 During the Third Labour Government, in the ministry led by Norman Kirk, he was Minister of Labour (1972–1974) and Minister of Works and Development (1972–1974).As the only member of the government with prior cabinet experience Watt carried a significant amount of responsibility handling both the strenuous Labour portfolio and had high demands in foreign relations as Deputy Prime Minister.Mike Moore, a backbencher at the time, said Watt had "carried the 1972–75 Labour government."