In February 1972
Keith Holyoake resigned as Prime Minister and was replaced by
Jack Marshall. Not even this could blunt Labour's campaign slogan, "
It's Time – Time for a change, time for Labour", and on 25 November 1972 Kirk led Labour to victory with a majority of 23 seats. as Kirk was recognised as Pākehā, the iconic picture seemed to symbolise a new era of partnership between New Zealand's people. since then the
New Zealand Defence Force has remained an all-volunteer professional force. Kirk also strengthened relations with the
Australian Labor Party and its leader
Gough Whitlam. Like Kirk, Whitlam had come to power in 1972 as the first Labor Prime Minister in a considerable time; Kirk had been preceded by
12 years of National Party government, while Whitlam had succeeded a
Coalition government
that had lasted 23 years. Kirk desired for the two nascent leaders to work together, to foster a boldly independent foreign policy separate from the United Kingdom or the United States. Despite their relative success together in their mutually short periods in office, it is known that Kirk and Whitlam, in private, did not get along and even disliked one another. Kirk was a closer friend to Singaporean Prime Minister
Lee Kuan Yew, whom he regarded as his mentor, and to British Prime Minister
Harold Wilson (despite wanting to escape the influence of Britain), than to Whitlam. The other: his refusal to allow a visit by a
South African
rugby team, a decision he made because the
apartheid régime in South Africa would not accept
racial integration for that sport. He was also highly critical of US foreign policy, speaking before the United Nations of the US involvement in the
coup d'état in Chile in 1973. The Kirk government was also notable for a number of national identity building policies. The government began the tradition of
New Zealand Day in 1973, Christchurch hosted the
1974 Commonwealth Games which had a colourful opening ceremony, seen by many commentators as a festival celebrating New Zealand's new sense of self-confidence and optimism. Kirk and his wife hosted the royal family and accompanied them on their tour of New Zealand and the
Cook Islands.
Social policy The Labour government set out an ambitious policy of social reform, building on the Royal Commission on Social Policy which had been formed by the previous National government. Like the
First Labour Government, major policy innovations saw a range of policy initiatives to improve the adequacy and scope of social security benefits. In 1973, a Domestic Purposes Benefit was introduced for sole parents with dependent children, which was later extended to single men. The Advanced Payment of Benefit was doubled in February 1973 from $400 to $800 and benefit abatements were extended so recipients could claim more of their benefit while in work. The government moved to introduce a State Insurance rebate for retirees on old-age pensions. Unemployment Benefit and Sickness Benefit increased substantially. The government began the
Ohu scheme of communal work groupings in rural areas, allowing committed people (particularly Māori) to return to the land for their livelihood. The scheme assisted people in becoming self-sufficient from the land, enhance spiritual and social wellbeing, allow the development of alternative social models and promote organic farming. Kirk got the idea while visiting
Israel in 1971 and witnessing
Kibbutz communities leading the media to nickname it "Kirk's kibbutzim" when it was announced. People in the Ohu groups did not own the land they were cultivating and leased it from the
Department of Lands and Survey, nor were they expected to produce surplus agricultural products (beyond the needs of the immediate community) for export. An advisory group was established and the first Ohu, named the Sunburst community, was eventually opened near
Whitianga in 1975. Some strides in the area of housing were also undertaken, with 8,000 more housing units constructed in 1973/1974 than had been built under the previous National government in 1971/72. Special emphasis was given to the needs of the elderly and disabled when building new state housing. A 4.5% loan for those on incomes between $70 and $75 was introduced. In education, the government introduced a standard Student Bursary and improved school class ratios. Māori became an optional class in state schools for the first time, and tentative steps were taken to incorporate Māori culture into the state school system. The nations first Community College was also opened by
Minister of Education Phil Amos, which had been made possible by a new Education Act."
Environmental policy Kirk's government was more environmentally conscious than preceding ones. It was elected on a platform that included a strong endorsement of the ideals of
Save Manapouri campaign. In February 1973, Kirk honoured his election pledge and instructed the electricity department not to raise the level of
Lake Manapouri. He created an independent body, the Guardians of Lake Manapouri, Monowai, and Te Anau (composed of leading members of the protest) to oversee management of the lake levels.
Economic affairs Kirk appointed
Bill Rowling as
Minister of Finance. The Labour government enjoyed a record
budget surplus in its first year and revalued the currency. However, the slowing global economy, an unprecedented rise in oil prices and a rapid rise in government expenditure led to soaring inflation. A vicious
wage-price spiral began. In August 1973,
Minister of Labour Hugh Watt announced a wage stabilisation order of 8.5%, mirroring previous failed attempts by the preceding National government to introduce an
incomes policy. Kirk, hoping to encourage further wage moderation, instructed that a 45 per-cent increase in MP's salaries be halted. This did little to abate growing industrial unrest, with a major strike at the Tasman Pulp and Paper Mill in
Kawerau. While not a product of the Labour government itself, strikes intensified due to soaring inflation.
Immigration The Kirk government attracted controversy in March 1974 for starting the
Dawn Raids, a series of police raids that primarily targeted
Pasifika peoples for overstaying. The government stopped the raids and issued an amnesty in April 1974, but they were later restarted by the
Muldoon Government. ==Illness and death==