The Government's handbrake: What else has New Zealand First kiboshed, blocked or modified?

Deputy Prime Minister Winston Peters walks to the house during Budget 2020 with Prime Minister Jacinda Ardern. Photo / Mark Mitchell

News that New Zealand First put the brakes on the Government's plans to start work on Auckland's Light Rail is just the latest in a string of planned policies kiboshed by Winston Peters' party.

From a Capital Gains tax to rent relief for landlords, failure to get New Zealand First onside at Cabinet has resulted in some significant policies being blocked, modified or killed altogether.

Although she admits it is frustrating at times, Prime Minister Jacinda said this is just a reality of modern-day New Zealand governments.

"This is an MMP Government," she said on her way into the House this afternoon, when asked about light rail.

It's a line Ardern's used in the past when she's been forced to defend her Government's failure to reach an agreement.

But Peters has argued that he's just doing his job.

"We're here [NZ First in Cabinet] to make sure we have policies that are sound and do work," he said today.

Labour does not have enough seats in the House to govern alone and needs NZ First's support to pass legislation in the House.

Peters knows this and frequently flexes his political muscles.

For example, just this morning the Herald reported that New Zealand First pulled its support for a Covid-19 rent relief bill.

That legislation would have required landlords to negotiate rent relief with tenants hit by the impacts of Covid-19.

It is understood that bill is dead after multiple sources confirmed NZ First has indicated it would not support the legislation in its current form.

Yesterday, it was revealed NZ First blocked the Sexual Violence Legislation Bill, which was supported by all parties at the first reading.

The bill would have overhauled how rape trials are run.

And just last week, Transport Minister Phil Twyford confirmed that the Greens-led vehicle feebate scheme, which would have slashed the price of the importing of green cars and slapped a tax on higher emitting vehicles, had stalled at Cabinet after NZ First objections.

But perhaps the most famous policy NZ First has killed is the Capital Gains Tax (CGT).

The Government appointed a Tax Working Group to explore the idea and report back on its recommendations, which it did early last year.

Unsurprisingly, the group's chair – former Finance Minister Michael Cullen – recommended the Government adopt a CGT.

NZ First leader Winston Peters. Photo / Pool

But soon after, Ardern begrudgingly announced this would not be happening and put the blame on her coalition partners.

"All parties in the Government entered into this debate with different perspectives and, after significant discussion, we have ultimately been unable to find a consensus."

Not long after Ardern's concession, Senior NZ First MP – and Minister – Shane Jones bragged about "New Zealand First killing off the Capital Gains Tax."

Although the party has done its fair share of blocking legislation, it has also helped to refine – or water down, depending on who is asked – legislation as well.

Due to lobbying from the party, rules around 90-day trials for businesses with 19 or fewer employees were left alone – for all other businesses the rules were scrapped.

And, in mid-2018, the Government was embarrassed when Justice Minister Andrew Little announced plans to repeal the three-strikes law, only to have to backtrack after NZ First's objections in Cabinet.

At the time, Ardern said: "Within a coalition government, there are always going to be issues that [members] might take different positions on".

NZ First was also behind delays to the gun register legislation which allowed for greater exemptions for farmers.

It's also because of that party that Kiwis will be voting on the assisted dying referendum.

And although it's not clear, it is rumoured that hold-up around the solution to the Ihumātao is because of opposition from New Zealand First, which has publically said no Government money should be used in finding a solution.