Fifth National Government of New Zealand

John Key, MP, Prime Minister of New Zealand and leader of the National Party.

The Fifth National Government of New Zealand is the current government of New Zealand, taking office on 19 November 2008. It is led by Prime Minister John Key.

After the 2008 general election the National Party and its allies were able to form a government, taking over from Helen Clark's Fifth Labour Government. It was subsequently reformed after the 2011 general election with a reduced number of seats, and after the 2014 general election with a reduced share of the party vote but the same number of seats. The Government has confidence and supply agreements with the following parties: ACT, United Future, and the Māori Party – which gives the Government a majority on major legislation. The National Party also signed a memorandum of understanding with the Green Party after the 2008 election, but this lapsed in 2011 and was not renewed.

Significant policies

Economic

The Government was elected in the context of the late 2000s recession.

• The Fifth Labour Government's Emissions Trading Scheme was delayed and the Emissions Trading Scheme Review Committee was set up to review the New Zealand Emissions Trading Scheme^[1] in accordance with the coalition agreement with the ACT Party.^[2] In November 2009, an amended version of the New Zealand Emissions Trading Scheme was adopted.^[3]
• Personal tax cuts, reducing taxes on all income; the top personal tax rate was lowered from 39% to 38% and then 33%.^[4]
• Abolished the Loss Attributing Qualifying Company (LAQC) tax structure, which had allowed individuals (mainly property investors) to reduce their individual income tax by off setting their LAQCs losses (the Look-through company structure replaced LAQCs, but without the tax benefits).
• Increased GST from 12.5% to 15% in October 2010.
• Increased the minimum wage from $12.00 per hour to $13.00 per hour in its first term, and to $14.25 in its second term.^[5] This represents a nominal 3.1% average annual increase, significantly lower than the previous government's nominal 7.9% annual average increase.
• Suspended payments to the New Zealand Superannuation Fund.^[6]
• Introduced the nine-day working fortnight for businesses who were considering laying off staff.
• Capped the minimum employers' contributions to KiwiSaver at 2%, the amount was due to increase to 4% by 2011. Employees now have the option to contribute as little as 2% of their income to KiwiSaver where previously the smallest contribution amount was 4%. The minimum employee and minimum employer contributions were raised to 3% in April 2013.
• Introduced the "mixed ownership model" plan, in which the Government planned to reduce its share in Genesis Energy, Meridian Energy, Mighty River Power and Solid Energy from 100% to 51% and Air New Zealand from 74% to 51%, and sell off the remainder. The plans to sell down Solid Energy were later axed due to the company's poor financial position. A citizens-initiated referendum on the sell-downs returned a 67.3% vote in opposition (on a turnout of 45.1%).

Constitution

• Repealed the Electoral Finance Act 2007^[7]
• Introduced the Governor-General Act 2010, to reform the Governor-General's salary and allowances.^[8]
• A second referendum alongside the 2011 election on the voting system, and after the majority voted in the referendum to retain the existing mixed member proportional system, an independent review on the workings of the MMP system.
• A Constitutional Review (as part of confidence and supply agreement with the Māori Party) starting in 2011.^[9]

Social policy

• Introduced the Employment Relations Amendment Act 2008 (the "90-day working bill") in December 2008 which allowed employers with less than 20 staff to dismiss an employee within the first 90 days of employment for no particular reason.^[10] In 2010 the bill was extended to all employers.
• Allowed employees to cash in their fourth week of annual leave, employees can now take 3 weeks holiday and be paid for the fourth while still working.^[11] The fourth week of annual leave was introduced by the previous government.
• A lifetime limit on student loans was introduced: if a student has studied more than 7 EFTS within their lifetime the student can no longer take out any further loans. Students receiving New Zealand Superannuation Fund payments or Veterans Pension can no longer receive the Student Allowance at the same time. Students are now required to pass more than half of their studies each year to receive a Student Loan or Allowance the following year, previously this requirement only affected the Student Allowance.
• Reformed social security benefits by consolidating seven major benefits into three new ones.

National identity

• Restored titles ('Sir' and 'Dame') in the New Zealand honours system.^[12]
• Officially ended appointments to the Privy Council of the United Kingdom, which would have meant that no new designations of "The Right Honourable" would be made, and that instead minsters will be known simply as "The Honorable".^[13] However, on 2 August 2010 it was announced by the Queen of New Zealand that those appointed to offices of Governor-General, Prime Minister, Speaker, and Chief Justice would be given the title "The Right Honourable" for life, "to preserve an important mark of distinction for the holder's of the nation's highest public offices".^[14] Prime Minister John Key said "he appreciated the title" and also stated "Her Majesty believes it is appropriate also to acknowledge the service of the Governor-General, the Queen's representative in New Zealand, the Speaker, the highest officer in the House of Representatives, and the Chief Justice, the head of the judicial branch of government".^[15]
• Two referendums on flag change; one to determine a possible alternative, the other to decide whether to change or not.

Education

• Introduction of National Standards for primary and intermediate school children.
• Planned to change teacher to student ratios in the 2012 Budget, but withdrew two weeks later due to miscalculations regarding the effect of changes on intermediate schools and public opposition.^[16]
• Removal of all student allowances for postgraduate study at University.
• Rejected a bill for state-funded breakfast and lunch to be provided to students at all low-decile schools.^[17]

Local government

In 2009 and 2010, the Government merged four city councils, three district councils and the Auckland Regional Council into one unitary "Super City". The Government's action differed from the recommendations of the Royal Commission on Auckland Governance.^[18]

In March 2010, the Government removed the Environment Canterbury's Councillors and replaced them with appointed commissioners. The elections in 2010 of Environment Canterbury councillors which were pending in 2013 were postponed to ensure a Water Management Plan for Canterbury would be created.^[19]

Health

• Increased amounts of elective surgery^[20]

History

Formation

The 2008 election saw the Fifth National Government elected to power with 44.93 per cent of the popular vote, ending nine years of Labour government. National formed a minority government with confidence-and-supply support from the ACT, United Future and Māori parties. The Governor-General swore Key in as New Zealand's 38th Prime Minister on 19 November 2008.

2011 election

The 2011 election saw the Fifth National Government returned again and National in government with confidence-and-supply from the ACT, United Future and Maori parties, but with a reduced share of the votes and share of the seats in the House of Representatives.

The National Party increased its share of the party vote to 47.3 percent, but only increased one seat to 59 due to a reduced wasted vote (down to 3.4 percent from 6.5 percent in 2008), largely stemmed from the return of the New Zealand First party to Parliament after a one term absence. National's increased share of votes however largely came at the expense of other support parties, which saw decreases in vote share and seats. ACT only gained a third of its 2008 vote with 1.07 percent, reducing its seats from five to just one, while the defection of Hone Harawira to form the Mana Party saw the Maori Party's share of vote split, reducing the party to 1.43 percent and reducing the number of seats to three. The United Future Party saw its party vote drop by a quarter to 0.60 percent, but retained its single seat. The reformed Government therefore held 50.41 percent of the party vote and 64 of the 121 seats in Parliament.

2014 election

The 2014 election saw the Fifth National Government returned again; gaining a plurality with 47.0% of the party vote and 60 of the 121 seats. On election night counts the party appeared to hold the first majority since 1994 with 61 seats, but lost a list seat (for Maureen Pugh) to the Green Party on the official count (including special votes) of the party vote.^[21] National re-entered confidence and supply agreements with the centrist United Future,^[22] the classical liberal ACT Party,^[23] and the indigenous rights-based Māori Party^[24] to form a minority government.

Subsequently with the sudden resignation of Mike Sabin the National MP for Northland in January 2015, and his replacement in the subsequent 2015 by-election by New Zealand First leader Winston Peters, the government became more dependent on the support parties.

Electoral results

The following table shows the total votes* for National, plus parties supporting the National-led government. For more details of electoral results, see the relevant election articles.

* 'Votes' means party votes only. 'Seats' means both list and electorate seats.

• Following the 2008, 2011 and 2014 elections, National gained support on matters of confidence and supply from ACT, the Māori Party and United Future.

Prime Minister

John Key has been Prime Minister since the government was elected in the 2008 elections.

Cabinet Ministers

Ministers outside Cabinet

References

External links

• National's Ministry focused on growth, prosperity Beehive Press Release, 19 November 2009.
• National-ACT agreement announced Beehive Press Release, 19 November 2009.
• National-United Future agreement announced Beehive Press Release, 19 November 2009.
• National-Maori Party agreement announced Beehive Press Release, 19 November 2009.
• Memorandum of Understanding between the New Zealand National Party and the Green Party of Aotearoa 8 April 2009.

Governments of New Zealand
Executives without power	Fitzgerald Executive Forsaith Executive
Responsible government	Sewell Fox (first) Stafford (first) Fox (second) Domett Whitaker–Fox Weld Stafford (second) Fox (third) Stafford (third) Waterhouse Fox (fourth) Vogel (first) Pollen Vogel (second) Continuous Ministry Atkinson (first) Atkinson (second) Grey Hall Whitaker Atkinson (third) Stout–Vogel (first) Atkinson (fourth) Stout–Vogel (second) Atkinson (fifth) Ballance
Governments along party lines	Liberal Reform United United-Reform Coalition First Labour First National Second Labour Second National Third Labour Third National Fourth Labour Fourth National Fifth Labour Fifth National