One month post New Zealand’s general election, the nation is mired in a protracted wait as three political parties struggle to forge an agreement on the composition of the next coalition government. The conservative National Party, securing a slim majority, initially aligned with the right-wing Act Party. However, subsequent voting results altered the landscape, necessitating a collaboration with the nationalist New Zealand First to secure the 61-seat majority required for government formation.
Christopher Luxon Faces Coalition Conundrum
Christopher Luxon, the incoming prime minister known for his corporate background, now grapples with the task of bridging the ideological chasm between Act and New Zealand First. The negotiation process, marked by significant policy disparities and personal clashes among party leaders, threatens Luxon’s target of forming a government before the Asia-Pacific Economic Cooperation summit in San Francisco.
Uncertainty Looms Over Governance
The delay in government formation has left the Labour Party’s leader, Chris Hipkins, operating as a caretaker prime minister. Political law professor Andrew Geddis underscores the prevailing uncertainty, attributing it to initial assurances that the process would be swift. Compromises on policies and the intricacies of the coalition’s structure are among the challenges the negotiating parties must surmount.
Policy Divergence Adds Complexity
Professor Brian Roper identifies key policy differences, complicating negotiations. National’s proposed tax cuts, relying on revenue from taxing foreign real estate buyers, clashes with New Zealand First’s nationalist stance on real estate. Additionally, Act’s push for a Treaty of Waitangi referendum, a bottom-line policy, presents further challenges, with Luxon previously deeming the idea “divisive and unhelpful.”
Mixed-Member Proportional System Dynamics
Duncan Grant, a political commentator, contextualizes the prolonged negotiation within New Zealand’s Mixed-Member Proportional (MMP) system adopted in 1996. While this system aims to prevent single-party dominance, it fosters coalition governments, with the longest negotiation period post-election being two months. Grant highlights the deliberate choice to avoid a single-party majority and stresses the necessity of the ongoing negotiation process.
