Photo: RNZ / Alexander Robertson
Tougher rules are needed to combat the risk of political corruption in New Zealand, according to the Helen Clark Foundation.
In a report for the public policy think-tank, set up by former prime minister Helen Clark, author Philippa Yasbek set out 26 recommendations to strengthen the country's anti-corruption measures.
They included penalties for those who failed to comply with the Official Information Act, capping a person's political donations to $30,000 per electoral cycle, mandatory reporting of all gifts offered to politicians, and a three-year wait before any former politician could become a lobbyist.
The report, released on Sunday morning, had the backing of former National government attorney-general Chris Finlayson KC.
"Corruption is an insidious cancer. It is not enough for democracies like ours to pay lip service to principles of transparency and steps which need to be taken against corruption," he said in a foreword to the report.
"New Zealand must critically examine these issues on a regular basis. That is why this article is so important and why it raises very serious questions about New Zealand's current commitment to transparency."
Yasbek said anti-corruption measures in New Zealand were largely governed by social norms, but laws were needed.
"Our political integrity and honesty has largely evolved from social norms over many decades. Politicians by and large knew the conduct that was expected of them by New Zealand society. Sadly, today, we're naïve to think that's enough.
"New Zealand needs stronger laws and regulations to improve trust and confidence in political decision-making."
The consequences could be dire to the country's democracy if changes were not made, she said.
"We've seen when people lose trust in political systems that creates space for authoritarian populist governments to come in and sweep away all kinds of democratic norms. So there are some quite serious risks if we don't get on top of this."
She said all political parties should review the report and back its recommendations - but corruption also posed a risk to the economy.
"A recent survey showed that two-thirds of New Zealanders believe that the economy is rigged in favour of the rich and powerful. The OECD has also warned us, in their economic reviews of New Zealand, that we need to improve our regulation of lobbying because our economy risks being distorted if we don't."
Her research outlined five areas most vulnerable to corrupt practices - political lobbying; political donations and elections funding; access to official information; foreign bribery; and beneficial ownership of corporate entities.
"Too frequently, policy changes in New Zealand occur in response to crises, which in turn are often a result of known weaknesses in our laws and institutions. Rather than doing too little, too late, we are recommending simple changes now that can reduce the risks of corruption in New Zealand and forestall future crises," Yasbek said.
The report concluded New Zealand was gradually slipping in international measures and a "she'll be right" attitude risked a more sudden decline.
"A lack of corruption is important for New Zealand's sense of identity as well as our competitive advantage. Perceptions of corruption around political party funding and lobbying are growing," the report said.
"If the political system is seen as rigged, if we fail to improve trust and confidence in political decision-making, we risk seeing the rise of populist leaders who are prepared to sweep away democratic norms. First gradually, and then suddenly."
The Official Information Act 1982 was important in creating greater transparency, but it was showing "signs of its age", the report said.
Meanwhile, the risks and pressures created by overseas corruption and money laundering were described as substantial.
"It is doubtful that New Zealand's current systems and processes are sufficient to counter them. The last significant reforms in this area were prompted by the revelations of the Panama Papers."
The report proposed improvements to New Zealand's measures to prevent foreign bribery and increase the transparency of beneficial ownership to mitigate those risks.
It also noted little was known about levels of corruption within local government.
"Of the Serious Fraud Office's current, publicly mentioned cases, about 12 percent involve local government. Corruption and transparency in local government is an important area for future work."
