Black Budget (New Zealand)

Black Budget1958 Budgetcould not afford
In New Zealand, the term Black Budget refers to the government budget of 26 June 1958, in which Minister of Finance Arnold Nordmeyer increased taxes on beer, tobacco, cars and petrol.wikipedia
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Second Labour Government of New Zealand

Second Labour GovernmentLabour GovernmentSecond Labour
The second Labour government took office in 1957, the 32nd Parliament.
Labour's biggest problem in the 1960 election was the 'Black Budget' of 1958.

Arnold Nordmeyer

Arnold Henry NordmeyerSir Arnold NordmeyerFrances Maria, Lady Nordmeyer
In New Zealand, the term Black Budget refers to the government budget of 26 June 1958, in which Minister of Finance Arnold Nordmeyer increased taxes on beer, tobacco, cars and petrol. The budget was prepared by the cabinet finance committee of Walter Nash, Arnold Nordmeyer, Phil Holloway and Tom Skinner.
His first Budget (generally known as "the Black Budget") introduced a number of unpopular changes, including significant tax increases.

Walter Nash

NashSir Walter Nash The Right Honourable '''Walter Nash
Nordmeyer's colleagues were reluctant to cut government spending or break expensive election promises, so Nordmeyer was left with little option but to raise taxes, which was recommended by both the Treasury and Prime Minister Walter Nash (himself a former Minister of Finance). The budget was prepared by the cabinet finance committee of Walter Nash, Arnold Nordmeyer, Phil Holloway and Tom Skinner.
The Second Labour Government's "Black Budget" of 1958, in response to a balance of payments crisis, increased taxes on luxuries such as beer and tobacco.

New Zealand Labour Party

Labour PartyLabourLabour Government
The budget increased social security benefits but was very unpopular, not least with Labour's traditional working-class supporters.
This resulted in the highly unpopular "Black Budget" of Arnold Nordmeyer, the new Minister of Finance, which raised taxes on alcohol, cigarettes, cars, and petrol.

New Zealand National Party

National PartyNationalThe National Party
The term 'black budget' is believed to have been coined by union leader Fintan Patrick Walsh, but was taken up by the National Party opposition, and became the commonly used term for the budget.
Nash's government became very unpopular as Labour acquired a reputation for poor economic management, and much of the public saw its 1958 Budget, known since as the "Black Budget", as miserly.

1960 New Zealand general election

19601960 election1960 general election
The government's popularity never recovered from the budget, which is generally believed to have cost it the 1960 election.
The so-called "Black Budget", introduced by Arnold Nordmeyer, increased taxes substantially, with particularly large increases for alcohol and tobacco taxes; Labour became widely seen as both miserly and puritanical.

Mick Moohan

Michael MoohanMoohan Rocket
In caucus the measures were criticised by Michael Moohan, Frank Kitts and Bill Fox and, despite his cabinet position, Moohan continued to agitate against the beer price rise in private.
Despite his cabinet ranking, Moohan was one of a group of three Labour MPs (the others being Bill Fox and Frank Kitts) who were deeply critical of the decisions made in the "Black Budget".

Frank Kitts

Frank Kitts ParkFrancis Joseph KittsIris May, Lady Kitts
In caucus the measures were criticised by Michael Moohan, Frank Kitts and Bill Fox and, despite his cabinet position, Moohan continued to agitate against the beer price rise in private.
Kitts was one of a group of three Labour MPs (the others being Mick Moohan and Bill Fox) who were deeply critical of the decisions made in the "Black Budget".

Bill Fox (politician)

Bill FoxWilliam Arthur Fox
In caucus the measures were criticised by Michael Moohan, Frank Kitts and Bill Fox and, despite his cabinet position, Moohan continued to agitate against the beer price rise in private.
Despite his cabinet ranking, Fox was one of a group of three Labour MPs (the others being Mick Moohan and Frank Kitts) who were deeply critical of the decisions made in the "Black Budget".

Heineken brands

PelforthZagorka BreweryCruzcampo
In 2010, DB Breweries ran an advertising campaign attributing the creation of one of its brands, DB Export Gold to the increased taxes on beer introduced by the 'black budget'.
Export Gold was first brewed as DB Export as a result of the "Black Budget" from then Minister of Finance Arnold Nordmeyer which imposed extremely high duty on imported premium lagers, though the extent to which the 'black budget' influenced the creation of DB Export is currently under dispute.

New Zealand

NZLNZKiwi
In New Zealand, the term Black Budget refers to the government budget of 26 June 1958, in which Minister of Finance Arnold Nordmeyer increased taxes on beer, tobacco, cars and petrol.

Government budget

budgetstate budgetnational budget
In New Zealand, the term Black Budget refers to the government budget of 26 June 1958, in which Minister of Finance Arnold Nordmeyer increased taxes on beer, tobacco, cars and petrol.

Minister of Finance (New Zealand)

Minister of FinanceFinance MinisterColonial Treasurer
In New Zealand, the term Black Budget refers to the government budget of 26 June 1958, in which Minister of Finance Arnold Nordmeyer increased taxes on beer, tobacco, cars and petrol.

Beer

brewing industrybrewingbeers
In New Zealand, the term Black Budget refers to the government budget of 26 June 1958, in which Minister of Finance Arnold Nordmeyer increased taxes on beer, tobacco, cars and petrol.

Tobacco

tobacco leavessnufftobacco leaf
In New Zealand, the term Black Budget refers to the government budget of 26 June 1958, in which Minister of Finance Arnold Nordmeyer increased taxes on beer, tobacco, cars and petrol.

Car

automobileautomobilescars
In New Zealand, the term Black Budget refers to the government budget of 26 June 1958, in which Minister of Finance Arnold Nordmeyer increased taxes on beer, tobacco, cars and petrol.

Gasoline

petrolgasleaded gasoline
In New Zealand, the term Black Budget refers to the government budget of 26 June 1958, in which Minister of Finance Arnold Nordmeyer increased taxes on beer, tobacco, cars and petrol.

Balance of payments

balance of paymentbalance-of-paymentsaccount balance
Within a year, the government was confronted with a balance of payments crisis caused by the collapse of the price of butter in Britain (New Zealand's largest export market at the time).

United Kingdom

BritishUKBritain
Within a year, the government was confronted with a balance of payments crisis caused by the collapse of the price of butter in Britain (New Zealand's largest export market at the time).

Election promise

campaign promisepolitical manifestocampaign pledge
Nordmeyer's colleagues were reluctant to cut government spending or break expensive election promises, so Nordmeyer was left with little option but to raise taxes, which was recommended by both the Treasury and Prime Minister Walter Nash (himself a former Minister of Finance).

Working class

working-classlower classworkers
The budget increased social security benefits but was very unpopular, not least with Labour's traditional working-class supporters.

Fintan Patrick Walsh

The term 'black budget' is believed to have been coined by union leader Fintan Patrick Walsh, but was taken up by the National Party opposition, and became the commonly used term for the budget.

Phil Holloway

Philip North Holloway
The budget was prepared by the cabinet finance committee of Walter Nash, Arnold Nordmeyer, Phil Holloway and Tom Skinner.

Tom Skinner

Thomas Edward Skinner
The budget was prepared by the cabinet finance committee of Walter Nash, Arnold Nordmeyer, Phil Holloway and Tom Skinner.