1936 Reserve Bank taken over by state. State housing programme launched. Guaranteed prices for dairy products introduced. National Party formed from former Coalition MPs. Inter-island trunk air services introduced. Jack Lovelock wins Olympic gold and sets world record for 1500m. Jean Batten's record flight from England. Working week reduced from 44 to 40 hours. 1937 April: Federation of Labour unifies trade union movement. RNZAF set up as separate branch of armed forces. March: Free Milk in schools introduced. 1938 Social Security Act establishes revised pensions structure and the basis of a national health service. Import and exchange controls are introduced. 15 October: General election, Labour re-elected. 1939 Second New Zealand Expeditionary Force formed. Bulk purchases of farm products by Great Britain. 3 September: War declared on Germany 12 September: Enlistment in the 2nd New Zealand Expeditionary Force begins. 4 October: Government announces the formation of a Māori Battalion for 2NZEF 23 November: Bernard Freyberg is appointed commander of 2NZEF 13 December: takes part in The Battle of the River Plate. 1940 to 1946 1940 5 January: First Echelon of the 2NZEF leaves New Zealand for the Middle East. 12 February: The main body of the First Echelon of the 2NZEF, arrives at Maadi Camp in Egypt. 27 March: Prime Minister Michael Joseph Savage dies 1 April: Peter Fraser becomes prime minister. 1 April: Formation of No. 75 (NZ) Squadron of the RAF 11 June: New Zealand declares war on Italy. 19 June: RMS Niagara hits a mine off Bream Head, Northland 2 August: Home Guard established. 20 August: German raider Orion sinks the steamer Turakina off Cape Egmont. October: Stanley Graham kills 7 in shooting spree near Hokitika 25 November: Steamer Holmwood sunk by German raiders off the Chatham Islands. 27 November: Rangitane sunk by German raiders 480 km from East Cape 8 December: New Zealand steamer Komata sunk by German raiders off Nauru Sidney Holland becomes Leader of Opposition. Conscription for military service. German mines laid across Hauraki Gulf. 1941 20 May – 1 June: New Zealand forces suffer heavy losses in the Battle of Crete. 8 December: New Zealand declares war on Japan following the attack on Pearl Harbor. Māori War Effort Organisation set up. Pharmaceutical and general practitioner medical benefits introduced. 1942 Economic stabilisation. Fears of a Japanese Invasion prompts precautions such as air raid drills. Membership of the Home Guard became compulsory for men aged between