THE CASE FOR SUBSIDIARITY AS A CONSTITUTIONAL PRINCIPLE IN NEW ZEALAND A THESIS SUBMITTED TO THE FACULTY OF LAW AND THE BOARD OF GRADUATE STUDIES OF THE UNIVERSITY OF AUCKLAND IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY Benjamen Franklen Gussen January 2015 The Case for Subsidiarity as a Constitutional Principle in New Zealand PhD thesis January 2015 Benjamen F Gussen School of Law University of Auckland Main supervisor: Professor Klaus Bosselmann Co-supervisor: Associate Professor Marjan van den Belt ABSTRACT This doctoral thesis uses historical analysis, constitutional economics, and complexity theory to furnish positive and normative arguments for subsidiarity as a constitutional principle in New Zealand. The principle of subsidiarity is the hypostasis of the Treaty of Waitangi, both in its English and Māori texts. It is also evident in the thinking behind the New Zealand Constitution Acts of 1846 and 1852. This constitutional tradition has been occulted since the abolition of the New Zealand provincial system in 1876. Constitutional economics suggests an optimal limit to jurisdictional footprints (territories). This entails preference for political orders where sovereignty is shared between different cities rather states where capital cities dominate. The resuscitation of subsidiarity as a foundational element of our constitution holds the key to economic prosperity in a globalising world. Moreover, insights from complexity theory suggest that sustainability is a response to the ‘problem of scale’. It is a fitness trait that prevents highly complex systems from collapsing. The nation state is a highly complex system within which cities function as ‘attractors’. The collapse of such systems would ensue if there were strong coupling between attractors. Such coupling obtains under legal monism. Only subsidiarity can make this eventuality improbable. Understanding the ‘emergent properties’ of sustainability and the ‘self- organizing’ properties of subsidiarity entails a shift in policy emphasis towards the latter. The thesis recommends changes to the Constitution Act 1986 to reinstitute subsidiarity as a constitutional principle. New Zealand cities, in particular the Auckland supercity, would benefit from wider local autonomy under this vision. Nevertheless, constitutional change will have to start with public opinion, especially in relation to subsidiarity and its role in shaping the relationship between cities and the central government. 1 2 FOR THE LOVE OF YHWH To my mother for the sacrifices she has made. 3 4 Toitu he kianga; whatungarongaro he tangata (People are transient things but the land endures) 5 6 ACKNOWLEDGEMENTS שְׁ מַ ע, יִשְׁרָאֵ ל: יְׁהוָה אֱ ֹלהֵ ינּו, יְׁהוָה אֶחָ ד. וְָׁאהַבְׁתָ,אֵ ת יְׁהוָהאֱֹלהֶ יָך, בְׁ כָל-לְׁבָבְׁ ָךּובְׁ כָל-נַפְׁשְׁ ָך, ּובְׁ כָל-מְׁ אֹדֶ ָך (Deuteronomy 6: 4-5) (Matthew 6: 13) ُق لِِال َّل ُه َّمِِ َمال َكِِا ْل ُم ْل كِِ ُت ْؤ تيِا ْل ُم ْل َكِِ َم ْنِِ َت َشا ُءِِ َو َت ْن ز ُعِِا ْل ُم ْل َكِِ م َّم ْنِِ َت َشاء ُ ْ َ َ ُ ْ َ َ ْ َ ْ َّ َ ُ َ ْ َ َوت عزِِ َمنِِتشا ُءِِ َوت ذ لِِ َمنِِتشا ُءِِِۖ ب َي د َكِِالخي ُرِِِۖإ ن َكِِ َعلىِِك لِِشي ءِِق ديرِ (The House of Imran 3: 26) This work would not have been possible had it not been for the will of YHWH, who bestows on me of his infinite blessing. His love has been, and will always be, the reason behind my success. I would also like to thank the following people, who played an important role in the process which had led to this thesis. The company of my mother through hard times, if only in spirit, was an important psychological factor. For her sacrifices throughout her life, she cannot be less than a full partner in my success. I also acknowledge the love and dedication that my wife and stepdaughters have given me throughout the PhD process. I gratefully acknowledge my supervisors, Professor Klaus Bosselmann and associate Professor Marjan van den Belt, and the examiners, especially Dr Joel Colon-Rios, for their valuable comments on earlier drafts of this thesis. Last but not least, I am indebted to the anonymous referees of the research papers that formed the basis for this thesis. Their feedback has been invaluable. While lingering for the visitors, Benjamen Franklen Gussen Darling Heights, Qld, Australia 1 January, 2015 7 8 Table of Contents ABSTRACT ..................................................................................................................................... 1 ACKNOWLEDGEMENTS ............................................................................................................. 7 List of Figures ................................................................................................................................ 13 List of tables ................................................................................................................................... 14 Glossary .......................................................................................................................................... 15 PREFACE ...................................................................................................................................... 18 PART I PRELUDE .................................................................................................................. 25 1. The Marginalisation of Localism in Current Responses to the Ecological Crisis ................ 27 1.1. Introduction .......................................................................................................................... 27 1.2. Delocalisation and the emergence of the ecological crisis ................................................... 32 1.3. Localism in the (historical and modern) responses to the ecological crisis ......................... 35 1.4. Conclusion: Lessons for New Zealand ................................................................................. 43 PART II MODEL BUILDING AND ANALYSIS ................................................................... 47 2. The Auxilium Model: Understanding Subsidiarity through Social Trust ............................ 49 2.1. Introduction .......................................................................................................................... 49 2.2. Two competing paradigms ................................................................................................... 52 2.3. The calculus of trust ............................................................................................................. 54 2.4. An application of the auxilium model: Roberts v Hopwood ................................................ 61 2.5. Implications of trust in constitutional law: The subsidiarity principle ................................. 64 2.6. Conclusion: Towards a unifying theory of public law ......................................................... 67 3. Hayek, Kohr, Jacobs and the Complexity Ansatz ................................................................ 71 9 3.1. Introduction .......................................................................................................................... 71 3.2. A diagnostic ansatz ............................................................................................................... 71 3.3. Symmetry breaking and the production of scale .................................................................. 75 3.4. The production of scale and complexity ............................................................................... 84 3.5. Complexity and collapse ....................................................................................................... 91 3.6. Conclusion: Evading collapse ............................................................................................... 99 PART III SUBSIDIARITY IN NEW ZEALAND .................................................................... 105 4. Subsidiarity as a Constitutional Principle in New Zealand ................................................ 107 4.1. Introduction ........................................................................................................................ 107 4.2. Subsidiarity: A rendition..................................................................................................... 108 4.3. Subsidiarity as the hypostasis of Te Tiriti o Waitangi ........................................................ 117 4.4. Subsidiarity and the New Zealand Constitution Acts of 1846 and 1852 ............................ 120 4.5. Conclusion: Subsidiarity and New Zealand’s constitutional arrangements ....................... 130 5. Lessons from the Constitutional Morphogenesis of New England and New Zealand ....... 135 5.1. Introduction ........................................................................................................................ 135 5.2. Insights from Buchanan’s constitutional political economy ............................................... 136 5.3. Subsidiarity in New England and New Zealand ................................................................. 143 5.4. Centralisation in New England and New Zealand .............................................................. 148 5.5. The economic evidence today ............................................................................................ 151 5.6. Conclusion: New England as inspiration for New Zealand subsidiarity ............................ 154 PART IV EVOLUTIONARY IMPLICATIONS OF SUBSIDIARITY ................................... 157 6. Subsidiarity