AGREEN NEW DEAL

Late last night an overwhelming majority off GreenGreen Party members voted to join Labour and be part of the next Government in a pact that will see ee Green Party co-leaders James Shaw and Marama arama Davidson become ministers outside of Cabinet net while allowing the party to still vocally oppose ose the Government on other matters.

Atake-it-or-leave-it ‘‘co-operation agreement’’ accepted by the Green Party membership last night shows the new Government for what it will be: a majority Labour Government with a Green tinge.

The Green Party has been shut out of any hard economic portfolios or bigspending ministries.

The Greens were offered, and accepted, two ministerial positions as a part of the Government: James Shaw as Minister of Climate Change and Associate Minister for the Environment (Biodiversity) and Marama Davidson will be Minister for the Prevention of Family and Sexual Violence and Associate Minister of Housing (Homelessness).

The parties will co-operate in areas of interest.

Despite its increased vote from 2017, the party has lost two ministers – Eugenie Sage and Julie Anne Genter. It has also been effectively told to get back into its Green box and stick to the environment or a very uncontroversial issue: after all, who is not against family and sexual violence?

It is a severe diminution of the Greens’ role in the Government from the previous term. Jacinda Ardern was keen to point out in announcing the deal yesterday that this ‘‘is not 2017’’. In other words, Labour holds all the cards. The prime minister stressed Labour’s right to govern alone.

‘‘On election night I said I want to govern for all New Zealanders and to reach as wide a consensus on key issues as possible,’’ Ardern said in the Beehive yesterday evening.

‘‘This agreement does that, while honouring the mandate provided to Labour to form a majority Government in our own right.’’

Considering the fact that Labour was not obligated to give the Greens anything, it is a good result for the party.

Crucially, the Greens will not have anyone in an associate finance portfolio, after Shaw failed to regain the job he held in the previous Government. This is important: in coalitions or confidence and supply deals, as traditionally understood, the minor party gets an associate finance minister so that there is direct representation across the budget process. The Greens do not get this.

In fact, it is telling that Labour has not offered the Greens any traditional economic portfolios whatsoever. This is a signal to voters – and a statement of reality – that the Greens won’t get close to fiscal policy.

Having said that, given the central and increasing economic importance of climate policy across many other areas of policy, there is an argument that the technocratic Shaw could have more influence than obvious at first blush. A strategic thinker, Shaw will squirrel down into the design of the Zero Carbon Act, Emissions Trading Scheme, and Climate Related Financial Disclosures rules and look to bed down a climatefriendly regulatory environment.

The Greens would have been mad not to take this deal. To refuse would have made the party look churlish and unconstructive. It appears their ministers will only have to keep their own counsel in relationship to their ministries, or even narrower subdesignations. So presumably Davidson will be able to criticise the Government on housing policy, except where it affects homelessness, her area.

That gives the Greens plenty of scope to whack the Government from the left where the party deems necessary.

For Labour, this is all pretty simple: provided the Green ministers perform OK, they will be fine and there is no cost to sacking them should the need arise.

The reason for the deal existing at all was, it seems, as the prime minister said yesterday, that the principles of MMP should not be ignored. This is presumably some nod to the woolly idea that co-operation in Parliament is somehow in New Zealand’s DNA rather than dictated by numbers. More it is about brand Ardern and the need to look like Labour is collaborative and isn’t crowing.

For the Greens there were essentially two questions: one a broader question of political strategy and one a narrower question of party management. The Greens are price-takers in this deal, but the mere fact of being ministers means being seen by the broader public as responsible and in charge.

The other one is party management. As time goes on and it is clear that the Greens aren’t really in the Government, despite having ministers, the rest of the party may begin to get a bit restless.

Keeping it united and together over three years will be important for the Greens.