BY MICHAEL TUCKER
AUCKLAND, New Zealand - After two months of behind doors negotiations following October 12 elections to parliament, a government was formed in this country December 10. A coalition between the National Party, the main capitalist party, and New Zealand First, led by rightist politician Winston Peters, the new government registers a further shift to the right in capitalist politics.

National Party leader James Bolger continues in office as prime minister. Winston Peters is deputy prime minister and holds the newly-created senior financial post of treasurer. New Zealand First fills another four of the 20 cabinet positions - increasing to eight over the next two years.

National holds 44 seats in the new 120-seat parliament. The social democratic Labour Party holds 37, and New Zealand First 17. The election illustrated the accelerating disintegration of the system of two-party rule, which for the past six decades saw governments formed by either the National or Labour Party.

Policies announced as part of the coalition agreement indicate the rightward course of the new administration of Bolger and Peters. The policies signal new attacks on the social wage, tougher "law and order" measures, and a sharper nationalism. These include:

A "compulsory savings" scheme to replace the existing retirement pension known as superannuation. It will be decided by a referendum to be held before Sept. 30, 1997. Tax cuts promised by the previous National Party administration have been deferred.

The proposed "compulsory savings" scheme would impose a tax of up to 8 percent on wages. If adopted, it will mark a major new inroad against the social security entitlement that was won by workers as a universal right in the 1930s and expanded in the 1970s. This follows previous moves by both the National Party and Labour Party that reduced superannuation payments and raised the retirement age from 60 to 65.

A "work for the dole" workfare scheme that will force those on unemployment benefits to work or train up to two days a week or lose their entitlements. This will include programs to be run by the military. The unemployment benefit will be replaced by a "community wage." Other benefits, such as the Domestic Purposes Benefit paid to single parents, will also be reviewed.

New immigrants will be subject to a four-year "probation." A conference will be held to formulate a "population policy."

An increase in the police force by 500 and granting the cops greater powers to use electronic surveillance to target suspected "criminals" and "gangs."

The introduction of forced labor 48 hours a week for prisoners. Income will be paid to the state or to victims as compensation.

A review of the few remaining protective labor laws to bring these in line with the anti-worker Employment Contracts Act introduced by the National Party government in 1991.

A clampdown on overseas patients receiving public hospital care in New Zealand. This primarily affects patients from Pacific Island countries, principally Western Samoa, Tonga, and Fiji. Pacific Island countries lack the facilities to provide many advanced medical services, such as heart surgery and cancer treatments.

The health system will continue to be required to run "in a business-like" manner.

A continuation of "bulk funding" of schools, the course implemented by previous Labour Party and National Party governments to partially privatize state schools, leading to underfunding and teacher shortages in many schools in working class and rural areas.

Peters plays major role in new gov't
In his first public announcement as treasurer December 19, Winston Peters ordered a review of all government spending to identify potential cuts. "Peters sets tone for austere budget," the New Zealand Herald headlined the report. The formation of the National-New Zealand First coalition government was largely welcomed by business leaders and editorial writers. The "outcome for the country is far and away preferable," declared the National Business Review. "Business breathes sigh of relief," reported the New Zealand Herald in its business section. The Herald's editorial writers, however, long a target of demagogic attacks by Peters, wrote of a "lamentable coalition" and a "wretched coalition agreement

"Mr. Peters will have to be watched closely," they cautioned. Pointing to the conservative composition of the new cabinet and to the senior posts acquired within it by Peters, the Herald noted, "Every day it looks more like his Government."

Peters' role as a Bonapartist figure in politics was illustrated by his actions following the elections. For two months Peters was the focus of attention as he held secret talks in turn with the National Party and the Labour Party in what he described as a "bidding war" for the support of New Zealand First to form a government.

"And, like a true virtuoso, he has played both National and Labour right through the negotiation, keeping both engaged, and each believing that it will ultimately be the chosen partner," noted veteran political commentator Ian Templeton in the December 1, Star Sunday Times.

Much of the negotiation was over what posts Peters and his party would obtain in the new government. "It seems like both parties are prepared to sell their souls" to become the government, remarked New Zealand First member of parliament Tutekawa Wyllie.

When a conflict arose between National and Labour over who should represent New Zealand at the Asia Pacific Economic Cooperation (APEC) conference in the Philippines in November, it was Peters, not the National government, who declared that Prime Minister James Bolger would be the official delegate. It was Peters, not Bolger, who addressed the nation December 10 to announce the outcome of negotiations and the composition and policies of the new coalition government.

Demagogy of New Zealand First leader
Peters spent most of his adult life as an active member of the National Party before forming New Zealand First in 1993. He was first elected to parliament on the National ticket in 1978 and soon gained notoriety for his anticommunist statements and other reactionary views. In particular, he gained a following among conservative middle class layers for his outspoken attacks on Maori rights activists. Peters himself is Maori.

Except for three years, Peters has remained a member of parliament since. When Bolger's National Party government took office in 1990, Peters joined the Cabinet as Minister of Maori Affairs. His grandstanding and demagogy soon led to conflict with Bolger and the following year he was dumped from Cabinet. A year later, in 1992, he was expelled from National's parliamentary Caucus.

Peters resigned and was reelected to parliament as an independent in April 1993. He then launched New Zealand First to contest the 1993 elections. The new party was marked by its sharp nationalism.

Over the past several years, Peters has become identified with his denunciations of the sale of land and assets to "rich corporations" and "foreign owners" and for his attacks on corruption and conspiracies at the top of business and government.

In 1996 he sparked widespread political controversy with remarks targeting "wealthy Asians," attacking them as investors taking over the country and scapegoating Asian and other immigrants as the cause of the social crisis. Peters calls for cleaning up "crime" through tougher "law and order" policies and ending "welfare dependency."

In the recent election campaign Peters focused his fire against the National Party government and its leadership, proclaiming New Zealand First as the only party that could get rid of National. Following the election, as he sought to prepare his supporters for the coalition deal he was about to strike, Peters demagogically proclaimed that his campaign had succeeded in ousting the National government. Most commentators had expected Peters to go into coalition with the Labour Party, with Labour leader Helen Clark as prime minister.

The National Party treasurer, Michael Cox, resigned his post following the coalition deal, citing Peters's attacks on prominent business figures. "I have led fundraising teams that have collected several millions of dollars in donations from both individuals and corporates," he said. "Many of these entities have been abused and maligned, often behind the skirts of parliamentary privilege, by Mr. Winston Peters." Cox said he could not remain "and look these people in the eye."

At the center of Peters "antibusiness" image has been his campaign, beginning in the early 1990s, to uncover and scandalize alleged tax evasion by a number of prominent New Zealand companies, some state owned. These companies used tax haven deals channeled through the Cook Islands.

Documents presented by Peters in parliament in a winebox, forced the National government to set up a commission of inquiry in 1994, commonly referred to as the Winebox Inquiry. Its hearings are scheduled to conclude in the first half of 1997. Peters' campaign, and the subsequent Winebox hearings, have been a prominent feature of national politics. As part of his coalition deal with National, Peters has secured backing for the establishment of an "anticorruption commission" to further investigate companies, institutions, and government departments accused of corruption.

Michael Tucker is a member of the United Food, Beverage & General Workers Union in Auckland, New Zealand.  
 
 
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