Public Sector neutrality.
FMA chair Craig Stobo under investigation.
In Aotearoa, we have a tradition of public sector neutrality; governments come and go, and those who work in our public services are expected to keep their political views to themselves.
By and large, it works, though more recently this government has tended to replace people they don’t like with those they trust.
Some find it impossible to remain neutral, with the desire to speak out honestly about what is going on taking precedence over kissing the government’s butt. You probably remember Rob Campbell, the former chair of Te Whatu Ora Health New Zealand, who lost his job for refusing to stay silent and speaking in favour of co-governance in health, which the government was busy dismantling.
David Seymour called that “an egregious breach of the code of conduct,” and that was the end of Mr Campbell.

Now, some might say fair enough, you can’t have a public servant undermining the government in that way, while others might say the man was a whistle-blower and right to speak out on something that so fundamentally undermined the work he was doing. Either way, I’m sure everyone would agree that if there is to be such a rule, then it should apply to all.
I think that’s why I felt so angry when Public Service Commissioner Sir Brian Roche paid for social media advertising attacking strikers as he went on holiday, and he says he’d do it again.
From the Public Service Commission:
“The Commissioner’s role is to protect and enhance the legitimacy and integrity of the Public Service. They also preserve, protect and nurture the spirit of service that sits at the heart of the Public Service and everything it does.”
I fail to see how criticising unions fits that definition; if anything, it reveals a lack of neutrality and essentially shows that Sir Brian is puckered up and focused on pleasing the government.
One rule for all.
But that is nothing compared to the case of the FMA (the Financial Markets Authority) chair Craig Stobo, who has even attracted the ire of Green co-leader Marama Davidson, someone who doesn’t typically get involved in this sort of party politics.
Stobo is already under investigation, and neither MBIE, Commerce Minister Scott Simpson, nor the man himself are saying what for.
Marama Davidson has called for Craig Stobo’s submission in support of ACT’s Treaty Principles Bill to be considered in MBIE’s investigation into his conduct.
Agree or disagree, you can see why Rob Campbell stood up for what he believed in, or that Brian Roche has an interest in the public service getting back to work, but what on earth does the head of the FMA have to do with the Treaty Principles Bill?
It is rumoured that Stobo’s appearances on the right-leaning The Platform to discuss economic and political topics may be the cause of the current investigation.
If nothing else, his association with Sean Plunket’s platform, which provides misinformation to cookers, is hardly going to enhance his reputation, or that of the FMA.
There might well be racist cookers in parliament, but surely that is not appropriate in a senior role in the public sector.
Stobo’s submission on the TPB was to “clarify in statute for all New Zealanders” the principles of the Treaty, to ensure that New Zealand could “prosper as a modern representative democracy”.
The implication being that we can’t be a modern representative democracy without the bill, which is simply false, and besides, what the hell did Seymour’s racist bill that sought to downgrade and redefine Te Tiriti o Waitangi have to do with the FMA?
Marama wasn’t convinced and said, “Publicly submitting on the most politically controversial bill in recent decades is clearly inappropriate for a public servant of Stobo’s position, which compromises confidence that he can exercise the political neutrality required for his role.”
She continued: “There are clear rules around political neutrality in the code of conduct for Crown board members that should be upheld across the political spectrum. The investigation underway should reveal the full extent of whether and how this principle has been breached.”
As I mentioned, Davidson isn't one to resort to petty tactics against other parties, though she knows what it's like to be targeted by them.
Some of you might remember when she got into trouble for holding a Whittaker’s chocolate bar to celebrate the label being in Te Reo, a rule that other Ministers have routinely flouted without repercussion.
I must confess I am biased against The Platform, it spreads misinformation and generates hate. Having said that, it might be appropriate for Stobo to appear if it were in relation to his role at the FMA, and he remained politically neutral. But well-informed neutrality is not what The Platform offers.
We’re told that Stobo appears on The Platform as an “economic commentator, not as FMA chair” - yeah, right, it doesn’t work that way, you can’t just leave your position at the door and pretend it doesn’t exist.
Here are some topics where Stobo has offered his opinion, and they don’t seem to have much to do with his role.
Support for Crown asset sales to help pay for new infrastructure.
His opinion that the Green Party plans to cancel fast-track mining and oil and gas projects would hurt New Zealand’s reputation as a stable place to do business.
His belief that the current agricultural methane emissions policy is misguided
The age of eligibility for NZ Super has to rise to fund an “unaffordable” pension system.
Clearly, Stobo is taking political positions on matters that have nothing to do with his job, and given his role, that is entirely inappropriate, even if many coalition MPs agree with what he is saying.
Even the Herald recognised how inappropriate it was in an editorial which ended, “The FMA’s core purpose is to ensure the financial markets are fair, efficient and transparent. The cloud now hanging over the current chair is a bad look at a bad time for the regulator.”
I’m not generally in favour of Public Servants being muzzled. In areas like Health and Policing, we must have whistleblowers willing to challenge the government when it gets it wrong.
However, having a senior official speaking publicly about matters where they have no relevant expertise but are happy to provide their point of view and openly supporting the hugely unpopular Treaty Principles Bill, which even National and ACT failed to do beyond the first reading, is overstepping the mark, anyway you look at it.
If Stobo wants to be a media commentator he should go and do that, but he can’t continue to do that as well as being chair of the FMA, regardless of whatever else MBIE are investigating him for.
Have a good Sunday folks, it looks like being a lovely day out there.
Ngā mihi,
Nick.
To end today, something a bit different, a few months ago, Fi and I went to see Marlon Williams in Tamaki Makaurau. I’m sure some of you did too; the audience looked a bit like us, greying around the edges and woke AF. It was very special.
Here’s Marlon performing a whole show at the Sydney Opera House, which was uploaded over night; if you’ve got the time, it’s well worth a watch and a listen.









A very important newsletter, Nick - thank you. I'm really shocked at the way this FMA chair has 'got away' with behaving badly. He should be sacked - if I could work out who actually employs him. Well said Marama.
Not quite at the Stobo level but in the area I follow most closely, education, a number commentators are mentioning very odd interactions with ministry folk. Also interesting that the acting CEO of the Teachers Council runs a private teacher education establishment. They are also making the council smaller by disestablishing the roles of teacher representatives on the council. As you say Nick there is Insidious creep towards ideological 'plants' on important groups.