In 1988 he returned to Auckland and immediately became disillusioned with the then state of the Labour Party and horrified by New Zealand's economic reforms, Rogernomics, which pushed for free market economy and privatisation of state assets. He protested by joining Jim Anderton's NewLabour Party (NLP) soon after it was formed and later became president of the party. He told Anderton he was "devastated by the actions of the Labour Party". He received many invitations to stand for parliament again for the NLP, but declined after consultation with his family who thought he was of better use as a "supportive and wise head for the new breed of NLP politicians." At the 1992 local-body elections he put himself forward as a candidate for the Mount Albert ward of the Auckland City Council. Standing as an Alliance candidate (the NLP was a component party of the Alliance) he narrowly missed out on being elected by margin of just 17 votes.