Peter Fraser (1884–1950) first entered Parliament as the Labour member for Wellington central in 1918. Labour came into power in 1935, and he took the key ministries of education and health.
When Savage died in office in 1940 Fraser succeeded him as Prime Minister, and was Native Affairs Minister from 1946 until 1949. The workaholic Fraser had studied Maori issues more closely than many of his colleagues, and believed that Maori deserved more generous treatment. He wanted them to become "an independent, self-reliant and satisfied race working side by side with the Pakeha and with equal incentives, advantages, and rewards".
Fraser's most important achievement in the field of Maori affairs was the Maori Social and Economic Advancement Act 1945. This was designed to reduce Maori poverty and the problems of moving to the cities. A novel feature was allowing some Maori involvement and control over welfare and other assistance. Tribal committees to administer welfare measures were set up, and welfare officers and Maori wardens were appointed. By 1949 there were 381 tribal committees.
But the Act disappointed many Maori, including the members of Labour's caucus, who felt it did not go far enough in supporting Maori independence.
The significant contribution of Maori in the Second World War helped speed up a number of claim settlements, although wartime and post-war hardships meant that large compensation payments were less likely. Longstanding Taranaki and Ngai Tahu claims were settled in 1944, and in 1946 Fraser played an active part in a settlement of the Waikato confiscation claim. The Labour government was defeated in 1949, and Fraser died the following year.