Action point 2: Slow the “revolving door” between government and lobbying roles
Internationally, it is standard practice for there to be a “stand-down” (or “cooling off”) period for Ministers and their staff before they move into lobbying roles. New Zealand currently has no cooling off period at all.
The term ‘revolving door’ describes the movement of former ministers, their staff or senior public servants moving directly into industry lobbying roles. The revolving door creates the risk that insider knowledge and access to confidential state information can be used for private benefit and unfair advantage.
The revolving door also works in reverse when lobbyists with major commercial clients are directly appointed to high level government positions. Movements in both directions of the revolving door create harm for the integrity of public policy-making but they require different mechanisms to manage the cooling off periods.
Internationally, it is standard practice for there to be a “stand-down” (or “cooling off”) period for Ministers and their staff before they move into lobbying roles. New Zealand currently has no cooling off period at all. Examples of cooling off periods in other countries are:
- Australia: 18 months
- European Union: 18 months
- United States: 2 years
- United Kingdom: 2 years
- Taiwan: 3 years
- Canada: 5 years.
Cooling off periods are designed to discourage individuals from:
- making decisions while in office in order to curry favour with future employers.
- selling relevant state information, gained while in office, to lobbying clients.
Former government Ministers have access to a huge amount of confidential information that could be used to unfairly advantage industry clients. While in government, ministers are aware of the Government’s future plans and advice from officials. They have insight into the opinions, motivations and concerns of other ministers and have extensive knowledge of the policies within their own former portfolios.
A significant number of ministers and senior staff members have moved directly from government into lobbying roles in recent years, which has generated considerable media interest and public concern.
Managing the reverse flow through the revolving door (lobbyist to senior government role) comes under action point 3 below on managing commercial conflicts of interest
What we are asking for
Action point 1 in HCA’s action plan advocates for the creation of a Regulation of Lobbying Act. To slow the revolving door between government and industry lobbying roles, this act would include:
- A "cooling off" period of 1-3 years in which former ministers, MPs, political staffers and senior public servants cannot lobby government on issues where they had official dealings. This will ensure confidential government information and relationships aren't used for private benefit.
What these measures will achieve
Ministers often have access to sensitive information and decision-making processes that could benefit private interests. A cooling-off period ensures that former ministers have time to distance themselves from their government roles, reducing the risk of using insider knowledge for personal gain.
Allowing former ministers to immediately transition into lobbying roles can create the perception that they are exploiting their government connections for personal gain and commercial gain for their clients. A cooling-off period demonstrates a commitment to ethical behaviour and helps maintain public confidence in the integrity of government officials.
Why action is needed
Introducing a “cooling off” period would bring New Zealand into line with the standard practice followed by many other countries and the latest OECD recommendations that urge nations to, “design effective rules and procedures such as cooling-off periods, subject-matter limits, time limits, disclosure of post-term engagements by holders of at-risk positions, including abroad, and prohibiting any use of any insider information after they leave the public sector.”
