Political shift ahead for NZ

Prime Minister-elect Jacinda Ardern signs coalition agreement with NZ First leader Winston Peters at Parliament yesterday. Photo: Getty Images
Prime Minister-elect Jacinda Ardern signs coalition agreement with NZ First leader Winston Peters at Parliament yesterday. Photo: Getty Images

New Zealand's political landscape is in for a major shake-up in the next few years and regions are set to benefit from New Zealand First's decision to form a coalition with Labour.

It appears from details of the Labour-NZ First agreement, released yesterday, NZ First leader Winston Peters drove a hard bargain and Ms Ardern and her advisers acquiesced.

Reading through the seven-page agreement, it seems NZ First is the major winner of the negotiations, although Ms Ardern will still be prime minister.

Mr Peters is seeking redevelopment of regional development as his legacy, in part repaying those regions for their support of NZ First in consecutive elections.

Under the agreement, there will be a $1billion regional development (provincial growth) funding including investment in regional rail, planting 100million trees per year, commissioning a feasibility study on the options for moving the Ports of Auckland, including giving Northport (Whangarei) serious consideration, and other large-scale projects.

Other measures sure to find favour in the regions include a commitment to relocate government functions to the regions.

The National-led government took many government functions away from areas such as Dunedin and Invercargill, moving them north to Christchurch and other more northern centres.

As earlier indicated, the incoming Government will re-establish the New Zealand Forestry Service somewhere in regional New Zealand.

Mr Peters was keen for the service to be relocated in Northland while Labour preferred Rotorua.

Farmers will not face a water tax in this term of Parliament but exporters of bottled water will pay royalties.

On the economy and health, Labour and NZ First are in much agreement, although again, NZ First's fingerprints are all over the deal.

There will be a review and reform of the Reserve Bank Act and a review of the official measures for unemployment to ensure they accurately reflect the workforce.

Kiwibank's capital base and capabilities will likely be enlarged to ensure it is positioned to become the Government's banker when the contract is next reviewed.

The Overseas Investment Act will be strengthened and a comprehensive register of foreign-owned land and housing will be undertaken.

In health, a Mental Health Commission will be re-established, there will be annual free health checks for seniors, including an eye check, as part of the SuperGold Card, and free breast screening will be progressively increased to the age of 74.

The qualifying age for National superannuation will remain at 65, a pledge both Labour and NZ First made during the election campaign.

Ms Ardern said the agreements with NZ First and the Green Party laid the foundation for a strong and proactive coalition government.

''This will be a Government of action. We will be determined and focused on what needs to change to make a better life for all New Zealanders.''

Bill English has committed to staying on as National leader and contesting the 2020 election.

Mr English was re-elected uncontested in a caucus meeting yesterday afternoon, the mood of which he described as sobering but positive.

dene.mackenzie@odt.co.nz

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