United–Reform coalition Government of New Zealand

The United–Reform coalition government of New Zealand was the ministry that governed New Zealand from 1931 to 1935. It was New Zealand’s first coalition government outside of wartime, when Reform and Liberal had formed a National government in 1915 for that purpose.
The United–Reform Coalition was between two of the three major parties of the time, the United and Reform parties and was formed to deal with the Great Depression which began in 1929. The United Party had formerly been the Liberal Party. Despite having provided confidence support for the United Party in parliament between 1928 and 1931, the Labour Party refused to join the coalition government, as it believed that the only solution to the depression was socialism, which United and Reform did not support. Rather, they attempted to solve the country's economic problems by cutting public spending. This, the policy of making the unemployed do relief work for the unemployment benefit, and other cost-cutting policies, made the government the most unpopular of its era, and it was defeated in the 1935 election.

Significant policies

Economic

Cut government spending in order to balance the budget.
The Reserve Bank of New Zealand was established in 1934, beginning the first issue of banknotes for the New Zealand Pound.
Created the Mortgage Corporation of New Zealand in 1935

Transport

Introduced the Transport Licensing Act 1931 to regulate land transport; goods transported further than would require a permit from the New Zealand Railways Department;

Welfare

Compelled the unemployed to labour on public works and other activities in exchange for an unemployment benefit.

Education

Raised school starting age to six in order to save money.
Closed teachers' colleges as cost-cutting measure.

Formation

The initial coalition between the United and Reform had formed earlier in 1931, following the collapse of an earlier coalition between the United and Labour. Fearing that splitting the anti-Labour vote would result in a Labour government even if it received fewer votes than United and Reform combined, the two parties formed a coalition and an election agreement. In the subsequent election, the coalition won 55.4% of the popular vote, compared to 34.3% for Labour.

Defeat

The government focussed primarily on getting New Zealand out of the depression by cutting government spending and thus balancing the national budget. It dealt with widespread unemployment by initiating relief work, which involved compelling the unemployed to work on a range of projects ranging from useful public works to pointless activity. The government was widely seen as heartless, encapsulated by the commonly believed but untrue story that in 1932 the Employment Minister Gordon Coates had told a delegation of unemployed men to go and eat grass. In the 1935 election, Labour won 46.1% of the popular vote, while the coalition, since May 1935 in the amalgamated form of the National Political Federation, won only 32.9%. However the result in terms of seats was much more overwhelming, with Labour winning 53 seats to the coalition's 16. A further eleven seats were won by minor parties and independents. Following this defeat, the United and Reform parties merged in May 1936 to become the National Party.

Prime ministers

The government was led by George Forbes of the United Party, with Gordon Coates of Reform as Minister of Finance.

Cabinet Ministers

In 1934 the Minister of Native Affairs Sir Āpirana Ngata resigned as minister after accusations of departmental maladministration and favouritism were supported by a Royal Commission.