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.
She supported and carried on the free-market reforms initiated by the preceding Labour Government, and extended them in a significant way with the Fiscal Responsibility Act 1994.
Richardon's economic restructuring, including 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.
[3] Richardson's first attempt to break into politics came when she challenged Sir Roy Jack for the National Party nomination in the 1972 election.
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 quickly distinguished herself in the National Party caucus as a supporter of free market economics, 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.
Richardson stood out in National's caucus for her strong support of the radical economic reforms of the Labour Party's new Finance Minister, Roger Douglas.
[2] These reforms, sometimes known as "Rogernomics", involved the privatisation of state assets, the removal of tariffs and subsidies, and applying monetarism to control inflation.
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 Birch for the finance role.
Defunct When National came to power in the 1990 election, Richardson had enough support within the party to be made Minister of Finance, though Bolger preferred Bill Birch for the post.
[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.
[15] Though her period as Finance Minister was comparatively short, Richardson's legacy in subjects such as fiscal responsibility[16] and economic liberty[17] is large.
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."
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.