VZCZCXRO2692
RR RUEHNZ
DE RUEHWL #0042 0170429
ZNR UUUUU ZZH
R 170429Z JAN 06
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC 2277
INFO RUEHNZ/AMCONSUL AUCKLAND 0600

UNCLAS WELLINGTON 000042 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EAP/ANP - DAN RICCI 
 
E.O. 12985:  N/A 
TAGS: PGOV NZ
SUBJECT:  ACT PARTY'S DECLINE COULD SPELL NEAR-TERM END OF 
CENTER-RIGHT POLITICS IN NEW ZEALAND 
 
 
¶1.  (SBU) The expected resignation of the long-serving 
president of the ACT party could knock the center right 
out of New Zealand politics, at least over the short term. 
The president's recent statements suggesting her party 
should become a think tank instead illustrates the depths 
to which ACT has sunk since losing all but two of its MPs 
in September's general elections. 
 
¶2.  (SBU) The media is reporting that ACT's president, 
Catherine Judd, is set to resign.  Party Leader Rodney 
Hide has refused to confirm or deny the resignation, 
telling reporters they should ask Judd herself.  The 
controversy is yet another jolt to the already wounded 
party, which was dealt a near mortal blow at the 2005 
general election, losing all but two of its nine MPs. 
Judd's likely resignation also makes clear the tension 
within the party, which existed well before the election. 
Members have been divided over whether the party should 
pursue Hide's populist, scandal-busting approach, or keep 
faith with the more principled ideological free-market 
liberal approach on which the party was originally 
founded.  Judd favors the latter, and her impending 
departure is likely to raise more questions over Hide's 
leadership. 
 
¶3.  (SBU) In the months following the election, Judd has 
become more willing to openly brood about ACT's future. 
She has criticized what she regarded as Hide's unwieldy 
campaign strategy, which she said was focused solely on 
acquiring his own seat.  Incredibly, Judd has floated the 
idea that the party should reorganize itself into a think 
tank in order to better achieve its principled objectives, 
rather than trying to work within the parliamentary 
system.  Judd has enough sway and influence to drive a 
wedge between those who support the party's parliamentary 
ambitions and those who might follow her recommendations 
in order to promote center-right ideas in New Zealand 
society and cultivate a new generation of candidates and 
followers. 
 
¶4.  (SBU) If Judd's resignation precipitates a division of 
energies, support and resources for ACT, then center-right 
politics in New Zealand will be dealt a severe blow.  This 
loss could be magnified if, as predicted, National Party 
leader Don Brash is replaced with someone who is more 
disposed to move his party to the center. 
 
Burnett