Robert Muldoon
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Sir Robert David Muldoon (; 25 September 19215 August 1992) was a New Zealand politician who served as the 31st
prime minister of New Zealand The prime minister of New Zealand ( mi, Te pirimia o Aotearoa) is the head of government of New Zealand. The prime minister, Jacinda Ardern, leader of the New Zealand Labour Party, took office on 26 October 2017. The prime minister (inform ...
, from 1975 to 1984, while
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of the National Party. Serving as a corporal and sergeant in the army in the
Second World War World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, Muldoon completed his training as an accountant and returned to New Zealand as its first fully qualified
cost accountant Cost accounting is defined as "a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. It includes methods for recognizing, classifying, al ...
. He was first elected to the House of Representatives at the 1960 general election as the Member of Parliament (MP) for Tamaki, representing the National Party. In this time of political stability, Muldoon served successively as
Minister of Tourism The Minister of Tourism is the head of the governmental department that specializes in tourism, recreation and/or culture. The position exists in many different countries under several names: *Ministry of Tourism and Environment (Albania) * Minist ...
(1967),
Minister of Finance A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation. A finance minister's portfolio has a large variety of names around the world, such as "treasury", " ...
(1967–1972), and
Deputy Prime Minister A deputy prime minister or vice prime minister is, in some countries, a government minister who can take the position of acting prime minister when the prime minister is temporarily absent. The position is often likened to that of a vice president, ...
(1972). Over this time he built up an informal but solid backing amongst National's mostly rural
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faction, which he labelled "Rob's Mob"—possibly in imitation of gangs such as the
Mongrel Mob The Mongrel Mob (sometimes self-labelled as the Mighty Mongrel Mob or colloquially known as the Mob) is an organised street gang and Prison gang based in New Zealand. With a network of more than thirty chapters throughout the country and additio ...
. National were then expelled from office in
1972 Within the context of Coordinated Universal Time (UTC) it was the longest year ever, as two leap seconds were added during this 366-day year, an event which has not since been repeated. (If its start and end are defined using Solar time, me ...
, beginning the tenure of Labour Party Prime Minister
Norman Kirk Norman Eric Kirk (6 January 1923 – 31 August 1974) was a New Zealand politician who served as the 29th prime minister of New Zealand from 1972 until his sudden death in 1974. Born into poverty in Southern Canterbury, Kirk left school at ...
and ending 12 years of the Second National Government. Using his newfound connections, Muldoon was able to oust moderate party leader
Jack Marshall Sir John Ross Marshall New Zealand Army Orders 1952/405 (5 March 1912 – 30 August 1988) was a New Zealand politician of the National Party. He entered Parliament in 1946 and was first promoted to Cabinet in 1951. After spending twelve years ...
and take his place, becoming
Leader of the Opposition The Leader of the Opposition is a title traditionally held by the leader of the largest political party not in government, typical in countries utilizing the parliamentary system form of government. The leader of the opposition is typically se ...
in 1974. Through his own mixture of moderate liberalism and
protectionist Protectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. ...
right-wing populism Right-wing populism, also called national populism and right-wing nationalism, is a political ideology that combines right-wing politics and populist rhetoric and themes. Its rhetoric employs anti-elitist sentiments, opposition to the Establi ...
("counterpunching", a term he coined), and promise of a lucrative superannuation scheme, Muldoon gained widespread support quickly. The early
death of Norman Kirk On 31 August 1974, Norman Kirk, the 29th Prime Minister of New Zealand, died unexpectedly after a period of poor health. He was just 51 years old. The death led to an outpouring of grief, and damaged the New Zealand Labour Party, Labour Party so ...
severely weakened the Labour Party, and Muldoon soon led the National Party to a decisive victory in the 1975 general election. Muldoon came to power promising to lead "a Government of the ordinary
bloke ''Bloke'' is a slang term for a common man in the United Kingdom, Ireland, Australia, New Zealand and South Africa. The earliest known usage is from the early 19th century, when it was recorded as a London slang term. The word's origin is un ...
." He appointed himself Minister of Finance. Although he used populist rhetoric to rail against
elites In political and sociological theory, the elite (french: élite, from la, eligere, to select or to sort out) are a small group of powerful people who hold a disproportionate amount of wealth, privilege, political power, or skill in a group. D ...
and the political establishment, he consistently tried to centralise power under himself during his premiership. His tenure was plagued by an economic pattern of stagnation, high inflation, growing unemployment, and high external debts and borrowing. Economic policies of the Muldoon Government included national superannuation, wage and price freezes, industrial incentives, and the
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industrial projects. He reintroduced and intensified the previous government's policies of the Dawn Raids, which racially targeted Pasifika overstayers. To engage with crime, Muldoon built "unusually close relationships" with criminal gangs; he personally favoured Black Power, and he and his wife Thea met with them on several occasions. In foreign policy, Muldoon adopted an
anti-Soviet Anti-Sovietism, anti-Soviet sentiment, called by Soviet authorities ''antisovetchina'' (russian: антисоветчина), refers to persons and activities actually or allegedly aimed against the Soviet Union or government power within the ...
stance and re-emphasised New Zealand's defence commitments to the United States and Australia under the
ANZUS The Australia, New Zealand, United States Security Treaty (ANZUS or ANZUS Treaty) is a 1951 non-binding collective security agreement between Australia and New Zealand and, separately, Australia and the United States, to co-operate on military ...
pact. His refusal to stop a Springbok rugby tour of New Zealand divided the country and led to unprecedented civil disorder in 1981. Muldoon became more and more controversial as his premiership progressed; in addition to the controversy of the Springbok tour, he began a
smear campaign A smear campaign, also referred to as a smear tactic or simply a smear, is an effort to damage or call into question someone's reputation, by propounding negative propaganda. It makes use of discrediting tactics. It can be applied to individual ...
against Labour MP
Colin Moyle Colin James Moyle (born 18 July 1929) is a former politician of the New Zealand Labour Party who served as a Member of Parliament (MP) from 1963 to 1976 and again from 1981 to 1990. He was a Government minister in the Third Labour and Fourth ...
for allegedly being gay, visited
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, and once personally punched demonstrators at a protest. Muldoon led his party to two additional election victories in
1978 Events January * January 1 – Air India Flight 855, a Boeing 747 passenger jet, crashes off the coast of Bombay, killing 213. * January 5 – Bülent Ecevit, of Republican People's Party, CHP, forms the new government of Turkey (42nd go ...
and
1981 Events January * January 1 ** Greece enters the European Economic Community, predecessor of the European Union. ** Palau becomes a self-governing territory. * January 10 – Salvadoran Civil War: The FMLN launches its first major offensiv ...
, with the
first-past-the-post In a first-past-the-post electoral system (FPTP or FPP), formally called single-member plurality voting (SMP) when used in single-member districts or informally choose-one voting in contrast to ranked voting, or score voting, voters cast their ...
electoral system keeping him in power despite losing the popular vote in every election except 1975. At the 1984
snap election A snap election is an election that is called earlier than the one that has been scheduled. Generally, a snap election in a parliamentary system (the dissolution of parliament) is called to capitalize on an unusual electoral opportunity or to ...
, which Muldoon infamously called while visibly drunk, National finally suffered a significant defeat to Labour. Shortly before leaving office, amid a
constitutional crisis In political science, a constitutional crisis is a problem or conflict in the function of a government that the political constitution or other fundamental governing law is perceived to be unable to resolve. There are several variations to this d ...
, Muldoon was forced by the incoming Government to devalue the New Zealand dollar. In 1984, he was only the second Prime Minister (after
Sir Keith Holyoake Sir Keith Jacka Holyoake, (; 11 February 1904 – 8 December 1983) was the List of Prime Ministers of New Zealand, 26th prime minister of New Zealand, serving for a brief period in 1957 and then from 1960 to 1972, and also the List of Governors ...
) to receive a
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while still in office. He died in 1992; having gained their respect by engaging with them directly, the gang Black Power performed a
haka Haka (; plural ''haka'', in both Māori and English) are a variety of ceremonial performance art in Māori culture. It is often performed by a group, with vigorous movements and stamping of the feet with rhythmically shouted or chanted accompani ...
at his funeral. Departing significantly from National Party convention, Muldoon had a controversial public image. He has been called the first world leader to be so openly informal and abrasive. Described as having "run the country like a mob boss", he was willing to enact tougher and harsher policies than previous Prime Ministers. His legacy is one of recognition as being among the most preeminent Western statesmen of his generation, and an "enigma" who openly broke social norms and bullied his peers. In the 21st century, Muldoon has been recognised for having laid the footing for the likes of
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-like leaders such as
Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. Trump graduated from the Wharton School of the University of Pe ...
and
Silvio Berlusconi Silvio Berlusconi ( ; ; born 29 September 1936) is an Italian media tycoon and politician who served as Prime Minister of Italy in four governments from 1994 to 1995, 2001 to 2006 and 2008 to 2011. He was a member of the Chamber of Deputies ...
.


Early life and family

Robert David Muldoon was born in
Auckland Auckland (pronounced ) ( mi, Tāmaki Makaurau) is a large metropolitan city in the North Island of New Zealand. The List of New Zealand urban areas by population, most populous urban area in the country and the List of cities in Oceania by po ...
on 25 September 1921 to parents James Henry Muldoon and Amie Rusha Muldoon (''
née A birth name is the name of a person given upon birth. The term may be applied to the surname, the given name, or the entire name. Where births are required to be officially registered, the entire name entered onto a birth certificate or birth re ...
'' Browne). His father's family, the Muldoon (
Irish Irish may refer to: Common meanings * Someone or something of, from, or related to: ** Ireland, an island situated off the north-western coast of continental Europe ***Éire, Irish language name for the isle ** Northern Ireland, a constituent unit ...
: ''Ó Maoldúin'') family, were of
Irish Irish may refer to: Common meanings * Someone or something of, from, or related to: ** Ireland, an island situated off the north-western coast of continental Europe ***Éire, Irish language name for the isle ** Northern Ireland, a constituent unit ...
descent. At the age of five, 'Rob' Muldoon slipped while playing on the front gate, damaging his cheek and resulting in a distinctive scar. When Muldoon was aged eight, his father was admitted to
Auckland Mental Hospital Whau Lunatic Asylum (or: Lunatic Asylum at the Whau; later: Auckland Lunatic Asylum, Avondale Lunatic Asylum, Avondale Hospital, Auckland Mental Health Hospital, Oakley Hospital; Carrington Psychiatric Hospital; commonly Carrington/Oakley Hospi ...
at Point Chevalier, where he died of parenchymatous syphilis nearly 20 years later in 1946. This left Muldoon's mother to raise him on her own. During this time Muldoon came under the strong formative influence of his fiercely intelligent, iron-willed maternal grandmother Jerusha, a committed socialist. Though Muldoon never accepted her creed, he did develop under her influence a potent ambition, a consuming interest in politics, and an abiding respect for New Zealand's
welfare state A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equitabl ...
. Muldoon won a scholarship to attend
Mount Albert Grammar School Mount Albert Grammar School, commonly known as MAGS, is a co-educational state secondary school in Mount Albert in Auckland, New Zealand. It teaches students in year levels 9 to 13. , Mount Albert Grammar School is the second largest school in ...
from 1933 to 1936. He left school at age 15, finding work at
Fletcher Construction The Fletcher Construction Company Limited is a New Zealand construction company and a subsidiary of Fletcher Building. Together with Higgins Contractors Ltd it makes up the Construction division of Fletcher Building. Fletcher Construction is wid ...
and then the Auckland Electric Power Board as an arrears clerk. He studied accountancy by correspondence. In 1951 Muldoon married Thea Dale Flyger, who he had met through the Junior Nationals. The couple had three children, Barbara, Jennifer and Gavin. Lady Muldoon, who died at age 87 in 2015, was appointed a
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in the
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and made a
Companion of the Queen's Service Order The Queen's Service Order, established by royal warrant of Queen Elizabeth II on 13 March 1975, is used to recognise "valuable voluntary service to the community or meritorious and faithful services to the Crown or similar services within the pu ...
in the
1986 New Year Honours The New Year Honours 1986 were appointments by most of the Commonwealth realms of Queen Elizabeth II to various orders and honours to reward and highlight good works by citizens of those countries, and honorary ones to citizens of other countrie ...
.


Early career

Muldoon joined the
New Zealand Military Forces , image = New Zealand Army Logo.png , image_size = 175px , caption = , start_date = , country = , branch = ...
in November 1940 during the Second World War, and served in the South Pacific with 37th Battalion. He was later sent to Italy and served with the same unit ( Divisional Cavalry Regiment), as two other future National Party colleagues, Duncan MacIntyre and
Jack Marshall Sir John Ross Marshall New Zealand Army Orders 1952/405 (5 March 1912 – 30 August 1988) was a New Zealand politician of the National Party. He entered Parliament in 1946 and was first promoted to Cabinet in 1951. After spending twelve years ...
. Muldoon completed his training as an accountant, sitting his final exams to become an accountant while in Italy, from Jack Marshall's tent. He returned to New Zealand after the war as the country's first fully qualified
cost accountant Cost accounting is defined as "a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. It includes methods for recognizing, classifying, al ...
, having worked in a chartered accountancy firm in the United Kingdom for a year.


Member of Parliament

In March 1947 Muldoon joined the newly founded Mount Albert branch of the Junior Nationals, the youth wing of the conservative
New Zealand National Party The New Zealand National Party ( mi, Rōpū Nāhinara o Aotearoa), shortened to National () or the Nats, is a centre-right political party in New Zealand. It is one of two major parties that dominate contemporary New Zealand politics, alongside ...
. He quickly became active in the party, making two sacrificial-lamb bids for Parliament against entrenched but vulnerable
Labour Labour or labor may refer to: * Childbirth, the delivery of a baby * Labour (human activity), or work ** Manual labour, physical work ** Wage labour, a socioeconomic relationship between a worker and an employer ** Organized labour and the labour ...
incumbents in
1954 Events January * January 1 – The Soviet Union ceases to demand war reparations from West Germany. * January 3 – The Italian broadcaster RAI officially begins transmitting. * January 7 – Georgetown-IBM experiment: The fir ...
( Mount Albert) and
1957 1957 ( MCMLVII) was a common year starting on Tuesday of the Gregorian calendar, the 1957th year of the Common Era (CE) and ''Anno Domini'' (AD) designations, the 957th year of the 2nd millennium, the 57th year of the 20th century, and the 8th y ...
( Waitemata). But in
1960 It is also known as the "Year of Africa" because of major events—particularly the independence of seventeen African nations—that focused global attention on the continent and intensified feelings of Pan-Africanism. Events January * Ja ...
he won election as MP for the suburban Auckland electorate of Tamaki, winning against
Bob Tizard Robert James Tizard (7 June 1924 – 28 January 2016) was a Labour politician from New Zealand. He served as the sixth deputy prime minister, the minister of Finance, minister of Health and minister of Defence. Biography Early life and career ...
, who had taken the former National seat in 1957. In
1960 It is also known as the "Year of Africa" because of major events—particularly the independence of seventeen African nations—that focused global attention on the continent and intensified feelings of Pan-Africanism. Events January * Ja ...
, an electoral swing brought
Keith Holyoake Sir Keith Jacka Holyoake, (; 11 February 1904 – 8 December 1983) was the 26th prime minister of New Zealand, serving for a brief period in 1957 and then from 1960 to 1972, and also the 13th governor-general of New Zealand, serving from 1977 ...
back to power as Prime Minister of the Second National Government. Muldoon would represent the Tamaki constituency for the next 32 years. Muldoon, along with Duncan MacIntyre and Peter Gordon who entered parliament in the same year, became known as the "Young Turks" (a common nickname for a group of young rebels) because of their criticism of the party's senior leadership. From his early years as an MP, Muldoon became known as ''Piggy''; the
epithet An epithet (, ), also byname, is a descriptive term (word or phrase) known for accompanying or occurring in place of a name and having entered common usage. It has various shades of meaning when applied to seemingly real or fictitious people, di ...
that would remain with him throughout his life even amongst those who were his supporters. Muldoon himself seemed to relish his controversial public profile. Muldoon opposed both abortion and capital punishment. In 1961 he was one of ten National MPs to cross the floor and vote with the Opposition to remove
capital punishment Capital punishment, also known as the death penalty, is the state-sanctioned practice of deliberately killing a person as a punishment for an actual or supposed crime, usually following an authorized, rule-governed process to conclude that t ...
for murder from the Crimes Bill that the Second National Government had introduced. In 1977 he voted against the
Contraception, Sterilisation, and Abortion Act 1977 Contraception, Sterilisation, and Abortion Act 1977, also known as the CS&A Act 1977, is an Act of Parliament in New Zealand. It was passed shortly following an inquiry by the Royal Commission on Contraception, Sterilisation and Abortion. The ...
when the issue also came up as a conscience vote. Muldoon was appointed in 1961 to the Public Accounts Committee, which in 1962 became the Public Expenditure Committee. He was well informed on all aspects of the government, and could participate in many debates in Parliament.


Entry into Cabinet

Muldoon displayed a flair for debate and a diligence in his backbench work. Following the re-election of Holyoake's government at the 1963 general election, Muldoon was appointed as Under-Secretary to the
Minister of Finance A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation. A finance minister's portfolio has a large variety of names around the world, such as "treasury", " ...
,
Harry Lake Harry Robson Lake (29 September 1911 – 21 February 1967) was a New Zealand politician who served as Minister of Finance for six years in the second National government in the 1960s. He died of a heart attack when only 55 years old. Biograph ...
. While holding this office, he took responsibility for the successful introduction of
decimal currency Decimalisation or decimalization (see spelling differences) is the conversion of a system of currency or of weights and measures to units related by powers of 10. Most countries have decimalised their currencies, converting them from non-decimal ...
into New Zealand. Initially there was some controversy over the design of the new coins and notes of the
New Zealand dollar The New Zealand dollar ( mi, tāra o Aotearoa; sign: $, NZ$; code: NZD) is the official currency and legal tender of New Zealand, the Cook Islands, Niue, the Ross Dependency, Tokelau, and a British territory, the Pitcairn Islands. Within New ...
, but the issues were overcome in time for the new currency's introduction in July 1967.


Minister of Finance

The Holyoake government was again re-elected at the 1966 general election. However, Muldoon was passed over as a new Cabinet minister following the election, with fellow Young Turks Duncan MacIntyre and Peter Gordon appointed ahead of him. Holyoake appointed Muldoon as
Minister of Tourism The Minister of Tourism is the head of the governmental department that specializes in tourism, recreation and/or culture. The position exists in many different countries under several names: *Ministry of Tourism and Environment (Albania) * Minist ...
and Associate Minister of Finance 3 months later. When Harry Lake died suddenly of a heart attack in February 1967 (only days after Muldoon had joined the Cabinet), Prime Minister
Keith Holyoake Sir Keith Jacka Holyoake, (; 11 February 1904 – 8 December 1983) was the 26th prime minister of New Zealand, serving for a brief period in 1957 and then from 1960 to 1972, and also the 13th governor-general of New Zealand, serving from 1977 ...
appointed Muldoon over
Tom Shand Thomas Philip Shand (16 April 1911 – 11 December 1969) was a New Zealand politician of the National Party. Biography Early life and career Shand was born in 1911 in Ngapara, North Otago. His parents were Gilbert Esme Tressillian Shand and Con ...
(who himself died unexpectedly in December 1969) and Jack Marshall who had declined the post. Muldoon was to remain Minister of Finance for 14 of the next 17 years; at 45, he became the youngest Minister of Finance since the 1890s. At the time there was a serious economic crisis due to a down-turn in the price of wool. In response to this crisis, Muldoon introduced mini-budgets instead of annual budgets, the first being presented on 4 May 1967. He cut and held public expenditure and increased indirect taxes to reduce demand. As a result, Muldoon was credited with the better economic performance New Zealand enjoyed, raising his profile among the public. Muldoon established a considerable national profile rapidly; Holyoake would later credit his image, rather than that of his deputy,
Jack Marshall Sir John Ross Marshall New Zealand Army Orders 1952/405 (5 March 1912 – 30 August 1988) was a New Zealand politician of the National Party. He entered Parliament in 1946 and was first promoted to Cabinet in 1951. After spending twelve years ...
, for the National Party's surprise victory in the 1969 election. He displayed a flair for the newly introduced medium of television (broadcasts began in New Zealand in 1960).


Deputy Prime Minister

When Holyoake stood down in 1972, Muldoon challenged Marshall for the top job; he lost by a narrow margin, but won unanimous election as deputy leader of the National Party and hence
Deputy Prime Minister A deputy prime minister or vice prime minister is, in some countries, a government minister who can take the position of acting prime minister when the prime minister is temporarily absent. The position is often likened to that of a vice president, ...
. Marshall fought the 1972 election on a slogan of "Man For Man, The Strongest Team" – an allusion to Marshall's own low-key style, particularly compared to his deputy. Muldoon commented on Labour's election promises with "They can’t promise anything because I've spent it all".
Labour Labour or labor may refer to: * Childbirth, the delivery of a baby * Labour (human activity), or work ** Manual labour, physical work ** Wage labour, a socioeconomic relationship between a worker and an employer ** Organized labour and the labour ...
, led by the charismatic
Norman Kirk Norman Eric Kirk (6 January 1923 – 31 August 1974) was a New Zealand politician who served as the 29th prime minister of New Zealand from 1972 until his sudden death in 1974. Born into poverty in Southern Canterbury, Kirk left school at ...
, was swept into office, ending 12 years in
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for National.


Leader of the Opposition

Many members of the party caucus regarded Marshall as not up to the task of taking on the formidable new Prime Minister Norman Kirk. Partly due to this, Marshall resigned, and Muldoon took over, becoming
Leader of the Opposition The Leader of the Opposition is a title traditionally held by the leader of the largest political party not in government, typical in countries utilizing the parliamentary system form of government. The leader of the opposition is typically se ...
on 9 July 1974. A day later, Muldoon's first autobiography, ''The Rise and Fall of a Young Turk'', was published. The book was to be reprinted four times and sell 28,000 copies. Muldoon mastered television and packed public meetings with loyal supporters dubbed "Rob's Mob", who included many
blue collar A blue-collar worker is a working class person who performs manual labor. Blue-collar work may involve skilled or unskilled labor. The type of work may involving manufacturing, warehousing, mining, excavation, electricity generation and powe ...
conservatives. Muldoon relished the opportunity to match up against Kirk – but had it for only a short time, until Kirk's sudden unexpected death on 31 August 1974. Kirk was replaced as Prime Minister by
Bill Rowling Sir Wallace Edward Rowling (; 15 November 1927 – 31 October 1995), commonly known as Bill Rowling, was a New Zealand politician who was the 30th prime minister of New Zealand from 1974 to 1975. He held office as the parliamentary leader of t ...
shortly afterwards. In the 1975 election, National ran on a platform of "New Zealand – The Way You Want It", a slogan Muldoon came up with himself, promising a generous national superannuation scheme to replace Kirk and Rowling's employer-contribution superannuation scheme (which the famous "Dancing Cossack" television advertisement implied would turn New Zealand into a communist state), and undertaking to fix New Zealand's "shattered economy". Labour responded with a campaign called
Citizens for Rowling The Citizens for Rowling campaign was a failed campaign to stop Robert Muldoon winning the 1975 New Zealand election. It was named after then Labour Prime Minister Bill Rowling in the lead-up to the 1975 general election. Members of the campaig ...
, described by Muldoon as "not even a thinly disguised" attack on himself. Muldoon overwhelmed Rowling, reversing the 32–55 Labour majority to a 55–32 National majority.


Prime Minister


First term: 1975–1978

Muldoon was sworn in as New Zealand's 31st Prime Minister on 12 December 1975, at the age of 54. A
populist Populism refers to a range of political stances that emphasize the idea of "the people" and often juxtapose this group against " the elite". It is frequently associated with anti-establishment and anti-political sentiment. The term developed ...
, he promised to lead "a Government of the ordinary bloke." His government immediately faced problems with the economy; a
recession In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...
from June 1976 to March 1978 caused New Zealand's economy to shrink 4.1% and unemployment to rise 125%.


Superannuation and Fitzgerald v. Muldoon

One of Muldoon's first actions was to issue a press release stating that he would advise the
Governor-General Governor-general (plural ''governors-general''), or governor general (plural ''governors general''), is the title of an office-holder. In the context of governors-general and former British colonies, governors-general are appointed as viceroy t ...
to abolish Labour's superannuation scheme without new legislation. Muldoon felt that the dissolution would be immediate, and he would later introduce a bill in parliament to retroactively make the abolition legal. The
Bill of Rights 1689 The Bill of Rights 1689 is an Act of the Parliament of England, which sets out certain basic civil rights and clarifies who would be next to inherit the Crown, and is seen as a crucial landmark in English constitutional law. It received Royal ...
was then invoked in the case of '' Fitzgerald v Muldoon and Others'', The Chief Justice, Sir Richard Wild, declared that Muldoon's actions were illegal as they had violated Article 1 of the Bill of Rights, which provides "that the pretended power of dispensing with laws or the execution of laws by regal authority...is illegal." Ultimately Muldoon, as a member of the executive branch, was acting beyond his prescribed powers, as only parliament has the power to make and unmake laws. Therefore, Muldoon's actions were not only illegal, but unconstitutional, as they violated the rule of law and the sovereignty of parliament. This is incapsulated in Sir Richard Wild's judgment, in which he stated that "The Act of Parliament in force required that those deductions and contributions must be made, yet here was the Prime Minister announcing that they need not be made. I am bound to hold that in so doing he was purporting to suspend the law without consent of Parliament. Parliament had made the law. Therefore the law could be amended or suspended only by Parliament or with the authority of Parliament." Economics correspondent Brian Gaynor has claimed that Muldoon's policy of reversing Labour's saving scheme cost him a chance to transform the New Zealand economy. The National superannuation scheme was one of Muldoon's 1975 election promises: it was described as a "generous" policy, and was effective in realigning Muldoon's support from elderly voters. However, the high cost of the scheme had an immense impact on the budget; Margaret McClure determined that the scheme's superannuation was substantially higher than that of similar policies elsewhere in the world. The United States' superannuation for a married couple was effectively 49% of the average wage rate, and 40% in Australia and 38% in Britain; however, New Zealand's was set at 80%. Therefore, by 1981 the spending on this scheme had doubled, and made up 17.3% of the government's budget. This resulted in other social policy programs, particularly education, being deprived of funds during this period. Justice
Stephen Kós John Stephen Kós (born 23 January 1959) is a New Zealand judge on the Supreme Court of New Zealand and the former President of the Court of Appeal of New Zealand. Early life and career The son of a Hungarian refugee, Kós was born in Mosgiel ...
has also stated that the "increase, without contribution, was utterly unsustainable."


Economic challenges

Muldoon's government inherited a number of economic and social challenges. During the late 1960s and early 1970s, New Zealand's economy had significantly declined due to several international developments: a decline in international wool prices in 1966, Britain joining the
European Economic Community The European Economic Community (EEC) was a regional organization created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisb ...
in 1973 (which deprived New Zealand of its formerly most important export market), and the
1973 oil crisis The 1973 oil crisis or first oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Exporting Countries (OAPEC), led by Saudi Arabia, proclaimed an oil embargo. The embargo was targeted at nations that had supp ...
. The "Muldoon Years" were to feature Muldoon's obstinate and resourceful attempts to maintain New Zealand's "cradle to the grave"
welfare state A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equitabl ...
, dating from 1935, in the face of a changing world. Muldoon had remained National's Finance spokesman when he became party leader, and as a result became his own Minister of Finance when National won power in 1975—thus concentrating enormous power in his hands. He is the last to hold both posts . In his first term (1975–1978) Muldoon focused on reducing expenditure, but struggled with the growing cost of his own superannuation scheme, partly due to the many tax rebates and exemptions he passed for lower income earners. By March 1978 the economy was growing again, but unemployment and inflation remained high.


The Dawn Raids

Robert Muldoon continued his Labour predecessor Prime Minister
Norman Kirk Norman Eric Kirk (6 January 1923 – 31 August 1974) was a New Zealand politician who served as the 29th prime minister of New Zealand from 1972 until his sudden death in 1974. Born into poverty in Southern Canterbury, Kirk left school at ...
's policy of arresting and deporting
Pacific Islander Pacific Islanders, Pasifika, Pasefika, or rarely Pacificers are the peoples of the list of islands in the Pacific Ocean, Pacific Islands. As an ethnic group, ethnic/race (human categorization), racial term, it is used to describe the original p ...
overstayers which had begun in 1974. Since the 1950s, the New Zealand government had encouraged substantial emigration from several Pacific countries including
Samoa Samoa, officially the Independent State of Samoa; sm, Sāmoa, and until 1997 known as Western Samoa, is a Polynesian island country consisting of two main islands (Savai'i and Upolu); two smaller, inhabited islands (Manono Island, Manono an ...
,
Tonga Tonga (, ; ), officially the Kingdom of Tonga ( to, Puleʻanga Fakatuʻi ʻo Tonga), is a Polynesian country and archipelago. The country has 171 islands – of which 45 are inhabited. Its total surface area is about , scattered over in ...
, and
Fiji Fiji ( , ,; fj, Viti, ; Fiji Hindi: फ़िजी, ''Fijī''), officially the Republic of Fiji, is an island country in Melanesia, part of Oceania in the South Pacific Ocean. It lies about north-northeast of New Zealand. Fiji consists ...
to fill a labour shortage caused by the post–war economic boom. Consequently, the Pacific Islander population in New Zealand had grown to 45,413 by 1971, with a substantial number overstaying their visas. The economic crisis of the early 1970s led to increased crime, unemployment and other social ailments, which disproportionately affected the Pacific Islander community. In July 1974, Muldoon as opposition leader had promised to cut immigration and to "get tough" on law and order issues. He claimed that the Labour government's immigration policies had contributed to the economic recession and undermined the "New Zealand way of life" by causing a housing shortage. During the 1975 general elections, the National Party had played a controversial electoral advertisement that was later criticized for stoking negative racial sentiments about Polynesian migrants. Muldoon's government accelerated and increased the Kirk government's police raids against Pacific overstayers. These operations involved special police squads conducting dawn raids on the homes of overstayers throughout New Zealand. Overstayers and their families were usually deported to their countries of origin. The Dawn Raids were widely condemned by various sections of New Zealand society, including the Pacific Islander and
Māori Māori or Maori can refer to: Relating to the Māori people * Māori people of New Zealand, or members of that group * Māori language, the language of the Māori people of New Zealand * Māori culture * Cook Islanders, the Māori people of the C ...
communities, church groups, employers and workers' unions, anti-racist groups, and the opposition Labour Party. The raids were also criticized by elements of the
New Zealand Police The New Zealand Police ( mi, Ngā Pirihimana o Aotearoa) is the national police service and principal law enforcement agency of New Zealand, responsible for preventing crime, enhancing public safety, bringing offenders to justice, and maintai ...
and the ruling National Party for damaging relations with the Pacific Islander community. At the time, Pacific Islanders comprised only one third of the overstayers (who were primarily from the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
,
Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
, and
South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
), but made up 86% of those arrested and prosecuted for overstaying. The Muldoon government's treatment of overstayers also damaged relations with Pacific countries like Samoa and Tonga, and generated criticism from the South Pacific Forum. By 1979, the Muldoon government terminated the Dawn Raids, concluding that they had failed to alleviate the economic problems.


Moyle Affair

Muldoon, in Parliament, accused opposition MP and former Cabinet minister
Colin Moyle Colin James Moyle (born 18 July 1929) is a former politician of the New Zealand Labour Party who served as a Member of Parliament (MP) from 1963 to 1976 and again from 1981 to 1990. He was a Government minister in the Third Labour and Fourth ...
in November 1976 of having been questioned by the police on suspicion of homosexual activities a year earlier. Homosexual activity between men was illegal in New Zealand at the time. After changing his story several times, Moyle resigned from Parliament. He later said that he had not been obliged to resign, but had done so because "the whole thing just made me sick". It has been suggested that Muldoon saw him as a leadership threat and acted accordingly. In a 1990 interview, Moyle said that the scandal had made him a "sadder and wiser person". Ironically, the subsequent was won by
David Lange David Russell Lange ( ; 4 August 1942 – 13 August 2005) was a New Zealand politician who served as the 32nd prime minister of New Zealand from 1984 to 1989. Lange was born and brought up in Otahuhu, the son of a medical doctor. He became ...
, and the attention that this got him helped propel Lange to the leadership of the Labour Party and his landslide victory over Muldoon in the 1984 election.


Appointment of Holyoake as Governor-General

As Prime Minister, Muldoon had the sole right to advise
Queen Elizabeth II Elizabeth II (Elizabeth Alexandra Mary; 21 April 1926 – 8 September 2022) was Queen of the United Kingdom and other Commonwealth realms from 6 February 1952 until Death and state funeral of Elizabeth II, her death in 2022. She was queen ...
on whom to appoint as Governor-General. With the term of Sir
Denis Blundell Sir Edward Denis Blundell, (29 May 1907 – 24 September 1984) was a New Zealand lawyer, cricketer and diplomat who served as the 12th Governor-General of New Zealand from 1972 to 1977. Early life and family Denis Blundell was born in W ...
as Governor-General coming to an end in 1977, a new appointee was needed. Muldoon sent a message to the Queen on 15 December 1976 putting forward former Prime Minister Sir Keith Holyoake as his appointee, which the Queen approved. The announcement was made by the Queen at the end of her tour of New Zealand on 7 March 1977, from the Royal Yacht
HMY Britannia Her Majesty's Yacht ''Britannia'', also known as the Royal Yacht ''Britannia'', is the former royal yacht of the British monarchy. She was in service from 1954 until 1997. She was the 83rd such vessel since King Charles II acceded to the thr ...
in
Lyttelton Harbour Lyttelton Harbour / Whakaraupō is one of two major inlets in Banks Peninsula, on the coast of Canterbury, New Zealand; the other is Akaroa Harbour on the southern coast. It enters from the northern coast of the peninsula, heading in a pred ...
. This choice was controversial because Holyoake was a sitting Cabinet minister. Both opponents and supporters of Muldoon's government claimed that it was a political appointment; a number of National MPs, including his deputy, disagreed with the precedent of having a politician as Governor-General. The Leader of the Opposition, Bill Rowling complained that he had not been consulted on the appointment, and then stated that he would act to remove Holyoake as Governor-General should the Labour Party win the 1978 general election. As a result of the appointment, Holyoake resigned from Parliament, resulting in the Pahiatua by-election of 1977. He was succeeded in his seat by
John Falloon John Howard Falloon (17 February 1942 – 4 October 2005) was a New Zealand politician. He was an MP from 1977 to 1996, representing the New Zealand National Party, National Party in the Pahiatua (New Zealand electorate), Pahiatua electorate. ...
.


1978 election

A month before the general election Muldoon remained the preferred Prime Minister, though his support slipped from 60% to 48% while Rowling's rose 8 points to 38%. At the election, held on 25 November, National lost three seats and it dropped 7.9 percentage points in the vote. Although the party had been returned to office with a majority of seats, it had lost the popular vote to a resurgent Labour Party. National Party President
George Chapman George Chapman (Hitchin, Hertfordshire, – London, 12 May 1634) was an English dramatist, translator and poet. He was a classical scholar whose work shows the influence of Stoicism. Chapman has been speculated to be the Rival Poet of Shak ...
argued National struggled at the election because of the many boundary changes and issues with the electoral roll, contrary to Muldoon's claims that the media going against National had caused the decline in support.


Second term: 1978–1981


Taxation

Muldoon initially opposed indirect consumer taxation on the basis that it would penalise poor people and increase inflation due to compensatory wage increases. However, in May 1979 he attempted to increase tax revenue by levying 10% to 20% taxes on a wide range of goods, including petrol, lawnmowers, caravans and boats. The taxes were criticised for being discriminatory, ineffective, and a "quick fix" that precluded necessary fundamental reform of the taxation system (as there were no income tax cuts to reflect the shift to indirect taxation). The boat and caravan levies, in particular, crippled both industries, as potential buyers could not afford the 20% tax on top of the construction costs, resulting in additional unemployment as workers were laid off.


Communism and the Soviet Union

As with other conservative governments during the
Cold War The Cold War is a term commonly used to refer to a period of geopolitical tension between the United States and the Soviet Union and their respective allies, the Western Bloc and the Eastern Bloc. The term '' cold war'' is used because the ...
, Muldoon adopted an anti-Soviet stance. As a long-time National Party activist, Muldoon rejected
Communism Communism (from Latin la, communis, lit=common, universal, label=none) is a far-left sociopolitical, philosophical, and economic ideology and current within the socialist movement whose goal is the establishment of a communist society, a s ...
as an "alien" collectivist philosophy. During the television programme ''Gallery'' in the later 1960s, he also rebuked left-leaning clergymen who had criticised
apartheid in South Africa Apartheid (, especially South African English: , ; , "aparthood") was a system of institutionalised racial segregation that existed in South Africa and South West Africa (now Namibia) from 1948 to the early 1990s. Apartheid was ...
for failing to oppose Soviet communism. Muldoon was critical of Communist influence in New Zealand's trade union movement. He also viewed the
Moscow Moscow ( , US chiefly ; rus, links=no, Москва, r=Moskva, p=mɐskˈva, a=Москва.ogg) is the capital and largest city of Russia. The city stands on the Moskva River in Central Russia, with a population estimated at 13.0 million ...
-aligned Socialist Unity Party (SUP), a break-away faction from the
Communist Party of New Zealand The Communist Party of New Zealand (CPNZ) was a communist party in New Zealand which existed from 1921 to 1994. Although spurred to life by events in Soviet Russia in the aftermath of World War I, the party had roots in pre-existing revolutiona ...
, as a Soviet
fifth column A fifth column is any group of people who undermine a larger group or nation from within, usually in favor of an enemy group or another nation. According to Harris Mylonas and Scott Radnitz, "fifth columns" are “domestic actors who work to un ...
that was trying to subvert New Zealand and the South Pacific island states. In various speeches and press releases, he would accuse the SUP and other Communist groups of instigating strikes and organising protests against US naval visits and New Zealand's sporting contacts with South Africa. As Prime Minister, he accepted both the American and Chinese views that the
Soviet Union The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, it was nominally a federal union of fifteen national ...
was an aggressive power with hegemonic ambitions in the South Pacific. Muldoon would also join the United States
President President most commonly refers to: *President (corporate title) *President (education), a leader of a college or university *President (government title) President may also refer to: Automobiles * Nissan President, a 1966–2010 Japanese ful ...
Jimmy Carter James Earl Carter Jr. (born October 1, 1924) is an American politician who served as the 39th president of the United States from 1977 to 1981. A member of the Democratic Party (United States), Democratic Party, he previously served as th ...
and other Western leaders in condemning the
Soviet invasion of Afghanistan The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, it was nominally a federal union of fifteen national ...
in 1979 and boycotting the
1980 Summer Olympics The 1980 Summer Olympics (russian: Летние Олимпийские игры 1980, Letniye Olimpiyskiye igry 1980), officially known as the Games of the XXII Olympiad (russian: Игры XXII Олимпиады, Igry XXII Olimpiady) and commo ...
. However, his government did not participate in the US-led trade boycott against the Soviet Union because it would have hurt New Zealand's predominantly agricultural export economy. In 1980, the National government also expelled the Soviet Ambassador, Vsevolod Sofinski, for providing funding to the SUP. Despite his antagonism towards the Soviet Union and domestic Communist movements, Muldoon's government still maintained economic relations with the Soviet Union.


Arthur Allan Thomas

After
David Yallop David Anthony Yallop (27 January 1937 – 23 August 2018) was a British author who wrote chiefly about unsolved crimes. In the 1970s, he contributed scripts for a number of BBC comedy shows. In the same decade he also wrote 10 episodes for the I ...
drew Muldoon's attention to the case of Arthur Allan Thomas, twice convicted for the murders of farming couple
Harvey and Jeannette Crewe __NOTOC__ David Harvey Crewe (20 October 1941 – 17 June 1970) and Jeannette Lenore Crewe (née Demler; 6 February 1940 – 17 June 1970) were a New Zealand farming couple who were shot to death in their home around 17 June 1970. The murders ...
, Muldoon asked Robert Adams-Smith, a QC, to review the case. Adams-Smith reported 'an injustice may have been done', and Muldoon pushed through a royal pardon for Thomas. A subsequent Royal Commission of Inquiry exonerated Thomas and recommended he be paid $950,000 as compensation for the time he served.


East Coast Bays by-election

Muldoon's appointment of
Frank Gill Frank Gill may refer to: * Frank Gill (Australian footballer) (1908–1970), Australian rules footballer with Carlton * Frank Gill (footballer, born 1948), footballer for Tranmere Rovers *Frank Gill (politician) (1917–1982), New Zealand politicia ...
as New Zealand's ambassador to the United States led to a by-election in Gill's seat of
East Coast Bays East Coast Bays is a string of small suburbs that form the northernmost part of the North Shore, part of the contiguous Auckland metropolitan area in New Zealand. The suburbs line the north-east coast of the city along the shore of the Haurak ...
. Muldoon's favoured candidate was Sue Wood, at the time National's Vice President and later party President. National selected the economically liberal
Don Brash Donald Thomas Brash (born 24 September 1940) is a former New Zealand politician who was Leader of the Opposition and Leader of the New Zealand National Party from October 2003 to November 2006, and the Leader of ACT New Zealand from April to ...
, a future Governor of the
Reserve Bank of New Zealand The Reserve Bank of New Zealand (RBNZ, mi, Te Pūtea Matua) is the central bank of New Zealand. It was established in 1934 and is constituted under the Reserve Bank of New Zealand Act 1989. The governor of the Reserve Bank is responsible for N ...
and later leader of the National Party, as its candidate. Brash lost the by-election to Social Credit's
Gary Knapp Gary Thomas Knapp (born 1947) is a former New Zealand politician of the Social Credit Party (New Zealand), Social Credit Party. Political career He became Member of Parliament for in 1980 when he defeated National candidate Don Brash in ...
, a major upset and a blow for Muldoon's leadership. Muldoon blamed Brash and the party organisation for the defeat, but was strongly rebuked by the party for this stance. The loss of the by-election provided the catalyst for growing opposition within the National Party to Muldoon's leadership.


Colonels' Coup

Following the loss of the East Coast Bays by-election, Muldoon faced an abortive attempt in October–November 1980 to oust him as leader. Known as the Colonels' Coup after its originators—
Jim Bolger James Brendan Bolger ( ; born 31 May 1935) is a New Zealand retired politician of the National Party who was the 35th prime minister of New Zealand, serving from 1990 to 1997. Bolger was born to an Irish immigrant family in Ōpunake, Taran ...
,
Jim McLay Sir James Kenneth McLay (born 21 February 1945) is a New Zealand diplomat and former politician. He served as the ninth deputy prime minister of New Zealand from 15 March to 26 July 1984. McLay was also Leader of the National Party and Leader ...
and
Derek Quigley Derek Francis Quigley (born 31 January 1932) is a New Zealand former politician. He was a prominent member of the National Party during the late 1970s and early 1980s, and was known for his support of free market economics and trade liberalisa ...
—it aimed to replace Muldoon with his more economically liberal deputy,
Brian Talboys Sir Brian Edward Talboys (7 June 1921 – 3 June 2012) was a New Zealand politician who served as the seventh deputy prime minister of New Zealand for the first two terms of Robert Muldoon's premiership. If the abortive " Colonels' Coup" a ...
. Muldoon, who was overseas at the time, saw the plotters off with relative ease, especially since Talboys himself was a reluctant draftee. No other serious challenge to his leadership occurred in his years as Prime Minister until after the 1984 election.


Springbok Tour

Professing a belief that politics should not interfere with sport, Muldoon resisted pressure to bar the 1981 tour by the
Springboks The South Africa national rugby union team, commonly known as the Springboks (colloquially the Boks, Bokke or Amabokoboko), is the country's national team governed by the South African Rugby Union. The Springboks play in green and gold jersey ...
, the national
rugby union Rugby union, commonly known simply as rugby, is a close-contact team sport that originated at Rugby School in the first half of the 19th century. One of the two codes of rugby football, it is based on running with the ball in hand. In its m ...
squad of ''
apartheid Apartheid (, especially South African English: , ; , "aparthood") was a system of institutionalised racial segregation that existed in South Africa and South West Africa (now Namibia) from 1948 to the early 1990s. Apartheid was ...
''-era South Africa. By allowing "the Tour", Muldoon was accused of breaking the 1977
Gleneagles Agreement In the Gleneagles Agreement, in 1977, Commonwealth presidents and prime ministers agreed, as part of their support for the international campaign against apartheid, to discourage contact and competition between their sportsmen and sporting organi ...
(to form a common policy on sporting with South Africa amongst the
Commonwealth A commonwealth is a traditional English term for a political community founded for the common good. Historically, it has been synonymous with "republic". The noun "commonwealth", meaning "public welfare, general good or advantage", dates from the ...
, signed after the boycott of the
Montreal Olympics Montreal ( ; officially Montréal, ) is the second-most populous city in Canada and most populous city in the Canadian province of Quebec. Founded in 1642 as '' Ville-Marie'', or "City of Mary", it is named after Mount Royal, the triple-pe ...
in 1976). Muldoon noted, however, that the Gleneagles Agreement had been amended and, in an article in ''
The Times ''The Times'' is a British daily national newspaper based in London. It began in 1785 under the title ''The Daily Universal Register'', adopting its current name on 1 January 1788. ''The Times'' and its sister paper ''The Sunday Times'' (fou ...
'', that he had not broken the Gleneagles Agreement because "New Zealand and subsequently other countries made it clear that they could not subscribe to an agreement which required them to abrogate the freedoms of their sportsmen and prohibit sporting contacts". "The Tour", as it has become known, provoked massive public demonstrations and some of the worst social schisms New Zealand has ever seen. Muldoon came down firmly on the pro-Tour side, arguing that sport and politics should be kept separate. He argued that his refusal to ban the Springboks was anti-authoritarian, leaving it up to individual consciences whether to play sports with representatives of
apartheid Apartheid (, especially South African English: , ; , "aparthood") was a system of institutionalised racial segregation that existed in South Africa and South West Africa (now Namibia) from 1948 to the early 1990s. Apartheid was ...
. He also argued that allowing their rugby team to tour did not mean supporting apartheid, any more than playing a
Soviet Union The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, it was nominally a federal union of fifteen national ...
team meant supporting Communism.


Think Big

The
Iranian Revolution The Iranian Revolution ( fa, انقلاب ایران, Enqelâb-e Irân, ), also known as the Islamic Revolution ( fa, انقلاب اسلامی, Enqelâb-e Eslâmī), was a series of events that culminated in the overthrow of the Pahlavi dynas ...
had led to the second oil shock of 1979. Economic growth in New Zealand had only just begun to recover from the 1976–78 recession when the oil shock hit. Economic pressures continued to build: Muldoon tried to control spiraling increases in wages and inflation through a trade-off with the
trade-union A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits ...
leadership: a reduction in the tax rate in exchange for an agreement not to press for further rounds of wage increases, similar to
The Accord The Prices and Incomes Accord was an agreement between the Australian Council of Trade Unions and the Australian Labor Party government of Prime Minister Bob Hawke and Treasurer (later Prime Minister) Paul Keating in 1983. Employers were not par ...
reached in Australia in 1983. The Federation of Labour's President Jim Knox, who Muldoon did not get along with, refused to co-operate. In response, Muldoon introduced his Think Big strategy, in which the government borrowed heavily to invest in large-scale industrial projects, predominantly energy-related. The projects' goals were to make New Zealand more than 60% self-sufficient in energy, and to produce 425,000 jobs. The Clyde dam, which generated electricity to be used to manufacture aluminum for export, was typical of Muldoon's efforts to shelter New Zealand from the troubles of the rest of the world. This dam was described to symbolise "fortress New Zealand." The Think Big projects were a major part of Muldoon's legacy. However, when presenting the idea to the public, Muldoon vastly exaggerated their benefits. Many projects had severe budget overruns of as much as ten times their expected costs. This soon worsened the balance of payments deficit and inflation, as all of the equipment and technology used was imported. As a result of increased oil prices, a decline in New Zealand's terms of trade, and less than expected returns from the Think Big projects, Muldoon was forced to borrow more money. The already high levels of debt were not erased by Muldoon, which was a promise he made in the lead up to the 1975 election id he promise to erase the debt, or to not erase the debt? The advisability of the Think Big projects remains controversial. Concerned about the use of
foreign exchange The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all as ...
during the 1970s' oil crises, Muldoon supported a scheme to retrofit cars to use natural gas or a dual-fuel gas–petrol system. The 1979 budget introduced incentives for the conversions, and New Zealand emerged as the first country to make dual-fuel cars commonplace. However, the projected continued rise in oil prices did not transpire.


1981 election

Despite the turmoil over the Springbok Tour, Muldoon's Government won the subsequent 1981 election, held on 28 November. On the night, National won 46 seats to Labour's 44 and Social Credit's two, but a recount gave National the seat of Gisborne by 150 votes, and a majority of one. Muldoon had to be persuaded not to make the Springbok Tour an issue in the election, and the National Party's campaign instead focused on Think Big. Again, Muldoon's Government received fewer votes than the opposition Labour Party.


Third term: 1981–1984

Muldoon's third term was tumultuous. With a one-seat majority he faced an increasingly restless backbench who wanted the National Party to adopt a more economically liberal stance. Early in 1982
Derek Quigley Derek Francis Quigley (born 31 January 1932) is a New Zealand former politician. He was a prominent member of the National Party during the late 1970s and early 1980s, and was known for his support of free market economics and trade liberalisa ...
, a junior minister who had been demoted for his role in the Colonel's Coup of 1980, spoke out against Think Big, casting doubts on its benefits. As a result, Muldoon asked him to apologise or resign from Cabinet; Quigley chose to resign. Muldoon had also fallen out with former supporter and millionaire businessman Bob Jones, who made good on a threat to create his own party in protest at Muldoon's economic policies. In 1983 the
New Zealand Party The New Zealand Party operated as a political party in New Zealand from 1983 to 1993. Established by millionaire property tycoon Bob Jones (businessman), Bob Jones, the party promoted economic liberalisation—it was the first political party to ...
was formed by Jones and took a significant share of the vote at the 1984 election.


Economic recession and wage and price freeze

With Think Big failing to deliver on its promise, Muldoon imposed an
incomes policy Incomes policies in economics are economy-wide wage and price controls, most commonly instituted as a response to inflation, and usually seeking to establish wages and prices below free market level. Incomes policies have often been resorted to ...
: a freeze on wages and most prices (items excluded included fresh meat, frozen meat, items sold at auction and "women's fashion clothing other than standard lines"), interest rates and dividends across the country in April 1982. Against this he offered a "sweetener" of a tax cut which cost the New Zealand treasury approximately a billion New Zealand dollars. Ultimately the Wage and Price Freeze, which had been intended only to last for a year, remained in force for nearly two years and was repealed by the incoming Labour Government. Years later, Muldoon admitted that the freeze was a political mistake. The second recession during Muldoon's premiership hit in September 1982. New Zealand's economy contracted again by 3% and unemployment hit 5.1% by 1983, and net emigration remained high.


Falklands War

In 1982, Muldoon's government supported the British in the
Falklands War The Falklands War ( es, link=no, Guerra de las Malvinas) was a ten-week undeclared war between Argentina and the United Kingdom in 1982 over two British dependent territories in the South Atlantic: the Falkland Islands and its territorial de ...
. While New Zealand did not directly participate in the conflict, Muldoon undertook to send the frigates HMNZS ''Canterbury'' and HMNZS ''Waikato'' to the Indian Ocean to relieve Royal Navy frigates, so that they could in their turn deploy in the conflict. New Zealand also broke off its diplomatic relations with Argentina. In defence of his support for the war, Muldoon wrote an article that was published in ''
The Times ''The Times'' is a British daily national newspaper based in London. It began in 1785 under the title ''The Daily Universal Register'', adopting its current name on 1 January 1788. ''The Times'' and its sister paper ''The Sunday Times'' (fou ...
'', entitled "Why we Stand by our Mother Country":
We are a free and independent nation but in time of trouble we stand with our mother country...New Zealand's decision to break off diplomatic relations with Argentina over the Falklands, immediately after Britain had done so, was not because of Britain's support on the sporting issue. The reason goes much deeper than that. It is in the context of the statement made by a Labour Prime Minister of New Zealand in 1939: "Where Britain goes, we go." We see the Falklands as British territory and the Falklands Islanders as subjects of our Queen. We live at the end of the line and we know the feeling of isolation...With the Falklands Islands, it is family. Historically, Britain has so often on great occasions thrown up the leader that the occasion demanded. I regard Margaret Thatcher as one of the finest and straightest politicians I have ever met...In 1939 we learned the folly of appeasement. A great catastrophe was the price that was paid. The military rulers of Argentina must not be appeased. New Zealand will back Britain all the way.
In the House of Commons
Margaret Thatcher Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013) was Prime Minister of the United Kingdom from 1979 to 1990 and Leader of the Conservative Party (UK), Leader of the Conservative Party from 1975 to 1990. S ...
responded by saying that "The New Zealand Government and people have been absolutely magnificent in their support of this country, of the Falkland Islanders and of the rule of liberty and the rule of law".


Closer Economic Relations

Muldoon initiated a Closer Economic Relations (CER) free trade agreement with Australia to liberalise trade, which came into effect from New Year's Day 1982. The aim of total free trade between the two countries was achieved in 1990, five years ahead of schedule.


Nuclear ships policy and the snap election of 1984

Ultimately, the end of Muldoon's government came following a late-night clash with National backbencher
Marilyn Waring Dame Marilyn Joy Waring (born 7 October 1952) is a New Zealand public policy scholar, international development consultant, former politician, environmentalist, feminist and a principal founder of feminist economics. In 1975, aged 23, she beca ...
over highly contentious Opposition-sponsored nuclear-free New Zealand legislation, in which Waring told him she would
cross the floor In parliamentary systems, politicians are said to cross the floor if they formally change their political affiliation to a different political party than which they were initially elected under (as is the case in Canada and the United Kingdom). ...
(giving the Opposition a victory). On 14 June 1984, a visibly drunk Muldoon called a
snap election A snap election is an election that is called earlier than the one that has been scheduled. Generally, a snap election in a parliamentary system (the dissolution of parliament) is called to capitalize on an unusual electoral opportunity or to ...
for 14 July that same year; historians noted the unfortunate coincidence with
Bastille Day Bastille Day is the common name given in English-speaking countries to the national day of France, which is celebrated on 14 July each year. In French, it is formally called the (; "French National Celebration"); legally it is known as (; "t ...
. A journalist commented that a one-month election campaign would not give Muldoon much time to which Muldoon replied, audibly slurring his words, "It doesn't give my opponents much time to run up to an election, does it?". Six days before the election, a televised leader's debate was held between Muldoon and
David Lange David Russell Lange ( ; 4 August 1942 – 13 August 2005) was a New Zealand politician who served as the 32nd prime minister of New Zealand from 1984 to 1989. Lange was born and brought up in Otahuhu, the son of a medical doctor. He became ...
where Muldoon, irritated by Lange's magnanimous closing words to him, sarcastically finished the debate by saying "I love you, Mr Lange". Muldoon was heavily defeated by Lange's resurgent Labour Party, which won 56 seats to National's 37 with massive
vote splitting Vote splitting is an electoral effect in which the distribution of votes among multiple similar candidates reduces the chance of winning for any of the similar candidates, and increases the chance of winning for a dissimilar candidate. Vote spl ...
caused by the
New Zealand Party The New Zealand Party operated as a political party in New Zealand from 1983 to 1993. Established by millionaire property tycoon Bob Jones (businessman), Bob Jones, the party promoted economic liberalisation—it was the first political party to ...
in particular. Muldoon's drunkenness when announcing the election date led to it being humorously called the "
schnapps Schnapps ( or ) or schnaps is a type of alcoholic beverage that may take several forms, including distilled fruit brandies, herbal liqueurs, infusions, and "flavored liqueurs" made by adding fruit syrups, spices, or artificial flavorings to neu ...
election". It is a strong convention in New Zealand politics that a prime minister does not ask for an early election unless he or she cannot govern, or unless they need to seek the electorate's endorsement on a matter of national importance (as was the case in
1951 Events January * January 4 – Korean War: Third Battle of Seoul – Chinese and North Korean forces capture Seoul for the second time (having lost the Second Battle of Seoul in September 1950). * January 9 – The Government of the United ...
). Muldoon justified the snap election because he felt Waring's revolt impeded his ability to govern. Indeed, it was obvious that Muldoon was finding it hard to pass financial measures with
neo-liberal Neoliberalism (also neo-liberalism) is a term used to signify the late 20th century political reappearance of 19th-century ideas associated with free-market capitalism after it fell into decline following the Second World War. A prominent fa ...
rebels like
Ruth Richardson Ruth Margaret Richardson (born 13 December 1950) is a New Zealand retired politician of the National Party who served as Minister of Finance from 1990 to 1993. Her 1991 budget, which she dubbed the "Mother of all Budgets", formed the catalyst ...
and
Derek Quigley Derek Francis Quigley (born 31 January 1932) is a New Zealand former politician. He was a prominent member of the National Party during the late 1970s and early 1980s, and was known for his support of free market economics and trade liberalisa ...
voting against the Government on certain issues. However, Waring said that she would not have denied Muldoon confidence or
supply Supply may refer to: *The amount of a resource that is available **Supply (economics), the amount of a product which is available to customers **Materiel, the goods and equipment for a military unit to fulfill its mission *Supply, as in confidenc ...
. This has led historians to question Muldoon's excuse for calling a snap election, since he still would have had the constitutional means to govern.


Relationship with foreign leaders

Muldoon had several close relationships with foreign leaders, such as British Prime Minister
Margaret Thatcher Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013) was Prime Minister of the United Kingdom from 1979 to 1990 and Leader of the Conservative Party (UK), Leader of the Conservative Party from 1975 to 1990. S ...
, American President
Ronald Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician, actor, and union leader who served as the 40th president of the United States from 1981 to 1989. He also served as the 33rd governor of California from 1967 ...
, Philippine dictator
Ferdinand Marcos Ferdinand Emmanuel Edralin Marcos Sr. ( , , ; September 11, 1917 – September 28, 1989) was a Filipino politician, lawyer, dictator, and kleptocrat who was the 10th president of the Philippines from 1965 to 1986. He ruled under martial ...
, and Australian Prime Minister
Malcolm Fraser John Malcolm Fraser (; 21 May 1930 – 20 March 2015) was an Australian politician who served as the 22nd prime minister of Australia from 1975 to 1983, holding office as the leader of the Liberal Party of Australia. Fraser was raised on hi ...
. These ranged from being positive to being stricken with deep animosity. Despite both being from
conservative Conservatism is a cultural, social, and political philosophy that seeks to promote and to preserve traditional institutions, practices, and values. The central tenets of conservatism may vary in relation to the culture and civilization i ...
parties (the
Liberal Party of Australia The Liberal Party of Australia is a centre-right political party in Australia, one of the two major parties in Australian politics, along with the centre-left Australian Labor Party. It was founded in 1944 as the successor to the United Au ...
and the
New Zealand National Party The New Zealand National Party ( mi, Rōpū Nāhinara o Aotearoa), shortened to National () or the Nats, is a centre-right political party in New Zealand. It is one of two major parties that dominate contemporary New Zealand politics, alongside ...
), the relationship Muldoon had with Malcolm Fraser was unusually poor; largely due to Muldoon, they never got along. This paralleled the mutual dislike previous left-leaning Prime Ministers
Gough Whitlam Edward Gough Whitlam (11 July 191621 October 2014) was the 21st prime minister of Australia, serving from 1972 to 1975. The longest-serving federal leader of the Australian Labor Party (ALP) from 1967 to 1977, he was notable for being the he ...
(
Australian Labor Party The Australian Labor Party (ALP), also simply known as Labor, is the major centre-left political party in Australia, one of two major parties in Australian politics, along with the centre-right Liberal Party of Australia. The party forms the f ...
) and
Norman Kirk Norman Eric Kirk (6 January 1923 – 31 August 1974) was a New Zealand politician who served as the 29th prime minister of New Zealand from 1972 until his sudden death in 1974. Born into poverty in Southern Canterbury, Kirk left school at ...
(
New Zealand Labour Party The New Zealand Labour Party ( mi, Rōpū Reipa o Aotearoa), or simply Labour (), is a centre-left political party in New Zealand. The party's platform programme describes its founding principle as democratic socialism, while observers descr ...
) had for each other. Whitlam and Kirk had both become Prime Minister in 1972 after a lengthy period of conservative rule, but their governments lasted just one term. Both Fraser and Muldoon became Prime Minister in 1975, returning right-wing governance to
Australasia Australasia is a region that comprises Australia, New Zealand and some neighbouring islands in the Pacific Ocean. The term is used in a number of different contexts, including geopolitically, physiogeographically, philologically, and ecologica ...
. With their ideological preferences notwithstanding, the two men did not like each other from very early on, and grew to loathe one another to an undiplomatic degree. This was likely entirely caused, and then exacerbated, by Muldoon's animosity toward Fraser. The elder statesman, Muldoon was blatantly patronising and rude to Fraser, and even
bullied Bullying is the use of force, coercion, hurtful teasing or threat, to abuse, aggressively dominate or intimidate. The behavior is often repeated and habitual. One essential prerequisite is the perception (by the bully or by others) of an im ...
him on repetitive occasions. He also made bigoted remarks towards Australians in Fraser's company, and was known to repeatedly claim that New Zealanders migrating to Australia "raised the IQ of both countries". Muldoon often boasted to Fraser about the slow and costly process of Australia importing New Zealand goods, claiming on one occasion that New Zealand had "screwed the Aussies again" and would always get the upper hand. Even when negotiating and agreeing to Closer Economic Relations (CER), the most sweeping
free trade agreement A free-trade agreement (FTA) or treaty is an agreement according to international law to form a free-trade area between the cooperating states. There are two types of trade agreements: bilateral and multilateral. Bilateral trade agreements occur ...
between Australia and New Zealand ever signed up to that point, Muldoon and Fraser refused to engage directly. Their relationship reached a nadir in 1982, during the
Pacific Islands Forum The Pacific Islands Forum (PIF) is an inter-governmental organization that aims to enhance cooperation between countries and territories of Oceania, including formation of a trade bloc and regional peacekeeping operations. It was founded in 197 ...
in Rotorua. Both men were staying at the same hotel, with Muldoon's room directly below Fraser's. According to future Australian
Minister of Foreign Affairs A foreign affairs minister or minister of foreign affairs (less commonly minister for foreign affairs) is generally a cabinet minister in charge of a state's foreign policy and relations. The formal title of the top official varies between cou ...
Alexander Downer Alexander John Gosse Downer (born 9 September 1951) is an Australian former politician and diplomat who was leader of the Liberal Party from 1994 to 1995, Minister for Foreign Affairs from 1996 to 2007, and High Commissioner to the United King ...
, then a political aide, Fraser snapped and physically lost his temper during a late night policy meeting. Downer recalled in 2003 that the usually patient Fraser suddenly began jumping up and down and swearing loudly "in the hope that he would wake Sir Robert from his sleep, just for the sake of it". Despite Muldoon's tactless behaviour, Fraser harboured gratitude for him out of his belief that Muldoon had saved his life in 1978. According to Fraser himself, this was because Muldoon had inadvertently prevented Fraser from being killed in the 1978 Sydney Hilton Hotel bombing. The hotel was the venue for the first
Commonwealth Heads of Government Regional Meeting The Commonwealth Heads of Government Meeting (CHOGM; or) is a biennial summit meeting of the governmental leaders from all Commonwealth nations. Despite the name, the head of state may be present in the meeting instead of the head of go ...
, a regional offshoot of the biennial meetings of the heads of government from across the
Commonwealth of Nations The Commonwealth of Nations, simply referred to as the Commonwealth, is a political association of 56 member states, the vast majority of which are former territories of the British Empire. The chief institutions of the organisation are the Co ...
. Fraser recalled that Muldoon had demanded that Fraser change the meeting venue in the hotel from the front to the back, to avoid a group of young, female
reproductive rights Reproductive rights are legal rights and freedoms relating to reproduction and reproductive health that vary amongst countries around the world. The World Health Organization defines reproductive rights as follows: Reproductive rights rest on t ...
protestors. They had travelled especially from New Zealand for the event, to demonstrate against Muldoon's refusal to legalise abortion. Fraser, likely considering how Muldoon had physically attacked political demonstrators before, understood that giving him a hostile welcome would be a poor decision. Arguing that it would not look good and could likely provoke New Zealand, he agreed to move the meeting place to the back entrance. Doing so moved Fraser, other leaders and the media away from the original entrance, where that night, a bomb exploded in a bin that was being emptied, killing two rubbish collectors and a policeman. Malcolm Fraser and others theorised that the bomb was planted out the front to assassinate Indian Prime Minister
Morarji Desai Morarji Ranchhodji Desai (29 February 1896 – 10 April 1995) was an Indian independence activist and politician who served as the 4th Prime Minister of India between 1977 to 1979 leading the government formed by the Janata Party. During his ...
(although this was never proven) and that if he had walked down to greet Desai as he exited his vehicle at the original entry point, the bomb would likely have been triggered, exploding and killing them both. He later told ''
The Australian ''The Australian'', with its Saturday edition, ''The Weekend Australian'', is a broadsheet newspaper published by News Corp Australia since 14 July 1964.Bruns, Axel. "3.1. The active audience: Transforming journalism from gatekeeping to gatew ...
'' in 2009: "I really believe to this day that, in a weird way, Morarji Desai and I probably owe our lives to Robert Muldoon." Despite Fraser's unwilling gratitude to Muldoon, the two men seemed to dislike each other so much by 1983 that when the time came to ratify CER, they refused to do it together. Instead, the deal was signed by the
Deputy Prime Minister of Australia The deputy prime minister of Australia is the deputy chief executive and the second highest ranking officer of the Australian Government. The office of deputy prime minister was officially created as a ministerial portfolio in 1968, althoug ...
and Minister for Trade,
Lionel Bowen Lionel Frost Bowen, AC (28 December 1922 – 1 April 2012) was an Australian politician and senior Labor Party figure, serving in the ministries of Gough Whitlam and Bob Hawke. He was Deputy Prime Minister of Australia from 1983 to 199 ...
and the New Zealand High Commissioner to Australia,
Laurie Francis Sir Laurie Justice Francis (30 August 1918 – 3 August 1993) was a New Zealand lawyer and diplomat. He served as the New Zealand High Commissioner to Australia from 1976 to 1984. Biography Born in Oamaru on 30 August 1918, Francis was educate ...
.


Foreign exchange and constitutional crises

A final controversy occurred during the course of the election and transfer of government: during early 1984
Roderick Deane Sir Roderick Sheldon Deane (born 8 April 1941) is a New Zealand economist, public sector reformer, and businessman. He served as deputy governor of the Reserve Bank of New Zealand, and as CEO and chairman of the country's largest telecommunic ...
, then Deputy Governor of the
Reserve Bank of New Zealand The Reserve Bank of New Zealand (RBNZ, mi, Te Pūtea Matua) is the central bank of New Zealand. It was established in 1934 and is constituted under the Reserve Bank of New Zealand Act 1989. The governor of the Reserve Bank is responsible for N ...
, became concerned that the
New Zealand dollar The New Zealand dollar ( mi, tāra o Aotearoa; sign: $, NZ$; code: NZD) is the official currency and legal tender of New Zealand, the Cook Islands, Niue, the Ross Dependency, Tokelau, and a British territory, the Pitcairn Islands. Within New ...
(which had a fixed exchange-rate to the US dollar) had become significantly overvalued and was vulnerable to currency speculation on the financial markets in the event of a "significant political event". This was exacerbated by media speculation following a leak that an incoming Labour administration would be likely to significantly devalue the NZ dollar upon election. The Reserve Bank counselled Muldoon that the dollar should be devalued. Muldoon ignored the advice, owing to his belief that it would hurt poor New Zealanders in the medium term, and in June 1984 announced the snap election mentioned above which, as predicted, caused an immediate run on the dollar. Following the election the controversy became a
constitutional crisis In political science, a constitutional crisis is a problem or conflict in the function of a government that the political constitution or other fundamental governing law is perceived to be unable to resolve. There are several variations to this d ...
: Muldoon refused to do as the incoming government instructed, causing the currency crisis to worsen. Eventually he relented however, after his position as leader of the National party was threatened by members of his caucus. After nine years, Muldoon's stewardship of the nation and its economy ceased. The newly elected neo-liberal and unexpectedly pro-free market Fourth Labour Government embarked on a series of fundamental free-market reforms known (after Labour's finance minister
Roger Douglas Sir Roger Owen Douglas (born 5 December 1937) is a retired New Zealand politician who served as a minister in two Labour governments. He became arguably best known for his prominent role in New Zealand's radical economic restructuring in the 198 ...
) as
Rogernomics In February 1985, journalists at the ''New Zealand Listener'' coined the term Rogernomics, a portmanteau of "Roger" and "economics" (by analogy with "Reaganomics"), to describe the neoliberal economic policies followed by Roger Douglas. Douglas ...
, and which were then continued from 1990–94 by the succeeding National government's policies known as (after National's finance minister
Ruth Richardson Ruth Margaret Richardson (born 13 December 1950) is a New Zealand retired politician of the National Party who served as Minister of Finance from 1990 to 1993. Her 1991 budget, which she dubbed the "Mother of all Budgets", formed the catalyst ...
) as
Ruthanasia Ruthanasia, a portmanteau of "Ruth" and "euthanasia", is the pejorative name (typically used by opponents) given to the period of free-market policies conducted during the first term of the fourth National government in New Zealand, from 1990 t ...
, which marked a fundamental break with the more interventionist policies of Muldoon's era.


Honours

Muldoon was appointed an Additional Member of the Order of the Companions of Honour in the 1977 Queen's Silver Jubilee and Birthday Honours, and a
Knight Grand Cross of the Order of St Michael and St George The Most Distinguished Order of Saint Michael and Saint George is a British order of chivalry founded on 28 April 1818 by George IV, Prince of Wales, while he was acting as prince regent for his father, King George III. It is named in honour ...
in the 1984 New Year Honours. He was only the second New Zealand Prime Minister (after Sir
Keith Holyoake Sir Keith Jacka Holyoake, (; 11 February 1904 – 8 December 1983) was the 26th prime minister of New Zealand, serving for a brief period in 1957 and then from 1960 to 1972, and also the 13th governor-general of New Zealand, serving from 1977 ...
) to receive a knighthood while still in office.


Later life

Muldoon was deposed as National leader shortly after the election by his deputy,
Jim McLay Sir James Kenneth McLay (born 21 February 1945) is a New Zealand diplomat and former politician. He served as the ninth deputy prime minister of New Zealand from 15 March to 26 July 1984. McLay was also Leader of the National Party and Leader ...
. After being defeated in the ballot Muldoon was asked whether he was going to be a thorn in McLay's side, to which he replied "More like a little prick." He refused McLay's offer of a front bench post, instead opting to return to the backbench for the first time in over two decades. However, he continued to openly agitate against McLay, refusing to withdraw into an "elder statesman" role as McLay wanted. The relationship between the two bottomed out when Muldoon criticised the entire party leadership, forcing McLay to demote him to the lowest rank in the National caucus. Muldoon continued to undermine McLay until 1986, when McLay was ousted in turn by his own deputy (and Muldoon's preferred candidate),
Jim Bolger James Brendan Bolger ( ; born 31 May 1935) is a New Zealand retired politician of the National Party who was the 35th prime minister of New Zealand, serving from 1990 to 1997. Bolger was born to an Irish immigrant family in Ōpunake, Taran ...
, who had served as Minister of Labour for the latter half of Muldoon's term as Prime Minister. Bolger returned Muldoon to the front bench as spokesperson for Foreign Affairs, pitting him directly against Prime Minister
David Lange David Russell Lange ( ; 4 August 1942 – 13 August 2005) was a New Zealand politician who served as the 32nd prime minister of New Zealand from 1984 to 1989. Lange was born and brought up in Otahuhu, the son of a medical doctor. He became ...
. Muldoon remained as the MP for Tamaki until shortly before his death. He lived through the
Fourth Labour Government The Fourth Labour Government of New Zealand governed New Zealand from 26 July 1984 to 2 November 1990. It was the first Labour government to win a second consecutive term since the First Labour Government of 1935 to 1949. The policy agenda o ...
's
neo-liberal Neoliberalism (also neo-liberalism) is a term used to signify the late 20th century political reappearance of 19th-century ideas associated with free-market capitalism after it fell into decline following the Second World War. A prominent fa ...
reforms, known as "
Rogernomics In February 1985, journalists at the ''New Zealand Listener'' coined the term Rogernomics, a portmanteau of "Roger" and "economics" (by analogy with "Reaganomics"), to describe the neoliberal economic policies followed by Roger Douglas. Douglas ...
", and to his dismay – to see his own man, Bolger, take up the same baton after winning the landslide election of 1990 in the form of "
Ruthanasia Ruthanasia, a portmanteau of "Ruth" and "euthanasia", is the pejorative name (typically used by opponents) given to the period of free-market policies conducted during the first term of the fourth National government in New Zealand, from 1990 t ...
", named after Finance Minister
Ruth Richardson Ruth Margaret Richardson (born 13 December 1950) is a New Zealand retired politician of the National Party who served as Minister of Finance from 1990 to 1993. Her 1991 budget, which she dubbed the "Mother of all Budgets", formed the catalyst ...
. Muldoon was a staunch critic of Richardson's and the Bolger government's policies. Muldoon also opposed the legalisation of homosexual behaviour when Labour MP
Fran Wilde Dame Frances Helen Wilde (née Kitching, born 11 November 1948) is a New Zealand politician, and former Wellington Labour member of parliament, Minister of Tourism and Mayor of Wellington. She was the first woman to serve as Mayor of Wellingt ...
introduced the Homosexual Law Reform Bill in 1985. The Bill passed as the Homosexual Law Reform Act in 1986. Although he remained iconic to particular segments of society, particularly the elderly, Muldoon faded quickly as a force on the political scene. His biographer,
Barry Gustafson Barry Selwyn Gustafson (born 1938) is a New Zealand political scientist and historian, and a leading political biographer. He served for nearly four decades as professor of political studies at the University of Auckland, and as Acting Directo ...
, who described himself as not a Muldoon supporter, wrote that he still served as an active MP for his Tamaki electorate, dealing immediately with matters from all walks of life. He continued to write in international economic journals, arguing that the unemployment that had arisen as a result of the free market reforms was worse than the gains that were made, a view that came to be popular by the time of the
Fifth Labour Government The Fifth Labour Government of New Zealand was the government of New Zealand from 10 December 1999 to 19 November 2008. Labour Party leader Helen Clark negotiated a coalition with Jim Anderton, leader of the Alliance Party. While undertaking ...
in 1999. Muldoon had a short stage career in a New Zealand production of ''
The Rocky Horror Show ''The Rocky Horror Show'' is a musical with music, lyrics and book by Richard O'Brien. A humorous tribute to the science fiction and horror B movies of the 1930s through to the early 1960s, the musical tells the story of a newly engaged couple ...
'', held at Auckland's His Majesty's Theatre (demolished soon after the production ended), starring as the narrator. He also had minor television appearances on commercials for
Panasonic formerly between 1935 and 2008 and the first incarnation of between 2008 and 2022, is a major Japanese multinational corporation, multinational Conglomerate (company), conglomerate corporation, headquartered in Kadoma, Osaka, Kadoma, Osaka P ...
(when it changed its brand name in New Zealand from "National") and in the television series ''
Terry and the Gunrunners ''Terry and the Gunrunners'' is a book by New Zealand authors Bob Kerr and Stephen Ballantyne. The authors created the comic book ''Terry and the Gunrunners'' in 1982 as part of a series that also included ''Terry and the Yodelling Bull'' (1986) ...
'' (as Arnos Grove) and in ''The Friday Frights'' (as the vampiric host 'Count Robula'); he also hosted a
talkback radio Talk radio is a radio format containing discussion about topical issues and consisting entirely or almost entirely of original spoken word content rather than outside music. Most shows are regularly hosted by a single individual, and often featur ...
show entitled ''Lilies and Other Things'', referencing his favourite flower on
Radio Pacific TAB Trackside is a New Zealand horse racing and sports broadcast network, incorporating two pay TV channels. The TV channels are available on Sky (New Zealand), Sky channels and the Spark New Zealand#Spark Sport, Spark Sport streaming service. ...
. In his later years Muldoon's health declined as he suffered from a number of ailments. Alienated from National and disenchanted with government policy, Muldoon announced his resignation to the party caucus on 10 November 1991. On his Radio Pacific show, on 17 November 1991, Muldoon announced he would stand down from Parliament; he formally retired one month later, on 17 December. His retirement party featured taped speeches from
Ronald Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician, actor, and union leader who served as the 40th president of the United States from 1981 to 1989. He also served as the 33rd governor of California from 1967 ...
(commenting that at Muldoon's age, he was only getting started) and
Margaret Thatcher Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013) was Prime Minister of the United Kingdom from 1979 to 1990 and Leader of the Conservative Party (UK), Leader of the Conservative Party from 1975 to 1990. S ...
. One of the people organizing the party was Bob Jones, who had forgiven Muldoon for their previous falling out. A by-election was held in February 1992, and was won by National's
Clem Simich Clement Rudolph "Clem" Simich or Šimić (born 2 June 1939) is a New Zealand politician for the National Party. Early life Simich was born in Te Kōpuru, Northland in 1939. Member of Parliament He was first elected to Parliament in ...
on a reduced majority. Muldoon fell seriously ill almost immediately after his retirement, and died in hospital on 5 August 1992, aged 70. He is buried at Purewa Cemetery, Meadowbank, Auckland, in a plot that faces
Auckland CBD The Auckland Central Business District (CBD), or Auckland city centre, is the geographical and economic heart of the Auckland metropolitan area. It is the area in which Auckland was established in 1840, by William Hobson. It is New Zealand's lea ...
. His wife, Dame Thea Muldoon, died on 24 February 2015, at the age of 87.


Public image and legacy

Muldoon was a polarising figure while in power, and remains one to this day. During his time in power he regularly eschewed formality, which included punching political demonstrators and stripping naked at a cocktail party. Praised for his
populist Populism refers to a range of political stances that emphasize the idea of "the people" and often juxtapose this group against " the elite". It is frequently associated with anti-establishment and anti-political sentiment. The term developed ...
appeal, he shaped his reputation as a rough, tough, and thoroughly cantankerous politician through his self-determination, even at the risk of his own political longevity. He became the first prime minister to use television as a medium to gain widespread support, and eagerly used it to attack and insult his opponents. Muldoon openly used
homophobic Homophobia encompasses a range of negative attitudes and feelings toward homosexuality or people who are identified or perceived as being lesbian, gay or bisexual. It has been defined as contempt, prejudice, aversion, hatred or antipathy, m ...
language, and he refused to legalise male homosexual activity and abortion, both crimes at the time. However, after the ''
New Zealand Truth ''New Zealand Truth'' was a tabloid newspaper published weekly in New Zealand from 1905 to 2013. History ''New Zealand Truth'' was founded in 1905 by Australian John Norton in Wellington, as a New Zealand edition of his Sydney ''Truth'', aim ...
'' attempted to out his youngest MP
Marilyn Waring Dame Marilyn Joy Waring (born 7 October 1952) is a New Zealand public policy scholar, international development consultant, former politician, environmentalist, feminist and a principal founder of feminist economics. In 1975, aged 23, she beca ...
, the 26-year-old
Baby of the House Baby of the House is the unofficial title given to the youngest member of a parliamentary house. The term is most often applied to members of the British parliament from which the term originated. The title is named after the Father of the House ...
, Muldoon moved swiftly to minimise publicity and protect her. Muldoon famously declared upon becoming Prime Minister that he hoped to leave New Zealand "no worse off than I found it". Historians such as Gustafson and Brian Easton criticise Muldoon because, according to them, he pursued an ultimately unsustainable line of policy. Former Cabinet Minister
Hugh Templeton Hugh Campbell Templeton (born 24 March 1929) is a former New Zealand diplomat, politician and member of parliament for the National Party. Early life and family Templeton was born in Wyndham, Southland, in 1929. He was educated at Gore Hig ...
argued Muldoon's lack of "strategic vision" denied New Zealand a careful, measured economic restructuring that paved the way for Rogernomics. Muldoon enjoyed engaging positively with criminal gangs such as Black Power, made uncouth public statements that emphasised "blokeiness". Both his physical appearance (with his distinctive facial scar) and personal style led to the nicknames "Scarface" and "Piggy" – both of which he appropriated himself with pleasure. Muldoon became patron of the Black Power gang for whom he had created work schemes and advised on the better treatment of women and children associated with the gang. Members paid him solemn respect by performing a
haka Haka (; plural ''haka'', in both Māori and English) are a variety of ceremonial performance art in Māori culture. It is often performed by a group, with vigorous movements and stamping of the feet with rhythmically shouted or chanted accompani ...
during his funeral in 1992. For his acrimonious behaviour he was also dubbed a "bully", and posthumously he was said to have "run the country like a gang" himself. Muldoon's shunning of intellectualism in favour of intimidating, raging against so-called "elites", and blatant, manipulative populism has led him to be called a forerunner to the likes of
Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. Trump graduated from the Wharton School of the University of Pe ...
,
Tucker Carlson Tucker Swanson McNear Carlson (born May 16, 1969) is an American television host, conservative political commentator and writer who has hosted the nightly political talk show ''Tucker Carlson Tonight'' on Fox News since 2016. Carlson began h ...
and
Silvio Berlusconi Silvio Berlusconi ( ; ; born 29 September 1936) is an Italian media tycoon and politician who served as Prime Minister of Italy in four governments from 1994 to 1995, 2001 to 2006 and 2008 to 2011. He was a member of the Chamber of Deputies ...
. Both Muldoon and Trump pursued populist protectionist methods aimed at creating both full employment and self-sufficiency and promoted anti-immigration policies, while demonstrating aggressive and tactless personal behaviour.


In popular culture

* Muldoon was frequently lampooned in the TVNZ-produced satire show '' McPhail & Gadsby'' during the 1980s. * American President
Ronald Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician, actor, and union leader who served as the 40th president of the United States from 1981 to 1989. He also served as the 33rd governor of California from 1967 ...
would sometimes mistake the last name of Canadian Prime Minister
Brian Mulroney Martin Brian Mulroney ( ; born March 20, 1939) is a Canadian lawyer, businessman, and politician who served as the 18th prime minister of Canada from 1984 to 1993. Born in the eastern Quebec city of Baie-Comeau, Mulroney studied political sci ...
to be Muldoon after changes in government in both New Zealand and Canada in 1984, with many Canadian political cartoonists taking up on this error and referring to Mulroney as 'Muldoon'. * In 1995, actor
Ian Mune Ian Barry Mune (born 1941) is a New Zealand character actor, director, and screenwriter. His screen acting career spans four decades and more than 50 roles. His work as a film director includes hit comedy ''Came a Hot Friday'', an adaptation of c ...
played Sir Robert Muldoon in the made-for-television mini-series ''Fallout'', depicting the end of the Muldoon National Government. * A corner on the Remutaka Hill Road section of State Highway 2 has been named after the former prime minister. Safety work carried out between 2009 and 2012, costing
NZ$ The New Zealand dollar ( mi, tāra o Aotearoa; sign: $, NZ$; code: NZD) is the official currency and legal tender of New Zealand, the Cook Islands, Niue, the Ross Dependency, Tokelau, and a British territory, the Pitcairn Islands. Within New ...
16.5 million, included realignment to ease the corner. * On 8 January 1977 when he was at
Piha Piha is a coastal settlement in West Auckland, on the western coast of the Auckland Region in New Zealand. It is one of the most popular beaches in the area and a major day-trip destination for Aucklanders throughout the year, and especially ...
Beach for the re-opening of the
Piha Surf Life Saving Club Piha Surf Life Saving Club (sometimes called Piha Lifeguard Service) is a surf lifesaving club for the southern section of Piha, on the west coast of Auckland, New Zealand, some 45 km from the Auckland City centre. The patrol was featured i ...
club-house after the Project 40 rebuild, he joined the Auckland Rescue Helicopter lifeguards jumping into the surf from the helicopter. He was lifted out of the water and transported back to the beach slung under the helicopter using the rescue strop connected into the cargo hook.


See also

* Electoral history of Robert Muldoon


References


Citations


Bibliography

* * * * 'The revised proceedings of a conference on Muldoon held at Victoria University of Wellington during 2002.''] * Brian Easton (economist), Easton, Brian ** ** *Barry Gustafson, Gustafson, Barry ** ** ** * * * * * * Muldoon, R. D. ** ** Muldoon. Wellington: Reed, (1977). ** My Way. Wellington: Reed, (1981). ** The New Zealand Economy: A Personal View. Auckland: Endeavour Press, (1985). ** Number 38. Auckland: Reed Methuen, (1986). * * * * * Zavos, Spiro. The Real Muldoon. Wellington: Fourth Estate Books (1978).


External links

* from the ''
Dictionary of New Zealand Biography The ''Dictionary of New Zealand Biography'' (DNZB) is an encyclopedia or biographical dictionary containing biographies of over 3,000 deceased New Zealanders. It was first published as a series of print volumes from 1990 to 2000, went online i ...
''
Think Big policy decisions

Archives New Zealand – Robert Muldoon Official Biography
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