| Abstract: | Dissatisfaction amongst large sections of the electorate with the results of 15 years of economic reform on account of the tardy arrival of the supposed benefits of those reforms, led to the return of a centre‐left, Labour–Alliance–Green coalition in the final months of 1999. The coalition immediately set about revising some of the policies of the previous National Party administration. The privatisation of the Accident Compensation Commission was reversed; further privatisation of the diminished stock of state assets halted. Tax on incomes over $NZ 60,000 was raised, as were pay‐outs to pensioners. Interest repayment on student loans was delayed. Market rents for state houses were abolished, as was bulk funding for schools. Arts funding was increased. Government intervention in regional development was revived. Above all else, the Employment Contracts Act was replaced with legislation that would result in a revival of union power. The Prime Minister herself acknowledged New Zealand now lived in world of global magnitudes. |
