Under Clark's leadership, Labour became the largest party in parliament from
1999 to
2008. Clark became the second woman to serve as Prime Minister of New Zealand, and the first to have won office at an election. As a
female head of government, Clark was a member of the
Council of Women World Leaders. Clark entered office just three years after the adoption of the
Mixed Member Proportional (MMP)
voting system, which had produced an unstable National-led government under Bolger and Shipley. Clark negotiated the formation of successive
coalition governments. Political scientist
Bryce Edwards identified Clark's ability to lead stable governments as her most significant achievement, arguing that her ability to work with a variety of coalition partners—including the
Alliance,
Jim Anderton's Progressive Party,
Green,
United Future and
New Zealand First—consolidated public support for MMP. Clark's particular interests included
social policy and international affairs. A strong supporter of
nuclear disarmament, Clark pursued a policy of peace-making within the Pacific region. She set herself the task of making New Zealand the first
ecologically sustainable nation, describing this as "central to New Zealand's unique national identity". Her government's major
policy achievements include the
Working for Families package, increasing the
minimum wage 5% a year, interest-free student loans, creation of
District Health Boards, the introduction of a number of
tax credits, overhauling the secondary school qualifications by introducing
NCEA, and the introduction of fourteen weeks’ parental leave. Commentators praised Clark (along with
Michael Cullen, the
Minister of Finance) for overseeing a period of sustained and stable
economic growth, with an increase in employment that saw a gradual lowering of the
unemployment rate to a record low of 3.6% (in 2005). Clark made every attempt to make sure that gender was not an issue in politics. However, Bryce Edwards states that others did. Clark was portrayed as bloodsucking, cold, and humourless. Clark says herself that when her male counterparts spoke in the media, they looked strong and determined, whereas when she portrayed the same characteristics, the media made it to look like she was "tough" and "nagging." In 2006 Clark was 20th in
Forbes magazine's
ranking of the world's 100 most powerful women. By the time she left office in 2008 this had fallen to 56th.
First term: 1999–2002 The 1999 general election produced a historic moment for New Zealand; for the first time, two women, Clark and Shipley, campaigned against each other as leaders of the country's two major parties. Clark repeatedly stated her desire to "govern alone" rather than as part of a coalition. However, in the lead up to the election, Labour made overtures to the left-wing
Alliance. Clark addressed the Alliance's annual conference in August 1998. The first Clark-led Cabinet linked Labour with the Alliance and supported by the
Green Party. The full ministerial team, and portfolios, was announced on 9 December—12 days after the election—and the new government was sworn in the following day. Such procedures lessened the chances of Cabinet becoming publicly divided and running the risk of losing the confidence of the
House of Representatives. In January 2000, the then
Police Commissioner,
Peter Doone, resigned after
The Sunday Star-Times alleged he had prevented the
breath testing of his partner Robyn, who had driven the car they occupied, by telling the officer "that won't be necessary". Both Doone and the officer involved denied this happened. Doone sued the
Sunday Star-Times for
defamation in 2005, but the paper revealed they had checked the story with Clark. She confirmed this, but denied that she had made attempts to get Doone to resign and defended being the source as "by definition I cannot leak". Clark also responded by saying that National supporters had funded Doone's defamation-suit. Opinion on the significance of this incident varied. In 2000, Labour MP
Chris Carter investigated the background of one of Clark's Cabinet colleagues,
Māori Affairs Minister Dover Samuels, regarding allegations of historic
statutory rape. Ex-convict
John Yelash claimed that Carter had approached him to help with the investigation; a claim that Carter denied. Clark backed her MP, referring to Yelash as a "murderer" when he had in fact been convicted of
manslaughter, a less serious offence. Yelash sued Clark for defamation, resulting in an out-of-court settlement. In April 2001, Clark met with Chinese president
Jiang Zemin during an official visit to Beijing. Jiang referred to the Prime Minister as an "old friend". He stated that China hoped to "establish bilateral long-term and stable overall cooperative relations [with New Zealand]". Clark strongly supported China's entry into the
World Trade Organization. On 26 March, Clark visited
the Pentagon and
Washington, D.C., where she met with American officials, including a private meeting with President
George W. Bush. Most of the agenda for Clark's visit focused on the joint counter-terrorism campaign (dubbed the "
war on terror"). After the act came to light in April 2002, the opposition National Party referred the matter to the
Police. A police report found evidence for a
prima facie case of forgery, but determined that it was not in the public interest to prosecute Clark. In June 2002, Clark apologised on behalf of New Zealand for aspects of the country's treatment of
Samoa during the
colonial era. Clark's apology was made in
Apia during the 40th anniversary of Samoa's independence and televised live to New Zealand where Samoans applauded the Prime Minister's gesture. The Alliance split in 2002 over the Government's commitment of New Zealand troops to the
War in Afghanistan, leading to the imminent dissolution of Labour's coalition with that party. Consequently, Clark called for an early election to be held on 27 July. Political opponents claimed that Clark could have continued to govern, and that a
snap election was called to take advantage of Labour's strong position in opinion polls. In opinion surveys conducted during the election campaign, Clark scored high approval ratings and was far ahead of other party leaders as "preferred Prime Minister". A major issue during the 2002 election campaign was the end of a moratorium on
genetic engineering, strongly opposed by the rival
Green Party. The debate was reignited when investigative journalist
Nicky Hager published a book,
Seeds of Distrust, in which he alleged that Clark's government had covered up a contamination of
genetically modified corn plants in 2000. A television interview with
John Campbell was terminated by Clark when she was taken by surprise by the allegations, which she claimed to have known nothing about prior to the interview. The affair was dubbed "
Corngate" by the media.
Second term: 2002–2005 Clark won a second term in the
2002 general election—her party increased both its share of the vote and number of seats. Labour subsequently entered into a coalition with Jim Anderton's
Progressive Party (a spin-off of the Alliance), with parliamentary
confidence and supply coming from
United Future, and a good-faith agreement with the
Green Party.
Michael Cullen, who served as minister of finance, was appointed deputy prime minister by Clark, replacing Anderton. A
republican, Clark stated in 2002 that she thought it was "inevitable" that New Zealand would become a republic in the near future. under her government's policy of building
national identity. Examples include the abolition of appeals to the
Privy Council in London and the foundation of the
Supreme Court of New Zealand; the abolition of titular knighthood and damehood honours (restored in 2009); and the abolition of the title "
Queen's Counsel" (replaced by "
Senior Counsel", restored in 2012). , 20 October 2004 In 2003, Clark criticised the
Invasion of Iraq without an explicit United Nations mandate, and her government opposed New Zealand military action in the
Iraq War. Her government did not send combat troops to Iraq, although some medical and engineering units were sent. Clark's foreign policy reflected the priorities of
liberal internationalism, especially the promotion of democracy and human rights; the strengthening of the role of the United Nations; the advancement of antimilitarism and disarmament; and the encouragement of free-trade. In March 2003, referring to the US-led coalition's actions in Iraq, Clark told the newspaper
The Sunday Star-Times that, "I don't think that 11 September under a
Gore presidency would have had this consequence for Iraq." She later sent a letter to Washington apologising for any offence that her comment may have caused. On 17 July 2004, a motorcade involving police,
Diplomatic Protection Squad, and Ministerial Services staff reached speeds of up to 172 km/h when taking Clark and Cabinet Minister
Jim Sutton from
Waimate to
Christchurch Airport so she could attend a
rugby union match in
Wellington. The courts subsequently convicted the drivers involved for driving offences, but appeals resulted in the quashing of these convictions in December 2005 and August 2006. Clark said that she was busy working in the back seat and had no influence or role in the decision to speed and did not realise the speed of her vehicle. In November 2004, Clark announced that negotiations with China had commenced for a
free-trade agreement, eventually signing
a comprehensive agreement in July 2008. It was New Zealand's largest trade deal since the 1983
Closer Economic Relations agreement with Australia.
Third term: 2005–2008 , 22 March 2007. In 2005, following that
year's general election, Labour and the Progressive Party renewed their coalition, with confidence and supply arrangements with both
New Zealand First and United Future in exchange for giving the leaders of those parties ministerial positions outside Cabinet. Greens were excluded from the resulting coalition, due to a refusal by United Future and NZ First to work with the Greens in cabinet. They were, however, able to negotiate a cooperation agreement which saw limited input into the budget and broad consultation on policy. Both co-leaders were appointed as government spokespeople outside cabinet, responsible for Energy Efficiency and for the Buy Kiwi Made campaign. Clark became the first Labour leader to win three consecutive elections. On
Armistice Day, 11 November 2006, Clark attended a service in
Hyde Park, London, where a monument commemorating New Zealand's war dead was unveiled. During her visit she met
Queen Elizabeth,
Prince Charles and British prime minister
Tony Blair. On 26 May 2006, Clark ordered a military deployment to the
2006 East Timorese crisis alongside international partners. Summit in Sydney, 9 September 2007 Clark's major overseas visit of her third term was a trip to the United States in March 2007, where she met with
George W. Bush in Washington. Despite her strained relationship with the President, they agreed on many issues, including working cooperatively in foreign affairs, commerce and the need for both nations to work toward
energy security. On 8 February 2008, Clark was recognised as the longest-serving leader of the Labour Party in its history (although some uncertainty exists over the exact date when
Harry Holland became party leader), having served for 14 years, 69 days. By 26 October 2008 she had passed Holland's longest possible term and her position as longest-serving Labour leader was put beyond doubt. By the end of her tenure in office, Clark had come to be seen as a divisive figure, going from a Herald-DigiPoll popularity rating of nearly 60% in 2005 to 42% at the time of the 2008 general election. Portrayals of Clark as controlling and manipulative after the 2005 election increased when she abandoned her consensus-managerial approach, such as during the
New Zealand foreshore and seabed controversy, and her support of the
Crimes (Substituted Section 59) Amendment Act 2007 (the so-called anti-smacking law). She was accused of having a "
nanny state" approach to social issues, a perception captured by the pejorative term '
Helengrad'. Labour had been consistently behind the National Party in
opinion polls since 2006, and the gap widened significantly in early 2007. On 5 August 2008 the
Treasury announced that the New Zealand economy had entered a
recession. Clark's personal popularity was eclipsed by
John Key soon after the latter's election as
National Party Leader in November 2006. In the final media polls prior to the Key was ahead of Clark in preferred prime minister polls by eight points in the Fairfax Media Nielsen poll and four points in the One News Colmar Brunton poll. In the 2008 election campaign, Clark attacked the National Party as "insincere" in its promise to maintain many of her government's flagship projects, such as KiwiSaver and
Kiwibank. National overtook Labour as the largest party following the 2008 election. Labour did not have the numbers to ally with smaller parties and no viable path to government; Clark conceded defeat to Key and announced that she was standing down as party leader. On 11 November 2008 Clark was succeeded by
Phil Goff as Leader of the Labour Party. In the first Labour Party conference after its defeat Phil Goff acknowledged that Clark's government had become identified with "
nanny-state" policies in the public mind, and said that the party wanted to "draw a line under the past and say, yes, we made mistakes, we didn't listen." ==Reputation and legacy==