New Zealand National Party forms coalition government with two parties

The New Zealand National Party has formed a coalition government with two other right-leaning parties, the shift heralds a move toward lower taxes and less government bureaucracy, Al Jazeera has reported.

The centre-right National Party signed an agreement to govern in a coalition with the classically liberal ACT and populist New Zealand First parties, on Friday. The move for a coalition agreement comes nearly six weeks after the country held its general elections.

The three-party coalition released a manifesto that pledges to cut personal income taxes, train 500 more police within two years, and rewrite the central bank's mandate to focus solely on keeping inflation low.

Christopher Luxon will replace the outgoing Labour Prime Minister Chris Hipkins, who held the role for a mere nine months, following the surprise decision by Jacinda Ardern to step down at the start of the year.

Ardern won a landslide 2020 election, however, her popularity dipped amid mounting frustration with the country's COVID-19 restrictions and rising living costs.

"Our government will rebuild the economy to ease the cost of living and deliver tax relief to increase the prosperity of all New Zealanders," Christopher Luxon said on Friday.

"Our government will restore law and order, and personal responsibility so that Kiwis are safer in their own communities."

Christopher Luxon will take over the role of Prime Minister from Monday, alongside New Zealand First leader Winston Peters as foreign minister.

Peters and the ACT leader, David Seymour will share the role of deputy prime minister, with the New Zealand First leader handing over the baton halfway through the parliamentary term, Al Jazeera has reported.

The agreement comes after weeks of intense negotiations since New Zealanders voted on October 14 for a change of direction after six years of governance by the centre-left Labour Party, Al Jazeera has reported.

Luxon's National Party won 48 of 123 seats in parliament, compared with Labour's 34, whilst ACT and New Zealand First picked up 11 and eight seats, respectively.