Max Rashbrooke: How and why NZ should 'clean big money out' of political donations

<p>New Zealand ought to change its political party funding system so it encourages politicians to connect with as many ordinary New Zealanders as possible, Max Rashbrooke argues, whilst noting it's not in political parties' interests to do so meaning such a change probably won't happen anytime soon.</p><p>Rashbrooke, a senior research fellow in the school of government at Victoria University, spoke about political donations in a new episode of interest.co.nz's <a href="https://www.interest.co.nz/of-interest-podcasts" target="_blank"><i><strong>Of Interest podcast</strong></i></a>as the October 14 election looms<i><strong>. </strong></i>Rashbrooke, and his Victoria University colleague Lisa Marriott, last year published a report on political party funding in NZ called <a href="https://www.interest.co.nz/sites/default/files/2023-09/money-for-something-report.pdf" target="_blank"><i><strong>Money for Something</strong></i></a><i><strong>.</strong></i></p><p>Rashbrooke says work on the report gave the authors "a glimpse into quite a murky world" of access and influence. One where party leaders, including prime ministers, fund raisers and big money donors, are in each other's company through a socialisation network featuring big fundraising dinners and other encounters.</p><p>This enormous and informal access to party leaders is something the rest of us wouldn't hope to enjoy, he says.</p><p>"So there's an immense socialisation and during that process I think it's fairly obvious that the views and interests of the donors and the politicians are to some extent going to become aligned," Rashbrooke says.</p><p>One of five key recommendations from the report is for the introduction of state funding in the form of tax credits and democracy vouchers, plus lump sum payments to smaller parties.</p><p>Rashbrooke notes NZ already has state funding for political parties via a broadcasting allowance, and money for parties to run their parliamentary wings. The question is whether we would benefit from a small increase in that, whe