page_title: Social Credit Party (New Zealand)
section_title: Popularity zenith (1972–1985)
hierarchical_section_title: Social Credit Party (New Zealand) / History / Popularity zenith (1972–1985)
caption_attribution_description: English: Bruce Craig Beetham, leader of New Zealand Social Credit Political League, Member of Parliament for Rangitikei 1978 - 1984.
context_page_description: The New Zealand Social Credit Party is 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 House of Representatives, although never more than two at a time. It renamed itself the New Zealand Democratic Party from 1985 to 2018, and was for a time part of the Alliance from 1991 to 2002.
  The party is based on the ideas of social credit, an economic theory established by Major C. H. Douglas. Social Credit movements also existed in Australia, Canada, and the United Kingdom although the relationship between those movements and the New Zealand movement was not always good.
context_section_description: O'Brien's replacement was Bruce Beetham, who would become the most well known Social Credit leader. Beetham took over in time for the 1972 elections. Despite a relatively strong showing, Social Credit failed to win any seats, a fact that some blamed on the rise of the new Values Party. While the Values Party did not win any seats, many supporters of Social Credit believed that it drew voters away from the older party.
  In the 1978 by-election in Rangitikei, caused by the death of National Party MP Roy Jack, Beetham managed to defeat National's replacement candidate and win the seat. Beetham was more successful in parliament than Cracknell had been, and gained Social Credit considerable attention. He also put forward a New Zealand Credit and Currency Bill, intended to implement many Social Credit policies. The Bill was criticised by some of the more extreme Social Credit supporters, who claimed that it was too weak, but was nevertheless strongly promoted in parliament by Beetham. The Bill quickly failed, although this was not particularly unexpected - it had been put forward primarily for the purpose of drawing attention, not because Beetham believed it would succeed.
  Beetham retained his seat in the 1978 general election. He was later joined by Gary Knapp, who defeated free-market National Party candidate Don Brash in the 1980 by-election in East Coast Bays (caused by the resignation of the sitting National MP). Knapp, like Beetham, was highly active in parliament.
  Led by Beetham and Knapp, Social Credit became a popular alternative to the two major parties. Political scientists debate how much of this was due to Social Credit policies and how much was merely a "protest vote" against the established parties, but one poll recorded Social Credit with as much as 30% of the vote.
  By the 1981 elections, the party's support had subsided somewhat, and Social Credit only gained 20.55% of the vote. As expected, the electoral system did not translate this into seats in parliament, but Social Credit did retain the two seats it already held. A year later, it officially dropped "Political League" from its official name, becoming merely the Social Credit Party.
  During that parliamentary term, Social Credit's support was damaged by a deal between Beetham and National Party Prime Minister Rob Muldoon. In exchange for Social Credit support for the Clyde Dam, a controversial construction project and part of Think Big, Muldoon undertook to back certain Social Credit proposals. This did considerable harm to Social Credit's popularity, as Muldoon's government (and the project itself) were opposed by most Social Credit members. To make matters worse, Muldoon did not deliver on many of his pledges, depriving Social Credit of any significant victories with which to mitigate its earlier setback.
  In 1983, Beetham suffered a minor heart attack, causing him to lose some of his earlier energy. He also became, according to many Social Credit supporters, more demanding and intolerant. This reduced Social Credit's appeal to voters.
  In the 1984 elections, Beetham lost his Rangitikei seat to a National Party challenger, Denis Marshall. Knapp retained his East Coast Bays seat, and another Social Credit candidate, Neil Morrison, won Pakuranga.  Despite still holding the same number of seats, Social Credit won only 7.6% of the total vote in 1984, a substantial drop. Some commentators attributed this to the New Zealand Party, an economically right-wing liberal party that opposed Muldoon's government. The New Zealand Party may have taken some of the protest votes that Social Credit once received.  It was from this election that the term "Crimplene Suit and Skoda Brigade" was coined for Social Credit (by defeated National Party Pakuranga MP Pat Hunt).
caption: Bruce Beetham, leader 1972-85, MP for Rangitikei 1978-84.
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