1. INTRODUCTION AND SUMMARY

1.1 This submission on the Term of Parliament (Enabling 4-year Term) Legislation Amendment Bill is made by The New Zealand Initiative (the Initiative), a Wellington-based think tank supported primarily by major New Zealand businesses. In combination, our members employ more than 150,000 people.

1.2 The Initiative undertakes research that contributes to developing sound public policies in New Zealand. We advocate for the creation of a competitive, open and dynamic economy and a free, prosperous, fair and cohesive society.

1.3 The Initiative's members span the breadth of the New Zealand economy; good governance and effective policymaking are important for economic growth and prosperity. The views expressed in this submission are those of the author rather than the New Zealand Initiative's members.

1.4 The Term of Parliament (Enabling 4-year Term) Legislation Amendment Bill seeks to address the unusually short three-year parliamentary term, which is rare by international standards and creates challenges for implementing substantive policy changes.

1.5 The arguments for and against extending the parliamentary term essentially come down to balancing government effectiveness (which favours a longer term) with accountability (which favours a shorter term). The Bill attempts to address accountability concerns through changes to the composition of select committees. Unfortunately, that approach is unnecessarily complex and would cause confusion and uncertainty. It should be simplified to achieve the same objectives more effectively.

1.6 The New Zealand Initiative submits that the Bill should proceed, subject to the following recommendations:

• A referendum on the change to a four-year term is to be held at the 2026 election;
• Remove the proportionality requirement from the Bill to focus it solely on establishing a four-year term;
• Address select committee composition through amendments to Standing Orders to take effect with the implementation of a four-year term;
• Provide for a four-year term for local government as well as central government;
• The first four-year parliamentary term commences after the 2029 general election; and
• The first four-year term for local authorities commences after the 2031 local elections.