Waitaki National MP Jacqui Dean's Shop Trading Hours Act Repeal (Waitaki Easter Trading) Amendment Bill to extend shop opening hours in her electorate, which takes in Wanaka, was voted down 49 to 70 in a conscience vote.
It was Mrs Dean's second attempt to extend Easter opening hours and, despite her defeat on Wednesday night, she vowed to fight on for a change, but this time through a more people-led campaign.
"Clearly, a member of Parliament cannot bring change in this issue, because all a member of Parliament does is tap into the prejudices and entrenched views of other MPs, whether they be religious or union-led.
"What I am going to do now is start working with chambers of commerce and retail associations, many of whom have been in contact with me over the last seven years when I took up this issue," Mrs Dean said.
First Union retail secretary Maxine Gray said the Bill's defeat would "delight" shop workers.
"Despite Jacqui Dean saying that her Bill is about choice and that shops are not being forced to open, our retail members say this is not a real choice in practice," Ms Gray said.
"The country doesn't need Easter trading ...270,000 retail workers can rest assured that their Easter holiday is safe."
Mrs Dean rejected the union's claims.
"For some reason they don't think that work is a good thing.
"They can't contemplate that someone might want to work over Easter and get extra pay for doing it, because they subscribe to the view that workers are downtrodden people.
"Well, I don't subscribe to that view. I think, actually, that work is good."