Ruth Richardson

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For the member of the Minnesota House of Representatives, see Ruth Richardson (American politician).

The Honourable
Ruth Richardson
Richardson in 1991
37th Minister of Finance
In office
2 November 1990 – 29 November 1993
Prime MinisterJim Bolger
Preceded byDavid Caygill
Succeeded byBill Birch
Member of the New Zealand Parliament
for Selwyn
In office
28 November 1981 – 18 July 1994
Preceded byColin McLachlan
Succeeded byDavid Carter
Personal details
Born (1950-12-13) 13 December 1950 (age 73)
Taranaki, New Zealand
Political partyNational
RelationsGeorge Pearce (great-grandfather)

Ruth Margaret Richardson[1] (born 13 December 1950) is a retired New Zealand politician of the National Party who served as Minister of Finance from 1990 to 1993. Her 1991 budget, which she dubbed the "Mother of all Budgets", formed the catalyst for her party's economic reforms known in the media as "Ruthanasia".

Richardson was a lawyer by profession. She was elected as the Member of Parliament (MP) for

privatisation of state assets and cuts to social welfare, contributed to New Zealand emerging from its fiscal problems. However, critics have noted the wide-ranging effects on New Zealand's social fabric including child poverty
along with wealth inequality, which were both severely exacerbated.

Richardson was dismissed as Finance Minister following the 1993 election; she resigned from Parliament in 1994. She later joined ACT New Zealand.

Early life

Richardson was born in southern

Wanganui.[2]

Richardson decided on a career in Parliament at an early age, before she even left high school. Sir Roy Jack, a National Party MP and a friend of her family, advised her to study law, which she did. Richardson gained a law degree from the University of Canterbury. After graduating, she worked for the Department of Justice.[2] In 1975, Richardson married Andrew Wright, a colleague from the Department.[3]

Richardson's first attempt to break into politics came when she challenged Sir Roy Jack for the National Party nomination in the

George Chapman who chaired the selection said, "The tensions were tremendous, but Roy was finally confirmed as the candidate."[4] She was a member of the non-partisan political lobby organisation the Women's Electoral Lobby.[5]

In 1978, Richardson contested the National Party's nomination for the Tasman seat. She won the nomination, but in the 1978 election itself, she failed to defeat incumbent Labour MP Bill Rowling (who was leader of his party at the time). In 1980, she was invited to contest the nomination for Selwyn, a National safe seat just outside Christchurch which was held by retiring MP Colin McLachlan. She won the nomination, and in the 1981 election, was elected to Parliament.[2]

Early parliamentary career

New Zealand Parliament
Years Term Electorate Party
1981–1984 40th Selwyn National
1984–1987 41st Selwyn National
1987–1990 42nd Selwyn National
1990–1993 43rd Selwyn National
1993–1994 44th Selwyn National

Richardson was influenced by the

privatisation, and trade liberalisation.[2] This contrasted considerably with the views held by National Party Prime Minister Robert Muldoon, who favoured an interventionist approach based on significant overseas borrowing.[2]
Richardson's focus on financial matters was itself a cause for comment, as many female MPs (particularly in the National Party) had confined themselves to matters such as health and social welfare.

When National lost the 1984 election, Richardson became a member of the

privatisation of state assets, the removal of tariffs and subsidies, and applying monetarism
to control inflation. These reforms were seen by many in the Labour Party as being against the traditional policies of the left-wing Labour Party, but were also opposed by the more conservative wings of the National Party. Particularly hostile were followers of Robert Muldoon, a traditionalist conservative who opposed free market reforms as undermining state authority.

Shortly after National's electoral loss, Jim McLay replaced Muldoon as leader of the National Party and he appointed Richardson education spokesperson.[6] In February 1986 there was a considerable rearrangement of responsibilities in the opposition. People such as Bill Birch and George Gair, who McLay associated with the Muldoon era, were demoted. They were replaced by newer MPs, such as Richardson and Simon Upton, who McLay believed would help revitalise the party. This move proved fatal to McLay personally, however, as the sacked Birch and Gair allied themselves with McLay's rival, Jim Bolger. Bolger ousted McLay and became party leader.[7]

The change in leadership was damaging for Richardson, as Bolger (and many of his allies) strongly disliked her. This dislike was due to three main factors: anger at McLay's "favouritism" towards her, dislike of her advocacy for radical free-market economic policies, and dislike of her personality (which many colleagues found "abrasive" and "condescending"). When George Gair (elevated for his role in Bolger's rise to power) retired from the position of deputy leader, Richardson stepped forward for the position. Bolger, however, made it clear that he strongly opposed Richardson's candidacy, instead throwing his support behind Don McKinnon. McKinnon narrowly defeated Richardson by just one vote and became deputy leader.[8]

Bolger did, however, make Richardson the party's spokesperson on finance in recognition of her strong showing for the deputy leadership. This was an attempt to pacify Richardson and her supporters, rather than an expression of confidence in her – it was well known that Bolger himself preferred the more cautious Bill Birch for the finance role. The move to defuse tension was only partially successful, and hostility between supporters of Bolger and supporters of Richardson remained. Many National politicians believed that Richardson sought to replace Bolger as leader, but even if Bolger was vulnerable, the two factions that opposed him (one led by Richardson and the other led by Winston Peters) were unwilling to cooperate. Bolger's leadership remained secure, and when his popularity rose, the window of opportunity was lost.[citation needed]

When Richardson gave birth during a recess in the 1980s, she had a room in Parliament set aside for her to breastfeed in (although a creche was not established until the 1990s).[9][10]

Minister of Finance

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When National came to power in the

superannuation
(and even increased the rate of the surcharge from 20 to 25 per cent and lowered the tax exemption threshold).[12]

Whilst employment law reform had been expressed in the 1990 manifesto, many National Party supporters, and some of its parliamentary caucus, were disappointed at the continuation of the policies established by Douglas. Richardson's first Budget, which she had jokingly dubbed the "Mother of all Budgets"—a term that would haunt her political career—compounded this unpopularity, as it significantly cut state spending in many areas as an attempt to bring deficits under control.[11] Her policies were widely known as "Ruthanasia".[13]

While she remained Finance Minister for the whole three-year term of the first Bolger government, this was a period marked by increasing tension within the Cabinet. Tax policy was an area where Richardson and the more moderate members of the Cabinet often failed to agree even the basics.[citation needed]

Although National was re-elected in the

New Zealand Suffrage Centennial Medal.[15]

Legacy

Though her period as Finance Minister was comparatively short, Richardson's legacy in subjects such as

financial crisis of 2007–2008 and the Christchurch earthquake in 2011, where most comparable governments like Australia and Canada, or larger countries such as the UK and US, have a negative net worth.[20]

The 2021 New Zealand budget presented by the Sixth Labour Government boosted levels for beneficiaries by the highest amount in decades [21] in what was framed as a direct response to Richardson's 1991 "Mother of all Budgets" by largely restoring benefit levels. During the budget day speech, finance minister Grant Robertson pointed out that it had been 30 years since the 1991 budget saying that the 2021 budget would "address the most inequitable of the changes made 30 years ago." Prime Minister Jacinda Ardern commented that "On too many occasions in New Zealand’s history, the changes that leave an indelible mark on the next generation do so for the wrong reason." In response to the 1991 budget's legacy Richardson defended it saying "My budget was driven by a desire to lift economic growth and to make employment attractive."[22] The cut in major benefits in the 1991 budget had long lasting effects on welfare and poverty in New Zealand. Benefits were effectively not raised until a small increase in 2016 under the Fifth National Government by finance minister Bill English,[23] with the 2020 and 2021 budgets largely restoring the pre 1991 levels.[24] Richardson's cut in benefits is largely seen as having corresponded with an increase in long term general poverty and wealth inequality in New Zealand.[25]

Subsequent career

Ruth Richardson resigned from parliament in the following year, being replaced by David Carter as MP by the 1994 Selwyn by-election.

She continued to be involved in politics through her advocacy of the ACT New Zealand party.[26] ACT, established by Roger Douglas and his allies, promotes policies very close to those of Richardson. She has also a number of roles related to business and corporate governance, and served on a number of corporate boards. She is also a member of the Mont Pelerin Society, founded by economist Friedrich Hayek.[27]

Canterbury University made her an honorary Doctor of Commerce in 2011.[28]

See also

References

  1. ISBN 9781869539818
    .
  2. ^ a b c d e f Trotter 2010, p. 191
  3. ^ "Ruth Richardson – Professional Director and Economic/Public Policy Consultant". www.rrnz.co.nz. Archived from the original on 4 October 2008. Retrieved 12 May 2020. Andrew … spent the next ten years as a legal policy adviser in the Head Office of the Department of Justice (where he met and married Ruth in 1975.
  4. ^ Chapman 1980, p. 54
  5. New Zealand History Online. Archived
    from the original on 30 January 2019. Retrieved 30 January 2019.
  6. ^ "Sir Robert Still Out in the Cold". The New Zealand Herald. 9 August 1985. p. 5.
  7. ^ Lagan, Bernard (27 March 1986). "How McLay went – Bolger coup staggers Parliament". The Dominion. p. 1.
  8. ^ Grafton, Tim (10 September 1987). "National Picks McKinnon – Bolger's deputy the 'safe option'". The Evening Post. p. 1.
  9. ^ "Can women breastfeed in New Zealand parliament: kind of?". Stuff (Fairfax). 11 May 2017. Archived from the original on 19 June 2018. Retrieved 19 June 2018.
  10. ^ "Breastfeeding babies in the debating chamber becoming normalised". Stuff (Fairfax). 9 November 2017. Archived from the original on 19 June 2018. Retrieved 19 June 2018.
  11. ^ a b "National Party – Shifting rightwards – The 'mother of all budgets'". Te Ara: The Encyclopedia of New Zealand. Retrieved 19 August 2020.
  12. ^ Starke, Peter (2005). "Resilient or Residual? From the Wage Earners' Welfare State to Market Conformity in New Zealand" (PDF). TranState Working Papers. University of Bremen. p. 17.
  13. ^ Dudding, Adam (11 July 2011). "Despicable me: Empathy on trial". Sunday Star Times. Archived from the original on 12 September 2019. Retrieved 12 May 2020.
  14. ^ Boston, Levine & Roberts 1996, p. 194
  15. ^ "The New Zealand Suffrage Centennial Medal 1993 – register of recipients". Department of the Prime Minister and Cabinet. 26 July 2018. Archived from the original on 18 September 2018. Retrieved 18 September 2018.
  16. ^ "Fiscal Responsibility Conference" at Francisco Marroquin University. Guatemala, 1997
  17. ^ "Economic Liberty Conference" at Francisco Marroquin University. Guatemala, 1997
  18. ^ a b Scott, Graham (2018). "From output budgeting to social investment: reflections on thirty five years of evolution in public sector management in New Zealand Archived 6 April 2019 at the Wayback Machine". New Zealand Productivity Commission. Accessed 12 May 2020.
  19. ^ "Balance sheets and fiscal policy: the New Zealand example | Public Finance". www.publicfinanceinternational.org. Archived from the original on 6 April 2019. Retrieved 6 April 2019.
  20. ^ "UK public finances near the bottom of international league table". MSN. Archived from the original on 6 April 2019. Retrieved 6 April 2019.
  21. ^ "Budget 2021: The winners and losers in a welfare-focused Budget". Stuff. 20 May 2021. Archived from the original on 20 May 2022. Retrieved 18 September 2022.
  22. ^ "Ruth Richardson calls Jacinda Ardern and Grant Robertson's budget attack a 'cheap shot'". Stuff. 20 May 2021. Archived from the original on 10 April 2022. Retrieved 18 September 2022.
  23. ^ "How Ruth Richardson's Mother of all Budgets is still f*cking us today". The Spinoff. 28 September 2019. Archived from the original on 11 February 2022. Retrieved 18 September 2022.
  24. ^ Godfery, Morgan (20 May 2022). "New Zealand budget might disappoint left but could help Labour win re-election". The Guardian. Archived from the original on 20 August 2022. Retrieved 18 September 2022.
  25. ^ "Revenge on the 'mother of all Budgets'". Stuff. 20 May 2021. Archived from the original on 22 April 2022. Retrieved 18 September 2022.
  26. ^ Wane, Joanna. "NZ's Women in Power: Where are they now?". Noted.co.nz. Archived from the original on 21 April 2020. Retrieved 12 May 2020.
  27. ^ "2018–2020 Board of Directors". The Mont Pelerin Society. 2018. Archived from the original on 5 September 2019. Retrieved 12 May 2020.
  28. ^ "Hon doc – The Hon Ruth Richardson". University of Canterbury. December 2011. Archived from the original on 24 March 2020. Retrieved 12 May 2020.

Sources

External links

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New Zealand Parliament
Preceded by Member of Parliament for Selwyn
1981–1994 		Succeeded by
Political offices
Preceded by Minister of Finance
1990–1993 		Succeeded by
Minister in charge of Earthquake and War Damage Commission
1990–1993 		Portfolio abolished
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