New Zealand’s National Party leader and Prime Minister-elect, John Key, has finalised agreements with minor parties to form a coalition government Sunday 16 November, a week after an election win.
Confidence and supply agreements with the ACT, Maori, and United Future parties gives the National coalition 70 seats in the 122-seat parliament for its three-year term in office.
Mr. Key has been eager to form a government in time to fly to Peru for the APEC summit, in which the financial crisis will head discussions. It is assumed Mr. Key will play an active role in discussions, using his background in investment banking to full advantage.
Mr. Key is expected to announce his Cabinet Monday, be sworn in on Wednesday, and fly out on Thursday.
National-ACT Agreement
ACT’s leader Rodney Hide was on hand to celebrate the complete government after negotiations Sunday. Mr. Hide and ACT MP Heather Roy will both have ministerial posts outside Cabinet in the agreement.
Highlights of the agreement include an advisory group to look at ways to meet the goal of closing the income gap with Australia by 2025, mechanisms to examine various approaches in several policy areas, and the establishment of taskforces to review government spending.
“There is a recognition from both sides that in order to promote strong growth in investment, employment and incomes, stable government and high levels of business confidence are required,” Mr. Key said.
Mr. Hide will be appointed Minister of Local Government, Minister for Regulatory Reform and Associate Minister of Commerce.
Mrs. Roy will be appointed Minister of Consumer Affairs, Associate Minister of Defence and Associate Minister of Education.
National-Maori Agreement
Maori Party co-leaders Dr. Pita Sharples and Tariana Turia have secured Parliament’s Maori seats from National, who had earlier threatened to remove them. A review of the much-contested Foreshore and Seabed Act is also on the cards.
Under the agreement, Dr. Sharples will become Maori Affairs Minister as well as as Associate Education Minister and Associate Corrections Minister.
Mrs. Turia will be Minister for the Community and Voluntary Sector, Associate Health Minister and Associate Social Development Minister.
Both party leaders’ posts are outside of Cabinet with the right to dissent on other policy issues outside portfolio areas.
“We expect that this agreement will be a good basis for a constructive working relationship in government,” Mr. Key said.
“The agreement emphasises the importance of mana maintenance and enhancement for both parties, and that the relationship will be one of good faith, and no surprises.”
National-United Future Agreement
National Party Leader John Key today announced the details of the confidence and supply arrangement reached between the National and United Future parties.
“I welcome this agreement with United Future Leader Peter Dunne,” Mr. Key said.
“United Future has agreed to provide confidence and supply support through this term of a National-led government.”
The agreement provides for Mr. Dunne to be appointed to ministerial posts outside Cabinet. Mr. Dunne will be Minister of Revenue and Associate Minister of Health.
In addition, National has agreed during this term of Parliament to adopt and implement a range of broad principles, policies and priorities advanced by United Future.
