Two factors have been critical. The first was the adoption of a negotiating stance on areas such as welfare reform, privatising ACC and educational failure where National is amenable to more radical policies if nudged hard enough. Secondly, Act has secured gains by concentrating on cost-neutral projects, such as the Treasury monitoring productivity growth and the income gap with Australia.
The agreement to trial privately run but largely state-funded "charter" schools in areas of underachievement such as South Auckland is arguably Act's biggest advance in terms of translating policy into action.
Banks has also brought a degree of realism to the party. Witness Act's push for a fixed cap on core Government spending. Rodney Hide wanted that cap to be screwed down tight. National refused. Act's enacting legislation consequently stalled. Banks negotiated a compromise which will see National make the necessary amendment to the Public Finance Act. It may not be what Act envisaged. But it gets the principle into law.
For too long Act's message has been muddled by the mix of warring personalities. Yesterday was all about getting Act back to its basics - choice, individual responsibility and the free market. He may parrot the basics ad nauseam but he has to convince people he believes them.
Resurrecting Act will not be achieved overnight. But Act's agreement with National is the best possible start.
