New Zealand Party - Foundation

Foundation

At the time of the New Zealand Party's foundation in 1983, the Prime Minister was Robert Muldoon. Muldoon was a strong believer in the need for state intervention in the economy, claiming that only with government involvement could New Zealand be prosperous. In accordance with his economic theories, Muldoon introduced the so-called "Think Big" program, which saw massive overseas borrowing to finance large government construction projects. Later, as New Zealand's economy declined and its deficit increased, Muldoon introduced wage and price controls.

Bob Jones, a self-made millionaire and author, strongly opposed these policies, comparing them to what he had recently observed in the Soviet bloc. In a number of newspaper opinion pieces, Jones spoke out against the government, claiming that the National Party had betrayed its principles of individual liberty and free enterprise. For example, Jones advocated a flat tax, while the top rate at the time was 66%. Jones had previously been a strong supporter of the National Party, and a personal friend of Robert Muldoon — his attacks on the government marked an end to both these associations.

Jones attracted considerable attention with his comments, and although he had not originally considered it, a number of people encouraged him to start a new political party. Jones himself believed that a new party could conceivably split the National Party's vote, bringing the government down. Jones appears to have hoped that losing an election would help to purge the National Party of "Muldoonism". Along with some of the people who had contacted him about the matter, Jones began to lay the foundations for a new organization. The party's name and motto were chosen, and its primary policies were set out.

When Muldoon heard of Jones's plans, he initially dismissed them as a hoax, saying that the rumours were a publicity stunt by Jones. These comments galvanized Jones and his supporters into action, and it was decided to officially launch the new party on 22 August. The launch, which coincided with the release of the party's manifesto, was well covered by the media, and the New Zealand Party gained considerable public recognition. Not long after it was founded, some polls showed the party with nearly twenty percent of the vote.