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Fifth Labour Government of New Zealand

The Fifth Labour Government of New Zealand was the government of New Zealand from 10 December 1999 to 19 November 2008. Labour Party leader Helen Clark negotiated a coalition with Jim Anderton, leader of the Alliance Party. While undertaking a number of substantial reforms, it was not particularly radical compared to previous Labour governments.

Fifth Labour Government

10 December 1999

19 November 2008

Jim Anderton (1999–2002)
Michael Cullen (2002–2008)

Minority (coalition) (1999–2002)
with confidence and supply from the Greens
59 / 120(49%)





Minority (coalition) (2002–2005)
with confidence and supply from the United Future 54 / 120(45%)





Minority (coalition) (2005–2008)
with confidence and supply from the United Future and New Zealand First 52 / 120(43%) cooperation agreement with the Greens




Overview[edit]

The previous government, the fourth National government, had been in power since 1990. It was widely unpopular by 1999, with much of the public antagonised by a series of free-market economic reforms, and was bedevilled by weakness and instability. In the 1999 general election, the Helen Clark-led Labour Party defeated the National Party easily, becoming the largest single party in the House of Representatives. Labour formed a minority coalition government with the left-leaning Alliance party, supported by the Green Party.


During its first term, the government pursued a number of reforms. The controversial Employment Contracts Act was repealed, replaced by an Employment Relations Act more friendly to unions and collective bargaining; a state-owned bank, Kiwibank, was created at the behest of the Alliance; a majority stake in the national airline, Air New Zealand, was purchased; and the public health sector was reorganised with the re-establishment of partly elected district health boards. Closing the Gaps, an affirmative action strategy targeting socio-economic inequalities between Māori and Pasifika ethnic groups and other groups, was a particularly controversial reform among right-wing National and ACT voters.[1][2]


With the disintegration of the Alliance in 2002, Helen Clark called a snap election, even though she still had the confidence of the House. Labour handily won the election. The Alliance failed to return to parliament, although a rump returned as Jim Anderton's Progressives. Labour formed a coalition with the Progressives, and turned to the centrist United Future party for confidence and supply. This second term was notable largely for its social and constitutional legislation, with the Government establishing a Supreme Court and ending appeals to the Privy Council, decriminalising prostitution, and providing for civil unions, the latter two changes in particular supported by the Green Party and opposed by United Future. The Government was also faced in this term with the foreshore and seabed controversy. While Labour, in cooperation with the New Zealand First party, eventually resolved the legal dispute by vesting foreshore and seabed title in the Crown, a dissident Labour minister, Tariana Turia, formed the Māori Party, while on the other side of the spectrum a resurgent National Party, now under former Reserve Bank governor Don Brash, became considerably more popular. In the 2005 election, the Government was returned with a slim margin on the strength of the Working for Families assistance package and financial assistance to students, benefiting also from mistakes in National's campaign.


Helen Clark moved even more to the centre, enlisting support for her Government from both New Zealand First and United Future. Almost immediately, the Government parties became involved in a protracted funding scandal, having apparently used public money for party political purposes during the election campaign. A heavy-handed attempt at campaign finance reform later in this term also harmed the Government, which by now appeared tired and at a loss for direction, although it did succeed in implementing a wide range of social and economic reforms during its time in office.[3][4]


In a 2000 feature article "Siege of Helengrad",[5] The Australian newspaper wrote that Clark's "uncompromisingly autocratic and pervasive leadership has seen New Zealand dubbed Helengrad".[6] In January 2008, the term 'Helengrad', "a noun used to describe the iron grip of New Zealand's prime minister over Wellington", was reported as having made Australia's Macquarie online dictionary among 85 other new words.[7]


In the 2008 election, the Labour Party lost convincingly to National, and the government was succeeded by the National Party led by John Key as Prime Minister.

Created as part of coalition agreement with the Alliance (2001).

Kiwibank

Created the (2001);

New Zealand Superannuation Fund

retirement savings scheme (2007);

KiwiSaver

Purchased a majority stake in (2001);

Air New Zealand

Renationalised New Zealand's (Under ONTRACK) (2004), and in 2008 the rail and ferry operations of Toll New Zealand (renamed KiwiRail). KiwiRail and ONTRACK were then merged into one organisation;

national rail network

campaign (2007);

Buy Kiwi Made

Telecommunications industry reform, particularly (2007).

local loop unbundling

Increased top to 39% (2000).[8]

income tax rate

Company and personal income tax cuts under the .[9]

2008 New Zealand budget

Began the , deposit insurance for New Zealand financial institutions during the Great Recession (2008).

Crown Retail Deposit Guarantee Scheme

The Hon. Dame (2001–2006)

Silvia Cartwright

The Right Hon. Sir (2006–2011)

Anand Satyanand

Following the 1999 election, Labour formed a coalition with the , and gained support on matters of confidence and supply from the Greens.

Alliance Party

Following the 2002 election, Labour formed a coalition with the , and gained support on matters of confidence and supply from United Future. The Greens also entered into a formal agreement with the government, but it was not as strong as the agreements covering confidence and supply it made in the preceding and following parliaments.[41]

Progressive Party

Following the 2005 election, Labour formed a coalition with the Progressive Party, and gained support on matters of confidence and supply from and United Future, giving the Labour-led Government a majority. The Greens signed an agreement to abstain on votes of confidence and supply, and the Māori Party also abstained on confidence and supply votes but had no formal agreement with the Government.

New Zealand First

The table below shows the total party votes for Labour and parties that supported the Labour-led government. For more details of election results, see the election articles.


Notes

Boston, Jonathan. Left Turn: The New Zealand general election of 1999 (Victoria U.P, 2000)

Boston, Jonathan; et al. (2004). . Victoria University Press. ISBN 9780864734686.

New Zealand Votes: The 2002 General Election

Harvey, John; Edwards, John (2019). Annette King: The Authorised Biography. Auckland: Upstart Press.  978-1-988516-37-0.

ISBN

Levine, Stephen and Nigel S. Roberts, eds. The Baubles of Office: The New Zealand General Election of 2005 (Victoria U.P, 2007)

Levine, Stephen and Nigel S. Roberts, eds. Key to Victory: The New Zealand General Election of 2008 (Victoria U.P, 2010)

Welch, Denis. Helen Clark: A Political Life (2009) 240pp