Socialism in New Zealand had little traction in early colonial New Zealand but developed as a political movement around the beginning of the 20th century. Much of socialism's early growth was found in the labour movement.

The extent to which socialism plays a part in modern New Zealand politics depends on which definitions of socialist are used, but few mainstream politicians would describe themselves using the word "socialist". The term "social-democrat" is more common, but the general "left-wing" or "centre-left" are used far more frequently. New Zealand has a complicated assortment of socialist causes and organisations. Some of these play a considerable role in public activism, such as the anti-war movement; other groups are strongly committed to socialist revolution.

Several prominent political parties in New Zealand, such as the New Zealand Labour Party, have historical links to socialism but are not generally considered socialist today due to their acceptance of a capitalist economy. More likely to receive this label are the small Marxist organisations that exist outside the political mainstream, such as Organise Aotearoa, the International Socialist Organisation, Socialist Aotearoa.

History of New Zealand socialism

Academic Josephine F. Milburn argues that socialist theories were introduced by immigrant workers with experience in the British labour movement. Their ideas were not widely accepted, however. The Liberal Government of New Zealand that was dominant 1891–1912 rejected socialism but it supported unions, and the government built the foundations of the country's welfare state in the 1890s and fought the large landholders. Milburn argues that governmental activism cannot be attributed to the influence of the small socialist movement.

Unions and workers' parties

Ideological socialism, when it arrived, mostly stemmed from Britain or other British colonies. Much of socialism's early growth was found in the labour movement, and often coincided with the growth of trade unions. During the 1870s, James McPherson and his Canterbury Working Men's Mutual Protection Society had written to Karl Marx, requesting affiliation with the First International. The New Zealand Federation of Labour (also known as the "Red Federation") was influenced by socialist theories, as were many other labour organizations. The Red Federation was formed in 1909 when a federation of the mining unions invited other unions to join a New Zealand Federation of Labour. The Red Federation's official organ was the Maoriland Worker, which advocated militant unionism and socialism. Key Red Federation leaders included the Australian–born Hickey and Paddy Webb, and fellow Australian Bob Semple. In opposition to the Red Federation, mainstream trade and labour councils formed a rival Federation of Labour.

The arrival of 200 British socialists called the "Clarion Settlers" led to the formation of the New Zealand Socialist Party in 1901, which promoted the works of Marx and Friedrich Engels. Strongly influenced by the British Independent Labour Party, the Socialist Party advocated promoting socialism through education and agitation rather than elections. The group met with little tangible success, but it nevertheless had considerable impact on the development of New Zealand socialism, forging close ties with the "Red Federation." In particular, Edward Hunter (sometimes known under the pen name "Billy Banjo", and a member of both the Socialist Party and the Red Federation), was a major figure in the spread of socialist ideas to the unions.

In the years leading up to the First World War, several New Zealand and Australian socialists including Harry Holland, Michael Joseph Savage, Peter Fraser, Harry Scott Bennett, Tom Barker, Tom Bloodworth, and Bob Semple advocated the creation of a "Cooperative Commonwealth" in which all land and means of wealth production, distribution, and management would be owned and managed collectively by the people. Besides Marx and Engels, these antipodean socialists were influenced by various radical European and American writers including Henry George, Edward Bellamy, Georges Sorel, August Bebel, Eugene Debs, Bill Haywood, and Irving Fisher. In 1912, a Petone Marxian Club was formed and met every Monday. This was one of the forerunners to the New Zealand Marxian Association.

The growth of unionism eventually led to the establishment of a number of socialist-influenced parties. Originally, the working class vote was concentrated mainly with the Liberal Party, where a number of prominent left-wing politicians (such as Frederick Pirani) emerged. Later, however, there were increasing calls for an independent workers' party, particularly as the Liberals began to lose their reformist drive.

The second organised party to gain a seat in Parliament (after the Liberal Party) was the small Independent Political Labour League, which won an urban electorate in Wellington in the 1908 election. Later, in 1910, the IPLL was reformed as the Labour Party (not to be confused with the modern party).

Emergence of the Labour Party

The growing drive for unity among left-wing groups resulted in a "Unity Conference" being called in 1912. This conference aimed to merge the various left-wing parties in New Zealand, including both the moderate Labour Party and the hardline Socialist Party. The Socialist Party, however, refused to attend the conference, and the new United Labour Party consisted only of the Labour Party and a number of independent campaigners.

Premier William Massey's "heavy-handed" suppression of the Waihi miners' strike prompted another attempt at unity in 1913. This time, the Socialists were willing to attend. A new group, the Social Democratic Party, was formed, merging the United Labour Party and the Socialist Party. A faction of the United Labour Party refused to accept the decision, however, and continued on under the same name. Later, a decision by the Social Democrats to support a strike of dockworkers and coal miners resulted in a number of Social Democratic leaders being arrested, leaving the party in disarray in the 1914 election, the remnants of the United Labour Party actually won more seats than the "united" Social Democrats.

Finally, in 1916, it was agreed that the Social Democrats and the United Labour Party remnants would all be amalgamated into a single group, the New Zealand Labour Party. The new Labour Party was explicitly socialist, and was based around goals of redistribution of wealth, nationalization of industry, and elimination of conscription. Eventual Labour Party leader, Harry Holland, was strongly socialist in his beliefs, having been associated with the Socialist Party and with the striking miners in Waihi. Holland believed that the militancy at Waihi was a sign of further impending class conflict. While the Labour Party gained some electoral success, it continued to trail the Liberal Party and the Reform Party until the replacement of Holland with Michael Joseph Savage. Savage, although also involved in the earlier Socialist Party, was more moderate than Holland, and Labour gained considerable support. Assisted by the Great Depression, Labour won a decisive victory in the 1935 election.

Labour's social democracy Despite its socialist roots, the Labour Party shifted towards a more social democratic orientation once in power. The First Labour Government led by Savage and Peter Fraser implemented a range of socialist policies such as nationalising industry, broadcasting, transportation, and a Keynesian welfare state. However, the party did not seek to abolish capitalism, instead opting for a mixed economy. Labour's welfare state and mixed economy were not challenged until the 1980s.

Two years after the Labour Party lost the 1949 election, the goal of implementing "the socialisation of the means of production, distribution, and exchange" was removed from the party's policy platform. This is sometimes seen as the end of any real claim to full socialism by the Labour Party. However, the shift away from socialism had not come about without dispute. Labour Party politician John A. Lee was harshly critical of the changes, and had eventually left to establish the Democratic Labour Party in 1940. The party was considerably more socialist than Labour, but performed poorly. Many members eventually left the party, mostly due to Lee's perceived autocratic style.

During the 1980s, the Fourth Labour Government under Prime Minister David Lange and Finance Minister Roger Douglas implemented several neoliberal economic reforms known as Rogernomics which transitioned New Zealand's Keynesian economy towards a more free market model. Labour's abandonment of its traditional values fractured the party, leading disaffected members to join Jim Anderton's NewLabour Party, Greens, New Zealand Democratic Party for Social Credit, and the Mana Motuhake parties under the Alliance. Successive Labour governments have promoted centre-left social and economic policies while preserving a free market economy. The former Prime Minister Jacinda Ardern identifies as a social democrat and formerly served as President of the International Union of Socialist Youth.

Rise of the Communist Party

Even before Holland's replacement, and especially after Labour's 1949 policy change, many people had come to the conclusion that the Labour Party had moved too far away from its socialist roots. Only two years after Labour's foundation, the New Zealand Marxian Association was established. The Marxian Association was inspired by the Socialist Party of Great Britain (SPGB) and focused on political action. It would later clash acrimoniously with Holland. The Marxian Association itself would fall prey to internal division in 1921. That year, a number of members who supported the Russian Revolution departed to form the Communist Party of New Zealand (CPNZ). They were joined by two other revolutionary strands within the New Zealand Socialist Party: the De Lonites who espoused revolutionary politics and industrial unionism; and the Industrial Workers of the World (IWW)-syndicalist tradition who advocated direct action and spurned political activity.

In 1930, however, former members of the Marxian Association (backed by members of the Socialist Party of Australia (WSM)) established the Socialist Party of New Zealand (distinct from the earlier New Zealand Socialist Party). This group denied that the Labour Party (or even any of the parties before it, except for the Marxian Association) represented genuine socialism. The new Socialist Party still exists today, although has slightly modified its name, becoming the World Socialist Party).

Meanwhile, the CPNZ built its support from miners in the South Island's West Coast and Huntly in the North Island's Waikato district, and from seamen and waterside workers. The party faithfully followed the official position of the Soviet Union, modelling its aims, beliefs, manifesto and organisational structure and processes on those of the Communist Party of the Soviet Union (CPSU). The Soviets also sought to guide international Communist parties through the Third International or Comintern. In addition, the CPNZ also maintained close ties with the Communist Party of Australia (CPA) and supported Maori rights and the Mau movement in Western Samoa.