Bayly: Should we move to a four-year parliamentary term?

• By MP for Port Waikato Andrew Bayly

This year, I have taken on the role of chairing the Justice Select Committee in Parliament. We have recently submitted our report to the House regarding the Term of Parliament (Enabling 4-year Term) Legislation Amendment Bill, which – if enacted – would create an option to extend the parliamentary term to four years at the start of each term.

If the bill passes, the changes would be put to the public via a referendum. Under this bill, the referendum would have to take place at either the 2026 or 2029 general election.

Our Parliament is based on the Westminster system of democracy, and while regular elections are a cornerstone of the system, the optimal length of parliamentary terms remains a subject of debate. While historically three-year terms have been the norm, terms of four or even five years are now much more common overseas.

So, what are the benefits put forward by proponents of a longer parliamentary term, especially for businesses?

One of the most compelling is the greater stability they offer. Governments operating under three-year terms often find they have limited time to develop, implement and evaluate long-term policies. In contrast, four- or five-year terms allow governments to pursue more complex reforms, particularly in areas like infrastructure, education, climate policy, and health care – sectors that require sustained effort and long-term vision.

Longer terms reduce political uncertainty (which can lead to market volatility and investment hesitation), as elections can often lead to delays in decision-making and administrative disruption.

Will we see a referendum taking place at the general election next year? That will be a decision for the Government, but there are compelling reasons for it to be deferred to 2029, including the effect on local government, where election dates are currently fixed in legislation as every three years, and whether the Electoral Commission would have the capacity to administer a referendum in 2026 alongside other Electoral Act changes that are underway.

The hardest part of enacting a four-year term will be persuading the general public that it is a good idea, and the committee recognised that the Government will need to implement a public information programme regarding a four-year term referendum.

For electorate issues, contact me at andrew@baylymp.co.nz