Decided 11 June 1976 Judge(s) sitting Wild CJ Court High Court of New Zealand | Citation(s) [1976] 2 NZLR 615 End date June 11, 1976 | |
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Law121 fitzgerald v muldoon
Fitzgerald v Muldoon and Others is one of New Zealand's leading constitutional law decisions. Heard in the Supreme Court in 1976, the decision considered whether press statements by the Prime Minister Robert Muldoon had breached section 1 of the Bill of Rights 1688, "That the pretended power of suspending of laws, or the execution of laws, by regal authority, without consent of Parliament, is illegal".
Contents
Background
The Third Labour Government had passed the New Zealand Superannuation Act 1974 requiring employees and employers to make matching compulsory contributions to a superannuation fund from 1 April 1975. This was to be administered by the Superannuation Board.
As David Williams noted, "The National Party, then in opposition, used all possible parliamentary devices to oppose this legislation and promised to repeal it immediately the Party gained office again. The general election campaign in 1975 had featured an acrimonious debate over the merits of the rival Labour and National superannuation policies." The National Party had suggested in its election campaign, and specifically in the Dancing Cossacks advertisement, that the superannuation scheme would have the effect of leading to Soviet-style communism.
A general election was held on 29 November 1975, at which the Labour Party was voted out of government and on 12 December 1975 the Third National Government was formed with Robert Muldoon sworn in as Prime Minister. On 15 December, the Prime Minister, who was also Minister of Finance, issued a press statement declaring,
On 23 December, Prime Minister Muldoon issued another press release,
The plaintiff, Mr FitzGerald, had worked as a public servant since 3 June 1975 and he stated in his affidavit that he had since the beginning of his employment with the Crown, contributed at a rate of one percent of his earnings, amounting to $2.08 a fortnight. He further deposed that the Crown had been deducting this from his gross earnings and transferring this into the fund along with their contribute, until the pay period ending on 24 December 1975.
FitzGerald sued the Prime Minister, as first defendant, and named the chairman and eight other members of the Superannuation Board as second defendant, Attorney-General (in respect of the Treasury and Department of Education) as third defendant and the Controller and Auditor-General as fourth defendant.
Wild CJ summarised FitzGerald's case as, that the Prime Minister had in contravention of the Bill of Rights 1688, section 1, made an announcement that constituted exercising a pretended power to suspend a properly made law, the Superannuation Act 1974. FitzGerald sought a declaration that the announcement and instructions issued by the Prime Minister on 15 December 1975 amounted to a breach of section 1 of the Bill of Rights 1688 and injunctions requiring the withdrawal of the instruction and restraining the Prime Minister from further instructions to the Superannuation Board. A range of other declarations and injunctions was sought against the other defendants for their participation in the suspension of the superannuation scheme.
Evidence
In his judgment Wild CJ surveyed the evidence of four public officials: Sir Arnold Nordmeyer, Chairman of the Superannuation Board; a Mr Kelly, assistant commissioner of the State Services Commission; the chief accountant of the Inland Revenue Department; and the general manager of the Superannuation Corporation.
Judgment
Chief Justice Wild decided in favour of the plaintiff on one issue, that the Prime Minister's purported suspension of the operation of the New Zealand Superannuation Act 1975, "was illegal as being in breach of s 1 of the Bill of Rights, and that the plaintiff is entitled to a declaration to that effect."
Wild CJ also held that whether the meaning of "by regal authority" included the Prime Minister's statement was,
Wild CJ found against the plaintiff that the evidence disclosed that there had been no instructions by the Prime Minister to any members of the Superannuation Board, any government department or arm of state services.
Because there was a high probability that the New Zealand Superannuation Act 1974 would be repealed and the scheme dismantled in the months following the hearing, Wild CJ adjourned all other matters for six months, satisfied that, "In my opinion, the law and the authority of Parliament will be vindicated by the making of the declaration I have indicated..."