In a move that’s left many gobsmacked, Ruth Richardson, the architect of the infamous “Mother of All Budgets,” has been named a Dame Companion of the New Zealand Order of Merit in the 2025 King’s Birthday Honours. The Honours Unit, Cabinet and the King must have rocks in their heads.This accolade, meant to celebrate service to Aotearoa, feels like a slap in the face to the countless New Zealanders who bore the brunt of her ruthless economic reforms. Far from deserving a Damehood, Richardson’s legacy is one of deepened inequality, shredded social safety nets, and a callous disregard for the vulnerable.
As Finance Minister from 1990 to 1993, Richardson championed the neoliberal blitz known as “Ruthanasia.” Her 1991 budget slashed welfare benefits, privatised state assets, and deregulated markets with a zeal that made even some of her National Party colleagues wince. The fallout was immediate and brutal. Child poverty rates skyrocketed, with a 1996 study showing that the proportion of children living below the poverty line doubled from 14% in 1982 to 29% by 1994, as a direct consequence of her austerity.
As Finance Minister from 1990 to 1993, Richardson championed the neoliberal blitz known as “Ruthanasia.” Her 1991 budget slashed welfare benefits, privatised state assets, and deregulated markets with a zeal that made even some of her National Party colleagues wince. The fallout was immediate and brutal. Child poverty rates skyrocketed, with a 1996 study showing that the proportion of children living below the poverty line doubled from 14% in 1982 to 29% by 1994, as a direct consequence of her austerity.
Unemployment surged to 11.1% in 1992, the highest since the Great Depression, as her policies gutted public sector jobs and left thousands struggling. Income inequality widened dramatically, with Richardson helping to ensure that New Zealand is one of the most unequal nations in the world to this very day.
Today, RNZ reported:
'Early and decisive course correction was imperative' - Richardson
Richardson was well aware that an interview about her King's Birthday Honour would include questions on her time as finance minister.
The economic reforms she oversaw - and the 1991 'Mother of All Budgets' - made significant changes to social welfare and public services, the effects of which are still felt by many.
Richardson started by saying in 1991 New Zealand was at huge risk, and was drowning in a sea of debt and perpetual forecast deficits.
It’s true. When Ruth Richardson became Finance Minister in 1990, New Zealand faced a fiscal crisis, with public debt at 48% of GDP and deficits projected to persist. The National Party’s earlier policies under Robert Muldoon (1975–1984), particularly the debt-fueled “Think Big” projects, increased debt from 5% to 40% of GDP, exacerbating the crisis. Inefficient state enterprises and Minister's high spending further strained finances, setting the stage for Richardson's decision to make the poor pay for her parties financial failures.
Today, RNZ reported:
Two former finance ministers receive King's Birthday Honours
Former National MP Ruth Richardson. Photo: Supplied
Two former finance ministers have been appointed Companions of the New Zealand Order of Merit at this year's King's Birthday Honours.
Ruth Richardson and Steven Joyce, both former National MPs, have been honoured for their services as Members of Parliament.
Three other former MPs - Ian McKelvie, Anae Arthur Anae, and Dover Samuels - have also received Honours.
Former National MP Ruth Richardson. Photo: Supplied
Two former finance ministers have been appointed Companions of the New Zealand Order of Merit at this year's King's Birthday Honours.
Ruth Richardson and Steven Joyce, both former National MPs, have been honoured for their services as Members of Parliament.
Three other former MPs - Ian McKelvie, Anae Arthur Anae, and Dover Samuels - have also received Honours.
'Early and decisive course correction was imperative' - Richardson
Richardson was well aware that an interview about her King's Birthday Honour would include questions on her time as finance minister.
The economic reforms she oversaw - and the 1991 'Mother of All Budgets' - made significant changes to social welfare and public services, the effects of which are still felt by many.
Richardson started by saying in 1991 New Zealand was at huge risk, and was drowning in a sea of debt and perpetual forecast deficits.
It’s true. When Ruth Richardson became Finance Minister in 1990, New Zealand faced a fiscal crisis, with public debt at 48% of GDP and deficits projected to persist. The National Party’s earlier policies under Robert Muldoon (1975–1984), particularly the debt-fueled “Think Big” projects, increased debt from 5% to 40% of GDP, exacerbating the crisis. Inefficient state enterprises and Minister's high spending further strained finances, setting the stage for Richardson's decision to make the poor pay for her parties financial failures.
Richardson’s defenders, including herself, claim her 1991 'Mother of All Budgets' and Fiscal Responsibility Act 1994 set a global standard for fiscal prudence. But at what cost? Her policies prioritised trying to balance budgets over human welfare, forcing austerity that crippled health and education services. Hospital waiting lists ballooned, and schools struggled as funding dried up.
New Zealand's social fabric tore apart, homelessness spiked, and food banks became a grim fixture in communities. Her reforms didn’t just trim fat; they cut into the bone of a society already reeling from Roger Douglas’ earlier experiments. But what makes this all the worse is that she’s never acknowledged the harm she caused.
Impact on Health Services and Hospital Waiting Lists
Impact on Education and School Funding
Social Impact, Increased Homelessness, and Food Banks
This isn’t about rewriting history…it’s about accountability. Honouring Richardson glorifies a chapter of financial pain and increased inequity for New Zealand. If we’re to celebrate true service, let’s recognise those who’ve rebuilt what her policies broke, not the architect of the wrecking ball. Shame on the honours committee for this misjudgment, and shame on Ruth Richardson for believing that she deserves this Damehood. All she really deserves is our scorn.
Impact on Health Services and Hospital Waiting Lists
The 1991 budget introduced user-pays requirements in hospitals, shifting costs to patients for services previously funded by the government. This was part of a broader restructuring that reduced public spending on health.
A 2015 review noted that Richardson’s reforms caused “severe financial strains on hospitals,” leading to operational challenges. Hospital waiting lists grew significantly in the early 1990s, with a 1993 study reporting a 20% increase in elective surgery wait times from 1990 to 1992, attributed to reduced funding and increased demand on under-resourced facilities.
By 1994, some hospitals reported waitlists exceeding 12 months for non-urgent procedures, a stark contrast to pre-1991 levels. The introduction of user charges also deterred low-income patients from seeking care, exacerbating health inequities, as documented in a 1996 Health Services Research report. These outcomes align with claims that austerity “crippled health services” and caused hospital waiting lists to balloon.
A 2015 review noted that Richardson’s reforms caused “severe financial strains on hospitals,” leading to operational challenges. Hospital waiting lists grew significantly in the early 1990s, with a 1993 study reporting a 20% increase in elective surgery wait times from 1990 to 1992, attributed to reduced funding and increased demand on under-resourced facilities.
By 1994, some hospitals reported waitlists exceeding 12 months for non-urgent procedures, a stark contrast to pre-1991 levels. The introduction of user charges also deterred low-income patients from seeking care, exacerbating health inequities, as documented in a 1996 Health Services Research report. These outcomes align with claims that austerity “crippled health services” and caused hospital waiting lists to balloon.
Impact on Education and School Funding
Education funding faced similar cuts, with schools required to adopt user-pays models, such as increased parental contributions for basic services. The budget reduced per-pupil funding by approximately 5% in real terms between 1991 and 1993, according to Ministry of Education data. Schools in low-income areas struggled most, as they relied heavily on government grants.
A 1994 report from the New Zealand Educational Institute highlighted that many schools deferred maintenance, cut staff, or reduced programs, leading to larger class sizes and reduced educational quality. These struggles support the claim that schools faced significant challenges as funding “dried up” under austerity.
A 1994 report from the New Zealand Educational Institute highlighted that many schools deferred maintenance, cut staff, or reduced programs, leading to larger class sizes and reduced educational quality. These struggles support the claim that schools faced significant challenges as funding “dried up” under austerity.
Social Impact, Increased Homelessness, and Food Banks
The budget’s deep welfare cuts, unemployment benefits reduced by $14 weekly, sickness benefits by $27.04, and family benefits by $25–$27, severely impacted low-income households. A 2015 Treasury report noted that welfare-reliant households saw their income drop from 72% to 58% of the national average between 1990 and 1993. Child poverty doubled from 15% in 1990 to 29% in 1994, and income inequality rose, with the Gini coefficient increasing from 0.30 to 0.33 by 1996. These economic pressures tore at the “social fabric,” as communities faced increased hardship.
Homelessness surged as housing support was cut amid rising costs. A 2017 European Journal of Public Health study noted that austerity policies in the early 1990s, including New Zealand’s, increased homelessness risks by reducing subsidies and social services. By 1993, estimates suggested a 30% rise in visible homelessness in urban centers like Auckland, with no comprehensive national data due to under-reporting. Food banks, virtually non-existent before the 1980s, became entrenched, with the Salvation Army reporting a 50% increase in food parcel distribution between 1991 and 1994.
Homelessness surged as housing support was cut amid rising costs. A 2017 European Journal of Public Health study noted that austerity policies in the early 1990s, including New Zealand’s, increased homelessness risks by reducing subsidies and social services. By 1993, estimates suggested a 30% rise in visible homelessness in urban centers like Auckland, with no comprehensive national data due to under-reporting. Food banks, virtually non-existent before the 1980s, became entrenched, with the Salvation Army reporting a 50% increase in food parcel distribution between 1991 and 1994.
I guess it's entirely appropriate that Ruth is being honoured today. After all, we are in the middle of another permanent scarring of the economy for stupid ideological reasons. Let's have a quick look [🧵1/n] pic.twitter.com/SyKff5JBxL
— Musical Chairs (@MusicalChairs14) June 1, 2025
This isn’t about rewriting history…it’s about accountability. Honouring Richardson glorifies a chapter of financial pain and increased inequity for New Zealand. If we’re to celebrate true service, let’s recognise those who’ve rebuilt what her policies broke, not the architect of the wrecking ball. Shame on the honours committee for this misjudgment, and shame on Ruth Richardson for believing that she deserves this Damehood. All she really deserves is our scorn.
