The 1989 New Zealand Labour Party leadership election was held to determine the leadership of the New Zealand Labour Party. The leadership was won by MP and incumbent deputy leader Geoffrey Palmer. Background David Lange had been leader of the Labour Party since 1983 and Prime Minister since 1984. Roger Douglas had been a key ally of Lange and was Minister of Finance in the Fourth Labour Government until growing divisions between Lange and Douglas over the Government's economic policy (Rogernomics) led to the latter's resignation from the Cabinet in December 1988. A week later, Douglas tried to replace Lange as Labour leader, but failed. Division in the Labour Party continued through 1989. According to Michael Cullen, the then Minister for Social Welfare, most of caucus wanted both Lange and Douglas in Cabinet with a peace deal. On 3 August 1989, the caucus voted to return Douglas to the cabinet. In response, Lange resigned as leader, interpreting the caucus's support for Douglas as a sign of no-confidence in him. Former Labour leader and Prime Minister Sir Wallace Rowling was saddened to hear of Lange's resignation. He felt the caucus made a significant error in re-electing Douglas to cabinet stating that the vote indicated caucus was "bent on its own political destruction." Candidates Geoffrey Palmer Palmer was the Deputy Prime Minister, Attorney-General, Minister of Justice and Minister for the Environment. He stood for the leadership feeling a sense of duty to do so as Lange's deputy. His image with the populace was one of distance to the publicly resented Rogernomics policies and was instead associated with Labour's more popular policies such as environmentalism, electoral reform and the nuclear-free stance. Many in the party, particularly the newer caucus members, hoped this would allow Labour's popularity to heal and rebrand the party along more positive lines. Australian Prime Minister Bob Hawke backed Palmer for the leadership. Mike Moore Moore was the Minister of Overseas Trade and one of the senior cabinet ministers in the government and was ranked third in Labour's caucus. He was a supporter of the Rogernomics reforms, albeit less radical. As a result, he was seen as a more acceptable alternative leader to both Douglas and his supporters as well as critics of Douglas. In the lead up to the vote Moore claimed he could only hope to beat Palmer if he had a "clear run" against him, leading Douglas