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Welcome to Inside Politics. Christopher Luxon’s meeting tomorrow with Xi Jinping, the President of China, was going to be important enough, given that the world could be on the precipice of deeper conflict in the Middle East involving America’s ally Israel and China’s ally Iran.
But New Zealand’s deepening diplomatic crisis with the Cook Islands over the Cooks’ relationship with China has elevated its importance, and will add even more spice to an important meeting.
The unprecedented announcement today by Foreign Minister Winston Peters that New Zealand will withhold funding from the realm country until the Cook Islands Government “takes concrete steps to repair the relationship and restore trust” means there has been no meaningful repair in the relationship. In the past three years, that funding has amounted to $194 million.
Relations broke down in April after Cooks Prime Minister Mark Brown signed a comprehensive strategic partnership agreement with China without consulting New Zealand, as required under its governing arrangement.
It was hoped – clearly forlornly – to have something sorted out by August 4 when the Cooks mark its 60th anniversary of self-government in free association with New Zealand. Peters and Brown met in Nice last week at the UN Oceans conference, but only fleetingly.
Peters raised the Cook Islands issue with China’s Foreign Minister Wang Yi in Beijing in February, questioning what sort of advice China had relied upon when Wang repeatedly referred to New Zealand as having “third-party” status, rather than having a constitutional status in governing arrangements. Whether it was genuine ignorance on the part of China or feigned ignorance will never be proven. But essentially, this is a crisis between New Zealand and the Cooks, not New Zealand and China.
The timing of Peters’ announcement is curious given Luxon’s visit. Peters’ office can claim he made the statement in response to queries from the Cook Islands News, which has the story splashed across its front page today. The decision to pause funding was conveyed to Mark Brown on June 4, over two weeks ago. And Luxon has been kept informed of developments.
Meanwhile, the world waits for US President Donald Trump to decide whether to send in B-2 stealth bombers to destroy Iranian nuclear facilities in a mountainside bunker. Were it a single strike, guaranteed not to escalate the war, it may be a quick decision. But it is not. He has to contend with domestic disputes over getting involved in another Middle East conflict, not to mention the possibility of escalation and disruption to global trade if the Strait of Hormuz is closed. But the signals coming out of Trump’s press conference this morning suggest that it will happen.
China’s position, unlike its initial equivocation when Russia invaded Ukraine, has been unequivocal in its condemnation of Israel’s attack on Iran.
Luxon is heading to a Nato summit in the Netherlands next Tuesday and Wednesday – which Trump is also scheduled to attend – and will be able to give a fresh perspective on China’s take. Herald political editor Thomas Coughlan is in Shanghai with Luxon and will travel with him to Beijing later today to cover the big meetings.
We know the Prime Minister likes to say he has the A-team on his business delegations when he travels abroad, so who is with him in China at present?
Delegates include Dame Therese Walsh, Air NZ chairwoman (and delegation leader); Greg Foran, Air NZ chief executive; David Bortolussi, The a2 Milk Company chief executive; Willie Wiese, Alliance Group chief executive; Carrie Hurihanganui, Auckland Airport chief executive; Sarah Ottrey, Christchurch International Airport chief executive; Rhy Griffiths, Deer Industry NZ chief executive; Jason Judkins, Fiordland Lobster Company chief executive; Miles Hurrell, Fonterra chief executive; Bernard Duignan, Goodman Fielder chief executive; Simon Limmer, Indevin Group chief executive; Nathan Guy, Meat Industry Association chairman; Mahara Inglis, MitoQ chief executive; Rachel Taulelei, Moana NZ Sealord chairwoman; Todd Moyle, Ngāi Tahu Holdings chief executive; John McKinnon, NZ China Council chairman; Fran O’Sullivan, NZ INC managing director; Dame Pania Tyson Nathan, NZ Māori Tourism chief executive; Gus Gilmore, Te Pūkenga - NZIST chief executive; Mark Piper, Plant and Food Research chief executive; Grant McBeath, Rockit Global chief executive; Andy Borland, Scales Corporation managing director; Dan Boulton, Silver Fern Farms chief executive; Louie Li, The Beauty Lab Collective managing director; Mark Rushworth, Up Education chief executive; Nic Smith, Victoria University of Wellington Vice-Chancellor; Zhiqiang Li, Westland Dairy executive director; and Nathan Flowerday, Zespri chairman.
Talk about needlessly creating problems. Treaty Negotiations Minister Paul Goldsmith revealed this week that a sovereignty clause in the draft settlement with Te Whānui-a-Apanui was now unacceptable to the Crown. It is an agree-to-disagree clause about whether the tribe ceded sovereignty. Former minister (and Wellington mayoral candidate) Andrew Little agreed to it. Previous settlements have been silent on it.
As Julia Gabel reports, the deed says Te Whānau-ā-Apanui consider they are a sovereign nation that never ceded sovereignty to the Crown and retain that sovereignty today, while the Crown considers its sovereignty today as incontrovertible.
Quite why the previous minister would include such a contentious new element in settlements is completely inconsistent and unnecessary, and Goldsmith was right to reject it. It is the sort of clause that should be in all agreements or none, and preferably none. Settlements should remain silent.
• Paul Goldsmith, the Arts, Culture and Heritage Minister, decided to read Jacinda Ardern’s memoir in a personal way by having her read it to him as an audiobook through his Spotify account. He says he had just got to the part where she was elected to Parliament when he was told he had used up his monthly sub allowance. And while he was interested in her work, it was not quite enough for him to bust his sub for. So he’ll continue listening in a few weeks. The book, A Different Kind of Power, has made The New York Times’ Best Sellers list this week, at No 3 on the non-fiction list (combined print and e-book).
• You sometimes see some oddly dressed people around Parliament. The oddest last night was the MP for Hamilton East, Ryan Hamilton (yes, his real name), who is, not surprisingly, a massive Chiefs supporter. He has a bet going with Christchurch-based colleague Hamish Campbell: if the Chiefs win the Super Rugby title on Saturday, Campbell has to wear the Chiefs scarf to caucus on Tuesday, and similarly for Hamilton if the Crusaders win.
“We leave it to the small cabal of ill-informed critics of our foreign policy approach to shout impotently at clouds. They are good at that” – Foreign Minister Winston Peters on Aukus critics in a speech at the NZ Institute of International Affairs.
Who replaced David Parker as Labour’s foreign affairs spokesperson? (Answer below.)
Goes to Labour’s Deborah Russell,who said “for f***’s sake”not once under her breath, but a second time when Act leader David Seymour asked her what she had said. Still, as we know from recent utterances, it could have been worse.
Goes to Carolyn Tremain, the outgoing head of the Ministry of Business, Innovation and Employment (MBIE), for being on top of her game at Parliament’s Scrutiny Week, appearing alongside at least six ministers for at least nine different portfolios. Nominated by the Herald and Newstalk ZB Press Gallery reporters, who were mightily impressed with her.
Cook Islands row: New Zealand is pausing its funding to the Cook Islands in the wake of a controversial deal signed between the Pacific nation and China.
China trip: China’s largest travel company put on a show with a message during Prime Minister Christopher Luxon’s visit.
Treaty settlements: Treaty Negotiations Minister Paul Goldsmith says the Government will not agree to Treaty settlements that dispute whether the Crown is sovereign.
Treaty settlements: Ngāti Hine leader Pita Tipene is ruling out a settlement under this Government after remarks made by Treaty Negotiations Minister Paul Goldsmith.
ANALYSIS – pay equity reforms: How robust are the comparisons between male- and female-dominated jobs? Audrey Young looks at the numbers behind the pay equity debate.
Suicide prevention: Decreasing a “stubbornly high” suicide rate is the central motivation behind the Government’s just-released national suicide prevention plan.
KiwiSaver costs: Finance Minister Nicola Willis says the Green Party’s claim that KiwiSaver changes could cost the Government up to $714 million is “wrong”.
MP expletives: Labour MP Deborah Russell has apologised for swearing at acting Prime Minister David Seymour at the start of a tetchy select committee hearing.
Youth bootcamps: Oranga Tamariki leaders are standing by the Government’s bootcamp pilot, despite the Children’s Minister admitting the tragic death of one of the programme participants derailed some of his counterparts.
Govt v councils: Housing and RMA Reform Minister Chris Bishop has announced Cabinet will insert a new regulation power in the Resource Management Act allowing central government to override council decisions.
PM’s poll win: Prime Minister Christopher Luxon has topped an Australian poll of world leaders ranked on their confidence in handling foreign affairs.
China trip: “Huge amounts of opportunities for New Zealand”: Christopher Luxon talks about what he hopes to achieve during his trip to China.
Health cuts: Minister Simeon Brown has attacked Treasury officials over their analysis of his Health Delivery Plan.
Quiz answer: Peeni Henare, former Defence Minister.
For more political news and views, listen to On the Tiles, the Herald‘s politics podcast.
The Resources Minister came to the select committee sporting a Make NZ Great Again hat.