Editing New Zealand Labour Party (section)

=== Second Government (1957–1960) ===
{{main|Second Labour Government of New Zealand}}
Nash, Labour's third prime minister, took office in late 1957. Upon coming to power, Labour decided that drastic measures were needed to address [[balance-of-payments]] concerns.{{sfn|Franks|McAloon|2016|p=152}} This resulted in the highly unpopular 1958 [[Black Budget (New Zealand)|"Black Budget"]] of [[Arnold Nordmeyer]], the new minister of finance, which raised taxes on alcohol, cigarettes, cars, and petrol.{{sfn|Franks|McAloon|2016|p=154}} It is widely thought{{by whom|date=May 2021}} to have doomed the party to defeat despite the economy rejuvenating less than a year after the adoption of the Black Budget.{{sfn|Franks|McAloon|2016|p=154}} In the {{NZ election link|1960}}, the National Party returned to power.

[[File:Norman Kirk 1966 campaign opening.jpg|thumb|Leader [[Norman Kirk]] opening Labour's election campaign in 1966]]
The elderly Nash retired in 1963, suffering from ill health.{{sfn|Franks|McAloon|2016|p=160}} Nordmeyer replaced him, but the taint of the Black Budget ensured that Nordmeyer did not have any appreciable success in reversing the party's fortunes. In 1965 the leadership went to the younger [[Norman Kirk]], who many believed would revitalise the party. Labour suffered defeat again in the next two elections, but in the {{NZ election link|1972}}, the party gained a significant majority over its rival.