Electoral Finance Act
Encyclopedia
The Electoral Finance Act 2007 was a controversial act in New Zealand
. The Electoral Finance Bill was introduced by the Fifth Labour Government
partly in response to the 2005 New Zealand election funding controversy
, in particular "third-party" campaigns.
The proponents of the bill generally held that it was required to prevent wealthy private parties from "buying elections" anonymously via advertising campaigns or other financially costly lobbying, while the opponents considered it a serious restriction of civil liberties, and further considered that spending private money on political campaigning was a democratic right.
The Bill as introduced required that unregistered third parties file statutory declarations before publishing election advertisements.
The Bill originally limited the spending of registered third parties on political advertising to $60,000, but this was later increased to $120,000 by the Select Committee.
The regulation of third parties also extends to their finances. The Act requires that third parties disclose all donations they receive over $5000. Anonymous donations that third parties receive over this level must be given to the State.
, a group that advocates the reform of election finance law in New Zealand, opposed parts of the Bill, particularly the failure of the Bill to ban secret donations to political parties, given the strong financial disclosure requirements placed on third parties.
The broad definition of "election advertisement" came in for particular criticism. Critics, including the New Zealand Law Society
, Catholic
charity Caritas
, and the Royal New Zealand Forest and Bird Society argued the definition will catch not just electoral speech, but almost all political speech - including things like placards at protest marches.
The parliamentary opposition, the National Party
, also opposed the Bill. Political commentator Matthew Hooton argued that the Bill should not proceed, and that the Minister of Justice
was a "danger to democracy
". On 6 October 2007 the Free Speech Coalition was formed by prominent right-wing bloggers David Farrar
and Cameron Slater
, and Bernard Darnton
, leader of the Libertarianz
Party, to oppose the Bill. The New Zealand Anti-Vivisection Society and NORML New Zealand
, and the Direct Democracy Party of New Zealand
also opposed the Bill.
Criticism has also been made over the process that led to the Bill's introduction, which involved discussions only with the Labour Government's supporting parties and not the Opposition.
Political commentator Chris Trotter
had harsh criticism of the detractors of the Act in several opinion pieces in The Dominion Post
. On 17 August he wrote
, drew over 2,000 protestors. A second Auckland protest, on 1 December 2007, drew a crowd of around 5,000. Smaller protests were held in Wellington and Christchurch.
Mark Burton
, who said at its introduction "The package of reforms introduced to Parliament will help promote participation in parliamentary democracy, and aims to clean up New Zealand's electoral system and protect it from abuse."
must advise Parliament at the introduction of a bill if that bill is inconsistent with the New Zealand Bill of Rights Act. The Crown Law Office
, which undertook the review, concluded that the Bill was consistent with the Bill of Rights. The National Business Review
described Crown Law's opinion as "...one of the worst, most politically expedient calls on New Zealand human rights legislation in memory."
, Greens
, NZ First
, United Future and Progressive
voting in favour, and the National Party
, Māori Party
and independents Gordon Copeland
and Taito Phillip Field
voting against. ACT did not vote. The legislation was sent to the Justice and Electoral Committee for consideration, with agreement from MPs to extend the membership of the committee for consideration of the Bill to include members from almost all Parliamentary parties. The Committee's report on the Bill was due by January 25, 2008.
reported on 31 August that the Government had indicated it might write to the Committee indicating that it intended to make unspecified changes to the parts of the legislation dealing with third parties. This would have prevented the Committee from hearing criticism of the existing provisions and allow the Government to introduce changes during the Committee of the Whole House without the public being able to make submissions on the new provisions. Then Prime Minister
Helen Clark
denied this.
Investigative journalist Nicky Hager
, author of The Hollow Men
, submitted in favour of the need for changes to New Zealand electoral law. The New Zealand Law Society
, and the New Zealand Human Rights Commission
submitted against the Bill.
The Select Committee reported the Bill to the House of Representatives
on 18 November 2007, and recommended that the Bill proceed.
Annette King
, who became Minister of Justice following a Cabinet reshuffle on 31 October 2007,
announced a number of changes to the Bill.
These changes included:
signed the Act into law on 19 December 2007.
The Electoral Finance Act was repealed on 17 February 2009 by a vote in Parliament of 112 to 9 . The Green Party was the only Party opposing the repeal , saying it should stay in force until a replacement Bill was prepared .
Justice Minister Simon Power said during debate on the repeal bill that all parties in Parliament had agreed to take part in consultations to draft replacement electoral law. Until that happens, the 1993 Electoral Act will be in force with clauses of the EFA dealing with donation disclosure inserted.
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
. The Electoral Finance Bill was introduced by the Fifth Labour Government
Fifth Labour Government of New Zealand
The Fifth Labour Government of New Zealand was the government of New Zealand between 10 December 1999 and 19 November 2008.-Overview:The fourth National government, in power since 1990, was widely unpopular by 1999, with much of the public antagonised by a series of free-market economic reforms,...
partly in response to the 2005 New Zealand election funding controversy
2005 New Zealand election funding controversy
The 2005 New Zealand election funding controversy occurred in the aftermath of the 2005 New Zealand general election.Under New Zealand's political system, parties may only spend, during the 90 days before the election, up to a certain amount on campaigning . They must raise that money from their...
, in particular "third-party" campaigns.
The proponents of the bill generally held that it was required to prevent wealthy private parties from "buying elections" anonymously via advertising campaigns or other financially costly lobbying, while the opponents considered it a serious restriction of civil liberties, and further considered that spending private money on political campaigning was a democratic right.
Effect
The Act amended numerous areas of New Zealand electoral law, but was repealed on 17 February 2009. Principally and most controversially it regulated "third party" election campaignsThird party campaigns
The Act made it illegal for anyone to spend more than NZ$12,000 criticising or supporting a political party or taking a position on any political matter, or more than NZ$1,000 criticising or supporting an individual member of parliament, without first registering with a state agency, the Electoral Commission.The Bill as introduced required that unregistered third parties file statutory declarations before publishing election advertisements.
The Bill originally limited the spending of registered third parties on political advertising to $60,000, but this was later increased to $120,000 by the Select Committee.
The regulation of third parties also extends to their finances. The Act requires that third parties disclose all donations they receive over $5000. Anonymous donations that third parties receive over this level must be given to the State.
Regulated period
The Act extends the "regulated period" for election campaigning from the previous 90-day period to the period starting on January 1 of election year - from three months to around ten, depending on the timing of the election. During this period electoral advertising by candidates, political parties and third parties must follow election rules, and spending limits apply.Controversy
The Coalition for Open GovernmentCoalition for Open Government
The Coalition for Open Government was a political pressure group formed in the late 1970s to promote open government in New Zealand. The Coalition disbanded in the mid 1980s, but re-formed in April 2007, in response to Government plans to rewrite the election finance laws.-History:The group formed...
, a group that advocates the reform of election finance law in New Zealand, opposed parts of the Bill, particularly the failure of the Bill to ban secret donations to political parties, given the strong financial disclosure requirements placed on third parties.
The broad definition of "election advertisement" came in for particular criticism. Critics, including the New Zealand Law Society
New Zealand Law Society
The New Zealand Law Society is the parent body for barristers and solicitors in New Zealand. It was established in 1869, and regulates all lawyers practising in New Zealand...
, Catholic
Catholicism
Catholicism is a broad term for the body of the Catholic faith, its theologies and doctrines, its liturgical, ethical, spiritual, and behavioral characteristics, as well as a religious people as a whole....
charity Caritas
Caritas (charity)
Caritas Internationalis is a confederate of 164 Roman Catholic relief, development and social service organisations operating in over 200 countries and territories worldwide....
, and the Royal New Zealand Forest and Bird Society argued the definition will catch not just electoral speech, but almost all political speech - including things like placards at protest marches.
The parliamentary opposition, the National Party
New Zealand National Party
The New Zealand National Party is the largest party in the New Zealand House of Representatives and in November 2008 formed a minority government with support from three minor parties.-Policies:...
, also opposed the Bill. Political commentator Matthew Hooton argued that the Bill should not proceed, and that the Minister of Justice
Minister of Justice (New Zealand)
The Minister of Justice is a minister in the government of New Zealand. The minister has responsibility for the formulation of justice policy and for the administration of law courts....
was a "danger to democracy
Democracy
Democracy is generally defined as a form of government in which all adult citizens have an equal say in the decisions that affect their lives. Ideally, this includes equal participation in the proposal, development and passage of legislation into law...
". On 6 October 2007 the Free Speech Coalition was formed by prominent right-wing bloggers David Farrar
David Farrar (New Zealand)
David Peter Farrar is a New Zealand political activist, blogger, and pollster. He is a frequent commentator in the media on Internet issues. Farrar has held many roles within the New Zealand National Party and has worked in Parliament for four National Party leaders.His blog, Kiwiblog, is the most...
and Cameron Slater
Cameron Slater
Cameron Slater is a controversial New Zealand based Internet blogger who is best known for publishing the Whale Oil Beef Hooked blog. Slater is the son of former National Party President John Slater....
, and Bernard Darnton
Bernard Darnton
Bernard Darnton is a former leader of Libertarianz, a libertarian political party in New Zealand.-Involvement in the Libertarianz party:...
, leader of the Libertarianz
Libertarianz
Libertarianz is a political party in New Zealand that advocates libertarianism, favouring self-government and limiting the power of the government over the individual. Ayn Rand's philosophy of Objectivism is a major influence on the party...
Party, to oppose the Bill. The New Zealand Anti-Vivisection Society and NORML New Zealand
NORML New Zealand
NORML New Zealand is a cannabis law reform organisation in New Zealand. It is a National Chapter of the National Organization for the Reform of Marijuana Laws...
, and the Direct Democracy Party of New Zealand
Direct Democracy Party of New Zealand
The Direct Democracy Party of New Zealand was a political party in New Zealand that promoted greater participation by the people in the decision-making of government. The party's leader was Kelvyn Alp....
also opposed the Bill.
Criticism has also been made over the process that led to the Bill's introduction, which involved discussions only with the Labour Government's supporting parties and not the Opposition.
Political commentator Chris Trotter
Chris Trotter
Chris Trotter is a left-leaning political commentator in New Zealand. He is the editor of the occasional Political Review magazine, and is a regular speaker, orator and singer at left-wing, union and socialist events....
had harsh criticism of the detractors of the Act in several opinion pieces in The Dominion Post
The Dominion Post (Wellington)
The Dominion Post is a metropolitan broadsheet newspaper published in Wellington, New Zealand, owned by the Australian Fairfax group, owners of The Age, Melbourne, and The Sydney Morning Herald.- Foundation :...
. On 17 August he wrote
- "let's just take a deep breath and examine the rules that govern election spending in Britain and Canada (countries which, the last time I looked, were still counted among the world's leading democracies). In Britain, "third party" expenditure is capped at 5 per cent of the expenditure authorised for political parties in the 12 months prior to polling day.
- In Canada the figure is 1 per cent, but applies only to the period of official campaigning. (Mr Burton is proposing a cap of 2.5 per cent or $60,000 for 10 months.) In both Britain and Canada, third parties are required to register with the official electoral regulators; both countries also restrict the contributions of foreign donors to third parties; and both require the identity of third party donors to be made public. That is how modern democracies conduct themselves.
- But, in New Zealand, it is still acceptable (at least to the National Party) for those with the most money to have the most say."
Protests
On 17 November 2007 a protest in Auckland against the Bill, organised by John BoscawenJohn Boscawen
John Boscawen is an ACT New Zealand member of the New Zealand House of Representatives and as of May 2011, ACT's Parliamentary Leader and former Minister of Consumer Affairs of New Zealand. He came to parliament in the 2008 general election as a list MP, having been ranked fourth...
, drew over 2,000 protestors. A second Auckland protest, on 1 December 2007, drew a crowd of around 5,000. Smaller protests were held in Wellington and Christchurch.
Introduction
The Bill was introduced on 23 July 2007 by Minister of JusticeMinister of Justice (New Zealand)
The Minister of Justice is a minister in the government of New Zealand. The minister has responsibility for the formulation of justice policy and for the administration of law courts....
Mark Burton
Mark Burton
Richard Mark Burton is a New Zealand politician. He is a member of the Labour Party. He served as Minister of Defence; Minister of Justice; Minister of Local Government; Minister in Charge of Treaty of Waitangi Negotiations; Deputy Leader of the House; and the Minister Responsible for the Law...
, who said at its introduction "The package of reforms introduced to Parliament will help promote participation in parliamentary democracy, and aims to clean up New Zealand's electoral system and protect it from abuse."
Bill of Rights
Under section 7 of the New Zealand Bill of Rights Act 1990, the Attorney-GeneralAttorney-General (New Zealand)
The Attorney-General is a political office in New Zealand. It is simultaneously a ministerial position and an administrative office, and has responsibility for supervising New Zealand law and advising the government on legal matters...
must advise Parliament at the introduction of a bill if that bill is inconsistent with the New Zealand Bill of Rights Act. The Crown Law Office
Crown Law Office (New Zealand)
The Crown Law Office of New Zealand offers legal advice to the New Zealand Government. The Solicitor-General of New Zealand, David Collins, is the organisation's chief executive. Collins has held this position since August 2006. The position itself was established in 1875....
, which undertook the review, concluded that the Bill was consistent with the Bill of Rights. The National Business Review
National Business Review
The National Business Review is a weekly New Zealand newspaper aimed at the business sector. The paper is owned by Barry Colman who also publishes the Grocers Review and several other small trade publications....
described Crown Law's opinion as "...one of the worst, most politically expedient calls on New Zealand human rights legislation in memory."
First reading
The Bill passed its first reading on 27 July by 65 votes to 54, with the LabourNew Zealand Labour Party
The New Zealand Labour Party is a New Zealand political party. It describes itself as centre-left and socially progressive and has been one of the two primary parties of New Zealand politics since 1935....
, Greens
Green Party of Aotearoa New Zealand
The Green Party of Aotearoa New Zealand is a political party that has seats in the New Zealand parliament. It focuses firstly on environmentalism, arguing that all other aspects of humanity will cease to be of concern if there is no environment to sustain it...
, NZ First
New Zealand First
New Zealand First is a political party in New Zealand that was founded in 1993, following party founder Winston Peters' resignation from the National Party in 1992...
, United Future and Progressive
New Zealand Progressive Party
Jim Anderton's Progressive Party , is a New Zealand political party generally somewhat to the left of its ally, the Labour Party....
voting in favour, and the National Party
New Zealand National Party
The New Zealand National Party is the largest party in the New Zealand House of Representatives and in November 2008 formed a minority government with support from three minor parties.-Policies:...
, Māori Party
Maori Party
The Māori Party, a political party in New Zealand, was formed on 7 July 2004. The Party is guided by eight constitutional "kaupapa", or Party objectives. Tariana Turia formed the Māori Party after resigning from the Labour Party where she had been a Cabinet Minister in the Fifth Labour-led...
and independents Gordon Copeland
Gordon Copeland
Gordon Copeland is a New Zealand politician who was a Member of Parliament from 2002 to 2008. He was a list MP for the United Future New Zealand party from 2002 until he resigned from the party in 2007. He is now Party President of The Kiwi Party, which he co-founded with another former United...
and Taito Phillip Field
Taito Phillip Field
Taito Phillip Hans Field is a Samoan New Zealand politician. He was a Member of Parliament for south Auckland electorates from 1993 to 2008. Field was a minister outside Cabinet in a Labour-led government from 2003 to 2005. Following charges of bribery and perverting the course of justice, he was...
voting against. ACT did not vote. The legislation was sent to the Justice and Electoral Committee for consideration, with agreement from MPs to extend the membership of the committee for consideration of the Bill to include members from almost all Parliamentary parties. The Committee's report on the Bill was due by January 25, 2008.
Select Committee
Public submissions on the Bill closed on 7 September 2007. Radio New ZealandRadio New Zealand
Radio New Zealand is a New Zealand public service radio broadcaster and Crown entity formed by the Radio New Zealand Act 1995. It operates news, current affairs and arts network Radio New Zealand National and classical music and jazz network Radio New Zealand Concert with full government funding...
reported on 31 August that the Government had indicated it might write to the Committee indicating that it intended to make unspecified changes to the parts of the legislation dealing with third parties. This would have prevented the Committee from hearing criticism of the existing provisions and allow the Government to introduce changes during the Committee of the Whole House without the public being able to make submissions on the new provisions. Then Prime Minister
Prime minister
A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...
Helen Clark
Helen Clark
Helen Elizabeth Clark, ONZ is a New Zealand political figure who was the 37th Prime Minister of New Zealand for three consecutive terms from 1999 to 2008...
denied this.
Investigative journalist Nicky Hager
Nicky Hager
Nicky Hager is an author and investigative journalist born in Levin, New Zealand and now resides in Wellington. He generally writes about issues involving intelligence networks, environmental issues and politics. He has degrees in physics and philosophy...
, author of The Hollow Men
The Hollow Men (book)
The Hollow Men is a 2006 book written by Nicky Hager about the election strategies used by the New Zealand National Party during New Zealand's 2005 parliamentary election...
, submitted in favour of the need for changes to New Zealand electoral law. The New Zealand Law Society
New Zealand Law Society
The New Zealand Law Society is the parent body for barristers and solicitors in New Zealand. It was established in 1869, and regulates all lawyers practising in New Zealand...
, and the New Zealand Human Rights Commission
New Zealand Human Rights Commission
The Human Rights Commission is the national human rights institution in New Zealand. It is funded through the Ministry of Justice, but operates independently of the New Zealand Government...
submitted against the Bill.
The Select Committee reported the Bill to the House of Representatives
New Zealand House of Representatives
The New Zealand House of Representatives is the sole chamber of the legislature of New Zealand. The House and the Queen of New Zealand form the New Zealand Parliament....
on 18 November 2007, and recommended that the Bill proceed.
Annette King
Annette King
Annette Faye King is a New Zealand politician. She is the current Deputy Leader of the Opposition in the New Zealand. She was a Cabinet Minister in the Fifth Labour Government of New Zealand.-Early life:...
, who became Minister of Justice following a Cabinet reshuffle on 31 October 2007,
announced a number of changes to the Bill.
These changes included:
- Increasing the cap on total third party spending from $60,000 to $120,000;
- Increasing the cap on election advertising before they have to register under the new law from $5,000 to $12,000;
- Changing the definition of election advertising;
- Increasing the corruption penalties to $100,000 fine.
Second Reading
The Bill was put to a second reading vote on 22 November 2007. It passed by 65 votes to 54, with Labour, New Zealand First, the Greens, United Future, and the Progressive Party supporting it. National, ACT, the Māori Party, and independents Gordon Copeland and Taito Phillip Field voted against it, the Māori party voting two of its four votes in favour.Third reading
The Bill passed its third reading on 18 December 2007 by 63 votes to 57, with the National Party, the Maori Party, ACT, United Future and independent MP Taito Phillip Field voting against and Labour, the Greens, New Zealand First and Progressive voting for. Independent MP Gordon Copeland did not vote.Royal Assent & Subsequent Repeal
The Governor-GeneralGovernor-General of New Zealand
The Governor-General of New Zealand is the representative of the monarch of New Zealand . The Governor-General acts as the Queen's vice-regal representative in New Zealand and is often viewed as the de facto head of state....
signed the Act into law on 19 December 2007.
The Electoral Finance Act was repealed on 17 February 2009 by a vote in Parliament of 112 to 9 . The Green Party was the only Party opposing the repeal , saying it should stay in force until a replacement Bill was prepared .
Justice Minister Simon Power said during debate on the repeal bill that all parties in Parliament had agreed to take part in consultations to draft replacement electoral law. Until that happens, the 1993 Electoral Act will be in force with clauses of the EFA dealing with donation disclosure inserted.
See also
- 2005 New Zealand election funding controversy2005 New Zealand election funding controversyThe 2005 New Zealand election funding controversy occurred in the aftermath of the 2005 New Zealand general election.Under New Zealand's political system, parties may only spend, during the 90 days before the election, up to a certain amount on campaigning . They must raise that money from their...
- Campaign finance reformCampaign finance reformCampaign finance reform is the common term for the political effort in the United States to change the involvement of money in politics, primarily in political campaigns....
- Constitution of New Zealand
- Electoral system of New ZealandElectoral system of New ZealandIn 1994 New Zealand officially adopted mixed member proportional representation as its electoral system for the House of Representatives after many years of first-past-the-post voting. The first MMP election was held in 1996....