Opposition
The Liberals adopted a number of new policies in an attempt to win back votes, including an increase in land tax (supported by the labour movement) and the introduction of proportional representation. However, the foundation of the Labour Party in 1916 deprived the Liberals of many votes from working class areas, while the business world, concerned at Labour's rise, was uniting behind Reform's "anti-socialism" platform. The Liberal Party was accused by Labour of being a party of the elite, and by Reform of having socialist sympathies — between the two, many predicted that the Liberals would continue to decline. Several leadership changes — back to Ward in mid-1912, to William MacDonald and then Thomas Wilford in 1920, and to George Forbes in 1925 — failed to revive the party's fortunes, and in June 1926, the Liberals were overtaken as the second-largest party by Labour.
Gradually, the Liberal Party's organisation decayed to the point of collapse. In 1927, a faction of the Liberal Party formed a new organisation, which was eventually named the United Party. To the considerable surprise of most observers, including many members of the party itself, United won a considerable victory, and formed a government in 1928. Later, United would reluctantly merge with Reform to counter the Labour Party. The result of this merger, the National Party, remains prominent in New Zealand politics today.
Read more about this topic: New Zealand Liberal Party
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