Robert Muldoon

The Right Honourable Sir Robert David ("Rob") Muldoon KCMG CH (25 September 1921–5 August 1992) served as Prime Minister of New Zealand from 1975 to 1984.

Prime Minister

Upon becoming prime minister, Muldoon became Minister of Finance as well, concentrating enormous power in himself--the last prime minister to hold both posts to date. He had remained National's spokesman on financial matters when he became the party leader. His highly abrasive style was famously recorded in a 1976 TV interview with journalist Simon Walker.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

The "Muldoon years" are marked by Muldoon's obstinate, resourceful and autocratic attempts to maintain New Zealand's "cradle to the grave" welfare state, dating from 1935, in the face of a changing world. The nation's economy was suffering from the aftermath of the 1973 energy crisis, the loss of New Zealand's biggest export market upon Britain's entry to the European Economic Community, and rampant inflation. Rather than attempting to foster diversification of the economy, Muldoon imposed draconian wage and price controls and promoted a strategy he labelled "Think Big", in which the government borrowed heavily and pumped the funds into large-scale industrial projects, most of which failed or yielded minimal profit and many of which were hampered by industrial disputes. (It should be noted that similar state-backed large projects were successful in the Asian Tiger economies, though there were marked fundamental differences in capital freedom.) He was also obliged to borrow to fund the welfare state and New Zealand's extremely lavish regime of agricultural subsidies.

Related Topics:
Welfare state - 1973 energy crisis - European Economic Community - Inflation - Think Big - Asian Tiger

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Even in hindsight, Bill Birch, one of Muldoon's allies of the Think Big era and his Minister of Energy, is convinced the programme could have succeeded and generated employment. This is despite the fact that succeeding Governments sold off all the "think big" projects that were State owned for minimal amounts and in some cases paid for them to be taken over.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Muldoon was re-elected in 1978 and 1981; however, in both elections, the Labour opposition received more popular votes across the country as a whole. This ambiguous mandate did not dilute Muldoon's agenda, and he became more emphatic and autocratic as his time in power grew.

Related Topics:
1978 - 1981

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Concerned about the use of foreign exchange during the 1970s' oil crises, Muldoon supported a scheme where automobiles could be powered by natural gas or a dual-fuel gas?petrol system. Incentives were introduced in Muldoon's 1979 budget to encourage the conversions, and New Zealand emerged as possibly the first country to have dual-fuel cars as a commonplace sight. However, the projection that oil prices would become ever-higher did not eventuate during this period.

Related Topics:
Natural gas - 1979 - Dual-fuel cars

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

In 1980, there was an abortive attempt, known as the Colonels' Coup, to replace Muldoon with his deputy, Brian Talboys. However, Talboys was a somewhat reluctant draftee, and Muldoon was able to see the plotters off with relative ease. This was the only serious challenge to Muldoon's authority in his years as Prime Minister.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Muldoon's belief in keeping his word on never allowing politics to enter sport resulted in his refusal to bar the 1981 tour by the Springboks, the national rugby squad of apartheid South Africa. "The Tour", as it has become known, provoked massive protests 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, and displaying open contempt for the protesters. 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. He also argued that allowing their rugby team to tour did not mean supporting apartheid any more than playing a Soviet Union team meant supporting Communism.

Related Topics:
1981 tour - Springboks - Rugby - Apartheid - South Africa - Protests - Soviet Union - Communism

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

He initiated a Closer Economic Relations (CER) programme with Australia to liberalise trade, which came into effect on New Year's Day 1982. The aim of total free trade between the two countries was achieved in 1990, five years ahead of schedule. Muldoon's administration also introduced Teletext to New Zealand early in 1984, bringing the country into the information age.

Related Topics:
Closer Economic Relations - Australia - New Year's Day - 1982 - 1990 - Teletext

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

He became a Knight Commander of the Order of St Michael and St George in 1983, the only New Zealand Prime Minister to be knighted while in office. He was later made a Companion of Honour.

Related Topics:
Order of St Michael and St George - Companion of Honour

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

His autocratic style eventually undid him: following a late-night clash with National backbencher Marilyn Waring over highly contentious Opposition-sponsored nuclear-free New Zealand legislation, in which Waring told him she would cross the floor (giving the Opposition a victory), A visibly drunk Muldoon called a snap election for 14 July 1984. He was heavily defeated by David Lange's resurgent Labour Party, which won 56 seats to National's 37.

Related Topics:
Marilyn Waring - Nuclear-free New Zealand - Cross the floor - Snap election - 14 July - 1984 - David Lange

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

It has long been a strong convention in New Zealand politics that a Prime Minister does not dissolve Parliament prematurely unless s/he cannot govern, or unless they need to seek the electorate's endorsement on a matter of national importance (as was the case in 1951). Muldoon justified the snap election because he felt Waring's revolt impeded his ability to govern; however, historians have been critical of this excuse, as Waring said that she would not have denied Muldoon confidence or supply, and would not have prevented him from governing.

Related Topics:
1951 - Confidence - Supply

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

A final controversy occurred during the transfer of power: while Muldoon was still technically Prime Minister (Lange and his Cabinet not yet having been sworn in) a major currency crisis occurred. By convention, the caretaker government defers to the wishes of the incoming government in these situations; however, Muldoon refused to devalue the dollar, as Lange wanted. This provoked a minor constitutional crisis until Muldoon grudgingly agreed to devalue. Legislation was subsequently passed to ensure the situation would not repeat itself.

Related Topics:
Caretaker government - Dollar - Constitutional crisis

~ ~ ~ ~ ~ ~ ~ ~ ~ ~