The 1996 Election
This was New Zealand's first election under the Mixed Member Proportional (MMP) electoral system. In the lead-up to the election, many National and Labour MPs noted their parties' unpopularity and felt that they would do better by forming or joining another party. Between the 1993 and 1996 elections, nine of National's 50 MPs defected to or formed other parties. However only one of these (Peter McCardle, who had joined New Zealand First) was re-elected in 1996. National was able to complete its second term in government due to confidence and supply agreements with minor parties.
Both major parties continued to be distrusted by many voters. Both experienced a drop in the percentage of the popular vote, although this was probably due primarily to the new electoral system. Although National won more seats in parliament than all the minor parties combined, it lacked the numbers to form a majority government. In order to retain power it needed to form a coalition with another party.
Read more about this topic: Fourth National Government Of New Zealand
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