1904 - 1983
Prime Minister from 20 September, 1957 to 12 December, 1957
The earth shook in the 1960s. Space travel,
the Vietnam war, high profile political assassinations, a dangerous crisis in
Cuba and a cold war flashpoint in Berlin, the American civil rights movement,
women’s liberation and the contraceptive pill, a youth counter-culture in music,
fashion and drugs, the anti-nuclear movement and an awakening to environmental
issues all combined to make the sixties the most tumultuous decade of the
twentieth century. With the Holyoake era in New Zealand straddling this decade
(and nibbling into the early 70s - also a period of momentous social change) one
would expect his administration to be, while not as dramatic as the
international events surrounding it, at least a pretty colourful one.
It wasn’t.
Holyoake’s ministry was a curiosity. Nobody
denied the world was changing and New Zealand with it, but Holyoake’s consensual
style gave the impression that things were stable, a steady hand was on the
tiller and life was just as it should be. It was simply his style. And it worked
with the voters. A decisive win over Labour in 1960 set the ball rolling and
hardly anyone noticed the 1963 and 1966 elections. It wasn’t until 1969 that
things began to unravel.
Before his 1960 election win Holyoake had
already been prime minister –for a mere twelve weeks. He was given a hospital
pass in September 1957 when reigning prime minister Sidney Holland chose to
retire weeks before an election that National was unlikely to win. Holyoake took
over just in time to lead an unsuccessful campaign and the once proud National
government came to an end after eight years in power. He then spent three years
attacking the hapless Labour government as a powerful opposition leader before
returning for his main term and cemented his place in history by winning four
elections and becoming NZ’s third longest-serving prime minister after Seddon
and Massey.
Holyoake was a life-long supporter of the
farming sector and was a little slow in adapting to the National party’s
changing support base as it edged more and more towards the urban businessman.
This change, together with the inevitable weariness associated with a
fourth-term government, contributed to National’s eventual loss in 1972.
Keith Holyoake was born on 11 February, 1904
in Mangamutu near Pahiatua. After the death of his grandfather in 1913 he moved
with his family to Riwaka, near Nelson, to work on a farm which had been run by
earlier generations of the Holyoake family since 1843. The farm produced fruit,
tobacco and hops and the young Keith worked hard on it while still at school. He
left school to work full time at the tender age of 12. His education continued
at nights under the guidance of his mother who coached him to speak with a
refined accent that defined him for his entire life – sounding pompous to some,
dignified and well-educated to others.
He was an enthusiastic sportsman and after
winning provincial selection as a rugby player went on to become president of
the Golden Bay rugby union.
By his late 20s he was running the family farm
himself and became active in farm-related organisations, joining the Motueka
fruit-growers’ association and later the local farmers’ union - eventually
becoming a leading light in several nationwide farming groups.
Much later, in the early 1950s, he widened his
agricultural interests by purchasing a share in a large block of land adjacent
to Lake Taupo which eventually comprised a farm and holiday home. This property
together with Riwaka and a farm purchased near Dannevirke in 1941 were his life
interests outside of politics and family. Throughout his career he was
frequently seen driving with a trailer-load of produce or farm-related items.
Holyoake’s public profile in the fruit-growing
and wider farming industry led to an invitation for him to join the Reform party
and stand as its Motueka candidate in 1931. The seat had been narrowly won by
United’s George Black in 1928 and was seen as a real chance for Reform this time
round. The 27 year old Holyoake was coached by party officials and campaigned
well but Black’s support for a local railway won him favour and Holyoake was
beaten by 517 votes. Less than a year later he had another chance as a result of
Black’s death and, now competing as a United/Reform coalition candidate against
Labour, he won the seat by 458 votes. Reform leader Gordon Coates had travelled
south to campaign alongside him and a strong bond was formed between the two. On
1 December, 1932 Holyoake became an MP in the United/Reform coalition
government. At 28, he was the youngest member in the house.
His early weeks were, understandably, somewhat
tentative and he was little more than an observer during the heated discussions
relating to the Coates’ devaluation of NZ’s currency over which finance minister
Downie Stewart resigned. He admired the way Coates stood firm and took over the
finance portfolio. However, legislation later proposed by Coates that would have
raised taxes on tobacco so concerned Holyoake that he made it the main topic of
his maiden speech. Tobacco was a rapidly developing industry in his electorate
of Motueka and Holyoake presented statistics relating to it to back up his
decision to oppose the bill. Rather than berate him for daring to speak against
his own party in his maiden speech (as parliament’s youngest member, moreover),
Coates praised him for his courage, accepted his arguments and altered sections
of the bill in the tobacco growers’ favour.
It was undoubtedly Holyoake’s support for the
tobacco industry that enabled him to retain his seat in 1935 amid such a wild
swing of support away from the government to Michael Joseph Savage’s Labour
party which won the election decisively and put Holyoake and his colleagues onto
the opposition benches. Holyoake’s win in Motueka was very narrow and with
Labour’s popularity continuing to increase by the day and the clouds of
depression lifting, his chances of another win in 1938 looked slim. Boundary
changes also favoured Labour as did an influx of relief workers. Holyoake was
defeated.
It was a watershed moment in both Holyoake’s
career and the history of the National party - formed in 1936 to replace the
United/Reform coalition. Holyoake considered leaving politics and dedicating his
life to farming. The party thought otherwise. The leadership had been devastated
by his loss in Motueka and immediately set about finding a safer seat for him to
contest in the next election. An opportunity arose when the sitting member for
Pahiatua retired. It was a blue ribbon seat and the party went so far as to find
a farm in the district and assist Holyoake with finance to purchase it.
One might ask why the party was so keen to get
Holyoake back into parliament. Others had lost their seats, some more
experienced. But Holyoake was a farmer and heavily involved in rural politics.
As the party’s hierarchy was shifting towards the city and small town
businessmen, they needed someone like Holyoake to anchor the party to its rural
roots. And the young MP was already demonstrating good debating skills as well
as a healthy pragmatism. A big future in politics seemed assured for him and
leadership qualities were identified even at this stage. Leadership was an issue
for the party after the heavy 1938 loss. Adam Hamilton had been asked to stand
down to make way for the far more electable Sidney Holland. Had Holyoake not
lost his seat he could well have been a contender.
Holyoake installed a manager on his newly
purchased farm and didn’t move his family to the new electorate until the end of
1942. The family then settled in Dannevirke, retaining the Riwaka operation and
appointing a manager there.
When the next election finally took place in
1943, delayed by the war, Holyoake won by 1,825 votes – a comfortable margin
considering the continued popularity of Labour, enjoying their third successive
election win and dealing new National leader Holland a disappointing loss. It
had been a spirited and energetic campaign by Holyoake and included a
highly-praised speech delivered in Pahiatua and broadcast nationwide.
Holyoake was now firmly settled on the
opposition front bench. By 1944 he was functioning as a de facto deputy leader
during Holland’s absences and was elected to the Dominion Executive and Dominion
Council in 1945. Despite this, and following an even more resounding electorate
win in the 1946 election, he was not an automatic choice when Holland came to
select an official deputy. In fact the opposition leader preferred Bill
Sullivan, a building contractor who had always been a staunch Holland supporter
whereas Holyoake was seen as a stalwart of the Coates Reform faction and not the
flavour of the month for Holland. But the caucus overall favoured Holyoake,
realising his importance in retaining the rural vote. In January, 1947 Holyoake
became the deputy leader of the National party.
It was a demanding time for him. Like Motueka,
Pahiatua was a huge electorate and over and above electorate commitments he
occasionally had to deputise for his leader. He also had to be cautious with his
parliamentary speeches – feeling as he did about individual initiative and
minimal government intervention but having to refrain from advocating the
wholesale removal of industry protection. Farming subsidies had benefitted him
personally and he continued to support them. He was rewarded in 1949 when he was
re-elected with a 4,507 vote majority. More importantly, National won the
election after fourteen years in opposition. As expected Holyoake immediately
entered cabinet, as minister of agriculture and marketing – an apt role in which
he was extremely effective and progressive. He was later officially appointed
deputy prime minister. In 1951 he moved from Dannevirke to Wellington.
The bitter 1951 waterfront strike was a
triumph for the government – prime minister Holland and labour minister Bill
Sullivan in particular. Sullivan’s reputation was enhanced to such an extent
that he, rather than Holyoake, was now being talked about as a likely successor
to Holland.
A concern for Holyoake as marketing minister
during the 1950s was New Zealand’s trading relationship with Britain. In 1955
about 90% of our butter and frozen meat was being exported exclusively to
Britain and when the European Economic Community was set up in 1957 and Britain
began talking of joining, New Zealand’s lucrative market was threatened. Despite
that, both the farming community and Holyoake himself felt comfortable that
Britain would never neglect her loyal wartime ally and that the relationship
would be protected. At this stage, little was done to seek other markets apart
from wool which had been diversifying for some time.
In February, 1957 Holyoake’s rival for the
leadership, Bill Sullivan, was forced to resign from parliament following the
death of his son and the need for him to take control of the family construction
business. This left Holyoake as Holland’s only possible successor. He was ready
to take over but Holland wasn’t ready to step down. By mid-year his health was
declining and he had almost become a liability for the party with an election
coming up. He was finally persuaded to relinquish the leadership and Holyoake
was sworn in as prime minister on 20 September – less than three months before
the general election.
It was a disorganised campaign with little
originality against Labour’s tempting offer of a £100 tax rebate and a range of
other enticements. National had now been in power for eight years and were
showing signs of wear – especially as Holyoake retained Holland’s cabinet,
passing up the opportunity to signal a fresh look. Labour won, leaving
Holyoake’s few weeks as prime minister languishing as a tiny blip on the
political radar of the 1950s. But Labour’s win was narrow and they had to govern
for three years with only a one-seat majority.
As opposition leader Holyoake was donated a
large measure of ammunition by Labour’s notorious “Black Budget” and he attacked
the government relentlessly over it throughout the term. But he himself faced
opposition from leading industrialists (and some of his own ministers) over his
unwillingness to promise a more open market in the build-up to the 1960
election. The party under Holland had proudly claimed to promote individual
freedom. Nonetheless it was a forward-thinking campaign with a newly energised
Holyoake promising tax cuts and a return to voluntary unionism among other
temptations. Labour was on the ropes from the start and National won the
election handsomely. Holyoake was once again prime minister, this time elected
in his own right.
Keith Holyoake went on to win three more
elections (1963, 1966 and 1969) and became NZ’s third longest serving prime
minister. Wholesale change was never on his agenda and he maintained his “steady
does it” mantra for all three election campaigns. His economic policies remained
heavily interventionist, particularly from 1967 when Robert Muldoon took over
the finance portfolio on the death of Harry Lake. But the rosy economic
conditions changed in the late 1960s. Falling export prices, high spending and
high inflation rang warning bells. Muldoon cut subsidies, tightened bank credit,
lifted petrol prices and motor vehicle tax. Milk in schools was abolished and
the currency was devalued. But production fell and in 1968 the arbitration court
buckled to the demands of unions and employers - awarding a 5% general wage
order when it had initially proposed a nil increase. The influence of the court
lapsed to insignificance thereafter. An election promise to abandon compulsory
unionism was stillborn. Inflation spiralled. National scrambled through the1969
election on the back of vague reform promises. Following the death of
heavy-weight labour minister Tom Shand their majority was cut to four.
The four-term Holyoake era was marked by five
notable aspects. Firstly, his apparent consensus style of management. Although
government decisions appeared to be finalised only after full agreement was
reached round the cabinet table, in actual fact Holyoake was adept at managing a
discussion until his point of view prevailed. But it was done gently and never
autocratically.
Second, the liberal policies of
attorney-general Ralph Hanan. He was an oasis in the Holyoake sea of
conservatism and succeeded in persuading his cabinet colleagues to abolish
capital punishment, introduce the office of Ombudsman and create a Maori
Education Foundation and Maori Council.
Third, Britain’s entry into the European
Economic Community (EEC). Although the actual entry didn’t occur until 1973 when
Labour was in office, negotiations had begun in 1961 and there were two
unsuccessful applications (vetoed by France) in the intervening years. It was a
worrying time for New Zealand and it was minister of overseas trade Jack
Marshall who won stop-gap protection for New Zealand’s exports after protracted
negotiations with Britain and the EEC countries culminated in an agreement
signed in Luxembourg in 1971.
Fourth, the “two-China” issue at the United
Nations. A staunch supporter of Taiwan and strongly anti-communist, New Zealand
refused to vote for any UN resolutions allocating the China seat on the security
council to the People’s Republic – either they voted against or abstained. They
constantly favoured the dual representation solution. Only after relations
thawed between the PRC and New Zealand’s ally the United States in 1971 did NZ
finally support the ousting of Taiwan and its replacement by the PRC.
Finally, the Vietnam war. By 1964 the conflict
was escalating and Holyoake reluctantly responded by sending a small team of
engineers to help with reconstruction but no combat troops. Throughout 1964 and
the early months of 1965, by which time the US had begun bombing North Vietnam,
tremendous pressure was placed on New Zealand to contribute ground troops to the
conflict, by the US President Johnson, the Australian government which had sent
an infantry battalion, and diplomatic advisors in NZ and US. A two-pronged
argument was presented in favour of sending combat troops: failure to contribute
would risk alienating the US who might then have refused to come to our aid in a
crisis; and the infamous “domino” theory – if South Vietnam fell to communism,
Cambodia, Thailand, Malaysia, Australia and New Zealand could follow. The
arguments against contributing included the fact that our commitments in
Malaysia had stretched our combat capacity; the fact that Holyoake saw the war
as unwinnable and any NZ contribution would be of little effect, and the
political cost in a country divided over the issue. A compromise decision was
made to send one artillery battery (4 guns, 120 men) – an action that pleased
the Americans by giving them another flag to wave on the battlefield, and which
didn't do too much harm politically in New Zealand. National went on to win two
more elections.
But with the dramatic escalation of America’s
involvement in Vietnam it was inevitable that New Zealand would be asked to
increase its contribution which it did eventually but only after Holyoake had
procrastinated against the wishes of his more hawkish ministers including
Marshall, Hanan and defence minister Dean Eyre. By late 1967 NZ troops peaked at
546 with the addition of two infantry companies. Numbers were scaled back over
the next five years with the last two small army training teams pulled out by
the incoming Labour government at the end of 1972.
The war had been a balancing act for Holyoake.
Personally, he did not wish to send any troops. Pragmatically he was forced to
relent, incrementally, by the need to avoid being ostracised by the Americans.
Politically, he was aware that a large number of New Zealanders, particularly
those supporting National, believed that if the Vietnam war was lost New
Zealand’s security would be at risk. This left him facing the task of justifying
the government’s decision against what became a noisy protest movement in the
late 1960s. Despite his own personal feelings about New Zealand’s involvement,
he defended it deftly and there is no doubt that his handling of the Vietnam war
issue contributed to National’s election wins in 1966 and 1969.
As was noted earlier, the period of Holyoake’s
premiership coincided with enormous social change in New Zealand and throughout
the world. An additional factor in NZ was the introduction of television which
Holyoake was never comfortable with as a political medium. Through all the
changes and dramatic world events Holyoake maintained his “steady does it”
philosophy while at the same time not standing in the way of his more liberal
ministers such as Ralph Hanan and Jack Marshall. One area which was almost
revolutionised, and with Holyoake’s full support, was education – especially the
pre-school and tertiary sectors. Teacher salaries, university grants, two new
universities and large increases in university funding were among the results of
an enormous boost in education spending. Student numbers soared, requiring more
teachers. Successive ministers of education were constantly at loggerheads with
the finance minister and other spending ministers over what seemed to be an
unfair bias in favour of education funding. Holyoake stood behind his education
ministers throughout.
Although it was starting to look like Holyoake
would lead the National party for ever, caucus members were exchanging glances –
especially after their fragile win in 1969, an election which could easily have
been lost but for the campaigning of the party’s energetic and aggressive
finance minister Robert Muldoon. In the event, Holyoake’s term as prime minister
stuttered to a halt in February, 1972. Jack Marshall, backed by other ministers,
had been urging him to consider retiring as early as 1968 but he stubbornly
resisted. Inflation reached new heights in 1970 (10%). Labour won a by-election
that year and by early 1972 there were clear signs that National was unlikely to
win another term. Holyoake would have been mindful of Richard Seddon’s thirteen
year record as New Zealand’s longest serving prime minister and compared it with
his own tenure of eleven and a half years. Staying on in the hope of an unlikely
fifth term and surpassing Seddon’s record would have been a temptation. But ever
the realist, on 7 February Holyoake reluctantly passed the baton to Marshall,
placing him in a situation similar to Holyoake’s own in 1957 when Sidney Holland
stepped down just weeks before an election that was always going to be difficult
to win.
National was defeated and Labour governed from
1972 to 1975. When National returned to office Holyoake was given the courtesy
title of minister of state and in 1977 was, controversially, appointed
Governor-General – the first former PM, or indeed MP, to be elevated to the
vice-regal role, normally an apolitical appointment.
He died on 8 December, 1983.
It’s not obvious why Keith Holyoake was widely
(though not universally) popular throughout New Zealand for so long. While
jovial, cheerful and dignified, he also came across as pompous and rather dull.
Deeply conservative and personally averse to change, he managed to make the
exciting, vibrant and, initially at least, prosperous decade of the sixties seem
lethargic and boring. The welfare state inherited from Labour was left largely
intact. But he was a strong nationalist – advocating less reliance on Britain
and the US and increased economic independence. He was an extraordinarily hard
worker, physically and mentally strong, politically shrewd and a good leader
within his own caucus. He was respected internationally. While at least two of
his cabinet colleagues (Marshall and Shand) felt they could do a better job as
leader, neither ever considered a leadership challenge. Keith Holyoake’s
position as National party leader was secure, for fifteen years.