- A feature of MMP is the necessity for parties to consider coalition arrangements to enable the formation of a stable government. The experience of similar democracies to New Zealand with coalition governments is that policy is developed by consensus, it being recognised that cooperation is critical to the long term stability of coalition government.
- Even though parties form coalitions, the identity of each coalition partner is recognised as being legitimate. It is accepted that circumstances dictate that political parties going into coalition should focus on their similarities, on what they have in common and how they can bridge the gap between them in the interests of the country as a whole. It is an extension of this process that parties are able to cooperate in policy development and administration to ensure the greater public good.
- The Parties recognise that no party has an absolute mandate to put its own promised policies in place. The advancement of administration and policy positions requires negotiation, understanding and practical resolution of differences to achieve an acceptable position for the enduring of a coalition. Development of policy is achieved through consensus and good sense.
- The Parties have conducted negotiations with respect to the formation of a Coalition Government for the period post-election 1996. The Parties have agreed to the formation of a coalition subject to the terms and conditions of this agreement.
- Notwithstanding the formation of a Coalition Government, each party will preserve a separate identity and operating procedures in every respect, save and except where such procedures are incompatible with this Coalition Agreement whereupon the letter and spirit of this Coalition Agreement shall supersede each individual party's procedures.
- the requiring of the policy for consideration to be submitted to the other Party for their deliberation immediately such policy is formulated with any definitive detail.
- in circumstances where the Party receiving the policy seeks clarification and/or amendment to the policy then in such case they shall be given reasonable opportunity to debate such objection or amendment with that Party promoting the policy.
- neither Party to the Coalition shall in any way support any policy advanced by any other non-Coalition Party o rprivate member and, if a bill is introduced to the House, shall not vote in favour of such bill or abstain upon the vote unless and until the consent in writing has been obtained by both Parties to the Coalition.
- the Executive is to be comprised of those inside Cabinet and those outside Cabinet in numbers to be agreed by the Coalition Parties.
- Ministers shall be supported by Cabinet Committees to consider Cabinet papers.
- meet with sufficient regularity to ensure the proper and efficient administration of the Coalition.
- identify any points of contention likely to arise between the Coalition partners and develop a mechanism for resolution of such points in dispute.
- generally assist the flow of information and resources to each Party to ensure the stability of the Coalition Government.
- act as the communication centre for the development of new policy.
THIS AGREEMENT made this 10th day of December 1996
BETWEEN NEW ZEALAND FIRST Political Party registered under the Electoral Act 1993 (herein after referred to as "New Zealand First")
AND The NEW ZEALAND NATIONAL PARTY duly registered under the Electoral Act 1993 (herein after referred to as "National")
BACKGROUND
A. In 1993 the people of New Zealand chose mixed member proportional as an electoral system to replace the first past the post electoral process. That was a decision made after lengthy debate and as such represented the will of the majority of New Zealanders who desired a new electoral system thereby permitting greater participation in the electoral process.
1. INTERPRETATION AND DEFINITIONS
1.1 Definitions
In this agreement, and any schedules to it, the following terms shall, unless the context otherwise admits or requires, have (with or without the definite article) the following meanings:
"Coalition" means the arrangement agreed upon between New Zealand First and National in terms of the agreement set out herein.
"Cabinet" means those Ministers inside Cabinet.
"Commencement Date" means the 10th day of December 1996.
"Fundamental Dispute" means a dispute as defined in clause 13.
"Ministers" shall mean such persons appointed as Minister of the Crown by the Governor-General.
"Parties" means New Zealand First and National.
"Select Committees" shall mean those Committees established under the Standing Orders of the House of Representatives.
1.2 In this agreement reference to the plural includes reference to the singular and vice versa.
1.3 Headings
Headings inserted in this agreement are for convenience of reference only and do not affect the interpretation of this agreement.
2. THE POLITICAL PURPOSE OF THE COALITION
2.1 The purpose of the Coalition shall be to provide sound and stable Government for New Zealand for a three year term concluding with the 1999 General Election or such later time as the Parties may agree.
3. POLITICAL DIMENSION OF THE COALITION
3.1 The Parties shall at all times act in accordance with this agreement and in the best interests of the New Zealand people on sound economic and social principles and endeavour to provide good Government for the people of New Zealand and in particular to govern according to the fundamental principles of the Coalition as set out in paragraph 3.2.
3.2 Fundamental Principles for Coalition
It is hereby agreed that the Coalition accepts that there are some fundamental principles by which the Coalition should govern. To that extent the Coalition has a commitment:
(a) To act at all times in accordance with the letter and spirit of this agreement and endeavour with cooperation and consensus to fulfil the policies set out, putting aside the personality, party philosophical and day to day differences to give overriding priority to the interests of the Coalition.
(b) To recognise the crucial role of our cultural heritage, our shared history and that differences and diversity have developed which represent both challenge and opportunity. This heritage has forged a special New Zealand identity, has been the source of our values and determines the direction we should be taking.
(c) To provide sound, stable government on an agreed basis, implementing orthodox economic policies in line with or better than the best international practice for a forward looking, successful democracy.
(d) To ensure there is an economic climate that is conducive to sustainable development and growth, to achieve more employment opportunities, high quality education and social services, through a strong commitment to low inflation, prudent and conservative fiscal management and over time, lower taxes and reduced public debt.
(e) To maintain an open, internationally competitive economy to support a strong export sector, particularly by managing cost structures downwards and continuing deregulation and policies to stimulate private sector and individual performance.
(f) To plan for the country's future not only by ensuring that a strong economy is central to the Coalition policies but also by placing emphasis on intergenerational fairness and increasing the national savings rate by the most effective means possible.
(g) To undertake government in a manner that generates pride in New Zealand values and character, that emphasises the interest of New Zealanders and builds on the benefits of the New Zealand environment and our opportunities to enhance the quality of life for people.
(h) To adopt sound economic management in order to provide resources to improve our education system, to improve the opportunities of young people to prepare themselves for life and employment and to secure second chances and enhanced opportunities for older people.
(i) To provide health and social services vital to the well-being of a fair and compassionate society and in particular focus on those who through misfortune or bad luck become over-represented in the statistics of dependency, educational failure, ill-health, child mortality and law breaking.
(j) To encourage the maintenance of values in society that support family units, respect for one another and the fundamental institutions of society.
(k) To continue to settle as expeditiously as possible, in a spirit of goodwill and integrity, outstanding Maori claims and grievances, having regard to the nature of Treaty settlements already made and to respect the spirit and letter of the Treaty of Waitangi as a founding document in New Zealand.
(l) To provide adequate security within the country and abroad to ensure people feel safe in their homes and communities and that New Zealand contributes responsibly to international defence and peace-keeping.
4. PARTIES' OBLIGATIONS
4.1 Each Party shall:
(a) Diligently attend to and devote as much time and attention as required as shall be necessary for the efficient carrying on of a Coalition Government and will cooperate in all reasonable ways to ensure sound, stable and effective government is maintained in the best interests of the people of New Zealand.
(b) Disclose to each other any associations with interest groups, lobbyists or any other entity or body likely to influence one or other Party in the formulation of policy for or administration by the Coalition.
4.2 Prohibitions
Neither Party shall:
(a) Neither Party to the Coalition shall in any way support any policy advanced by any other non-Coalition party or private member and, if a bill is introduced to the House, shall not vote in favour of such bill or abstain upon the vote unless and until the consent in writing has been obtained by both Parties to the Coalition.
(b) Do anything which directly or indirectly competes with the Coalition whereby the interests of the Coalition contemplated by this agreement may be prejudiced.
5. POLICY
5.1 It is agreed that as a starting point the policies and processes in place on the 12th of October1996 shall be supported unless amended by the policy agreements set out in Schedule A, or subsequently amended in accordance with the terms of this agreement.
5.2 The Parties adopt the broad principles, policies and priorities as set out in Schedule A.
5.3 It is acknowledged that the Coalition requires a process for reconciliation and promotion of policy during the term of any Coalition Government. Such process will include:
6. BUDGETARY PROGRAMME
It is acknowledged that certain policies agreed by the Parties will require additional spending not anticipated in the 1996 Budget. To that extent the Parties are agreed that a budgetary programme prioritising expenditure will be prepared with the consent of both Parties, such programme being within the fiscal parameters as set out in Schedule B.
7. STRUCTURE OF ADMINISTRATION
7.1 It is accepted that the constitutional requirements of the Constitution Act 1986 and Standing Orders will require the retention of existing Executive structures subject to amendment as set out in this agreement.
7.2 In particular, the Parties agree that:
7.3 Membership of the Executive
(a) It is acknowledged and agreed that the Executive shall be filled by twenty Ministers inside Cabinet and six Ministers outside Cabinet.
(b) Upon commencement of the Coalition, National shall have fifteen inside Cabinet and two outside Cabinet, with New Zealand First having five inside Cabinet and four outside Cabinet. By 1st of October 1998 the composition of Cabinet shall be changed to the extent that National shall have twelve inside Cabinet and three outside and New Zealand First shall have eight inside Cabinet and three outside.
(c) The New Zealand First Leader as at commencement shall hold the position as Treasurer, a newly created position which will be the senior position of the finance portfolio. He shall also be the Deputy Prime Minister.
(d) All members appointed to the Executive shall be parliamentarians and comply with the requirements of the Cabinet Office Manual (August 1996) and associated Cabinet Office circulars and will accept the conventions of Cabinet responsibility and Cabinet confidentiality, save and except as otherwise provided for in this agreement, it being acknowledged that general procedures to be retained are:
(i) Cabinet to meet at fixed times agreed.
(ii) Cabinet meetings to be chaired by the Prime Minister, or in the Prime Minister's absence the Deputy Prime Minister, or in the Deputy Prime Minister's absence the most senior Minister.
(iii) all Ministers are required to attend Cabinet unless prior leave is given by the Prime Minister in consultation with the other Coalition Party Leader.
(iv) agendas are to be drawn up by the Cabinet Office, submitted for approval to the Prime Minister for approval in consultation with the other Coalition Party Leader in advance of Cabinet meetings.
(v) as a general rule Cabinet papers are to be considered by Cabinet Committees before reference to Cabinet (and the Leaders of both Parties).
(vi) as a general rule Cabinet papers are required to have been through formal consultation procedures among the Coalition partners before being placed on the agenda.
(vii) papers for the Cabinet agenda must be submitted to the Cabinet Office no later than two days prior to the Cabinet meeting.
(viii) Cabinet papers are to be distributed to all Ministers of Cabinet.
(ix) attendance at Cabinet meetings is limited to Ministers, the Secretary of Cabinet and any assistant as necessary.
(x) quorum of Cabinet to be at least one half of each Coalition partner's appointees to inside Cabinet Ministerial positions.
7.4 Cabinet Committees
As it is acknowledged that Cabinet Committees should consider issues in advance of Cabinet, protocols are required as to the composition and consultative role of those Committees. To that extent it is agreed:
(i) The Parties will agree to establish an appropriate number of Committees and Sub-Committees that reflect the core functions of the Cabinet.
(ii) Cabinet Committees will comprise at least two members, one from each Party, with additional members as agreed by the Coalition partners from time to time.
(iii) Officials as necessary shall attend Cabinet Committee meetings.
7.5 Voting in Cabinet or Cabinet Committees
It is agreed that every endeavour shall be made for decision making in Cabinet to be on a consensus basis. In respect of Cabinet Committees it is acknowledged that competing points of view, if any, will be submitted to Cabinet unless same is agreed unanimously by the Cabinet Committee.
7.6 Collective Responsibilities
The established conventions of collective responsibility and confidentiality are accepted.
8. MAJOR POLICY ISSUES
8.1 The Prime Minister shall speak for the Government on major policy issues agreed by the Coalition Parties.
8.2 Cabinet Ministers
For the term of the Coalition portfolio responsibilities will be agreed between the Party Leaders as per the proportions set out in paragraph 7.3. The Party Leaders shall also agree on the rankings inside and outside Cabinet to be allocated to each Party and Party Leaders shall then rank his or her nominee to these rankings. A Party Leader may dismiss a Cabinet Minister from their Party and replace with another.
8.3 Leader of the House
The Leader of the House shall be chosen by agreement between the Coalition Party Leaders.
8.4 Appointment of The Speaker
The nominee for Speaker of the House will be agreed by the Party Leaders.
8.5 Whips
Each Coalition partner shall appoint one Whip for the orderly administration of the Coalition Government in the House.
8.6 Political Appointments
Political appointments whether by way of review or new appointments shall be made with the joint consent of the Coalition Parties or Party Leaders pending the establishment of an independent body.
9. MANAGEMENT OF COALITION
9.1 The Parties shall each appoint three persons to represent each Party on a joint committee, such committee to have the role of managing the Coalition to reflect the intent that the committee shall ensure the effective administration of the Coalition on a Party to Party basis and to that extent the committee members shall:
10. PUBLICITY
All public statements regarding the Coalition, as distinct from the administration of Government, shall be authorised jointly by the Leaders of the Coalition partners.
11. TERM OF COALITION
11.1 This agreement shall have effect from the Commencement Date and shall remain in effect until the earlier of:
(a) a General Election.
(b) the expiry of the written notice given with respect to the inability to resolve a fundamental dispute.
(c) an agreement to terminate, signed in writing by every Party to the Coalition.
11.2 In the event of the Coalition terminating, formal notice to that effect shall be given by the Prime Minister within forty-eight hours to the House or, if the House is not sitting, to the Speaker.
12. CONFIDENTIALITY
12.1 Confidential Information
All records, reports and other documents relating to the Coalition are confidential whether oral, written or embodied in any other physical form except if:
(a) the information was known to the receiving Party on the date of its receipt; or
(b) the information was in the public domain on the date of its receipt; or
(c) the information had entered the public domain after the date of its receipt other than by unauthorised disclosure by a Party or any other person.
12.2 Neither Party shall disclose in whole or in part any confidential information received except as approved in writing by the other Party, or where necessary to carry out the terms of this agreement.
12.3 Before any confidential information is disclosed to a third party the Party about to so disclose shall inform the other Party of its intention to disclose, and shall inform such third person of the confidentiality obligations under this agreement, and require such third person to be bound by the same confidentiality obligations.
13. DISPUTES
13.1 Fundamental Dispute Defined
The words "Fundamental Dispute" for the purposes of this clause include any dispute involving matters which could lead to substantial injury to the Coalition and which appear on reasonable grounds to be incapable of satisfactory long term resolution by negotiation.
13.2 It shall be the responsibility of the Party Leaders to endeavour to resolve any dispute that may arise relating to the interpretation of this agreement or the obligations under it, or any other matter which may prejudice the Coalition.
13.3 Dispute Resolution
If a Fundamental Dispute arises in the opinion of one Party the dispute shall be referred to a Coalition Dispute Committee comprising the Leaders, Deputy Leaders, and Presidents of every Party to the Coalition. The Coalition Dispute Committee will negotiate in good faith to resolve the dispute.
13.4 Where resolution of a Fundamental Dispute cannot be resolved by the Coalition Dispute Committee, any Party to the Coalition may give to every other Party to the Coalition written notice that unless the matter is resolved within a period of seven days the Coalition will be terminated.
14. EXCLUSION OF COURTS
The Parties agree that this agreement shall not be justiciable in the Courts of New Zealand.
15. ADDITIONAL SIGNATORIES
The Parties may agree, after due consultation with their respective Caucus and party organisation, to invite another political Party represented in Parliament to become a member of the Coalition. Any such Party shall first sign this agreement and be bound by its terms as modified by agreement.