Archive for ‘Public services’ Category
I do not understand what the fuss is all about when it comes to John Key and the revelations in the so-called “Panama Papers.” So what if he and other Kiwi high rollers shield their incomes and assets from the IRD in assorted trusts, funds, investments and even shell companies? Isn’t it an axiom of capitalism that, as Donald Trump has openly stated, you try to avoid as much tax payment as possible? Forget all this nonsense about “paying one’s fair share of taxes.” Only rubes and idealists do that. Everyone else tries to minimise their tax exposure and the rich pricks just do so on a grander and more elaborate scale.
I say this because the entire NZ economy is riddled with tax avoidance. One of the things that struck me after I moved to NZ is the amount of cash transactions that are done with the explicit intention of avoiding tax. Almost every single tradesperson I have dealt with in the course of my time here has proposed a cash transaction that avoids GST, but more importantly, avoids traceable electronic or paper (cheque) financial transfers. And the offers of non-GST cash transactions are done without shame or concern; it is just part of doing business for many people and everyone knows it and acts accordingly based on their own circumstances.
If what I have seen in the small business trade and service sector is any indication, then it is reasonable to expect that such attitudes percolate upwards into larger corporate structures and repositories of wealth. Since these are too big to hide in a cash-only parallel market, the next best thing is to engage in tax evasion and income-hiding schemes whose complexity is based upon the ability of the tax authorities to uncover them. The move to off-shore trusts and the like is simply a matter of keeping one or two steps ahead of the law and three steps ahead of enforcement mechanisms. If those in government choose to structure the financial regulatory regime in such a way that it keeps the holders of wealth five to ten steps ahead of the tax authorities then, well, you get what you vote for.
The difference between the approach of NZ high and low rollers when it comes to tax evasion is in scale, not kind.
This is one reason why I believe that the Transparency International rankings that have NZ listed among the top three least corrupt nations on earth are rubbish. Add to that the nepotism, cronyism, shoulder-tapping, sinecure swapping and insider trading of everything from personal and professional favours to board directorships to stock shares, and the picture of NZ is far less rosy and far more, let us say, “pragmatic.” I am particularly critical of the TI indexes because not only are they mostly based on reputational analysis (mostly offered by those who stand to gain from gaming the system), but because I participated in a TI survey of NZ’s intelligence and defense forces and saw my scores (and those of some others) pretty much discarded in favour of higher scores offered by insiders that led to an overall TI assessment that NZ has the highest standard of professional integrity amongst the defense and intelligence services in the Asia-Pacific.
Even so, I am one of those who are a bit idealistic when it comes to taxes. I understand the concept of public goods and therefore comprehend the rationale behind taxation. In NZ I pay tax more readily at a higher rate than I did in the US because, among other things, I am not paying to support a huge war machine that in turn serves the interests of a taxpayer subsidised military-industrial complex. As a small business owner I feel the burden of taxation more heavily and immediately than the corporate moguls that run the nation’s largest firms and whose bottom lines rest on minimising two things: their tax liabilities and their labour force wage bills. Yet I try to believe that I am contributing my small bit towards maintaining a high standard of public education, health and welfare that will lead to future generations of productive and happy citizens (although my experience with NZ academia suggests seriously diminishing returns in that sector, and I have serious doubts that overall heath, education and welfare outcomes are on the rise rather than in decline as a result of nearly a decade of National government public policies).
In spite of these misgivings, I remain a residual idealist and want to believe that my contributions, when taken collectively with those of others, matter for the present and future well-being of NZ. But I do not expect others to share the same hopelessly naive view of how the systems works, and I therefore do not begrudge them trying to dodge the taxman as much as possible. Because in a country where market-reifying ideologies reign supreme in virtually every facet of life, only a fool like me would think that paying taxes is anything but state-imposed theft levied on the productive in order to buy the acquiescence of the parasitical. I know this to be true because National, ACT and certain elements in Labour tell me so, and who am I to argue with those who dominate our economic, political and social narrative?
Posted on 10:30, November 25th, 2014 by Pablo
Sometimes one has to speak bluntly but honestly about unethical behaviour within the NZ intelligence community. The revelations about the way in which an OIA request from a notorious right wing blogger was handled by the then Director of Security and Intelligence and the office of the Prime Minister in 2011 affords one such opportunity to do so.
Short of taking monetary or personal favours, this is official malfeasance of the first order and is corrosive of the professional integrity of the intelligence community. Shame on all involved.
A while back I wrote a post arguing that the NZ Left was in serious disarray. Various Left pontificators fulminated from the depths of their revolutionary armchairs against my views, denouncing me for being defeatist. I responded as politely as I could.
Last night conservative, ring wing parties won nearly 64 percent of the popular vote. Left wing parties–such as they are given Labour’s pro-capitalist bent, the Green’s turn to the middle and Internet/Mana’s schizophrenic leanings–mustered 36 percent of the vote. The message is clear: New Zealand is a right-leaning country. Nearly 30 years of pro-market policy (an entire generation’s worth) has resulted in a country that no longer considers egalitarian and redistributive principles as hallmarks of the national identity. Instead, the turn to self-interest has seeped deeply into the social fabric.
That is the context in which the NZ Left must operate. That is the context that I was writing about in my earlier postings. And that is the context that we will have for the foreseeable future unless the Left learns to shift the terms of the political debate off of tax cuts, deficits, public spending, workforce flexibility and other pro-market arguments. So far it has not done so and in fact has often tried to operate within the context and political debate as given. Perhaps last night’s drubbing will make the Left realise that this is a mistake.
After all, those who define the terms of the debate are those who win.
In order for the Left to re-define the terms of political debate in NZ there has to be a plausible counter-argument that can compete with the language of austerity, limited government, non-interference and self-interested maximising of opportunities. This election campaign demonstrated that concerns about civil liberties, privacy, child poverty, environmental degradation, corporate welfare, predatory trade and other progressive cornerstones took a back seat to economic stability as defined by market ideologues.
Given that fact, the process of re-definition has to start there: basic definition of economic stability. One way to do so if to move off of the usual market analytics favoured by bankers and corporates and onto the social costs of an increasingly unequal division of labour. Because the price for market stability is seen in a host of variables that are not amenable to standard market analysis, yet which are as real as the glue sniffing starved kid living rough and begging for change on the increasingly mean streets of Godzone.
During the 25 years I was in academia I wrote a fair bit on the subjects of democracy and democratisation, both in theory and in practice. I continued in that vein in some of my blogging on this site, including the 5 part series on deconstructing democracy in 2009. As part of my ruminations, I have delved from time to time into the subject of democratic accountability, specifically its vertical and horizontal dimensions, both of which are absolute requirements for the health of liberal democracy. Among other things and contrary to what some pundits might say, my understanding of the two dimensions of democratic accountability is what allows me to state categorically that dirty politics such as that practiced by the National Party’s vicious wing is not inherent to democracy
Vertical accountability refers to the accountability of the governors to the governed. The signal feature of this dimension are elections of those who govern, but also include the ability of the electorate to demand review, recall or sanction of non-elected officials such as those in the judiciary and civil service if and when their actions become to egregious or are ignored by the other branches of government. There a variety of methods with which to do so, but that requires a degree of horizontal accountability as well. In any event vertical accountability is aided by a robust, critical and independent media that draws public attention to what otherwise might be quiet indiscretions by those in office.
Here is where horizontal accountability comes in. Each branch of government is formally accountable to the others. In the event of malfeasance in one branch the other branches have a right and indeed duty to independently investigate any potential wrong doing. They must maintain a degree of institutional autonomy in order to do so, because otherwise they cannot exercise the degree of inquisitorial independence that is required for transparency and integrity to obtain.
It is this dimension where New Zealand appears deficient, and the proof of that is the inquiry that the Prime Minister has ordered into Judith Collins use of a public servant’s personal information. In this case the PM gets to frame the terms of reference of the inquiry, and has done so in way that assures that Collins will be exonerated. In political circles this might be called narrowing the focus to what is strictly illegal, but in common parlance it is known as acceptable corruption.
The inquiry conducted by the Inspector-General of the SIS into the hasty OIA release of sensitive SIS documents to a blogger linked to the government is more independent and therefore more transparent and honest, assuming that the IG does her job correctly.
But the problem remains that horizontal accountability in NZ is nowhere what it should be. Parliamentary committees are dominated by the government and often have limited inquisitorial powers. Crown Law has, time and time again, adjusted its prosecution priorities to accord more closely with government interests (recall the time and cost of the Zaoui and Urewera prosecutions, both of which ultimately reduced to far less than the government initially alleged). Some judges are said to lean politically one way or another when it comes to examining government behaviour.
Less we think that this overly friendly relationship between government and prosecutors be exclusive to National, let’s remember that the two prosecutions cited above began (and in Zaoui’s case ended) under the 5th Labour government.
Some say that the lack of a written constitution impedes the full exercise of horizontal accountability in NZ. Perhaps that is so but I also think that it is a product of habitual practice in a small country, where the political elites are for the most part a relatively small club that play by their own informal rules as much as they do by the law. Those in government are given fairly broad license when it comes to how they account for their actions to the other branches. Those in opposition wait for their turn in office to do the same. The judiciary and public bureaucracy publicly maintain their independence but at a senior level they play close attention to the interests of the government of the day.
Voters give a veneer of vertical accountability to the status quo by turning out for elections. Their susceptibility to spin and deflection makes them targets of the dirtier machinations of politicians, and in the absence of genuine horizontal accountability counter-weights that is all that is needed to govern. In such a context governance is all about bread and circus, or in the NZ case, pies and rugby. The fact that National has not suffered much in pre-election polling pretty much confirms this truth.
It can be argued that this is politics as usual, in the form of one hand washing the other in the interest of political stability. Indeed, all of this is perfectly acceptable, except that it is also perfectly, albeit not by legal definition, corrupt. But what is wrong with a little acceptable corruption amongst political friends so long as the public does not care and there are no real institutional checks on what they do so long as they do it quietly?
I could be wrong on this and John Key is just being a jerk when it comes to the terms of the Collins inquiry. But something tells me that the rot runs much deeper, and it will not stop should he and his nasty pack of party colleagues be voted out of office later this month.
Posted on 08:56, August 27th, 2014 by Pablo
Not that readers of KP will need much convincing, but Selwyn Manning has written a decisive essay on why the PM is lying about his involvement in the Slater/SIS/OIA fiasco. To do so he uses the State Services Commission’s guidelines for the release of sensitive information. The question now is twofold: 1) should NZ trust an individual as PM who overtly involves himself in political dirty tricks such as those uncovered by Nicky Hager? 2) should NZ trust a PM who repeatedly bald faced lies to the public on matters of considerable import?
As the saying goes, we may be stupid but we are not idiots.
Anyway, read the proof for yourself.
The Snowden revelations have brought to the fore the issue of oversight and accountability on the part of intelligence agencies in democracies. In this analytic brief I outline ideal type principles and practicalities of democratic intelligence oversight. The idea is to offer a conceptual basis for understanding how democratic intelligence oversight should work with an eye to promoting practical reforms to that end.
As much as anybody I enjoy sports and competition, so much so that I enjoy watching top level competition in sports that I am unfamiliar with. I have therefore enjoyed watching the America’s Cup racing, not so much because of the nationality of the teams but because of the boat design, speed, tactics and seamanship involved. In fact, I am poorly placed to get worked up on patriotic grounds because as readers of my earlier post on liminality may remember, I have allegiances to several countries and divided loyalties as a result. Moreover, I believe patriotism to be the last (and best) refuge of political scoundrels so I endeavour to resist its emotional pull wherever I happen to be living.
In this America’s Cup series I am cheering for Team New Zealand because I know that it means a lot to New Zealand and very little to the US. Other than rugby, Kiwis tend to adopt a “David versus Goliath” approach to international team sports. They are not alone in this small country syndrome, as I have pointed out previously with regard to Uruguay and team sports other than soccer. But in New Zealand that syndrome extends beyond sports, including into the international political and economic arenas.
With regard to the America’s Cup, here in NZ there is live blow by blow coverage of every meter of every race, whereas in the US it is not being covered live anywhere except on boutique cable boating channels. Here it is front page news in every newspaper and news broadcast. In the US it barely rates a header in the sports section of big city newspapers, including that of the race venue San Francisco. Heck, in Texas high school football (the helmeted version) gets more coverage on a weekend than the America’s Cup has had in a year!
In the US most people do not give a darn that Larry Ellison indulges a billionaire fancy with a crew that includes only one American. Here people want to name their first born sons after Dean Barker. They also want that turncoat, traitorous preferably ex-kiwi Russell Coutts strung from the lanyard because he dared to work for the competition. In other words, Kiwis are heavily invested in the outcome whereas in the US they are not.
Or are Kiwis that heavily invested? From what I gather from video coverage of people watching the race live on television on the Auckland waterfront, there is hardly a brown face in the mix. The same goes for those Kiwis who have traveled to the America’s Cup Village in San Francisco. Pure pakeha pulsation throughout.
So where are the non-Pakeha kiwis when it comes to this race? Are they just not into sailing? If so, why not? Why is something that is so heavily promoted by the media and advertisers as a nationalistic rallying point having so little impact on non-Pakeha communities?
I ask because the New Zealand taxpayers have put $38 million into Team Emirates for this race series (both Labour and National support the expenditure). So whether or not they are emotionally invested in the racing, Kiwis are financially invested in it. The public expenditure was justified on grounds that the economic benefits to NZ of a future Cup defense in the event of a win would justify the investment (since winners get to name the venue for the next race). The narrow investment now is said to bring greater and broader future returns.
Besides the fact that no public consultation preceded the allocation of taxpayer money to Team Emirates, the issue of benefits is thorny. Even if Auckland benefits from hosting a future defense of the Cup (and that would mostly go temporarily to hoteliers, restaurants, bars and other service sector providers), what about the rest of the country? Other than Auckland based niche industries like boat-building and sail-making and a few high-end tourist locations and ventures, is it true that the country as a whole will benefit from the tax revenues generated by increased economic activity in Auckland? Do we really expect to believe that places like Ruatoki and Twizel will see direct benefit from an America’s Cup defense in Auckland?
It should be noted that Team Oracle USA received no public funds for its Cup defense, and that the redevelopment of the Embarcadero in San Francisco was a majority private venture that has not yielded the economic dividends to the city that were originally tabled by way of justification for holding the race there. So the “future benefits” argument is contentious at best, especially if drawn over the long-term. Yet spending public money on the challenge is seen as in the long-term NZ national interest.
Put another way, why is it that NZ taxpayers coughed up money for a yacht race campaign that not all New Zealanders care about and which relatively few New Zealanders will benefit from in the form of future uncertain economic returns in the event of a successful challenge this year? Since hosting the Cup defense will undoubtably include allocations of more taxpayer dollars to infrastructure and venue development, is this an appropriate use of public money? Given that the food in schools program receives just $10 million a year, could it not be argued that government priorities are a bit out of whack when it comes to long-term investment in the nation’s future?
Leftist conspiracy types will claim that the government subsidy for a small appeal elitist sport is designed to benefit its rich and upper middle class business supporters, nothing more. I would hope not, but then again I come back to the question of who in New Zealand is truly supporting the Cup challenge. Is the America’s Cup for the few or for the many? In the US it is for the few by the few, but here in NZ the issue appears a bit more complicated.
Anyway, I could be entirely wrong in my read and certainly do not have a good handle on the extent of support for the America’s Cup outside of what I have seen and heard in the media. Readers are welcome to ponder and comment on the issue.
Better to do that than to get started on the subject of host venue race time limits being enforced in low wind conditions on a day when a overwhelming match-winning victory by the challengers was in sight!
Now that the Kitteridge and Neazor reports have been tabled, discussion can more fully proceed to the issue of intelligence oversight. The government has proposed bolstering resources for the Inspector General of Intelligence, and adding a Deputy Inspector General to what until now has been a one man shop. That is a step in the right direction, but it falls very short of the mark when it comes to robust, independent intelligence oversight mechanisms. Here I outline one way of achieving them.
Currently the IG is dependent on the NZSIS and GCSB for resources and cooperation and answers to the Prime Minister. That puts him at the interface between politics and operational matters in a chain of responsibility, which reduces his freedom of action.
The IG’s office should be strengthened in terms of staff and moved to become an agency of parliamentary services. It will answer to the Parliamentary Committee on Security and Intelligence, although its staff and funding source will be independent of the Committee. The Committee will have powers of compulsion under oath that allow it to force intelligence managers to release operational details or classified information to it upon request. It would meet at least once a month and receive scheduled classified briefs from the directors of the SIS and GCSB as well as senior managers in the DPMC handling intelligence flows. At any time the Committee would be able to order the appearance in special session of officials from the Police, Customs, Immigration, Treasury and other agencies that employ intelligence collection and analysis services.
All of this would require that the staff of the committee as well as that of the IG have security clearances akin to those of personnel employed by the agencies being overseen. That will require background checks and security vetting of staff. Members of the Committee would be required to sign secrecy oaths under penalty of law.
The transition from the current ineffectual oversight mechanisms to something more effective will take time and money. It will therefore be resisted not only by the agencies being overseen (who naturally will be discomfited by increased scrutiny from agencies unattached to the Prime Minister). It will also be opposed by political sectors focused on cost-cutting, quick results, or maintaining the current system because of the weight of institutional legacies and/or advantages it gives governments when it comes to the interpretation and implementation of intelligence priorities. But it is certainly worth doing.
The time is opportune for change. The sequels to the Dotcom case have exposed serious problems in the political management of intelligence issues as well as deficiencies in the conduct of intelligence operations. The government has proposed significant changes to the 2003 GCSB Act, particularly section 14, that will have the effect of strengthening the GCSB’s powers of internal (domestic) surveillance at the behest of other agencies–foreign and domestic. The justification for this rests on the increasingly transnationalized nature of security threats, whereby the intersection of local and international crime, foreign corporate and political espionage, irregular warfare networks and non-state actors makes much more difficult precise definition of what constitutes a domestic as opposed to foreign intelligence concern. These are grey area phenomena, and the response cannot be given in black and white.
I agree that the security threat environment has changed and is much more “glocal” or “intermestic.” I agree that it requires statutory revision in order to better account for the changing nature of intelligence operations under such conditions. What I am proposing here is a parallel revamp of oversight mechanisms that promote more independence, transparency, accountability and compliance at a time when the scope of intelligence agency authority is being redefined and expanded well beyond traditional espionage operations.
The issue is worth debating and therefore should be the subject of a larger inquiry such as proposed by Labour and the Greens. If nothing else the Kitteridge and Neazor reports can be used as the starting point for a more thorough discussion of the role, functions and purview of NZ intelligence agencies given the changed nature of the threat environment and the equally compelling need to maintain a better measure of democratic accountability than has heretofore been seen.
Although I always knew that “hope and change” was a rhetorical chimera rather than a realizable objective, and understand full well that the US presidency is a strait jacket on the ambitions of those who occupy its office, I am one of those who have been disappointed by the Obama administration on several counts.
I fully understand that he inherited a mess and has done well to dig out from under it, particularly with regard to revitalizing the economy and disengaging from two unpopular wars. With some caveats, I support the drone campaign against al-Qaeda. I support his health care reforms, his support for gay marriage and his efforts to promote renewable energy. I support his measured endorsement of the Arab Spring coupled with his cautious approach to intervention in Libya and Syria, where he has used multilateral mechanisms to justify and undertake armed intervention against despotic regimes (US intervention being mostly covert, with the difference that in Libya there was a no-fly zone enforced by NATO whereas in Syria there is not thanks to Russian opposition).
But I am disappointed in other ways. The failure to close the detention facility at the Guantanamo Bay Marine and Naval base, and the failure to put those detained there on trial in US federal courts because of local political opposition, are foremost amongst them. Now, more egregious problems have surfaced.
It turns out that after the attacks on the US consulate in Benghazi, Libya, on September 11, 2012, the administration removed from its “talking points” for press briefings and interviews the facts that the attack was conducted by al-Qaeda affiliates (and were not a spontaneous response to an anti-Islamic on-line video, as was claimed), that repeated requests for security reinforcement at the consulate before the attacks were denied in spite of warnings about imminent threats, and then military assets were withheld during the incident (which lasted eight hours).
The public deception was out of proportion to the overall impact of the attack. Whether or not al-Qaeda affiliates conducted it, serious questions about the lack of security were bound to be raised. The White House appears to have panicked under campaign pressure about the significance of the date of the attack and who was attacking (a purely symbolic matter), compounding the real issue of State Department responsibility for the security failures involved.
While not as bad as the W. Bush administration fabricating evidence to justify its rush to war in Iraq, it certainly merits condemnation.
There is more. It turns out the IRS (the federal tax department, for those unfamiliar with it), undertook audits of right-wing political organizations seeking tax-exempt status as non-profit entities. IRS auditors were instructed to use key words and phrases such as “Patriot,” “Tea Party” and other common conservative catch-phrases as the basis for deeper audits of organizations using them. That is against the law, albeit not unusual: the W. Bush administration engaged in the same type of thing.
Most recently it has been revealed that the Department of Justice, led by Attorney General Eric Holder (a recent visitor to NZ), secretly obtained two months of phone records from over 100 Associated Press reporters and staff, to include their home land lines, office and cell phones (in April-May 2012). The purpose was to uncover leaks of classified information about counter-terrorism operations to reporters after AP managers refused to cooperate with government requests to divulge the sources of leaks. That made the phone tapping legal. But there was an option: the government could have subpoenaed those suspected of receiving leaks and forced them to testify under oath as to their sources.
The main reason I am disappointed is that the Obama administration should have been better than this. I never expected the W. Bush (or the Bush 41, Reagan or Nixon administrations) to do anything but lie, cover up, fabricate, intimidate and manipulate in pursuit of their political agendas. They did not disappoint in that regard. But I do expect Democrats in general, and Obama in particular, to behave better in office. They are supposedly the defenders of the common folk, upholders of human rights and civil liberties, purportedly staunch opponents of corporate excess and abuses of privilege.
Republicans inevitably use public office to target domestic opponents and bend the law in favor of the rich and powerful. Democratic administrations are supposed to be better because, among other things, they know the consequences of such manipulation. Yet apparently they are not, even if these events pale in comparison to the crimes and misdemeanors of Republican administrations.
I am not being naive. I spent time working in federal agencies under both Republican and Democratic administrations in the 1980s and 1990s, and the difference in approach to the public trust, at least in the fields that I worked in, were great and palpable. It would seem that the things have changed since then.
Democratic governance often involves the compromise of principles in the pursuit of efficiency or cooperation in policy-making. There are always grey areas in the conduct of national affairs, and there are events and actions where reasons of necessity make secrecy more important than transparency in governance. The actions outlined above are neither.
I still prefer Obama to any of the GOP chumps that rail against him. But as John Stewart makes clear in this funny but scathing (and profane) critique, he and his administration have just stooped closer to their level.
Hence my disappointment.
A recent TVNZ Colmar Brunton poll showed that 32 percent of those surveyed had little or no trust in New Zealand’s intelligence agencies, 32 percent had much or complete trust in those agencies, and 33 percent were lukewarm either way (with 3 percent undecided). That means that 65 percent of respondents were less than strongly trusting of New Zealand’s spies. This is a remarkable degree of public skepticism of intelligence organizations in a democracy.
The Prime Minister has said that the New Zealand intelligence community has to work hard to regain public trust. He is wrong, or is just being politically polite.
Unlike agencies such as the Land Transport Authority, Police, Fire Service, Health Boards, WINZ and Education, which provide direct goods and services to the public and which depend on public trust in order to operate efficiently (notwithstanding the well-known problems afflicting at least some of these “direct provision” agencies), the intelligence community need not concern itself with expressions of public trust. That is because the service that intelligence agencies provide as ostensibly commonweal organizations (i.e. ones that serve the universal public interest), although for the general good in the last instance (at least theoretically), is not provided directly or even openly. Instead, the intelligence agencies answer to the government of the day as the representative of the public will and provide their collection and analysis skills to the government for the national good as defined by their charter and the government’s interpretation of it. They do not need the public’s trust in order to operate efficiently because most of what they do is away from the public eye.
Thus, in the first instance, the trust of the government is what matters for the spies. In this the intelligence community has an advantage because politicians elected into government are generally not conversant with intelligence matters and therefore are susceptible to espionage agency “capture:” the information that the spies provide gives the political elite a privileged window on the world, so they are most often reluctant to critically dispute the view.
More importantly, New Zealand’s intelligence sharing partners must have strong levels of trust in its spies. Without that, New Zealand’s access to allied intelligence sharing may suffer because foreign partners will be reluctant to risk placing sensitive information in the hands of untrustworthy people. The saving grace for New Zealand’s spies is that the years of relationship-building with its intelligence partners could allay the latter’s fears of incompetence or unprofessionalism on the part of the former.
On the other hand, even long standing relationships can be damaged by breaches of trust. This could well be the case in the wake of the Dotcom scandal, where the case against the internet magnate is crumbling in light of disclosures of illegal warrantless wiretapping by the GCSB (which makes evidence collected by those wiretaps inadmissible). Between the GCSB’s failures to follow its own basic protocols with regards to eavesdropping requests from sister agencies, coupled with the over the top nature of the raids on Dotcom’s residence (which included the presence of armed FBI agents and the detention of women and children by armed police), it is unlikely that any NZ judge will grant the US extradition request. That means time and resources spent by the US and NZ on pursuing the case against Dotcom will be for naught. The GCSB failings are bound to be noted by New Zealand’s intelligence partners, who will wonder about the assurances given by the GCSB and Police (and more than likely the SIS) that their course of action would not be subject to legal challenge or public scrutiny.
The bottom line is one of vertical and horizontal accountability. In democracies, governments are held accountable by the electorate (expressed both individually and collectively). That is the vertical dimension of accountability. Under that government, public agencies are accountable to each other via a system of checks and balances. That is the horizontal dimension of democratic accountability, which is used to cultivate the public trust that is key to vertical accountability.
In New Zealand there is very little horizontal accountability between the intelligence community and other parts of government, to include parliament and the judiciary (and perhaps even the executive in specific instances). This makes its agents (to include the GCSB and SIS) even less vertically accountable than in most liberal democracies, where oversight, compliance and accountability mechanisms are much better developed.
As a nation-state New Zealand is also accountable to its diplomatic and security partners. That is another facet of horizontal accountability, writ large. New Zealand’s foreign partners must have trust in its diplomatic, military and espionage agencies in order for their mutual relationships to prosper. So long as they do, domestic trust is of secondary importance. But for that to happen, New Zealand’s intelligence community must be able to deliver on what it promises, which means that it must offer iron-clad guarantees that its activities will not be the subject of contentious public or political debate that can jeopardize ongoing intelligence collection and analysis operations
Thus, on the one hand, the poll results are not as worrisome for the government as may appear at first glance. So long as the New Zealand intelligence community and its component parts have the trust of its allies, then it will suffer no harm as a result of the public loss of faith in it. But should foreign partners come anywhere close to exhibiting the flat bell curve of trust that characterizes the results of the TVNZ survey, then New Zealand could well find itself excluded from at least some of the sensitive intelligence flows that are the ostensible reason for its participation in the Echelon/Five Eyes network, to say nothing of the wider intelligence community of which it is part.
As for the domestic side of the equation: a nation of sheep is led by the sheep dog. The sheep dog is the government, of which intelligence agencies are part. The shepherd is the institutional system of checks and balances that govern intelligence gathering and analysis, to which the government of the moment is subject. Absent such effective oversight, compliance and accountability mechanisms, sheep are always at the mercy of an unrestrained and unaccountable dog.