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New Zealand Labour signs coalition deal and makes Winston Peters deputy PM

Prime minister-elect Jacinda Ardern and NZ First leader Winston Peters at the coalition agreement signing.
Prime minister-elect Jacinda Ardern and NZ First leader Winston Peters at the coalition agreement signing. Photograph: Hagen Hopkins/Getty Images

New Zealand First and the Labour party have formally signed a coalition agreement, introducing a slew of new policies focusing on climate change, regional development and poverty.

On Tuesday, prime minister elect Jacinda Ardern and NZ First leader Winston Peters – who will serve as deputy prime minister and foreign affairs minister in the new government – signed a commitment in Wellington, pledging to making sure all New Zealanders share in the country’s economic prosperity, which “must” go hand-in hand with environmental responsibility.

Other major commitments include banning foreign buyers from purchasing existing New Zealand homes, reducing immigration by up to 30,000 people a year and reviewing and reforming the Reserve Bank Act.

Speaking after the deal was signed, Arden said: “As a priority, we will restore funding to the health system to allow access for all, ensure all Kiwis can live in warm, dry homes, take action on child poverty and homelessness, crack down on foreign speculators, clean our rivers, and strengthen efforts to tackle climate change and the transition to a low carbon economy.

“We will focus on sustainable economic development, supporting our regional economies, increasing exports, lifting wages and reducing inequality.”

The deal includes NZ$1bn (£0.53bn) in funding for regional development and a commitment to plant one million trees a year.

Other policies agreed include increasing the minimum wage to NZ$20 an hour by 2020, re-entering the Pike River mine, increasing funding for the department of conservation and establishing a climate commission.

New Zealand First will have four cabinet positions in the new government and one under-secretary role, with portfolios to include defence, infrastructure, regional development, children, seniors and internal affairs.

As deputy prime minister and foreign affairs minister, Peters will be taking on roles he has held in previous governments.

From 1996 to 1998 he served as deputy prime minister under a National-led government, and in 2005-2008 he was foreign affairs minister in Helen Clark’s Labour-led government.

Ardern is scheduled to be officially sworn in on Thursday, making her New Zealand’s third female prime minister and, at 37, the country’s youngest leader in 150 years.

The Green party also signed a confidence and supply agreement with Labour on Tuesday and confirmed four of its MPs have roles in government – but not in the cabinet – working on key campaign areas such as climate change, conservation and women.

Deals agreed between the Greens and Labour include making New Zealand a net zero emissions economy by 2050, a substantial investment in alternative transport options such as walking paths and cycleways, overhauling the welfare system and committing to protecting New Zealand’s 3,000 threatened plant and wildlife species.

Last week Peters, whose New Zealand First party won nine seats in September’s general election, said he would form a coalition government with Labour, after weeks of negotiations that saw incumbent Bill English’s National party, which has the largest number of MPs, leave empty-handed.

English confirmed on Tuesday he would remain in charge of the National party, despite losing a general election for the second time as leader.

On Monday, US president Donald Trump called Ardern at her home in Auckland to offer his congratulations. A White House press release said the phone call had reaffirmed the two countries’ close ties.

“The two leaders underscored the importance of the bilateral partnership between the United States and New Zealand and pledged to continue close cooperation on the many priorities the two countries share,” the statement read.

But newspaper USA Today has raised eyebrows in New Zealand by declaring Ardern a “Trump-like leader”, because of her planned cuts to immigration, naming her in a list alongside the Philippines president Rodrigo Duterte and Andrej Babiš, next prime minister of the Czech Republic.

“Call them the political offspring of President Trump if you like,” the article said. “Wealthy, controversial, outspoken and skilled at delivering electoral upsets and victories by appealing to voters’ nativist instincts.”

Last month the Wall Street Journal also compared Ardern to Trump in a tweet Ardern slammed as “offensive”.

“Meet New Zealand’s Justin Trudeau – except she’s more like Trump on immigration,” the WSJ’s tweet read.

On Tuesday morning Ardern spoke with Trudeau, the Canadian prime minister. She has also received calls from the British and Australian prime ministers.