...And Now Social Democracy
List of Prime Ministers of New Zealand
1981-1984: Robert Muldoon (National with C&S from Social Credit)
1981 def: Bill Rowling (Labour), Bruce Beetham (Social Credit)
1984-1988: David Lange (Labour)
1984 def: Robert Muldoon (National), Bruce Beetham (Social Credit)
1987 def: Jim Bolger (National), Les Hunter (Democrats)
1988-1990: Jim Anderton (Labour)
1990-1992: Jim Bolger (National)
1990 def: Jim Anderton (Labour), Les Hunter (Democrats)
1992-1993: Winston Peters (National)
1993-1996: Annette King (Labour-Democrats coalition)
1993 def: Winston Peters (National), Terry Heffernan (Democrats)
1996-2008: Maurice Williamson (National)
1996 def: Annette King (Labour), Terry Heffernan (Democrats)
Bruce Beetham
Beetham had swept to the leadership of Social Credit in 1972, as part of a wave of young, liberal activists washing over the old factions (Orthodox Creditists, social conservatives, anti-Semites, etc.). He had been a breath of fresh air in New Zealand politics, and despite pursuing a long-term strategy of replacing Labour, his greatest success came in the rural National electorate of Rangitikei, which he first won in a by-election in 1978. By 1981, though, the novelty was beginning to wear off. He was getting increasingly involved in debilitating arguments about what Social Credit actually was, and despite polling 31% in 1980, only the seats of Rangitikei, East Coast Bays and Bay of Islands were won in 1981. The magic touch wore off even more when it became apparent that these results had created a Hung Parliament, in which Beetham would actually be forced to use the 'Balance of Responsibility' which he had always dreamed of exerting. In the end, he (and his caucus: centrist liberal Gary Knapp and centre-left economic guru Les Hunter) resolved to support Muldoon from afar. The weakened National Party in fact walked all over Social Credit, apart from the occasion of the vote on the Clyde Dam, in which Beetham's party forced the Government to build a low dam instead of a high one. It was not a resounding victory, and in 1984 the Socreds lost over half of their vote despite holding on to the seats of Knapp and Hunter and gaining Pakuranga, but not that of Beetham. They were attacked from the Right by the emergence of Bob Jones' NZ Party, and from the Left by the genuinely charismatic David Lange, killing any chance they had of fulfilling Beetham's dream of replacing Labour.
Les Hunter
Hunter was of the same generation as Beetham, and served as his economic expert (for a very broad definition of 'expert') right up 1984. At this point, he realised that replacing Labour was a doomed endeavour while the trade unions were still wedded to their standard-bearers, and in the Annual Conference he challenged Beetham with a daring plan to target the rural vote with environment-centred messaging and cheap credit for farmers. He was supported in this by his fellow MP, Garry Knapp, largely because Knapp had a personal dislike of Beetham. The delegates were convinced, and Beetham was sent on his way, going on to stand in Rangitikei for various parties until his death. The 1985 Conference also approved a name-change to the 'NZ Democratic Party' so that they would no longer have to answer difficult questions about Social Credit. Hunter was the only person who could deal with these questions with any confidence, and even then, he would routinely mystify anyone foolish enough to ask him.
The 1987 election was a terrible time for third parties compared to the last few elections: people often forget that there was a time when fewer than 90% of the electorate went with either Labour or National. Recognising this in the polls, Hunter arranged an electoral alliance with the Values Party - an alliance that ended up in a full merger in 1988 and probably saved the Democrats' bacon. The other saving factor was the retention of Knapp's East Coast Bays seat and the gain of Wanganui with perennial candidate Terry Heffernan (although both Neil Morrison in Pakuranga, and Les Hunter himself, were unseated). Hunter held on to the leadership despite being out of Parliament, and made quite a name for himself in so doing - he publicly backed Jim Anderton's putsch against David Lange, which gained headlines as the media caught up to the fact that the Democrats were, at that moment, economically to the left of Labour.
Anderton won the Labour leadership, but was not able to reverse the economic reforms that had already been undertaken, and his efforts resulted only in the flattening of the economic boom of the 1980s and the nose-dive in Labour's popularity. The main beneficiary was National, but the Democrats took their own reward, with 9% of the vote going their way. Other parties, such as Mana Motuhake and Beetham's 'Continuity Social Credit', flopped. However, the targetting strategy of the Beetham years had now rather fallen by the wayside, meaning that the only gain was Hunter re-entering Parliament on behalf of the hippies of the Coromandel. Fatigue among the members, along with Hunter's lack of personal charisma and tendency to go off on meandering rants about monetary reform, ejected him from the leadership.
Terry Heffernan
The new leader was Terry Heffernan, a centre-right liberal with a frightening ability to remember incriminating details, who had turned Wanganui into his own personal fiefdom. He generally moved the Democrats to the right socially, and despite his lack of concern for environmental matters, his economic nationalism satisfied the former Values members for the time being. His big chance came in 1993, when for the second time in a generation, the statistically unlikely result of a Hung Parliament eventuated - National had squandered a large majority by infighting over the extent to which Finance Minister Winston Peters would be allowed to buy back privatised land and assets. Eventually, Peters challenged Jim Bolger in caucus and won, but at the cost of the election (in which National admittedly won both the popular vote and 49 seats). Heffernan, naturally, preferred to support Peters, but this was vetoed by the only other Democrat MP, Les Hunter, who was a vocal supporter of Annette King. This was effectively the end of the Party, as for the next three years both MPs toed the Labour line on all matters while two internal factions within their party slowly tore each other to shreds.
In the end, neither the Hunterites nor the Heffernanites won out: both figures lost their seats in the 1996 National landslide, with the only Democrat elected being Frank Grover, an anti-abortion activist and staunch Heffernanite, in Hobson. Both Grover and Jeanette Fitzsimons (a Hunter protege) challenged Heffernan for the leadership at the next Conference. Fitzsimons won on Heffernanite second preferences due to Grover's perceived disloyalty - and Grover proved them right by defecting to Bruce Beetham's Christian Heritage Party the following day.
That was really the end of the Democrats, and of third parties in general in NZ: Fitzsimons came second in Coromandel in 1999, Laila Harré equalled her in Titirangi in 2002, and the only other third party results of significance are the distressingly good Christian Heritage tallies in East Coast Bays over the last few elections.
Perhaps New Zealand just isn't large enough to support more than two parties.