New Zealand Democratic Party
Encyclopedia
The New Zealand Democratic Party for Social Credit (formerly the New Zealand Democratic Party and New Zealand Social Credit Party) is a small leftist political party
Political party
A political party is a political organization that typically seeks to influence government policy, usually by nominating their own candidates and trying to seat them in political office. Parties participate in electoral campaigns, educational outreach or protest actions...

 in New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

. It is based around the ideas of Social Credit
Social Credit
Social Credit is an economic philosophy developed by C. H. Douglas , a British engineer, who wrote a book by that name in 1924. Social Credit is described by Douglas as "the policy of a philosophy"; he called his philosophy "practical Christianity"...

, an economic theory which also attracted some degree of support in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 and Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

. The party does not currently hold any seats in parliament, although it has previously held two. Democratic Party members also held seats when the party was part of the Alliance
Alliance (New Zealand political party)
The Alliance is a left-wing political party in New Zealand. It was formed in 1991, and was influential in the 1990s, but has since declined and has no representation in parliament. It suffered a major setback after Jim Anderton, the party's leader, left the party in 2002, taking several of the...

. The party was formerly known as the Social Credit Party
Social Credit Party (New Zealand)
The New Zealand Social Credit Party was a political party which served as the country's "third party" from the 1950s through into the 1980s. The party held a number of seats in the New Zealand Parliament, although never more than two at a time...

, and was for many years the largest minor party in New Zealand politics. The party's economic policy is still based on Social Credit
Social Credit
Social Credit is an economic philosophy developed by C. H. Douglas , a British engineer, who wrote a book by that name in 1924. Social Credit is described by Douglas as "the policy of a philosophy"; he called his philosophy "practical Christianity"...

 theories, while in social matters, the party takes a position similar to progressive liberal parties elsewhere.

Policies

The Democratic Party describes its foremost goal as being the recovery of "economic sovereignty". This will be accomplished, the party says, by "the reform of the present monetary system, which is the major cause of war, poverty, inflation and many other social problems." The reforms promoted by the Democratic Party are based on the ideas of Social Credit
Social Credit
Social Credit is an economic philosophy developed by C. H. Douglas , a British engineer, who wrote a book by that name in 1924. Social Credit is described by Douglas as "the policy of a philosophy"; he called his philosophy "practical Christianity"...

. The party emphasises "economic democracy
Economic democracy
Economic democracy is a socioeconomic philosophy that suggests a shift in decision-making power from a small minority of corporate shareholders to a larger majority of public stakeholders...

", claiming that New Zealand's economy must be reclaimed from the control of financiers, bankers, and money-lenders.

The Democratic Party also supports taxation reform, including the removal of the Goods and Services Tax
Goods and Services Tax (New Zealand)
Goods and Services Tax is a value added tax introduced in New Zealand on 1 October 1986 at 10%. It later increased to 12.5% on 1 July 1989 and was further increased to 15% on 1 October 2010....

 (GST), and the imposition of a tax on financial transactions (a Tobin tax
Tobin tax
A Tobin tax, suggested by Nobel Laureate economist James Tobin, was originally defined as a tax on all spot conversions of one currency into another...

). They also support the introduction of a Universal Basic Income (see external link below).

The Democratic Party states that "what is physically possible and desirable for the happiness of humanity can always be financially possible."

Origins (1985–1990)

The New Zealand Democratic Party was originally established as the Social Credit Political League, and in 1953 became the Social Credit Party
Social Credit Party (New Zealand)
The New Zealand Social Credit Party was a political party which served as the country's "third party" from the 1950s through into the 1980s. The party held a number of seats in the New Zealand Parliament, although never more than two at a time...

, contesting its first election in 1954.


The party renamed itself to the New Zealand Democratic party in 1985. At the time they held two seats in parliament - one was East Coast Bays, held by Gary Knapp
Gary Knapp
Garry Thomas Knapp was a New Zealand politician of the Social Credit Party.He became Member of Parliament for East Coast Bays in 1980 when he defeated National candidate Don Brash in the 1980 by-election in East Coast Bays caused by the resignation of the sitting National MP...

, and the other was Pakuranga, held by Neil Morrison
Neil Morrison
Neil Joseph Morrison was a New Zealand politician of the Social Credit Party.He won the Pakuranga seat in the 1984 election by 419 votes, from two-term MP Pat Hunt. Garry Knapp retained East Coast Bays, but the party leader Bruce Beetham lost his Rangitikei seat.In 1986 Beetham lost the leadership...

. Two years after the new name was adopted, in the 1987 elections
New Zealand general election, 1987
The 1987 New Zealand general election was a nationwide vote to determine the shape of the 43rd sitting of the New Zealand Parliament. The governing New Zealand Labour Party, led by Prime Minister David Lange, was re-elected for a second term, although the Opposition National Party made gains...

, the Democrats lost these two seats, removing them from parliament. In 1988, Gary Knapp and a group of other Democrats were involved in a protest at parliament, criticising the First Past the Post electoral system that prevented their success.

The Alliance (1990–2002)

The Democrats, finding themselves increasingly pressured by the growth of NewLabour
NewLabour Party (New Zealand)
NewLabour was a left-of-centre party founded in 1989 by Jim Anderton, an MP and former President of the New Zealand Labour Party.NewLabour was established by a number of Labour Party members who left the party in reaction to "Rogernomics", the economic policies implemented by the Labour Party's...

 (founded by rebel Labour Party
New Zealand Labour Party
The New Zealand Labour Party is a New Zealand political party. It describes itself as centre-left and socially progressive and has been one of the two primary parties of New Zealand politics since 1935....

 MP Jim Anderton
Jim Anderton
James Patrick Anderton, usually known as Jim Anderton , is the leader of the Progressive Party, a New Zealand political party. He has served in Parliament since 1984. He served as Deputy Prime Minister from 1999 to 2002 and is currently also the sitting Father of the House, the longest...

) and the Greens
Green Party of Aotearoa New Zealand
The Green Party of Aotearoa New Zealand is a political party that has seats in the New Zealand parliament. It focuses firstly on environmentalism, arguing that all other aspects of humanity will cease to be of concern if there is no environment to sustain it...

, opted to increase cooperation with compatible parties. This resulted in the Democrats joining NewLabour, the Greens, and Māori-based party Mana Motuhake
Mana Motuhake
Mana Māori Motuhake was a Māori political party in New Zealand. The name is difficult to translate accurately, but essentially refers to Māori self-rule and self-determination — mana, in this context, can be understood as "authority" or "power", while motuhake can be understood as...

 in forming the Alliance
Alliance (New Zealand political party)
The Alliance is a left-wing political party in New Zealand. It was formed in 1991, and was influential in the 1990s, but has since declined and has no representation in parliament. It suffered a major setback after Jim Anderton, the party's leader, left the party in 2002, taking several of the...

, a broad left-wing coalition group.

In the 1996 election
New Zealand general election, 1996
The 1996 New Zealand general election was held on 12 October 1996 to determine the composition of the 45th New Zealand Parliament. It was notable for being the first election to be held under the new Mixed Member Proportional electoral system, and produced a parliament considerably more diverse...

, which was conducted under the new Mixed member proportional representation
Mixed member proportional representation
Mixed-member proportional representation, also termed mixed-member proportional voting and commonly abbreviated to MMP, is a voting system originally used to elect representatives to the German Bundestag, and nowadays adopted by numerous legislatures around the world...

 (MMP) electoral system, the Alliance won thirteen seats. Among the MPs elected were John Wright
John Wright (politician)
John Wright is a former New Zealand politician. He was an MP from 1996 to 2002, representing the Alliance.Before entering Parliament he owned the Port-a-Loo company....

 and Grant Gillon
Grant Gillon
Grant Gillon is a New Zealand politician. He was a member of parliament between 1996 and 2002, representing the Alliance Party.-Career:Gillon's political career began when he joined the Democratic Party...

, both members of the Democratic Party.

However, there was considerable dissatisfaction in the Democratic Party over the Alliance's course. Many Democrats believed that their views were not being incorporated into Alliance policy, particularly as regards the core economic doctrine of Social Credit. The Alliance as a whole tended towards "orthodox" left-wing economics, and was not prepared to implement the Democratic Party's somewhat unusual economic theories.

By the 1999 election
New Zealand general election, 1999
The 1999 New Zealand general election was held on 27 November 1999 to determine the composition of the 46th New Zealand Parliament. The governing National Party, led by Prime Minister Jenny Shipley, was defeated, being replaced by a coalition of Helen Clark's Labour Party and the smaller Alliance...

, the Democrats were one of only two remaining parties in the Alliance: the Greens had left the grouping, and the Liberals and NewLabour components formally dissolved, their members becoming members of the Alliance as a whole rather than of any specific constituent party.

Progressive Coalition & independent again (2002 – present)

In 2002, when tensions between the "moderate left" and the "hard left" caused a split in the Alliance, the Democrats followed Jim Anderton's moderate faction and became a part of the Progressive Coalition
New Zealand Progressive Party
Jim Anderton's Progressive Party , is a New Zealand political party generally somewhat to the left of its ally, the Labour Party....

. In the 2002 elections
New Zealand general election, 2002
The 2002 New Zealand general election was held on 27 July 2002 to determine the composition of the 47th New Zealand Parliament. It saw the reelection of Helen Clark's Labour Party government, as well as the worst-ever performance by the opposition National Party.Arguably the most controversial...

, Grant Gillon and John Wright were placed third and fourth on the party's list. The Progressives, however, won only enough votes for two seats, thus leaving the two Democrats outside parliament.

Shortly after the election, the Democrats split from the Progressives, re-establishing themselves as an independent party. However, Grant Gillon (the party's leader) and John Wright, both of whom opposed the split, chose not to follow the Democrats, instead remaining with the Progressives. The Progressive Coalition became the Progressive Party
New Zealand Progressive Party
Jim Anderton's Progressive Party , is a New Zealand political party generally somewhat to the left of its ally, the Labour Party....

 after the Democrats left. The Democrats chose Stephnie de Ruyter
Stephnie de Ruyter
Stephnie de Ruyter is the leader of the New Zealand Democratic Party, a small left-wing New Zealand political party. The Democrats are currently outside Parliament....

, who had been fifth on the Progressive list, as their new leader.

In 2005, the party added "for Social Credit" to its official name. The Democrats contested that year's general election
New Zealand general election, 2005
The 2005 New Zealand general election held on 17 September 2005 determined the composition of the 48th New Zealand Parliament. No party won a majority in the unicameral House of Representatives, but the Labour Party of Prime Minister Helen Clark secured two more seats than nearest rival, the...

 as an independent party but only managed to receive 0.05% of the party vote. The party fared no better in the 2008 general election
New Zealand general election, 2008
The 2008 New Zealand general election was held on 8 November 2008 to determine the composition of the 49th New Zealand parliament. The conservative National Party, headed by its Parliamentary leader John Key, won a plurality of votes and seats, ending 9 years of government dominated by the social...

, again winning just 0.05% of the party vote.

The party did not apply for broadcasting funding for the 2011 election
New Zealand general election, 2011
The 2011 New Zealand general election on Saturday 26 November 2011 determined the membership of the 50th New Zealand Parliament.One hundred and twenty-one MPs were elected to the New Zealand House of Representatives, 70 from single-member electorates, including one overhang seat, and 51 from party...

. During the election, it won just 1,432 votes, and was the only party to have an electorate candidate attract no votes.

Electoral results

Election # of candidates nominated (electorate/list) # of seats won # of votes % of popular vote
1987
New Zealand general election, 1987
The 1987 New Zealand general election was a nationwide vote to determine the shape of the 43rd sitting of the New Zealand Parliament. The governing New Zealand Labour Party, led by Prime Minister David Lange, was re-elected for a second term, although the Opposition National Party made gains...

97/0
0
105,091
5.7%
1990
New Zealand general election, 1990
The 1990 New Zealand general election was held on 27 October to determine the composition of the 43rd New Zealand parliament. The governing Labour Party was defeated, ending its controversial two terms in office...

91/0
0
30,455
1.67%
1993
New Zealand general election, 1993
The 1993 New Zealand general election was held on 6 November 1993 to determine the composition of the 44th New Zealand Parliament. It saw the governing National Party, led by Jim Bolger, win a second term in office, despite a major swing back towards the Labour Party. The new Alliance and New...

 - 1999
New Zealand general election, 1999
The 1999 New Zealand general election was held on 27 November 1999 to determine the composition of the 46th New Zealand Parliament. The governing National Party, led by Prime Minister Jenny Shipley, was defeated, being replaced by a coalition of Helen Clark's Labour Party and the smaller Alliance...

Part of the Alliance
Alliance (New Zealand political party)
The Alliance is a left-wing political party in New Zealand. It was formed in 1991, and was influential in the 1990s, but has since declined and has no representation in parliament. It suffered a major setback after Jim Anderton, the party's leader, left the party in 2002, taking several of the...

2002
New Zealand general election, 2002
The 2002 New Zealand general election was held on 27 July 2002 to determine the composition of the 47th New Zealand Parliament. It saw the reelection of Helen Clark's Labour Party government, as well as the worst-ever performance by the opposition National Party.Arguably the most controversial...

Part of the Progressive Coalition
New Zealand Progressive Party
Jim Anderton's Progressive Party , is a New Zealand political party generally somewhat to the left of its ally, the Labour Party....

2005
New Zealand general election, 2005
The 2005 New Zealand general election held on 17 September 2005 determined the composition of the 48th New Zealand Parliament. No party won a majority in the unicameral House of Representatives, but the Labour Party of Prime Minister Helen Clark secured two more seats than nearest rival, the...

5/29
0
1,079
0.05%
2008
New Zealand general election, 2008
The 2008 New Zealand general election was held on 8 November 2008 to determine the composition of the 49th New Zealand parliament. The conservative National Party, headed by its Parliamentary leader John Key, won a plurality of votes and seats, ending 9 years of government dominated by the social...

14 / 31
0
1,208
0.05%
2011
New Zealand general election, 2011
The 2011 New Zealand general election on Saturday 26 November 2011 determined the membership of the 50th New Zealand Parliament.One hundred and twenty-one MPs were elected to the New Zealand House of Representatives, 70 from single-member electorates, including one overhang seat, and 51 from party...

14 / 24
0
1,432
0.07%

Parliamentary Party Leader

  • Bruce Beetham
    Bruce Beetham
    Bruce Craig Beetham was an academic and politician from New Zealand, whose career spanned the 1970s and early 1980s.A lecturer at Hamilton's University of Waikato and at the Hamilton Teacher's Training College, he was elected leader of the Social Credit Party in 1972, at a time when the party was...

     (1985–1986)
  • Neil Morrison
    Neil Morrison
    Neil Joseph Morrison was a New Zealand politician of the Social Credit Party.He won the Pakuranga seat in the 1984 election by 419 votes, from two-term MP Pat Hunt. Garry Knapp retained East Coast Bays, but the party leader Bruce Beetham lost his Rangitikei seat.In 1986 Beetham lost the leadership...

     (1986–1991)
  • John Wright
    John Wright (politician)
    John Wright is a former New Zealand politician. He was an MP from 1996 to 2002, representing the Alliance.Before entering Parliament he owned the Port-a-Loo company....

     (1991–2001)
  • Grant Gillon
    Grant Gillon
    Grant Gillon is a New Zealand politician. He was a member of parliament between 1996 and 2002, representing the Alliance Party.-Career:Gillon's political career began when he joined the Democratic Party...

     (2001–2002)
  • Stephnie de Ruyter
    Stephnie de Ruyter
    Stephnie de Ruyter is the leader of the New Zealand Democratic Party, a small left-wing New Zealand political party. The Democrats are currently outside Parliament....

     (2002–present)

Members of Parliament

  • John Wright
    John Wright (politician)
    John Wright is a former New Zealand politician. He was an MP from 1996 to 2002, representing the Alliance.Before entering Parliament he owned the Port-a-Loo company....

     (1996–2002)
  • Grant Gillon
    Grant Gillon
    Grant Gillon is a New Zealand politician. He was a member of parliament between 1996 and 2002, representing the Alliance Party.-Career:Gillon's political career began when he joined the Democratic Party...

    (1996–2002)

External links

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