Black Budget (New Zealand)

Black Budget (New Zealand)

In New Zealand, the term Black Budget refers to the government budget of 26 June 1958 in which Finance Minister Arnold Nordmeyer increased taxes on beer, tobacco, cars and petrol.

The second Labour government took office in 1957, and within a year were confronted with a balance of payments crisis caused by the collapse of the price of butter in Britain (New Zealand's main export market). Nordmeyer's colleagues were reluctant to cut government spending or break expensive election promises, so Nordmeyer was left with little option but to raise taxes.

The budget was massively unpopular, not least with Labour's traditional working-class supporters. The term 'black budget' is believed to have been coined by union leader Fintan Patrick Walsh, but was taken up by the National Party opposition, and became the commonly used term for the budget.

The government's popularity never recovered from the budget, which is generally believed to have cost it the 1960 election. Nordmeyer was forever tainted by the 'black budget', which gave him a reputation as a puritanical 'wowser' who was opposed to simple working class pleasures such as beer and cigarettes (at this point the dangers of smoking were not widely known). Despite this, he became the leader of the Labour Party in 1963, but was replaced by Norman Kirk less than three years later.

External links

* Arnold Nordmeyer in the "Dictionary of New Zealand Biography":

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • New Zealand dollar — Tāra o Aotearoa (Māori) ISO 4217 code NZD User(s)  New Zealand …   Wikipedia

  • New Zealand pound — ISO 4217 code NZP User(s) New Zealand, Cook Islands, Niue, Pitcairn Islands, Tokelau Subunit 1/20 shilling …   Wikipedia

  • New Zealand free trade agreements —   New Zealand …   Wikipedia

  • New Zealand Trade and Enterprise — Agency overview Formed 1 July 2003 Jurisdiction New Zealand Parent agency …   Wikipedia

  • New Zealand head tax — New Zealand imposed a poll tax on Chinese immigrants during the 19th and early 20th centuries. The poll tax was effectively lifted in the 1930s following the invasion of China by Japan, and was finally repealed in 1944. Prime Minister Helen Clark …   Wikipedia

  • New Zealand 20 cent coin — Twenty cents New Zealand Value 0.20 New Zealand dollars Mass  4.00 g Diameter  21.75 mm Thickness  1.56 mm …   Wikipedia

  • New Zealand–China Free Trade Agreement — The New Zealand – China Free Trade Agreement is a bilateral free trade agreement signed between the People s Republic of China and New Zealand in April 2008. It is the first free trade agreement that China has signed with any developed country,… …   Wikipedia

  • New Zealand Ten dollar Note — Ten Dollars (New Zealand) Value: 10 New Zealand Dollar …   Wikipedia

  • New Zealand one dollar coin — One dollar New Zealand Value 1.00 New Zealand dollars Mass  8.00 g Diameter  23.00 mm Thickness  2.74 mm …   Wikipedia

  • New Zealand Business Roundtable — The New Zealand Business Roundtable (NZBR), a market oriented thinktank, operates from Wellington, New Zealand. Businessman Robert McLeod chairs the organisation, with Bill Gallagher MBE, Nick Calavrias and Bill Day as Vice Chairs. Members, who… …   Wikipedia

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.