Fourth National Government of New Zealand
Encyclopedia
The Fourth National Government of New Zealand was the government of New Zealand
Governments of New Zealand
The Government of New Zealand , formally Her Majesty's Government in New Zealand, is based on the Westminster system of responsible government...

 from 2 November 1990 to 27 November 1999. Following in the footsteps of the previous Labour government
Fourth Labour Government of New Zealand
The Fourth Labour Government of New Zealand was the government of New Zealand from 26 July 1984 to 2 November 1990. It enacted major social and economic reforms, including reformation of the tax system. The economic reforms were known as Rogernomics after Finance Minister Roger Douglas...

, the fourth National government embarked on an extensive programme of spending cuts. This programme, popularly known as 'Ruthanasia
Ruthanasia
Ruthanasia, a portmanteau of "Ruth" and "euthanasia", is the pejorative name given to the period of free-market economic reform conducted during the first term of the fourth National government in New Zealand, from 1990 to 1993...

' after Finance Minister
Minister of Finance (New Zealand)
The Minister of Finance is a senior figure within the government of New Zealand. The position is often considered to be the most important Cabinet role after that of the Prime Minister....

 Ruth Richardson
Ruth Richardson
Ruth Richardson served as New Zealand's Minister of Finance from 1990 to 1993, and is known for her strong pursuit of free-market economic reforms .-Early life:...

, involved the reduction of social welfare benefits and the introduction of fees for healthcare and tertiary education. This was highly controversial, as was the retention of the superannuation surtax
Surtax
A surtax may be a tax levied upon a tax, or a tax levied upon income.-United Kingdom:In 1929, Supertax was renamed Sur-tax...

, a tax on old age pensions which National
New Zealand National Party
The New Zealand National Party is the largest party in the New Zealand House of Representatives and in November 2008 formed a minority government with support from three minor parties.-Policies:...

 had promised to abolish. Also controversial, but in a different way, was the beginning of the Treaty settlement process
Treaty of Waitangi claims and settlements
Treaty of Waitangi claims and settlements have been a significant feature of New Zealand race relations and politics since 1975. Over the last 30 years, New Zealand governments have increasingly provided formal legal and political opportunity for Māori to seek redress for breaches by the Crown of...

.

Extreme dissatisfaction with both National and Labour
New Zealand Labour Party
The New Zealand Labour Party is a New Zealand political party. It describes itself as centre-left and socially progressive and has been one of the two primary parties of New Zealand politics since 1935....

 led to the reform of the electoral system: the introduction of proportional representation
Proportional representation
Proportional representation is a concept in voting systems used to elect an assembly or council. PR means that the number of seats won by a party or group of candidates is proportionate to the number of votes received. For example, under a PR voting system if 30% of voters support a particular...

 in the form of MMP
Mixed member proportional representation
Mixed-member proportional representation, also termed mixed-member proportional voting and commonly abbreviated to MMP, is a voting system originally used to elect representatives to the German Bundestag, and nowadays adopted by numerous legislatures around the world...

. The first MMP election was held in 1996, and resulted in a coalition between National and New Zealand First
New Zealand First
New Zealand First is a political party in New Zealand that was founded in 1993, following party founder Winston Peters' resignation from the National Party in 1992...

. This dissolved in 1998, and the consequent cobbling together of another coalition between National and the deserters of various parties contributed to the government's defeat in 1999.

Economic

  • 'Economic Reform'


On taking power, National discovered that the Bank of New Zealand
Bank of New Zealand
Bank of New Zealand is one of New Zealand’s largest banks and has been operating continuously in the country since the first office was opened in Auckland in October 1861 followed shortly after by the first branch in Dunedin in December 1861...

 needed large and immediate government aid, and that outgoing Finance Minister David Caygill
David Caygill
David Caygill, CBE is a former New Zealand politician. After being New Zealand's youngest city councillor at 22 , he was an MP from 1978 to 1996, representing the Labour Party...

's predictions of a small surplus
Economic surplus
In mainstream economics, economic surplus refers to two related quantities. Consumer surplus or consumers' surplus is the monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay...

 were very wrong. These problems gave Richardson the opportunity and caucus
Caucus
A caucus is a meeting of supporters or members of a political party or movement, especially in the United States and Canada. As the use of the term has been expanded the exact definition has come to vary among political cultures.-Origin of the term:...

 support for major cost-cutting.

Richardson's first budget, delivered in 1991 and named by the media as 'the mother of all budgets', introduced major cuts in social welfare spending. Unemployment and other benefits were substantially cut, and 'market rents' were introduced for state houses
State housing
State housing is the system of public housing offered to New Zealand residents on low to moderate incomes. Some 66,000 houses are managed by Housing New Zealand Corporation, most of which are owned by the government.-The Liberal Government:...

, in some cases tripling the rents of low-income people.http://www.nzhistory.net.nz/culture/we-call-it-home/the-state-steps-in-and-out In combination with the high employment resulting from some of the 1980s reforms, this caused poverty to increase, and foodbanks and soup kitchens appeared in New Zealand for the first time since the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...

 of the 1930s.

The government also felt that market forces should be introduced into the running of hospitals, schools and universities. User charges were introduced in universities and hospitals for the first time, and educational institutes were instructed to compete with each other for students. Although not a policy as such, the government's retention of the superannuation surtax
Surtax
A surtax may be a tax levied upon a tax, or a tax levied upon income.-United Kingdom:In 1929, Supertax was renamed Sur-tax...

 (a tax on pensions), despite promising to abolish it, was also significant.

In some areas, governmental standards were relaxed in the expectation that market forces would assure quality via competition, such as in the Building Act 1991 - which was seen as one of the steps leading to the leaky homes crisis
Leaky homes crisis
The leaky homes crisis is an ongoing construction and legal crisis in New Zealand, in which many thousands of newly constructed houses and apartment buildings built in the 1990s and early 2000s suffered from severe weathertightness problems...

 in the following decade.

'Ruthanasia
Ruthanasia
Ruthanasia, a portmanteau of "Ruth" and "euthanasia", is the pejorative name given to the period of free-market economic reform conducted during the first term of the fourth National government in New Zealand, from 1990 to 1993...

' (named after Ruth Richardson) was massively unpopular, especially following the equally dramatic reforms of the 1980s. As a result, the government came extremely close to losing the 1993 election
New Zealand general election, 1993
The 1993 New Zealand general election was held on 6 November 1993 to determine the composition of the 44th New Zealand Parliament. It saw the governing National Party, led by Jim Bolger, win a second term in office, despite a major swing back towards the Labour Party. The new Alliance and New...

. Subsequently, Richardson was replaced as Finance Minister by Bill Birch
Bill Birch
Sir William Francis Birch, GNZM , usually known as Bill Birch, is a former New Zealand politician. He served as Minister of Finance for several years in the fourth National government.-Early life:...

, and left politics. National's period of major economic reform was over.
  • Sale of state-owned enterprises


The government continued the previous Labour governments' controversial sale of State-owned enterprises. Following the near collapse of the Bank of New Zealand
Bank of New Zealand
Bank of New Zealand is one of New Zealand’s largest banks and has been operating continuously in the country since the first office was opened in Auckland in October 1861 followed shortly after by the first branch in Dunedin in December 1861...

 in 1990, the Bank was sold in 1992 to National Australia Bank
National Australia Bank
National Australia Bank is one of the four largest financial institutions in Australia in terms of market capitalisation and customers. NAB is ranked 17th largest bank in the world measured by market capitalisation...

 Group. In 1993 the government sold New Zealand Rail Limited
Tranz Rail
Tranz Rail, formally Tranz Rail Holdings Ltd , was the main rail operator in New Zealand from 1991 until it was purchased by Toll Holdings in 2003.- Formation :...

 to a consortium led by Faye Richwhite and Company
Fay Richwhite
Fay, Richwhite & Company is the investment vehicle of Switzerland-based New Zealand merchant bankers Sir Michael Fay and David Richwhite.The firm was the prime focus of the "Winebox Inquiry" which dealt with, among other things, tax-avoidance arrangements in the Cook Islands...

 for $400 million. In 1996 the government split the New Zealand Ministry of Works
New Zealand Ministry of Works
The New Zealand Ministry of Works, formerly the Department of Public Works and sometimes referred to as the Public Works Department or PWD, was founded in 1876 and disestablished and privatised in 1988...

 between consulting (Opus International Group) and construction (Works Infrastructure
Works Infrastructure
Downer EDI Works Limited is a large New Zealand engineering and construction company owned by the Australian Downer EDI company.-History:...

) arms, selling both branches. The same year the commercial arm of Radio New Zealand
Radio New Zealand
Radio New Zealand is a New Zealand public service radio broadcaster and Crown entity formed by the Radio New Zealand Act 1995. It operates news, current affairs and arts network Radio New Zealand National and classical music and jazz network Radio New Zealand Concert with full government funding...

 was sold to Clear Channel
Clear channel
A clear-channel station is an AM band Radio station in North America that has the highest protection from interference from other stations, particularly concerning night-time skywave propagation. Usually known as class A stations since 1982, they are occasionally still referred to by their former...

 forming The Radio Network
The Radio Network
The Radio Network is the wholly owned New Zealand division of radio company Australian Radio Network, a partnership of Clear Channel and APN News & Media. It is the owner and operator of the Newstalk ZB News service and nationwide Newstalk ZB, Classic Hits, ZM, Coast, Hauraki, Easy Mix, Flava and...

. In 1997 electricity generator Contact Energy
Contact Energy
Contact Energy Limited is a New Zealand electricity generator, natural gas wholesaler and electricity, natural gas, and LPG retailer.The company is the second-largest electricity generator in New Zealand , generating 24 percent of New Zealand's electricity in the year ending 31 December 2009, and...

, formerly a part of the Electricity Corporation of New Zealand
Electricity Corporation of New Zealand
The Electricity Corporation of New Zealand Ltd is a New Zealand state-owned enterprise formed on 1 April 1987, as a transition entity in the process of deregulating the New Zealand electricity market...

 was floated on the New Zealand Stock Exchange. In 1998 the government sold its 51.6% share in Auckland International Airport
Auckland International Airport
Auckland Airport is the largest and busiest airport in New Zealand with over 13 million passengers a year, expected to more than double by 2025...

 by way of a public float. At that time, the Company had some 67,000 shareholders, mainly New Zealanders holding small parcels of shares.

The government also corporatised a number of government departments, or restructured state-owned enterprises with the intention of privatising them at a later date. For example, in 1998 the Electricity Corporation of New Zealand
Electricity Corporation of New Zealand
The Electricity Corporation of New Zealand Ltd is a New Zealand state-owned enterprise formed on 1 April 1987, as a transition entity in the process of deregulating the New Zealand electricity market...

 was divided into a further three generators, Meridian Energy
Meridian Energy
Meridian Energy Limited is a New Zealand state-owned electricity generator and retailer. The company generates the largest proportion of New Zealand's electricity, generating 32 percent of the country's electricity in the year ending 31 December 2009, and is the fourth-equal largest retailer, with...

, Mighty River Power and Genesis Power. In 1999 the Accident Compensation Corporation
Accident Compensation Corporation
The Accident Compensation Corporation is a New Zealand Crown entity responsible for administering the Accident Compensation Act 2001. The Act provides support to citizens, residents, and temporary visitors who have suffered personal injuries....

 was exposed to competition, albeit only for one year. Plans to corporatise Transit New Zealand
Transit New Zealand
Transit New Zealand was, from 1989 to 2008, the New Zealand Crown entity responsible for operating and planning the New Zealand State Highway network...

 never came to fruition however.
  • The Employment Contracts Act


This was a major overhaul of employment law, which abolished collective bargaining
Collective bargaining
Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions...

 and seriously weakened the power of unions.

Constitutional

  • Referendum

The government passed the Citizens Initiated Referenda Act 1993. This Act allowed for non-binding referendums to be held on the petition of citizens.
  • Electoral reform


By 1990, many New Zealanders were already seriously dissatisfied with their First Past the Post (FPP) electoral system, which had twice (in 1978 and 1981) led to a party losing the popular vote but winning the election. National's continuation of Labour's reforms despite a clear indication that the electorate was sick of reform intensified this feeling. National had promised a referendum on the electoral system, and having angered voters in so many other ways, felt that it would be unwise to break this promise. In the non-binding 1992 referendum an overwhelming majority of those who voted opted to replace FPP with a form of proportional representation
Proportional representation
Proportional representation is a concept in voting systems used to elect an assembly or council. PR means that the number of seats won by a party or group of candidates is proportionate to the number of votes received. For example, under a PR voting system if 30% of voters support a particular...

, MMP
Mixed member proportional representation
Mixed-member proportional representation, also termed mixed-member proportional voting and commonly abbreviated to MMP, is a voting system originally used to elect representatives to the German Bundestag, and nowadays adopted by numerous legislatures around the world...

. A binding referendum was held the following year in which a small majority voted for MMP. The first MMP election occurred in 1996.

Treaty of Waitangi

In 1985 the Labour government had enabled the Waitangi Tribunal
Waitangi Tribunal
The Waitangi Tribunal is a New Zealand permanent commission of inquiry established under the Treaty of Waitangi Act 1975...

 to investigate breaches of the Treaty of Waitangi
Treaty of Waitangi
The Treaty of Waitangi is a treaty first signed on 6 February 1840 by representatives of the British Crown and various Māori chiefs from the North Island of New Zealand....

 dating back to 1840. By the early 1990s the Tribunal had made some major reports, including those into the Waikato
Waikato (iwi)
Waikato is a Māori iwi from the Waikato region of the North Island of New Zealand. Actually a confederation of smaller tribes, it is also part of the larger confederation of Tainui, consisting of tribes descended from Polynesian migrants who arrived in New Zealand on the Tainui canoe...

-Tainui
Tainui
Tainui is a tribal waka confederation of New Zealand Māori iwi. The Tainui confederation comprises four principal related Māori iwi of the central North Island of New Zealand: Hauraki, Ngāti Maniapoto, Ngāti Raukawa and Waikato...

 and Ngai Tahu
Ngai Tahu
Ngāi Tahu, or Kāi Tahu, is the principal Māori iwi of the southern region of New Zealand, with the tribal authority, Te Rūnanga o Ngāi Tahu, being based in Christchurch and Invercargill. The iwi combines three groups, Kāi Tahu itself, and Waitaha and Kāti Mamoe who lived in the South Island prior...

 claims. An Office of Treaty Settlements
Office of Treaty Settlements
The Office of Treaty Settlements is an office within the Ministry of Justice tasked with negotiating treaty settlements...

 was established and substantial resources and sums of money were given to various iwi
Iwi
In New Zealand society, iwi form the largest everyday social units in Māori culture. The word iwi means "'peoples' or 'nations'. In "the work of European writers which treat iwi and hapū as parts of a hierarchical structure", it has been used to mean "tribe" , or confederation of tribes,...

 in compensation for past wrongs. An attempt was made in 1995 to bring the process to an end with a billion dollar 'fiscal envelope' which was to have settled all outstanding grievances in one go. However this was rejected by Māori.

Social policy

  • Human Rights Act

In 1993, the Human Rights Act
New Zealand Human Rights Act
The Human Rights Act 1993 is an Act of the Parliament of New Zealand which deals with discrimination. It was a consolidation and amendment of the Race Relations Act 1971 and the Human Rights Commission Act 1977. It passed into law 1 February 1994...

 was passed, outlawing discrimination on the grounds of sexuality. The government was excluded from the provisions of the Act, probably due to concern over the possibility of gay marriage
Same-sex marriage in New Zealand
New Zealand does not currently allow same-sex marriages, but allows civil unions that provide virtually all the rights and responsibilities of marriage...

. Several National MPs, most prominently Police Minister John Banks
John Banks (New Zealand)
John Archibald Banks, CNZM QSO is a New Zealand politician. He served as Mayor of Auckland City for two terms, from 2001 to 2004, and from 2007 to 2010...

, and many National supporters, opposed the Act on religious grounds.
  • Work and Income

Following National's coalition with New Zealand First in 1996, the Department of Social Welfare and the New Zealand Employment Service were merged to form Work and Income New Zealand (known by its acronym, WINZ). Alongside these reforms was the introduction of a work for the dole scheme, known as the community wage.

Environment

  • Resource Management Act
    Resource Management Act
    The Resource Management Act passed in 1991 in New Zealand is a significant, and at times, controversial Act of Parliament. The RMA promotes the sustainable management of natural and physical resources such as land, air and water...


The 'RMA' completely overhauled New Zealand's system of planning permission, uniting laws regarding the environment, zoning, land and water use and many other issues into one piece of legislation requiring developers (including state agencies) to have regard for environmental impacts and Māori and heritage values. Critics have since argued that the RMA gives too much power to opponents of development, who can slow down or halt projects even if they have no valid objections. Others have seen the Act as a welcome means to prevent the destruction of sacred sites, heritage buildings and fragile ecosystems.

Formation

The Fourth National government was elected in a landslide victory
Landslide victory
In politics, a landslide victory is the victory of a candidate or political party by an overwhelming margin in an election...

 in the 1990 general election, winning nearly half the popular vote and more than two-thirds of the seats in parliament. However, the result can be seen more as a rejection of the fourth Labour government
Fourth Labour Government of New Zealand
The Fourth Labour Government of New Zealand was the government of New Zealand from 26 July 1984 to 2 November 1990. It enacted major social and economic reforms, including reformation of the tax system. The economic reforms were known as Rogernomics after Finance Minister Roger Douglas...

 than an endorsement of National. The Labour government had enacted sweeping economic and social reforms but the extent of these had split the party, causing serious public conflict between senior government members, and two leadership changes in a year and a half. This combined with a widespread feeling that the reforms had gone far enough to ensure a change of government. Having rejected reformist Labour, and having been led to believe that National would not follow in its footsteps, many voters were extremely angry when the new government went on to make further reforms along the same lines.

The 1993 election

The 1993 election results were primarily an expression of voter dissatisfaction with both the major parties. National and Labour each received about a third of the popular vote, while the Alliance
Alliance (New Zealand political party)
The Alliance is a left-wing political party in New Zealand. It was formed in 1991, and was influential in the 1990s, but has since declined and has no representation in parliament. It suffered a major setback after Jim Anderton, the party's leader, left the party in 2002, taking several of the...

 and New Zealand First
New Zealand First
New Zealand First is a political party in New Zealand that was founded in 1993, following party founder Winston Peters' resignation from the National Party in 1992...

 parties, led by MPs who had angrily left Labour and National, respectively, received 18.2 and 8.4% of the popular vote. However the first past the post electoral system meant that the two minor parties received only two seats each, while National got 50 seats and Labour, with less than one percent less of the popular vote, got 45. Voter dissatisfaction with the electoral system was reflected in the simultaneous electoral reform referendum, which resulted in New Zealand adopting the Mixed Member Proportional electoral system for future general elections.

The 1996 election

This was New Zealand's first election under the Mixed Member Proportional (MMP) electoral system.
In the lead-up to the election, many National and Labour MPs noted their parties' unpopularity and felt that they would do better by forming or joining another party. Between the 1993 and 1996 elections, nine of National's 50 MPs defected to or formed other parties. However only one of these (Peter McCardle
Peter McCardle
Peter McCardle , is a New Zealand politician. He was an MP from 1990 to 1999, first as a member of the National Party, then as a member of New Zealand First, and finally as an independent...

, who had joined New Zealand First
New Zealand First
New Zealand First is a political party in New Zealand that was founded in 1993, following party founder Winston Peters' resignation from the National Party in 1992...

) was re-elected in 1996. National was able to complete its second term in government due to confidence and supply
Confidence and supply
In a parliamentary democracy confidence and supply are required for a government to hold power. A confidence and supply agreement is an agreement that a minor party or independent member of parliament will support the government in motions of confidence and appropriation votes by voting in favour...

 agreements with minor parties.

Both major parties continued to be distrusted by many voters. Both experienced a drop in the percentage of the popular vote, although this was probably due primarily to the new electoral system. Although National won more seats in parliament than all the minor parties combined, it lacked the numbers to form a majority government. In order to retain power it needed to form a coalition
Coalition government
A coalition government is a cabinet of a parliamentary government in which several political parties cooperate. The usual reason given for this arrangement is that no party on its own can achieve a majority in the parliament...

 with another party.

The National-New Zealand First Coalition

Following the 1996 election neither National nor Labour had a majority of the seats in parliament, meaning that a coalition government
Coalition government
A coalition government is a cabinet of a parliamentary government in which several political parties cooperate. The usual reason given for this arrangement is that no party on its own can achieve a majority in the parliament...

 needed to be formed. National and Labour each had 'natural coalition partners' in the form of ACT and the Alliance
Alliance (New Zealand political party)
The Alliance is a left-wing political party in New Zealand. It was formed in 1991, and was influential in the 1990s, but has since declined and has no representation in parliament. It suffered a major setback after Jim Anderton, the party's leader, left the party in 2002, taking several of the...

 respectively. However in the 120 seat parliament, National and ACT together had only 52 seats and Labour and the Alliance only 50. This made New Zealand First
New Zealand First
New Zealand First is a political party in New Zealand that was founded in 1993, following party founder Winston Peters' resignation from the National Party in 1992...

, with 17 seats, the 'kingmaker
Kingmaker
Kingmaker is a term originally applied to the activities of Richard Neville, 16th Earl of Warwick — "Warwick the Kingmaker" — during the Wars of the Roses in England. The term has come to be applied more generally to a person or group that has great influence in a royal or political succession,...

'. The other party in parliament, United
United New Zealand
United New Zealand was a centrist political party in New Zealand founded in 1995. It merged with the Christian-based Future New Zealand party to form the United Future New Zealand party in 2000.-History:...

, had only one seat and so was irrelevant.

Prior to the election, New Zealand First leader Winston Peters
Winston Peters
Winston Raymond Peters is a New Zealand politician and leader of New Zealand First, a political party he founded in 1993. Peters has had a turbulent political career since entering Parliament in 1978. He served as Minister of Maori Affairs in the Bolger National Party Government before being...

 had created the impression that he was opposed to National and that voting for New Zealand First would change the government. However, after a month and a half of coalition negotiations with both National and Labour, Peters announced that his party would coalesce with National. This deeply angered many New Zealand First supporters.

Peters' decision could be justified by the fact that National had won more votes than Labour, but it is generally considered that National was willing to grant more policy concessions that Labour, who may have taken it for granted that he would go into government with them. As part of the coalition agreement, Peters was made Treasurer, a newly created position superior to but co-existing with that of Finance Minister
Minister of Finance (New Zealand)
The Minister of Finance is a senior figure within the government of New Zealand. The position is often considered to be the most important Cabinet role after that of the Prime Minister....

. Various other New Zealand First MPs were given Ministerial or Associate Ministerial positions.

Within two years the coalition was showing major fractures. Several New Zealand First MPs had gone into politics specifically to combat some of National's early 1990s policies, and were unhappy at being made to perpetuate them. Neil Kirton
Neil Kirton
Neil Kirton is a former New Zealand politician. He was an MP from 1996 to 1999, first as a member of the New Zealand First party and then as an independent...

, Associate Minister of Health, was particularly unhappy, and was fired from his position in 1997. He then led a campaign within New Zealand First to cancel the coalition and seek an arrangement with Labour.

By 1998, Peters had become aware that the coalition had lost his party so much support that it might not be returned to parliament in the following year's election. National's replacement of Jim Bolger
Jim Bolger
James Brendan "Jim" Bolger, ONZ was the 35th Prime Minister of New Zealand from 1990 to 1997. Bolger was elected on the promise of delivering a "Decent Society" following the previous Labour government's economic reforms, known as Rogernomics...

, with whom he had a good working relationship, with Jenny Shipley
Jenny Shipley
Dame Jenny Shipley, DNZM , served as the 36th Prime Minister of New Zealand from December 1997 to December 1999, the first woman to hold this office and the first, and to date only, woman to serve as parliamentary leader of the National Party of New Zealand.-Early life:Shipley was born as Jennifer...

 increased the stresses on the coalition. In August 1998, Peters was fired from Cabinet after a dispute over the privatisation of Wellington International Airport
Wellington International Airport
Wellington International Airport is an international airport located in the suburb of Rongotai in Wellington, the capital city of New Zealand. It is a secondary hub and focus city for Air New Zealand and its subsidiaries...

. He cancelled the coalition shortly afterwards. However several New Zealand First MPs, including most of the Ministers, opted to leave the party and continue to support National. They, mostly now in a new party called Mauri Pacific
Mauri Pacific
Mauri Pacific was a short-lived political party in New Zealand. It was formed in 1998 by five former members of the New Zealand First party. It has often been described as a Māori party. Officially, Mauri Pacific was a multiculturalist party, welcoming anyone who supported racial and cultural...

, and a renegade Alliance MP, Alamein Kopu
Alamein Kopu
- Birth and early life :Kopu was raised in Opotiki. Her family was not wealthy, and Kopu characterises her youth as containing "much hardship". In 1978, her family moved to Sydney, Australia. In Australia, Kopu became involved with community programs aimed at drug users and prostitutes, something...

, formed a new coalition which allowed National to retain power until the 1999 election.

Defeat

By 1999, National was holding onto power via an unstable coalition of former New Zealand First (and one Alliance) MPs. By contrast, Labour had established a friendly working relationship with the Alliance. Labour leader Helen Clark
Helen Clark
Helen Elizabeth Clark, ONZ is a New Zealand political figure who was the 37th Prime Minister of New Zealand for three consecutive terms from 1999 to 2008...

 had improved her public image, while Jenny Shipley
Jenny Shipley
Dame Jenny Shipley, DNZM , served as the 36th Prime Minister of New Zealand from December 1997 to December 1999, the first woman to hold this office and the first, and to date only, woman to serve as parliamentary leader of the National Party of New Zealand.-Early life:Shipley was born as Jennifer...

 had difficulty connecting with the public. A series of minor scandals concerning National's management of various state organisations helped Labour win nearly 39% of the party vote and 49 seats, compared to National's 30.5% (39 seats). Potential National allies Act and United
United New Zealand
United New Zealand was a centrist political party in New Zealand founded in 1995. It merged with the Christian-based Future New Zealand party to form the United Future New Zealand party in 2000.-History:...

 won only 9 and 1 seats, respectively.

Electoral results

MMP
Mixed member proportional representation
Mixed-member proportional representation, also termed mixed-member proportional voting and commonly abbreviated to MMP, is a voting system originally used to elect representatives to the German Bundestag, and nowadays adopted by numerous legislatures around the world...

 was introduced in the 1996 election, thus making comparisons between the first two and second two elections difficult.
Election Parliament Seats Total votes* Percentage Gain (loss) Seats won* Change Majority
1990
New Zealand general election, 1990
The 1990 New Zealand general election was held on 27 October to determine the composition of the 43rd New Zealand parliament. The governing Labour Party was defeated, ending its controversial two terms in office...

43rd
43rd New Zealand Parliament
The 43rd New Zealand Parliament was a term of the Parliament of New Zealand. Its composition was determined by the 1990 elections, and it sat until the 1993 elections....

97 47.82% +3.82% 67 +27 37
1993
New Zealand general election, 1993
The 1993 New Zealand general election was held on 6 November 1993 to determine the composition of the 44th New Zealand Parliament. It saw the governing National Party, led by Jim Bolger, win a second term in office, despite a major swing back towards the Labour Party. The new Alliance and New...

44th
44th New Zealand Parliament
The 44th New Zealand Parliament was a term of the Parliament of New Zealand. Its composition was determined by the 1993 elections, and it sat until the 1996 elections....

99 35.05% -12.77% 50 -17 1
1996
New Zealand general election, 1996
The 1996 New Zealand general election was held on 12 October 1996 to determine the composition of the 45th New Zealand Parliament. It was notable for being the first election to be held under the new Mixed Member Proportional electoral system, and produced a parliament considerably more diverse...

45th
45th New Zealand Parliament
The 45th New Zealand Parliament was a term of the Parliament of New Zealand. Its composition was determined by the 1996 elections, and it sat until the 1999 elections....

120 Nat 33.87%, NZF 13.35% Nat -1.18% Nat 44, NZF 17 Nat -6 1
1999
New Zealand general election, 1999
The 1999 New Zealand general election was held on 27 November 1999 to determine the composition of the 46th New Zealand Parliament. The governing National Party, led by Prime Minister Jenny Shipley, was defeated, being replaced by a coalition of Helen Clark's Labour Party and the smaller Alliance...

46th
46th New Zealand Parliament
The 46th New Zealand Parliament was a term of the Parliament of New Zealand. Its composition was determined by the 1999 elections, and it sat until the 2002 elections....

120 Nat 30.5%, NZF 4.26%** Nat -3.3%, NZF -9.09% Nat 39, NZF 5 Nat -5, NZF -12 -


* For 1996 and 1999 'votes' means party votes only. 'Seats' means both list and electorate seats.

** New Zealand First were not part of the government at the 1999 election, although several former New Zealand First MPs had formed a new coalition with National.

Prime ministers

Jim Bolger
Jim Bolger
James Brendan "Jim" Bolger, ONZ was the 35th Prime Minister of New Zealand from 1990 to 1997. Bolger was elected on the promise of delivering a "Decent Society" following the previous Labour government's economic reforms, known as Rogernomics...

 was Prime Minister
Prime Minister of New Zealand
The Prime Minister of New Zealand is New Zealand's head of government consequent on being the leader of the party or coalition with majority support in the Parliament of New Zealand...

 for the first two and a half terms of this government. Late in 1997, the caucus
Caucus
A caucus is a meeting of supporters or members of a political party or movement, especially in the United States and Canada. As the use of the term has been expanded the exact definition has come to vary among political cultures.-Origin of the term:...

 replaced him with Jenny Shipley
Jenny Shipley
Dame Jenny Shipley, DNZM , served as the 36th Prime Minister of New Zealand from December 1997 to December 1999, the first woman to hold this office and the first, and to date only, woman to serve as parliamentary leader of the National Party of New Zealand.-Early life:Shipley was born as Jennifer...

, who became New Zealand's first female Prime Minister.
  • Jim Bolger
    Jim Bolger
    James Brendan "Jim" Bolger, ONZ was the 35th Prime Minister of New Zealand from 1990 to 1997. Bolger was elected on the promise of delivering a "Decent Society" following the previous Labour government's economic reforms, known as Rogernomics...

     (1990–1997)
  • Jenny Shipley
    Jenny Shipley
    Dame Jenny Shipley, DNZM , served as the 36th Prime Minister of New Zealand from December 1997 to December 1999, the first woman to hold this office and the first, and to date only, woman to serve as parliamentary leader of the National Party of New Zealand.-Early life:Shipley was born as Jennifer...

     (1997–1999)

Cabinet Ministers

Ministry Minister Term(s)
Deputy Prime Minister
Deputy Prime Minister of New Zealand
The Deputy Prime Minister of New Zealand is second most senior officer in the Government of New Zealand, although this seniority does not necessarily translate into power....

 
Don McKinnon
Don McKinnon
Sir Donald Charles "Don" McKinnon, ONZ, GCVO is a former Deputy Prime Minister and Minister of Foreign Affairs of New Zealand. He was the Secretary-General of the Commonwealth of Nations from 2000 until 2008.-Early life:...

 
1990–1996
Winston Peters
Winston Peters
Winston Raymond Peters is a New Zealand politician and leader of New Zealand First, a political party he founded in 1993. Peters has had a turbulent political career since entering Parliament in 1978. He served as Minister of Maori Affairs in the Bolger National Party Government before being...

 
1996–1998
Wyatt Creech
Wyatt Creech
Wyatt Beetham Creech, CNZM is a former New Zealand politician. He served as Deputy Prime Minister in Jenny Shipley's National Party government from August 1998 to December 1999.-Early life:...

 
1998–1999
Attorney-General  Paul East
Paul East
Paul Clayton East, CNZM, QC, is a former New Zealand politician.-Early life:Paul East was educated at King's College and The University of Auckland He was a Member of Parliament from 1978 to 1999, representing the National Party....

 
1990–1997
Doug Graham
Doug Graham
Sir Douglas Arthur Montrose "Doug" Graham KNZM is a former New Zealand politician. He was an MP from 1984 to 1999, representing the National Party.-Early life:...

 
1997–1999
Minister of Defence
Minister of Defence (New Zealand)
The Minister of Defence is a minister in the government of New Zealand with responsibility for the New Zealand armed forces and the Ministry of Defence.The present Minister is Dr...

 
Warren Cooper
Warren Cooper
Warren Cooper QSO is a former New Zealand politician. He was a National Party MP from 1975 to 1996, holding cabinet positions including Minister of Foreign Affairs and Minister of Defence. Cooper also twice served as Mayor of Queenstown, from 1968 to 1975 and 1995 to 2001.-Early life:Cooper was...

 
1990–1996
Paul East
Paul East
Paul Clayton East, CNZM, QC, is a former New Zealand politician.-Early life:Paul East was educated at King's College and The University of Auckland He was a Member of Parliament from 1978 to 1999, representing the National Party....

 
1996–1997
Max Bradford
Max Bradford
Maxwell Robert Bradford is a former New Zealand politician and Cabinet Minister. He was an MP for the National Party from 1990 to 2002, and is known for introducing reforms to the electricity industry in 1998.-Early life:...

 
1997–1999
Minister of Education
Minister of Education (New Zealand)
The Minister of Education is a minister in the government of New Zealand with responsibility for the country's schools, and is in charge of the Ministry of Education.The present Minister is Anne Tolley, a member of the National Party.-History:...

 
Lockwood Smith
Lockwood Smith
Alexander Lockwood Smith is a New Zealand politician, the 28th and current Speaker of the House of Representatives. Smith is a member of the New Zealand National Party, who has served as a Member of Parliament since 1984...

 
1990–1996
Wyatt Creech
Wyatt Creech
Wyatt Beetham Creech, CNZM is a former New Zealand politician. He served as Deputy Prime Minister in Jenny Shipley's National Party government from August 1998 to December 1999.-Early life:...

 
1996–1999
Nick Smith
Nick Smith (New Zealand)
Nicolas Rex "Nick" Smith is a New Zealand politician and a member of the New Zealand Parliament as a National Party MP...

 
1999
Treasurer
New Zealand Treasury
The New Zealand Treasury is a public sector organisation and the Government’s lead advisor on economic and financial policy. Its role is to help the Government improve economic performance and manage scarce resources...

 
Winston Peters
Winston Peters
Winston Raymond Peters is a New Zealand politician and leader of New Zealand First, a political party he founded in 1993. Peters has had a turbulent political career since entering Parliament in 1978. He served as Minister of Maori Affairs in the Bolger National Party Government before being...

 
1996–1998
Bill Birch
Bill Birch
Sir William Francis Birch, GNZM , usually known as Bill Birch, is a former New Zealand politician. He served as Minister of Finance for several years in the fourth National government.-Early life:...

 
1998–1999
Bill English
Bill English
Simon William "Bill" English is the Deputy Prime Minister, Minister of Finance and Minister of Infrastructure of New Zealand.English entered parliament in 1990 as a National party MP representing the Wallace electorate...

 
1999
Minister of Finance
Minister of Finance (New Zealand)
The Minister of Finance is a senior figure within the government of New Zealand. The position is often considered to be the most important Cabinet role after that of the Prime Minister....

 
Ruth Richardson
Ruth Richardson
Ruth Richardson served as New Zealand's Minister of Finance from 1990 to 1993, and is known for her strong pursuit of free-market economic reforms .-Early life:...

 
1990–1993
Bill Birch
Bill Birch
Sir William Francis Birch, GNZM , usually known as Bill Birch, is a former New Zealand politician. He served as Minister of Finance for several years in the fourth National government.-Early life:...

 
1993–1999
Bill English
Bill English
Simon William "Bill" English is the Deputy Prime Minister, Minister of Finance and Minister of Infrastructure of New Zealand.English entered parliament in 1990 as a National party MP representing the Wallace electorate...

 
1999
Bill Birch
Bill Birch
Sir William Francis Birch, GNZM , usually known as Bill Birch, is a former New Zealand politician. He served as Minister of Finance for several years in the fourth National government.-Early life:...

 
1999
Minister of Foreign Affairs
Minister of Foreign Affairs (New Zealand)
The Minister of Foreign Affairs is a major ministerial portfolio in the government of New Zealand.The current Minister of Foreign Affairs is Murray McCully, who was National Party Spokeperson of Foreign Affairs and Shadow Minister of Foreign Affairs. There are also Associate Minister roles...

 
Don McKinnon
Don McKinnon
Sir Donald Charles "Don" McKinnon, ONZ, GCVO is a former Deputy Prime Minister and Minister of Foreign Affairs of New Zealand. He was the Secretary-General of the Commonwealth of Nations from 2000 until 2008.-Early life:...

 
1990–1999
Minister of Health
Minister of Health (New Zealand)
The Minister of Health is a minister in the government of New Zealand with responsibility for the New Zealand Ministry of Health and the District Health Boards.The present Minister is Tony Ryall, a member of the National Party.-History:...

 
Simon Upton
Simon Upton
Simon David Upton, QSO is a former New Zealand politician and member of Parliament from 1981 to 2001, representing the National Party.-Early life:...

 
1990–1993
Bill Birch
Bill Birch
Sir William Francis Birch, GNZM , usually known as Bill Birch, is a former New Zealand politician. He served as Minister of Finance for several years in the fourth National government.-Early life:...

 
1993
Jenny Shipley
Jenny Shipley
Dame Jenny Shipley, DNZM , served as the 36th Prime Minister of New Zealand from December 1997 to December 1999, the first woman to hold this office and the first, and to date only, woman to serve as parliamentary leader of the National Party of New Zealand.-Early life:Shipley was born as Jennifer...

 
1993–1996
Bill English
Bill English
Simon William "Bill" English is the Deputy Prime Minister, Minister of Finance and Minister of Infrastructure of New Zealand.English entered parliament in 1990 as a National party MP representing the Wallace electorate...

 
1996–1999
Minister of Justice
Minister of Justice (New Zealand)
The Minister of Justice is a minister in the government of New Zealand. The minister has responsibility for the formulation of justice policy and for the administration of law courts....

 
Doug Graham
Doug Graham
Sir Douglas Arthur Montrose "Doug" Graham KNZM is a former New Zealand politician. He was an MP from 1984 to 1999, representing the National Party.-Early life:...

 
1990–1999
Minister of Māori Affairs
Minister of Maori Affairs
The Minister of Māori Affairs is the minister of the New Zealand government with broad responsibility for government policy towards Māori, the first inhabitants of New Zealand. The current Minister of Māori Affairs is Dr. Pita Sharples.-Role:...

 
Winston Peters
Winston Peters
Winston Raymond Peters is a New Zealand politician and leader of New Zealand First, a political party he founded in 1993. Peters has had a turbulent political career since entering Parliament in 1978. He served as Minister of Maori Affairs in the Bolger National Party Government before being...

 
1990–1991
Doug Kidd
Doug Kidd
Sir Douglas Lorimer Kidd, KNZM is a former New Zealand politician. He was an MP from 1978 to 2002, representing the National Party. He served for three years as Speaker of the House of Representatives.-Early life:...

 
1991–1993
John Luxton
John Luxton
Murray John Finlay Luxton, QSO is a former New Zealand National Party politician, and a son of Jack Luxton who had previously held the same seat of Matamata...

 
1993–1996
Tau Henare
Tau Henare
Tau Henare is a New Zealand Māori parliamentarian. He served as a Member of Parliament from 1993 to 1999 and returned to Parliament in 2005. He has been involved with four political parties: Mana Motuhake, New Zealand First, Mauri Pacific and the National Party - representing three in...

 
1996–1999
Minister of Railways
Minister of Railways (New Zealand)
The Minister of Railways was the minister in the government responsible for the New Zealand Railways Department 1895–1981, the New Zealand Railways Corporation 1981–1993, and New Zealand Rail Limited 1990–1993...

Roger Sowry
Roger Sowry
Roger Morrison Sowry, ONZM is a former New Zealand politician. He is a member of the National Party, and was the deputy leader from 2001 to 2003.-Early life:...

 
1990–1993
Minister of Social Welfare Jenny Shipley
Jenny Shipley
Dame Jenny Shipley, DNZM , served as the 36th Prime Minister of New Zealand from December 1997 to December 1999, the first woman to hold this office and the first, and to date only, woman to serve as parliamentary leader of the National Party of New Zealand.-Early life:Shipley was born as Jennifer...

 
1990–1993
Minister of Agriculture
Ministry of Agriculture and Forestry (New Zealand)
The Ministry of Agriculture and Forestry is the state sector organisation of New Zealand which deals with matters relating to agriculture, forestry and biosecurity...

 
John Falloon
John Falloon
John Howard Falloon was a New Zealand politician. He was an MP from 1977 to 1996, representing the National Party in the Pahiatua electorate....

 
1990–1996

See also

  • Governments of New Zealand
    Governments of New Zealand
    The Government of New Zealand , formally Her Majesty's Government in New Zealand, is based on the Westminster system of responsible government...

  • New Zealand National Party
    New Zealand National Party
    The New Zealand National Party is the largest party in the New Zealand House of Representatives and in November 2008 formed a minority government with support from three minor parties.-Policies:...

  • Ruthanasia
    Ruthanasia
    Ruthanasia, a portmanteau of "Ruth" and "euthanasia", is the pejorative name given to the period of free-market economic reform conducted during the first term of the fourth National government in New Zealand, from 1990 to 1993...

  • Electoral reform in New Zealand
    Electoral reform in New Zealand
    Electoral reform in New Zealand has, in recent years, become a political issue as major changes have been made to both Parliamentary and local government electoral systems.- Parliamentary Electoral Reform :...

  • Electoral system of New Zealand
    Electoral system of New Zealand
    In 1994 New Zealand officially adopted mixed member proportional representation as its electoral system for the House of Representatives after many years of first-past-the-post voting. The first MMP election was held in 1996....

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