Gordon Coates - Coalition

Coalition

In 1931, the Labour Party withdrew its support from United, protesting about various economic measures which it regarded as hostile to workers. Coates and the Reform Party subsequently agreed to form a coalition with United, preventing a general election in which Labour might have made significant gains. United's leader, George Forbes, remained Prime Minister, but Coates and his Reform Party colleagues gained a number of significant posts. William Downie Stewart, Jr., Coates' colleague, became Minister of Finance.

In the 1931 general election the United-Reform coalition remained in power, although Labour increased its share of the vote. Economic problems persisted, however, and unemployment continued to rise. Coates quarrelled with William Downie Stewart, Jr. over the government's response, and Coates himself became Minister of Finance. The Prime Minister, George Forbes, became increasingly apathetic and disillusioned, and increasingly Coates ran the government. Talk persisted about the emotional state of Coates himself — rumours depicted him as drinking heavily.

In the 1935 general election the coalition suffered a major defeat, winning only 19 seats: Coates nearly lost Kaipara. The Labour Party, which had won 53 seats, formed its first government and Michael Joseph Savage became Prime Minister.