Smith served as
Minister of Education from 1990 until 1996 in the
Fourth National Government of New Zealand. During this period he implemented a number of changes to the tertiary education sector (universities and technical institutions). One high-profile change involved a radical increase in student fees, as recommended by the
Todd Report, which the government had commissioned to address issues of funding. As opposition education spokesman in 1990, Smith promised to remove the
Labour Government's tertiary
tuition fee of
$1250, if elected. Once in office, he kept this promise on a technicality: he shifted the burden of charging fees for courses from the government to the institutions, who then had to charge even higher tuition fees due to decreased
government funding. Smith's term as Education Minister also saw the introduction of
means-testing for student allowances, with the effect that students of middle-class parents became ineligible for allowances until they reached 25 years of age. In 1996 Smith took up the
Agriculture and Trade Negotiation portfolios:
Wyatt Creech succeeded him as Education Minister. Smith also became Minister for International Trade and for Tourism, as well as holding responsibilities as
Associate Minister of Finance, Associate Minister of Immigration (International Access and Processing), and Minister Responsible for
Contact Energy Ltd. As Trade Minister, Smith spearheaded New Zealand's efforts at the 1999
APEC negotiations. He successfully negotiated New Zealand's free-trade agreement with
Singapore, which became the
NZ – Singapore Closer Economic Partnership. At the
WTO Ministerial in
Seattle, he took part in efforts which later lead to the
Doha Development Round. ==Opposition, 1999–2008==