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2019 New Zealand budget

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Budget 2019 , dubbed the Wellbeing Budget , was the name given to the New Zealand budget for fiscal year 2019/20 presented to the New Zealand House of Representatives by Finance Minister Grant Robertson on 30 May 2019. This was the second budget presented by the Coalition Government . Its release was complicated by the accidental publication of budgetary documents on a test website two days prior to its official release on 30 May, attracting significant media and public attention.

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117-465: In late May 2019, the Labour -led Coalition Government announced that the 2019 New Zealand budget would be the country's first "Wellbeing Budget", reflecting its focus on addressing mental-health issues, child well-being, supporting Māori and Pasifika aspirations, encouraging productivity, and transitioning to a sustainable economy. The "Wellbeing Budget" sought to address these issues by: The release of

234-590: A Requiem Mass celebrated at the Basilica of the Sacred Heart, Hill St, Wellington before his body was taken amidst general and public mourning by train to Auckland, with frequent halts to allow local people and dignitaries to pay their last respects; the journey was carried live on the radio. The lugubrious funeral music and speeches was lightened on arrival in Auckland when the announcer intoned reverently "Sir Ernest Davis

351-572: A political colour traditionally affiliated with socialism and the labour movement. At the turn of the 20th century, the radical side of New Zealand working class politics was represented by the Socialist Party , founded in 1901. The more moderate leftists generally supported the Liberal Party . In 1905 a group of working-class politicians who were dissatisfied with the Liberal approach established

468-473: A bitter debate amongst MPs the proposal was successful 26 votes to 23. However, Savage over-ruled the vote and proceeded to inform the press that cabinet would remain unchanged. In December 1938 the infamous "Lee Letter" appeared. It contained many attacks on the financial orthodoxy and over-cautiousness of the Labour leadership. It received wide publicity and led many in the public to question Labour's unanimity. Lee

585-461: A brewery. The brewery was owned by a Jewish family who hired irrespective of workers faith helping Savage overcome the anti-Irish Catholic sentiments that were prevalent in much of Auckland at the time. Soon after beginning work he joined the Auckland Brewers', Wine and Spirit Merchants' and Aerated Water Employees' Union and quickly became president of the 154 member union. He was the delegate of

702-577: A close friend of PLC member Paddy Webb , with whom he was closely linked in later years. After a farewell function in Rutherglen , Savage emigrated to New Zealand in 1907. He arrived in Wellington on 9 October, which happened to be Labour Day. There he worked in a variety of jobs, as a miner, flax -cutter and storeman, before becoming involved in the union movement. Despite initially intending to join Webb on

819-567: A common destiny. Suffering from cancer of the colon at the time of the 1938 election, Savage had delayed seeking treatment to participate in the election campaign. In late 1939, John A. Lee was censured for his comment that Savage was "mentally as well as physically ill". Savage died from cancer on 27 March 1940, although the terminal nature of his illness was still being denied at the beginning of March. Savage brought an almost religious fervour to his politics. This, and his death while in office, has made him become something of an iconic figure to

936-536: A key feature of Labour's 2017 election campaign. Notable policies, programmes and legislations during the 2020–2023 term included the Clean Car rebate programme , making the Māori New Year Matariki a public holiday, banning conversion therapy , replacing the district health boards with a national health service called Te Whatu Ora (Health New Zealand), passing smokefree legislation banning

1053-569: A left-wing critic of his leadership, John A. Lee , was expelled . Commonly known as the architect of the New Zealand welfare state , Savage is generally regarded by academics and the general public as one of New Zealand's greatest and most revered prime ministers. To date he is the only New Zealand prime minister or premier to serve under three monarchs ( George V , Edward VIII and George VI ). Born as Michael Savage in Tatong , Victoria, Australia, he

1170-400: A number of new policies. His foreign-policy stances included strong criticism of nuclear-weapons testing and of South Africa 's apartheid system. However, Kirk suffered from poor health, worsened by his refusal to slow the pace of his work. In 1974 Kirk was taken ill and died . Bill Rowling replaced him, but did not have the same electoral appeal – in the 1975 election , Labour lost to

1287-506: A result of the act to advise the minister. The Labour Party had specifically sought to broadcast parliamentary debates via radio as a means of allowing the public to listen and make their own judgment of events, rather than relying solely on reporting the press, whom Labour were distrustful of. Savage appointed himself as the inaugural minister. In 1936 the government instituted major reform to industrial relations legislation. The Industrial Conciliation and Arbitration Act which established

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1404-460: A state school at Rothesay, the same town as his father's farm. From 1886, aged 14, to 1893 Savage worked at a wine and spirits shop in Benalla. Savage also attended evening classes at Benalla College at this time. Although short in stature, Savage had enormous physical strength and made a name as both a boxer and weightlifter while enjoying dancing and many other sports. In 1891 Savage was devastated by

1521-468: A statutory minimum wage, standardised the 40-hour week and made union membership compulsory. It also restored the power of the Arbitration Court and required the court to factor in the needs of wives and dependent children of workers when making general wage orders. While unemployment was consistently reducing the cabinet continued to spend for unemployment relief. To find a more permanent solution to

1638-583: A training camp in 1918, aged 46. Savage openly supported the formation of a unified New Zealand Labour Party in July 1916, and became its national vice-president in 1918 and later the first permanent national secretary the next year. In 1919 Savage was elected as a Labour candidate to both the Auckland City Council and the Auckland Hospital and Charitable Aid Board in local body elections. He served on

1755-453: A vote of no confidence in his leadership. Geoffrey Palmer became the new Labour prime minister. However, Palmer failed to rebuild the shattered remnants of Lange's government and in September 1990, Mike Moore replaced him. Despite Moore's ascension somewhat salvaging poll-ratings, Labour suffered its worst defeat since it first took office in 1935 (losing twenty-eight seats) – voters flung

1872-515: Is considered by academics and historians to be one of New Zealand's greatest and most revered prime ministers. Often called "Everybody's Uncle", his genial and charismatic personality, and his skills as an orator, were largely responsible for public acceptance of his government's radical policies. Exemplifying his enthusiasm for his government's policies, Savage personally assisted a family in Fife Lane, Miramar, Wellington , to move their furniture into

1989-493: Is credited for the creation of the Family Allowances Act 1926, which the governing Reform Party openly commented that it had modelled the legislation on three earlier defeated bills introduced by Savage. In 1927 Savage and several others persuaded the party to amend its land policy and recognise the right of freehold which was essential in gaining rural support for Labour. In doing so, Savage furthered perceptions that he

2106-526: Is left-of-centre). When the 1996 election , the first conducted under the MMP electoral system, gave the balance of power to the centrist New Zealand First party, many believed that Labour would return to power, but in the end New Zealand First formed a coalition arrangement with the National Party. Despite initially appearing coherent, the coalition became increasingly unstable and eventually collapsed, leaving

2223-578: Is passing round the bier "; Davis, the Auckland mayor , was a wealthy brewer. He was interred initially in a temporarily adapted harbour defence gun installation. He was soon after removed to a side chapel of St Patrick's Cathedral in Auckland, while a national competition was announced, decided, and the winning design of the monumental tomb and memorial gardens at Bastion Point constructed, forming his permanent resting site. Savage lies buried at Bastion Point on Auckland 's Waitematā Harbour waterfront in

2340-523: The Maoriland Worker . In the 1911 and 1914 general election campaigns, Savage unsuccessfully stood as the Socialist candidate for Auckland Central , coming second each time to Albert Glover of the Liberal Party . During this time Savage was also involved in local union groups, becoming president of the Auckland Brewers', Wine and Spirit Merchants' and Aerated-water Employees' Union, president of

2457-505: The 1928 election , however, the party was left in an advantageous position – the Reform Party had 28 seats and the new United Party (a revival of the Liberals) had 27 seats, and neither could govern without Labour support. Labour chose to back United, the party closest to its own views – this put an end to five terms (1912–1928) of Reform Party government. In the early 1930s the rigours of

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2574-549: The 2005 general election , winning 36.9% of the party vote and 46 seats. On 19 October 2017, Labour formed a minority coalition government with New Zealand First , with confidence and supply from the Green Party . In the 2020 general election, Labour won in a landslide , winning an overall majority of 10 and 50.01% of the vote. In the 2023 election , Labour lost its majority to the National Party and subsequently returned to Opposition . Since 2023 , Chris Hipkins serves as

2691-476: The 2017–2020 term included scrapping the previous National Government's national standards in schools and charter schools , the KiwiBuild affordable housing programme, restricting oil and gas exploration, banning semi-automatic firearms , restoring voting rights for prisoners serving less than three years and decriminalising abortion . The Labour Government also adopted an elimination approach towards

2808-776: The 2023 Auckland Anniversary Weekend floods and Cyclone Gabrielle , which devastated Auckland and the east coast of the North Island . Prior to the dissolution of Parliament , the Labour Government passed two laws as part of efforts to replace the Resource Management Act 1991 . The 2020–2023 term saw the expulsion of Labour MP Gaurva Sharma , the resignations of ministers Stuart Nash and Kiri Allan , and ministers Michael Wood and Jan Tinetti being disciplined by Parliament's privileges committee. The 2023 NZ general election, held on 14 October 2023, saw

2925-458: The Bill of Rights Act , which enumerated civil and political rights. Throughout its first term (1984–1987), the Labour government remained largely unified behind the enacted radical financial, economic and social policy reforms, but early signs of dissension began to appear before the 1987 election. In 1987 Labour won another considerable election victory against the National Party, while ruptures over

3042-666: The COVID-19 pandemic in New Zealand , instituting lockdowns and closing the border. Both Labour and Prime Minister Ardern attracted high domestic poll ratings due to their initial COVID-19 responses in 2020. In mid-July 2020, the Serious Fraud Office announced that it was investigating donations made to the Labour Party by two Chinese businessmen during the 2017 general election. Labour Party President Claire Szabó announced that

3159-589: The Great Depression brought Labour considerable popularity, but also caused tension between Labour and the United Party. In 1931 United passed a number of economic measures which Labour deemed hostile to workers, and the agreement between the two parties collapsed. United then formed a coalition government with Reform, making Labour the Opposition. The coalition retained power in the 1931 election , but gradually,

3276-661: The Independent Political Labour League (IPLL), which managed to win a seat in Parliament in the 1908 election . At the same time, moderates contested as " Lib-Lab " candidates, aligning with the Liberal Party while enjoying the endorsement of the labour movement. This established the basic dividing line in New Zealand's left-wing politics – the Socialists/IPLL tended to be revolutionary and militant, while

3393-835: The Israel-Hamas War . The Government also implemented several co-governance arrangements in the public sector including entrenching Māori wards and constituencies in local government , the Three Waters reform programme , and creating Te Aka Whai Ora (the Māori Health Authority). Following a major COVID-19 outbreak in August 2021, the Labour Government abandoned its elimination strategy and gradually eased lockdown, border restrictions, vaccine mandates and masking requirements between 2021 and 2022. During that period, growing opposition to lockdowns and vaccine mandates led to

3510-527: The Liberal Party . Although Labour had split with its more militant faction (which went on to form various socialist parties), it maintained what were at the time radical socialist policies. Labour's 'Usehold' policy on land was, in essence, the replacement of freehold tenure by a system of perpetual lease from the state, with all land-transfer conducted through the state (the full nationalisation of farmland). This policy proved unpopular with voters, and Labour dropped it, along with other more radical policies, in

3627-459: The Weekly News featured Spencer Digby's full page iconic photograph of Savage which was often to be seen framed in many New Zealand homes through the following years. Soon after its election the government gave a "Christmas bonus" of £270,000 to the unemployed and needy. Savage's government also restored wage cuts, expanded pensions, guaranteed farmers' prices, and revalued the currency. In 1936

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3744-467: The first-past-the-post voting system preventing them from governing. Up to the 1980s, the party advocated a strong role for governments in economic and social matters. When it governed from 1984 to 1990 , Labour's emergent neoliberal faction had a strong influence; the party broke precedent and transformed the economy from a protectionist one through extensive deregulation . As part of Rogernomics , Labour privatised state assets and greatly reduced

3861-462: The "Wellbeing Budget" was complicated by the accidental publication two days earlier of budgetary documents on a test website which the Treasury had not intended to be publicly available. The opposition National Party gained access to these documents and criticized security. This leak initially raised allegations of hacking - with the usual confusion over different definitions of "hacking" ensuing - and

3978-422: The "industrial anarchy" of the 1951 waterfront dispute . In the 1957 election , however, Labour won a narrow majority of two seats, and returned to office. Nash, Labour's third prime minister, took office in late 1957. Upon coming to power, Labour decided that drastic measures were needed to address balance-of-payments concerns. This resulted in the highly unpopular 1958 "Black Budget" of Arnold Nordmeyer ,

4095-479: The 1930s. As of 2020 , there have been six periods of Labour government under 11 Labour prime ministers . The party has traditionally been supported by the working classes , Māori , Pasifika , and has had strongholds in inner cities and the Māori seats for much of its existence. Labour won the party vote in 71 out of 72 electorates in the 2020 election , making it overwhelmingly the most successful political party of

4212-501: The 1993 election, was replaced by Helen Clark in December 1993. Clark led the party in opposition to the National government for six years under the administrations of Bolger (1993–1997) and Shipley (1997–1999). During this period in opposition, the party made a measured repudiation of Rogernomics, although it has never returned to its original leftist roots (Labour's contemporary position

4329-624: The Alliance split as one of the reasons for calling the 2002 election several months early; Labour won comfortably. Policies of the Fifth Labour Government included the KiwiSaver scheme, the Working for Families package, increasing the minimum wage 5% a year, interest-free student loans, the establishment of District Health Boards , the introduction of a number of tax credits , overhauling

4446-727: The Americans Henry George and Edward Bellamy , who influenced his political policies in later life. Savage moved back to Victoria in 1900, working a number of jobs. He became active in the Political Labor Council of Victoria , and in 1907 he was chosen as the PLC's candidate to stand for the Wangaratta electorate . Savage had to pull out after the party was not able to fund his deposit and campaign costs, and John Thomas stood instead. He remained an active party member and became

4563-593: The Auckland Trades and Labour Council, the Auckland organiser for the Social Democratic Party and supported striking miners at Waihi. During the First World War he opposed conscription , arguing "that the conscription of wealth should precede the conscription of men". Savage's opposition to conscription was not absolute, rather based on balance. Indeed, he complied with a conscription order and entered

4680-467: The Black Budget ensured that Nordmeyer did not have any appreciable success in reversing the party's fortunes. In 1965 the leadership went to the younger Norman Kirk , who many believed would revitalise the party. Labour suffered defeat again in the next two elections, but in the 1972 election , the party gained a significant majority over its rival. Kirk proved an energetic prime minister and introduced

4797-728: The Budget for lacking new initiatives to addressing rising poverty and inequality. Left-wing political commentator Chris Trotter opined that the Wellbeing Budget violated the principle of no taxation without representation . New Zealand Labour Party The New Zealand Labour Party , also known simply as Labour ( Māori : Reipa ), is a centrist political party in New Zealand . The party's platform programme describes its founding principle as democratic socialism , while observers describe Labour as social democratic in theory and pragmatic in practice. The party participates in

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4914-542: The Charitable Aid Board until 1922 and as a councillor until 1923 but was re-elected to the Charitable Aid Board in 1927, remaining in office until 1935. As the war came to an end, the voters of the Auckland West electorate put Savage into Parliament as a Labour member in the 1919 general election , an electorate that he held until his death. He became one of eight Labour members of parliament. He formally became

5031-555: The Fourth Labour Government differed significantly from previous Labour governments. The minister of finance, Roger Douglas , supported neoliberal theories, and sought to implement sweeping free-market reforms (dubbed " Rogernomics ") to the economy and to the tax system. This involved floating the New Zealand dollar, cutting government spending, reducing taxes and removing almost all industry subsidies. The government also revolutionised New Zealand's foreign policy, making

5148-451: The Labour Party of an even more significant electoral victory in the 1938 election . His government joined Britain in declaring war against Germany in 1939. Savage's health declined rapidly after Labour's second electoral victory and he died in office. He was succeeded as head of government by his deputy Peter Fraser . Savage saw himself as spokesman on behalf of his entire party and worked to keep its multiple factions in harness, although

5265-546: The Labour Party's Wellington origins, the West Coast town of Blackball is regarded as the "spiritual home" of the party, because it was the site of a miners' strike in 1908 that led to the founding of the first nationwide federation of trade unions (the " Red Federation "). The Labour Party was established by trade unions, among other groups, and the party identifies itself as part of the wider labour movement in New Zealand. The Labour Party has long been identified with red,

5382-432: The Labour caucus disliked Cunliffe, but he had strong support from the party membership. In the leadership contest he won first-preference votes from only one-third of Labour MPs. Cunliffe's tenure as leader quickly became mired in internal disputes and falling poll-ratings. Labour went on to suffer its worst electoral reversal since 1922 at the 2014 election, Cunliffe opted to resign after initially wishing to re-contest

5499-633: The Labour government lose its majority to the opposition National Party. Based on final results, Labour's share of the popular vote declined to 26.91% while its share of Parliamentary seats dropped to 34. In early November 2023, caretake Prime Minister Chris Hipkins was re-elected as leader of the Labour Party and Carmel Sepuloni was elected as deputy leader. In early 2024, three veteran Labour MPs Kelvin Davis , Rino Tirikatene and Grant Robertson resigned from Parliament, allowing Shanan Halbert , Tracey McLellan and Glen Bennett to re-enter Parliament via

5616-447: The Left . Lauded for his welfare policies, Savage's picture reportedly hung in many Labour supporters' homes. His popularity amongst the voting population was so celebrated that he is said to have remarked in disbelief to Lee that, "They [the people] think I am God" after Labour's re-election in 1938. Savage returned to his Catholic roots shortly before he died. His state funeral included

5733-416: The MMP era . The party first came to power under prime ministers Michael Joseph Savage and Peter Fraser from 1935 to 1949 , when it established New Zealand's welfare state . It governed from 1957 to 1960 , and again from 1972 to 1975 . In 1974, prime minister Norman Kirk died in office, which contributed to a decline in party support. However, Labour won the popular vote in 1978 and 1981 , with

5850-487: The National Party soundly defeated it in the 2008 election . Following the loss to the National Party in the November 2008 election, Helen Clark stood down as leader of the party – Phil Goff succeeded her (serving from 2008–2011). Labour had a relatively high turnover of four leaders during its most recent term in opposition; journalist Nicky Hager has attributed this to Labour's reaction to changes within public media and

5967-488: The National Party to govern as a minority government from 1998 to 1999. After the 1999 election , a coalition government of Labour and the Alliance took power, with Helen Clark becoming New Zealand's second female prime minister. This government, while undertaking a number of reforms, was not particularly radical when compared to previous Labour governments, and maintained a high level of popularity. The Alliance, however, fell in popularity and split internally. Clark cited

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6084-474: The National Party, then led by Robert Muldoon . Rowling remained the leader of the Labour Party for some time after his defeat. In the 1978 election and the 1981 election Labour won a larger share of the vote than National but failed to win an equivalent number of seats. This led to a very heated debate on New Zealand's electoral system, and precipitated the introduction of mixed-member proportional representation (MMP) fifteen years later . Rowling himself

6201-455: The National Party, under Sidney Holland , gained ground, although Labour was able to win the 1943 and 1946 elections. Eventually, in the 1949 election , Labour suffered electoral defeat. Fraser died shortly afterward, and was replaced by Walter Nash , the long-serving minister of finance . It would be some time before Labour would return to power; Nash lacked the charisma of his predecessors, and National won considerable support for opposing

6318-447: The National Party. It was also Savage who insisted that the Act contain a provision that it would not come into force until 1 April 1939, thereby giving National the opportunity to revoke it if they won the 1938 general election . The First Labour Government proved popular and easily won the election, with an increased popular mandate. The Social Security Act was eventually passed, establishing

6435-564: The Party into the political wilderness with an election landslide loss. National swept to power, seemingly repudiating the Lange/Douglas program, but then engaged in even more radical policies than Labour had contemplated. Political disillusionment caused by both governments was to be instrumental in the later adoption of mixed-member proportional representation (MMP) in 1993 (implemented in 1996). Moore himself, despite recovering sixteen seats at

6552-465: The Reform Party and the United Party took their coalition to the next step, agreeing to merge with each other. The combined organisation, named the National Party , would be Labour's main rival in future years. Labour also faced opposition within its own ranks. While the Labour Party had been explicitly socialist at its inception, it had gradually drifted away from its earlier radicalism. The death of

6669-592: The Savage Memorial, a clifftop mausoleum crowned by a tall minaret , and fronted by an extensive memorial garden and reflecting pool . Savage's body is interred in a vertical shaft below the sarcophagus. In February 1941, a competition was run by the New Zealand Government for the design of the mausoleum, won by Auckland architects Tibor Donner and Anthony Bartlett. Work begun on the memorial in June 1941, which

6786-633: The United Labour Party accepted the new organisation, however, and some continued under their own banner. Gradually, however, the differences between the Social Democrats and the ULP Remnant broke down, and in 1915 they formed a unified caucus – both to oppose Reform better and to differentiate themselves from the Liberals. A year later yet another gathering took place. This time, all major factions of

6903-576: The Wellbeing Budget. The Opposition Leader Simon Bridges criticized the Wellbeing Budget, claiming that New Zealand First "held the purse strings, with funding for rail and forestry". Bridges also claimed that the economy was in decline and business confidence were at record lows. Similarly, ACT Party leader David Seymour claimed that the Wellbeing Budget failed to provide the fiscal policies needed for stronger economic growth. The Auckland Action Against Poverty Coordinator Ricardo Menéndez March and left-wing blogger Martyn "Bomber" Bradbury criticized

7020-710: The West Coast, he decided to move north, arriving in Auckland in 1908. He soon found board there with Alf and Elizabeth French and their two children. Alf had come to New Zealand in 1894 on the ship Wairarapa , which was wrecked on Great Barrier Island , and had helped in the rescue of a girl. Savage, who never married, lived with the French family until 1939, when he moved to the house Hill Haven , 64–66 Harbour View Road, Northland, Wellington, subsequently used by his successor as Prime Minister, Peter Fraser, until 1949. After arriving in Auckland he found employment at Hancock and Co.,

7137-415: The beginning of Labour's first term in office. The new government quickly set about implementing a number of significant reforms, including a reorganisation of the social-welfare system and setting up the state housing scheme. Workers also benefited from the introduction of the forty-hour week, and legislation making it easier for unions to negotiate on their behalf. Savage himself was highly popular with

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7254-666: The country a nuclear-free zone , which resulted in suspension from the ANZUS alliance. Labour liberalised immigration policy and promoted migration from Asia. Other innovations during the term of the Fourth Labour Government included extending the jurisdiction of the Waitangi Tribunal back to 1840 (the date of the signing of the Treaty of Waitangi ); the Homosexual Law Reform Act 1986 , which legalised homosexual relations; and

7371-512: The course of the 1920s. In the 1922 election , Labour more than doubled its number of seats, winning seventeen. In the 1925 election , it declined somewhat but had the consolation of soon overtaking the Liberals as the second-largest party. Labour leader Harry Holland became the official Leader of the Opposition on 16 June 1926, after the Eden by-election on 15 April elected Rex Mason (Labour) to replace James Parr (Reform), who had resigned. After

7488-518: The deaths of both his sister Rose and his closest brother Joe. He adopted Joe's name and became known as Michael Joseph Savage from then on. After losing his job in 1893, Savage moved to New South Wales , finding work as a labourer and irrigation ditch-digger in Narrandera for seven years. Whilst there, he joined the General Labourers' Union and became familiar with the radical political theories of

7605-433: The dictators, a policy that New Zealand had opposed. This led to Prime Minister Savage declaring (from his sick bed) two days later: Both with gratitude for the past and confidence in the future, we range ourselves without fear beside Britain. Where she goes, we go. Where she stands, we stand. We are only a small and young nation, but we are one and all a band of brothers and we march forward with union of hearts and wills to

7722-485: The direction of policy remained concealed. Despite taking votes from affluent areas, Labour suffered negative swings in more traditional seats, while the blue-ribbon seat of Remuera nearly fell into the Labour column. The government's second term (1987–1990), with an increased Labour majority won on the back of Lange's anti-nuclear stance, saw emerging divisions over economic policy arising within Cabinet. Ministers debated

7839-411: The emergence of several anti-vaccination protest groups including Voices for Freedom and Brian Tamaki 's The Freedoms and Rights Coalition , culminating in the 2022 occupation of Parliament's grounds . On 19 January 2023, Ardern announced her resignation as party leader and therefore prime minister. In the resultant leadership election Chris Hipkins was the only candidate and was confirmed as

7956-469: The extent and pace of further reforms, and there was disillusion among party members and supporters loyal to Labour's left-wing tradition. The Council of Trade Unions criticised the Labour Party. One vocal member of Parliament critical of government policy, former Party President Jim Anderton , departed to establish the NewLabour Party , which later became a part of the left-wing Alliance Party . At

8073-442: The first Labour prime minister to secure a third full term in office. Clark's government was marked by the creation of Kiwibank , a state-owned banking corporation; strong opposition to the Iraq War ; and the foreshore and seabed controversy , which caused disillusioned Māori Labour MPs to split and create the Māori Party . In the 2017 election the party, under Jacinda Ardern , returned to prominence with its best showing since

8190-404: The first ever social security system in the western world. Following the 1938 election, at the first Labour caucus on 3 November, Labour under-secretary John A. Lee , a critic of Savage who was bitter about being excluded from the cabinet, attempted a caucus revolt . He moved a proposal that caucus elect a new cabinet rather than endorse either the existing one or one nominated by Savage. After

8307-407: The first of the government's 1930s state houses. The iconic 1935 portrait of Savage was hung in many New Zealand homes in the 1930s and 1940s, and previous prime minister Jacinda Ardern had a framed copy in her Beehive office. In December 2020, the original negative of the portrait was discovered in Te Papa 's collections. Savage served as patron of the New Zealand Rugby League . Savage

8424-476: The first time in over a decade. During the 2017 election , Labour gained 36.6% of the party vote and increased its presence in the House of Representatives to 46 seats, making it the second-largest party in Parliament. On 19 October 2017, New Zealand First leader Winston Peters announced that his party would form a coalition government with Labour, citing changing international and internal economic circumstances as

8541-558: The formation of the New Zealand Labour Party in July 1916. He was active in local politics before his election to the House of Representatives in 1919 , as one of eight Labour members returned in that election. Savage was elected unopposed as Labour party leader in 1933 . Savage led the Labour Party to its first ever electoral victory in the 1935 election . He won public support for his government's economic recovery policies and social welfare programme. His popularity assured

8658-417: The government boasted an unemployment benefit payable to people 16 years and over; a universal free health system extending to general practitioners, public hospitals and maternity care; a means-tested old-age pension of 30 shillings a week for men and women at age 60; and universal superannuation from age 65. The social security scheme was a collaborative effort, with the detailed negotiations and drafting of

8775-475: The government decided that broadcasting would be run by the state. As a result a government minister in charge of Broadcasting was appointed and new legislation (the Broadcasting Act 1936) was passed that abolished the existing New Zealand Broadcasting Board and established the new National Broadcasting Service in its place. A Director of Broadcasting was appointed and a Broadcasting Advisory Council formed as

8892-545: The government opposed New Zealand military action in the Iraq War . In early 2004 Labour came under attack in the foreshore and seabed controversy . Significant internal tensions within the party eventually culminated in the resignation of junior minister Tariana Turia and her establishment of the new Māori Party . Following the 2005 election , Labour formed a coalition with the Progressive Party (breakaway party of

9009-419: The international Progressive Alliance . It is one of two major political parties in New Zealand, alongside its traditional rival, the National Party . The New Zealand Labour Party formed in 1916 out of various socialist parties and trade unions . It is the country's oldest political party still in existence. Alongside the National Party, Labour has alternated in leading governments of New Zealand since

9126-460: The introduction of the MMP system in 1996. Described as a "landslide" victory in which the party won the party vote in "virtually every single electorate", Labour is believed to have gained support from swing voters , many of whom had previously voted for National under John Key . On 20 October, Newshub reported that Ardern was not intending to forge a formal coalition with the Green Party but

9243-420: The labour movement agreed to unite, forming the Labour Party as it is today. Almost immediately, the new Labour Party became involved in the acrimonious debate about conscription which arose during World War I . The party strongly opposed conscription, and several leading members – Peter Fraser , Harry Holland , Bob Semple and Paddy Webb – were jailed and expelled from Parliament for their stand against

9360-581: The leadership. His replacement, Andrew Little (2014–2017), then resigned in 2017 following new polling showing the party sinking to a record low result of 24%, with internal voices hoping that rising star Jacinda Ardern would take over in his stead. The caucus confirmed Ardern as the new Labour leader (2017–2023). After Ardern's election to its parliamentary leadership Labour rose dramatically in opinion polls. By late August they had risen to 43% in one poll (having been 24% under Little's leadership), as well as managing to overtake National in opinion polls for

9477-555: The legislation carried out by committees of MPs and public servants. However, Savage's personal involvement was pivotal, as he decided on the basic scheme, helped resolve deep divisions of opinion within the Labour caucus over principles and detail, made many of the major public pronouncements and guarantees, and astutely responded to opposition from the Treasury , the New Zealand branch of the British Medical Association , and

9594-540: The moderates focused instead on progressive reform. The process of unifying these sides into a single party was difficult, with tensions between different factions running strong. In 1910 the Independent Political Labour League was relaunched as an organisation called the Labour Party (distinct from the modern party). Soon, however, the leaders of the new organisation decided that additional effort

9711-572: The necessity for Edward VIII to abdicate , Savage sailed to Britain in 1937 to attend the coronation of King George VI , as well as the concurrent Imperial Conference . While in London, Savage differentiated himself from the other Commonwealth prime ministers when he openly criticised Britain for weakening the League of Nations and argued that the dominions were not consulted with properly on foreign policy and defence issues. Savage's government (unlike Britain)

9828-500: The new Labour leader on 22 January. Hipkins' premiership saw a shift in focus to "cost of living issues" and a "policy bonfire" that saw the scrapping or revision of several Government policies and initiatives including the planned merger of public broadcasters RNZ and TVNZ , a biofuel mandate, lowering the voting age to 16 years and the Clean Car Upgrade programme. Hipkins' government also responded to two natural disasters,

9945-405: The new minister of finance, which raised taxes on alcohol, cigarettes, cars, and petrol. It is widely thought to have doomed the party to defeat despite the economy rejuvenating less than a year after the adoption of the Black Budget. In the 1960 election , the National Party returned to power. The elderly Nash retired in 1963, suffering from ill health. Nordmeyer replaced him, but the taint of

10062-507: The old Alliance), and entered into complex confidence and supply agreements with the centrist United Future and New Zealand First parties, which gave each party's leader a ministerial portfolio, while the support parties remained outside the Cabinet. A limited support agreement also linked Labour with the Green Party , giving certain policy concessions to the Greens in return for abstention on confidence-and-supply votes. Labour lost power when

10179-501: The opposition National Party were critical of Savage for his stance. In April 1938 Savage and his Finance Minister, Walter Nash , began planning Labour's proposals on social security, in-line with their 1935 election promises. Responding to a suggestion from the Reverend W. H. A. Vickery , mayor of Kaiapoi , Savage began to use the term "applied Christianity" to describe the government's scheme. The Social Security Bill put forward by

10296-483: The outgoing Third National Government . Government debt was skyrocketing, due largely to the costs of borrowing to maintain a fixed exchange-rate . When the result of the election became clear, Lange asked Muldoon to devalue the New Zealand dollar , which Muldoon refused to do, resulting in a constitutional crisis and precipitating some of the changes in the Constitution Act 1986 . The economic-policy agenda of

10413-540: The party list. In February 2024, Labour reversed its previous support for New Zealand entering the non-nuclear component of the AUKUS , with foreign affairs spokesperson Phil Twyford describing it as an "offensive warfighting alliance against China." In April 2024, Labour called for New Zealand to recognise Palestinian statehood . Michael Joseph Savage Prime Minister of New Zealand Elections Michael Joseph Savage PC (23 March 1872 – 27 March 1940)

10530-434: The party would co-operate with the investigation. The 2017–2020 term saw several ministerial resignations for various indiscretions, notably Phil Twyford , Clare Curran , Meka Whaitiri and David Clark . In the 2020 election , Labour gained 50% of the party vote and increased its presence in the House of Representatives to 65 seats, marking the first time that a party has won enough seats to govern alone since

10647-520: The party's leader , while Carmel Sepuloni is the deputy leader . The founding of the New Zealand Labour Party, on 7 July 1916 in Wellington, brought together a number of earlier socialist groups advocating proportional representation , the abolition of the country quota , the recall of members of Parliament , as well as the nationalisation of production and exchange . Despite

10764-475: The party's deputy-leader after the 1922 election, defeating Dan Sullivan eleven votes to six. Assuming an ever-increasing workload, he had resigned as Labour's national secretary and Auckland Labour Representation Committee secretary in July 1920. For most of the 1920s Savage sought to expand Labour's support beyond urban unionists and travelled frequently to rural areas. He became the leading advocate for increases to pensions and universally free health care. He

10881-420: The party's former leader, the "doctrinaire" Harry Holland, had marked a significant turning-point in the party's history. Some within the party, however, were displeased about the changing focus of the party. Most notably, John A. Lee . Lee, whose views were a mixture of socialism and social credit theory, emerged as a vocal critic of the party's leadership, accusing it of behaving autocratically and of betraying

10998-482: The party's rank and file. After a long and bitter dispute, the Party expelled Lee from the party, who then established his own breakaway Democratic Labour Party . Savage died in 1940 and Peter Fraser , who became Labour's longest-serving prime minister, replaced him. Fraser became best-known as New Zealand's head of government for most of World War II . In the post-war period, however, ongoing shortages and industrial problems cost Labour considerable popularity, and

11115-401: The political environment. Goff led Labour into a second electoral defeat in 2011 and was succeeded by David Shearer , who led the Labour parliamentary from 2011 to 2013. Shearer resigned after losing the confidence of caucus. David Cunliffe (2013–2014) assumed the leadership after the 2013 leadership election in which, under new rules, members and unions held 60% of the vote. Most of

11232-706: The public became highly dissatisfied with its failure to resolve the country's economic problems. Harry Holland died in 1933 and his deputy, Michael Joseph Savage, became the Labour Party parliamentary leader. In the 1935 election , the Labour Party gained a significant majority, gaining 53 seats to the coalition's 19, and returned to government. Several of the early Labour Party stalwarts were Australian-born: Alfred Hindmarsh , Harry Holland , Michael Joseph Savage , Bob Semple , Paddy Webb , Bill Parry and later Jerry Skinner , Mabel Howard , Hugh Watt , Jim Edwards and Dorothy Jelicich . Party leader Michael Joseph Savage became prime minister on 6 December 1935, marking

11349-500: The radicals, and in the end, the conservative Reform Party government of William Massey suppressed the strike by force. In the strike's aftermath, there was a major drive to end the divisions in the labour movement and to establish a united front. Accordingly, Walter Thomas Mills organised another Unity Conference , and this time the Socialists attended. The resulting group was named the Social Democratic Party . Not all members of

11466-685: The reasoning behind his decision, coupled with a belief that a Labour government was best-placed to handle the social and economic welfare of New Zealanders in a global environment that was undergoing rapid and "seismic" change. This coalition, combined with confidence and supply from the Green Party, saw Labour return to government for the first time since 2008. Ardern became prime minister, with Peters as her deputy. The Labour government pledged to eliminate child poverty, make tertiary education free, reduce immigration by 20,000 to 30,000, decriminalise abortion , and make all rivers swimmable within 10 years. Notable policies, programmes and legislation during

11583-496: The role of the state, causing a party split in 1989. Labour prime minister David Lange , a member of the party's left , also introduced New Zealand's nuclear-free policy . After a significant defeat in the 1990 election , Labour's neoliberal faction would largely defect from the party and form ACT New Zealand . Labour again became the largest party from 1999 to 2008 , when it governed in coalition with, or based on negotiated support from, several minor parties; Helen Clark became

11700-456: The sale of tobacco to anyone born after 1 January 2009, repealing "three strikes" legislation , and banning live animal exports. In terms of foreign policy, the Labour Government supported Ukraine following the 2022 Russian invasion of Ukraine , sanctioned Russia, signed free trade agreements with both the United Kingdom and European Union , and advocated restraint in response to

11817-561: The same time Roger Douglas and Lange fought intermittent battles inside Cabinet, with Douglas wanting to expand his economic programme dramatically. Lange strongly opposed a flat-tax proposal from Douglas and moved to sack him, resulting in political clashes throughout 1988 and the departure of Douglas from the Cabinet in December 1988. After the Labour Caucus re-elected Douglas to Cabinet on 3 August 1989, Lange resigned from office himself (8 August 1989), interpreting Douglas's reappointment as

11934-618: The secondary-school qualifications system by introducing the NCEA , and the introduction of fourteen weeks' parental leave. Labour also supported the Civil Union Act 2004 , which legalised civil unions for same-sex and opposite-sex couples. The foreign policy of the Fifth Labour Government strongly reflected liberal internationalist doctrine, with a particular emphasis on promoting democracy and human rights, advocating for antimilitarism and disarmament , and encouragement of free trade. In 2003,

12051-552: The unemployment situation the government was promoting the development of secondary industries. Likewise the government announced in May 1936 a three year public works programme. This not only provided relief work for the unemployed but also restarted the Public Works Department original function as the development arm of the state. Additionally, all relief workers were placed on standard £4 a week rate of pay. Despite questioning

12168-586: The union to the Auckland Trades Council and in 1910 he was elected president of the trades council. Savage at first opposed the formation of the original New Zealand Labour Party as he viewed the grouping as insufficiently socialistic. Instead he became the chairman of the New Zealand Federation of Labour , known as the "Red Feds". There, he assisted with organising meetings and group sessions and helped to distribute their socialist newspaper,

12285-465: The war. The loss of leadership threatened to seriously destabilise the party, but the party survived. (Fraser, Semple and Webb later supported conscription in World War II . ) In its first real electoral test as a united party, the 1919 election , Labour won eight seats – the party's quick success shocked many conservatives. The eight seats compared with 47 for the governing Reform Party and 21 for

12402-457: The working classes, and his portrait could be found on walls in many houses around the country. At this time the Labour Party pursued an alliance with the Māori Rātana movement. The parliamentary opposition, meanwhile, attacked the Labour Party's more left-wing policies and accused it of undermining free enterprise and hard work. In May 1936, months after Labour's first general election win,

12519-520: Was a more practical politician than then Labour leader Harry Holland . In October 1933 Holland died suddenly and Savage took his place becoming Labour's third party Leader. Savage later helped to engineer an alliance between Labour and the Rātana Church, which was gaining a large Māori following in the 1930s. When T .W. Rātana entered politics he allied himself with the Labour Party, which had consulted with his followers over Māori policy. The pact

12636-549: Was an Australian-born New Zealand politician who served as the 23rd prime minister of New Zealand , heading the First Labour Government from 1935 until his death in 1940. Savage was born in the Colony of Victoria (present-day Australia), and emigrated to New Zealand in 1907 at the age of 35. A labourer, he became a trade unionist , and in 1910 was elected president of the Auckland Trades and Labour Council. Savage supported

12753-428: Was compared by media unfavourably to Muldoon, and did not cope well with Muldoon's aggressive style. In 1983 Rowling was replaced as parliamentary leader by David Lange , whom the parliamentary caucus perceived as more charismatic. In the snap election of 1984 , Labour decisively defeated the National Party. When the Fourth Labour Government came into power it uncovered a fiscal crisis that had been largely hidden by

12870-501: Was completed by March 1942 and officially opened in March 1943. Michael Joseph Savage is admired from many sides of the political spectrum and is known as the architect of the New Zealand welfare state. His Labour government provided the foundations of the post-war consensus , based upon the assumption that full employment would be maintained by Keynesian policies and that a greatly enlarged system of social services would be created. He

12987-558: Was eventually expelled from the party by the annual conference. Savage led the country into the Second World War, officially declaring war on Nazi Germany on 3 September 1939, just hours after Britain. Unlike Australia, which felt obligated to declare war, as it also had not ratified the Statute of Westminster , New Zealand did so as a sign of allegiance to Britain, and in recognition of Britain's abandoning its former appeasement of

13104-472: Was exploring the possibility of a lower-level support arrangement due to Labour's large parliamentary majority. Following prolonged negotiations, the Green Party agreed to enter into a cooperation agreement with the Labour Party on 31 October and received two ministerial portfolios in return. Despite this landslide victory Labour faced criticism from economists due to the government's lack of action on New Zealand's housing affordability crisis , despite it being

13221-583: Was formalised in a 1936 meeting between Rātana and Savage. In 1935, Savage was awarded the King George V Silver Jubilee Medal . During the depression , Savage toured the country, and became an iconic figure. An excellent speaker, he became the most visible politician in the land, and led Labour to victory in the 1935 election . Along with the Premiership, he appointed himself to the posts of Minister of External Affairs and Minister of Native Affairs. In 1936

13338-415: Was needed to promote left-wing cooperation, and organised a "Unity Conference" . The Socialists refused to attend, but several independent labour activists agreed. The United Labour Party (ULP) was born. Soon afterward, the labour movement went through the 1912 Waihi miners' strike , a major industrial disturbance prompted by radicals in the union movement. The movement split over supporting or opposing

13455-478: Was quick to condemn German rearmament, Japanese expansion in China and Italy's conquest of Abyssinia . Savage criticised Britain's appeasement policies at the conference, saying "Is your policy peace at any price; if it is so I cannot accept it". Anthony Eden replied "No, not at any price, but peace at almost any price", to which Savage replied: "You can pay too high a price even for peace". Britain, Australia, Canada and

13572-554: Was referred to the New Zealand Police before a senior Treasury official confirmed that the leak had been accidental. Opposition Leader Simon Bridges also criticized the Government's handling of the data leak and called for the resignations of Finance Minister Robertson and Treasury Secretary Gabriel Makhlouf. The Coalition Government has allocated NZ$ 3.8 billion in operational funding and NZ$ 10.4 billion in capital funding for

13689-453: Was the youngest of eight children of Irish immigrant parents. His father, Richard Savage, was a native of Dundrum, County Down and his mother Johanna Savage (née Hayes) was from Limerick . Both migrated to Australia in the 1850s to escape the Irish Famine . He received a Roman Catholic upbringing from his sister Rose, after his mother died when he was aged five. He spent five years attending

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