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New Zealand PM reshuffles Cabinet to allow for U.S. diplomatic posting

Xinhua, December 7, 2015 Adjust font size:

New Zealand Prime Minister John Key reshuffled his Cabinet Monday, announcing Trade Minister Tim Groser, who negotiated the controversial Trans-Pacific Partnership (TPP) trade deal, is to become Ambassador to Washington.

Groser would resign from Cabinet on Dec. 14, after completing his responsibilities as Climate Change Issues Minister at the ongoing global climate conference in Paris, and would take up his diplomatic posting early next year, Key said in a statement.

The new Trade Minister would be Todd McClay, who would also retain his current responsibility for state-owned enterprises, while handing over the revenue portfolio to current Police Minister Michael Woodhouse.

Paula Bennett, fifth in the Cabinet hierarchy, would take over the climate change issues portfolio.

Judith Collins would rejoin Cabinet taking up the police and corrections portfolios.

Collins was forced to resign as Justice Minister in August last year amid claims that she was colluding with right-wing "attack bloggers" and a public relations consultant to undermine the head of the Serious Fraud Office during her time as Police Minister.

However, an official inquiry later cleared her of involvement in the allegations.

Current Corrections Minister Sam Lotu-Iiga would take up the local government portfolio from Bennett.

Key praised Groser for his "significant contribution to New Zealand's interests."

"As the world's largest economy and New Zealand's fourth-largest trading partner, the United States is a key destination for our exporters. New Zealand and the United States also cooperate on a range of international peace and security issues," said Key.

"Tim's extensive international experience as Trade Minister makes him well-placed for this role, particularly as the Trans-Pacific Partnership progresses towards implementation."

Before entering Parliament in 2005, Groser had been New Zealand's Ambassador to the World Trade Organisation (WTO) and Ambassador to Indonesia.

Groser mounted a failed bid to become WTO director-general in 2013.

Opposition lawmakers were quick to highlight the controversies surrounding some of the portfolios being reassigned, particularly on the 12-nation TPP deal, which was widely criticized for failing to deliver any significant gains for New Zealand's pillar dairy industry.

New Zealand First party leader Winston Peters said in a statement that Groser had a "dismal record" on negotiating the TPP "where he promised so much and delivered so little."

Meanwhile the Labour and Green parties called on Collins to reverse the privatization of the country's prisons-begun when she was Corrections Minister in 2010-after a series of high profile scandals surrounding private prison operator Serco. Endit