Minister of Finance (New Zealand) explained

Post:Minister of Finance
Flag:Flag of New Zealand.svg
Flagcaption:Flag of New Zealand
Insigniacaption:Coat of Arms of New Zealand
Incumbent:Nicola Willis
Incumbentsince:27 November 2023
Department:The Treasury
Style:The Honourable
Member Of:
Reports To:Prime Minister
Seat:Wellington
Nominator:Prime Minister
Appointer:Governor-General of New Zealand
Appointer Qualified:on the advice of the prime minister
Termlength:At His Majesty's pleasure
Formation:3 May 1841
First:George Cooper as Colonial Treasurer
Salary:$288,900[1]
Website:www.beehive.govt.nz

The minister of Finance (Maori: Minita mo nga Moni), originally known as colonial treasurer, is a minister and the head of the New Zealand Treasury, responsible for producing an annual New Zealand budget outlining the government's proposed expenditure. The position is often considered to be the most important cabinet post after that of the prime minister.[2]

The current Minister of Finance is Nicola Willis. There are currently three associate minister roles held by Chris Bishop, David Seymour, and Shane Jones.[3]

Responsibilities and powers

One of the Minister of Finance's key roles involves the framing of the annual year budget. According to Parliament's Standing Orders, the Minister of Finance may veto any parliamentary bill which would have a significant impact on the government's budget plans. The Minister of Finance supervises the Treasury, which is the government's primary advisor on matters of economic and financial policy.[4] As such, the Minister of Finance has broad control of the government's spending, making the position quite powerful.

Some analysts, such as Jonathan Boston, claim that the Minister of Finance can sometimes hold more influence than the Prime Minister, if the conditions are right. Gordon Coates, Finance Minister in the early 1930s, was sometimes such a figure. Some political scientists, such as Boston, believe that in the government of David Lange, Minister of Finance Roger Douglas held more power than was proper, and that the Treasury was using its control of government finances to take a supervisory role across the whole administration. It was probably for this reason that Lange's successor, Geoffrey Palmer, established the Department of the Prime Minister and Cabinet, which could offer the Prime Minister advice independent of that given by individual ministers.

History

The office of Minister of Finance has existed since 1841.[5] Apart from the office of Prime Minister itself, the only other cabinet posts to have existed since the first cabinet are those of Attorney-General and Minister of Internal Affairs. Originally, the holder of the post was designated "Colonial Treasurer", but this term was replaced with "Minister of Finance" shortly after New Zealand ceased to be a Colony and became a Dominion. This occurred in 1907, during the cabinet of Joseph Ward.

In the past, several Prime Ministers took on the post of Minister of Finance themselves, though in recent times this practice has declined. Robert Muldoon, the last person to concurrently serve as Prime Minister and Minister of Finance, created considerable controversy by doing so. It is more common, however, for a Deputy Prime Minister to serve as Minister of Finance. Bob Tizard, Michael Cullen, Bill English and Grant Robertson served as Deputy Prime Minister when in the position as Minister of Finance.

Traditionally Ministers of Finance rank second or third in seniority lists within Westminster-style Cabinets, although initially Harry Lake was ranked at sixth and his successor Robert Muldoon was ranked at eighth; both because of their short service to date in Parliament, and because Keith Holyoake saw Muldoon as too arrogant and ambitious for his own good. In the Hipkins Cabinet, Grant Robertson was ranked fourth, although he was the most senior minister who was not the prime minister, deputy prime minister, or deputy leader of the Labour Party.

Junior ministerial appointments in the finance portfolio

The convention of making a second, more junior appointment in the Finance portfolio began with Holyoake, who appointed Muldoon as an Assistant Minister to Lake shortly before the latter's death in 1967.[6] Some successive Prime Ministers made similar appointments of an Associate Minister of Finance (for example, Marshall and Kirk) but this was not always done (Rowling, for example, who had Mick Connelly as his associate while serving as Finance Minister did not appoint an associate Minister after succeeding to the premiership in 1974). Associate appointments became standard when Muldoon served concurrently as both Prime Minister and Finance Minister.[7] In his second term, Muldoon appointed both a Deputy Minister of Finance (Hugh Templeton) as well as an associate Minister (Derek Quigley). Muldoon's successors Lange and Palmer continued to have a three-strong Finance team, each appointing two associate Ministers to support their respective Ministers of Finance. At times, the appointment of associate ministers was intended to temper the reform ambitions of Roger Douglas.

In the coalition governments formed in 1996, 2017 and 2023, responsibility for Finance was shared between the parties. After the 1996 elections, the role of the Minister of Finance was formally split between two portfolios – that of Minister of Finance and that of Treasurer. The position of Treasurer was senior to that of the Minister of Finance, and was created as part of the coalition agreement between the National Party and New Zealand First. It was established especially for Winston Peters, leader of New Zealand First, who demanded it as part of the deal. When Peters ended the coalition, the position reverted to the National Party. After the change of government in 1999, both positions were held concurrently by Michael Cullen before they were combined into the old Minister of Finance portfolio in 2002.[8] Associate Finance roles were won in coalition negotiations by New Zealand First, the Green Party and ACT New Zealand in the formation of both the Sixth Labour Government and the Sixth National Government.

List of finance ministers

Key
No.NamePortraitTerm of officePrime Minister
1George Cooper5 January 18409 May 1842none
2Alexander Shepherd9 May 18427 May 1856
3Dillon Bell7 May 185620 May 1856Sewell
4Charles Brown20 May 18562 June 1856Fox
5Henry Sewell2 June 18564 November 1856Stafford
6William Richmond4 November 185625 February 1859
(5)Henry Sewell25 February 185926 April 1859
(6)William Richmond26 April 185912 July 1861
7Reader Wood12 July 18616 August 1862Fox
(3)Dillon Bell6 August 186221 August 1862Domett
(7)Reader Wood21 August 186224 November 1864
Whitaker
8William Fitzherbert24 November 186416 October 1865Weld
9Edward Stafford31 October 186512 June 1866Stafford
10Francis Jollie12 June 186624 August 1866
(8)William Fitzherbert24 August 186628 June 1869
11Julius Vogel28 June 186910 September 1872Fox
12Thomas Gillies10 September 187211 October 1872Stafford
(11)Julius Vogel11 October 18726 July 1875Waterhouse
Fox
Vogel
13Harry Atkinson6 July 187515 February 1876Pollen
(11)Julius Vogel15 February 18761 September 1876Vogel
(13)Harry Atkinson1 September 187613 October 1877Atkinson
14William Larnach15 October 18775 March 1878Grey
15John Ballance12 March 18781 July 1879
16George Grey10 July 18798 October 1879
(13)Harry Atkinson8 October 187916 August 1884Hall
Whitaker
Atkinson
(11)Julius Vogel16 August 18843 September 188428 August 18848 October 1887Stout
(13)Harry Atkinson8 October 188724 January 1891Atkinson
(15)John Ballance24 January 189127 April 1893Ballance
17Joseph Ward1 May 189316 June 1896Seddon
18Richard Seddon16 June 189610 June 1906
19William Hall-Jones21 June 19066 August 1906Hall-Jones
(17)Joseph Ward6 August 190628 March 1912Ward
20Arthur Myers28 March 191210 July 1912Mackenzie
21James Allen10 July 191212 August 1915Massey
(17)Joseph Ward12 August 191521 August 1919
(21)James Allen4 September 191928 April 1920
22William Massey12 May 192010 May 1925
23William Nosworthy14 May 192524 May 1926Bell
Coates
24William Downie Stewart Jr24 May 192610 December 1928
(17)Joseph Ward10 December 192828 May 1930Ward
25George Forbes28 May 193022 September 1931Forbes
(24)William Downie Stewart Jr22 September 193128 January 1933
26Gordon Coates28 January 19336 December 1935
27Walter Nash6 December 193513 December 1949Savage
Fraser
28Sidney Holland13 December 194926 November 1954Holland
29Jack Watts26 November 195412 December 1957
Holyoake
30Arnold Nordmeyer12 December 195712 December 1960Nash
31Harry Lake12 December 196021 February 1967Holyoake
32Robert Muldoon4 March 19678 December 1972
Marshall
33Bill Rowling8 December 19726 September 1974Kirk
34Bob Tizard6 September 197412 December 1975Rowling
(32)Robert Muldoon12 December 197526 July 1984Muldoon
35Roger Douglas26 July 198414 December 1988Lange
36David Caygill14 December 19882 November 1990
Palmer
Moore
37Ruth Richardson2 November 199029 November 1993Bolger
38Bill Birch29 November 19931 February 1999
Shipley
39Bill English1 February 199922 June 1999
(38)Bill Birch22 June 199910 December 1999
40Michael Cullen10 December 199919 November 2008Clark
(39)Bill English19 November 200812 December 2016Key
41Steven Joyce12 December 201626 October 2017English
42Grant Robertson26 October 201727 November 2023Ardern
Hipkins
43Nicola Willis27 November 2023IncumbentLuxon

List of treasurers

Key
No.NamePortraitTerm of officePrime Minister
1Winston Peters16 December 199614 August 1998Bolger
Shipley
2Bill Birch14 August 199822 June 1999
3Bill English22 June 199910 December 1999
4Michael Cullen10 December 199915 August 2002Clark

List of junior ministerial appointments in the finance portfolio

Key
NameTitleStartEndMinister of FinancePrime Minister
1Robert MuldoonMinister Assistant to the Minister of Finance15 February 19674 March 1967LakeHolyoake
2Lorrie PickeringAssociate Minister of Finance22 December 19699 February 1972Muldoon
3George GairAssociate Minister of Finance9 February 19728 December 1972Marshall
4Mick ConnellyAssociate Minister of Finance8 December 197210 September 1974RowlingKirk
(3)George GairDeputy Minister of Finance12 December 19758 March 1977MuldoonMuldoon
4Peter WilkinsonAssociate Minister of Finance12 December 19758 March 1977
5Hugh TempletonAssociate Minister of Finance8 March 197713 December 1978
Deputy Minister of Finance13 December 197811 December 1981
6Derek QuigleyAssociate Minister of Finance13 December 197812 February 1981
7Warren CooperAssociate Minister of Finance12 February 198111 December 1981
8John FalloonAssociate Minister of Finance11 December 198126 July 1984
9Richard PrebbleAssociate Minister of Finance26 July 198424 August 1987DouglasLange
10David CaygillAssociate Minister of Finance26 July 198424 August 1987
11Michael CullenAssociate Minister of Finance24 August 198712 September 1988
12David ButcherAssociate Minister of Finance24 August 198712 September 1988
13Peter NielsonAssociate Minister of Finance24 August 19872 November 1990Douglas, CaygillLange, Palmer, Moore
(10)David CaygillDeputy Minister of Finance12 September 198814 December 1988DouglasLange
14Mike MooreDeputy Minister of Finance12 September 19889 February 1990Douglas, CaygillLange, Palmer
15Stan RodgerDeputy Minister of Finance14 August 19899 February 1990CaygillPalmer
16Doug KiddAssociate Minister of Finance2 November 19903 October 1991RichardsonBolger
17Maurice McTigueAssociate Minister of Finance2 November 199027 March 1993
18Wyatt CreechAssociate Minister of Finance3 October 199129 November 1993
19Simon UptonAssociate Minister of Finance27 March 199329 November 1993
(18)Wyatt CreechDeputy Minister of Finance29 November 19931 March 1996Birch
20Bruce CliffeAssociate Minister of Finance29 November 199329 June 1995
21Lockwood SmithDeputy Minister of Finance1 March 199616 December 1996
22Tuariki DelamereAssociate Treasurer16 December 199631 August 1998Peters (Treasurer)
Shipley
Birch (Treasurer)
23Bill EnglishAssociate Treasurer31 August 19981 February 1999
(21)Lockwood SmithAssociate Minister of Finance31 August 199810 December 1999Birch, English, Birch
(22)Tuariki DelamereAssociate Minister of Finance31 August 199810 December 1999
24Trevor MallardAssociate Minister of Finance10 December 199919 November 2008CullenClark
25Paul SwainAssociate Minister of Finance13 November 200019 May 2003
26David CunliffeAssociate Minister of Finance19 May 200319 October 2005
27Phil GoffAssociate Minister of Finance19 October 200519 November 2008
28Clayton CosgroveAssociate Minister of Finance19 October 200519 November 2008
29Simon PowerAssociate Minister of Finance19 November 200814 December 2011EnglishKey
30Steven JoyceAssociate Minister of Finance19 November 200820 December 2016
31Jonathan ColemanAssociate Minister of Finance14 December 20118 October 2014
32Paula BennettAssociate Minister of Finance8 October 201420 December 2016
33Simon BridgesAssociate Minister of Finance20 December 201626 October 2017JoyceEnglish
34Amy AdamsAssociate Minister of Finance20 December 201626 October 2017
35David ClarkAssociate Minister of Finance26 October 20177 April 2020RobertsonArdern
36Shane JonesAssociate Minister of Finance26 October 20176 November 2020
37James ShawAssociate Minister of Finance26 October 20176 November 2020
38David ParkerAssociate Minister of Finance26 October 201727 November 2023Ardern, Hipkins
39Megan WoodsAssociate Minister of Finance6 November 202027 November 2023
40Kiri AllanAssociate Minister of Finance14 June 20221 February 2023
41Michael WoodAssociate Minister of Finance1 February 202321 June 2023Hipkins
(40)Kiri AllanAssociate Minister of Finance21 June 202324 July 2023
42Barbara EdmondsAssociate Minister of Finance24 July 202327 November 2023
43Chris BishopAssociate Minister of Finance27 November 2023IncumbentWillisLuxon
44David SeymourAssociate Minister of Finance27 November 2023Incumbent
(36)Shane JonesAssociate Minister of Finance27 November 2023Incumbent

References

  1. Web site: Parliamentary Salaries and Allowances Determination 2016 . Parliament.nz . 20 January 2017.
  2. News: Clifton . Jane . 19 September 2013 . Influentials: Politics . . 15 November 2013.
  3. Web site: Ministerial List . 14 June 2022 . Department of the Prime Minister and Cabinet.
  4. Web site: Ministerial Portfolio: Finance . 29 December 2017 . The Department of the Prime Minister and Cabinet . en-NZ . Department of the Prime Minister and Cabinet (DPMC).
  5. Book: Cyclopedia Company Limited . The Cyclopedia of New Zealand : Wellington Provincial District . 1897 . Wellington . Mr. George Cooper . 12 June 2010.
  6. Book: Ministers and Members in the New Zealand Parliament . University of Otago Press . 1996 . 1-877133-00-0 . Wood . G.A. . 2nd . Dunedin.
  7. Book: Easton, Dr Brian . The Commercialisation of New Zealand . University of Auckland Press . 1997 . 1869401735 . Auckland . 74.
  8. Book: Ministers and Members in the New Zealand Parliament: 1996-2005 . Tarkwode Press . 2006 . 0-9597868-2-1 . Spanhake . Craig . Dunedin.

External links

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