Next NZ Government Must Deliver or Be Punished, Former PM Says

Tracy Withers
·2 min read
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(Bloomberg) -- New Zealand’s new center-right government must make progress in key areas of voter concern or it will face a backlash as soon as the 2026 election, former prime minister Bill English said.

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“They will need to deliver some significant shifts in the performance of public services, some progress on the fiscal deficit, some lifts in investor confidence or voters will feel let down and they’ll suffer accordingly in three years’ time,” English, also a former finance minister, told Bloomberg Television Monday in Wellington.

New Zealand turned to the center-right in Saturday’s election, backing the National Party to form a new administration and ending six years of rule under the left-leaning Labour Party. Still, National will need to share power with the libertarian ACT Party — and possibly the nationalist New Zealand First Party too — to secure a majority in parliament.

English was prime minister for eleven months before the 2017 election, at which he led National to a 44% share of the vote. But he was unable to agree terms with New Zealand First leader Winston Peters, who instead backed Labour to form a government led by Jacinda Ardern.

English expects current National leader Christopher Luxon to strike a deal with New Zealand First, noting the leaders are sounding “pretty reasonable and constructive” and that Peters has less of a bargaining position this time around, given Labour ruled out working with him.

“They know that the public isn’t interested in a whole lot more politics,” English said. “It’s one of the reasons they got rid of the last government — too much politics and not enough performance.”

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Luxon, who has been in politics just three years after a successful business career, has the skills to lead a government and steer the economy, English said.

“Politics is not the same as business but the job that now needs to be done in New Zealand is probably more business-like and less political than for some time,” he said. “The public are looking for just sensible, considered management and there’s no doubt that Chris Luxon’s got the skills for that.”

English suggested the basic explanation for Labour’s demise, which saw it drop to 27% of the vote from an unprecedented 50% in 2020, was a lack of performance.

“There is a pattern around the world that governments who think that they can govern with aspirational objectives, and that putting out press releases is the business of government, are going to come under pressure,” he said.

--With assistance from Haidi Lun and Shery Ahn.

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