This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 WELLINGTON 000821 
 
SIPDIS 
 
STATE FOR D (FRITZ), EAP/ANP, EAP/EP, EAP/RSP, INR/EAP 
NSC FOR VICTOR CHA AND MICHAEL GREEN 
SECDEF FOR OSD/ISA LIZ PHU 
PACOM FOR J2/J233/J5/SJFHQ 
 
E.O. 12958: N/A 
TAGS: PGOV PREL NZ
SUBJECT: EXPLAINING NEW ZEALAND'S PARLIAMENTARY GOVERNANCE 
 
REF: A. WELLINGTON 816 
     ¶B. WELLINGTON 806 
 
¶1. New Zealand,s new government, announced October 17, was 
formed through an awkward arrangement that includes a 
coalition between the leading Labour Party and the 
Progressive Party and the &confidence and supply8 support 
of New Zealand First and United Future.  In addition, the 
Green Party has agreed to abstain on votes of confidence and 
supply (ref B).  The government also took the unprecedented 
step of naming a foreign minister ) New Zealand First,s 
leader ) who is to serve outside of Cabinet (ref A).  These 
arrangements raise questions regarding parliamentary 
governance, several of which are answered below. 
 
¶2. What is "confidence and supply"? 
 
It is, essentially, a commitment to a &yes8 response on a 
parliamentary vote of confidence in the government.  The term 
&supply8 applies to votes on budget measures that provide 
the government its supply of money. 
 
¶3. How can the government lose confidence and supply? 
 
If a party either in the governing coalition or providing 
confidence and supply withdraws its support from the 
government, the government could lose the ability to pass 
legislation.  In such circumstances, the government could 
seek a parliamentary vote of confidence.  However, a 
government would not seek such a vote if it expected defeat. 
Instead, it could try to form a new coalition or call a 
general election.  The opposition also could make a motion of 
no-confidence in the government.  In 1996, Prime Minister 
Jenny Shipley called for a confidence vote in Parliament 
after New Zealand First opted out of the coalition government 
with the National Party.  National won the vote, 62-58, and 
continued to govern. 
 
¶3. Can the government also lose confidence and supply via 
legislation? 
 
Yes.  If the government fails to pass a piece of legislation 
that is sufficiently broad-ranging or weighty enough to 
either affect its performance or hinder its ability to 
govern, then a motion of no-confidence can be moved and voted 
on by Parliament. This motion takes the form of an amendment 
to the original troublesome legislation. Any party in 
Parliament can move to attach such an amendment. The budget 
is one sufficiently broad-ranging item whose non-passage 
could precipitate a government,s fall. It is possible -- but 
unlikely -- to have a situation like the one recently in 
Japan, where the rejection of far-reaching bills by the Upper 
House in August 2005 triggered a general election. 
 
Two other principal litmus tests of a government's 
"confidence and supply" are the non-legislative procedures of 
"Address and Reply" (a broad-ranging policy statement at the 
opening of a term of Parliament) and "the Prime Minister's 
Statement" (given annually on the first sitting day of 
Parliament).  Though neither the "Address and Reply" nor the 
"Prime Minister's Statement" are legislative, they can be 
followed by a motion of no-confidence. 
 
¶5. What is required for a motion to carry? 
 
A motion must secure a majority of votes to carry.  Members 
who do not vote or who abstain are not considered in 
determining the majority.  As part of the support agreement 
with Labour, the Green Party has agreed to abstain on votes 
of confidence.  Because the Greens hold six seats in the 
121-seat Parliament, Labour needs to secure a maximum of 58 
votes to survive a test of confidence. 
 
¶6. Does Parliament require a quorum to meet? 
 
Yes.  At least one Minister and 20 members must be present 
for the House to meet, according to the current "Standing 
Orders of Parliament."  However, there are no requirements 
regarding the attendance of any particular party. 
 
¶7. Can a member vote by proxy? 
 
Yes, but with various restrictions, including the type of 
vote (party or personal) and the size of the party.  In any 
event, no party may cast more than 25 percent of its party 
vote by proxy, rounded up.  In the current Parliament, Labour 
must have 37 members present to cast a party vote on behalf 
of its full 50 seats, and National must have 36 members to 
vote on behalf of its 48 seats. 
 
¶8. What happens if the government loses confidence and supply? 
 
Parliamentary convention would call for the government to 
resign or call for a new general election, unless it is able 
to form an alternative governing majority. 
 
If the government did not take action, the Governor General, 
as the Head of State, could choose from several options: 
 
-- She could confirm whether the Prime Minister can produce 
enough votes from elsewhere to restore the government's 
parliamentary majority. 
-- She could ask whether the Leader of the Opposition, for 
example the National Party's Don Brash, can secure enough 
votes to form a parliamentary majority and thus an alternate 
government. 
 
-- She could dissolve Parliament with the aim of having 
another general election. 
 
¶8. What is "Cabinet"? 
 
This a political arrangement used by government to establish 
and coordinate government policy.  Though Cabinet has no 
constitutional or legal authority, by convention it serves as 
the final arbiter of government policy.  Nonetheless, the 
legal authority to govern is vested in the Ministers of the 
Crown, who are appointed by the Governor-General with 
consideration for the Prime Minister's portfolio 
recommendations. 
 
¶8. What does it mean for a Minister to be "outside of 
Cabinet"? 
 
Ministers, legal authority is identical whether they sit 
inside or outside of Cabinet.  It is common in New Zealand to 
have several ministers and associate ministers who sit 
outside of government.  However, the political reality is 
that ministers who sit outside of Cabinet generally have less 
influence.  Moreover, they usually are junior ministers or 
are ministers with portfolios of lesser priority.  The 
current situation of Foreign Minister Winston Peters sitting 
outside Cabinet is unprecedented and potentially awkward, but 
it is not illegal. 
 
¶9. What is "collective responsibility"? 
 
Collective responsibility is a convention of government 
whereby members in government are expected to publicly 
support government policy, whether or not they agree with the 
policy. Under the current governing arrangement, Labour has 
agreed to revise the Cabinet manual to limit the "collective 
responsibility" of two ministers who sit outside Cabinet -- 
Foreign Minister Peters and Revenue Minister Peter Dunne, 
leader of United Future.  This is a governing innovation that 
allows Peters and Dunne the ability to criticize aspects of 
government policy that fall outside of their portfolios. 
Burnett