In 1996, after serving six years in parliament, Smith was elevated to Cabinet, becoming Minister of Conservation. With this appointment, he replaced the outgoing Minister, Denis Marshall, who had resigned as an eventual consequence of the Cave Creek disaster. In 1997 he gained the additional responsibility of Minister of Corrections. In early 1999, he dropped the Corrections portfolio and became Minister of Education. When National was defeated in the 1999 general election, Smith continued to serve as his party's education spokesperson.