The Third Labour Government of New Zealand was the government of New Zealand from 1972 to 1975. During its time in office, it carried out a wide range of reforms in areas such as overseas trade, farming, public works, energy generation, local government, health, the arts, sport and recreation, regional development, environmental protection, education, housing, and social welfare.Labour in Power: Promise and Performance: evaluations of the work of the New Zealand government from 1972 to 1975, edited by Ray Goldstein & Rod Alleyhttp://www.colinjames.co.nz/speeches_briefings/Kirk_conference_12Nov03.pdf Māori also benefited from revisions to the laws relating to land, together with a significant increase in a Māori and Island Affairs building programme.The Third Labour Government by Michael Bassett In addition, the government encouraged biculturalism and a sense of New Zealand identity. However, the government damaged relations between Pākehā and Pasifika New Zealanders by instituting the Dawn Raids on alleged overstayers from the Pacific Islands; the raids have been described as "the most blatantly racist attack on Pacific peoples by the New Zealand government in New Zealand’s history". The government lasted for one term before being defeated a year after the death of its popular leader, Norman Kirk.
Significant policies The government's most significant policies concerned attempts to create a distinct New Zealand identity, both internally and in the world. For most of its history, New Zealand had been, economically, culturally and politically, highly dependent on Britain. This began to change during World War II, when it became clear that Britain was no longer able to defend its former colonies in the Pacific. As Britain began to turn away from what was left of its former Empire and towards Europe, New Zealanders became less inclined to think of themselves as British. Initially the country turned instead to the United States, and so entered into the ANZUS pact with the US and Australia, and aided the U.S in the Vietnam War. However, by the early 1970s many New Zealanders felt the need for genuine national independence, a feeling strengthened when Britain joined the European Economic Community in 1973, causing serious problems for New Zealand trade. Most of this government's policies can be seen in this light.
Treaty of Waitangi This was the first government to give serious recognition to the Treaty of Waitangi, first by making the anniversary of its signing a national public holiday, and then by establishing the Waitangi Tribunal to investigate contemporary breaches of it. Both were concessions to increasingly angry Māori protest, as was the appointment of Matiu Rata to Minister of Māori Affairs (and initially Lands). He was the first Māori Minister of Māori Affairs since the 1930s and the first ever Māori Minister of Lands.
The Treaty of Waitangi Act 1975 was the first legal recognition of the Treaty, but did not allow the Tribunal to investigate historical breaches. The New Zealand Day Act 1973, which made Waitangi Day a national public holiday, also fulfilled the Māori demand for greater acknowledgement of the Treaty. However it was also a part of the government's programme of nationalism, as the name of the day (New Zealand Day) indicates. New Zealand Day was intended to appeal to New Zealanders of all ethnicities, including those who were neither Māori nor Pākehā.
Economic New Zealand's economy was heavily dependent on overseas trade, and Prime Minister Norman Kirk felt that it made little sense to be dependent on foreign-owned shipping firms. A state-owned shipping line, Shipping Corporation of New Zealand was created, but was to be financially unsuccessful. The Development Finance Corporation bill was passed, which reconstituted the Development Finance Corporation as a wholly Government-owned body. It operated like a Development Bank in assisting with the promotion of regional development and new industrial projects. Wage controls instituted by the previous government were abandoned. The government tried to avoid inflation via massive overseas borrowing and a variety of local regulations. A scheme was introduced to fix maximum retail prices, while to keep people in employment it added the post office, the railways, milk, lamb, mutton, and wool to the number of industrial subsidies.A Traveller's History of New Zealand and the South Pacific Islands by John. H. Chambers Office, rail, and bulk power charges were controlled. During the government's first year in office, adjustments were made to the salaries of State Servants while the Stabilisation of Remuneration Regulations were introduced, which provided wider flexibility for employers and trade unions to negotiate new pay rates. These changes enabled wage and salary-earners to negotiate with their employers for a better deal, which they quickly did. The Development Finance Corporation was provided with powers to "grant up to 40 per cent of the capital cost of plant and machinery for projects designed to achieve a high export performance". New provisions were introduced to encourage employers "to finance their employees into shareholding agreements with the company". Subsidies and suspensory loans were introduced to encourage regional development, together with selective investment incentives "to encourage desirable changes in the pattern of industry." Many of the direct penalties on strikes and lock-outs were removed. Average real wages rose substantially, with the share of the economic "cake" accruing to labour rising from 45% in 1972/73 to 48% in 1975/76. In his first budget, Bill Rowling announced that state spending on housing and electricity capital works would increase, and 14% more would be spent on education and 19% more spent on health.The state in New Zealand, 1840–1984: socialism without doctrines? by Michael Bassett Bob Tizard reduced income tax rates for many on lower incomes, and a standard tertiary bursary and additional house lending were included in the 1975 budget. Including benefit payments, new training, export and production incentives, and further money for health, education, housing, culture, and recreation and regional development pushed expenditure up by 19% for 1974–75.
Foreign affairs Recognition of the People's Republic of China. Opposition to French nuclear testing in the Pacific Ocean. Refusal to allow sporting contacts with apartheid South Africa. Abolished compulsory military training. The government's foreign policy reflected its desire for independence from the powerful nations of Western Europe and North America. It was also influenced by the many left-wing movements of the period, such as environmentalism, the peace movement, and anti-racism. However, in many cases it was simply catching up to the rest of the world, much of which had already recognised the People's Republic of China and cut sporting ties with South Africa. The decision to block a proposed tour by the South African Springbok rugby team was only made once it became clear that international disapproval of the tour would seriously harm the 1974 Commonwealth Games in Christchurch. Before the 1973 election, Kirk had promised not to get involved in the sporting contacts issue. Aid to the developing world (which had virtually static for at least two decades) was also significantly increased, with official development aid increasing from 0.22% of GNP in 1972 to 0.55% of GNP by 1975. This measure was seen as characteristic of the "new morality" in foreign policy pursued by the Third Labour Government.
Constitutional Altered the Queen's title in New Zealand The Royal Titles Act 1974 removed mention of the United Kingdom from the Queen's title in right of New Zealand. This was a symbolic act which made no difference in practical terms, as New Zealand's monarchy was made legally independent with the passing of the Statute of Westminster by the first Labour Government in 1947. Passed the Constitution Amendment Act 1973 This altered the New Zealand Constitution Act 1852 so that the New Zealand Parliament could legislate extra-territorially. Lowered the voting age from 20 to 18. An electoral amendment bill increased Māori representation. The Māori Affairs Amendment Act of 1974 redefined a Māori as "a person of the Maori race of New Zealand; and includes any descendant of such a Maori," thereby broadening the definition of who was a Māori.
Social policy
Payment of the Christmas Bonus A Christmas Bonus of an additional week's benefit was introduced for the elderly.Easton, Brian (1980). Social Policy and the Welfare State in New Zealand.
Establishment of the Domestic Purposes Benefit for single parents (1973). Single parenthood and divorce were no longer as scandalous as they once had been, and the introduction of the Domestic Purposes Benefit reflected this.
Establishment of compulsory pension savings' scheme. The elderly were the one group of New Zealanders not entitled to non–means-tested income support when they were unable to work. Both parties attempted to address this issue: Labour with a compulsory savings scheme and National with a scheme to be paid for out of general taxation. The superannuation scheme introduced by the Third Labour Government benefitted 750,000 workers who previously had no other form of retirement pension aside from the age benefit. Labour's scheme was short-lived, as it was abolished by the third National government and replaced with universal superannuation. Brian Gaynor estimated that the Labour scheme would be worth at least $240 billion by 2007, Sam Stubbs estimated $500 billion by 2021, and Eric Frykberg estimated it could be $1 trillion in 2025.
The introduction of Additional Benefit (1975).
This was a means-tested statutory benefit for the elderly, which included an allowance for housing costs, an income supplement, and a special expenses item. It replaced an earlier benefit for pensioners called Supplementary Benefit. According to Brian Easton, the new Additional Benefit systematised and extended supplementary assistance.Easton, Brian (1981). Pragmatism and Progress: Social Security in the Seventies.
The introduction of the Disability Allowance (1975).
Introduced in October 1975, this was an allowance for disabled people receiving an income tested benefit or for people with an income level that enabled them to qualify for an income tested benefit. The allowance could also be paid in respect of the disabled wife or child of such a person. The aim of the allowance was to help disabled people meet special expenses resulting from their disability, such as medicines not on the free list, domestic help, special diet, or transport costs.
An expanded welfare system. The Third Labour government made considerable changes to New Zealand's social security system, both in terms of the adequacy of benefits and in the range of welfare benefits available. As noted by historian Keith Sinclair, "The Kirk-Rowling Government gave exceptional attention to the needs of the needs of the least privileged – often recent Pacific Island immigrants or 'solo mums'."Sinclair, Keith. A History of New Zealand.