Land, Labour, Humanism: The Policy Directions of the Liberal Government of New Zealand 1891-1912
Adam Young
Between New Zealand’s early colonial history with the signing of the Treaty of Waitangi and the growing national consciousness that came with the Gallipoli campaign of the First World war sits an understudied, yet critical piece of New Zealand history: the reign of the Liberal Government of New Zealand. In the popular knowledge many know figures such as Richard Seddon and Kate Sheppard through the granting of universal suffrage, but, beyond this (albeit significant!) event the way the Liberals shaped modern New Zealand seems to have been relegated to the history books.
Even among academia the Liberals are written off as “pragmatists or opportunists”. They are claimed to have had no doctrine or ideology, being blown by the political winds and popular opinion.
The reality is that the Liberal Government of New Zealand has done much more to shape the New Zealand of today than it is remembered for. It also had clear policy directions, not simply following public opinion but actively aiming to build a new society, free of the shackles of the class structure of the “old world”. These directions can largely be boiled down into three areas: land, labour, and humanism.
Even among academia the Liberals are written off as “pragmatists or opportunists”. They are claimed to have had no doctrine or ideology, being blown by the political winds and popular opinion.
The reality is that the Liberal Government of New Zealand has done much more to shape the New Zealand of today than it is remembered for. It also had clear policy directions, not simply following public opinion but actively aiming to build a new society, free of the shackles of the class structure of the “old world”. These directions can largely be boiled down into three areas: land, labour, and humanism.
Land- Fulfilling the “Kiwi Dream”
New Zealand being a rapidly developing settler colony during the tenure of the Liberals, it should come as no surprise that land played a crucial role in the politics of the time. Most Settlers having come from the highly classist and aristocratic Britain, the allure of a piece of land a working man could call his own was irresistible. As such, the great goal of the liberal was getting Kiwis “on the land”. |
Freehold vs Leasehold
How this goal was to be achieved however was up for debate. Within the Liberals was the great struggle between the “leaseholders” and the “freeholders”. The leaseholders wished for all land to be nationalised under the Government and rented out for cheap rates to farmers and workers. Rather than removing class by allowing all to own land, in this system none would own land, nor reap the “unearned increment” of rising land prices from the overall development of the colony. Conversely however was the method of ownership more familiar with society today: the “freehold” where land is owned by the individual, who retains full rights to the land and pays no lease for the right to enjoy it.
Early in the Liberal reign, the leasehold idea influenced the bulk of the land related legislation passed by the Government. The first major piece of legislation passed by the Liberals, the Land and Income Assessment Act 1891, abolished the property tax and introduced a modest tax on land. The Land Act of 1892 was also a major step towards a system of leasehold for New Zealand, allowing for land to be leased for terms of 999 years at cheap rates. Small farmers, unable to stump up the capital to purchase land outright were given the chance to have their own piece of land to work on.
Despite the gains to land “ownership” made by the Liberal Government in breaking up large estates through a land tax and encouraging small land holdings with the perpetual lease, ultimately it was the freehold that became the primary method of land ownership in New Zealand. The Land Laws Amendment Act 1907 spelled the effective end of the leasehold in New Zealand. It ended the 999-year lease-in-perpetuity and replaced it with a 66 year lease, also giving leaseholders the right of purchase for their land.
The roots of New Zealand suburbanism
The reality was the desire to own land was too strong for the leasehold to take hold, a desire that remains strong to this day. For the average settler escaping the dense, crime ridden rental townhouses of British cities and starting anew with land of their own was a major goal of starting their new life. To fulfil this the idea of city suburbs was introduced into New Zealand. Land allotments were sold small enough that the owners would not become farmers, but large enough that the house a family would own could be detached from that of their neighbours. Thus, it was here that the Liberal Government’s land policy culminated: the creation and fulfilment of the “Kiwi dream”, the quarter-acre section with a detached home where a working man could raise his family.
Labour- Reconciling “Labour” and “Capital”
The anti-classism stance of the Liberals made them easy friends of the working class and trade unions. In the same way that New Zealand settlers wished to avoid the dense, crime ridden cities of the Old World, so did they wish to avoid the crowded, dangerous factories too.
Bettering working conditions
To this end the Liberals passed much legislation regulating and reforming various industries and modes of employment. Some were smaller, such as the Truck Act 1891 that simply stipulated that employees had to be paid in cash rather than goods. Others were much larger, such as the Factory Acts and the Shops and Shop-Assistants Acts. These acts were major overhauls of labour rights in New Zealand.
The Factories acts regarded largely places of employment, ensuring that they be sanitary and safe, while restricting the hours of women and children so they would not be exploited with cheap wages and deprived of education. The Shops Acts limited the hours shop assistances could work, ensuring they did not work excessive hours and had at least one afternoon off work a week. Many rights that employees enjoy in New Zealand today are owed to these Acts of the Liberal government, even those as small as having a dedicated room for lunch breaks.
The Industrial Conciliation and Arbitration Act
The seminal piece of labour reform passed by the Liberal Government can be found in the Industrial Conciliation and Arbitration (I.C.A) Act. This act was made in an attempt to reconcile the interests of the working class, represented by trades unions, and business owners, so that strikes may be prevented. It made provisions for conciliation between employers and trade unions, with an Arbitration court established to decide disputes should conciliation fail.
The I.C.A Act was hugely successful. Union membership exploded as unions were made significantly more effective. In 1893 there were only 37 unions in New Zealand, by 1906 there were 274. The Act was also successful for the begrudging employers, seeing no major strikes for 10 years after the passing of the law.
While unions aren’t as established today as they have been in the past, they played a significant role in the development of labour rights in the first half of the 20th Century, being initially empowered by the Liberals and their labour reforms. While amendments were made to the I.C.A Act in later terms of the Liberal Government that allowed for stronger actions to suppress strikes (to be later used by governments less sympathetic to unions), the Labour movement in New Zealand owes a great deal to the first steps taken at the close of the 19th Century.
How this goal was to be achieved however was up for debate. Within the Liberals was the great struggle between the “leaseholders” and the “freeholders”. The leaseholders wished for all land to be nationalised under the Government and rented out for cheap rates to farmers and workers. Rather than removing class by allowing all to own land, in this system none would own land, nor reap the “unearned increment” of rising land prices from the overall development of the colony. Conversely however was the method of ownership more familiar with society today: the “freehold” where land is owned by the individual, who retains full rights to the land and pays no lease for the right to enjoy it.
Early in the Liberal reign, the leasehold idea influenced the bulk of the land related legislation passed by the Government. The first major piece of legislation passed by the Liberals, the Land and Income Assessment Act 1891, abolished the property tax and introduced a modest tax on land. The Land Act of 1892 was also a major step towards a system of leasehold for New Zealand, allowing for land to be leased for terms of 999 years at cheap rates. Small farmers, unable to stump up the capital to purchase land outright were given the chance to have their own piece of land to work on.
Despite the gains to land “ownership” made by the Liberal Government in breaking up large estates through a land tax and encouraging small land holdings with the perpetual lease, ultimately it was the freehold that became the primary method of land ownership in New Zealand. The Land Laws Amendment Act 1907 spelled the effective end of the leasehold in New Zealand. It ended the 999-year lease-in-perpetuity and replaced it with a 66 year lease, also giving leaseholders the right of purchase for their land.
The roots of New Zealand suburbanism
The reality was the desire to own land was too strong for the leasehold to take hold, a desire that remains strong to this day. For the average settler escaping the dense, crime ridden rental townhouses of British cities and starting anew with land of their own was a major goal of starting their new life. To fulfil this the idea of city suburbs was introduced into New Zealand. Land allotments were sold small enough that the owners would not become farmers, but large enough that the house a family would own could be detached from that of their neighbours. Thus, it was here that the Liberal Government’s land policy culminated: the creation and fulfilment of the “Kiwi dream”, the quarter-acre section with a detached home where a working man could raise his family.
Labour- Reconciling “Labour” and “Capital”
The anti-classism stance of the Liberals made them easy friends of the working class and trade unions. In the same way that New Zealand settlers wished to avoid the dense, crime ridden cities of the Old World, so did they wish to avoid the crowded, dangerous factories too.
Bettering working conditions
To this end the Liberals passed much legislation regulating and reforming various industries and modes of employment. Some were smaller, such as the Truck Act 1891 that simply stipulated that employees had to be paid in cash rather than goods. Others were much larger, such as the Factory Acts and the Shops and Shop-Assistants Acts. These acts were major overhauls of labour rights in New Zealand.
The Factories acts regarded largely places of employment, ensuring that they be sanitary and safe, while restricting the hours of women and children so they would not be exploited with cheap wages and deprived of education. The Shops Acts limited the hours shop assistances could work, ensuring they did not work excessive hours and had at least one afternoon off work a week. Many rights that employees enjoy in New Zealand today are owed to these Acts of the Liberal government, even those as small as having a dedicated room for lunch breaks.
The Industrial Conciliation and Arbitration Act
The seminal piece of labour reform passed by the Liberal Government can be found in the Industrial Conciliation and Arbitration (I.C.A) Act. This act was made in an attempt to reconcile the interests of the working class, represented by trades unions, and business owners, so that strikes may be prevented. It made provisions for conciliation between employers and trade unions, with an Arbitration court established to decide disputes should conciliation fail.
The I.C.A Act was hugely successful. Union membership exploded as unions were made significantly more effective. In 1893 there were only 37 unions in New Zealand, by 1906 there were 274. The Act was also successful for the begrudging employers, seeing no major strikes for 10 years after the passing of the law.
While unions aren’t as established today as they have been in the past, they played a significant role in the development of labour rights in the first half of the 20th Century, being initially empowered by the Liberals and their labour reforms. While amendments were made to the I.C.A Act in later terms of the Liberal Government that allowed for stronger actions to suppress strikes (to be later used by governments less sympathetic to unions), the Labour movement in New Zealand owes a great deal to the first steps taken at the close of the 19th Century.
“Humanism”- the beginnings of the welfare state
Land and Labour reform were the major policy areas of the Liberals when they came into governance, yet once they had completed the bulk of their reforms they remained in Government, dominating successive elections. As such, a shift in policy direction occurred, largely spearheaded by the Premier Richard Seddon away from the settler-colonial focused reform to the nation-building: the social welfare and reform legislation that would be known as “humanist” policy. The march of Women’s rights First and foremost in the popular knowledge of these reforms is the passing of the Electoral Act 1893, bringing universal suffrage to New Zealand. The debate on granting women the right to vote cut across party lines, but most Liberals were in favour of the measure. Other pressing women’s rights issues include the raising of the age of consent with the Criminal Code Act Amendment Act 1894, and the repeal of the Contagious Diseases Act in 1910. These issues came to the fore as a result of great campaigning by Women’s groups such as the National Council of Women, but also through personal channels for the legislators. Reportedly, Liberal Prime Minister Richard Seddon paid much attention to the advice of his wife and daughters, pushing him to advocate more for the rights of women in the colony. |
The welfare state
Another area where the Liberal party had a significant impact on the future of New Zealand was in the early formations of the New Zealand welfare state, most significantly in the introduction of the old-age pension in 1898. While initially only modest and for the very poor, it was a significant development of the idea of the state being responsible for the welfare of its citizens. This idea of responsibility largely came from the intended recipients being the elderly pioneers of society, to whom society owed much for their work in building the colony, who now required the help of the society themselves. As the idea of the pension became more normal and acceptable to the country it was able to be expanded in 1905 to be more generous and extended towards widows with children in 1911.
Modern standards of healthcare
Finally, the Liberals greatly improved the conditions of hospitals and the treatment of patients through a series of Acts modernising the healthcare industry in New Zealand. This included the Public Health Act 1900, establishing health officers to oversee hospital conditions, improving sanitation practises and preventing the outbreak of epidemics. The Nurses Registration Act 1901 and Midwives Act 1904 also provided for the training and registration of nurses and midwives, ensuring best practise in the nation’s hospitals.
Another area where the Liberal party had a significant impact on the future of New Zealand was in the early formations of the New Zealand welfare state, most significantly in the introduction of the old-age pension in 1898. While initially only modest and for the very poor, it was a significant development of the idea of the state being responsible for the welfare of its citizens. This idea of responsibility largely came from the intended recipients being the elderly pioneers of society, to whom society owed much for their work in building the colony, who now required the help of the society themselves. As the idea of the pension became more normal and acceptable to the country it was able to be expanded in 1905 to be more generous and extended towards widows with children in 1911.
Modern standards of healthcare
Finally, the Liberals greatly improved the conditions of hospitals and the treatment of patients through a series of Acts modernising the healthcare industry in New Zealand. This included the Public Health Act 1900, establishing health officers to oversee hospital conditions, improving sanitation practises and preventing the outbreak of epidemics. The Nurses Registration Act 1901 and Midwives Act 1904 also provided for the training and registration of nurses and midwives, ensuring best practise in the nation’s hospitals.
An interactive graph showing the development of Liberal Party Policy Legislation across its time in government. Among other areas of legislative focus, the areas of land (green) and labour (red) legislation were most prominent in the first decade of the Liberal Government, with humanist legislation (pink) taking a greater focus in the second
Sources/further reading:
Brooking, Tom, Richard Seddon: King of God’s Own, (Auckland: Penguin Books, 2017).
Hamer, David, The New Zealand Liberals: the years of power 1891-1912, (Auckland: Auckland University Press, 1988).
Siegfried, Andre, Democracy in New Zealand, trans. E. V. Burns (London: G. Bell and Sons Ltd, 1914)
Sinclair, Keith, The Liberal Government, 1891-1912: First Steps Towards a Welfare State (Auckland: Heinemann Educational Books Limited, 1967)
Brooking, Tom, Richard Seddon: King of God’s Own, (Auckland: Penguin Books, 2017).
Hamer, David, The New Zealand Liberals: the years of power 1891-1912, (Auckland: Auckland University Press, 1988).
Siegfried, Andre, Democracy in New Zealand, trans. E. V. Burns (London: G. Bell and Sons Ltd, 1914)
Sinclair, Keith, The Liberal Government, 1891-1912: First Steps Towards a Welfare State (Auckland: Heinemann Educational Books Limited, 1967)