Analysis by Dr Bryce Edwards.
Political Roundup: Nash’s sacking means a deeper probe into Cabinet “insider trading” is required
Cabinet Minister Stuart Nash was sacked last night for violating Cabinet Collective Responsibility rules, when it was revealed he disclosed sensitive Government information to business supporters who had donated money to him. The breach of the Cabinet Manual was enough to land him in trouble, but the fact that it involved leaking information to his financial backers is what makes this a truly significant scandal.
A 2020 email from Nash to two of his financial backers was leaked to the media yesterday. It detailed Cabinet decision-making on an issue relating to Nash’s business donors’ property interests – rent relief for Covid-hit businesses. Nash’s email to Wellington businessmen Troy Bowker and Greg Loveridge revealed positions ministers had taken on the matter, and stated he disagreed with the decision they reached.
For many New Zealanders this will look corrupt and will reduce public confidence in the integrity of the political process. In this situation, Nash took $25,000 from two property developers in the 2017 and 2020 elections. The politician then provided those commercial property investors with privileged information about decisions and debates inside Cabinet on an issue pertaining to their interests.
Voters might also be forgiven for suspecting this is a common occurrence. After all, what else do business donors get from helping Cabinet Ministers and other politicians? In the New Zealand political system, it’s never been clear. We are often told by politicians and business donors that there are “no strings attached”. That has always stretched credibility.
An Independent inquiry into Cabinet-Donor relations is required
An independent investigation is now required about Nash’s dealings with his various business donors while he has been a minister of the Crown. There is now reason to question whether this sort of behaviour has occurred at other times in Nash’s political career. He certainly has a colourful and questionable history of political fundraising.
The question might also apply to others in government, as donations in New Zealand politics are incredibly murky. We simply don’t know what impact they have on the public policy process, except when the occasional whistle-blower allows the media and public some access to what is going on behind the scenes between wealthy individuals and decision-makers.
As Stuff political editor Luke Malpass says today, the donations aspect means “what had a bit of a whiff, became a stench.” He says the pressure on Hipkins to launch a probe into the matter will be significant, as there are too many unanswered questions about the donor-Cabinet relationship – such as: “Who else has he given sensitive information to? Has some of that inadvertently been used to make someone money somewhere?”
There will be a suspicion that Nash’s business donors were lobbying in their own financial interest, and that the politician was essentially involved in “insider trading”. The Leader of the Opposition has even labelled it as such, and called for Nash to resign from Parliament, stating that “integrity really matters”.
Luxon went on TV this morning to explain: “We haven’t actually seen something like this before in New Zealand … You’ve got a Cabinet minister, were confidential information is being discussed in Cabinet, who then is leaking and sharing that information with his donors. That is an incredibly serious and egregious issue… And how can he not be sure that other information hasn’t leaked with respect to [his] economic development or forestry or fisheries portfolios?”
Prime Minister Chris Hipkins says that Nash’s sacking ends the issue for him. But political journalists are questioning this, and applying pressure for a proper inquiry. New Zealand Herald political editor Claire Trevett has disagreed with Hipkins’ suggestion that the issue is at an end, saying “it should be his job to make sure such a probe is done. Nobody should be getting inside information on decisions Cabinet has or is about to make – especially those with financial consequences. And the public also needs to be assured that ministers aren’t lobbying for their mates or donors around the Cabinet table.”
Likewise, Newsroom political editor Jo Moir writes today that “the sacking doesn’t erase those perceptions of influence, and it is unclear how many other instances of similar behaviour there may have been in the five years Nash had been a minister.” Moir therefore argues “It’s highly likely some sort of wider investigation will need to be conducted to ensure there haven’t been any other situations where confidential Cabinet information has been leaked and used for personal gain.”
Broadcaster Duncan Garner also thinks a thorough inquiry is now needed, because “We like to think corruption is not here but we are dreaming to say it’s not. What Nash did amounts to a form of corruption.”
Garner suggests that either the Auditor General or the Police might undertake the inquiry: “Every piece of work and all the appointments he made as a Minister must now be scrutinised by an independent inquiry, perhaps overseen by the Auditor-General so as to give the PM and public confidence there is nothing more to this. Only an independent inquiry can do this and if it has to go to the NZ police so be it.”
Donations to Nash point to a potential future with NZ First
The business donors who have backed Stuart Nash are also major contributors to the New Zealand First party. Wellington property investor Troy Bowker, who gave Nash $15,000 for his 2017 and 2020 election campaigns also donated to Winston Peters’ party. According to Richard Harman’s account today, “In 2019 he gave them $24,150; in 2020, $29500, to which his company, Caniwi Management, added another $29,500 and in 2021, $30,000.”
Nash also received donations of $5000 in 2017 and 2020 from businesses involving Greg Loveridge, who was the other recipient of Nash’s Cabinet information. And the businesses donating to Nash also gave NZ First $45,000 in 2020.
According to Harman, “That intersecting web of financial connections between Nash and NZ First and his known friendship with both Peters and Shane Jones raises questions about whether he might leave Labour for NZ First.”
Harman also reported Peters defending Nash last night, saying “The only mistake he made was to share his thoughts, and sometimes in a transparent democracy, we should be allowed to do that”. And so, Harman argues that with Nash’s time with the Labour Party now over, the politician’s “only possible lifeline would be NZ First.”
Clearly Nash has a close connection with New Zealand First, and they both increasingly appear to be ideologically in sync. And today, Claire Trevett says that Nash will have to decide whether “he can resurrect a political career with another party”.
Such a hop to another party would be a big deal, and it’s not clear that this is in Nash’s nature. An announcement of retirement seems more likely. Of course, Nash could leave Parliament soon, without causing a byelection, and because of New Zealand’s complete lack of regulation he could take his skills and connections and walk straight into a career lobbying the ministers he was sitting around a table with yesterday.
Further reading on Stuart Nash
Claire Trevett (Herald): Stuart Nash’s sacking was a no-brainer – but questions linger (paywalled)
Jo Moir (Newsroom): Perception problems hang over PM after inevitable Nash sacking
1News: Nash sacking makes PM look ‘strong’ – analyst
Richard Harman (Politik): The links between Stuart Nash and NZ First (paywalled)
Nick Truebridge (Newshub): Questions raised over donations received by Stuart Nash from timber, forestry industry
Luke Malpass (Stuff): The tragedy of Stuart Nash’s sacking and Labour’s troubled times ahead
Grady Connell (Today FM): Stuart Nash’s ex-colleague not shocked his loose lips have seen him sacked
Duncan Garner (Today FM): Self-serving Nash and his many ‘maaates’
Jacqui Van Der Kaay (Democracy Project): Broken trust led to sacking
Rachel Smalley (Today FM): Stuart Nash is gone – We’ve lost one of the good ones
David Farrar (Kiwiblog): Nash sacked
No Right Turn: Sacked for corruption
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Thomas Coughlan and Adam Pearse (Herald): Stuart Nash sacked from Cabinet, but won’t stand down as Napier MP
Anneke Smith (RNZ): ‘No by-election’: Stuart Nash says he plans to stay in Napier seat after sacking
Thomas Manch (Stuff): Stuart Nash says he won’t trigger a by-election in Napier
Luke Malpass (Stuff): Stuart Nash sacked as minister after email to donors emerged
Bridie Witton (Stuff): PM Chris Hipkins ‘gutted’ as he sacks Stuart Nash over Cabinet leaks
Anna Whyte (Stuff): Stuart Nash ‘needs to leave Parliament tonight’ – Christopher Luxon
Newshub: National leader Christopher Luxon calls for Stuart Nash to leave Parliament after sacking
RNZ: Fresh revelation of Cabinet rule breach leads to Stuart Nash’s sacking
Other items of interest and importance today
PARLIAMENT, ELECTION, LOBBYING
Henry Cooke: The case for an inquiry into lobbying
Kris Faafoi (Stuff): My shift from minister to lobbyist is nothing to apologise for
Pattrick Smellie (BusinessDesk): The case for an early election (paywalled)
Brigitte Morten (NBR): Labour’s policy vacuum opens door to Opposition opportunity (paywalled)
Martyn Bradbury (Daily Blog): New Zealand is falling to pieces, we need a radical rethink of our neoliberal experiment Part 1
Martyn Bradbury (Daily Blog): New Zealand is falling to pieces, we need a radical rethink of our neoliberal experiment Part 2
Thomas Coughlan (Herald): New police-style vests for Parliament Security after Parliament occupation
Manawatū Standard: Ankit Bansal selected as National’s candidate in Palmerston North
Tara Ward (Spinoff): Toni Collette was ‘totally inspired’ by Jacinda Ardern for new sci-fi series The Power
FOREIGN AFFAIRS, ASYLUM SEEKERS, SECURITY AND INTELLIGENCE
Thomas Manch (Stuff): New Zealand interested in joining second tranche of Aukus deal, defence minister says
Sarah Robson (RNZ): The Detail: Balancing our alliances
RNZ: AUKUS is ‘going against’ Pacific nuclear free treaty – Cook Islands leader
Thomas Manch (Stuff): Foreign Minister Nanaia Mahuta raised China’s position on Ukraine war with diplomats in Beijing
Glenn McConnell (Stuff): Trying to ‘look tough’ on asylum seekers, or actually help? Minister questioned over new bill
RNZ: Government announces plan to electronically tag asylum seekers who may pose risk
No Right Turn: Wood pulls a Dutton
RNZ: Government’s security arm works on addressing spread of disinformation
POSIE PARKER RALLY, DEBATE
Maria Slade (NBR): Learning to debate like grown-ups (paywalled)
Janet Wilson (Stuff): Critical thinking missing at the top in rugby and politics
Lincoln Tan (Herald): Human Rights Commission receives nearly 100 complaints on Marama Davidson and her ‘white cis men’ comment
Herald Editorial: Marama Davidson’s contrition warranted (paywalled)
Mike Hosking (Newstalk ZB): Are Marama Davidson and the Greens worth the trouble?
Stuff: Christopher Luxon wonders about a Marama Davidson apology for ‘white cis-men’ comment, PM Chris Hipkins says it’s done
Russell Palmer (RNZ): National Party leader Christopher Luxon demands Marama Davidson apologise to cis white men
Bridie Witton (Stuff): ‘This is about Marama’s lived experience’: Te Pāti Māori back Green co-leader after ‘white cis men’ comment
RNZ: Chris Hipkins says polarising debate in wake of Posie Parker visit not helpful
Sam Clements (Stuff): The bullying hypocrisy unleashed over Posie Parker
Paul Hunt (Herald): Posie Parker’s NZ visit: She’s entitled to share her views within limits (paywalled)
Glenn McConnell (Stuff): National’s Mark Mitchell wants review into why police ‘failed’ to stop Posie Parker juice attack
CLIMATE CHANGE, EXTREME WEATHER, INFRASTRUCTURE
Eloise Gibson (Stuff): Hidden heating: We assessed companies on their climate actions. It almost broke us
Brent Edwards (NBR): Climate Change Minister’s dissatisfaction with the Treasury (paywalled)
Rawiri Taonui (Stuff): How the rain falls differently upon Māori
Bernard Hickey: The climate landmine under our economy (a housing market with bits tacked on)
Rob Stock (Stuff): Managing the retreat: Is there political will for buying out flood victims, and how might it work?
Mahvash Ikram (RNZ): Stressed homeowners in West Auckland want government to step in over managed retreat
Rob Stock (Stuff): Insurance giant IAG has twice told woman it might cancel her flood cover
Rob Stock (Stuff): One in four Auckland mortgages are on homes in one-in-100-year flood zones
Tom Pullar-Strecker (Stuff): What has the cyclone cost and would a tax levy make any difference?
Tom Pullar-Strecker (Stuff): We’re on the road to… somewhere
Miriam Bell (Stuff): Housing rebuild should be a chance to do better, not a rush to patch up
Lucy Xia (RNZ): Elderly couple trapped in storm repair limbo: ‘I just can’t live like this’
LOCAL GOVERNMENT, THREE WATERS
Todd Niall (Stuff): Councillors concerned mayor Wayne Brown didn’t show at parliament for Three Waters select committee
ODT Editorial: Brown is New Zealand’s problem (paywalled)
Felix Watson (RNZ): Citizens Advice Bureau delivers petition to Auckland Council in effort to halt budget cuts
Oliver Lewis (BusinessDesk): Union warns against Ports of Auckland review (paywalled)
Georgina Campbell (Stuff): Wellington Mayor Tory Whanau looks to block the blocs
Brendon McMahon (Local Democracy Reporting): Coast chair goes in coup – Birchfield removed and deputy Haddock elected
Joanne Naish (Stuff): Allan Birchfield removed as West Coast Regional Council chairperson
Daisy Hudson (ODT): Nearly every councillor declined to meet Hannah Tamaki
Michael Fallow (Stuff): Michael Day – in praise of having plan D’s
BANKS
Bernard Hickey: RBNZ paying billions to banks in interest, plus lending $19b cheaply to banks
Sam Stubbs (Stuff): Here’s a way to give bank customers greater power and better deals
EMPLOYMENT, BUSINESS
Tom Pullar-Strecker (Stuff): Pay transparency reform survives Chris Hipkins’ policy cull, but timing uncertain
Christine Rovoi (Stuff): Coalition group demands action on ethnic, gender and disability pay gaps
Glenn McConnell (Stuff): Lobby group thanks Chris Hipkins for fixing gender pay gap – but he hasn’t
Anna Whyte (Stuff): Public service pay ‘freeze’ significantly loosened
RNZ: Pay freeze on high-earning public servants relaxed
Kim Moodie (RNZ): Survey of 540 businesses shows 90% struggling to find staff
Rob Stock (Stuff): Security guards to initiate Fair Pay Agreement negotiations
Alka Prasad (Herald): Hospitality shake up: Restaurant Association sets out wish list as it urges Government for better support
ENVIRONMENT
Anna Whyte (Stuff): What changes are coming to tackle New Zealand’s waste problem?
Anna Whyte (Stuff): NZ recycling, food waste to get an overhaul
Jamie Morton (Herald): NZ’s littering headache has got worse – national audit
Tatiana Gibbs (Stuff): Aotearoa’s green image is ‘fiction’: Audit finds amount of litter has more than doubled
HEALTH
Phil Pennington (RNZ): Just 3% of $500m ‘drawn down’ to improve or build mental health hospital facilities
ODT: A plan to cull 1000sq m of workspace from the new Dunedin hospital poses a “significant clinical risk” (paywalled)
ODT: Councillor unable to get questions on budget cuts answered (paywalled)
Ian Powell (BusinessDesk): How to fix the NZ laboratory fiasco (paywalled)
RNZ: New surgery service at Hutt Hospital tipped to improve patient wait times
Niva Chittock (RNZ): Christchurch Hospital slashes carbon emissions by more than 50%
COVID
Giles Dexter (RNZ): Greens call for universal Covid vaccine availabilty after nearly 2500 children under 5 hospitalised
Rowan Quinn (RNZ): Covid-19: 1.4 million doses of vaccine to be destroyed by the end of the week
Kate Newton (Stuff): The ‘Kraken’ sub-variant is now New Zealand’s dominant Covid strain — here’s why that’s not as scary as it sounds
RNZ: MBIE told to apologise to seafarers who struggled to get MIQ spot
TRANSPORT
Giles Dexter (RNZ): Zero speed camera warning signs set up since policy announced in 2019
Piers Fuller (Stuff): Ageing lower North Island rail needs multimillion-dollar cash boost fast-tracked
Oliver Lewis (BusinessDesk): The great divide: Auckland’s harbour tunnel (paywalled)
CO-GOVERNANCE
Damien Venuto (Herald): The Front Page: Could the anti-co-governance roadshow spark significant protest movement?
Te Aniwa Hurihanganui (1News): Anti co-governance tour organiser determined to press ahead
Finn Blackwell (RNZ): Protest against anti-cogovernance rally goes ahead in Auckland
RNZ: Auckland Council cancels co-governance meeting bookings citing safety reasons
EDUCATION
John Gerritsen (RNZ): Fears principals will quit or refuse to implement long programme of changes
Amy Wiggins (Rotorua Daily Post): Making the Grade: How teaching maths, reading needs ‘science of learning’ (paywalled)
John Gerritsen (RNZ): Drop in school-leavers receiving UE, high employment, sees big fall in domestic enrolments
Brent Edwards (NBR): A-G worried vocational education reforms are not further ahead (paywalled)
Rob Stock (Stuff): By the Numbers: Overdue overseas student debt passes milestone $2 billion mark
TREATY SETTLEMENTS, BREACHES
Craig Ashworth (RNZ): Taranaki Maunga agreement to be initialled on Friday
Kelvin McDonald (Whaaata Māori): Ngāti Kahungunu receive ‘long awaited’ Crown apology in Wairarapa
ABUSE IN CARE
Jimmy Ellingham (RNZ): Suggestions of delay in redress an insult, say survivors of abuse in state care
RNZ: Catholic Church abuse survivors group says Pope ignored their letter
Andrew McRae (RNZ): Complaints not upheld, redress process kept secret, says church-based abuse advocate
DOMESTIC VIOLENCE
Carrie Leonetti (Newsroom): A crisis we just can’t seem to fix
Krystal Gibbens (RNZ): Government must invest in rehabilitating family violence offenders, national network says
HOUSING
Rayssa Almeida (RNZ): Blockhouse Bay complex: Kāinga Ora plans social housing on land donated for senior citizens’ homes
Tess Brunton (RNZ): Homeless in paradise: Queenstown residents living in cars, tents
RNZ: Queenstown council looks to govt for answers as pressure grows for housing action
Geraden Cann (Stuff): What happens when housing’s ‘wealth effect’ dries up?
PRIMARY AND EXTRACTIVE INDUSTRIES
Guy Trafford (Interest): Food or trees? the land use debate
Jonathan Mitchell (NBR): Offshore petroleum permit approved after court-ordered review (paywalled)
OTHER
Sela Jane Hopgood (Spinoff): The four must-haves to reduce Pacific child poverty in Aotearoa
Glenn McConnell (Stuff): Date set for IRD to stop pocketing child payments destined for parents on benefits
Anan Zaki (RNZ): New Zealand’s critical infrastructure vulnerable to hackers – Cyber security expert
Rob Stock (Stuff): Complaints made to Privacy Commission as Latitude admits 1.037 million New Zealand driver’s licence details stolen
Thomas Manch (Stuff): Chris Hipkins ‘threw police under the bus’ over fog cannon scheme, National says
Robin Kearns (Newsroom): We must embrace Māori renaming
