as Minister of Finance. Not only the public, but also the financial
markets, will be watching in critical judgment, and their broad reaction will
help frame the way in which the government is perceived as its term unfolds.
Other
key aspects of the government’s legislative programme are less critical at this
stage. If ready, they can be introduced to Parliament before the Christmas
recess, then referred to the relevant select committees for consideration over
the next few months.
Overall,
though, the next few weeks through to Christmas will be a chance for new
Ministers to demonstrate their capability and intent to the public, and to
shape the political agenda for next year and beyond. The government will be
keen to leverage off new Prime Minister Chris Luxon’s brand as crisp,
competent, no-nonsense, decisive and in charge. Given its unique make-up – New
Zealand has never had a three-way coalition government before – all three
parties will also be keen to show they can make the arrangement work.
Although
the Labour and the other Opposition parties will not be all that relevant to
the political process in the lead-up to Christmas and the foreseeable future
beyond, the pre-Christmas Parliamentary sitting will provide an opportunity to
assess what sort of an Opposition they will be. It will be interesting to see
how quickly they adapt to the role of holding the government to account and
exposing any shortcomings, and how effective they will be.
After
a long political year, and a hectic time in Parliament before Christmas,
politicians might be forgiven for looking forward to a decent summer break to
recharge their batteries. However, they are almost certainly going to be
disappointed – Luxon has already made it clear he thinks Parliamentarians have
too long a summer break. He wants things to resume much earlier in January than
has been customary.
So,
after weeks of political radio-silence where nothing much appeared to be
happening, we now seem set for a period of frenetic political activity. The
relative quiet of the last few weeks is at an end.
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