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Cabinet Office

 

Cabinet Office Circulars

CO (06) 04

22 August 2006

Enquiries:
Heather Simpson, Prime Minister’s Office, ph 471 9835

Martin Bell, Cabinet Office, ph: 471 9740

Sue Sharp, Cabinet Office, ph 471 9737

 

All Ministers
All Chief Executives

Copies to:
Chief of Staff, Prime Minister’s Office
Principal Private Secretary, Prime Minister’s Office
All Senior Private Secretaries
All Private Secretaries
Chief Parliamentary Counsel

 

Coalition, Confidence and Supply and Support and Cooperation Agreements – Administrative Arrangements

Introduction

 

  1. This circular provides practical guidance for Ministers and departments in implementing the coalition, confidence and supply, and cooperation agreements entered into when the government was formed following the 2005 General Election. The guidance reflects the practical arrangements that have been developed and reminds Ministers’ offices and officials of their roles and responsibilities in relation to the arrangements. It is important to ensure that all those responsible for preparing Cabinet and committee papers know about the information in this circular.

  2. Ministers and Chief Executives will be familiar with the four agreements between the Labour Party and other parties – the coalition agreement with the Progressive Party, confidence and supply agreements with the New Zealand First Party and the United Future Party, and the cooperation agreement with the Green Party. The four agreements, and the Cabinet Manual, were endorsed by Cabinet on 31 October 2005 as the basis on which the government would operate. Copies of the agreements are available at http://www.beehive.govt.nz/ViewDocument.aspx?DocumentID=24256.

Summary of Key Points

  1. The key points are:

    3.1
    Careful planning, good faith and a "no surprises" approach are key to making the arrangements work effectively. All four agreements are explicit on this point.

    3.2
    All Ministers and chief executives need to be familiar with the four agreements, and ensure that they have processes in place to implement them.

    3.3
    Ministers are responsible for ensuring that the parties to the coalition, confidence and supply and co-operation agreements are consulted and included as set out in the agreements. All proposed political consultation should be discussed with the Prime Minister’s office before it is undertaken.

    3.4
    Managing the consultation processes and other aspects of the relationships may take some time. Ministers and officials should factor that into their planning on each issue.

Arrangements with the Progressives

  1. Labour and the Progressives, under the terms of the coalition agreement, are to operate in government on a good faith and no surprises basis, reflecting appropriate notice and consultation on important matters including the ongoing development of policy. The working arrangements between them are to continue to operate as they did during the previous parliamentary term.

  2. The agreement with the Progressives provides for processes for ensuring appropriate recognition of the policy achievements of the Progressives, and for the expression of different views publicly and in Parliament.

Arrangements with New Zealand First and United Future

Collective responsibility
  1. The agreements with New Zealand First and United Future provide that:

    6.1
    collective responsibility applies in respect of the Rt Hon Winston Peters’ and Hon Peter Dunne’s portfolio areas; and

    6.2
    the parties support all areas that are matters of confidence and supply.

    In other areas, "agree to disagree" provisions apply as necessary.

  2. Accordingly, Mr Peters’ and Mr Dunne’s participation in the government is expressly limited to certain specified or agreed areas. When Mr Peters and Mr Dunne speak about the issues within their portfolios, they speak for the government and as part of the government. When they speak about matters outside their portfolios, however, they may speak as political party leaders and MPs rather than as Ministers, and do not necessarily represent the government position.

  3. When Mr Peters or Mr Dunne represent the government internationally, they speak for the government on all issues discussed with them in their official capacity as Ministers.

  4. The "agree to disagree" provisions are expected to be exercised consistently with the good faith and no surprises provisions in the agreements.

Consultation
  1. The agreements with New Zealand First and United Future provide the basis on which consultation occurs:

    10.1
    the agreement with New Zealand First provides for consultation on issues including:

    10.1.1
    the broad outline of the legislation programme;

    10.1.2
    key legislative measures on which New Zealand First support is sought; and

    10.1.3
    broad budget parameters.

    10.2
    the agreement with United Future provides for consultation on issues including

    10.2.1
    the broad outline of the legislation programme;

    10.2.2
    key legislative measures;

    10.2.3
    major policy issues; and

    10.2.4
    broad budget parameters.

    10.3
    in addition, the agreements specify certain areas in which New Zealand First and United Future are to be involved at the early policy development stage (i.e. before papers are submitted to Cabinet committees).

  2. It is the responsibility of the lead portfolio Minister to ensure that timely consultation occurs. All proposed political consultation should be managed by the Minister’s office, and discussed with the Prime Minister’s office before it is undertaken.

  3. Both agreements state that the relationships between the parties are based on good faith and no surprises. It is the responsibility of the portfolio Minister to discuss with the Prime Minister’s office how the confidence and supply parties should be briefed, before significant announcements are made.

Attendance at Cabinet committees
  1. Mr Peters and Mr Dunne attend Cabinet committees for papers in their portfolios or for any item in which they may have a portfolio interest and where they wish to participate in the discussion. The Cabinet Office liaises with the committee chair, the Prime Minister’s office and relevant chiefs of staff about the arrangements.

  2. In the absence of Mr Peters, the Prime Minister will ensure that foreign affairs or racing considerations are fully taken into account at Cabinet and Cabinet committee meetings. In the absence of Mr Dunne, the Minister of Finance similarly ensures that revenue considerations are taken into account.

Other Cabinet/Cabinet committee papers in which Mr Peters or Mr Dunne have a portfolio interest
  1. In relation to other Ministers’ papers for Cabinet/committees in which Mr Peters or Mr Dunne have a portfolio interest:

    15.1
    for normal government business the usual consultation requirements for departments and Ministers operate in respect of Mr Peters’ and Mr Dunne’s portfolio roles;

    15.2
    Mr Peters and Mr Dunne generally receive copies of Cabinet/Cabinet committee papers and minutes from other portfolios if they have a portfolio interest in the item;

    15.3
    on some more significant or sensitive issues, in which Mr Peters and Mr Dunne have a portfolio interest, consultation is undertaken in accordance with the agreements with New Zealand First and United Future. The provision of Cabinet/Cabinet committee papers in these circumstances is handled on a case by case basis.

    In cases of doubt, Ministers should liaise with the Prime Minister’s office. The Cabinet Office is also available for advice to Ministers’ offices and departments.

Appointments
  1. Where Mr Peters or Mr Dunne are responsible for significant appointments, they consult the Prime Minister and other Ministers with a portfolio interest as appropriate, before submitting the appointment to Cabinet Appointments and Honours Committee (APH) in the usual way.

Arrangements with the Green Party

  1. The government works co-operatively with the Green Party on a range of issues. The government is to consult the Green Party on issues including:

    17.1
    the broad outline of the legislation programme;

    17.2
    key legislative measures;

    17.3
    major policy issues; and

    17.4
    broad budget parameters.

  2. Other co-operation is to include:

    18.1
    access to relevant Ministers by designated Green Party MPs;

    18.2
    regular meetings between the Prime Minister and the Green Party leadership;

    18.3
    advance notification to the other party of significant announcements by either the government or the Green Party;

    18.4
    briefings by the government on significant issues before any public announcement;

    18.5
    input into the budget process and inclusion of Green Party budget initiatives in each of the three years.

Policy development
  1. The co-operation agreement with the Green Party also provides that the involvement of the Green Party in the programme of policy development is to occur at various levels:

    19.1
    Level 1 – issues concerning which the Green Party spokesperson is to be fully involved in the detailed development and implementation of policy proposals

    Appendix 1 of the co-operation agreement with the Green Party, available at http://www.beehive.govt.nz/Documents/Files/Green.pdf, sets out the detailed arrangements that the parties have agreed to regarding level 1 issues.

    Appendix 1 provides that the Green Party spokesperson on a level 1 issue are to have direct access to officials and are to be able to request reports from them. Appendix 1 also makes it clear that the relevant Minister is to set out in writing the scope of the agreed area of involvement and the arrangements for interaction with officials working within the relevant portfolio area. Ministers affected should liaise with the Prime Minister’s Office and the departmental chief executive about the written arrangements, before they are finalised.

    19.2
    Level 2 – issues concerning which the Green Party is to be involved in the development of policy and legislation

    Appendix 2 of the co-operation agreement with the Green Party sets out the detailed arrangements that the parties have agreed to regarding level 2 issues.

    The Green Party may seek access to officials on level 2 issues. Such contact must be authorised by the Minister.

    19.3
    Level 3 – issues with regard to which the Green Party is to be consulted on the broad direction of policy, and the development of related legislation, with the aim of achieving support for legislative measures and/or policy proposals

    Ministers are responsible for ensuring that the Green Party is consulted on level 3 issues. Formal consultation is to be managed between the Prime Minister’s Office and the Green leadership.

  2. All Ministers and chief executives with level 1 or 2 issues in their areas of responsibility should be familiar with the arrangements and must ensure that they are followed.

  3. All correspondence between the Green Party and departmental officials should be copied to the relevant Minister. Officials should provide the Minister with briefings about the development of the work regarding level 1 or 2 issues on a regular basis, or as required by the Minister.

  4. The State Services Commissioner has been involved in the establishment of the working relationships between departments and the Green Party. Chief executives involved in these arrangements should direct any questions to the State Services Commissioner or the Secretary of the Cabinet.

Forward programme for policy development
  1. The co-operation agreement provides that the Green Party is to be briefed every six months on the forward programme for policy development in environment, energy, sustainable economics, transport, conservation, health and social development, in order that specific areas for joint work can be agreed upon from time to time. The Prime Minister’s office co-ordinates this briefing.

  2. Categorisation of issues at particular levels is to occur by agreement between the Prime Minister and the Green leadership.

Attendance at Cabinet committees
  1. Level 1 issues may be the subject of a submission to a Cabinet committee. In such cases, the portfolio Minister submits the paper. The relevant Green Party spokesperson is invited to participate in the Cabinet committee meeting. The Cabinet Office liaises with the Prime Minister’s Office, the committee chair and the spokesperson’s office about the arrangements.

Ministerial responsibility
  1. Although the co-operation agreement with the Green Party envisages a proactive and significant policy role for the relevant Green Party spokesperson, a Minister retains formal responsibility for all areas of government policy. Where formal ministerial functions are required to be exercised in relation to an issue in which the Green Party is involved (for example, answering parliamentary questions, interactions with select committees, or answering Official Information Act requests) the relevant Minister is to carry out those functions, in consultation with the Green Party spokesperson on the issue.

Noting consultation in Cabinet papers

  1. In submitting papers for Cabinet and committees, Ministers should, in addition to indicating consultation with the government caucuses, draw attention to those issues on which consultation with New Zealand First, the United Future Party, or the Green Party or other parties has taken place or will be needed. These are likely to include:

    • any papers about, or leading to, primary legislation, ie. to bills or to amendments to bills;

    • papers on issues relevant to the core issues identified in any of the agreements.

  2. The information should be included in the CAB 100 consultation form submitted with each paper. Where appropriate the Cabinet paper should include further detail. The Minister presenting the paper at the Cabinet committee should be fully informed on this aspect. The relevant Cabinet committee considering the paper will note the information on the possible need for consultation and will discuss the timing and nature of that consultation. A revised CAB 100 form [CAB100/2006/1] has recently been issued and is available in PDF or Word format at http://www.dpmc.govtnz/cabinet/forms/index.html, or https://psi.govt.nz/cabinet/library/forms/forms.aspx.

Legislation

  1. Departments should be mindful that advancing legislation (including legislation currently due for first reading or currently before the House) is a matter for Ministers to discuss with other parties. Support for legislation is negotiated on a case by case basis. No assumptions should therefore be made on the timing of the passage of such legislation. Where departments are aware that timing is critical in relation to particular bills (eg for fiscal reasons) they should advise their Minister so that the matter can be raised with the Leader of the House as appropriate.

Overall Management of Consultation

  1. In the interests of maintaining an overview of consultation being undertaken, the overall management of consultation with support and co-operation parties is the responsibility of the Prime Minister, supported by her Chief of Staff, Heather Simpson. Ministers’ offices should keep the Prime Minister’s office advised of proposals for discussion with the confidence and supply and support parties.

Role of Departments

  1. Departments are not expected to play any direct part in the consultation between the coalition partners or with New Zealand First, United Future or the Green Party. That is a matter to be determined by Ministers. Contact between departmental officials, and other Ministers, caucus or other parliamentary parties should take place only with the prior approval of the relevant Minister.

  2. Departments may be called on to support Ministers in their consultation with the support and co-operation parties, caucuses and other parliamentary parties. Officials should obtain clear instructions from their Minister on the nature of the contact (i.e. whether they will be supporting a briefing, or a process of consultation or negotiation by Ministers).

  3. Departments may on occasion be asked by their Minister to meet representatives of other parliamentary parties without the Minister present. On such occasions all those at the meeting should clearly understand that officials are able to provide only a briefing on the issues. As a matter of practice, departments are advised to keep a record of the substance of any such meeting and consider providing that record to all those who attended the meeting as well as to the Minister. A representative of the Minister’s office should attend any such meetings.

  4. Departments involved in work on issues identified as being priorities for the support and co-operation parties should bear in mind the likelihood that consultation may be time consuming and go through a number of phases. The timing allowed for preparing and submitting papers needing government decisions on these issues needs to allow for that.

  5. Cabinet decisions that are still subject to the outcome of consultation with the support and co-operation parties, or with the government caucuses or other parliamentary parties, should be implemented only when the consultation process is complete. In planning the implementation of proposals, departments need to allow sufficient time for this consultation to take place.

  6. Arrangements should be in place between Ministers’ offices and the departments (or agencies) for which they are responsible, to ensure that departments are informed when the consultation process has been completed and action can be taken to implement the decisions.

Further Advice

  1. Ministers’ offices or departments concerned about the application of the guidance in this circular to particular papers or issues should discuss them with the Prime Minister’s Chief of Staff, Heather Simpson, or with the Cabinet Office (Martin Bell or Sue Sharp).

Diane Morcom
Secretary of the Cabinet

 

 

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