Prime Minister Christopher Luxon has surprised everyone with his ruthlessness in sacking two of his ministers from their crucial portfolios. Removing ministers for poor performance after only five months in the job just doesn’t normally happen in politics.
That’s refreshing and will be extremely well received. The public will perceive this unprecedented move as a sign that Luxon has very high standards for his government and is determined that his ministers actually deliver results.
Brutal sackings will be popular
Appearing on 1News’ 6pm news last night, I described the demotions as “brutal sackings”, adding that although I thought the moves would be popular, few should believe Luxon’s explanation that the need to replace Melissa Lee was because they needed someone more senior: “Melissa Lee is one of the most senior, experienced politicians in National. She's the third-longest serving National MP, so it doesn't quite add up that she wasn't experienced. She's been in that portfolio since 2017” – see 1News’ ‘Collective sigh of relief’ likely over Lee's sacking - Jennings
The demotions have been strongly applauded by Newstalk broadcaster Heather du Plessis-Allan who argues that Luxon’s strong style of “performance management” is just what the public wants at the moment – especially after many years in which much worse poor performance has been accepted by prime ministers with a lower threshold of expectations – see: NZ deserves Luxon's style of performance management
She says that Luxon’s show of strength is a massive contrast with the last government: “What's happened today will shock a lot of people, because over the last few years we've got used to Prime Minsters just putting up with their ministers doing a bad job or behaving badly in public. Kiri Allan, Phil Twyford, Michael Wood, Clare Curran, even Nanaia Mahuta - the Foreign Minister who didn't like international travel. It took forever for Hipkins or Ardern to demote the under-performers, and they suffered for it – public opinion of them was tainted.”
The “kindness” attribute displayed towards their colleagues by recent prime ministers is now very out of step with an electorate that desperately wants politicians to get things done.
Of course, there’s always been a sense in which prime ministers are expected to be ruthless towards their colleagues – something that former Cabinet Minister Peter Dunne emphasises today in his column, Luxon gets out his butcher's knife – briefly
In this, he points to the phrase used by William Gladstone, the former PM of Britain: “the first essential for a Prime Minister is to be a good butcher.”
Luxon is sending a strong message
Dunne says that Luxon’s brutal ministerial reshuffle “has sent two clear messages – one to both Ministers that they are on their last warning, and that they will be unceremoniously shown the door if anything else goes wrong. The second warning is to all other Ministers about the Prime Minister’s limited tolerance for poor performance and the fate that might await them in such circumstances.”
He also argues that it would have been detrimental for both the Government and Luxon’s own reputation if the two ministers had been kept in place, and so it was smart to get them out of the way before the Budget.
Herald political editor Claire Trevett also stresses how unusual such demotions are – especially this early in a government’s term, and without any more overt wrong-doing: “Usually ministers are stripped of portfolios for a scandal, a breach of the Cabinet Manual, or telling a porky to the Prime Minister or the public” – see: Prime Minister Christopher Luxon’s reshuffle of Melissa Lee, Penny Simmonds should keep all ministers on their toes (paywalled)
She also says that Luxon has read the room well, unlike previous PMs: “Too often, prime ministers let flailing ministers stay in their jobs too long, either to save face or to risk looking as if they are conceding they made the wrong choice.” But she warns that such demotions are a balancing act, because if you do it too much it becomes a negative: “There is a bit of risk to Luxon in this approach: if you end up moving too many ministers around for shonky performances, it starts to look a bit chaotic.”
National Party insider Ben Thomas has also described the demotions as rather brutal, comparing them to some of former PM John Key’s: If Luxon’s mentor, former prime minister John Key, was the so-called ‘smiling assassin’, the current National party leader might be more like a corporate drone strike: affectless, unperturbed, and delivering the bad news in clinical HR speak” – see his column in The Post: Luxon unleashes the corporate drone strike (paywalled)
But Thomas admits that there’s a chance that the sackings, occurring so soon after Luxon appointed these ministers, might reflect poorly on his original decision to appoint them: “To paraphrase The Thick of It’s Malcolm Tucker, it has usually been thought that if the PM sacks you after a year, you’ve effed up; if he sacks you after a week, he’s effed up by appointing you.”
Newsroom’s political editor Laura Walters also points out how soon the demotions have come: “fewer than 150 days into the term was not a good look for the Government – something Newsroom understands Luxon’s staff raised with him” – see: Melissa Lee’s media Hail Mary comes up short
RNZ’s political editor Jo Moir suggests it’s a bad look in terms of diversity in Cabinet for Luxon to be sacking two women and bringing in a man (Climate Change Minister Simon Watts). But she says for Luxon “competence in the job, or lack thereof, had to trump anything else” – see: Aces in their places: Luxon plays coy over ministers' competence. But Moir points out the positive of having Watts come into Cabinet: “It will also bring to an end the frustration from climate and environment quarters over the climate change portfolio being outside Cabinet in the first place.”
The other possible message that the demotions send, according to Kelly Dennett of The Post, “is that Luxon is taking delivery seriously; that it’s productivity or bust in this corporate-styled National-led Government” – see: What Luxon really means when he says ‘this is how I roll’ (paywalled)
But she wonders if Luxon is using too much “corporate-speak” in these types of announcements. His phrase that “This is how I roll, this is how I lead” has been derided by a number of commentators. And Dennett argues it’s “not particularly prime ministerial, more what the sneaker-wearing CEOs volley around the boardroom.”
Melissa Lee’s poor performance
Although yesterday’s demotions were surprising due to their timing, no one seems to have been surprised, as Melissa Lee was already in serious trouble. Over the last month or two of major downsizing and threats in various media businesses, Lee has been widely viewed as ineffective and missing in action. Common reactions to her performance have involved the word “clueless” and phrases like “possum in the headlights”.
According to the Herald’s Claire Trevett, Lee was unfortunate to possess the portfolio during a crisis, but also failed to produce credible responses: “Lee’s downfall was that they came to a head on her watch – and she did not have an answer to them by the time they took their toll. Nor had she come up with anything since.”
Ben Thomas is more sympathetic to Lee’s plight, saying there was an element of unfairness in her sacking: “she had been, to differing extents, gagged by her own side. Even before the election, National refused to release her broadcasting policy”. Then during the media crisis, he says that she was stuck in limbo because of coalition politics involving NZ First: “Her office was reportedly barred from clarifying the timeline of policy development with journalists by Luxon’s office, to ease tensions with deputy PM Winston Peters.”
Newsroom’s Laura Walters appears to have more inside information on what has been going on in the Beehive, saying that Lee’s final downfall came when her third attempt to develop a Cabinet paper of solutions to the crisis disappointed the Prime Minister. Walters reports on Lee’s third Cabinet paper failing: “Sources told Newsroom that Luxon… believed the proposals in Lee’s [third] paper did not adequately deal with the complexities of the issues facing the media industry.”
Lee has now been replaced as Media Minister by Paul Goldsmith, and Claire Trevett ponders whether the new minister is simply being “handed a poisoned chalice.” The portfolio has certainly been a difficult one that appears to have defeated previous ministers like Claire Curran, Kris Faafao, and Willie Jackson – all of whom struggled to make much headway in helping the sector to modernise. For more on this, see Colin Peacock’s Media minister rolled as industry awaits plan
Penny Simmonds’ poor performance
Penny Simmonds has lost her cherished Disabilities ministerial portfolio in similar circumstances – as she too has caused the Government embarrassment, but not in a way that would normally lead to a sacking. However her mismanagement of the Disability portfolio led to savage cuts to disability support allowances, which shocked her colleagues and the sector. It was made worse by some intemperate remarks about those in the sector.
Finance Minister Nicola Willis had to intervene in the debacle, returning funding to the disability sector, and making it clear that any such changes in the future would need to be cleared by Cabinet rather than just Simmonds. And according to Newsroom’s Laura Walters, this “was seen by many as a vote of no confidence in Simmonds’ ability to oversee her own ministry.”
Despite this poor performance and bad publicity for the Government, few were tipping her to be fired so quickly. According to Walters, reporting on Beehive information, Luxon needed to demote Lee, and was less inclined to demote Simmonds this early, but “he decided to make both changes in one go to avoid another potential reshuffle down the road should Simmonds not bounce back.”
Also reporting Beehive sources, Ben Thomas says today that “insiders say Simmonds has struggled with the workload across her portfolios, and that the disabilities carer payment changes were not the only significant official-led announcements that passed under her risk radar.”
Luxon is appealing to our anti-political grumpiness
Luxon will win new plaudits from commentators for being decisive and bold, especially after years in which prime ministers have seemed highly reluctant to punish poor behaviour or performance. Luxon and his Government look like they won’t settle for “business as usual” or workmanlike politics.
If that is Luxon’s objective, then he’s smartly tapping into the Zeitgeist, reacting to a public mood that is increasingly grumpy and intolerant towards political complacency and mediocrity. We live in an age of political anger and discontent, which means that this National-led Government will quickly suffer if it protects poor performance.
Two recent IPSOS polling surveys indicate just how volatile and hard to please the public are. Last month, the market research company released its polling, showing that the public wasn’t evaluating the new government’s performance any more positively than it did for the last Labour Government when it was at its most unpopular – the average rating that people gave the National Government was only 4.6/10 – see my coverage of this: Scoring 4.6 out of 10, the new Government is struggling in the polls
Then last week, IPSOS released its survey of New Zealand’s attitudes to politics, which showed that two-thirds of the country believes that “New Zealand needs a strong leader to take the country back from the rich and powerful”, amongst many other rising anti-Establishment beliefs – see my column: Serious populist discontent is bubbling up in New Zealand
Of particular relevance was the survey question in which respondents were asked whether they agreed with the following statement: “To fix New Zealand, we need a strong leader willing to break the rules”. 54 per cent answered “yes”. The same question asked in the rest of the world had an average agreement of 49 per cent. In New Zealand, the demographics who much more likely to agree with the need for a strong rule-breaking leader were rightwing voters (60%), those on low incomes (66%), and Māori (73%).
Notably, political scientist Jack Vowles has also detected this growing grumpiness and desire for strong leadership. His NZ Election Study found that in 2020 43 per cent of the public agreed with the following statement: “A few strong leaders could make this country better than all the laws and talk”. But last year, the survey question found this had increased to 51 per cent.
Luxon and his government are also carrying out their own polling regularly, and will be well aware of how this increasingly anti-political mood means that voters will reward political leaders making strong decisions and being intolerant of mistakes and poor performance. In this sense, when he launched his surprise and ruthless demotions yesterday, Luxon was finally showing that he could be a “strong leader” or perhaps even a “populist” type of politician for our times.
Dr Bryce Edwards
Political Analyst in Residence, Director of the Democracy Project, School of Government, Victoria University of Wellington
This article can be republished for free under a Creative Commons copyright-free license. Attributions should include a link to the Democracy Project (https://democracyproject.nz)
Both demoted are National MPs - bad performances are arguably occurring with ministers from ACT and NZ First. Maybe if ACT and/or NZ First ministers were demoted 'ruthless' would be an apt description.
I don't share your generous interpretation of how Luxon's latest stunt is viewed by the voting public.
"...has a habit of cost overruns and poor financial management."
Luxon criticising Whaikaha Ministry of Disabled People.
And here: Chief executive of Disabilities Support Network Peter Reynolds speaking about the demotion of Penny Seymonds, with Lisa Owen, Checkpoint Wednesday 24 April 2024.
"I think the oportunity to replace the minister with one who is inside cabinet, who has some experience at ministerial management level, is helpful.
Having said that, we are greatful for Penny's tenure, we worked closely with her and found her to be a good Minister but in need of support in some areas."
When asked by Lisa Owen if he was politely saying 'the new minister is better than the old one' he replied
"I am politely saying that the new minister is possibly better than the old one. I don't attribute the handling of that issue entirely at the ministers feet - there were a lot of people with fingers in that pie, including some within Whaikaha to be fair.
But the issue around funding for Whaikahu and the disabilities sector has been an issue that has been around for years and years, and multiple governments have not really been able to address it. So in some respects I'm glad that it's come to a head, it's unfortunate that it's cost some people their jobs, but it needs to be addressed.
The reality is Whaikaha were underfunded from the word go, and the sector- the disabilities sector - has been underfunded for some years.
We've got to remember that the sector is entirely reliant on government funding, it doesn't get money from anywhere else.
Since 2017 we believe that we've lost pace with inflation to a tune of around 24% and that's massive in anybodies books.
If you're running a small business and you have a 24% cut - somethings gonna give, so I think the prime minister needs to undertake the review that's been suggested, we welcome that, it should throw a spotlight on the funding situation that the disabilities sector in New Zealand has been facing, and we look forward to a plan that would come out of that review to talk about how those issues are going to be addressed.
We don't believe the review is going to highlight 'massive overspends' and an 'out of control ministry' - quite the opposite.
Last year Whaikaha gave the sector a 3% uplift- inflation was 6.9% so that's effectively a cut.
How do you manage the increased costs that you're facing when you're reliant on that government funding?
That's the sort of stuff that needs to change.
I understand the government are in a parcarious state, they're trying to manage their budget, but at the same time the sector is really vulnerable at the moment, some people are teetering on the edge and they need a bit of reassurance and a bit of investment in contrast to what we have experienced for well over a decade."
So what does Luxon's "ruthless show" actually tell us?
Who is represented in Luxon's energised "invest" plans for Aotearoa New Zealand's future?
Because it seems pretty obvious to me that before dishing out tax cuts to the wealthy, Luxon's government is going to have to invest heavily in essential services that are grossly underfunded. Invest heavily in those peoples who are currently grossly under represented by government.
Luxon is going to have to use his evangelical 'energised' sermons to do more than roll ministers - ministers that HE failed - ministers who were given insufficient tools, time and support to do their jobs effectively.
Luxon can talk tough and say that he is not interested in taking 🤡, he can talk tough and say he's only interested in action - but if he fails to deliver on essential services - he's gone.
And that's without even talking about Section 7AA.
Labour lost the election because they failed to listen to voters who are concerned about two things:
Environmental resilience.
Equity.
If Luxon's government fails to demonstrate environmental and socio-economic responsibility - if they continue to appear illiterate in this regard - come 2026 they're gone.
Personally, I think Luxon just wrote his own headline - for when he gets rolled.