United Party (New Zealand) - Coalition

Coalition

In 1931 the United government passed a number of economic measures which appeared unfavourable to workers, and the Labour Party withdrew its support. The United Party continued in office with reluctant support from the Reform Party, which feared that a collapse of government (and thus a general election) would see large gains for Labour. Later the same year, formal coalition talks took place between United, Reform, and Labour, with a "unity government" proposed to counter the depression. Labour eventually walked out of the talks, but Reform leader Gordon Coates (pressed by Downie Stewart) eventually agreed to form a coalition. Forbes, backed by dissident members of Reform, managed to win the leadership of the coalition government, but Downie Stewart of Reform became the Minister of Finance.

In the 1931 elections, the coalition worked in close co-operation, and won fifty-one out of the eighty seats. United and Reform between them had held a few more seats before, but their combined tally exceeded what many had anticipated in light of the economic conditions. The government did not exhibit great stability, however — particularly strong tensions arose between Coates and Downie Stewart, who clashed over the best response to the country's economic problems. Coates eventually won, and Stewart resigned. Coates, as the new Minister of Finance, became increasingly powerful, and the weary Forbes did not strongly oppose Coates's influence; while Forbes remained Prime Minister, Coates effectively led the government. The economic situation persisted.

In the 1935 elections, the coalition of United and Reform once again worked together. Anger at the country's ongoing economic problems remained high, however, and many saw Forbes and Coates as jointly responsible for the situation. In addition, Albert Davy had founded a new "anti-socialist" party, the Democrats, which took votes away form the coalition. Forbes, still the nominal leader of the coalition, appeared tired and apathetic. These factors all added up to a decisive defeat of the coalition by the Labour Party, and the appointment of Michael Joseph Savage as New Zealand's first Labour Prime Minister.