Michael Joseph Savage

In the 1911 and 1914 general election campaigns, Savage unsuccessfully stood as the Socialist candidate for Auckland Central, coming second each time to Albert Glover of the Liberal Party.[3][9] During this time Savage was also involved in local union groups, becoming president of the Auckland Brewers', Wine and Spirit Merchants' and Aerated-water Employees' Union, president of the Auckland Trades and Labour Council, the Auckland organiser for the Social Democratic Party and supported striking miners at Waihi.[3] During the First World War he opposed conscription, arguing "that the conscription of wealth should precede the conscription of men".[3] Savage's opposition to conscription was not absolute, rather based on balance. Indeed, he complied with a conscription order and entered a training camp in 1918, aged 46.[10]

Savage openly supported the formation of a unified New Zealand Labour Party in July 1916, and became its national vice-president in 1918 and later the first permanent national secretary the next year. In 1919 Savage was elected as a Labour candidate to both the Auckland City Council and the Auckland Hospital and Charitable Aid Board in local body elections. He served on the Charitable Aid Board until 1922 and as a councillor until 1923 but was re-elected to the Charitable Aid Board in 1927, remaining in office until 1935.[3]

Savage in the 1920s

As the war came to an end, the voters of the Auckland West electorate put Savage into Parliament as a Labour member in the 1919 general election, an electorate that he held until his death.[11] He became one of eight Labour members of parliament. He formally became the party's deputy-leader after the 1922 election, defeating Dan Sullivan eleven votes to six.[3] Assuming an ever-increasing workload, he had resigned as Labour's national secretary and Auckland Labour Representation Committee secretary in July 1920.

For most of the 1920s Savage sought to expand Labour's support beyond urban unionists and travelled frequently to rural areas. He became the leading advocate for increases to pensions and universally free health care.[12] He is credited for the creation of the Family Allowances Act 1926, which the governing Reform Party openly commented that it had modelled the legislation on three earlier defeated bills introduced by Savage.[3] In 1927 Savage and several others persuaded the party to amend its land policy and recognise the right of freehold which was essential in gaining rural support for Labour. In doing so, Savage furthered perceptions that he was a more practical politician than then Labour leader Harry Holland.[3] In October 1933 Holland died suddenly and Savage took his place becoming Labour's third party Leader.[13]

Savage later helped to engineer an alliance between Labour and the Rātana Church, which was gaining a large Māori following in the 1930s. When T .W. Rātana entered politics he allied himself with the Labour Party, which had consulted with his followers over Māori policy. The pact was formalised in a 1936 meeting between Rātana and Savage.[14]

In 1935, Savage was awarded the King George V Silver Jubilee Medal.[15]

Savage and his ministers in the first Labour Cabinet, photographed in the Old Parliament Building, c. 1935

During the depression, Savage toured the country, and became an iconic figure. An excellent speaker, he became the most visible politician in the land, and led Labour to victory in the 1935 election. Along with the Premiership, he appointed himself to the posts of Minister of External Affairs and Minister of Native Affairs.[16] In 1936 the Weekly News featured Spencer Digby's full page iconic photograph of Savage which was often to be seen framed in many New Zealand homes through the following years.[17] Soon after its election the government gave a "Christmas bonus" of £270,000 to the unemployed and needy.[18] Savage's government also restored wage cuts, expanded pensions, guaranteed farmers' prices, and revalued the currency.[19]

In 1936 the government decided that broadcasting would be run by the state. As a result a government minister in charge of Broadcasting was appointed and new legislation (the Broadcasting Act 1936) was passed that abolished the existing New Zealand Broadcasting Board and established the new National Broadcasting Service in its place. A Director of Broadcasting was appointed and a Broadcasting Advisory Council formed as a result of the act to advise the minister.[20][21] The Labour Party had specifically sought to broadcast parliamentary debates via radio as a means of allowing the public to listen and make their own judgment of events, rather than relying solely on reporting the press, whom Labour were distrustful of.[22] Savage appointed himself as the inaugural minister.[23]

In 1936 the government instituted major reform to industrial relations legislation. The Industrial Conciliation and Arbitration Act which established a statutory minimum wage, standardised the 40-hour week and made union membership compulsory. It also restored the power of the Arbitration Court and required the court to factor in the needs of wives and dependent children of workers when making general wage orders.[24]

While unemployment was consistently reducing the cabinet continued to spend for unemployment relief. To find a more permanent solution to the unemployment situation the government was promoting the development of secondary industries.[24] Likewise the government announced in May 1936 a three year public works programme. This not only provided relief work for the unemployed but also restarted the Public Works Department original function as the development arm of the state. Additionally, all relief workers were placed on standard £4 a week rate of pay.[19]

Despite questioning the necessity for Edward VIII to abdicate, Savage sailed to Britain in 1937 to attend the coronation of King George VI, as well as the concurrent Imperial Conference. While in London, Savage differentiated himself from the other Commonwealth prime ministers when he openly criticised Britain for weakening the League of Nations and argued that the dominions were not consulted with properly on foreign policy and defence issues. Savage's government (unlike Britain) was quick to condemn German rearmament, Japanese expansion in China and Italy's conquest of Abyssinia. Savage criticised Britain's appeasement policies at the conference, saying "Is your policy peace at any price; if it is so I cannot accept it". Anthony Eden replied "No, not at any price, but peace at almost any price", to which Savage replied: "You can pay too high a price even for peace".[25] Britain, Australia, Canada and the opposition National Party were critical of Savage for his stance.[3]

Savage demonstrates his common touch, attending a rugby league match between New Zealand and Australia at Auckland, 1937

In April 1938 Savage and his Finance Minister, Walter Nash, began planning Labour's proposals on social security, in-line with their 1935 election promises. Responding to a suggestion from the Reverend W. H. A. Vickery, mayor of Kaiapoi, Savage began to use the term "applied Christianity" to describe the government's scheme.[26] The Social Security Bill put forward by the government boasted an unemployment benefit payable to people 16 years and over; a universal free health system extending to general practitioners, public hospitals and maternity care; a means-tested old-age pension of 30 shillings a week for men and women at age 60; and universal superannuation from age 65.[26]

The social security scheme was a collaborative effort, with the detailed negotiations and drafting of the legislation carried out by committees of MPs and public servants. However, Savage's personal involvement was pivotal, as he decided on the basic scheme, helped resolve deep divisions of opinion within the Labour caucus over principles and detail, made many of the major public pronouncements and guarantees, and astutely responded to opposition from the Treasury, the New Zealand branch of the British Medical Association, and the National Party.[3] It was also Savage who insisted that the Act contain a provision that it would not come into force until 1 April 1939, thereby giving National the opportunity to revoke it if they won the 1938 general election.[3] The First Labour Government proved popular and easily won the election, with an increased popular mandate. The Social Security Act was eventually passed, establishing the first ever social security system in the western world.[3]

Following the 1938 election, at the first Labour caucus on 3 November, Labour under-secretary John A. Lee, a critic of Savage who was bitter about being excluded from the cabinet,[3] attempted a caucus revolt. He moved a proposal that caucus elect a new cabinet rather than endorse either the existing one or one nominated by Savage. After a bitter debate amongst MPs the proposal was successful 26 votes to 23. However, Savage over-ruled the vote and proceeded to inform the press that cabinet would remain unchanged.[27] In December 1938 the infamous "Lee Letter" appeared. It contained many attacks on the financial orthodoxy and over-cautiousness of the Labour leadership. It received wide publicity and led many in the public to question Labour's unanimity.[28] Lee was eventually expelled from the party by the annual conference.[3]

Savage led the country into the Second World War, officially declaring war on Nazi Germany on 3 September 1939, just hours after Britain.[29] Unlike Australia, which felt obligated to declare war, as it also had not ratified the Statute of Westminster, New Zealand did so as a sign of allegiance to Britain, and in recognition of Britain's abandoning its former appeasement of the dictators, a policy that New Zealand had opposed. This led to Prime Minister Savage declaring (from his sick bed) two days later:

With gratitude for the past and confidence in the future we range ourselves without fear beside Britain. Where she goes, we go; where she stands, we stand. We are only a small and young nation, but we march with a union of hearts and souls to a common destiny.[30]