Attack on Peters seen as against spirit of MMP

By Audrey Young and NZPA

The attack by Prime Minister Jenny Shipley on New Zealand First's decision to stay out of government and vote issue by issue is defeating the spirit of MMP, says political scientist Barry Gustafson.

And Mr Peters said talk of his position as "holding the country to ransom" or forcing another election was political and constitutional drivel.

Professor Gustafson, a former National candidate, said yesterday that Mrs Shipley's reaction had shown the "inability of some politicians to move beyond an elected dictatorship which was the first-past-the-post system."

"Overseas you don't expect to be able to have a majority in Parliament that means you win every vote irrespective of the merit of it."

Mr Peters said on Sunday that his party would sit on the cross benches and support the party with the most votes on supply, but not necessarily confidence.

He has already said he would oppose National's tax cuts and Labour's tax rises.

Mrs Shipley said yesterday that it was "not proper that we have a party which says it will simply not entertain assisting either of the major groups unless they kowtow to them."

She said tax was a defining issue.

Mrs Shipley had said earlier that in the interests of stability National would want an assurance of confidence and supply for its policies and would test it early in Parliament, risking defeat and a possible new election.

The response of Labour leader Helen Clark has been much more low key: "I don't think we are anywhere near that situation," she said yesterday.

"I don't assume Mr Peters wants to be blamed for bringing another election on the country. I think we are going to get a clear mandate for change and the games he is playing are really a bit irrelevant."

But unlike Mrs Shipley, it is clear that Helen Clark could contemplate leading a minority government without insisting on Mr Peters' agreement on some key planks of Labour's programme, such as a tax increase on income over $60,000.

"We will still put them forward; he has indicated he would not support them. If he held the balance they wouldn't proceed.

"That, of course, would have an impact on our ability to rebuild health, education and a proper pension and economic development, and he should know the consequences of that," said Helen Clark.

Mr Peters told National Radio that he did not regard tax changes as automatically matters of supply.

"Matters of taxation are for Parliament to decide," he said.

"If a party turns up with a budget to keep the country going and it is a sound budget, of course you would have to vote supply.

"A tax change is not a supply issue ... a budget is a supply issue."