Abstract
Under proportional representation, New Zealand has frequently been governed by minority governments backed by a support party on matters of confidence and supply. This article seeks to analyze the 'policy influence differential’ — the influence a party in government may exert, as opposed to the influence exerted by a support party in the context of New Zealand coalition politics. While individual personalities clearly influence the performance of minority coalition governments, parliamentary institutions and informal political norms shape New Zealand’s policy influence differential. This article examines this topic in the context of the 1999-2002 Labour-Alliance government and analyses enactment of one particularly important piece of legislation. The policy influence differential remains substantial in New Zealand due to the persistence of first-past-the-post institutions and political culture. As a result, small parties pay a significant cost in policy influence when remaining outside government.