Third National Government of New Zealand

The Third National Government of New Zealand (also known as the Muldoon government) was the government of New Zealand from 1975 to 1984. It was an economically and socially conservative government, which aimed to preserve the Keynesian economic system established by the First Labour government while also being socially conservative. Throughout its three terms it was led by Robert Muldoon, a populist but antagonistic politician who was sometimes described as his party's best asset and worst liability.

By 1975, New Zealand had a generous welfare system, which included unemployment and sickness benefits, a benefit for single parents (the DPB) and a means tested old-age pension from the normal retirement age of 60 plus a Universal pension from 65 years.

The third National government scrapped Labour's contributory scheme and introduced National Superannuation, a non means tested pension available to all New Zealand citizens over the age of 60, linked to the average wage (initially 70% with the intention of increasing it to 80%). This was enormously expensive, costing NZ$2.5 billion per annum by 1984, but nevertheless far more popular than Labour's alternative of a Singaporean Central Provident Fund-style set of individualised compulsory savings.

The government continued the generally interventionist economic policies of previous governments in New Zealand. Although there was some pressure on Prime Minister and Finance Minister Robert Muldoon to take steps towards liberalising the economy, he was reluctant to do so as he felt that such moves would hurt ordinary New Zealanders. Such steps towards liberalisation made during this government's term were generally the initiatives of other politicians.

In 1980, the government launched the Think Big programme of large-scale industrial projects, mainly based around energy projects, to reduce New Zealand's dependence on foreign energy. This was a response to the oil shocks (1973 and 1979) of the 1970s, which dramatically raised the price of oil. Cabinet Minister Derek Quigley publicly criticised the Think Big policy and was demoted from Cabinet.

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