The coalition agreement between Labour and New Zealand First has been released today - setting out the policy plans for the new government.
It is the result of 12 days of negotiations which ultimately saw New Zealand First leader Winston Peters and his party choose to put Labour into power.
Jacinda Ardern said today represents a huge step change in the future of the NZ Government.
Today's agreements build a clear agenda, prioritising regional economic development and job creation, Ardern said.
"There has been a period of neglect over the last nine years for our regions."
The minimum wage will go up to $20 by 2021. Ardern says $16.50 starting in April 2018, will rise in steps since then.
"We are a low wage economy... New Zealanders deserve a wage they can live on... it is no longer acceptable to try and expect families to survive on the minimum wage as it currently is."
There will be real progress on the environment and increases to the minimum wage, she says.
Peters said NZ First was never going to get everything it wanted, but his team is entirely happy with the agreements.
The coalition agreement also has a clause preventing 'waka jumping', which Peters says is a great idea.
There had been too many examples over a long period of MPs who thought they were bigger than their parties. "I am preaching... some practical thing I believe in."
Ardern says the new administration will be a "government of action".
"As a priority, we will restore funding to the health system to allow access for all, ensure all Kiwis can live in warm, dry homes, take action on child poverty and homelessness, crack down on foreign speculators, clean our rivers, and strengthen efforts to tackle climate change and the transition to a low carbon economy.
"We will focus on sustainable economic development, supporting our regional economies, increasing exports, lifting wages and reducing inequality.
"We are committed to being fiscally responsible and growing the economy, while ensuring all New Zealanders share in our economic prosperity. We firmly believe economic growth must also go hand-in-hand with environmental responsibility."
On immigration, Ardern confirmed that the plan was to reduce the number of immigrants to 20,000 - 30,000. Peters says his party wanted bigger drops, but negotiations meant not everything was possible.
Key points
NZF coalition agreement with Labour, at a glance:
Regional development
A $1 billion per year Regional Development (Provincial Growth) Fund
Rail
Significant investment in regional rail.
Forestry
Re-establish the New Zealand Forestry Service, and planting 100 million trees per year in a Billion Trees Planting Programme.
Auckland Port
Commissioning a feasibility study on moving the Ports of Auckland to Northport
Biosecurity
A funding increase to Biosecurity NZ and a select committee Inquiry into biosecurity
Irrigation
Honour existing Crown Irrigation investment commitments
Monetary policy
Review and reform the Reserve Bank Act
Minimum wage
Increase to $20 an hour by 2020, with the final increase to take effect in April 2021
Tax
Increase penalties for corporate fraud and tax evasion, and introduce a tax on exports of bottled water
KiwiBank
Investigate KiwiBank's capabilities to become the Government's banker when that contract is next renewed.
Foreign ownership
Strengthen the Overseas Investment Act and create a comprehensive register of foreign-owned land and housing
Research and development
Increase R&D spending to 2 per cent of GDP over 10 years
Health
Re-establish the Mental Health Commission, annual free health checks for seniors with the SuperGold card, free doctors' visits for all under 14s, increasing the age for free breast screening to 74
Education
Restore funding for gifted students and Computers in Homes, pilot counsellors in primary schools, free driver training for all secondary school students, restart Te Kotahitanga teacher professional development
Defence
Re-examine the Defence procurement programme
Housing
Establish a Housing Commission
Law and Order
Work towards 1800 new police officers over three years, investigate a volunteer rural constabulary programme, increase funding for Community Law Centres, establish a Criminal Cases Review Commission
Social Development
More funding for family violence networks, including Women's Refuge and Shakti, pilot a Youth Education, Training and Employment programme and provide 800 extra places for the LSV scheme, introduce Ready for Work programmes
Superannuation
Keep age of eligibility at 65
Environment
Move to an emissions-free government-vehicle fleet by 2025/26, introduce a Zero Carbon Act and independent Climate Commission, which will consider including agriculture into the ETS, establish a tyre stewardship fund, piloting alternatives to 1080, work towards a Kermadec Ocean Sanctuary
Conservation
More funding for the Department of Conservation
Democracy
No new parliamentary building this term, an independent review of electoral processes and enrolments, and a review of the parliamentary processes, and pass a 'Waka Jumping' bill
Immigration
Ensure work visas reflect skills shortages and cut down on low quality international education courses. Take action on migrant exploitation, particularly international students
Pike River
Commit to re-entry to Pike River
Other
-Build a Maori Battalion museum at Waitangi
-Review retail-power pricing
-Allow a conscience vote on a NZ First euthanasia referendum bill
-A public inquiry "a decade after Shand" to investigate the drivers of local government costs
-Support NZ First's racing policy
-Work towards a Free Trade Agreement with the Russia-Belarus-Kazakhstan Customs Union
-Record a Cabinet minute regarding the lack of process followed prior to the National-led government sponsorship of UNSC2334, concerning the Israeli settlements in Palestinian territories occupied since 1967
Comments
So as most of NZ businesses are small, they will pass the massive minimum wage increase on in price rises so up goes inflation and no real gain. (Aside from those employers who close due to an inability to cover the increase). The lift, which whilst noble, is too big too quick. So of course this means in order to make this work, a tax increase is on the way for the 27% of those who actually contribute to the welfare regime.
An FTA with Russia was part of the coalition deal!!