Concessions on some policies but overall, there is optimism
Venkat Raman
Auckland, November 24, 2023
After three weeks of what seemed to be endless talks, speculations, doubts and anxieties, National Party Leader and Prime Minister-Elect Christopher Luxon was finally able to announce a Coalition government with ACT and New Zealand First in Parliament this morning (November 24, 2023) to the cheers of the newly elected Members of Parliament.
This is the first three-party coalition in New Zealand’s MMP history. Since 1996, both National and Labour have had two-party coalition governments.
Mr Luxon signed two independent documents, comprising Confidence and Supply Agreement with ACT Leader David Seymour and New Zealand First Leader Winston Peters. He also announced his Cabinet line-up, indicating that it will be brisk business soon after they are sworn in by Governor-General Dame Cindy Kiro, which is likely to be on Monday, November 27, 2023.
The leaders were all smiles and Mr Peters was at his jocular best, not losing the opportunity to tell New Zealanders that the Coalition Agreement was reached ‘five months earlier than it did in Germany’ and much earlier than he did in 2017.
Mr Luxon said that the post of Deputy Prime Minister will be on a time-share basis, with Mr Peters in that role for the first 18 months, followed by Mr Seymour.
Mr Peters will take charge of his favourite portfolios of Foreign Affairs and Racing, while Mr Seymour will be a newly created Minister of Regulation, which is expected to have wide powers to reorganising public services and public administration.
Mr Luxon promised New Zealanders that the new government will strengthen the economy, ease the cost of living and deliver tax relief, restore law and order, deliver better public services and strengthen democracy.
“The coalition documents between National and ACT, and National and New Zealand First provide for both ACT and New Zealand First to support the major elements of National’s policy programme including our 100-day plan, our 100-point economic plan, and our tax and fiscal plans, with some adjustments. The National and ACT agreement provides that the government will progress a range of ACT initiatives, and these will be supported by New Zealand First. Equally, the National and New Zealand First coalition agreement outlines a range of New Zealand First priorities, which will be supported by ACT,” he said.
As a part of the coalition agreement, Mr Luxon had to concede his proposal to tax foreign buyers purchasing properties in New Zealand.
“The tax package will continue to be funded through a combination of spending reprioritisation and additional revenue measures. However, as part of National’s agreement with New Zealand First, the proposed foreign buyer tax will no longer go ahead. Policy changes will help offset the loss of revenue from that change. National’s fiscal plan also had buffers which give confidence that tax reduction can still be funded responsibly. The coalition parties believe people should be rewarded for their effort and hard-working Kiwis should keep more of what they earn. National campaigned on that commitment and, next July, the Government will deliver it,” he said.
Mr Luxon said that all three parties have accepted ACT’s policy to speed up the rate at which interest deductibility for rental properties is restored.
“Delivering tax relief is just one part of the government’s plan to rebuild the economy. The government will ease the cost of living, reduce wasteful spending, and lift economic growth to increase opportunities and prosperity for all New Zealanders,” he said.
The parties promised to ‘restore law and order’ during their campaign and Mr Luxon addressed this issue during his speech.
“Restoring law and order will be as important to the government as it is to the public. In addition to National’s policies to tackle gangs and youth crime, the parties have agreed with ACT to re-write the Arms Act and agreed with New Zealand First to train no fewer than 500 new Police,” he said.
The new government is set to remove the Maori Health Authority set up by the previous Labour government. Mr Luxon said that his government will set targets such as shorter wait times in hospitals and deliver public services on the basis of need.
“To lift educational performance, every class will undertake an hour a day each of reading, writing and maths. The parties have agreed to adopt ACT’s policies to reintroduce partnership schools and to allow state schools to become partnership schools,” Mr Luxon said.
Ministers in the Coalition Government
National Cabinet Ministers
Christopher Luxon: Prime Minister, Minister for National Security and Intelligence, Minister Responsible for Ministerial Services
Nicola Willis: Finance Minister, Public Service Minister, Minister for Social Investment, Associate Minister of Climate Change
Chris Bishop: Housing Minister, Infrastructure Minister, Minister for RMA Reform, Minister for Sport and Recreation, Leader of the House, Associate Finance Minister
Shane Reti: Health Minister, Pacific Peoples Minister
Simeon Brown: Minister for Energy, Local Government, Transport, Auckland, Deputy leader of the House
Erica Stanford: Minister of Education, Immigration
Paul Goldsmith: Minister of Arts, Culture and Heritage, Justice, State-owned Enterprises, Treaty of Waitangi Negotiations
Louise Upston: Minister for Community and Voluntary Sector, Social Development and Employment, Child Poverty Reduction
Judith Collins: Attorney-General, Minister of Defence, Digitising Government, the GCSB and NZSIS, Science, Innovation and Technology, Space, and lead coordination Minister for the Government’s response to the Royal Commission’s Report into the Terrorist Attack on the Christchurch Mosques
Mark Mitchell: Minister of Correction, Emergency Management and Recovery, Police
Todd McClay: Minister of Agriculture, Forestry, Hunting and Fishing, Trade and Associate Minister of Foreign Affairs
Tama Potaka: Minister of Conservation, Māori-Crown relations, Māori Development, Whānau Ora, Associate Minister of Housing
Matt Doocey: Minister for ACC, Mental Health, Tourism and Hospitality, Youth, Associate Minister of Health and Transport
Melissa Lee: Minister for Economic Development, Ethnic Communities, Media and Communications, Associate ACC Minister
ACT Party Cabinet Ministers
David Seymour: Deputy Prime Minister from 31 May 2025, Minister for Regulation, Associate Minister of Education (Partnership Schools), Finance and Health (Pharmac)
Brooke van Velden: Minister of Internal Affairs, Workplace Relations and Safety
Nicole McKee: Minister for Courts, Associate Minister of Justice (Firearms)
NZ First Cabinet Ministers
Winston Peters: Deputy Prime Minister (until 31 May 2025), Minister of Foreign Affairs, Minister for Racing
Shane Jones: Minister for Oceans and Fisheries, Regional Development, Resources, Associate Minister of Finance, Energy
Casey Costello: Minister of Customs, Seniors, Associate Minister of Health, Immigration, and Police
Outside Cabinet:
National:
Simon Watts: Minister of Climate Change, Revenue
Penny Simmonds: Minister for Disability Issues, the Environment, Tertiary Education and Skills, Associate Minister for Social Development and Employment
Chris Penk: Minister for Building and Construction, Land Information, Veterans, Associate Minister of Defence, Associate Minister of Immigration
Nicola Grigg: Minister of State for Trade, Minister for Women, Associate Minister of Agriculture (horticulture)
Andrew Bayly: Minister of Commerce and Consumer Affairs, Small Business and Manufacturing, Statistics
ACT:
Andrew Hoggard: Minister for Biosecurity, Food Safety, Associate Minister of Agriculture (Animal Welfare, Skills), Associate Environment
Karen Chhour: Minister for Children, Minister for the Prevention of Family and Sexual Violence
Simon Court: Parliamentary Under-Secretary for the Minister for Infrastructure, and RMA Reform
NZ First:
Mark Patterson: Minister for Rural Communities, Associate Minister of Agriculture
Jenny Marcroft: Parliamentary Under-Secretary to the Minister for Media and Communications
