6.2 The term of Parliament in New Zealand is three years from the date fixed for the return of the writs issued for the previous general election (see section 17 of the Constitution Act 1986). Parliament may, however, be dissolved before the three-year term finishes, under section 18 of the Constitution Act 1986. When the term of Parliament has ended, or Parliament has been dissolved, a general election is held to determine the composition of the next Parliament from which the next government will be formed.
6.3 The Governor-General has the formal power to dissolve, prorogue (that is, discontinue without dissolving), and summon Parliament, under section 18 of the Constitution Act 1986. By convention, the Governor-General exercises this power on the advice of the Prime Minister, the Governor-General's principal adviser. (See paragraphs 2.4 and 2.6.)
6.4 Elections are held in accordance with the Electoral Act 1993. New Zealand's proportional representation electoral system lessens the likelihood that one party will win enough seats to be sworn in as a single-party majority government. The election may result in a minority single-party government, or a majority coalition government, or a minority coalition government.
6.5 Before and after a general election it may be difficult for Cabinet and Ministers to take decisions, for several reasons.
6.6 Departments and agencies that plan and prepare for a protracted electoral period of weeks or even months are likely to experience few real problems. The importance of such planning cannot be overstated.
6.7 An additional practical consideration is the need to make significant decisions in time for them to be taken into account in the pre-election economic and fiscal update, which the Treasury is required to prepare under the fiscal responsibility provisions of the Public Finance Act 1989. This update is published 20-30 working days before election day. If short notice of an election is given, the update must be published not later than 10 working days after the day of the dissolution of Parliament. It must include information on all government decisions and circumstances that may have a material effect on the fiscal and economic outlook.
6.8 It is therefore important for Ministers, departments, and other state sector agencies to ensure that all significant matters that will require ministerial attention in the course of the election year are dealt with well in advance of a general election. In particular, agencies should consider the effect of a general election on:
6.9 In the period immediately before a general election, the government is not bound by the caretaker convention unless the election has resulted from the government losing the confidence of the House. (See paragraphs 6.16 - 6.35 for information about the caretaker convention.) Successive governments, however, have chosen to restrict their actions to some extent at this time, in recognition of the fact that an election, and therefore potentially a change of government, is imminent. For example, significant appointments have been deferred, and some otherwise unexceptionable government advertising has been considered inappropriate during the election campaign, due to the heightened risk of perception that public funds are being used to finance publicity for party political purposes. (See the Guidelines for Government Advertising in appendix B for general guidance.) In practice, restraints have tended to be applied from about three months before the general election is due or from the announcement of the election (if the period between the announcement of the election and polling day is less than three months).