Today in History

1960 '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 the longest-serving post-war Prime Minister.

Holyoake was briefly Prime Minister after the resignation of Sidney Holland, shortly 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. His time in opposition was limited to one term largely due to the unpopular economic policies of Nash's government, especially the infamous 1958 ‘Black Budget’ which substantially increased alcohol and tobacco taxes. National exploited the perception that the government was run by miserly ‘kill-joys’ to secure a 12-seat victory at the 1960 election.

The political philosophy of ‘Kiwi Keith’ (so named to distinguish him from an Australian cousin of the same name) was aimed at preserving the economic prosperity and general stability of the period – best summed up by his 1963 election slogan, ‘Steady Does It’. While he was criticised by some, the longevity of his administration suggests he had correctly read the mood of mainstream New Zealanders.

There were some notable exceptions to this generally conservative tone: in 1961 ten 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 response to Vietnam encapsulated his cautious political style. Initially a Civilian Surgical Team was sent to Vietnam in 1963. Faced with increasing US pressure, army engineers followed in June 1964. The crucial decision to send combat forces came in 1965, ensuring that Vietnam would become a key election issue in 1966. The Labour Party, under Norman Kirk, was committed to the withdrawal of our troops. Holyoake maintained that participation in Vietnam was a necessary stand against communism and that New Zealand had to show support for our most powerful defence ally. While the government's share of the popular vote fell, it still had a comfortable majority after the election.

In 1967 Robert Muldoon became Minister of Finance following the death of Harry Lake. Muldoon oversaw the introduction of decimal currency later that year. At 45 he became the youngest Minister of Finance since the 1890s. But Holyoake gave Muldoon a lower ranking than was usually given to this portfolio as he believed that Muldoon was too arrogant and ambitious for his own good. Muldoon was 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 then the administration appeared tired and out of touch. Holyoake stepped aside in February in favour of his deputy of 12 years, Jack Marshall. But Marshall was no match for the charismatic Kirk. Labour's ‘time for a change’ slogan captured the electorate's mood and sent National tumbling to a 23-seat defeat.

Holyoake left Parliament in 1977 and served as Governor-General from 1977 to 1980. He died in Wellington in 1983.

Image: Keith Holyoake in 1977