Government arrangements announced

Prime Minister Helen Clark announced today that Labour had finalised arrangements with the Progressive Party, New Zealand First, United Future, and the Green Party, to enable it to form a government with a majority on confidence and supply.

Helen Clark said the arrangements for the new government will be as follows:

• A coalition agreement has been signed with the Progressive Party. Jim Anderton will continue as a Cabinet Minister.
• New Zealand First and United Future have agreed to confidence and supply agreements for the Labour-led government. The leaders of both parties, Rt Hon Winston Peters and Hon Peter Dunne will both become Ministers outside Cabinet. Collective responsibility will apply to the areas for which they have portfolio responsibility. Rt Hon Winston Peters will become Minister of Foreign Affairs, Minister of Racing, and Associate Minister for Senior Citizens. Hon Peter Dunne will become Minister of Revenue and Associate Minister of Health.
• The Green Party has signed a co-operation agreement with the government in which it undertakes not to oppose confidence or supply for this term of Parliament, and agrees to work with the government on agreed policy and budget initiatives.

Helen Clark said that time and care had been taken by all five parties to negotiate arrangements for a stable and durable government in the interests of New Zealand.

"This afternoon I have advised the Governor General that a Labour-led government has the necessary support in Parliament to form a government."