'Kiwi Keith' begins 12-year reign as PM

The National Party, led by Keith Holyoake, defeated Walter Nash’s one-term Labour government. Holyoake would go on to become New Zealand’s longest-serving prime minister or premier since ‘King Dick’ Seddon.

Holyoake had become prime minister after the resignation of Sidney Holland three months before the 1957 election. With little time to establish himself as leader and facing a significant swing against National, he was unable to prevent a narrow Labour victory. Nash’s government soon became unpopular, especially because of the infamous 1958 ‘Black Budget’ which substantially increased taxes on alcohol and tobacco. National exploited a perception that the government was run by miserly ‘kill-joys’ to win the 1960 election with a majority of 12 seats.

The aim of ‘Kiwi Keith’ (he was called this to distinguish him from an Australian cousin of the same name) was to preserve economic prosperity and stability. It was best summed up by his 1963 election slogan, ‘Steady Does It’. While he was criticised by some, the longevity of his administration suggests that he had correctly read the mood of most New Zealanders.

There were some notable exceptions to this generally conservative tone: in 1961 10 National MPs voted with the Opposition to abolish the death penalty for murder; the following year the Holyoake government introduced the office of Ombudsman to investigate complaints about central government departments and organisations. Overall, there was a move to improving parliamentary scrutiny of the executive, including the introduction of a daily oral question time in the House. 

One of the greatest challenges to Holyoake was opposition to New Zealand’s involvement in the Vietnam War. Critics argued that his foreign policy was too heavily influenced by the United States. Holyoake’s approach to Vietnam encapsulated his cautious political style. Initially a Civilian Surgical Team was sent to South Vietnam in 1963. Faced with increasing US pressure, army engineers followed in June 1964. The crucial decision to send combat forces was made in 1965, ensuring that Vietnam would become a key election issue in 1966. The Labour Party, under the energetic leadership of Norman Kirk, was committed to the withdrawal of our troops. Holyoake argued that participation in the Vietnam War was a necessary stand against communism and that New Zealand must support its most powerful ally. While the government’s share of the vote fell, it retained a comfortable majority after the election.

In early 1967 Robert Muldoon became minister of finance following the death of Harry Lake. Muldoon oversaw the introduction of decimal currency that year. But Holyoake saw him as too arrogant and ambitious for his own good and gave him a lower ranking in Cabinet than was usual for the holder of this portfolio. Muldoon was to be prime minister from 1975 to 1984.

National’s victory in the 1969 election was all the more remarkable for the fact that it actually increased its share of the vote after nine years in power. This would not be the case in 1972, by which time the administration appeared tired and out of touch. Holyoake stepped aside in February in favour of his deputy of 11 years, Jack Marshall. But Marshall was no match for the charismatic Kirk. Labour's ‘time for a change’ slogan captured the mood of the electorate and sent National tumbling to a 23-seat defeat.

Holyoake retired from Parliament in 1977 and then served – somewhat controversially – as governor-general until 1980. He died in Wellington in 1983.

Image: Keith Holyoake in 1977