Davy and the United Party

A.E. Davy was also offended. Davy approached disgruntled businessmen and formed the United New Zealand Political Organisation. This new group co-operated with the remnants of the Liberal Party led by Forbes and Veitch. Largely at Davy's instigation the UNZPO and the Liberals united to from the United Liberal Party under the leadership of the leader statesman, Sir Joseph Ward.

Davy gained sufficient funds from business men and also the support of the 'Kelly gang' which ensured electoral success for the new Party. The programme of the revived Liberals was carefully planned to appeal to the business community. The result was that the election was an upset victory for the Liberals. In 1925 the Liberals had received 7% of the votes in Auckland and got no seats. In 1928, with business backing, they got 30% of the vote.

The vacillation between the established bourgeois parties, which was accompanied by a trend to the Labour Party in the 1930's, was a reflection of the economic crisis in New Zealand. In 1928 Ward promised to borrow $70,000,000 and usher in a new era of expansion. Instead, the stagnation of the previous Reform Government was transformed into depression. In order to keep out Labour, the Liberals and Reform formed a coalition government after the 1931 election. The reactionary policies of the Liberals of wage cuts and Government spending cuts, dictated by economic necessity under capitalism, was continued by the coalition. The coalition passed the National Expenditure Adjustment Act in 1932 in order to cut spending on all manner of Government projects and social services. They continued wage cutting.

When these reactionary measures brought about growing class conflict, they passed legislation to repress civil liberties. One of the most important pieces of legislation passed was the Public Safety Conservation Act 1932. It was passed 12 days after the first outbreak of rioting in Dunedin. The Act provides the means to suspend all civil liberties and to rule through regulation, for the open rule by force of over the working people.