Category: Democracy

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Improving intelligence oversight.

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.

 

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Disappointing.

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.

 

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Gilmore’s ghosts

I disagree with Pablo’s post about media treatment of the Aaron Gilmore saga — but I only disagree a little. In my view the Gilmore case is “stuff that really matters”, but I do agree with Pablo that most of the coverage of it isn’t getting to the “stuff that really matters” elements of the case nearly well enough, and that it is displacing coverage of more crucial issues from the agenda. All the stories Pablo mentions are worthy of much more, and more in-depth reporting than they have received. Two other points Pablo makes are particularly valuable — that “blood in the water is not akin to developing real critiques of the way power is exercised”, and that “the problem of Gilmore’s unwillingness to resign stems not from MMP but from political party charters regarding their lists in an MMP environment.”

The Gilmore story is important, as are those others — but the coverage is so individuated to him that it makes the issues seem trivial, because ultimately, if you reduce the story to that of a drunken backbencher, it is. At the heart of the Gilmore saga is the abuse of power, and the problem is that the coverage is about Aaron Gilmore’s attempted abuse of his own power, not about a culture within the National Party and the government where the abuse of power is not merely acceptable, but routine and expected.

The deep questions — how such a megalomaniac got into an electable position on a party list; who, having been apprised of these born-to-rule tendencies after previous incidents of this sort, approved his position; and the implications of this for the health of our democracy — these are important questions. They haven’t really been asked, or answered, though Matthew Hooton, of all people, had a go at it early on.

The John Key National-led government has a lot of form for bad and self-serving appointments, and for the abuse of power. This has presented opportunities for the opposition to frame them as serial cronyists, which they haven’t been able to take. (I wrote a couple of things about this in the first term — it’s not new). And it’s still going: to hear locals tell it, how Gerry Brownlee and CERA are treating Eastern Christchurch isn’t all that different in its principles to how Aaron Gilmore treats waiters and public servants. (The difference is that they have real power.) Recent appointments on the basis of loyalty or malleability at the expense of quality or expertise include Catherine Isaac to implement charter schools, Ian Fletcher as head of the GCSB and Dame Susan Devoy as race relations commissioner.

This is a government which has been particularly unconcerned with even the appearance of due process, and this should be acknowledged in every story on this topic. There’s no credible argument they hadn’t done due diligence on Aaron Gilmore — he was already in Parliament once. Why do they appoint people like this, and why do they get away with it?

The hard truth is that political parties will overlook an awful lot if there’s a financial or electoral advantage to doing so, just as corporations will. Militaries will overlook almost literally anything, up to and including the mass murder of civilians. This is true of the “nice” guys as well as the nasty ones — the Obama administration’s continuing support of Guantanamo Bay and its increasing use of UAVs are two clear examples of this. Apple products are manufactured by the notoriously exploitative Foxconn (Apple is far from alone in this, but we’re supposed to think Apple is somehow better than others). For a recent local example, see the Labour Party’s dogged defence of Taito Phillip Field, whose abuse of vulnerable workers cut directly against everything a Labour party ought to stand for. There are many more.

The fundamental reason this sort of behaviour is endemic is that we — as voters, or in the corporate case, as consumers — reward it with our votes, or our wallets, or both. Parties and companies that eschew these methods tend to lose to those who accept them as an ethical cost of doing business because while we are happy to get outraged, when the chips are really down, we don’t actually care that much about this sort of thing. It doesn’t really change our behaviour.

The danger is that people start caring, and more importantly, start remembering, and changing their behaviour. If the Aaron Gilmore affair haunts the National party — and the other parties — such that they see a strong downside risk to appointing cronies, selecting megalomaniacs for their lists, and generally swaggering around as if they own the place, we’ll all be better off. If parties are forced to accept responsibility for their bad decisions, and as a consequence to select better people and implement better systems of accountability and conduct, cultures of power-abuse will abate. Incidentally, this is why I don’t favour a rule that allows parties to eject rogue MPs from Parliament* — the Nats bought Aaron Gilmore, they own him. We should judge the entire party by his actions.

But for this sort of change to occur, we need media coverage to develop those real critiques of the exercise of power, rather than critiques of an obnoxious individual who is ultimately just a product of larger cultural systems. That would make this sort of wall-to-wall coverage worthwhile.

L

* Though I still believe any credible political leader should be resourceful enough to find ways to persuade rogue MPs to resign.

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The bin-Laden legacy.

Nearing the second anniversary of Osama bin-Laden’s death, it might be wise to pause and reflect on his legacy. The purpose is to give an objective appraisal rather than to engage in emotive debate or prejorative discourse.

Bin-Laden’s major legacy is one of ideological inspiration: he cemented in the minds of some sectors of the global Islamic community the idea that Western encroachments on Muslim societies, particularly that of the US, could be resisted with irregularly deployed armed force. These actions need not be spectacular, such as the 9/11 attacks. They could equally be low-level, localized and home-grown so long as they were persistent and unpredictable. There cumulative effect would increase the anxiety of the targeted (mostly but not exclusively Western) populations while prompting an over-reaction by their respective security authorities that impacted on basic notions of civil liberties, individual freedoms and collective rights. The sum effect would be risk aversion by non-Muslims when it came to imposing non-traditional values and interests on Muslim societies.

With regard to the US, bin-Laden’s broader strategic objective, as former CIA officer and bin-Laden profiler Michael Scheuer has pointed out, was to over-extend the US military in an ongoing global unconventional conflict unconfined to national borders or specific regions, which would result in economic bankruptcy and ensuing political polarization within the US. That in turn would prompt the resurgence of isolationist and pacifist tendencies within the US public that would erode support for foreign policies of intervention in Muslim lands.

Although the strategic concept vis a vis the US has not been fulfilled to its ideal, it seems to have been in some measure successful: the costs of the wars in Afghanistan and Iraq contributed to the fiscal crisis that led to the 2008 recession and ensuing politics of austerity. Iraq was a strategic over-reach (and mistake) by the Bush 43 administration intent of demonstrating its resolve as well as its military might. Increasingly polarized over basic notions of identity and values, the US public has nevertheless become more collectively risk adverse when it comes to engagement in foreign conflicts, something reflected in the tenor of politics within the Washington beltway.

Likewise, the Afghanistan conflict went from being an attack on al-Qaeda and its Taliban protectors to a war of occupation without end under the guise of “nation-building” and “security assistance.” The material costs of both wars have been phenomenal and the human costs, if not counted in the billions, have been equivalent to those of Vietnam and the Korean Conflict. Previously dormant ethno-religious tensions have been awakened in Asia, Europe and North America with ill political and social effect. The politics of toleration, once a hallmark of Western democracy, now competes with xenophobia and religious separatism for electoral favor. Even Australia and New Zealand are not immune from the syndrome.

In terms of the armed conflict itself, there are now two broad fronts involving two very different strategies at play from a “jihadist” point of view. On the one hand, attacks in stable nation-states with minority Muslim populations have devolved into dispersed, decentralized, self-radicalized grassroots small cell operations in which elements of the Muslim diaspora use their local knowledge to conduct symbolic attacks on host societies. Modeled on Che Guervara’s “foco” (wildfire) theory of guerilla warfare as channeled by Carlos Marighella with his “two-prong” strategy of simultaneous urban and rural insurgency, the objective is not just one of symbolic protest but also to prompt a blanket over-reaction by local authorities in which many are targeted for the crimes of a few.

The lock-down in Boston during the one suspect manhunt after the marathon bombings, a clear violation of the fourth amendment to the US BIll of Rights prohibiting unwarranted searches and seizures (ostensibly done in the interest of “public safety”), is a case in point. More generally, the suspension of civil liberties under a variety of anti-terrorist legislation in a number of Western democracies, to include New Zealand, demonstrates just how successful bin-Laden’s strategy has been at eroding the constitutional pillars of these societies.

That is all the more poignant because Islamic terrorism does not constitute an existential threat to any stable society, Western democratic or not. In fact, one can argue that terrorist acts are more acts of desperation in the face of permanent value or cultural change than it is a defense of tradition or promotion of a preferred alternative (think of the attacks of armed Marxist groups in Europe in the 1970s and 1980s). It may be injurious and tragic for those involved, but in the larger scheme of things it is more akin to the last grasp of a drowning person than it is a serious challenge to the socio-econmic and political status quo.

However, in fragile or unstable states where Muslim populations are a majority or a significant minority, the strategic objective is to gain state control waging more conventional wars. The confluence of historical grievances rooted in traditional forms of discrimination superimposed on territorial or resource disputes lends popular support to jihadist attempts to wrest sovereign control away from pro-western regimes in places like Yemen, Mali, Somalia, and increasingly, Nigeria. Likewise, Muslim irredentists with local grievances engage in guerrilla wars in Chechyna, Thailand, Pakistan the Philippines and Kazakstan, among other places.

In a twist of fate, the so-called “Arab Spring” has allowed battle hardened jihadists from places such as Chechnya, Iraq and Afghanistan to exploit the window of opportunity offered by civil war in places like Libya and Syria to promote their Islamic agendas in solidarity with their local brothers. Courageous, ferocious and determined, these forces provide discipline to otherwise rag-tag resistance movements who in the absence of such help are more likely to be defeated than to prevail.

The impact of these internationalists was felt in Libya, where in spite of covert Western military assistance the jihadists gained a significant toe-hold that has yet to be dislodged. Likewise, the resistance in Syria is increasingly led by black flag fighters drawn from throughout the Sunni world. The possibility of these forces eventually securing power in both countries remains very real.

Not all has gone to plan according to bin-Laden’s dream. The use of lethal drones as a favorite anti-terrorist weapon has decimated al-Qaeda leadership ranks. The military and intelligence campaigns against militant Islamicists have prevented the organization of large-scale attacks such as 9/11 because the number of people and logistics involved invite early detection and proactive response. With the exception of Pakistan, which has strategic reasons for playing both sides of the fence in the so-called “war on terrorism,” Muslim states have largely joined the anti-Islamicist campaign (although Sunni Arab support for the fight against the Gaddafi and Assad regimes is clear). Thus the decentralization of jihadist operations was a practical necessity as much as the second part of a long-term plan.

The bottom line is that although the bin-Laden legacy is mixed, it has been indelible: the world is a changed place as a result of his actions, for better or for worse. But the world is also a different place because of the response to his actions, for better or worse. It is the latter that will determine the fundamental impact of the former long after his death.

 

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Trust in spies.

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.

 

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Recognising the enemy

Last night the New Zealand parliament voted 77-44 on the third reading of the Marriage (Definition of Marriage) Amendment Bill, passing it into law. The strategy I wrote about after the first reading has been spectacularly successful, and marriage equality will be a reality as soon as the bill receives the royal assent.

There were many powerful speeches last night. Louisa Wall discussed the spectrum of cultural traditions around sexual and gender diversity, and called a huge roll of supporters from almost every corner of the political compass.

Maurice Williamson lampooned the supposed “gay onslaught”, celebrated the “big gay rainbow” that had appeared in his electorate this morning as a sign, and hilariously used his training in physics to calculate the amount of time a person of his mass and humidity would burn for in the fires of Hell. “I will last for just on 2.1 seconds — it’s hardly eternity, what do you think?”

Tau Henare gave his old party leader Winston Peters a lesson in political history, why referenda aren’t the answer to everything, and why exactly he is no longer a member of the New Zealand First party.

Mojo Mathers spoke of the pride she felt when her daughter attended the school formal with her girlfriend. And following the vote, in scenes that have been viewed all around the world, the House stood and broke into song.

There were others. But for me the heaviest work of the night was done by Kevin Hague, who got to the very heart of enmity to this bill, and to this cause in general. I’ve quoted him at length, emphasis mine:

“I remember travelling to Auckland’s North Shore to protest against one of our opponents, Pastor Richard Flynn, who called publicly for homosexuals like me to be put to death. Over the years I have campaigned hard for the right of our communities to not be outsiders any more, to assume a full place in New Zealand society. With every new reform, the same group uses the same strategy, raising fears of terrible consequences which always fail to materialise.”
[…]
“Mr Speaker, that’s why this bill is about so much more than achieving equality under the law, a basic human right that has been denied us until this day. It’s about saying ‘these lives matter: our society is big enough for us all.’ With this bill, our parliament stretches out its arms to my communities and says ‘our society is big enough for you, too — you belong, unequivocally, and without compromising who you are.’

“When the debate started, I thought all of the people like Richard Flynn had thankfully gone. The early comments from opponents were refreshingly free from fire and brimstone. There is no doubt that New Zealand has grown up over the past 27 years, as we have become a more modern, vibrant, and pluralistic society. But as the debate has worn on we have seen the re-emergence of a hard core whose opposition to this bill has lost its veneer of reasonableness. Their problem with this bill is that they believe that we gay and lesbian people are morally inferior. They don’t want to include us as as full participants in New Zealand society. They recognise — correctly — what full legal equality, what this signal means. And they don’t like it.“

Kevin Hague’s measured words and calm delivery obscure a stark and clear-sighted analysis: This is war. The enemy does not regard us as human, and they never will, so we must defeat them utterly. When it comes to GLBTI people, adherents to this creed of brimstone will be satisfied with nothing less than extermination and erasure: they are an existential threat. Although it is often couched in such terms, beneath the veneer theirs is not a rational objection founded in philosophy or pragmatism, in science or honest assessment of tradition; it is simply fear and hatred that burns like the fires they preach. This is not confined to the religious sphere — variants of the brimstone creed exist within secular society, and across a broad ideological spectrum, but they share extremism in common. Much of the discourse around marriage equality, and much of the discourse around related matters, rests on ignoring, minimising or mocking those who stand up for the brimstone creed, but the brilliance of Kevin’s analysis is that he meets them — and it — kanohi ki te kanohi, staring it in the face and recognising it for what it is.

But marriage equality won because it isn’t just an issue for GLBTI people. Ghettoising it as a “gay issue”, (as feminism for generations has been ghettoised as a “women’s issue” and racial equality has been ghettoised as a “black” or a “brown issue”) was a delaying strategy that worked for a time. But no longer. Marriage equality passed because a bill introduced by a gay Māori woman was supported not only by gay Māori women, but by men and women, young and old, homosexuals and heterosexuals and bisexuals, liberals and conservatives, socialists and libertarians, atheists and agnostics and Christians and Muslims, Māori, Pākehā, Pasifika, Chinese and Indians.

All of us who believe in a just society, and an equal society, who believe in a place where ancient prejudices, cultural inertia or the maintenance of privilege cannot justify erasure must fight these battles too. The brimstone creed isn’t just an existential threat to “teh gays” — it is an existential threat to a free and decent society, and we will not have won until we defeat them utterly. There are many more battles like this, and with the clear vision and fierce determination of people like Louisa Wall and Kevin Hague, I am strangely optimistic about fighting them.

L

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Spot the difference

Prime Minister John Key has released a statement expressing condolences at the death of Baroness Margaret Thatcher:

The Government is today paying its respects to the family, friends and colleagues of former British Prime Minister Margaret Thatcher who passed away overnight.

“Baroness Thatcher was a passionate and formidable politician who loved her country. She was a strong and decisive leader with unwavering principles. She was Britain’s first and only female Prime Minister.

“We join with political leaders around the world in remembering Margaret Thatcher’s service to the people of Britain and her significant impact on the global political environment,” said Mr Key.

Labour leader David Shearer has also issued a statement:

Labour leader David Shearer has paid tribute to former British Prime Minister Lady Margaret Thatcher, who has passed away aged 87.
“This is an enormously sad time for her family. My thoughts are with them, and the people of Britain, at this time.”
Mr Shearer says he admired Lady Thatcher as fiercely determined leader, who stood up for what she believed in.
“Lady Thatcher will be remembered as a strong and determined leader.”
During her time as Prime Minister, from 1979 until 1990, she faced some real challenges – from the conflict in the Falklands to tremendous economic changes,” says Mr Shearer.
“She has left a strong and permanent legacy in Britain. Lady Thatcher believed passionately in what she was doing, and she will be missed by many.”
Mr Shearer says he had met Lady Thatcher once in Britain, prior to his entering politics.
“I met Lady Thatcher only briefly, and I remember being somewhat in awe of her, as such a well-recognised, well-known world leader.

(Both statements slightly edited.)

L

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Selections matter

Justice Minister Judith Collins has appointed Dame Susan Devoy as Race Relations Commissioner.

She replaces Joris de Bres, who has served two five-year terms and is very well-regarded in Māoridom (at least) because (in part) he understands the importance of his own Dutch whakapapa, and the complexity of his place as an immigrant in Aotearoa. As Bryce Edwards and Morgan Godfery have noted, he has also shown an unusual willingness to comment on issues related to his mandate of opposing racism.

No doubt this fact has informed Collins’ decision to appoint someone less feisty. Dame Susan has little or no high-level experience in the field, and I suppose the thinking is that she brings a clean slate to the role or, to put it another way, her thinking and the degree of her engegement with the issues will be more easily influenced by the prevailing governmental culture. But Dame Susan is not a blank slate. A week ahead of Paul Holmes’ now-infamous Waitangi Day a complete waste column, she wrote one of her own that, although it employed language more befitting a Dame, nevertheless expressed similar sentiments. One year ago our new Race Relations Commissioner wished that instead of Waitangi Day we could have “a day that we don’t feel ashamed to be a New Zealander” and pined after a holiday like that celebrated in Australia, where — a few recent and grudging obeisances aside — 50,000 years of history and the brutal facts of the settlement of that land are blithely ignored in a jingoistic celebration of Ocker Pride.

That would be bad enough, but it gets worse: Dame Susan doesn’t have a clue what she’s doing:

Jacob McSweeney: “She admits she doesn’t have a wealth of experience in race relations, but she says the job isn’t overly complicated.”
Susan Devoy: “I don’t think it’ll make it any more difficult than dealing with any other issues, I mean, you know, this is all under the Chief Human Rights Commission [sic], and so therefore whether it’s disability or gender or employment or race, you know, the issues are not dissimilar. This is just about making it right for every New Zealander.”

(From Checkpoint.)

This is a terrible appointment. Anyone who thinks Aotearoa’s race-relations culture isn’t complicated is by definition not equipped for the job of guiding and guarding it. Not only is our new Race Relations Commissioner ashamed of our national day, but as far as she’s concerned it’s just another ism — revealing how little she must know about disability, employment or gender issues into the bargain.

So as far as that goes, she looks like the perfect post-ideological, post-identity selection for such a job: a common-sense managerialist who, to the limited extent that she understands the issues in play, finds them distasteful.

What a good opportunity for Labour! The National government, at a time when racial and cultural tensions are a major issue, clearly doesn’t value race relations sufficiently to put anyone competent in the job. But the Labour party has selection problems of its own: an Ethnic Affairs spokesperson who is a former race relations commissioner (Rajen Prasad) so far down the list that he doesn’t get a ranking; and a Māori Affairs spokesperson — and former minister — Parekura Horomia, also unranked. Labour is perilously short on brown faces, with none in the top five and one — Shane Jones — in the top 10, and him only recently returned from purgatory. Morgan Jack McDonald has some advice on this topic.

The hard truth is that Labour isn’t in a position to criticise the government on race relations issues. This is due to their internal failures of strategy, not due to exigencies forced upon them. For all that the appointment of Dame Susan Devoy to Race Relations Commissioner is terrible, the Key government has done a lot more than expected in other areas of race relations, particularly with regard to progressing Treaty settlements. That gives them cover. They’ve gotten away with worse than this appointment, and they’ll keep getting away with it as long as the major party of opposition lets them.

L

(Thanks to James Macbeth Dann for drawing my attention to Dame Susan’s column, which was plucked from obscurity by Coley Tangerina.)

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Labour: locking in lose-lose

David Shearer says he won’t rule out buying back shares in state-owned power companies sold by the government. He won’t rule it in, either. Why? Does he need to consult his leader?

There’s so much wrong with this that I scarcely know where to start. This buyback agenda has been set by Winston Peters; it’s now two years since the 2011 election campaign kicked off with a pledge to sell these assets, and it’s like the boffins in Labour haven’t yet had an original idea about it. The problem with old generals is supposed to be that they fight today’s war with the strategies of yesterday’s war, but this is worse — it’s fighting yesterday’s war with the strategies that lost the one before that.

But enough about my thoughts on the referendum. This time the issue is what happens after the SOEs are sold. Chris Trotter has articulated strong political arguments for nationalisation, and I think these serve to demonstrate that nationalisation is not simply untenable for a left-wing political movement.

So while I’m not persuaded the opposition should do it, there’s definitely a right and a wrong way to go about nationalisation. The core principles are similar to those in play with the initial privatisation: that we should have good information about the intentions of the main political decision-makers; and that people should not have property expropriated without due process. This need not be perfect consent — an election result delivering under 50% was sufficient to grant a mandate to privatise half the value of these assets, for example.

Market and electorate signals
Shearer’s “maybe we will, maybe we won’t” is the worst possible position. The markets into which these shares will be floated need signals so as to judge risk, and the electorate needs signals so as to judge the quality and character of the politicians they might vote for in 2014 and beyond.

A clear “we will buy them back” or “we will not buy them back” would do that; it would tell the market and the electorate what to expect and they could act accordingly. Both groups would know we were dealing with politicians of at least some sort of conviction, and more to the point, someone willing to make some big calls, to put something on the line. Today we see before us a Labour leader who has neither the conviction to know what he wants to do, nor any will to do it.

As Chris says, a stance one way or the other would provide Labour with a mandate. If Labour considers nationalisation irresponsible, then as voters we ought to know that; but it is much more crucial to justify an actual nationalisation programme. Given that the current criticism of the government is that they lack a mandate to do something they campaigned for a whole election year on doing, I struggle to see how even the most one-eyed Labour partisan could honestly justify the massive expense of buying back SOE shares unless it was clearly signalled and voted on beforehand.

This need not be unconditional. Graeme Edgeler has suggested a provisional pledge — Labour could say that if, say, two thirds of respondents in the referendum vote to not support the asset sales then an incoming Labour government would seek to nationalise them. David Shearer has many options that are better than “maybe”.

Economics of a sell-off/buyback
If Labour genuinely believes — as it has told us for two years now — that the value of these assets is greater than the cost of borrowing to buy them, it should be easy enough to show that buying them back at fair market value is worthwhile. This will likely have the effect of inflating the price, but it would at least do our international reputation comparatively little harm.

It might be reasonable for Labour to pledge to buy the shares back at cost, but only if the pledge is made credibly and early — certainly no later than the first round of sales. The pledge would be fair warning to investors: if they choose to disregard it, that’s on them.

Because it allows the markets to price in the risk of a Labour-led government coming in and making good on its promise, signalling nationalisation in this way would likely depress the initial sale value of shares. If the threat was sufficiently credible it could, in principle, depress demand for shares to the point that selling them would be uneconomical — thereby preventing the sale, or limiting it to just one or two SOEs. While this would look bad for the government there is also a downside risk that the opposition would be seen to be sabotaging the scheme — but given that Labour seems certain the scheme is unpopular, that should not concern them too much.

Because there is an ideological imperative behind the sale (that is to say, the market already knows the government has to sell in order to retain political credibility) it seems likely the shares will already yield less than what an equivalent float by a less-motivated seller might yield. There are other industry-specific factors which could also depress the price — the fact that hydro generation is not much good in the middle of a historic drought, for example. I have no knowledge of the value of the assets as they stand, but it doesn’t seem totally outrageous that it might not be all that high as it is, and a little more risk might just be enough to turn people away.

Conversely, a nationalisation conducted after the shares have been sold has the opposite effect. An ideological bulk-buyer in a fair market will bid the price up. Even worse is the middle-ground: if there exists sufficient uncertainty before the float the sale price could be depressed; followed by a Labour election win and nationalisation, causing the price to rise. The government would be selling low and buying high.

Venezuela of the South Pacific
The worst of all cases is if Labour does not provide a strong and credible signal of nationalisation ahead of the float, and then proceeds with a “surprise” nationalisation on an at-cost or dictated price — or worse yet, expropriation without compensation, as has been suggested by some of the more wild-eyed idealists. Parliament is sovereign; in principle, an incoming government could do this. But it would be a brutal assault on property rights and repugnant to a modern liberal democracy, especially one so dependent on international trade as we are. It could justifiably lead to New Zealand being treated as a pariah kleptocracy, and since the SOEs are being floated on the ASX and will likely include some institutional investors there, it could also have deep trade, diplomatic and cultural implications. I expect there is also the risk of legal challenge.

The worst aspect of holding the “maybe” position Shearer has taken is that the risk of “Venezuela of the South Pacific” scaremongering exists as long as this scenario is not clearly and credibly ruled out. I don’t seriously believe this sort of expropriation would happen under a modern Labour government, but political narratives needn’t be based on reality.

If Labour commits to nationalisation then scaremongering will commence, but at least the party will be able to control the narrative around it, and articulate arguments in principle for it, as Chris has done. If the SOEs are that popular it shouldn’t be too big a risk. If Labour rules out nationalisation then such scaremongering may still eventuate, but will be weak. If they continue to sit on the fence, they get the scaremongering, but not the opportunity to rebut it. Lose-lose.

That Labour would even consider holding the “maybe” position is astonishing, but it is New Zealand First policy after all. It reflects an awareness that New Zealand First is here to stay, will probably hold the balance of power at the 2014 election, and could make nationalisation a condition of its being part of any Labour-led coalition. The deep problem is that Labour, lacking a political agenda of its own, is letting others define it. Until the party leader is prepared to lead, Labour will keep losing.

L

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The left’s lose-lose SOE strategy

If it wasn’t already over on the night of 26 November 2011, the argument about the popular legitimacy of the government’s plan to partially privatise selected state-owned enterprises was finally put to bed when the pre-registration website for the Mighty River Power float fell over shortly after it went live. Whether this was a result of intentional underprovisioning to generate buzz or genuine organic demand doesn’t matter: within 24 hours 100,000 people had pre-registered interest in buying shares. That’s about one-third of the signatures opponents of the scheme took seven months to collect to force a citizens initiated referendum. The battle over whether these assets will be sold has been well and truly lost, and expending more political firepower on it is futile. The left needs to start organisaing around how they will be run.

This episode highlights two separate failures of strategy; one from the 2011 election, and one for 2014 and beyond.

Salience
Labour mistook asset sales for a high-salience issue and tried to run a campaign on it, when in reality too few cared enough for it to work. I have no reason to disbelieve the assertion that most people don’t want the assets sold. But the evidence of the election, the sluggish uptake of petition signatures, and the general lack of traction gained by the Labour party, for whom this has been the only coherent policy frame since the election, show that it is not an issue about which people are strongly exercised.

This strategy worked quite well for NZ First, and to a lesser extent the Greens, both of whom have the luxury of being able to appeal to a smaller base who care more strongly about a narrower range of issues. But it didn’t work for Labour, and the recognition that what works for parties of a relatively activist mindset doesn’t work for a broad-based, moderate mainstream party is long overdue. It failed. Time to move on.

Mandate
The notion that the government, having spent the entire year 2011 campaigning on it, lacks a mandate to proceed with asset sales is utter nonsense, as I wrote when the campaign kicked off. Labour and the Greens have decided the mood of low-level dissatisfaction with the plan that failed to win them the election will be sufficient to derail the policy now that it is on the move. They have decided that a citizen-initiated referendum, which worked so well for the opponents of the Section 59 repeal, is their best tool. Andrew Geddis wrote brilliantly about the problems with this in June last year, and here I essentially restate one of his arguments — that the Greens and Labour should be careful what they wish for. Both Labour and the Greens rely on the maxim that what’s right is not always popular. By insisting that policy be popular to be passed they risk painting themselves into a corner when next in government.

Plenty of bad policies are popular — three strikes, scaremongering about immigration, and most of the government’s welfare reforms are good examples. Despite what Josie Pagani might say, all are inimical to Labour and Green politics. How can they oppose these policies, if they’re so popular? Conversely, how can they insist on passing unpopular policies? Many of these are more central to the Greens than to Labour — the Greens are not a popular party; they poll just above 10%, so why are they embracing populism? Their policy agenda relies on making the electorate eat its greens, so to speak. Emissions control legislation, for example, will be deeply unpopular if it’s remotely effective. Likewise public transport and urban development policies, whose upfront costs are large and immediate but whose benefits are long-term and gradual, will be incredibly hard to pass if they insist on gaining the support of car-reliant suburban villa-owners.

Whether they “win” the referendum or not, at best Labour and the Greens will be vulnerable to legitimate accusations of hypocrisy whenever they propose policy that is merely somewhat popular, as opposed to being very popular. The will have demonstrated that consistency doesn’t really matter, and that could do deep harm to their long-term credibility. Worse yet, they could stand rigidly by their new-found populism and only propose policy that a clear majority of the electorate wants. Both strategies do more for NZ First than they do for Labour and the Greens.

The discussion has changed
The left has lost the argument about asset sales. Barring some sort of deus ex machina it’ll go ahead and will probably be a net vote winner for the government. But the apparent mismanagement of Solid Energy has given Labour and the Greens an opportunity to reframe the state-owned enterprise discussion, away from who owns these businesses to how they are run.

Both parties must be reluctant to do this, given that many of the bad decisions were made under the previous Labour government, and much of the lost money was poured into “green” tech like biofuels. But it is a necessary shift if the left is to own some of this debate. Regardless of what occurred before 2008, that things got so much worse under the current government, and that this was apparently a surprise to the shareholding minister is a serious failure of governance, and the public deserves answers about it. It’s a good opportunity for the left to highlight the point that there are good government managers and bad government managers, and that they will be the former, not the latter. The Greens have begun to do this by arguing that the government’s policies and directives to Solid Energy — including the lignite strategy, and changes to the Emissions Trading Scheme — effectively kneecapped the company.

Labour and the Greens should take the initiative and reframe this SOE debate now. If they persist with beating the dead horse of ownership, the risk is that the government will strengthen its case that the state simply isn’t fit to own businesses, paving the way for the rest of the SOEs to be sold as soon as they can secure a mandate to do so. The only alternative I can see for the opposition is a pledge to re-nationalise the sold assets. If they’re going to do that they need to get on with it — if they reveal this policy after the Mighty River Power float goes ahead the risk isn’t the argument that the state shouldn’t own businesses; it’s that Labour and the Greens are parties of big-government kleptocracy, trying to turn Aotearoa into the Venezuela of the South Pacific.

L