Why do so many former politicians land cushy top jobs – while ordinary Kiwis struggle to get a fair go? Political cronyism is the reason, and it’s alive and well in New Zealand. The harsh truth is that our political system often serves vested interests rather than the public good. The result? A system rigged in favour of insiders, leaving the rest of us worse off.

It undermines trust, weakens public services, and entrenches inequality. This explainer breaks down what cronyism is, how it manifests in New Zealand (the notorious “jobs for mates” culture), and why it matters to you. We’ll also expose recent examples – from blatant political appointments to the revolving door between government and big business – that show how merit gets sidelined by loyalty.

Finally, we’ll outline how The Integrity Institute is fighting back, and what can be done to clean up this rigged system.

What is Political Cronyism?

Political cronyism is favouritism by those in power toward their friends, allies, or “mates.” Instead of choosing people based on merit or qualifications, politicians give out jobs, public appointments, contracts or perks to those in their inner circle. In plain terms, it’s the “jobs for the boys” syndrome – or in New Zealand parlance, “jobs for mates.” It means who you know matters more than what you know. Cronyism can involve appointing a minister’s buddy to a well-paid board position, creating a role just to reward a loyal supporter, or giving a government contract to a friend’s company. This kind of patronage puts political loyalty ahead of the public interest.

Cronyism isn’t new – in fact, New Zealand tried to stamp it out over a century ago. Back in 1912, the government created an independent Public Service Commissioner specifically “to end ‘political cronyism’ and ‘jobs for the boys’” in the hiring of public servants. That reform was meant to ensure neutral, merit-based hiring in the core public service, taking hiring power out of politicians’ hands. And for everyday civil service jobs, it largely worked.

But outside the core bureaucracy, the tradition of political appointments and back-scratching never really went away. Successive governments have found ways to exploit their powers of appointment – from diplomatic postings to the boards of public agencies – to place their people in plum roles. This often happens behind closed doors, without open advertising or fair competition. As The Integrity Institute’s Director Bryce Edwards noted in a recent case, such appointments “go against the ethos” of New Zealand’s impartial public service, because appointees are selected “based on… political connections” rather than professionalism. In short, cronyism puts pals before the public.

Cronyism in New Zealand: A ‘Jobs for Mates’ Culture

New Zealand likes to think of itself as relatively corruption-free. But scratch the surface, and a ‘jobs for mates’ culture is clearly at work in our politics. Both major parties have been guilty of doling out lucrative positions to their friends and former colleagues – creating a bipartisan club of insiders helping each other out. These political appointments span everything from ambassadorships and board directorships to ad-hoc “working group” gigs, often with hefty pay packets attached. The common theme: merit and transparency take a back seat to political loyalty.

Just look at some recent appointments under the current government. Within months of taking office, the National/Act coalition found top jobs for a who’s who of former National Party ministers. Ex-National leader Simon Bridges was appointed as the new Chair of the New Zealand Transport Agency (Waka Kotahi) in March 2024, and former Deputy PM Paula Bennett was installed as Chair of Pharmac (the drug-buying agency) in April 2024. These are extremely influential public roles – overseeing billions in roading projects and medicine funding – now in the hands of National Party alumni.

Not to be left out, former National Finance Minister Steven Joyce was handed a high-paying role chairing an “expert advisory panel” on infrastructure, at a staggering $4,000 per day fee. (His contract was short-term, capped at $40,000 total, but the rate is more than double what the Prime Minister earns.) And who did the new government tap to conduct a major review of the troubled public housing agency Kāinga Ora? Not a housing policy expert or neutral figure – they picked Sir Bill English, the former National Prime Minister. Likewise, National stalwarts Roger Sowry and Murray McCully have also popped up on the receiving end of new appointments and working group roles. It’s an insider club taking care of its own.

To be clear, this isn’t just a National Party phenomenon – Labour does it too when they’re in power. Under the previous Labour-led government, there were plenty of examples of “jobs for mates.” Perhaps the most brazen was Prime Minister Jacinda Ardern appointing her close friend and embattled colleague Trevor Mallard as New Zealand’s Ambassador to Ireland in 2022. Mallard was widely regarded as a disastrous Speaker of the House (only 17% of the public approved of his performance) and had become a major liability. Ardern needed him gone from Parliament – but instead of showing him the door, she kicked him upstairs to a cushy diplomatic post. As Bryce Edwards observed at the time, “Mallard’s new job is a crony political appointment… he’s been selected because of his political connections”. In other words, loyalty was rewarded over competence – a classic case of cronyism.

Labour also had its share of partisan board appointments. In 2018, for example, Labour’s Health Minister appointed Steve Maharey (a former Labour Cabinet minister) as Chair of Pharmac without even advertising the role, and against official advice to reappoint the existing chair. The Taxpayers’ Union slammed this “dangerous display of cronyism,” pointing out that Pharmac was meant to be apolitical and merit-based.

Fast-forward to 2024 and ironically a former National minister (Bennett) now occupies that same post – illustrating that each side hands out the goodies to their own when the wheel turns. And it’s not just boardrooms and embassies: political allies often get spots on influential working groups, commissions, and consultancy contracts when their friends are in government. No wonder critics talk about a permanent political class rotating in and out of power – scratching each other’s backs along the way.

One infamous example often cited is how former National PM John Key literally phoned a childhood friend about a top government job. In 2012, Key personally shoulder-tapped his old schoolmate Ian Fletcher to head the GCSB (the spy agency), bypassing the usual hiring process after the official shortlist didn’t suit him. The State Services Commissioner was “surprised” by Key’s direct intervention, and opposition parties cried foul about cronyism and lack of transparency. It showed how a determined leader can put a mate into a critical role in secret. The pattern is clear: time and again, politicians from both major parties have exploited public appointments to reward friends.

These appointments often happen behind closed doors, with minimal public scrutiny. Jobs aren’t advertised, insiders get the inside track, and Kiwis are left wondering why the same revolving cast of political figures always seem to land on their feet.

The Revolving Door and Conflicts of Interest

Cronyism isn’t only about jobs for the boys in government agencies – it’s also about the “revolving door” between public office and the private sector. This is another way the system is tilted in favour of insiders. The “revolving door” refers to politicians and officials leaving their public roles and quickly sliding into lucrative roles where they exploit their insider knowledge and connections. Often they become lobbyists, consultants or industry executives who can wield undue influence over their former colleagues. It’s cronyism in reverse – instead of the government giving them a job, they cash in on their government service by getting a private-sector job that trades on their political ties.

New Zealand has no cooling-off period to slow down this revolving door – which is out of step with most other developed countries. That means a Cabinet Minister could resign one day and start lobbying their former Cabinet colleagues the next. That’s exactly what happened last year: former Labour minister Kris Faafoi quit Parliament and immediately became a lobbyist, going to work trying to influence the very government he had just been part of. In many countries, that would be illegal – they enforce a stand-down period (often 1–2 years) before ex-ministers can lobby or take certain jobs, specifically to prevent this kind of conflict of interest. Kiwis are waking up to the problem: 62% of New Zealanders support a two-year “cooling-off” law for politicians becoming lobbyists, according to a recent poll. Yet currently, nothing stops an MP or senior official from walking out the Beehive’s door straight into a plush lobbying gig.

Why is this a problem? Because it blurs the line between public duty and private gain. A minister with an eye on a future industry job might go soft on that industry while in office. A recently departed MP-turned-lobbyist can call up former colleagues and get the red carpet treatment – access ordinary citizens can only dream of. This inside track for insiders means big corporations and vested interests get listened to, while the public interest is drowned out. RNZ’s recent investigative series on lobbying revealed how former MPs and senior Beehive staff enjoy extraordinary access and influence with those in power. When policymaking becomes a cosy conversation among mates – some still in government, some cashing in outside – who speaks for the ordinary New Zealander? It’s a blatant conflict of interest that erodes fair decision-making.

Conflicts of interest arise in other ways too. Many of these political appointees have business ties or personal connections that overlap with their new roles. For instance, if a former minister is appointed to regulate an industry where they have friends or prospective employers, can we trust they’ll be tough when needed? Or consider a politically appointed board chair who owes their job to the Cabinet – will they challenge government policy if it’s failing, or stay loyal to the hand that feeds them? When public officials are beholden to political patrons or private networks, the risk is that they serve those interests, not the public. That’s why traditional public service values demand neutrality and impartiality – values undermined by cronyism. As it stands, New Zealand’s loose rules and old-boy networks practically invite these conflicts. And the outcomes, as we’ll see next, hurt everyone except the insiders.

Why Cronyism Hurts Ordinary Kiwis

Why should you care if politicians give jobs to their mates? Because you end up paying the price. Cronyism is not a victimless quirk of politics – it has real consequences for New Zealand’s economy, public services, and democracy. Here are some of the key ways this rigged system hurts us all:

• Broken Public Services: When key public roles are filled based on who you know, not what you know, performance suffers. Incompetent or unqualified appointees can mismanage agencies that deliver essential services. For example, if a health board or transport agency is chaired by a political loyalist rather than an expert, don’t be surprised when it fails to deliver for the public. Cronyism also breeds a culture of yes-men – appointees who won’t speak truth to power. That means critical problems go unchecked and opportunities to improve are missed. Ultimately, you get poorer service – longer hospital wait times, potholed roads, unaffordable housing – because merit was sidelined.
• Rigged Economy and Inequality: Cronyism and its cousin crony capitalism help entrench an elite class. Government contracts and cushy jobs go to the well-connected, not necessarily the most efficient or deserving. That wastes taxpayer money and distorts the market. Small businesses and talented individuals without political connections are shut out of opportunities – why innovate or compete if the game is rigged? Over time, wealth and power concentrate among a few insiders. Ordinary people miss out on jobs and resources as the spoils get passed around a closed circle. This exacerbates inequality, with the politically-connected getting richer or more influential, while everyone else is left with crumbs. It’s the opposite of the fair go Kiwis expect.
• Regulatory Capture and Corruption Risks: Crony appointments can lead to regulatory capture, where watchdog agencies end up serving the industries or political masters they’re supposed to oversee. If a minister’s mate is running a regulatory body, will they crack down on wrongdoing by friends? Will a politically appointed diplomat blow the whistle on corruption in an ally’s dealings? Cronyism blunts the sharp edges of oversight and accountability, creating a fertile ground for corruption to take hold. New Zealand’s reputation for being corruption-free is at stake – and indeed, we are already seeing warning signs. Our ranking on the global Corruption Perceptions Index has slipped in recent years. The latest report flagged concerns about opaque lobbying and favoritism, noting “lack of transparency” in our system and dropping New Zealand to 4th place worldwide (after decades of being first). Cronyism is a big part of that story. If we don’t tackle it, we risk a slow slide into a more corrupt, less accountable state.
• Loss of Trust in Democracy: Perhaps most importantly, political cronyism shatters the public’s trust. People see a government of insiders, by insiders, for insiders – and conclude that democracy doesn’t work for them. Why bother voting or engaging in politics, if the outcomes seem predetermined by a clique of mates trading favors? This cynicism is toxic. It leads to disengagement, low voter turnout, and a sense of powerlessness that can fray the fabric of society. When citizens believe the system is “rigged” against them (and evidence suggests it often is), they can lose faith not just in whichever party is in charge, but in democratic institutions as a whole. That’s a dangerous path. Trust in Parliament and politicians is already low, and every scandalous appointment or conflict of interest makes it lower. Cronyism is essentially a form of corruption, and New Zealanders rightly feel angry when they see it. We expect a fair go and a clean government – not a VIP club scratching each other’s backs.

In short, cronyism has a very real impact on your life. It’s harder to get quality healthcare or education if those systems are led by cronies instead of experts. It’s harder to afford a home if housing policy is guided by political agendas rather than public need. It’s harder to get ahead in business if you’re not part of the insiders’ network. And it’s hard to trust that your taxpayer dollars are well spent when you constantly see favoritism and waste. The system is supposed to work for all New Zealanders, but political cronyism twists it to serve a select few.

Cleaning Up the Mess: How to End ‘Jobs for Mates’

It’s clear that New Zealand needs to confront political cronyism head-on. The good news is that there are solutions on the table – and The Integrity Institute is helping lead the charge. We refuse to accept a rigged system, and we’re pushing for reforms to make public appointments fair, transparent, and merit-based. In fact, the Institute has a forthcoming report on political appointments in New Zealand that lays out a plan to fix this broken system. Here are some of the key recommendations for reform that would put a stop to the worst ‘jobs for mates’ abuses:

• Independent Appointments Commissioner: Take the hiring of top public officials out of the smoky backroom. We propose establishing an Independent Public Appointments Commissioner (or empowering an existing body with this role) to oversee major appointments. This commissioner would ensure roles are advertised, candidates are vetted on merit, and any hint of political bias or cronyism is called out. An independent watchdog like this would shine a light on the appointments process and keep ministers honest.
• Merit-Based, Open Recruitment: All significant public positions – from board chairs to agency CEOs to diplomatic posts – should use transparent and competitive recruitment. That means clear job criteria, public advertising of vacancies, independent selection panels, and appointment on proven competence. No more secret soundings among the “old boys’ network.” If someone is the best person for the job, they should be able to win it in open competition – even if they aren’t a political insider. Conversely, being a minister’s mate should not count as a qualification. We need robust processes to ensure skills and experience trump cronyism every time.
• Cooling-Off Periods (Close the Revolving Door): It’s time to slam the brakes on the revolving door. We recommend legislating mandatory stand-down periods – for example, 12 to 24 months – before former ministers, MPs and senior officials can take up roles as lobbyists or directors in sectors they used to regulate. This cooling-off period would apply as well to prevent outgoing politicians from immediately walking into government-appointed gigs that could present conflicts. Such rules are common overseas and help protect the integrity of decision-making. They ensure that public servants focus on the public good, not lining up their next plush job. New Zealand should catch up by shutting the revolving door that undermines our democracy.
• Strong Conflict of Interest Rules: We need to put teeth into our conflict of interest policies. That means clearer, stricter rules so that anyone in a public role must fully disclose any personal, financial, or political ties that could influence their decisions. And it means enforcing those rules – if someone is too tangled up in private interests, they shouldn’t be in that public position, period. For political appointments, there should be zero tolerance for appointing close friends or family without an exceptionally compelling rationale and transparency. Strengthening these rules will help restore trust that officials are working for New Zealanders at large, not for their own mates or future prospects.

These are just some of the changes The Integrity Institute is advocating. Our upcoming report dives deeper – including ideas like a public register of lobbyists, tougher political donation transparency, and empowering Parliament to scrutinise appointments. The bottom line is we need a culture change. Public roles should never be treated as the spoils of office or personal gifts to distribute. They belong to the people of New Zealand, and must be filled by the best people for the job, regardless of politics.

New Zealanders deserve a government that works for us, not a clique of politicians feathering each other’s nests. Political cronyism has been quietly undermining our democracy and public services, but the public is waking up to it. The anger and backlash over recent “jobs for mates” stories show that Kiwis won’t tolerate a rigged system. It’s time to end the revolving doors and old boys’ clubs.

The Integrity Institute is committed to shining a light on these abuses and pushing for change. By implementing common-sense reforms – independent oversight, merit-based hiring, cooling-off periods, and stricter integrity rules – we can build a political system that genuinely serves the public good. Breaking the cronyism culture will help make our economy fairer, our government more effective, and our democracy more worthy of the name. It’s about putting people before pals, merit before mates. New Zealand has cleaned up political messes before, and we can do it again. Let’s demand a system where public appointments are earned, not given as favours – and where ordinary New Zealanders can trust that the government is working for them, not just the insiders.

The message to the political class should be clear: No more jobs for your mates – New Zealand is watching.

Further reading on Jobs for mates