Arnold Nordmeyer

Shortly before the 1935 election Nordmeyer stepped down from his church position, stating an intent to contest the Oamaru seat for the Labour Party. He was elected. The 1935 election itself was a huge victory for Labour and the party's leader, Michael Joseph Savage, became the country's first Labour Prime Minister.[3]

In Parliament Nordmeyer proved to be a skilled debater but also had a somewhat troubled relationship with his party's leadership. Nordmeyer became part of the faction led by John A. Lee who criticised Savage's policies as too moderate. Gradually, however, Nordmeyer became disillusioned with Lee, alleging that Lee was egotistical and self-important. Nordmeyer later co-operated with more moderate politicians such as Walter Nash in drafting the party's social security policies. He chaired both the caucus committee and the parliamentary select committee which considered the matters in more depth. Eventually the committees recommended a scheme containing a means-tested pension, universal superannuation, and free healthcare for hospital treatments, maternity care and general practitioner consultations all to be financed via direct taxation. At Nordmeyer's insistence, the health and pensions schemes would be combined into a single measure which later became the Social Security Act 1938.[1]

After the 1938 election that Labour won resoundingly, tensions between the moderate and extreme wings of the party became worse. Nordmeyer attempted to take a position between both groups but was generally closer to Lee's camp than to the other. The year 1940 saw both the death of Savage and the expulsion from the Labour Party of Lee (a move which Nordmeyer opposed, weakly). Nordmeyer nominated Gervan McMillan, an old friend from Kurow and a supporter of Lee, as the party's new leader. McMillan, however, was defeated by Peter Fraser, Savage's chief lieutenant.

In 1941 Nordmeyer became Minister of Health. In this role, which he held until 1947, he was responsible (along with Walter Nash) for introducing state subsidies for doctor's visits. The New Zealand Branch of the British Medical Association had disagreed with the government on the process of free general practitioner consultations where they refused to accept a state fee for their services. Doctors argued that the relationship between themselves and patients was dependent on a direct payment by the patient. A compromise was eventually reached where doctors would continue to charge patients directly after which time patients could then claim a social security rebate. With this initial hurdle overcome, Nordmeyer progressed with the governments agenda over the next six years introducing further benefits for pharmaceutical prescriptions, dental care, hospital outpatients and X-ray diagnosis.[1]

From 1947 to 1949, Nordmeyer was Minister of Industries and Commerce.[4] He was charged with the administration of New Zealand's comprehensive system of import licensing controls and was an advocate for the establishment of new industries and having greater protection for local industries. By this time he came to be regarded as one of the most senior members of the government.[1]

In the 1949 election, however, Labour was defeated by the National Party under Sidney Holland. Nordmeyer himself lost his seat of Oamaru against Thomas Hayman.[5] In late 1950 Peter Fraser died and Nordmeyer was elected in the 1951 by-election as his replacement in the seat of Brooklyn. In 1954 he won the Island Bay seat, which he held until he retired in 1969.[6]

In the short period between Fraser's death and Nordmeyer's return to Parliament Walter Nash had been hastily elected leader of the Labour Party. The speed of Nash's ascent is sometimes seen as evidence that his supporters considered Nordmeyer a threat. Nordmeyer, although he had worked with Nash before, opposed Nash's appointment as he objected to Nash's leadership style and considered Nash to be both autocratic and uninspiring. In 1954 Nordmeyer began a challenge for the leadership. Although Nordmeyer gained considerable backing from certain sectors of the party, Nash enjoyed strong union support and defeated the challenge in caucus on 23 June 1954.[7]

Following the unsuccessful challenge to Nash, Nordmeyer together with Bill Anderton and Phil Connolly were called before The Labour Party National Executive and given warnings about the threat of divisiveness to the party.[8]

Nash and Nordmeyer in 1958.

When Labour won the 1957 election Nordmeyer was made Minister of Finance and was ranked third within the government.[9] A short time after taking office Nordmeyer concluded that the country was on the brink of a balance of payments crisis and decided to take strong measures in response. His first Budget (generally known as "the Black Budget") introduced a number of unpopular changes, including significant tax increases. The particularly large tax increases for alcohol and tobacco, coupled with Nordmeyer's strong religious background, created the impression that he was attempting to impose puritan-like reforms. Labour was voted out of office in the 1960 election, something that many historians blame on Nordmeyer's "Black Budget".[1]

Despite attracting considerable blame for Labour's loss of support Nordmeyer was elected to lead the Labour Party when Nash retired in 1963.[1] Future interim Prime Minister, Hugh Watt became Nordmeyer's deputy leader.[10] The memory of the "Black Budget" still haunted Nordmeyer's profile, however, and many within the party believed that it was time for "a new generation" to take control. In 1965 a group of Labour MP's formed a group known as the 'Mafia' who were dedicated to replacing Nordmeyer with Norman Kirk. This was due to some within the Labour caucus thinking Nordmeyer "out of touch" with his Members and vice versa, some considering him an autocratic loner, despite his considerable debating abilities.[11] Norman Kirk eventually emerged as the favourite candidate to succeed Nordmeyer and in a vote on 9 December 1965, Nordmeyer was defeated by 25 votes to 10.[1] A later Deputy Prime Minister of New Zealand quipped about Nordmeyer:[12]

... the best Prime Minister we never had.

— Michael Cullen