The Royal Commission recommended the inclusion of an alternative threshold for representation because it believed its use would make it easier for smaller parties to gain representation, reduce wasted votes and contribute to the overall proportionality and diversity of a Parliament.
Great intentions undoubtedly, however I feel this rule has failed us as evidenced by the 2008 election, when Act with 3.65% of the vote won five seats and NZ First with 4.07% won none. Act was entitled to one MP as it had won an electorate seat. But the allocation of four extra seats when NZ First had won a greater proportion of the popular vote made a mockery of the system.
Removing the rule would also hopefully stop the prostitution of democracy as evidenced in Epsom in 2008, 2011 and Coromandel in 1999.