Small party power inside and outside Government: the policy influence differential in New Zealand from 1999-2002

Abstract

Under proportional representation, New Zealand has frequently been governed by minority governments backed by a support party on matters of confidence and supply. This study seeks to analyze the "policy influence differential," or the influence a party in government may exert relative to the influence of a support party, in the current New Zealand context. While individual personalities clearly influence the performance of minority coalition governments, Parliamentary institutions and informal political norms also shape New Zealand's policy influence differential. The precise extent of this differential is difficult to quantify precisely, but political parties attempt to weigh anticipated policy influence against electoral costs when deciding whether or not to enter government. At the same time, events preceding this decision may distort consideration of these costs and benefits. To examine these propositions, New Zealand's institutional context is first discussed. Utilizing this framework, the study then compares Alliance and Green influence in the 1999-2002 Labour-Alliance government, and details the political processes and policy outcomes of four major issues during this period. This analysis leads to the conclusion that the New Zealand policy influence differential is still substantial under proportional representation due to remaining first-past-the-post institutions and political culture, while the electoral costs of government have been overstated.