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New Zealand Labour Party leadership election, 1940

New Zealand Labour Party leadership election, 1940
First NZ Labour Logo.jpg
← 1933 4 April 1940 1951 →
  Peter Fraser.jpg Gervan McMillan.jpg Clyde Carr.jpg
Candidate Peter Fraser Gervan McMillan Clyde Carr
Leader's seat Wellington Central Dunedin West Timaru
Popular vote 33 12 3
Percentage 68.7% 25.0% 6.2%

Leader before election

Michael Joseph Savage

Leader after election

Peter Fraser


Michael Joseph Savage

Peter Fraser

The New Zealand Labour Party leadership election, 1940 was held on 4 April 1940 to choose the fourth leader of the New Zealand Labour Party. The election was won by Wellington Central MP Peter Fraser.

It followed the death of incumbent Labour leader and Prime Minister Michael Joseph Savage.

Despite governing with a healthy majority, Labour was facing antagonism from within its own ranks. The Labour Party had been overtly socialist at its inception, it had gradually drifted away from its earlier radicalism under Savage. Labour MP, John A. Lee, whose outlooks were a combination of socialism and social credit theory, arose as a vocal critic of the party's leadership, accusing it of acting dictatorially and of betraying the party's founding ideals.

After a long and bitter dispute, Lee was expelled from the party by Fraser, establishing the breakaway Democratic Labour Party. Only one other sitting Labour MP, Bill Barnard joined, though many others were sympathetic and gave serious consideration.

Fraser had been an MP since 1918. He had served as Michael Joseph Savage's deputy since 1933 and by Savage's death he was effectively holding the office of Prime Minister during the former's battle with colon cancer.

Gervan McMillan was nominated for the leadership by his close colleague and friend from Otago, Arnold Nordmeyer. He was a staunch supporter of John A. Lee in an increasingly divided caucus. McMillan was of the opinion that Labour's leadership was too conservative and cautious, especially on financial issues. Like Lee, he sponsored a greater use of credit and to further encourage local industries.

Carr had previously served as Labour's party president (1936-1937). After Labour won office in 1935, Carr was not given any ministerial portfolios. As a result, he had become somewhat of a dissident in the Labour caucus. Carr, like McMillan, was also an open sympathiser of John A. Lee's


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