Bryce Edwards on 'soft-corruption' in New Zealand – especially re Robert MacCullouch.

Kiwiblog

26-05-2025

Early last year I married, for the second time, and my new wife came from Brazil 16 years ago. When we visited her country and family, last year, we talked a lot about corruption there (the series The Mechanism is an outstanding watch). I told her that I believe that there is a MASSIVE amount of 'soft corruption in NZ' – where power (a big budget, lots of staff, influence, re-election) is the currency – as opposed to monetary bribes.
Professor Robert MacCullouch is a very highly qualified economist with a chair at the University of Auckland. I read his work often (as a person qualified in economics and education) and appreciate that he has, until now, fearlessly supported positive actions from government and the business community – and challenged those he sees as negatives.
Bryce Edwards has written in this recently: (I have point-form summarised somewhat):
'Chumocracy' and the Suppression of Prof MacCulloch
– NZ needs more people like Robert MacCulloch willing to speak out. But if the price of dissent is this high, how many will choose to do so? His story is a good example of what happens when you dare to speak truth to power in a small country where the elites are all too interconnected.
– MacCulloch {has] launched some heavy broadsides at the way that political and business elites in this country are ruining the economy and the political process by their dysfunctional hold on power in which dissent and debate are suppressed using patronage and threats.
– MacCulloch announced this week that he is closing his long-running blog, explaining that 'National, Labour and Big Business NZ have begun to complain and threaten me at the highest levels about my writings'.
– MacCulloch has outlined how the attempts of himself and others to hold powerful interests to account have been met, not with reasoned rebuttal, but with threats, blacklisting, and institutional pressure designed to silence dissent. His experience provides a rare insider's account of how New Zealand's political and business elite police the boundaries of acceptable debate. MacCulloch explicitly claims to be closing his website after receiving 'threats from current and former cabinet ministers'. 'You get excommunicated from the little cosy group of inbred Wellington officials and high-ranking boards.' He says he has become 'persona non grata'.
– MacCulloch's core accusation is that New Zealand operates on a system of 'soft corruption'… Corruption in New Zealand takes the form of you scratch my back, I scratch yours.'
– The message conveyed to him, particularly from figures associated with the current National-led government, was that positive political commentary would be rewarded with political appointments. MacCulloch argues that this patronage system is how the 'inbred club' maintains control over appointments to high public and private offices. MacCulloch said he was essentially excommunicated by New Zealand's political establishment for criticising government economic policy and elite appointments.
– A central theme in MacCulloch's recent and past analysis is the existence of a 'cosy inbred club' running New Zealand. This … he argues, comprises interconnected individuals across politics, the corporate sector, and the civil service, who are often 'promoted way beyond their abilities'. 'Every high-status job in the country is just a job for mates', and appointments are 'so corrupt it's beyond belief – now it's just a group of people going from one big job to the next even when they're not qualified and don't deserve the job'. He argues that the last Labour government entrenched a culture of ideological appointments, and the National-led government is continuing the same pattern – just swapping in their own preferred cronies [Or not appointing anyone – re the Ministry of Education.]
– MacCulloch describes corporate New Zealand, particularly the NZX50 companies, as a 'disaster', run by 'accountants and lawyers' who 'all know each other', with many boards forming an 'inbred club'. He notes the poor performance of many top companies.
– MacCulloch says elite capture of high-status jobs blocks talented young people from progressing: 'They can't get promoted because you've got these bums occupying these big positions of power.' Hence, young New Zealanders are leaving the country.
– [And] MacCulloch is lamenting the 'inbred culture of the civil service in Wellington' where 'the same old types in charge – being career bureaucrats with law, accounting, communications, or vague 'management' backgrounds'.
Why all this matters.
– MacCulloch's experience should serve as a warning for anyone who believes in open debate, academic freedom, and political diversity. He is an Oxford-trained economist, a respected professor, and someone who engaged constructively across the political spectrum. Moreover, he holds the highly prestigious 'Matthew S Abel Chair of Macroeconomics' at the University of Auckland.
– This about defending the public sphere from being captured by a narrow set of insiders. It is about meritocracy, open debate, and resisting the cartelisation of ideas.
– New Zealand needs more people like Robert MacCulloch willing to speak out. But if the price of dissent continues to be this high, how many will choose to do so?
– As MacCulloch points out, this is a 'soft corruption' of jobs for the boys and girls – New Zealand political and economic system has become one where entry to the upper echelons is extraordinary closed, with political appointments being reserved for mates, or the 'chumocracy'.
I responded to Bryce Edwards on this:
Hello Bryce
Your piece on the Prof is outstanding.
Although I am not in the same class as Robert – having an economics and education background at least allows me to understand.
In terms of speaking out on the education system. National/ACT loved me with the original Charter Schools (a MUCH better programme than this time around) and my critique of Labour and the MoE when National was in opposition. Indeed – I organised an outstanding education summit for Erica Stanford in Cambridge when she was the opposition spokesperson for education. I also presented to the NZ Economic Forum at Waikato Uni 2023.
When I have critiqued NACT's education work (or lack of it) – I have heard from all sorts of people telling me to be quiet (Taxpayer's Union, NZ Initiative, former MPs x 3, etc). Despite being in frequent contact with Erica Stanford when she was in opposition – I have heard nothing from her when she has been in government (except having a third party tell me she was 'devastated' by my critique).
When Labour was in power – Oliver Hartwich told media that TNT was a solution for the Ministry. NZ Initiative is silent on such things when National are in. Michael Johnston of the Initiative is one of Stanford's close advisors.
Seymour has also spoken negatively of me in the media as I have criticised the pathetic Charter School roll-out – even bringing up my divorce from my first wife while on Hosking (in the same conversation where he blasted Jenny Shipley). The Charter School roll-out has been dominated by telling lies about the level of funding (just $10m until June 30th 2025) and spending $30million (of $123million until the end of 2026) on the Charter School Agency (an entirely incompetent mini-bureaucracy who have also done as much as they can – some of it clearly illegally – to discredit me).
I am sure others could share similar experiences and are beginning to do so.
I will not stop speaking out on the continued decline of the NZ system – or the broken promises and lack of action the Stanford/Seymour/MOE. It is highly unusual that a new Sec for Ed has not been appointed and that the Ministry of Ed is still at a 'head-count' of over 4,200 despite the promise to bring it back to the pre-Hipkins of 2,700.
In the current environment the people that most need to challenge the current government are those that supported them into office. The need to ask them to keep their promises! – in the same way that a great sport club's fans ask the team to actually perform.
The education changes are incremental – at best. If the boat is already sinking fast then putting your fingers in a few holes is just not going to work.
And … shutting down dissent is an awful way to go about anything.
Alwyn Poole
[email protected]
alwynpoole.substack.com/