Fifth National Government of New Zealand explained

Cabinet Name:	Fifth National Government
Cabinet Type:	Ministries
Jurisdiction:	New Zealand
Flag:	Flag of New Zealand.svg
Flag Border:	true
Incumbent:	2008–2017
Date Formed:	19 November 2008
Date Dissolved:	26 October 2017
Government Head:	John Key (2008–2016) Bill English (2016–2017)
Deputy Government Head:	Bill English (2008–2016) Paula Bennett (2016–2017)
State Head:	Elizabeth II
Governor General:	Sir Anand Satyanand (2008–11) Lt Gen Sir Jerry Mateparae (2011–16) Dame Patsy Reddy (2016–17)
Legislature Status:	Minority (2008–2011) with confidence and supply from the ACT, United Future and Māori 58 / 122(48%) Minority (2011–2014) with confidence and supply from the ACT, United Future and Māori 59 / 121(49%) Minority (2014–2017) with confidence and supply from the ACT, United Future and Māori 60 / 121(50%)
Previous:	Fifth Labour Government of New Zealand
Successor:	Sixth Labour Government of New Zealand
State Head Title:	Monarch
Government Head Title:	Prime Minister
Deputy Government Head Title:	Deputy Prime Minister

The Fifth National Government of New Zealand was the government of New Zealand for three parliamentary terms from 19 November 2008 to 26 October 2017. John Key served as National Leader and Prime Minister until December 2016, after which Bill English assumed the premiership until the National Government's defeat following the October 2017 government-forming negotiations.

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 had confidence and supply agreements with the following parties: ACT, United Future, and the Māori Party – which gave 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

Treaty of Waitangi/Settlements

The involvement of the National government within this particular area was seen through their approach in settlements. National government's involvement of Treaty affairs:

• Ngai Tuhoe deed of settlement^[1]

These involved discussion and planning of guidelines which were negotiated with two significant iwis of Taranaki. This also involved Minister for Treaty of Waitangi Negotiations Christopher Finlayson.

• Apology to affiliate Te Arawa^[2]

In relation to past Treaty breaches and the actions of the previous governments at the time of the land wars. John Key apologised for the actions and doings of the abuses to the Te Arawa iwi and hapu.

• Negotiation with Te Atiawa and Taranaki iwi^[3]

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^[4] in accordance with the coalition agreement with the ACT Party.^[5] In November 2009, an amended version of the New Zealand Emissions Trading Scheme was adopted.^[6]
• Personal tax cuts, reducing taxes on all income; the top personal tax rate was lowered from 39% to 38% and then 33%.^[7]
• 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.^[8] 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.^[9]
• 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 and gave employees 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%).
• Ultra-Fast Broadband rollout of fibre to the house to 87% of households
  • Seven Roads of National Significance
• Significant investments in the rebuilding of Christchurch after the Canterbury earthquakes^{[10] [11]}

Constitution

• Repealed the Electoral Finance Act 2007^[12]
• Introduced the Governor-General Act 2010, to reform the Governor-General's salary and allowances.^[13]
• 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.^[14]

Social policy

• Extended the paid parental leave scheme by four weeks
• 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.^[15] 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.^[16] 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.
• In 2015, introduced a $790 million of extra spending to reduce hardship among children in New Zealand's poorest families.^[17]
• Invested in insulating New Zealand homes via the Warm Up New Zealand: Healthy Homes programme which targets low-income households.^[18]

Foreign affairs

• Allowed a U.S. navy ship into New Zealand for the New Zealand Navy 75th anniversary without confirmation regarding nuclear weapons for the first time in 33 years^[19]
• Won a seat on the UN Security Council in the 2014 election, a process that started in 2004.^[20]

Defence

• In 2012, New Zealand and the U.S. signed the Washington Declaration, strengthening military cooperation and defence relations, for the first time in more than 30 years.^[21]
• Removal of the position of Minister of Disarmament and Arms Control.^[22]
• The government released a new Defence White Paper in 2016, outlining the New Zealand government's strategic defence policy objectives and how the Defence Force will be structured to meet these objectives by 2030 and beyond.^[23]

National identity

• Restored titles ('Sir' and 'Dame') in the New Zealand honours system.^[24]
• 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 ministers will be known simply as "The Honorable".^[25] 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 holders of the nation's highest public offices".^[26] 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".^[27]
• 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.^[28]
• 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.^[29]
• Invested $359 million to strengthen leadership and quality teaching across schools. This investment created new principal and teacher roles.^[30]
• In 2016 invested $883 million in a building programme to deliver various building projects including 480 new classrooms and nine new schools. This includes $168 million for the Christchurch schools rebuild programme.^[31]

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.^[32]
• 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.^[33]

Health

• Increased amounts of elective surgery^[34]
• Provided free GP visits and free prescriptions for children aged under 13 from July 2015.
• Provided funding for the rheumatic fever prevention programme
• Rebuilt Christchurch Hospital and Burwood Hospitals^[35]

History

2008 election

The 2008 general 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 general election saw the Fifth National Government continue with confidence-and-supply from the ACT, United Future and Maori parties. National increased its share of the party vote to 47.3 percent, but gained only one additional seat to 59 due to a reduced wasted vote (down to 3.4 percent from 6.5 percent in 2008), largely stemming 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 its 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 and its supporters therefore held 50.41 percent of the party vote and 64 of the 121 seats in Parliament.

2014 election

The 2014 general 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.^[36] National re-entered confidence and supply agreements with the centrist United Future,^[37] the classical liberal ACT Party,^[38] and the indigenous rights-based Māori Party^[39] to form a minority government.

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

Election results

The table below shows the total party votes for National and the three parties that supported the National-led government. National received support on matters of confidence and supply from ACT, the Māori Party and United Future in each of the three terms. For more details of election results, see the election articles.

width=95%
Election	Parliament	Seats	Total votes	Percentage	Gain/loss	Seats won	Change	Majority
2008	49th	122	1,215,371	51.84%	align=center	-	69	align=center	-	7
2011	50th	121	1,127,952	50.41%	–1.43%	64	−5	3
2014	51st	121	1,185,526	49.28%	−1.13%	64	0	3

Prime Minister

National Party leader John Key was Prime Minister between when the government was elected in the 2008 elections, up until his resignation on 12 December 2016.

The National Party held a leadership election to determine Key's successor as National Party leader and Prime Minister. Deputy Prime Minister Bill English announced that he would be standing for the leadership on 6 December 2016.^[40] Health Minister Jonathan Coleman and Police and Corrections Minister Judith Collins also announced their intention to seek the leadership, but dropped out due to low support from National Party colleagues. After Coleman and Collins' withdrawal, English was sworn in as the 39th Prime Minister on 12 December 2016.^[41] State Services Minister Paula Bennett and Transport Minister Simon Bridges announced they would contest the consequential vacancy for Deputy Leader; Bridges dropped out of the race after it was clear Bennett had greater support.^[42]

Cabinet Ministers

Portfolio	Minister	Party		Start	End
Prime Minister		bgcolor=		National		12 December 2016
		bgcolor=		National		26 October 2017
Deputy Prime Minister		bgcolor=		National		12 December 2016
		bgcolor=		National		26 October 2017
Minister of Agriculture		bgcolor=		National		14 December 2011
Minister for Arts, Culture and Heritage		bgcolor=		National		8 October 2014
		bgcolor=		National		26 October 2017
Attorney-General		bgcolor=		National		26 October 2017
Minister of Broadcasting		bgcolor=		National		14 December 2011
		bgcolor=		National		20 December 2016
		bgcolor=		National		26 October 2017
		bgcolor=		National		1 May 2014
		bgcolor=		National		26 October 2017
		bgcolor=		National		8 June 2011
		bgcolor=		National		14 December 2011
		bgcolor=		National		30 January 2013
		bgcolor=		National		20 December 2016
		bgcolor=		National		2 May 2017
		bgcolor=		National		26 October 2017
Minister of Commerce		bgcolor=		National		12 December 2011
		bgcolor=		National		8 October 2014
		bgcolor=		National		20 December 2016
		bgcolor=		National		26 October 2017
Minister for the Community and Voluntary Sector		bgcolor=		Māori Party		12 December 2011
		bgcolor=		National		20 December 2016
		bgcolor=		National		26 October 2017
		bgcolor=		National		27 January 2010
		bgcolor=		National		22 January 2013
		bgcolor=		National		8 October 2014
		bgcolor=		National		26 October 2017
Minister of Consumer Affairs		bgcolor=		ACT		17 August 2010
		bgcolor=		ACT		3 May 2011
		bgcolor=		National		14 December 2011
		bgcolor=		National		3 April 2012
		bgcolor=		National		30 January 2013
		bgcolor=		National		6 October 2014
Minister of Corrections		bgcolor=		National		12 December 2011
		bgcolor=		National		8 October 2014
		bgcolor=		National		14 December 2015
		bgcolor=		National		20 December 2016
		bgcolor=		National		26 October 2017
Minister of Customs		bgcolor=		National		1 May 2014
		bgcolor=		National		2 May 2017
		bgcolor=		National		26 October 2017
Minister of Defence		bgcolor=		National		14 December 2011
		bgcolor=		National		6 October 2014
		bgcolor=		National		2 May 2017
		bgcolor=		National		26 October 2017
Minister of Economic Development		bgcolor=		National		13 December 2011
		bgcolor=		National		13 December 2011
		bgcolor=		National		20 December 2016
		bgcolor=		National		26 October 2017
Minister of Education		bgcolor=		National		12 December 2011
		bgcolor=		National		2 May 2017
		bgcolor=		National		26 October 2017
Minister of Energy and Resources		bgcolor=		National		14 December 2011
		bgcolor=		National		29 January 2013
		bgcolor=		National		20 December 2016
		bgcolor=		National		26 October 2017
Minister for the Environment		bgcolor=		National		21 March 2012
		bgcolor=		National		2 April 2012
		bgcolor=		National		6 October 2014
		bgcolor=		National		26 October 2017
		bgcolor=		National		12 December 2016
		bgcolor=		National		26 October 2017
Minister of Fisheries		bgcolor=		National		14 December 2011
Minister of Foreign Affairs		bgcolor=		National		2 May 2017
		bgcolor=		National		26 October 2017
Minister of Forestry		bgcolor=		National		14 December 2011
Minister of Health		bgcolor=		National		6 October 2014
		bgcolor=		National		26 October 2017
Minister of Housing		bgcolor=		National		22 January 2013
		bgcolor=		National		20 December 2016
		bgcolor=		National		26 October 2017
		bgcolor=		National		14 December 2011
		bgcolor=		National		31 January 2013
		bgcolor=		National		26 October 2017
		bgcolor=		National		2 June 2009
		bgcolor=		National		13 December 2011
		bgcolor=		National		2 April 2012
		bgcolor=		National		27 January 2014
		bgcolor=		United Future		26 October 2017
Minister of Justice		bgcolor=		National		12 December 2011
		bgcolor=		National		30 August 2014
		bgcolor=		National		26 October 2017
Minister of Labour		bgcolor=		National		6 November 2012
		bgcolor=		National		31 January 2013
		bgcolor=		National		26 October 2017
		bgcolor=		National		2 May 2017
		bgcolor=		National		26 October 2017
Minister of Local Government		bgcolor=		ACT		14 December 2011
		bgcolor=		National		3 August 2012
		bgcolor=		National		31 January 2013
		bgcolor=		National		28 January 2014
		bgcolor=		National		20 December 2016
		bgcolor=		National		26 October 2017
		bgcolor=		Māori Party		8 October 2014
		bgcolor=		Māori Party		26 October 2017
		bgcolor=		National		12 December 2011
		bgcolor=		National		7 October 2014
		bgcolor=		National		14 December 2015
	Judith Collins	bgcolor=		National		20 December 2016
		bgcolor=		National		26 October 2017
		bgcolor=		United Future		7 June 2013
		bgcolor=		National		14 December 2015
		bgcolor=		National		20 December 2016
		bgcolor=		National		26 October 2017
Minister for Social Development		bgcolor=		National		6 October 2014
		bgcolor=		National		26 October 2017
Minister for Sport		bgcolor=		National		6 October 2014
		bgcolor=		National		26 October 2017
Minister for State Owned Enterprises		bgcolor=		National		13 April 2011
		bgcolor=		National		8 October 2014
		bgcolor=		National		26 October 2017
Minister of Statistics		bgcolor=		National		1 May 2014
		bgcolor=		National		8 October 2014
		bgcolor=		National		20 December 2016
		bgcolor=		National		2 May 2017
		bgcolor=		National		26 October 2017
Minister of Tourism		bgcolor=		National		12 December 2016
		bgcolor=		National		26 October 2017
Minister of Trade		bgcolor=		National		14 December 2015
		bgcolor=		National		26 October 2017
		bgcolor=		National		12 December 2011
		bgcolor=		National		6 October 2014
		bgcolor=		National		26 October 2017
Minister for Treaty of Waitangi Negotiations		bgcolor=		National		26 October 2017
Minister for Women		bgcolor=		National		12 November 2010
		bgcolor=		National		8 December 2010
		bgcolor=		National		13 December 2011
		bgcolor=		National		8 October 2014
		bgcolor=		National		20 December 2016
		bgcolor=		National		26 October 2017

Further reading

• Book: Finlayson, Christopher . Yes, Minister . 2022 . Allen & Unwin . Auckland . 978-199-1006-103 .
• Book: Joyce, Steven . On the Record . 2023 . Allen & Unwin . Auckland . 978 1 99100 646 2 .

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.

Notes and References

1. Crown and Ngai Tuhoe sign deed of settlement. 2013. Retrieved from:https://www.beehive.govt.nz/release/crown-and-ng%C4%81i-tuhoe-sign-deed-settlement
2. PM delivers Crown apology to Affiliate Te Arawa. 2009. Retrieved from: https://www.beehive.govt.nz/release/pm-delivers-crown-apology-affiliate-te-arawa
3. Terms of Negotiation signed with Te Atiawa and Taranaki iwi. 2010. Retrieved from: https://www.beehive.govt.nz/release/terms-negotiation-signed-te-atiawa-and-taranaki-iwi
4. Review of the Emissions Trading Scheme and related matters. I.23A. New Zealand Parliament. 31 August 2009. 30 September 2009.
5. News: Fleming. Grant. Emissions trading scheme up for review under Act deal. The New Zealand Herald. 16 November 2008. 1 December 2010 .
6. Web site: Balanced new law important step on climate change. New Zealand Government Press Release. Hon Dr Nick Smith. Nick Smith (New Zealand politician). 25 November 2009. 14 June 2010 .
7. News: Spend tax cut or give it to the needy: PM. The New Zealand Herald. Claire. Trevett. 19 March 2009. 25 January 2010.
8. News: Can you survive on the minimum wage in NZ?. The New Zealand Herald. 27 January 2010. 28 January 2010.
9. https://www.nzsuperfund.co.nz/nz-super-fund-explained-purpose-and-mandate/contributions-suspension "CONTRIBUTIONS SUSPENSION"
10. Web site: Budget 2016: Overview. 2021-12-11. The Beehive. en.
11. Web site: Budget 2013: At a Glance. 2021-12-11. The Beehive. en.
12. News: Unpopular electoral finance law fades into night. The New Zealand Herald. Claire. Trevett. 18 February 2009. 25 January 2010.
13. Web site: Governor-General Bill First Reading. New Zealand Parliament. 22 November 2021.
14. Web site: Monarchy debate off-topic in constitutional review. TVNZ. 14 March 2011. 8 December 2010.
15. Web site: 90-day bill passes first test under heavy fire . Trevett, Claire . 12 December 2008 . . 30 September 2011.
16. Web site: Govt to let employers buy back holidays . Gower, Patrick . 22 March 2009 . . 30 September 2011.
17. Web site: Budget 2015: At a Glance. 2021-12-11. The Beehive. en.
18. Web site: Budget 2013: At a Glance. 2021-12-11. The Beehive. en.
19. Young, Audrey. "United States ship to visit NZ for the first time in 33 years." NZ Herald. 21 July 2016. https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11678267
20. Young, Audrey and Clair Trevett. "NZ Wins seat on security council 'a victory for the small states.'" NZ Herald. 17 October 2014. https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11343853
21. Web site: Agreement with US sees NZ as 'de facto' ally. Stuff. 20 June 2012 . en. 23 May 2018.
22. Web site: Minister for Disarmament and Arms Control disestablished Scoop News. www.scoop.co.nz. 23 May 2018.
23. Web site: Defence White Paper: Government unveils $20b defence plan for new planes, boats and cyber security. Stuff. 8 June 2016 . en. 23 May 2018.
24. News: Titles of Dames, Knights to be restored– Key. The New Zealand Herald. 8 March 2009. 25 January 2010.
25. Web site: Honours Q and A. 8 March 2009. Beehive. 25 July 2010.
26. Web site: Use of the title 'The Right Honourable' in New Zealand, 2 August 2010. 2 August 2010. The Queen's Printer. 3 August 2010.
27. News: Queen requests officials become lifelong 'Right Honourables'. 3 August 2010. The New Zealand Herald News. 3 August 2010.
28. News: Relief over class size backdown . Claire . Trevett . The New Zealand Herald . 7 June 2012 . 20 June 2012.
29. News: Food In Schools Bill Defeated. 18 March 2015. Scoop. 18 March 2015.
30. Web site: Budget 2014: At a Glance. 2021-12-11. The Beehive. en.
31. Web site: Budget 2016: Overview. 2021-12-11. The Beehive. en.
32. News: Royal Commission on Auckland Governance. The New Zealand Herald. 17 September 2009. 25 January 2010.
33. News: ECan council canned in favour of commissioners. TVNZ. 30 March 2010. 15 April 2010.
34. News: Electives may cut emergencies. The New Zealand Herald. 26 November 2009. 25 January 2010.
35. Web site: Budget 2013: At a Glance. 2021-12-11. The Beehive. en.
36. News: Hamish . Rutherford . 4 October 2014 . National loses majority, Greens pick up one . Fairfax NZ News . 4 October 2014.
37. News: Issac . Davison . 29 September 2014 . Dunne deal: United Future signs agreement with National-led govt . The New Zealand Herald . 29 September 2014.
38. News: Issac . Davison . 29 September 2014 . Act deal: No portfolio for David Seymour . The New Zealand Herald . 29 September 2014.
39. News: Adam . Bennett . 5 October 2014 . National signs deal with Maori Party . The New Zealand Herald . 5 October 2014.
40. Web site: Bill English: Why I'm standing for Prime Minister. The New Zealand Herald. 6 December 2016. 7 December 2016.
41. Web site: The race to be PM: how it happened. Radionz.co.nz. 8 December 2016. 15 December 2016.
42. News: Paula Bennett has won the battle for deputy Prime Minister and will team up with Bill English. Jo Moir. Stuff. 10 December 2016. 3 November 2017.