Iain Rennie, CNZM
Secretary and Chief Executive to the Treasury
Dear Secretary,
Undue restrictions on restricted briefings
This week, the Treasury barred representatives from four organisations, including the New Zealand Council of Trade Unions Te Kauae Kaimahi, from attending the restricted briefing for the Half-Year Economic and Fiscal Update. We had been formally invited, by the Treasury, to attend the briefing. After the CTU replied to the invitation, Treasury appears to have changed its rules for attendance. Our application to attend was then rejected.
The Treasury now states that “Representatives from peak bodies, professional bodies, unions, universities, industry bodies, industry information services, and advocacy groups, among others, would no longer be allowed to attend”. That means bodies such as Business New Zealand would not be able to attend, nor would organisations such as Local Government New Zealand, Child Poverty Action Group, Aotearoa 350, or Tax Justice Aotearoa. Alongside the CTU these are all national organisations with a strong and legitimate interest in understanding how the government is investing its resources.
Treasury said the purpose of restricted briefings is to provide participants with time to consider materials before public release to enable more accurate reporting and to assist “in transparency and accountability to the public”. The Treasury has therefore concluded that other groups, such as the CTU, no longer have a time-sensitive need for the materials. This despite the fact that attendance by bodies such as these has been the norm for many years without incident.
We must object to this interpretation in the strongest terms. Groups – including the CTU – affected by the new guidelines regularly provide their analysis of Budget figures to their own readers, who number in the hundreds of thousands, and provide expert analysis to journalists attending the restricted briefings. Both functions assist in transparency and accountability to the public, which is the purpose of restricted briefings.
How does it promote the interests of “transparency and accountability to the public” or assist public understanding when external organisations such as Bloomberg will be able to tell foreign investors what’s in the Government books, and provide considered analysis, faster than organisations representing New Zealand workers, business, and taxpayers?
The CTU alone represents 27 Trade Unions with more than 300,000 members. They have a keen interest in understanding the financial situation of the Government – many of whose employment and income rely on the Crown Accounts. Timely analysis and communications from the CTU are essential. Could you please explain why their need for information is less important than that of financial markets?
The lock-up is also an opportunity to engage with the Minister of Finance and the Secretary of the Treasury. To ask questions about the contents of the report, and to have answers to questions heard by media. There is no other opportunity to do that outside of this lock-up. Why should banks be able to ask the Minister questions about economic growth, but other groups find themselves shut out?
Lock-ups do not just bring analysts into a room with access to advance copy of the fiscal documents. Attendees at restricted briefings can also ask Treasury officials how complex estimates were generated. Being able to ask officials about the estimates helps analysts provide better-informed reports with fewer errors. It also means that analysts who misrepresent the figures have little excuse for their own errors.
We sympathise with Treasury’s predicament. When more people wish to attend restricted briefings than can be accommodated, it has to choose who to disappoint. But there has never been a HYEFU briefing where the room was full, and where those who attended couldn’t be seated. This is not a capacity issue.
Democracy and public scrutiny are not supported by locking social partners and non-financial institutions out of the lock-up. This is a retrograde step, which appears to have nothing to do with capacity, security, or with a desire to ensure that complex documents such as the HYEFU are communicated well to audiences across New Zealand.
The CTU strongly urges the Treasury to reconsider these guidelines and your decision to rescind our access. We look forward to a timely response to this letter.
Yours faithfully,
Rachel Mackintosh
Acting NZCTU President