Walter Nash, English-New Zealand lawyer and politician, 27th Prime Minister of New Zealand (d. 1968)

Sir Walter Nash (12 February 1882 – 4 June 1968) stands as a towering figure in New Zealand's political history, notably serving as the 27th Prime Minister from 1957 to 1960, leading the Second Labour Government. His political career was marked by extraordinary longevity and dedication, having been intimately associated with the New Zealand Labour Party from its earliest days, influencing its direction for over five decades.

Born in Kidderminster, England, Nash holds the unique distinction as the most recent New Zealand prime minister to have been born outside the country. His journey to New Zealand began in 1909, a period of significant social and economic change both globally and within the dominion. Upon his arrival, he swiftly immersed himself in the burgeoning labour movement, joining the nascent Labour Party, which was officially formed in 1916. His commitment and organisational skills quickly propelled him upwards, and by 1919, he became a key member of the party's executive, demonstrating his early influence.

Nash's parliamentary career commenced with his successful election in the Hutt by-election of 1929, securing a seat that he would hold for an remarkable 40 years. Known for his pragmatic approach and considered a moderate within the Labour Party, he eschewed more radical socialist policies in favour of a gradualist and reformist path, believing in social improvement through robust economic management.

Architect of Economic Recovery and Welfare State

His most enduring legacy was forged during his tenure as Minister of Finance, a pivotal role he assumed in 1935 within the First Labour Government. Facing the profound economic challenges of the Great Depression, Nash skillfully guided the nation's recovery programme. He implemented groundbreaking policies designed to alleviate hardship and build a more equitable society. These included:

• Nationalisation of the Reserve Bank of New Zealand: Bringing monetary policy under state control to serve national interests.
• Guaranteed Prices for Primary Producers: Introducing a system to stabilise incomes for dairy farmers, a cornerstone of New Zealand's economy.
• Expansion of Social Security: Playing a crucial role in establishing a comprehensive welfare state, including universal superannuation, increased family benefits, and laying the groundwork for free health services through the Social Security Act of 1938.

As World War II erupted, Nash transitioned to directing the government's stringent wartime economic controls, managing rationing, price stabilisation, and industrial regulation to support the war effort and prevent inflation. His meticulous financial stewardship during these tumultuous decades was instrumental in shaping modern New Zealand.

From Opposition to Prime Minister

Following the death of long-serving Prime Minister Peter Fraser in 1950, Nash ascended to the leadership of the Labour Party and became Leader of the Opposition in 1951. After years in opposition, the Labour Party, under Nash's leadership, secured a narrow but significant victory in the 1957 general election, propelling him into the office of Prime Minister at the age of 75.

The Second Labour Government, however, faced immediate and severe economic headwinds. A rapidly escalating balance of payments crisis – triggered by a sharp decline in export prices (particularly for wool and dairy) combined with high import demand – necessitated urgent and drastic action. In response, Nash's government unveiled the infamous "Black Budget" of 1958.

This budget dramatically increased taxes on what were perceived as luxury items, including significant hikes on beer, tobacco, and petrol, alongside higher income taxes for top earners. While the budget also introduced some increases in social benefits, these were largely overshadowed by the public outcry over the tax increases, which profoundly impacted the everyday lives of New Zealanders. Public hostility towards the "Black Budget" proved to be a critical factor contributing to Labour's heavy defeat in the 1960 election, marking the end of Nash's premiership.

Leaving office at 78 years of age, Sir Walter Nash remains, to date, New Zealand's most elderly prime minister, a testament to his enduring commitment to public service even in advanced years. Despite the controversial end to his premiership, his contributions as Minister of Finance during the Great Depression and World War II are widely recognised as foundational to New Zealand's economic and social fabric.

Frequently Asked Questions About Sir Walter Nash

Who was Sir Walter Nash?

Sir Walter Nash was a prominent New Zealand politician who served as the 27th Prime Minister of New Zealand from 1957 to 1960. He is also remembered for his exceptionally long political career and his crucial role as Minister of Finance in the First Labour Government.

What was Sir Walter Nash's most significant contribution to New Zealand?

While his premiership ended controversially, Sir Walter Nash's most significant contributions are widely considered to be his efforts as Minister of Finance from 1935 to 1949. He played a pivotal role in guiding New Zealand's economic recovery during the Great Depression and establishing key pillars of the nation's welfare state, including the nationalisation of the Reserve Bank and the expansion of social security provisions.

Why was the "Black Budget" of 1958 so controversial?

The "Black Budget" was introduced by Sir Walter Nash's Second Labour Government in response to a severe balance of payments crisis. It significantly increased taxes on popular consumer goods like beer, tobacco, and petrol, as well as raising income tax. Despite being necessary to address the economic crisis, these tax hikes were deeply unpopular with the public, leading to widespread resentment and contributing to Labour's electoral defeat in 1960.

How long did Sir Walter Nash serve as Prime Minister?

Sir Walter Nash served as Prime Minister of New Zealand for a single term, from 1957 to 1960, leading the Second Labour Government.

What was unique about Sir Walter Nash's birth and political background?

Sir Walter Nash was born in Kidderminster, England, making him the most recent New Zealand Prime Minister not to have been born in New Zealand. He arrived in the country in 1909 and became associated with the New Zealand Labour Party from its very inception, eventually rising through its ranks as a moderate voice to become its leader and Prime Minister.