Jim Anderton - Coalition Government

Coalition Government

By the late 1990s, Labour under Helen Clark had largely purged itself of the influence of Roger Douglas. Realising that the cost of a split in the left-wing vote was a continued National government, the two parties agreed to form a coalition for the 1999 elections. Anderton became Deputy Prime Minister after National lost the election. He was also given the newly created post of Minister of Economic Development, which had an emphasis on job creation and regional development initiatives.

Towards the end of the parliamentary term Anderton came into conflict with the Alliance's administrative wing. Party president Matt McCarten and his allies claimed that the Alliance had become too close to Labour, and that it should take a less moderate path; Anderton replied that some moderation was required for the Alliance to accomplish any of its goals. There were complaints that Anderton was too dominant in the party's decision-making and over the fact that he supported the government's stance on the bombing of Afghanistan, while the executive and wider membership opposed it. Eventually, Anderton and three other MPs left the Alliance, establishing the Progressive Coalition, later renamed the Progressive Party. In order to get around the Electoral Integrity Act, which had been passed largely because of Anderton's complaints about waka jumping, Anderton technically remained the Alliance's parliamentary leader until the writ was dropped for the 2002 election.

In the election, Anderton was returned to Parliament, and the Progressives took the Alliance's place as Labour's coalition partner. Although Anderton won his electorate, the small amount of support the Progressives received (1.4% of the party vote) was enough for only one other Progressive – deputy leader Matt Robson – to enter Parliament. Anderton gave up the deputy prime minister's post to Minister of Finance and Labour deputy leader Michael Cullen. He remained Minister of Economic Development, and also held other ministerial portfolios. He ranked third in Cabinet, behind Clark and Cullen.

In the runup to the 2005 election Anderton renamed his party "Jim Anderton's Progressive Party". However, he was the only Progressive returned to Parliament by a narrow margin after many left-wing voters voted for Labour to prevent a National government from being elected due to a split on the left. He became Minister of Agriculture, Minister for Biosecurity, Minister of Fisheries, Minister of Forestry, Minister Responsible for the Public Trust, Associate Minister of Health, and Associate Minister for Tertiary Education.

The 2008 election saw a swing to the right, with National winning approximately 45% of the party vote to Labour's 34%. Anderton retained his seat but the Progressives' share of the party vote remained low, at less than one percent. In a move described as "unorthodox" by the New Zealand Herald, Anderton announced that he would remain in coalition with Labour in opposition. He said that a priority for the Progressives would be to support better access to dental care.