Second Government (1957–1960) and opposition New Zealand Labour Party

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nash, labour s third prime minister, took office in late 1957. upon coming power, labour decided drastic measures needed address balance of payments concerns. resulted in (in)famous black budget of arnold nordmeyer, new minister of finance. budget raised taxes, particularly on alcohol , cigarettes, , highly unpopular. thought have doomed party defeat despite economy having rejuvenated less 1 year after black budget. in 1960 election, national party indeed victorious.


the elderly nash retired in 1963, suffering ill health. replaced nordmeyer, taint of black budget ensured nordmeyer did not have appreciable success in reversing party s fortunes. in 1965, leadership assumed younger norman kirk, many believed revitalise party. labour defeated again in next 2 elections, in 1972 election, party gained significant victory.








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