New Zealand's National Party forms centre-right coalition after intense negotiations

The deal ends six weeks of intense negotiations following a general election on October 14
Deputy Prime Minister Winston Peters (left), Prime Minister Christopher Luxon (centre) and Deputy Prime Minister David Seymour
Getty Images
Sami Quadri24 November 2023

New Zealand's National Party has reached an agreement to form a government after six weeks of intense negotiations following a general election last month.

The centre-right party won the largest share of votes but needed the support of right-wing Act New Zealand and the populist New Zealand First parties to form a majority government.

"Those agreements are now before the parties for ratification," the incoming Prime Minister Christopher Luxon said.

New Zealanders can expect tax cuts, more police on the streets and less government bureaucracy, according to the three leaders who signed the agreement on Friday.

The deal ends six weeks of intense negotiations following a general election on October 14.

Mr Luxon will serve as prime minister after his conservative National Party won 38 per cent of the vote, the largest proportion of any party.

He thanked New Zealanders for their patience during the negotiations and said each party had made policy compromises to close the deal.

“Our government will rebuild the economy to ease the cost of living, and deliver tax relief to increase the prosperity of all New Zealanders,” Mr Luxon said. “Our government will restore law and order, and personal responsibility, so that Kiwis are safer in their own communities.”

The leaders agreed to make cuts to the public service and train 500 more police within two years. They also agreed to change the mandate of the nation’s Reserve Bank so it focuses solely on keeping inflation low, rather than its current dual mandate to keep low inflation while maintaining maximum employment.

The deputy prime minister role will be split between the other two leaders. It will be held for the first 18 months of the election cycle by maverick 78-year-old lawmaker Winston Peters, who leads the populist New Zealand First party, before he hands the baton for the remaining 18 months to David Seymour, leader of the libertarian ACT Party.

Mr Peters, who has long had an acrimonious relationship with the news media, took aim at some reporters.

“Look, please don’t start off this government with your antagonistic attitude,” he said, grinning, in response to one reporter’s question. “You’ve lost. You lost. Right?”

Mr Peters, who will also be foreign minister, said he didn’t foresee any changes to New Zealand’s current foreign policy on China. New Zealand depends on China to buy many of its agricultural exports but has also expressed growing concern about the country’s increased assertiveness in the Pacific.

Mr Seymour, who will take on the newly created role of regulation minister, said the country had been going in the wrong direction under the previous liberal government, with prices and crime rising.

“We must now draw a line under that and work to ensure New Zealanders have hope that a government can, indeed, deliver better public services and return for their hard-earned taxes,” Mr Seymour said.

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