First Government (1935–1949) and opposition New Zealand Labour Party

members of first labour government, on steps of parliamentary library, wellington

michael joseph savage, leader of party, became prime minister on 6 december 1935, marking beginning of labour s first term in office. new government set implementing number of significant reforms, including reorganisation of social welfare system , creation of state housing scheme. workers benefited introduction of forty hour week, , legislation making easier unions negotiate on behalf. savage himself highly popular working classes, , portrait found on walls of many houses around country. @ time labour party pursued alliance māori rātana movement.

the opposition, meanwhile, attacked labour party s more left-wing policies, , accused of undermining free enterprise , hard work. year after labour s first win, reform party , united party took coalition next step, agreeing merge each other. combined organisation named national party, , labour s main rival in future years.

labour faced opposition within ranks. while labour party had been explicitly socialist @ inception, had been gradually drifting away earlier radicalism. death of party s former leader, doctrinaire harry holland, had marked significant turning point in party s history. within party, however, displeased changing focus of party, notably john a. lee. lee, views mixture of socialism , social credit theory, emerged vocal critic of party s leadership, accusing of behaving autocratically , of betraying party s rank , file. after long , bitter dispute, lee expelled party, establishing own breakaway democratic labour party.

savage died in 1940, , replaced peter fraser, became labour s longest-serving prime minister. fraser best known new zealand s leader of world war ii. in post-war period, however, ongoing shortages , industrial problems cost labour considerable popularity, , national party, under sidney holland, gained ground although labour able win 1943 , 1946 elections. finally, in 1949 elections, labour defeated.

fraser died shortly afterwards, , replaced walter nash, long-serving minister of finance. time before labour return power, – nash lacked charisma of predecessors, , national won considerable support opposing industrial anarchy of 1951 waterfront dispute. in 1957 election, however, labour won narrowest of victories, , returned office.