Key entered the New Zealand Parliament representing the Auckland electorate of Helensville as one of the few new National members of parliament in the election of 2002 following National's significant defeat of that year. In 2004, he was appointed Finance Spokesman for National and eventually succeeded Don Brash as the National Party leader in 2006. After two years as leader of the Opposition, Key led his party to victory at the November 2008 general election. He was subsequently sworn in as prime minister on 19 November 2008. The National government went on to win two more general elections under his leadership: in November 2011 and September 2014. Key was expected to contest for a fourth term of office at the 2017 general election, but on 5 December 2016 he resigned as prime minister and leader of the National Party.[3] He was succeeded by Bill English on 12 December 2016. After resigning from both posts in December 2016 and leaving politics, Key was appointed to the board of directors and role of chairman in several New Zealand corporations.
Key's first job was as an auditor at McCulloch Menzies in 1982. He then became a project manager at Christchurch-based clothing manufacturer Lane Walker Rudkin for two years.[17] He began working as a foreign exchange dealer at Elders Finance in Wellington, and rose to the position of head foreign exchange trader two years later,[18] then moved to Auckland-based Bankers Trust in 1988.[10]
In 1995, he joined Merrill Lynch as head of Asian foreign exchange in Singapore. That same year he was promoted to Merrill's global head of foreign exchange, based in London, where he may have earned around US$2.25 million a year including bonuses, which is about NZ$5 million at 2001 exchange rates.[10][19] Some co-workers called him "the smiling assassin" for maintaining his usual cheerfulness while sacking dozens (some say hundreds) of staff after heavy losses from the 1998 Russian financial crisis.[11][19] He was a member of the Foreign Exchange Committee of the New York Federal Reserve Bank from 1999 to 2001.[20]
In 1998, on learning of his interest in pursuing a political career, National Party president John Slater began working to recruit him. Former party leader Jenny Shipley describes him as one of the people she "deliberately sought out and put my head on the line–either privately or publicly–to get them in there".[11][21]
Auckland's population growth led to the formation for the 2002 general election of a new electorate called Helensville, which covered the north-western corner of the Auckland urban area.[22] Key beat long-serving National MP Brian Neeson (whose own Waitakere seat had moved on paper to being a Labour seat through the boundary changes) for the National Party Helensville selection. At the 2002 general election Key won the seat with a majority of 1,705, ahead of Labour's Gary Russell, with Neeson, now standing as an independent, coming third.[23]
The National Party was heavily defeated in the 2002 election, receiving only 20.9% of the party vote – the party's worst-ever election result.[24] Following the fallout, a leadership coup against the incumbent Bill English was launched by Don Brash, another of the 2002 recruits, in October 2003. English and his supporters offered Key the finance spokesman position for his vote and were confident they had the numbers with him on their side. Brash narrowly won 14 votes to 12 and at the time it was thought Key had changed his support to Brash. The votes were confidential, although later Key stated that he did vote for English.[24]
Key won re-election at the 2005 general election, garnering 63% of votes cast.[25] He increased his majority again in 2008, gaining 73% of the electorate vote.[1]
Finance spokesman
The low numbers in the National caucus meant Key was given more opportunities and responsibilities than most new Members of Parliament would.[24] After serving as deputy finance spokesman under Brash, Key was promoted to the Oppositionfront benches in 2004 as party spokesman for finance.[26] Key was up against Michael Cullen, the Minister of Finance and a veteran of 23 years in parliament. There was concern he would be out of his depth going up against Cullen in his first term and there was talk among the party of trying to "protect" Key. During the 2005 election campaign political commentators felt Key matched Cullen in the debates, although he may have benefited from Labour focusing their campaign on discrediting Brash.[24]
Although Brash lost the election, Key remained as finance spokesman.[26] He was promoted to number four on the list, partly due to his success at selling the party's tax package during the campaign.[27] While Keys ambition to become leader had been telegraphed from early in his political career, he was now beginning to rate highly on preferred prime minister polls.[24] Rumours that Key was looking to take over the leadership circulated and there was an unofficial agreement between Brash and Key that he would be the natural successor.[24]
Things came to a head earlier than expected. In November 2006 Brash resigned as leader, citing damaging speculation over his future as the reason. Brash's resignation followed controversies over an extramarital affair, and over leaked internal National Party documents that were later published in the book The Hollow Men.[28] After months of speculation, Key stood for leadership of the party and was elected unopposed.[29]
Leader of the Opposition
On becoming leader Key convinced Gerry Brownlee, deputy leader under Brash, to step aside and promoted his main rival English to deputy leader and finance spokesman. He showed a ruthless streak by unceremoniously pushing Brash out and refusing to allow another one of the 2002 recruits, Brian Connell, back into the caucus.[24] In his maiden speech as National Party leader, Key spoke of an "underclass" that had been "allowed to develop" in New Zealand, a theme which received a large amount of media coverage.[30] Key followed up on this speech in February 2007 by committing his party to a programme which would provide food in the poorest schools in New Zealand.[31]
In opposition he was instrumental in promoting National's change of policy regarding keeping superannuation and Kiwibank.[27] He also supported interest-free student loans and early childhood education funding.[24] He relented on his stance in opposition to Sue Bradford's Child Discipline Bill, which sought to remove "reasonable force" as a defence for parents charged with prima facie assault of their children.[32] Key and Prime Minister Helen Clark agreed a compromise – giving police the discretion to overlook smacking they regarded as "inconsequential".[33]
In August 2007 Key came in for criticism when he changed his position regarding the Therapeutic Products and Medicine Bill.[34] At the same time Labour's Trevor Mallard hinted in Parliament that Labour would try to link Key to the 1987 "H-Fee" scandal, which involved Key's former employer Elders Merchant Finance and a payment to Equiticorp Chief Executive Allan Hawkins. Hawkins and Elders executive Ken Jarrett were later jailed for fraud. Key declaring that he had left Elders months before the event, that he had no knowledge of the deal, and that his interview with the Serious Fraud Office (SFO) during the investigation into the affair could only have helped to convict the people involved. Then-SFO director Charles Sturt publicly supported Key's statement.[35][36]
Labour MPs criticised Key for not releasing specific policy information at their annual conference. Key responded that National would set its own policy agenda and that there was adequate time before the next election for voters to digest National Party policy proposals.[37]
John Key (right),with (from left to right) son Max,wife Bronagh,and daughter Stephie,celebrating on election night,8 November 2008
Key became prime minister following the general election on 8 November 2008,which signalled an end to the Labour-led government of nine years under Clark. The National Party won 45% of the party vote and 58 of the 122 seats in Parliament,overtaking the incumbent majority Labour Party.[38]
Key was sworn in as prime minister and Minister of Tourism[40] and also appointed as a member of the Executive Council[41] on 19 November 2008,along with his nominated cabinet.[42] He chose Bill English as his Deputy Prime Minister and Minister of Finance. During his first term in office National remained high in the polls and one commentator described support for Key as "stratospheric".[43] In 2011 he was nicknamed "Teflon John" in the popular media,as nothing damaging to his reputation seemed to "stick" to him.[44]
Key's government introduced several bold economic policies in response to the global economic downturn that began shortly after he took office. The government introduced a plan of personal tax cuts,reducing taxes on all income;the top personal tax rate was lowered from 39% to 38% and then 33%.[45] In its first budget the government raised the rate of Goods and Services Tax (GST) from 12.5% to 15%,despite Key previously stating that an increase would not happen under a National government.[46] Key's government also enacted several austerity measures.[4] His government declined to renew license agreements for multiple television channels,including TVNZ 6,TVNZ 7,Kidzone and Heartland,while reducing funding for Radio New Zealand in real terms.[5]
In January 2009,after addressing Chinese New Year celebrations at the Greenlane ASB Showgrounds,Key tripped after coming down a small set of stairs in front of cameras,leaving him with a broken right arm and "embarrassed".[47] Later that year,when arriving at the Ngāpuhi Te Tii Waitangi Marae the day before Waitangi Day,Key was briefly shoved and grabbed by two protesters before diplomatic protection officers pulled them off. He told reporters he was "quite shocked" but continued onto the marae and spoke,while police took the two men away and charged them with assault.[48][49]
Key was tied with the National Cycleway Project since its conception at the national Job Summit in early 2009. He proposed it,and as Minister for Tourism,was instrumental in getting NZ$50 million approved for initial construction work.[50]
John and Bronagh Key with Barack and Michelle Obama at the Metropolitan Museum in New York,23 September 2009.
On 22 February 2011 a 6.3 magnitude earthquake struck Christchurch,causing widespread damage to the city region and significantly affecting the national economy. It was New Zealand's third deadliest natural disaster,killing 185 people.[56][57] Addressing the nation,Key said that the disaster "...may well be New Zealand's darkest day".[58][59] On 29 March 2011,Key created the Canterbury Earthquake Recovery Authority (CERA) to manage the earthquake recovery,co-operating with the government,local councils and residents.[60]
In October 2011,Key was caught up in a controversy over the replacement of 34 three-year-old Government BMW limousines with new ones at a time of economic restraint. Initially,Key denied any knowledge of the plan,although reports later surfaced showing that his office was aware of the deal. Political opponents accused Key and his government of hypocrisy;he later apologised,calling it a "sloppy" deal,effectively placing most of the blame on his chief of staff.[63][64]
Shortly before the general election in November 2011,a recording was made of a conversation between Key and ACT Party candidateJohn Banks that they considered private –though the conversation took place in a public cafe.[65] Key made a complaint to the police and compared the incident to illegal phone hacking in the News of the World scandal in Britain.[66] The recording allegedly concerned the leadership of ACT and disparaging remarks about elderly New Zealand First supporters.[67] Journalists and opposition parties demanded the release of the tapes[66] and the affair was nicknamed 'teapot tape'.[66] A senior barrister criticised Key,stating that the comparison of the recording to the phone hacking scandal was a "cheap shot".[66]
Statements made by Key regarding New Zealand's national credit rating proved controversial. In October 2011 he claimed that Standard &Poor's (S&P) had said that "if there was a change of Government,that downgrade would be much more likely". S&P contradicted the claim,bringing Key's credibility into question.[68][69] National won the election,but New Zealand's credit rating was subsequently downgraded anyway –by two different agencies –Standard and Poor's and Fitch Group.[70]
Second term:2011–2014
Sir Jerry Mateparae,the Governor-General,arrives at Parliament to be met by Key,July 2011.
The general election on 26 November 2011 saw National increase its share of the vote and gain a seat,while Labour suffered further losses.[71] Key called the election a "very happy night" and a "strong and solid win" for his party.[72] The Prime Minister re-negotiated confidence and supply agreements with United Future,[73] the ACT Party[73] and the Māori Party,[74] to secure a second term of government.
In 2012,Key was implicated in the arrest of Kim Dotcom and the subsequent revelations that the Government Communications Security Bureau (GCSB) had illegally spied on Dotcom.[75] As prime minister,Key was directly responsible for the GCSB,[76] which is not allowed to spy on New Zealand citizens –and Dotcom had been granted permanent residency. Three days later,Key apologised for the illegal spying. "I apologize to Mr Dotcom. I apologize to New Zealanders because every New Zealander…is entitled to be protected from the law when it comes to the GCSB,and we failed to provide that appropriate protection for him."[77] It subsequently came to light that Deputy Prime Minister Bill English had been asked by the GCSB to sign a "ministerial certificate" suppressing details of the bureau's involvement in the case while Key was overseas –the only time this had been done in the last ten years.[78]
The fallout from Dotcom's arrest continued in December when the High Court ordered the GCSB to "confirm all entities" to which it gave information,opening the door for Dotcom to sue for damages –against the spy agency and the police.[79] Later that month,Key's rating as preferred PM dropped to 39% –the first time in his four years as prime minister that his rating had slipped below 40%.[80] It emerged that Key had known Ian Fletcher,head of the GCSB,since they were at school,but Key denied he had 'shoulder-tapped' Fletcher for the role.[81] Later Key's office released a statement saying he rang Fletcher and recommended he apply for the position at GCSB.[81] Key said he hadn't originally mentioned the phone call because he "forgot".[82] Political commentator Bryce Edwards called it the "most appalling political management since he became Prime Minister back in 2008".[83]
Key continued New Zealand's push for a spot on the UN Security Council while in New York in 2013.[84][85] There he accused rival candidates Spain and Turkey of using aid money to buy votes from small African countries,and said New Zealand would not be spending its way onto the Council.[86][87] While in New York,Key suddenly fell ill,but recovered in time for meetings with representatives from other countries ahead of the General Assembly.[88]
In April 2013,whilst visiting Chinese president Xi Jinping in Beijing,Key made headlines by suggesting New Zealand would back any United States or Australian military action against North Korea.[89] The following day he backtracked,saying the chance of New Zealand troops entering North Korea was "so far off the planet".[90]
Third term:2014–2016
Key with the Indian Prime Minister Narendra Modi,31 March 2016.
The general election on 20 September 2014 saw the National Government returned again. National won a plurality with 47.0% of the party vote and 60 of the 121 seats. On election night counts the party appeared to hold the first majority since 1994 with 61 seats,but lost a list seat (for Maureen Pugh) to the Green Party on the official count (including special votes) of the party vote.[91] National re-entered a confidence and supply arrangement with United Future,the ACT Party and the Māori Party.[92][93][94]
In April 2015,Key acknowledged that he had pulled a waitress' ponytail multiple times over several months;[99] when Key learnt she had taken offence,he apologised. International media reported the incident as "ponytail-gate".[100]
Key had long supported changing the flag of New Zealand,and during the 2014 general election campaign promised a referendum on the issue.[101] Following the election win,two New Zealand flag referendums were held in November/December 2015 and March 2016. The second resulted in the retention of the current flag.[102] Critics (both national and international) charged that the referendums were unnecessary,expensive and a "wasteful vanity project".[102]
The New Zealand housing crisis took hold substantially following Key's third term. From the time Key took office until the year he left,average housing prices had more than doubled.[103] Key repeatedly refused to call the property bubble a crisis,claiming it instead was a "challenge". The prime minister was challenged over his criticism of Helen Clark's government's response to the housing crisis during the 2008 campaign,but reluctance to take a stand now it had worsened considerably.[103] A Newshub poll released in May 2016 showed that 76% of New Zealanders felt the government was not doing enough to control the housing market,while only 20 per cent thought it had housing under control.[104]
International trade and the negotiation of free-trade agreements were a priority in Key's third term. He was a leading advocate of the Trans-Pacific Partnership (TPP),also supporting the Trans-Pacific Strategic Economic Partnership (TPSEP). Both agreements provide for a multilateral free-trade area in the Asia–Pacific region. In a September 2016 speech to the Council of Foreign Relations,Key said "[TPP] will boost our economy by at least $2.7 billion a year by 2030. It will help diversify our economy and create more jobs and higher incomes for New Zealanders".[105] Key was particularly intent on securing the participation of the United States in the agreement;to this end,he discussed TPP with President Barack Obama in April 2016,[106] and hosted Secretary of State John Kerry in Wellington,9–13 November 2016.[107] The finalised TPP proposal was signed on 4 February 2016 in Auckland,concluding seven years of negotiations.[108] In January 2017,US President Donald Trump signed a presidential memorandum to withdrawing the United States' signature from the agreement,making its ratification virtually impossible.[109]
In February 2016,Key reached an agreement with Australian Prime MinisterMalcolm Turnbull to grant New Zealanders living in Australia a pathway to citizenship if they were earning five times over the average wage.[110] As a result of this agreement,the Australian Government introduced the "Skilled Independent visa (subclass 189)" in July 2017 to fast-track the Australian citizenship naturalisation process for New Zealanders living in Australia. New Zealanders living in Australia for at least five years and earning an annual income over A$53,900 were eligible for the visa. By late February 2018,1,512 Subclass 189 visas had been issued.[111][112] However,this visa scheme was criticised by the "Ozkiwi lobby" since two-thirds of New Zealanders living in Australia did not meet the qualifying wage.[113]
Key resigned as prime minister and leader of the National Party effective from 12 December 2016,and instructed the party to put into motion the processes to elect a new leader. He expressed interest in spending more time with his family,stating that he had "never seen [himself] as a career politician" and that "this feels the right time to go". Media reports described the decision as unexpected,and noted the popularity of Key and his party.[115][116]Bill English won the 2016 New Zealand National Party leadership election to succeed Key.[117]
Post-prime ministerial career
Following his resignation,Key stated that he would leave Parliament before the 2017 general election. However,he stated that he would resign within six months of the election so as to not trigger a by-election in the Helensville electorate.[3] He gave his valedictory speech in Parliament on 22 March 2017 and formally resigned the following month,on 14 April.[118][119]
In May 2017,Key was appointed to the board of directors of Air New Zealand,and took up the position on 1 September 2017.[120][121] He was also appointed chairman of ANZ Bank New Zealand,taking up the position on 18 October 2017.[121] On 31 March 2020,Key stood down as a director of Air New Zealand.[122]
Key's views were largely aligned with his own party's view. However,he noted that his differences from his predecessor are more of style and focus rather than view.[123]
Alcohol regulation
In 2008 Key voted for an attempt to raise the legal drinking age from 18 back to 20,[124] but ignored a Law Commission recommendation to increase levies on alcohol.[125] He claimed there was "no appetite" for such a move.[126] A report on public attitudes to alcohol law reform was later discovered,which indicated that in 2010,when he made this claim,56% of New Zealanders supported a price increase.[127]
Climate change
Key says that global warming is a real phenomenon,and that the Government needed to implement measures to reduce human contribution to global warming.[128] Key committed the National Party to working towards reducing greenhouse emissions in New Zealand by 50% within the next fifty years.[129] Commentators note that as late as 2005,Key made statements indicating that he was sceptical of the effects and impact of climate change.[128][130]
COVID-19
In September 2021,Key criticised the Labour Government's elimination-based lockdown policies in response to the COVID-19 pandemic in New Zealand,likening it to making New Zealand a hermit kingdom like North Korea. He also accused the Government of ruling by fear and lacking a post-lockdown strategy. To speed up COVID-19 vaccination,he recommended boosting funding for Māori and Pasifika health providers,introducing financial incentives for young people,and allowing only vaccinated people into licensed premises.[131][132]TVNZ journalist Jack Tame described Key's views on the Government's handling of COVID-19 as provocative but praised his five-point plan as a "collection of sensible ideas worthy of consideration."[133]
As a first-term MP in 2003,Key criticised the Labour-led government's stance on the Invasion of Iraq,claiming that New Zealand was "missing in action" by failing to support its ANZUS allies,the United States and Australia.[136] In August 2007 Key claimed that he would have taken a similar position to Clark and not sent troops to Iraq.[137] In response,the Government argued that his comments from 2003 suggest that Key would have deployed troops had he been prime minister at the time.[137]
In August 2022,Key described Speaker of the U.S. House of RepresentativesNancy Pelosi's visit to Taiwan as "reckless" and provocative towards China during an interview with TVNZ journalist Jack Tame. Since Beijing regarded the visit as a violation of the One China Policy,China had downgraded bilateral relations with the United States. During his premiership,Key had cultivated a close relationship with President of ChinaXi Jinping,describing Xi as "extremely trustworthy,very open,consistent."[138][139]
In early August 2024,Key spoke at the National Party's national conference and urged the National-led government to thread carefully on Māori issues including the Treaty Principles Bill (which had been introduced by coalition partner ACT),the planned repeal of section 7AA of the Oranga Tamariki Act 1989 and National's decision to overrule a court ruling on the Marine and Coastal Area (Takutai Moana) Act 2011. He said:"The important thing is that we're all New Zealanders and I think everybody wants to live in a place where we can respect one another,get along well and foster a better New Zealand. So I'd kind of encourage everyone to maybe take the temperature down a wee bit."[141]
Marriage
Key had a mixed voting record on social issues. In 2004 he voted against the bill creating civil unions,[142] stating that,while he personally supports such unions,he acted in accordance with his electorate's views.[143] However,in 2005,Key was part of a large bloc of MPs voting to defeat a bill that defined marriage as being between a man and a woman.[144]
Like his predecessor Helen Clark,Key views a New Zealand republic as "inevitable",although probably not for another decade. "If Australia becomes a republic there is no question it will set off quite an intense debate on this side of the Tasman",he said. "We would have to have a referendum if we wanted to move towards it."[148] Key later stated that he was a monarchist,and that a New Zealand republic would "Not [happen] under my watch".[149] In 2009 Key's government restored titular honours,including knighthoods and damehoods —the abolishment of these titles in 2000 had been seen as an advancement towards republicanism.[150]
Privatisation
Key noted others' concern at the pace of asset sales,but stated that the arguments against selling assets in the 1980s were largely irrational.[151] In a 2002 interview,he said that "some form of orientation towards privatisation" in health,education and superannuation,such as giving firms tax breaks for employer super schemes,made sense.[152] After his party won a plurality in the 2011 election,Key rejected claims that the National Government lacked a mandate to partially privatise state-owned assets.[153]
Personal life
Personal wealth
On 25 July 2008,Key was added to the New Zealand National Business Review (NBR) Rich List for the first time. The list details the wealthiest New Zealand individuals and family groups. He had an estimated wealth of NZ$50 million,[154] which made him the wealthiest New Zealand Member of Parliament,[155] and the wealthiest prime minister ever.[156] In the 2016 NBR Rich List,Key had an estimated wealth of NZ$60 million. Most of his financial investments are held in a blind trust.[157]
Family
Key married Bronagh Irene Dougan in 1984;they met when they were both students at Burnside High School.[11] She has a BCom degree,and worked as a personnel consultant before becoming a full-time mother. They have two children,Stephie and Max.[11] Max is a night-time radio host for George FM,and is also a singer.[158] Stephie is a performance artist.[159]
Religious views
In 2008,Key stated that he attended church frequently with his children,but was an agnostic.[160][161] He has said that he does not believe in an afterlife,and sees religion as "doing the right thing".[160]
Private pilot licence
In October 2024,Key revealed that he began studying for helicopter license during the COVID-19 lockdowns in New Zealand and has since logged 280 hours of flight time. Key owns a Guimbal Cabri G2,which he has customised with the proposed alternative New Zealand flag design,three white rabbit emblems for good luck,and his personal callsign,ZK-IJK. Key stated in the news that he mostly flies his helicopter to golf courses.[162][163]
On 3 August 2010,Key gained the style "The Right Honourable". Previously,as he was not a privy councillor,he had not been entitled to use the style—his predecessor ended the appointment of New Zealanders to the Privy Council. However,in 2010 the Queen approved the use of the style by prime ministers,governors-general,speakers of the House,and chief justices.[164]
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1 2 3 4 5 6 Rapson, Bevan (26 April 2005). "Golden boy". Metro Magazine. No.286. Archived from the original on 26 July 2008. Retrieved 28 February 2008.
↑ "Christchurch's Aorangi School to close". Television New Zealand. 24 November 2009. Archived from the original on 25 November 2009. Retrieved 8 March 2010. Education Minister Anne Tolley has announced that Prime Minister John Key's former primary school, Aorangi School in Christchurch, will close in January.
↑ O’Connor, Paul (2009). Choosing the Right Path: Burnside High School 1960–2010. Christchurch: Silver Fox Publishing. pp.198–199. ISBN978-0-473-15685-5.
↑ "Big Dealers". Close Up. NZ On Screen. 10 September 1987. Archived from the original on 25 November 2011. Retrieved 18 November 2011.
1 2 Tett, Gillian; Laugesen, Ruth (3 February 2008). "Who is John Key?". Sunday Star Times. Archived from the original on 24 April 2008. Retrieved 28 February 2008.
↑ Compare: "78pc of parents say they'll still smack". The New Zealand Herald. 18 June 2007. Archived from the original on 29 September 2007. Retrieved 23 August 2007. 82 per cent thought [the new law] should be changed to state that parents who smacked their children to correct them were not breaking the law.
1 2 Berry, Ruth (25 November 2006). "Will the real John Key step forward". The New Zealand Herald. Archived from the original on 28 December 2012. Retrieved 23 August 2007. if you're asking me if I'm religious it depends how you define religion. I look at religion as doing the right thing....I go to church a lot with the kids, but I wouldn't describe it as something that I ... I'm not a heavy believer; my mother was Jewish which technically makes me Jewish. Yeah, I probably see it in a slightly more relaxed way.
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