"We are glad to see that development of a clear party policy on a New Zealand head of State is now firmly on Labour's agenda" said Lewis Holden, chair of the Republican Movement.
The Labour Party voted on a remit to adopt a policy on a New Zealand head of State. The remit was narrowly defeated 52% to 48%.
"While the remit didn't pass this year the discussion within the party shows party members understand the benefits of having an elected head of State" continued Mr Holden.
The move will also be heartening to supporters within National who also want a New Zealander in the role of head of State, and who are working to have their party develop a better policy ahead of their Labour rivals.
"It is important we move to an elected head of State in a considered and open way with participation from all New Zealanders. New Zealand has many great political traditions and working for the greater good is something we value and strive for. We would like to see all parties develop a clear long term time frame for shifting to a democratic, New Zealand head of state."
"We have our own clear proposals on how that can happen and will carry spreading the message that New Zealanders should decide the matter for themselves. We know that many people like the Royals and that won't change when we become a republic. A New Zealand head of state will simply carry on the heritage exemplified by Queen Elizabeth and recent New Zealand Governor-Generals. The royals will still be there but they will not be part of our parliament and New Zealand will become constitutionally independent for the first time