<P> Attempts by the United - Reform Coalition to deal with the situation with spending cuts and relief work were ineffective and unpopular . In 1935, the First Labour Government was elected, and the post-depression decade showed that average Labour support in New Zealand had roughly doubled comparable to pre-depression times . By 1935 economic conditions had improved somewhat, and the new government had more positive financial conditions . Prime Minister Michael Joseph Savage proclaimed that: "Social Justice must be the guiding principle and economic organization must adapt itself to social needs ." </P> <P> The new government quickly set about implementing a number of significant reforms, including a reorganisation of the social welfare system and the creation of the state housing scheme . Labour also gained Māori votes by working closely with the Rātana movement . Savage was idolised by the working classes, and his portrait hung on the walls of many houses around the country . The newly created welfare state promised government support to individuals "from the cradle to the grave", according to the Labour slogan . It included free health care and education, and state assistance for the elderly, infirm, and unemployed . The opposition attacked the Labour Party's more left - wing policies, and accused it of undermining free enterprise and hard work . The Reform Party and the United Party merged to become the National Party, and would be Labour's main rival in future years . However the welfare state system was retained and expanded by successive National and Labour governments until the 1980s . </P> <P> When World War II broke out in 1939, New Zealanders saw their proper role as defending their proud place in the British Empire . It contributed some 120,000 troops . They mostly fought in North Africa, Greece / Crete, and Italy, relying on the Royal Navy and later the United States to protect New Zealand from the Japanese forces . Japan had no interest in New Zealand in the first place; it had already over-reached when it invaded New Guinea in 1942 . (There were a few highly publicised but ineffective Japanese scouting incursions .) The 3rd New Zealand Division fought in the Solomons in 1943--44, but New Zealand's limited manpower meant 2 Divisions could not be maintained, and it was disbanded and its men returned to civilian life or used to reinforce the 2nd Division in Italy . The armed forces peaked at 157,000 in September 1942; 135,000 served abroad, and 10,100 died . </P> <P> New Zealand, with a population of 1.7 million, including 99,000 Māori, was highly mobilised during the war . The Labour party was in power and promoted unionisation and the welfare state . Agriculture expanded, sending record supplies of meat, butter and wool to Britain . When American forces arrived, they were fed as well . </P>

New zealand used to be a spanish colony