New Zealand Democratic Party
This article is about the modern party based around the social credit theory. It should not be confused with the pro-business Democrat Party founded in 1934.The
New Zealand Democratic Party for Social Credit is a small
leftist political party in
New Zealand. It is based around the ideas of
Social Credit, an economic theory which also attracted some degree of support in
Canada and
Australia. The party does not currently hold any seats in parliament, although it has previously held two. Democratic Party members also held seats when the party was part of the
Alliance. The party was formerly known as the
Social Credit Party, and was for many years the largest minor party in New Zealand politics. The party's economic policy is still based on
Social Credit theories, while in social matters, the party takes a position similar to progressive
liberal parties elsewhere.
The Democratic Party describes its foremost goal as being the recovery of "economic sovereignty". This will be accomplished, the party says, by "the reform of the present monetary system, which is the major cause of war, poverty, inflation and many other social problems." The reforms promoted by the Democratic Party are based on the ideas of
Social Credit. The party emphasises "economic democracy", claiming that New Zealand's economy must be reclaimed from the control of financiers, bankers, and money-lenders.
The Democratic Party also supports taxation reform, including the removal of
GST and the imposition of a tax on financial transactions (a
Tobin tax). They also support the introduction of a
Universal Basic Income (see external link below).
The Democratic Party states that "what is physically possible and desirable for the happiness of humanity can always be financially possible."
The New Zealand Democratic Party was originally established as the Social Credit Political League, and later became the
Social Credit Party. For more information on the party's early history, see the main Social Credit Party article.
When the Democrats adopted their present name, they held two seats in parliament - one was East Coast Bays, held by
Gary Knapp, and the other was Pakuranga, held by
Neil Morrison. Two years after the new name was adopted, in the
1987 elections, the Democrats lost these two seats, removing them from parliament. In
1988, Gary Knapp and a group of other Democrats were involved in a protest at parliament, criticising the
First Past the Post electoral system which prevented their success.
The Democrats, finding themselves increasingly pressured by the growth of
NewLabour (founded by rebel
Labour Party MP
Jim Anderton) and the
Greens, opted to increase cooperation with compatible parties. This resulted in the Democrats joining NewLabour, the Greens, and
Maori-based party
Mana Motuhake in forming the
Alliance, a broad left-wing coalition group.
In the
1996 election, which was conducted under the new
MMP electoral system, the Alliance won thirteen seats. Among the MPs elected were
John Wright and
Grant Gillon, both members of the Democratic Party.
However, there was considerable dissatisfaction in the Democratic Party over the Alliance's course. Many Democrats believed that their views were not being incorporated into Alliance policy, particularly as regards the core economic doctrine of Social Credit. The Alliance as a whole tended towards "orthodox" left-wing economics, and was not prepared to implement the Democratic Party's somewhat unusual economic theories.
By the
1999 Election the Democrats were one of only two remaining parties in the Alliance as the Greens left the grouping and the Liberals and NewLabour components formally dissolved, their members becoming members of the Alliance as a whole rather than of any specific constituent party.
In
2002, when tensions between the "moderate left" and the "hard left" caused a split in the Alliance, the Democrats followed Jim Anderton's moderate faction and became a part of the
Progressive Coalition. In the
2002 elections, Grant Gillon and John Wright were placed third and fourth on the party's list. The Progressives, however, won only enough votes for two seats, thus leaving the two Democrats outside parliament.
Shortly after the election, the Democrats opted to split from the Progressives, re-establishing themselves as an independent party. However, Grant Gillon (the party's leader) and John Wright, both of whom opposed the split, chose not to follow the Democrats, instead remaining with the Progressives (who became the
Progressive Party, rather than the Progressive Coalition after the Democrats left). The Democrats chose
Stephnie de Ruyter, who had been fifth on the Progressive list, as their new leader.
In
2005, the party added "for Social Credit" to its official name. The Democrats contested that years
general election as an independent party but only managed to receive 0.05% of the Party Vote. The party was unable to regain the support it held when it was known as Social Credit.
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Official web site*
Universal Basic Income description, by Keith Rankin
