Awarua by-election 1897

A by-election was held for the Awarua seat on 5 August 1897, the seat vacated by Sir Joseph Ward, and which he had held since 1887. He was re-elected to the 13th New Zealand Parliament.

Sir Joseph Ward was Treasurer (ie Minister of Finance) in 1896, when a judge declared him "hopelessly insolvent". He was forced to resign his portfolios in Cabinet on 16 June.

In 1897, he had to file for bankruptcy, and was adjudicated bankrupt on 8 July 1897. He was then legally obliged to resign his seat in Parliament.

A loophole, however, meant that there was nothing to stop him simply contesting it again — he did so, and was re-elected with an increased majority.

Parliament passed a special act on 13 October, "The Awarua Seat Enquiry Act 1897" (No. 5) which required the Court of Appeal to urgently decide whether he could be re-elected to Parliament, and the court decided in his favour. The court judgement was published as AJHR H 32 of 1897, of 19 pages (AJHR = Appendix to Journal of the House of Representatives).

Ward actually gained considerable popularity as a result of his financial troubles — Ward was widely seen as a great benefactor of the Southland region, and public perceptions were that he was being persecuted by his enemies over an honest mistake.

Gradually, Ward rebuilt his businesses, and paid off his debtors. Richard Seddon, still Prime Minister, quickly reappointed Ward to Cabinet.