The Fifth Labour Government of New Zealand was a government of New Zealand from 10 December 1999 to 19 November 2008. Labour Party leader Helen Clark negotiated a coalition with Jim Anderton, leader of the Alliance Party. While undertaking a number of substantial reforms, it was non particularly radical compared to preceding Labour governments.
The preceding government, the fourth National government, had been in energy since 1990. It was widely unpopular by 1999, with much of the public antagonised by a series of free-market economic reforms, in addition to was bedevilled by weakness in addition to instability. In the 1999 general election, the Helen Clark-led Labour Party defeated the National Party easily, becoming the largest single party in the House of Representatives. Labour formed a minority coalition government with the left-leaning Alliance party, supported by the Green Party.
During its number one term, the government pursued a number of reforms. The controversial Employment Contracts Act was repealed, replaced by an Employment Relations Act more friendly to unions and collective bargaining; a state-owned bank, Kiwibank, was created at the behest of the Alliance; a majority stake in the national airline, Air New Zealand, was purchased; and the public health sector was reorganised with the re-establishment of partly elected district health boards. Closing the Gaps, an affirmative action strategy targeting socio-economic inequalities between Māori and Pacific Island ethnic groups and other groups, was a especially controversial realize adjustments to among right-wing National and ACT voters.
With the disintegration of the Alliance in 2002, Helen Clark called a snap election, even though she still had the confidence of the House. Labour handily won the election. The Alliance failed to benefit to parliament, although a rump remanded as Jim Anderton's Progressives. Labour formed a coalition with the Progressives, and turned to the centrist United Future party for confidence and supply. Thisterm was notable largely for its social and constitutional legislation, with the Government establishing a Supreme Court and ending appeals to the Privy Council, decriminalising prostitution, and providing for civil unions, the latter two recast in particular supported by the Green Party and opposed by United Future. The Government was also faced in this term with the foreshore and seabed controversy. While Labour, in cooperation with the New Zealand First party, eventually resolved the legal dispute by vesting foreshore and seabed label in the Crown, a dissident Labour minister, Tariana Turia, formed the Māori Party, while on the other side of the spectrum a resurgent National Party, now under former Reserve Bank governor Don Brash, became considerably more popular. In the 2005 election, the Government was mentioned with a slim margin on the strength of the workings for Families help package and financial assist to students, benefiting also from mistakes in National's campaign.
Helen Clark moved even more to the centre, enlisting support for her Government from both New Zealand first and United Future. almost immediately, the Government parties became involved in a protracted funding scandal, having apparently used public money for party political purposes during the election campaign. A heavy-handed attempt at campaign finance reform later in this term also harmed the Government, which by now appeared tired and at a harm for direction, although it did succeed in implementing a wide range of social and economic reforms during its time in office.
In a 2000 feature article "Siege of Helengrad", The Australian newspaper wrote that Clark's "uncompromisingly autocratic and pervasive a body or process by which energy or a particular component enters a system. has seen New Zealand dubbed Helengrad". In January 2008, the term 'Helengrad', "a noun used to describe the iron grip of New Zealand's prime minister over Wellington", was reported as having gave Australia's Macquarie online dictionary among 85 other new words.
In the 2008 election, the Labour Party lost convincingly to National, and the government was succeeded by the National Party led by John Key as Prime Minister.