The leadership election was instigated when Bill Rowling announced his retirement from the leadership to the Labour caucus in late 1982. Labour's caucus had been divided between the supporters and critics of Rowling. Backers of Rowling supported him out of their shared faith in Labour's traditional Keynesian policies which others opposed. Lange's main support were from MPs who saw Rowling as merely an impediment to their own ambitions to implement newer economic policy along globalized free market lines. Many in both the caucus and media saw Lange as the inevitable choice as leader and so turned their attention to the question of the deputy leadership. All three candidates were from Christchurch to reflect geographical proportionality, Mike Moore MP for, Geoffrey Palmer MP for and Ann Hercus MP for.
Candidates
David Lange
After entering parliament in a 1977 by-election, Lange became Labour's rising star. He used the unusually high media attention from this to propel him to the Deputy Leadership of the Labour Party in 1979. Lange narrowly missed ousting Rowling in 1980, with him and his group of free market economic supporters becoming known as the "Fish and Chip Brigade" due to a picture published at the time with the group eating Fish and chips in Douglas' office after the vote. Lange became recognised by many to be more than a match for the tiring Prime Minister, Robert Muldoon, with his superb wit and debating skill.
Marshall entered Parliament in 1972 as the MP for Wanganui. He had served as Labour's Senior Whip in 1977-78. He was one of several people courted by Rowling's supporters to attempt to head off Lange. He declared his intention to run on18 January after other potentials had pulled out. According to Michael Bassett, Marshall was the only one who remained bold enough to challenge Lange on the day of the vote.
Colin Moyle
had been informed by Rowling that he intended to resign. Moyle had previously been seen as leadership potential since the 1970s, with even Muldoon considering him to be a threat to him, resulting in the infamous Moyle Affair, where Moyle ended up resigning his seat, ironically to be won by Lange. Moyle attempted to rally Rowling's supporters at a meeting in Auckland, though attendance was low. He took this as a sign and then informed Lange he would not stand on assurances Lange was healthy enough for the job. Moyle was mindful of Norman Kirk's health deterioration a decade earlier, but Lange said he was fighting fit.
Bob Tizard
Former Deputy Prime Minister Bob Tizard also declared his intention to stand once Rowling announced his retirement. However on the day of the ballot he failed to put his name forward.
Result
A caucus vote was held on 3 February 1983 where Lange defeated his sole opponent Russell Marshall 33 votes to 9. With the Deputy Leadership now vacant a vote was held for that position. It was much closer with the more moderate Geoffrey Palmer winning by one vote, 22 to 21 over the more free market friendly Mike Moore in the second ballot. Moore had led on the first, but after Hercus was eliminated most of her supporters voted for Palmer.
Leadership ballot
Deputy-leadership ballot
;First ballot ;Second ballot
Aftermath
Lange led Labour until 1989 when he too resigned. The retiring Rowling served as Lange's Shadow Minister for Foreign Affairs. Barely over a year later, during the snap election of 1984 Lange and Labour fought an excellent campaign winning a landslide victory. Labour held a 17-seat majority. At 41 years old, Lange became New Zealand's youngest prime minister of the 20th century.