Cabinet Minister

With the National Party winning the 1975 elections, Highet was appointed to Cabinet again, becoming Minister of Internal Affairs, Minister of Local Government, New Zealand's first Minister for the Arts, and Minister for Sport.

Highet was particularly well regarded for his interest in the arts and sport, having been an opera singer and representative sportsman in his youth. Highet founded the National Youth Orchestra, and was a founding Director of the International Festival of the Arts. During his time as Minister for the Arts, Highet founded the New Zealand Film Commission, the Hillary Commission, and was actively involved in the organisation of the Historic Places Trust, the New Zealand Symphony Orchestra, the Royal New Zealand Ballet, and the Arts Council.

Legislation

In 1976, Highet introduced the Waitangi Day Act 1976, changing the name of the holiday from New Zealand Day back to Waitangi Day.

In 1977, following a petition to the House, Highet introduced God Defend New Zealand, as New Zealand's official national anthem alongside God Save the Queen.

As Minister of Internal Affairs, Highet oversaw the passage of the Citizenship Act 1977, establishing a New Zealand Citizenship as a separate citizenship, and making British citizens legal aliens for the first time. In November 1979 Highet suggested that the design of the Flag of New Zealand should be changed, and sought an artist to design a new flag with a silver fern on the fly. The proposal attracted little support however.^[4]

Think Big

In 1977, Highet introduced the expression "Think Big" in a speech to a National Party Conference, as a description of the government's then-ambitious major projects in the energy sector. Highet, as Minister of Racing, named the policy after Melbourne Cup-winning racehorse Think Big.

Highet was considered to be a social liberal, and was among a handful of economically liberal members of Muldoon's cabinet.

1980 Olympic boycott

Highet was Sports Minister when cabinet decided to support the United States-led boycott to the 1980 Summer Olympics in Moscow. Government stepped in and threatened the New Zealand Olympic and Commonwealth Games Organising Committee (NZOCGA) with funding cuts and cancelled leave for competitors who were in the public service. Highet appealed to the athletes to "think beyond [their] own hopes and ambitions ... any athletes who did go to the Olympic Games would be letting New Zealand down".^[5]

1981 Springbok Tour

Highet was Minister for Sport during the 1981 Springbok Tour. While Prime Minister Muldoon announced that the New Zealand Government would not intervene to stop the tour going ahead, Highet made public statements indicating that he could use his authority as Internal Affairs Minister, responsible for lotteries funding, to withdraw financial contributions to the New Zealand Rugby Union if the Tour proceeded.^{[citation needed]}