Thankyou very much for visiting my blog on New Zealand since 1968, a subject I am very passionate about!
So far my posts have been in the format of an e-Book I intend to publish, but may not be able to as I concluded at 1992. These posts correspond to chapters that would have (will?) make up the book:
1968-70 (a shorter timeframe due to Wahine discussion);
1971-76;
1977-82;
1983-88;
1989-91 (point where I left off);
...and the final post to-date is: Christchurch Earthquakes of 2010 and 2011. I would like to continue with shorter blog-type posts, such as the Earthquakes, if I feel there is an interest in this blog.
Thanks again for visiting this site! Please Comment and/or Join if you wish to let me know that you'd like me to continue compositions.
Miles Cheifetz,
Sydney.
A social, political and economic history of modern New Zealand from the late sixties.
Friday, 20 July 2012
Christchurch Earthquakes 2010-11
Christchurch Earthquakes 2010-11
On 4 September 2010 at 4:35am a magnitude 7.1 earthquake
struck the Christchurch, New Zealand region, causing massive damages to public
and private properties, roads, infrastructure and a feeling of mass panic. Christchurch
is considered the third-largest metropolitan centre in New Zealand after
Wellington, but depending on the determination of political boundaries, some in
the news media labelled it the second-largest. Its total greater population is just
shy of 400,000. The event was named the Darfield Earthquake, as it was centred on
the outskirts town of Darfield, forty kilometres west of the CBD. There were no
fatalities directly linked to the quake, although one elderly person died of a
heart attack, and there were two serious injuries. However there were recorded
approximately one-hundred minor injuries. Depth of the Darfield Quake was ten
kilometres, which is considered quite shallow, and this is the reason why the property
damage was widespread and massive. The Earthquake Commission (EQC) has valued
the costs to be in excess of $4billion, which was quoted to Treasury. Water was
contaminated, power was disrupted, there were gas leaks, and one of the biggest
problems was widespread liquefaction, in the CBD and throughout the large
suburban area of the metropolis. Liquefaction, which involves the earth itself
becoming de-solidified, was the cause of many houses’ foundations cracking, as
well as roadways breaking up.
As well as many notable public buildings being extensively
damaged in the city-centre, those in Banks Peninsula, Lyttleton, Horata and even
as far south as Timaru experienced major damage. Some buildings had to be held
up with props, such as the Oxford Terrace Baptist Church (which was later
completely destroyed in the February 11, 2011 aftershock). Godfrey House (Banks
Peninsula), the seven-storey Manchester Courts and the Repertory Theatre
suffered extensive damage. The former ended up practically in ruins, whilst the
latter had its façade almost annihilated. The Darfield Earthquake involved
massive property damage, a state of emergency and widespread panic, but
thankfully no one died.
This earthquake was followed by thousands of aftershocks, as
is normal with a major earthquake, none of which were newsworthy, but this all
changed almost six months later, on 22 February 2011. 185 people lost their
lives. At 12:51pm, epicentre two kilometres west of Lyttleton, ten kilometres
southeast of the city centre, the largest aftershock to the September event,
struck. Magnitude 6.3 on the Richter Scale, which was smaller than the
September 2010 event, but only half the depth at five kilometres down, this
quake not only destroyed myriad buildings, including large ones and even skyscrapers,
it killed 185 people, making it one of New Zealand’s largest peacetime
tragedies.
The key areas of deaths were:
1.
115 people in the CTV Building
2.
29 people in PGC House
3.
Grand Chancellor Hotel
4.
Other central-city buildings and shops
The (Canterbury TV) CTV building involved a school of
English for young people from Asia and Saudi Arabia, and this was the location
of most of the fatalities in the structure. Most were from Japan and China. The
total deaths were approximately one-hundred Christchurch residents, about 90
per cent from Christchurch metropolitan area, the other ten per cent from
Waimakariri and Selwyn. Only one New Zealander not residing in Christchurch or
Lyttleton died: from Wellington. There was hope that survivors would be pulled
from the wreckage, but only one eventuated. On the upside, it was initially
feared that up to twenty-two perished in the Christchurch Cathedral, but after
an extensive search it was determined that no one had died inside it.
Almost half of the three-thousands buildings contained
within the CBD became safety issues, and out of these one-quarter were expected
to be demolished. Of structures in excess of five storeys, as of time of
writing (July 2012), over half – over 100- have been or are being demolished.
The iconic Christchurch Cathedral lost its spire, no fatalities occurred there.
The six-storey Canterbury Television (CTV) building collapsed in full and
contained many students of English from mostly Asia, but also the Middle East.
Over 115 people lost their lives in this building alone. This was the main area
of death in the quake. The four-storey Pyne Gould Corporation building – PGC House-
also totally collapsed and twenty-nine persons perished there. The largest
building, the Grand Chancellor Hotel, a 26-storey skyscraper was irreparably
damaged on 22 February, and stood on a precarious angle for quite some time. It
was feared to collapse, and by May 2012 was totally demolished.
Other buildings severely damaged were the Oxford Terrace
Baptist Church, the historic Canterbury Provincial Council Buildings- the Stone
Chamber completely collapsed- and many other government buildings, churches and
historic structures.
Why this earthquake was so deadly compared to the September
event:
1.
Epicentre was much closer to Christchurch’s
city-centre and right in the heart of the metropolitan area, whereas September
one was forty kilometres out
2.
Depth was twice as close to the surface at five
kilometres, cf. ten for previous one
3.
Earthquake occurred at lunchtime, where there
were many office workers, retail workers and shoppers around
4.
Many structures were already considerably
weakened by the effects of the September quake
5.
Liquefaction was even greater than after the
previous quake
The Key Government’s response was immediate and swift, and a
number of countries assisted with the Search-and-Rescue effort. These were
Australia- New South Wales, followed by Queensland, Japan, UK, China, America
(California), Singapore and Taiwan.
There have been many aftershocks after this catastrophic
event, the most notable of which was in December 2011. Despite Wellington being
regularly cited as the most likely location of a major earthquake, due to its
location on the fault line, and the fact that it is well-overdue for a major
event, it was Christchurch; hundreds of kilometres away that has copped the “Big
Ones”. Kiwis have always been a close-knit people, and without exception, they
banded together to provide financial and emotional support, as well as support
in the form of food, clothing and medical provisions to their Christchurch
neighbours. Although badly dented, physically and emotionally, the New Zealand
Government, future governments, and all New Zealanders will aid in the rebuilding
of Christchurch and Canterbury, and it will have stronger structures and more
resources to cope if there is another major shock in the future.
Tuesday, 17 July 2012
1989-91
Chapter 4: 1989-91
After Lange’s
departure as leader of the party and leader of the country, Deputy PM, Minister
for the Environment and Minister for Justice Geoffrey Palmer was elected in August 1989. He knew that
Labour was doomed at the election to be held the following year, from the moment
he took the reins of power. Moore was to be PM for a year, until September
1990, and although a worrying time for Labour,
his succession to the leadership was quite a successful move for the party. It
put an end to the bitter caucus infighting between Lange and Douglas supporters which had now blighted
the party for close to two years, as well as, of course, the intense rivalry
between the two personalities themselves. It also worked well as Palmer was a
likeable figure within both the Party and in the opinion polls, and he was not
a divisive or controversial figure. He could also see that the Party’s time for
radical reform was over and that New Zealanders were by this time just wishing
for a return to economic prosperity or at least recovery, and socially for life
to settle back to normal. As well as authoring an influential book, “Unbridled
Power”, during his thirteen months at the top, he also set up the royal
commission that recommended switching to the Mixed Member Proportional (MMP)
voting system, passed the New Zealand Constitution
Act 1986 and laid the groundwork for the Resource
Management Act.
In September 1989 there was yet another change in
leadership, and therefore the prime ministership: the new leader became Mike
Moore, who led the
doomed ship that was the government for a very short period of less than two
months. He was chosen to contend the party leadership as Palmer’s electoral
support, although good at the beginning of his leadership, had plummeted, in
line with support for Labour.
It was hoped that the sinking ship may be repaired and go on to sail the high
seas after November, although that definitely wasn’t to be the case.
After over half a decade of major economic upheaval:
ground-breaking reform, prosperity, disaster- New Zealanders were ready for a
new conservative decade, and many decided a return to the Right was the best
way to go. The 1990s was ushered in with terrible economic conditions- massive
unemployment, continuing
inflation, mortgage defaults, business bankruptcies and a generally sluggish,
zero-dynamic state-of-play. The January 1990 sesqui-centenary, celebrating 150
years since the Treaty of Waitangi was not eagerly-awaited; in fact it was
considered by many (and eventually played out to be) something of a non-event.
One of the first acts of the new Bolger National Government was surprisingly a very social democratic
move to return $1 billion worth of
lands, waters and fisheries to the Maori People. The following year a move that was
more right-wing occurred: the Employment Contracts Act. As the new decade
progressed, there were tragedies: the 1995 collapse of a rural viewing platform
where many youth lost their lives. Early in the new decade such consumables as
fax machines, button telephones, a huge growth in VCRs, and the introduction of
pay TV occurred. Mid to late decade the introduction of the Information
Superhighway/ cyberspace - the Internet, or more correctly, a new and
revolutionary side of the Internet called the World Wide Web.
Websites would spring up virtually overnight for businesses, government,
information, leisure and practically every area of life. The 1990s would see a
vast take-up by New Zealanders of mobile (cell) phones, personal computers
(PCs) with dial-up Internet access, and then broadband high-speed Internet, and
by the end of the decade, flat-panel Plasma or LCD TVs with digital
broadcasting/transmission. Kiwis youth, both Pakeha and Maori,
would also become more disillusioned with life, than ever previously
experienced, and would assist the creation of a new and permanent underclass.
Sesqui 1990 (Sesquicentennial) in February 1990 was
ostensibly a big deal that fizzled out before it had really even begun.
Wellington was chosen for its centre as it marked 150
years since the founding of Wellington and of the signing of the Treaty of
Waitangi.
It was also chosen as it was the newly-created cultural Capital since the
Wellington City Council 1989 adoption of its new theme and plans for many years
to come: ‘Absolutely Positively Wellington’. (It was
further expanded upon in 1993, under Mayor Fran Wilde, former Lange Government Minister). The council played on
the extant feeling of Wellington that it was cultural and modern-European and
it moulded the new and ambitious plan to redevelop the city in the minds of its
people, but also of its image around the country and overseas. Even though
Auckland was more cosmopolitan, more multicultural, had
a milder climate (no wind!), Wellington was the perfect choice for the
country’s celebrations...or so the planners believed. In a nutshell the event
was an abysmal failure. Marketed as ‘New Zealand’s Biggest Event Ever’ in
1988-89, it was slated to run for six weeks, and to be held at two locations:
the Winter Showgrounds in Newtown, where Wellington’s annual Winter Show had
been held for many years which was an amusement park-styled location just five
to ten minutes from the Central Business District; and also the fairgrounds at
Taranaki [Street] Wharf almost in the heart of the CBD. After only twelve days
the event was abruptly closed, and in addition to being a disaster for both the
government and the Wellington City Council, it was also a financial
catastrophe, where a massive $6.4 million ended up being owed to creditors. In
fact it has become something of a reminder to New Zealanders of corporate
mismanagement on a grand scale. The festival was to include cultural, trade and
scientific exhibits, as well as entertainment and fun park amusements, the
latter mostly at the Newtown location. Because of the large amount of monies
still owing when it was prematurely shut down, it had a flow-on effect of
causing receiverships and bankruptcies of a number of smaller companies who had
been contracted to provide various goods and services. Sesqui was effectually
doomed before it had commenced as many Wellingtonians and those from other
parts of the nation were disillusioned with life in general due to the sharp
recession, unemployment rivalling that of the Great Depression and a
belief that all the pain of the Lange years had only dragged personal incomes down;
there had been little reward. As well as the financial slump, there was at the
time a generally depressed and negative psyche. There occurred graffiti of the
major billboard on the Urban Motorway (Hutt Road), and the official Sesqui
mascot, named ‘Pesky Sesky’, which may have been an opossum or even a sasquatch
(?), had blown away in one of the capital’s notorious windstorms! All in all, there
was little public support for the event, even though it should have been a
meaningful anniversary of New Zealand. Added to the loss to taxpayers and
Wellington ratepayers was the $150,000 fireworks on the evening of the opening
day, which would be approximately $300,000 in today’s dollars. Sesqui 1990 was
the absolute antithesis of the 1988 Bicentenary across the Tasman.
The Commonwealth Games in Auckland in January 1990 was a totally different story.
Watched by hundreds of millions around the globe, it was a fantastic showpiece
for New Zealand in general, and Kiwi sports talent in particular. It was an
administrative and commercial success. Although all Commonwealth Games (like Olympic Games) are a drawcard for dozens of countries,
this was handled differently to Sesqui,
and Auckland further cemented itself as the dominant centre to Wellington’s
detriment. The Games logo was a shooting star motif and was called the “Hungry
Enzyme”. The official mascot was a revitalised Kiwi, “Goldie”, and was
perceived to be a major success. It had been the mascot for both Olympic and Commonwealth Games teams in the past, and was still in its
original form. Goldie became a strongly competitive force after being depicted
as a performer in each of the Games’ sports. The official anthem was “This is
the moment”, sung by Chris Thompson. New Zealand performed well, coming fourth,
after Australia, England,
and Canada, and this was a very acceptable result. The fourteenth Games were
the Friendly Games, as in 1982 in Christchurch,
and were officially a part of Sesqui. The main stadium was Mt Smart and ten
sports were on offer: athletics, aquatics, badminton, boxing, cycling,
gymnastics, judo, lawn bowls, shooting and weightlifting. There was also the
Triathlon, a demonstration event. The official medal tally was: Gold: 17,
Silver: 14, Bronze: 27, total: 58 medals.
As the first stage in a long-awaited reform of the
currency,
in fact the first since decimal currency was introduced in 1967, 1990 saw the
abolition of one and two cent coins as legal tender. Later fives and tens would
be removed, and then one- and later two-dollar coins were introduced. Further
on there would be a major transformation - in the 2000s, where paper currency was
replaced with plastic notes that, along with watermarks and other security
features, would become un- counterfeit- able. Much later, in 2010, twenty cent
coins were removed from circulation and fifty cents became small and light. The
New Zealand changes mirrored Australian government mint reforms in terms of
removal of one and two cents and plastic notes, but New Zealand went further
with the discarding of ten cents, twenty cents and physical reduction of fifty
cents. Today, New Zealand has a streamlined, efficient currency that is in tune
with the twenty-first century.
Telecom was sold in this year for a whopping $4.25 billion. This occurred under the Labour government, just before the election of the new Bolger National administration. In 2010 Bolger said of the sale that it was a mistake, and
that New Zealand governments, [Labour or National],
have been inept at privatisation.
Prior to the sale, in 1987, it had been split off the Post Office, and of late,
NZ Post is facing a severe and inevitable decline in its core business, a
situation which may be halted if it can embrace the delivery side of the
massively-burgeoning e-Commerce trade, such as Australia Post has most successfully done. Bolger said that “With glorious hindsight you could
say we hung on to the wrong bit”, but added that at the time the deal was done,
the postal business was the “right bit” to retain. (See Bennett, 2010).
The year 1990 was a momentous one in Europe with the death of Communism, manifest most
famously in January with the tearing down of the Berlin Wall, to create a
unified, democratic Germany. This was watched on television back home on now three channels (TV3
established two years earlier), as well as radio and newspaper. Also, Kiwis
witnessed the crumbling of the Soviet Union partly thanks to Mikhail Gorbachev, which did
not deliver the successful type of democracy in Russia and the new CIS that
occurred in Germany. In short, major overseas and local events were becoming
more a part of New Zealanders consciousness by the new decade than ever before,
and this would be even greater still by the end of the nineties, with more
television channels and especially the Worldwide Web.
In this year Catherine Tizard (later Dame Catherine) became the first female
governor-general of New Zealand. Born in 1931, in Auckland,
she attended university in 1949 and met her husband, whom she married two years
later. After having four children they eventually separated. Her first
administrative position was at the Play Centre, which she later became
president. After this she was elected to the Board of Governors of the Eastern
Suburbs Secondary Schools of Auckland. After returning to university in 1961 to
complete a degree in zoology, she became a part-time tutor for the Zoology
Department at Auckland University the following year. This turned into a tenured
appointment. In the early 1970s Tizard was elected to the Auckland City Council
and remained a councillor until 1983. At this point she was elected the first
woman mayor of Auckland. Immediately after leaving the mayoralty in 1990 she
became New Zealand’s first woman governor-general, a post she would hold until
1996. Whilst Mayor, in 1985, she was awarded a DBE, and as governor-general,
received a GCMG in 1990. During her tenure as Governor-General,
it was not always easy sailing: at the Waitangi Day celebrations on February 6, 1995, she was spat
on, which was out-of-keeping with the usual respect New Zealanders have for
their Queen’s representative. Earlier, as Mayor, in December 1984, during the
Dave Dobbin concert Queen Street riots, she found herself in the thick of the
random violence. In 2002 Dame Catherine became a member of the Order of New
Zealand (ONZ), which was the replacement of the old Order of the British Empire
(OBE). In recent years Dame Catherine has had a hand in a number of community
groups, such as the Historic Places Trust, the Marriage Guidance Council (!),
the Auckland Institute and Museum, the Auckland Theatre Trust and the Auckland
Maritime Museum Trust. (See NZ Government, 2011). At time of writing she is
eighty-one years of age.
The Sky TV Network from the United Kingdom began
pay-broadcasting in New Zealand in 1990. Previously only available in
commercial premises such as pubs and hotels, it was now available for anyone to
view from their home. It was founded in 1987 as Sky Media and was redirected
into pay television following a successful bid for four groups of
UHF frequencies in Auckland,
Hamilton and Tauranga. It initially received rights from ESPN, shortly followed
by CNN, HBO, BBC and Sky Movies. As Sky extended its coverage throughout most
of the country in 1994, it launched two new channels: Discovery and Orange. By
1996 the entire nation had full, uninterrupted coverage. In 1997 Sky introduced
Direct Broadcasting via Satellite (DBS), which was an analogue service using
the Optus B1 satellite. This allowed
for more channels and interactive choices. In December 1998 Sky went digital,
which was several years ahead of Foxtel in Australia.
Sky had some problems with customer understanding of
decoder technology, but after simplifying it, it was taken up with vigour.
There was a brief period of Sky email – ‘Skymail’ – but due to low take-up it
was pulled. Sky TV is now in over fifty percent of New Zealand
homes, and keeps the broadcast networks – TV1, TV2, TV3 and TV4 – on their feet
to deliver as good a service as Sky.
The Hawkes Bay earthquake of 1990 was 6.4 on the Richter scale and
although there was nowhere near the devastation and casualties of the 1931
Napier quake, it was still a significant earth tremor. The epicentre was Weber
(Tarewa), which is a hamlet approximately thirty kilometres south of
Dannevirke. The local geology magnified the strength of the quake and made it
seem more like an 7.0-plus event or thereabouts. The second shock to strike
Weber in this year, it occurred only twelve weeks after its predecessor. Focal
depth was thirty kilometres and the Maximum Intensity was MM9. Over the next
two years two more earthquakes would strike this East Coast region. The 1990
event was felt from Hamilton in the northwest to Christchurch in the south, and different intensities were
felt in different locations, as a result of the sediment and underlying soils
in the area. Areas that were poorly consolidated experienced greater shaking
and sustained more damage than ones that contained harder bedrock and more
compact soil. There were no deaths or reported injuries. (See Canterbury Quakes, 2012).
On 27 October 1990 a general election was held. Opinion polls prior to the day
pointed to a decisive National victory, led by Jim Bolger, and that is
exactly what transpired. National won by a landslide and the radical,
controversial era of 1980s Labour was well and truly over. In fact it only took
a little over two hours after polling stations closed before outgoing PM, Mike
Moore, telephoned Jim
Bolger to congratulate him and concede defeat. The
magnitude of the government’s defeat was even greater than the public and media
foresaw. In fact from a parliament composed of fifty-seven seats for Labour,
forty for National and one held by New Labour,
the change was a total and massive swing of the pendulum. After the election,
National now held sixty-seven seats of ninety-seven
(over two-thirds!), Labour a dismal twenty-nine and again one New Labour.
Discrepancy between the number of seats won and actual percentile share of the
vote was not so great however, as has been the case in New Zealand more often
than not under first-past-the-post.
National only received about half of the share (48
percent), Labour one-third (35 percent), and minor parties 17
percent in total. Yet again there was a case for a change in the voting system, which would in fact be put to the
public in a national referendum at the next election (1993), and would succeed, taking effect from
the 1996 election. However it was
a great victory for the conservative party, and gave Bolger an unequivocal mandate to do what his
government felt was in the best interests of the nation- whether to implement
change, to roll back some of Labour’s
contentious reforms, or whether to stick with the status quo. There was
definitely a mood in the electorate for change, not necessarily a rollback of
the past four government’s reforms, but to move forward to tackle the economic
quagmire New Zealand was currently in, and to effect social and political
changes, with especial focus on Maori.
Bolger was elected on a promise of a “Decent
Society”. This was a direct attack and repudiation on the previous Labour government’s economic reforms, although the
phrase was intended to include social decency in addition. Bolger appealed to the voters by implying that the
harshness of the previous six years would be reversed and although National as a rightist party was not known as being a
kindly or economically and socially beneficent force. Only seventy-two hours
after the election however, the new government was forced to bail
out the Bank of New Zealand (BNZ), which was in 1990 the largest bank.
Originally costing $380 million, this ballooned to almost three-quarters of a
billion, as the budget had to be rewritten. This birthing event had an impact
on Bolger’s direction of
government for at least the next three years, with the first budget being
nicknamed the “Mother of all Budgets.” (See Wikipedia, 2012).
On 13-14 November 1990, David Gray killed twelve
people at Aramoana, before police
shot him dead. A small seaside town, Aramoana is situated opposite the Otago Peninsula, about 15-20 kilometres northeast of
Dunedin.
David Gray was a recluse who was thought of as odd, but harmless. He was
unemployed. Unsurprisingly, he was a big fan of warfare, weaponry and
survivalist books, and owned a decent haul of firearms and ammunition. Also
unsurprisingly, he was going crazy, but sadly this was not discovered until
after twelve innocent people died unnecessarily. Paranoid and a believer of
fanaticism, Gray’s madness came to a head on 13 November. NZ City crime and punishment website
describes the unfolding of the events in their article, “The Aramoana
Massacre”:
“At
around 8 pm Gray and his next door neighbour, Garry Holden, were heard arguing.
Rifle shots were heard and Gray entered the Holden’s' residence where he shot
at Chiquita Holden (Garry's daughter) wounding her. Chiquita ran out of the
house to raise the alarm. She discovered her father's body face down in the
yard. She fled to friend Julie Ann Bryson's house. Mrs Bryson rang 111 and then
took Chiquita in her van back to her house knowing Chiquita's sister, Jasmine,
and Julie Ann Bryson's daughter, Rewa, were there still, having hidden when
Gray shot at Chiquita.
The Holden's house was on fire and Gray was standing outside. He fired on the pair as they passed by in the van. The local men in the town were alerted to the fire and came to see what was going on. Most will never forget the sight of Gray with a balaclava rolled up over his head and a rifle in his hands as he took shots at any moving targets. Vanessa Percy was gunned down as she ran screaming down the street. Gray then shot and killed two boys, Leo and Dion Percy. Their sister, Stacey, suffered severe wounds to her abdomen. All three children were in the back of their father's Ute on their way home, when their father had seen the fire. Ross Percy, their father, and Alec Tali were shot and killed near the Ute. Gray entered the Jamieson residence and killed locals Vic Crimp and Tim Jamieson. Jimmy Dickson was killed as he looked for his dog and his wife who went looking for him watched in horror as David Gray shot Chris Cole who was out walking. She managed to crawl for help but unfortunately help had come too late. Chris Cole died in hospital.
The Holden's house was on fire and Gray was standing outside. He fired on the pair as they passed by in the van. The local men in the town were alerted to the fire and came to see what was going on. Most will never forget the sight of Gray with a balaclava rolled up over his head and a rifle in his hands as he took shots at any moving targets. Vanessa Percy was gunned down as she ran screaming down the street. Gray then shot and killed two boys, Leo and Dion Percy. Their sister, Stacey, suffered severe wounds to her abdomen. All three children were in the back of their father's Ute on their way home, when their father had seen the fire. Ross Percy, their father, and Alec Tali were shot and killed near the Ute. Gray entered the Jamieson residence and killed locals Vic Crimp and Tim Jamieson. Jimmy Dickson was killed as he looked for his dog and his wife who went looking for him watched in horror as David Gray shot Chris Cole who was out walking. She managed to crawl for help but unfortunately help had come too late. Chris Cole died in hospital.
Sergeant
Stewart Guthrie , from Port Chalmers police, and Russell Anderson, the local
Fire Chief, with sirens blazing and an ambulance following, approached Aramoana. Fire engines were on alert and
had to remain a certain distance away until the gunman was put under restraint.
They split up and began to take in the dreadful scene and to locate Gray.
During this time Sergeant Stewart Guthrie was shot and killed by Gray.
The Armed Offenders Squad had been called in and they surrounded Aramoana. All care had to be used as Gray had a high powered rifle with telescopic sights and was shooting at anything that moved. They moved slowly and when the dawn came up the next day the realisation started to hit New Zealanders of what was taking place. In the dark, early the next morning, many brave police officers slowly moved in. Gray was still at large and after claiming thirteen victims had to be considered one of our worst murderers of all time. In Bill O'Brien's book, "Aramoana - The True Story" he describes the many heroic acts that the police and residents performed. An anti terrorist unit was in the area helping to co-ordinate the scene. One by one the squad entered and searched houses still not finding Gray. Finally he was located and after tear gas was thrown in, he came out of the house shooting, yelling "Kill Me". Five shots hit Gray and he was killed. The siege was finally over.
This had taken 34 hours and the dedication of the police and Armed Offenders squad, a number of whom received Gallantry Awards from the Queen.
Rewa Bryson and Jasmine Holden's bodies were found in the burnt out Holden home. Thirteen people lost their lives and a town lost it's peace and serenity. David Gray is now believed to have been schizophrenic or otherwise mentally disordered - but for whatever reason, he became one of New Zealand's most horrific mass murderers.” (See NZ City, 2012).
The Armed Offenders Squad had been called in and they surrounded Aramoana. All care had to be used as Gray had a high powered rifle with telescopic sights and was shooting at anything that moved. They moved slowly and when the dawn came up the next day the realisation started to hit New Zealanders of what was taking place. In the dark, early the next morning, many brave police officers slowly moved in. Gray was still at large and after claiming thirteen victims had to be considered one of our worst murderers of all time. In Bill O'Brien's book, "Aramoana - The True Story" he describes the many heroic acts that the police and residents performed. An anti terrorist unit was in the area helping to co-ordinate the scene. One by one the squad entered and searched houses still not finding Gray. Finally he was located and after tear gas was thrown in, he came out of the house shooting, yelling "Kill Me". Five shots hit Gray and he was killed. The siege was finally over.
This had taken 34 hours and the dedication of the police and Armed Offenders squad, a number of whom received Gallantry Awards from the Queen.
Rewa Bryson and Jasmine Holden's bodies were found in the burnt out Holden home. Thirteen people lost their lives and a town lost it's peace and serenity. David Gray is now believed to have been schizophrenic or otherwise mentally disordered - but for whatever reason, he became one of New Zealand's most horrific mass murderers.” (See NZ City, 2012).
1991-94
One of the first events of the year 1991 was the
Bolger Government enactment of the Resource Management Act 1991, which involved
rewriting planning law. On the NZ Government Legislation website, the purpose
of the Act is stated:
“An Act to restate and reform the law relating to the
use of land, air, and water”. (See New Zealand Government, 2011).
It
also states in the definition that its “… purpose… is to promote the
sustainable management of natural and physical resources.”
The
Resource Management Act (RMA) has been lauded as the best act of its kind in
the world by the United Nations, and was a game-changer for New Zealand
environmental management. United Nations Economic and Social Commission for
Asia and the Pacific (UNESCAP) states that: “New Zealand created
the Resource Management Act because it was bankrupt and could no longer afford
the costs of a centrally regulated administration”. This a pretty wild,
unsubstantiated theory which UNESCAP does not elaborate on or explain, but it
is clear that the country was indeed in a lot of economic trouble and there had
been a massive move away from centralisation under the Labour years, which
National was not keen to sweep away. The Web document discusses the
sustainability of the Project under two banners: Awareness and vision, and
Style of Government adaptability. Still a fairly regulated department, the
Ministry of the Environment initially struggled to implement such a
fundamentally nouveau and modern structure and one important official in the
Ministry commented that the Act resulted in “total chaos” (see UNESCAP, 2003). Although
a mammoth undertaking, the Act sought to reorganise and decentralise power
mandated within its structure, to achieve a situation where the combination of
recession and national threats to natural resources and soils, for example,
would be addressed and positive action taken in the years to come. The Act has
been very successful and a model for other nations, especially in the
Asia-Pacific region, and revisions were made in 2009.
In 1991 the Finance Minister, Ruth Richardson,
brought down her first budget. Named by the media as the “mother of all
budgets”, it entailed huge reductions in social welfare expenditure. The dole
and several other benefits were cut and for the first time rents were charged
for state housing. These were however substantially lower than market levels
for private rental. Not long after this budget, the term “Ruthanasia” was
colloquially coined, meaning a similar thing to euthanasia. The ’91 Budget
introduced market forces in the operation of schools, hospitals and
universities by introducing user charges, as well as a directive to
universities and Polytechs to compete for enrolments. The super surtax which
was implemented under the Labour administration was left unchanged, which
proved controversial in itself. The Budget additionally created a new scenario
of reduced governmental standards in favour of market forces.
In 1991 Jim Anderton formed the leftist Alliance
Party, which would play a significant role in the later National governments of
the nineties, and the Clark Labour years in the noughties. The Alliance would
also ‘write the book’ for the new powerful role of minor parties from the
commencement of Multi-Member Proportional representation (MMP) at the 1996
election. A fiercely left-wing, green and labour-oriented party, it grew in
1991 out of the remnants of four parties: NewLabour, being the largest and led
by Anderton, Democratic Party- which was sympathetic to the old Social Credit,
Mana Motuhake- a forceful presence in the Maori population, and the Greens.
Anderton was a disgruntled Labour MP prior to 1989, and had expressed his
dissatisfaction at the direction the Party had taken throughout the former
decade, whilst in government. He was especially found the radical rightist
economic policies, i.e. Rogernomics, distasteful. During the 1990 election
Anderton ran under the aegis of NewLabour in his existing seat, and
surprisingly (to him and the media) retained it. This gave him new-found impetus
to make NewLabour into something much bigger and this was when Alliance was
formed.
In the 1993 election Anderton consolidated his
vote, gaining more ground- they won 18 percent of the vote, but this actually
really meant an additional second seat was one- Sandra Lee Vercoe in Auckland. Anderton
was a huge supporter of MMP before the ’93 referendum (part of the general
election) as it obviously meant a goldmine of new List seats for his party, and
was a new man after its successful yes-vote. As a result of MMP Alliance gained
10 percent of the vote at the ’96 election. Two were the electorate seats held
by Anderton and Vercoe, and a further eight were Alliance List seats. This made
Alliance a third force in the Parliament, effectually for the first time in New
Zealand’s century-plus history of the chamber. Despite the Greens greedily
deciding to leave the Alliance the following year in the grand belief they
could do better on their own, the party continued to make ground at the 1999
election, where voters aligned them with the expected-to-be Labour government,
which had returned to their grass-roots traditionalist approach to economics;
Clark fundamentally eschewed the Lange years and nothing was spoken of that
time during her long tenure in office.
In 2002 Anderton left the group which was now in
its decline electorally. At this time there was a split and after a short, but
vigorous decade of power, Alliance has practically dwindled away. On their
website, which is a free, Wordpress blogging site, their banner is “New
Zealand’s Democratic Socialist Party”. At the 2011 election it stood fourteen
candidates, of which nine were list only, and five were list and electorate
candidates. The co-leaders are Kay Murray and Andrew McKenzie, who were
respectively numbers one and two on the list.
The Alliance has not had any representation in the Parliament since the end
of the 1999 to 2002 parliamentary term, which is now a full decade, and its
share of the vote, which was almost eight percent during that period, has
dramatically fallen at each election from 1.3 per cent, to 0.07 to 0.05 to
currently 0.03. It has been virtually obliterated. The massive success of John
Key’s centre-right National government at the 2008 elections, and even more so
in late 2011, has continued to turn voters away from centre-left and left-wing
parties. These parties are facing a similar catastrophic situation to the
Australian Labor Party, where many are questioning whether they have had their
time.
The Employment Contract Act (ECA) of 1991 was
perhaps one of the two most far-reaching and controversial projects of the
National administration of the 1990s (second being the land rights package) and
would be copied by Australia in the twenty-first century. It was intended by
Bolger to be the pillar of his era, and that it certainly was! The key premise
of the legislation was that it would make New Zealand competitive again and
pull it out of the deep hole it had entered at the end of the eighties. ECA
provided the maximum freedom to employers and employees to bargain together
without any government intervention. It could be described as a shift from
collectivism to private arrangement/individualisation in the workplace,
although as the nineties progressed employee groups and unions cried foul that
the system allowed unfair, unscrupulous employers, especially large
corporations, to bully the workforce to the extent of being unemployed if
labour did not comply. Unionisation was struck a double (fatal?) blow where it
became voluntary and fundamentally impotent. On the opposite spectrum the peak
employer organisation, New Zealand Employers’ Federation, and smaller employer
groupings began to complain that the contracts were becoming impossible to
create and operate due to a rising militancy in the workforce in direct
response to the Act. Weekend and public holiday penalty rates became a thing of
the past (at least until ECA was repealed and replaced by the Labour government
in 2001), and this was compensated by higher regular pay rates and a new
American-style system of bonuses, commission and non-monetary benefits. There
was physical evidence that in the five years from its inception the New Zealand
economy had become competitive again, and that this was directly attributable
to the success of the ECA, but in the latter days of the regime, academics and
some in the media began to argue that it was not due to ECA; that it was just
in effect a corollary of the boom-bust cycle of the economy. Brian Easton, in
his long-running essays argued thus in 1997, mostly by repudiating an
Australian economist’s claim that the growth was wholely the work of the ECA:
However … the empirical evidence does not support his conclusions. There
appears to have been little economic benefit, if any, from the ECA, other than
perhaps for employers at the expense of workers. In particular there is no
evidence of significant productivity gains, an issue that is explored in this
paper. International comparisons support the likelihood that the ECA did not
have an economic benefit.”
He goes on to corroborate his conclusion by citing such factors as a
drop in real wages, questionable labour productivity growth, the ‘productivity
puzzle’, an actual fall in employment since its inception, low enthusiasm for
the ECA and the economy at macro-level, as well as a comparison of economic
growth before and after similar regimes in the US and Western Europe. He
summarises thus:
This pattern has been true among advocates of the ECA. On the basis of
the empirical evidence it is very difficult to reach, in a systematic way, any
strong conclusions about the beneficial economic effects of the Employment
Contracts Act. In particular the poor productivity growth rules out the
likelihood that the ECA was a major contributor to the macroeconomic expansion
of the mid-1990s. The Act would, however, seem to have contributed to the poor
real wage growth and the failure of many workers to obtain a share in any
increase in the prosperity of the 1990s.” (See Easton, 1997).
The salient question at this juncture is why did
the Contracts Act fail (as it did in Australia several years later), and not
just as a corollary of a change in government? I hypothesise three likely
factors:
1.
The system became to be seen as
inherently unfair for ordinary wage-/salary-earning employees: obviously the
ECA had a built-in bias towards ownership and management of labour, often but
not necessarily to the detriment of the worker. The union movement in New
Zealand was near-death by the final decade of the twentieth century, not only
due to ECA, but it had been gradually fading since Muldoonism and ECA was
practically its death knoll. Because of the union movement’s impotency the
strengths of ECA steamrolled and this might have assisted the Bolger
administration, but the people disallowed it. One of the most contentious
points was its banning of weekend and public holiday penalty rates, especially
prevalent in the hospitality, retail and service sectors. Why should families
and couples sacrifice their evenings, weekends or public holidays to the
obvious benefit of the company but not for any personal profit? A system that
was designed nearly a century prior and had worked well for economy and society
wasn’t broke, so why fix it? This leads to the second hypothesis:
2.
ECA became to be seen as a direct
antithesis of New Zealand’s English-founded Westminster system, long considered
moral and just, and the former strongly against Seddonism, which advocated
fairness in the workplace and social stratum. It was more closely aligned with
an American regime, neither appropriate nor desirable for this part of the
world, and would not, and could not function over the longer term. There was
certainly no alacrity amongst organised labour and even employee groups such as
the NZ Employers’ Federation demonstrated at times a hesitancy to operate in
the full spirit of the Act. New Zealand became to be seen as a harsher
environment than most European societies, Canada and Australia (the latter’s
adoption of the system, ‘Workchoices’ was considered to be a watered-down
version of ECA) and condemned for it by some in the international community.
3.
As a consequence of the above-two hypotheses
ECA became a definite liability for the National Government at both the 1993
and 1996 polls, although it wasn’t enough to end their reign. By 1999 however
it factored in strongly for voter displeasure and the new Clark Labour
government had promised the voters that it would abolish the system if it won
the general election. ECA undoubtedly played a significant hand in Labour’s
ascendancy to the Beehive’s government offices, but it was not the only reason
National was kicked out. Nine years, or three terms in office is a long time in
New Zealand, and the public wanted the other crowd back in. Nevertheless the
magnitude of Labour’s win may have been more muted if not for ECA.
The year 1991 saw the Consumer Price Index (CPI) at
its lowest level since 1976. CPI measures general inflation, and after the
extremes of the seventies and much of the 1980s, this was not such a great
achievement as it may appear at face-value, but was still a pleasing event for
the early days of the new government. However it also underlay the new depths
of the recession, which was not showing any real signs of disappearing. It may
however have been viewed as a new beginning, a possible light at the end of the
tunnel, after close to twenty years of massive spikes in the CPI; a possibility
that National may well pull the nation out of its deep quandary and even bring
back an era of prosperity not visaged since the late sixties. Inflation is
unfortunately a double-edged sword though; a cycle in keeping with the
boom-bust nature of Western economies: prices come down, stabilise, interest
rates drop in tandem, this aids personal and corporate saving, but also
encourages discretionary spending and before long prices are creeping up again.
This was the case in the nineties in New Zealand, but throughout the decade
never reached the despairing heights of the previous two decades.
Jim Bolger cut welfare payments at the July 1991
Budget for the financial year 1991-2, in line with his centre-right,
conservative agenda, and to put the Budget in a surplus direction. The freeing
up of hundreds of millions of dollars also assisted economic recovery for other
programmes such as infrastructure and to relieve the dire state of Balance of
Payments (BoP) and foreign debt. As expected, it also attracted the ire of
social welfare groups, sections of the electorate and the Opposition. The key
areas of spending cuts were health, housing, education and pensions, which
affected almost fifty per cent of the population (two million persons), and in
effect terminated what some may argue was the most comprehensive social welfare
system on the globe, including Europe. This may be a little over-exaggeration,
but it was clear from August 1991 that New Zealand’s social welfare foundation
was, if not crumbling, at least in serious jeopardy. However it was believed to
be the only option by Bolger and National- and perhaps even grudgingly by
Labour and the Alliance- to yank the country out of deep trouble that had not
been seen since the Great Depression. This action, along with 1 April
reductions in unemployment and sickness benefits and the first mini-budget of
December 1990, came with its casualties within the Party: shortly after the July
budget four National MPs crossed the floor, and in August two resigned to
become independents. In October the then Minister for Maori Affairs, Winston
Peters, who would go on to form New Zealand First, a populist centre-right
party, that has performed better and better (especially in the 2011 election),
was sacked from Cabinet due to his consistent and increasing criticism of the government.
This was foreseeably a bad move as Peters made life quite difficult for the
government for much of the rest of the nineties, especially after he quit the
Party.
In 1991 the number of unemployed exceeded 200,000
for the first time. This represented five per cent of the total population
(men, women and children) and closer to ten per cent of the labour force
(people aged fifteen to sixty-five who were not infirm or disabled). Social
welfare spending cuts and sickness benefits initially assisted an increase in
the employment levels, but it was not until 1992 when economic recovery was
underway that the figures started dropping. This was the low point, but was
also indicative of a new New Zealand where the heretofore aim of zero
unemployment was no longer a reality, and that a more meaningful figure of 2-3
per cent may be more realistic for the 1990s and into the new millennium. After
twenty years of mostly high unemployment levels it was believed by economists
and social scientists that zero or even very low unemployment was no longer
possible; the cultural changes brought on by the sixties and seventies had
altered this reality of not just New Zealand, but the entire Western
Hemisphere. Unwelcome news for the new administration, but blame was
apportioned to the previous Labour terms, which in part was truth, however the
electorate is not impressed by excuses; they want positive action and it is
questionable whether it was exactly that or simply the bottom dropping out of
the quagmire that was the early nineties recession, that was responsible for a
sharp turnaround in employment the following year.
In the early morning of 14 December 1991 an
avalanche on Mount Cook (Aoraki) reduced its height by 10.5 m, which brought it
down from 3764.5m to 3754m- still New Zealand’s tallest peak by far! Located in
the South Canterbury region of the South Island, it is part of the Aoraki Mount
Cook National Park, an alpine wonderland made up of twenty-seven other
mountains which are over 3000m and hundreds of others not far off that. This is
the famous Southern Alps. The avalanche, which was actually a rockslide,
involved 12 million cubic metres of the mountain collapsing, and plummeting
down the ice fields of the east face. Travelling 7.5 kilometres at an average
velocity of 200 kilometres per hour, it slammed into the Tasman Glacier on the
valley floor. There were no fatalities or injuries or property damaged, but
several climbers had a close shave: the outer edge of the rock slide passed
under 300 metres from Plateau Hut as they were preparing themselves for an
attempt on the summit. One of the mountaineers was Rob Hall, who shortly after
described his experiences to TVNZ. Sadly he died on an attempt on Mount Everest
five years later.
Senior lecturer, I.F. Owens, Department of
Geography at the University of Canterbury commented on the avalanche in 1992:
“In some ways this was an unusual event. Its
vertical extent of over 2700m is large compared to most historical rock
avalanches…but the fact that it originated at the highest point of land and
reduced its elevation by some 10 to 20m is even more remarkable and has not
been reported for any other country. Another unusual feature is the lack of a
clear trigger…There was no seismic activity in the period leading up to failure
and the weather was clear. While the steep hanging glaciers on the mountain may
have removed a critical part of the support for the mass that failed, it is
unlikely that this will ever be demonstrated conclusively. Its estimated
average velocity [200 km/hr] was also quite high compared to historical rock
avalanches.” (See Owens, 1992).
In early 1991 the government sent a small
contingent of the armed forces to join the USA, Britain and the other multi-national
allies to the Gulf War (aka the Iraq-Kuwait Conflict, aka the Second Persian
Gulf War), in Kuwait. President G.H. Bush had given Iraqi dictator Saddam
Hussein many opportunities to pull out of Kuwait, but to no avail. New Zealand
contributed a medical team of around one-hundred and three C-130 Hercules
transporter aircraft. As with the Iraq War of 2003, there was no direct
military involvement, i.e. fighting in battles. Although one of the smaller
Coalition forces in the Gulf War, New Zealand’s medical contribution was very
important, and assisted the injured from the other forces such as US, Britain,
France and Germany. The Hercules transport aircraft greatly assisted the
movement of provisions and medical supplies for the Coalition partners. The
involvement, which also took place in the First Persian Gulf War (Iran-Iraq
War) of 1980-88, and in Afghanistan (2001-), as well as Iraq (2003), showed a
re-commitment to New Zealand’s key major ally and trading partner, the US, an
effort at repairing the ANZUS rift of the 1980s and continued frosty relations during
the nineties. In 2006 US Secretary of Defence declared that the it was time to
start afresh, and this stance was further cemented by the new Bush
administration’s Secretary of Defence Condoleeza Rice, in 2007. For the first
time since the early eighties, she referred to New Zealand as an “ally” of
America.
Monday, 16 July 2012
1983-88
Chapter 3: 1983-88
If the late 1960s to early seventies was the era of
political, societal and cultural change for the country, then the mid-1980s
from 1984 to 1986 was undoubtedly the powerhouse of unparalleled economic
change. From floating of the dollar, to deregulation,
privatisation, “SOEs”,
GST,
it was all the brainchild of David Lange,
new Labour Prime Minister from July 1984, and his sidekick, Minister for
Finance, Roger Douglas.
This earth-changing period in New Zealand would forever on be referred to as
the “Rogernomics” era. Not only
did the fabric of New Zealand’s economy change, but the nation had now
completely grown up to be a fearless and powerful component of the free-market
in the global economy. Protectionism became a byword of Muldoonism and earlier,
and people’s attitudes towards where New Zealand was placed in the
ever-shrinking world (through transport and communication advances), would
theoretically become unbounded. New Zealanders had a stronger and much more
forceful psyche after the mid-eighties, but it did not come without its
challenges both at the time and for evermore, nor without a great amount of
community divide on the new direction. Nevertheless, like it or not, Labour had been elected with a sizeable majority, and
sink or swim, Lange and Douglas would utilise this mandate for
major change.
In 1983 the Closer Economic Relationship came into
being. Signed by NZ PM Muldoon and Australian PM Malcolm Fraser the previous year, this marked the start of a
new era in trans-Tasman relations, one that would provide New Zealand with a
more effective trading partner in the shape of Australia,
and one that would hopefully be even better than it had already been for over
one-hundred years. Originally an Australian initiative, prior to 1982, it
became warmly embraced by New Zealand, leading to its signing. CER has continued to the present day, being
encouraged by all later Australian and New Zealand Prime Ministers.
US nuclear-powered
navy frigate “Texas” entered New Zealand waters in 1983. It was met by
vociferous protests because of widespread opposition to nuclear power; a bipartisan and community opinion and
state-of-affairs that were becoming increasingly significant in the country at
the time. It would reach its zenith the following year with the total banning
of nuclear vessels by the new Lange Government and become synonymous with the
bombing of the Rainbow Warrior the following year. But at this period an
awakening was occurring for a fully nuclear-free
New Zealand and nuclear-free
Pacific. The latter was a response to the long-running tests at Mururoa Atoll near Tahiti. In terms of nuclear power in general the New Zealand people’s
views mirrored most of the globe’s feelings in the 1980s. The two superpowers,
Russia and USA had come closer to World War III – a nuclear holocaust caused by the escalating seriousness
of the late-stages Cold War-
than people even realised. For children and teenagers especially, but adults
also, the mid-eighties in New Zealand was a frightening time in this respect.
Added to these megalithic powers, there was also the problem of French nuclear-testing
in the South Pacific, of which some
were claiming that the radiation was reaching closer island-nations such as New
Caledonia and Fiji, and a closer
proximity to New Zealand. Whether the latter was correct or not, there was a
general mood of discontent with nuclear power, from the majority of the electorate,
and also from both National and Labour.
The key difference between Labour and National,
however, was that prior to 1984 the government was not willing to alter its
nuclear policies or risk alienating America. Not only had Labour made it clear that nuclear-powered
vessels would not be welcome in New Zealand ports under a Labour government, which were primarily those from the US, but the new leader, Lange,
had even made it part of the Labour Manifesto if elected in 1984.
In 1983 the New Zealand Party was established by millionaire property
tycoon, Bob Jones (later Sir Bob). Its fundamental policy was to
promote social and economic liberalisation, and therefore was a right-wing,
conservative minor party. Its motto was “Freedom and Prosperity” and was
occasionally classified as a libertarian movement, although this term has not been a
feature of New Zealand history. Jones’s party was sometimes credited with
assisting the defeat of the Muldoon government in 1984 by splitting the vote,
although the evidence is such that the result would have been probably even
without its existence. Muldoon’s Think Big programme, which was grounded in the prime
minister’s belief that only with massive government involvement could New
Zealand prosper- strangely contrary to the normal beliefs of a centrist-right
party- also required huge overseas borrowing to finance his projects and this
is central to what Bob Jones’ Party was all about. Jones, who was a self-made
millionaire and property tycoon, strongly opposed these policies, writing
articles against the government, in particular making the claim that the
National Government had totally abandoned its
principles of free enterprise and personal liberty. Rather than being an
opponent of the National Party,
Jones was staunchly against the particular Muldoonist brand of it, and he had
previously been a friend of Muldoon. He even
compared the government to that of Soviet Russia. The New Zealand Party had far
more radical, capitalist policies than either Labour or National,
and as well as garnering much community support, also attracted equally as much
community opposition. After Jones laid
the foundations for the party and chose its name, its primary policies were
drafted. Some of his most famous ones related to economic matters such as
adoption of laissez-faire principles, a liberalisation of the economy,
and also defence concerns, such as a total abolition of the country’s armed
forces (!), reduction of military expenditure and a cutting of defence ties
with the US and Australia.
In 1983 the Official Information Act replaced the Official Secrecy Act. This was an
important attitude-change by the Muldoon government from one of maintaining a closed,
secure system to one that was more transparent, democratic and reflected the
changing times of the 1980s. Passed the previous year, the OIA is believed to
be one of the freest FOI regimes in the world. Basically the Muldoon government reversed the old official secrets
mantra and made a declaration that all government information is open (unless
it needs to be protected). There are few absolute exemptions or exclusions,
except in matters of national security, and its underlying premise is that it
is “a balancing goal to protect official information consistent with the public
interest and personal privacy.” (New Zealand Privacy Commissioner, 2005).
By the start of 1984 Auckland’s
population exceeded that of the entire South Island!
Constant and accelerating urbanisation in the twentieth century, particularly in the
second half was not only a New Zealand phenomenon, but that of all Western
industrialised countries. In 1984 the greater Auckland metropolitan region had
a population of around 800,000, which for a small country
of 3.5 million, was significant. Two-thirds of the national population lived north of Lake Taupo. In fact Auckland’s
population was more than double the next largest city,
Wellington, which could
only boast of 350,000. Auckland has continued to grow, and is now approaching a
figure of 1.1 million. In addition to natural increase, as well as movement of
peoples from other places in New Zealand, Auckland’s meteoric rise was also
attributable to a mass drift of South Pacific Islanders/Polynesians (what are now referred
to as ‘Pasifika’). This exodus from countries such as Samoa, Fiji, Tonga,
Nukualofa, Tokelau and the Cook Islands had its roots as far back as the 1950s, but
became very significant since the 1970s. Auckland now contains more South
Pacific Islanders than any other city of Polynesia,
and in 1984 was demographically changing faster than at any time previously.
However Auckland’s rapid growth up to the mid-eighties wasn’t solely due to
South Pacific immigration,
but also it was New Zealand’s gateway for immigration,
because of its already-established migrant population network, its size, it being almost an
‘international city’, and its mild climate. As well as South Pacific immigration to Auckland in 1984 by Polynesian peoples, its already large Fijian Indian
population (in large numbers also in Wellington,
Christchurch and Hamilton) increased as well. Northeast Asian
(China,
South Korea) and Southeast Asian (Vietnam,
Singapore, Thailand, Laos, Cambodia) immigration was only starting to take off at this time. It
would rapidly accelerate in the 1990s. New immigrant destinations for New
Zealand, such as Africa (including South Africa) and the Middle East had its
origins in the mid-eighties. Almost all of these new New Zealanders would
choose Auckland as their starting-off point for their new lives in this
country, however Islander immigration was by far the largest single source of new
arrivals in Auckland in 1984.
Although the new wave of cultural change commenced
around 1981-3, the year 1984 saw the grasping of the following idiomatic
features of the 1980s:
*Break
dancing
*”Ghetto
blasters”
*Street
kids
*Youth
unemployment
*Drugs
*Crime
Break dancing was a particular style of popular street dance,
which had its origins in the music of Michael Jackson and was also a synthesis of 1980s musical
style worldwide, particularly in the USA and other western countries, but was
adopted in New Zealand mostly by Maori and Pacific Islander youth. It started around
1983/3, but hit its fame in 1984/5; it was displayed in the 1984 film Footloose, starring Kevin Bacon. Some
cite the New Zealand phenomenon as having originating in American (Western)
Samoa.
Early hip hop releases around the mid-1980s in New Zealand include the
collection Ak89 - In Love With These Rhymes, compiled by Simon Laan and
released by Auckland radio station bFM in 1989 (on cassette only),
and a variety of releases by Deepgrooves,Voodoo Vinyl and Southside Records,
owned by Murray Cammick. Amongst these were releases by Urban Disturbance
featuring a young rapper, Zane Lowe, now a UK radio personality, and MC OJ &
Rhythm Slave.
After almost a decade of popularity, break dancing went out of fashion in the 1990s, but there was a revival; now
part of the hip-hop (rap) movement since the millennium.
“One reason break dancing became popular was that
many youth saw it as a way of being recognized or a channel of identity. Maori youth that had little chance of being
recognized for accomplishments in school or sport found break dancing as a new
way to achieve recognition. Early on, New Zealand even sponsored a national
break dancing competition for young Maori and Pacific Islanders. This helped many young
breakers to realize their potential by giving them a nation (sic) audience”.
(See Wikipedia, NZ Hip Hop, 2011).
“Ghetto-blasters” were a major feature of New
Zealand’s cultural movement around 1984. The Ghetto blaster, also known as the
jam box, wog box, radio-cassette was a device introduced in the late 1970s in
the Northern Hemisphere and arrived in New Zealand in the early eighties. It
became a household appliance in NZ by 1984, and was not only a means of
listening to music/audio-recordings from broadcast radio, but also via
audio-cassettes. It became intricately-entwined with NZ popular culture by 1984
in the form of young persons, indigenous and Pasifika groups of youth, general
youth, street/break-dancing and fundamentally an integral feature of 1980s
culture. The term
“Ghetto-blasters” may have been accurate in the US, Britain and parts of Western Europe, but in 1984 (and still today), New Zealand, even Auckland, has not been afflicted with ghettos, except possibly with the exception of Manakau and South Auckland and Porirua, north of Wellington. Even these areas are not ghettos in the American or European sense of the term.
“Ghetto-blasters” may have been accurate in the US, Britain and parts of Western Europe, but in 1984 (and still today), New Zealand, even Auckland, has not been afflicted with ghettos, except possibly with the exception of Manakau and South Auckland and Porirua, north of Wellington. Even these areas are not ghettos in the American or European sense of the term.
Street kids, youth unemployment,
drugs and alcohol abuse and crime, unfortunately
became a feature of New Zealand’s landscape by 1984. Not limited to the major
centres of Auckland, Wellington,
Christchurch, Dunedin and Hamilton, this social blight became a sad
aspect of all New Zealand cities, towns and minor centres. All of the these
societal difficulties did not begin in the mid-eighties, and were not limited
to New Zealand, but were the result of more than a decade of creeping unemployment, inflation,
cost-of-living pressures, social, economic and cultural change, also in large
part due to overseas influences. It would have been unusual, to say the least,
if New Zealand had not experienced such shifts. The five afore-mentioned
problems were intertwined and youth unemployment was often the root cause of
the other four. At the time unemployment of persons aged 18-25 was as high as
forty per cent in some areas, mostly regional or rural areas and some urban
settings such as Manukau in South Auckland and Porirua in Wellington. The problem of youth gangs was
taking off at this time and congregations of young people looking for trouble
in places like inner-city pedestrian malls and outside fast food restaurants.
Glue-sniffing was not such a problem in the major centres, but the latter were
fast becoming no-go areas because of public drunkenness by youth and illegal
drug use. Not only was this an issue within Maori and Pacific Islander youth, but also pakeha,
and violent crime was rapidly becoming a new problem for the authorities, one
which had been relatively restricted up until this time.
In 1984 the little-known Maori culture club, the Patea Maori Club, based in Auckland,
released an album named “Poi E”,
with sixteen tracks, the twelfth one being the song behind the album. Within
days of its release it hit the number one in the NZ pops, where it remained for
four consecutive weeks. It was that year’s biggest-selling single, even
eclipsing major international record labels. The music video involved
traditional poi twirling and tribal costume. It also showed scenes of
Auckland’s inner-city, youth and street kids. The whole album was sung entirely
in Maori and Poi E had a catchy harmony. It was
produced and led by Dalvanius Prime, who is known for merging traditional Maori song and more recent Maori-flavoured
hip-hop. Perhaps no other song, video or book is more evocative of New Zealand
culture in the 1980s, from the author’s point-of-view.
Conjointly with the increasingly Polynesian makeup of New Zealand culture, especially
youth culture, the street language/slang/idioms
started to alter. Samoan words started to be spoken by Maori and Pakeha youth, some derogatory, such as “FOB”, meaning
“Fresh Off the Boat”, but often in a jesting, humorous manner. Other Maori slang words came into being or became more
widely used. Another word that will forever be associated with the eighties in
New Zealand, and is still used today is “Choice!” meaning “Great/excellent”,
etc. Other words that were a mixture of Maori/pigeon
Maori/English
that gained prominent usage around the mid-eighties were:
Cuz- meaning cousin or friend/mate
Bro- meaning brother or friend/mate
Sweet as- meaning great/very good
Chur Bro- meaning sure Bro, recently shortened
further to Chur Bo
Green-fingered bro- meaning regular
marijuana/cannabis smoker
Halfpai- meaning to do a half-arsed job
OTP- On the Piss- meaning getting intoxicated
Et/ Eta/ Eta Harry- mostly used in Gisborne, meaning
getting on with the job
In late June 1984 Prime Minister Muldoon called a snap election for 14 July. It would be a nationwide vote to
decide the shape of the 41st Parliament,
and whether, given poor polling, the National Party should stay in power. The leader of the Labour Party and Opposition was a relatively young lawyer, highly
charismatic, personality-driven, and very confident and above all a great
debater with excellent vocabulary skills. His name “Lange”
was also a source of interest, as not many Kiwis knew the correct pronunciation
of the surname; whether it rhymed with “flange”, pronounced “Lang”, or
something else altogether. David Lange was so charismatic that even people who had
voted National all their lives were prepared to commit to the
other side of politics. One may argue that he embodied a new “presidential”
style of leadership, not in the sense of dictatorial, but more a new-age 1980s
broad-based, populist, consensus type of leadership, as would be seen more in
the United States than in formerly British nations. As a politician he also immersed himself with
the people by regularly leaving Parliament House or the Beehive to walk, shop or get lunch down in Lambton
Quay.
The election campaign, designed to be a short one by the
Prime Minister, got off to a
poor start. On the night of the announcement Muldoon, in a
reasonably intoxicated state, announced to TVNZ reporters and thousands of New Zealanders that
there will be a snap election on July 14. When suggested to him that it
doesn’t give him a lot of time to prepare, he responded in a drunken slur,
“It doesn’t give my opponents much time to run … up
…to an election”. (See YouTube video).
This gave rise to the unofficial nickname for the
’84 General Election of the “Schnapps Election”. Observers of
New Zealand politics and history have later said that the writing was on the
wall after this brief interview where Muldoon wasn’t at his best, but this was not
necessarily the case. Firstly the Nationals had governed by a very slim
majority anyway- forty-seven seats to Labour’s
forty-three for three years, and had therefore a precarious hold on power.
Secondly, the government had been increasingly seen as inflexible/rigid, not
listening to the electorate and its concerns. Thirdly price and wage freezes had been an abject failure and was partly
responsible for poor economic performance in the early eighties. Fourthly the
Think Big programme did not deliver the investment and
infrastructure that the government had promised. The original
purpose of calling a snap election was that National MP Marilyn Waring had told Muldoon that she wouldn’t support the Opposition’s
side when voting for Labour’s
anti-nuclear policy, which was a major part of Lange’s
1984 election manifesto. It never eventuated, but even if
that had been the case, and Waring’s statement was not absolute and binding,
meaning she may have changed her mind in the eleventh hour, this would not have
been a threat to block supply thereby creating a state of no-confidence in the
government. Put simply, the decision to go to the polls early was not valid;
however, that stated, it is still very likely that National would have lost the poll.
The short election campaign scored each side some points, but it
was Labour that came out in front. Their campaign was
more positive than negative, which is the opposite of what an Opposition normally undertakes. Labour campaigned to reduce government borrowing
which was immediately popular in the electorate. In addition to National’s
flagging performance and key economic failures over the previous three years,
there was a definite feeling in the air for a change in government. Three terms
and nine years is a long time, and the Government was appearing fatigued and
its policy framework was becoming hackneyed. The more youthful, highly
motivated and charismatic Lange easily won the campaign from a personality
perspective. The newly-formed New Zealand Party, led by Bob
Jones was launched to oppose the government,
although it was not formed to give Labour a win. It was hoped that it would win some
seats (which it did not), but its main purpose was to act as a spoiler. It may
be said that it was rather pointless as Labour won by a landslide anyway.
On Saturday 14 July 1984 the election was held, and it was apparent soon after polls closed at 6pm that there would be a change in government. Labour won fifty-six of the ninety-five seats in the parliament, giving which was a gain of thirteen, whilst National won thirty-seven. This gave Labour an absolute majority (forty-eight required to govern), and a lead of nineteen seats over National. It became the nation’s fourth Labour Government. Social Credit won two seats, the same as in 1981, and despite gaining 12.2 per cent of the vote, New Zealand Party failed to win any seats. Values Party came fifth but failed to win any seats. Most of the seats won by Labour were in urban areas, following the party's distinctive pattern. Exceptions to this general trend include the eastern tip of the North Island and the western coast of the South Island. Labour's strongest regions were the Wellington area (where the party won every seat), as well as Auckland, Christchurch and Dunedin (centres in which it won most seats). Smaller cities such as Hamilton, Nelson, Napier, Hastings and Palmerston North were also won by Labour. As expected, Labour also won all four Māori seats, maintaining its traditional strength there.
The National Party, the outgoing incumbent government, was (as expected) strongest in rural areas. Most of the rural North Island was won by National, as were a most of the rural areas on the South Island's eastern coast. In the larger cities, the party fared poorly, with Auckland and Christchurch being the only places that the party won seats. It was more successful in smaller cities, however, winning Rotorua, Tauranga, Invercargill, New Plymouth and Whangarei. It was placed second in two Māori electorates, and third in the other two. (See Wikipedia, 2011).
Almost
immediately after Muldoon’s defeat, he
was criticised for not following convention and devaluing the dollar (it was
eventually devalued before floating it subsequently). Roger Douglas became Lange’s
right-hand man, the Minister for Finance, and he was about to embark on an
economic rationalisation programme, the likes of New Zealand never seen before.
His massive deregulation of the economy came quickly to be known as
“Rogernomics”. Lange made himself Minister for Foreign Affairs,
Deputy Prime Minister was Geoffrey Palmer,
who also had the portfolio of Attorney-General, and of Justice, Defence
Minister was Frank O’Flynn, Housing was Phil Goff, also held the portfolio of
Employment, Health was Michael Bassett, also holding Local Government, Richard
Prebble held the portfolios of Railways and State-Owned Enterprises (SOEs),
Education was Russell Marshall and Minister for Maori Affairs was Koro Wetere. This was a carefully
handpicked team in the Cabinet that would prove to be a winner over the next
three years, and most would continue as ministers with the same or different
portfolios in the fifth Labour government of 1987-90.
Initially the now-caretaker Prime Minister, Muldoon refused to devalue the kiwi dollar, which was
against convention as the outgoing Prime Minister must follow the wishes of the
new national leader, and this was Lange’s
wish, but he about-faced and announced not only a twenty percent devaluation,
but also under Labour’s wishes, the
removal of controls on interest rates and a three-month wage freeze.
Roger Douglas was a third-generation MP, who had in 1980,
whilst in Opposition, released an
alternative budget which was at odds with both Labour and National policies. He was sacked from the Shadow
Cabinet.
Douglas was a Thatcherite and Reaganite in terms of monetarist and supply-side
economic orthodoxy, and was now in
a position to implement real fundamental change in the new government. Douglas
found strong support from Treasury, whose advice had been mostly ignored by
Muldoon. A 352-page
paper advocating a New Right economy was presented by Treasury to Douglas and
it was the origins of the Rogernomics revolution begun in 1984, and mostly complete
by 1987. A fairly middle-of-the-road welfare state, less so than Sweden or
Denmark, more along the lines of Britain or Australia,
there was no serious ideology or political/social agenda in the 1970s and early
1980s, but now Labour was proposing the commencement of a better
welfare state in confluence with a base of capitalist success.
One of the first changes was the removal of exchange
controls and the floating of the New Zealand dollar. There was also a
surtax imposed on super annuitants, thereby restricting the pension to only
those who needed it. Targeting low-income earners was the new Family Care
package and then the Guaranteed Minimum Family Income. This was the first
breach of the universal welfare system in New Zealand since its inception under
the 1930s Seddon administration. Perhaps the biggest and most
widely-remembered implementation under Rogernomics was the imposition of a broad-based
consumption tax in 1986. This was called the Goods and Services tax (GST),
and was not simply a new tax, but an entirely nouveau taxation system. The
Labour government, in 1984, floated the exchange
rate, deregulated banking and abolished exchange and price controls. These changes that New Zealanders
experienced were possibly more extensive, faster and closer to theoretical
purity than anywhere else on the globe. It dismantled trade barriers, removing
import licensing and farmers experienced the immediate removal of agricultural
subsidies. Inflation was targeted and the Reserve Bank was held responsible for
maintaining the rate at 0-2 per cent (which became a requirement under the
Reserve Bank Act 1989).
Public sector reforms under Lange and Douglas’ administration caused government
departments to become virtually unrecognisable. Service arms of government had
private enterprise values imposed on them, the number of departments doubled,
for example there were two defence departments: one to reflect on strategy and
one to fight! The Department of Labour and the State Services Commission came out of
it better as they managed to restructure themselves. Labour market reform was probably the only instance
where interest groups were consulted. The new State-Owned Enterprises (SOEs)
were made to perform identically to a business model and it was believed that
this would provide for more efficiency as well as better returns to the public
purse.
The reforms to government trading arms were the most
successful in terms of efficiency. The unions were however not so keen as
corporatisation quickly became privatisation;
government mortgages, Rural Bank, state forest rights reductions, Air New
Zealand and the railways were all sold. The entire previous
century’s creation of public infrastructure was simply put up for tender and sold. The
Think Big projects of the Muldoon years were also sold. The big winners were big
business and the biggest winners of all were the merchant banker brokers such
as Fletcher Challenge and others. This latter state-of-affairs mirrored similar
situations in the US and Britain in the 1980s.
Were New Zealanders ready for such far-reaching
reform in the mid-1980s? The scope and nature of the reforms were greater than
expected given that Labour and other social-democratic parties are not
generally known for emphasis on right-wing, capitalist, free-market polities,
or for that matter, new and wide-reaching taxes such as the GST.
In fact, for the first time in New Zealand, Labour and National were starting to converge, much as was the
case with the conservative Coalition in Australia and the Australian Labor Party. It has given
rise on both sides of the Tasman to the terms “Tweedledum and Tweedledee”, or
more viciously, “Tweedledum and Tweedledummer”. To answer the question, it was
not only Rogernomics legislation, including the “overnight”
implementation of GST, but Kiwis have experienced a number of major bills
brought in much faster than most other Western industrialised nations, and have
shown to be more resilient than their compatriots in Australia, Britain or Canada. For example, in the nid-2000s in
Australia smoking in pubs, bars and nightclubs was phased out gradually over a
five-year period, whilst in New Zealand it was an overnight event. The fact
that Labour, under Lange,
had a mandate for change, and it was indeed a public part of their 1984
campaign manifesto, did not necessarily give it a mandate for such radical change. However it was on the
whole received well, implemented successfully, and was even carried on by their
opposite side, National,
when they won back office in 1990!
Economic revolution was not however the only sea change
by Lange in 1984: it also extended to the
socio-political arena with the official legislation to ban nuclear-powered
ships from all New Zealand ports. This was enthusiastically supported by the
vast majority of the electorate and even gained bi-partisan support in the
Parliament and Beehive.
However one of the major ramifications of the policy was to put serious stress
on the 1951 ANZUS alliance, in particular with New Zealand’s
most-important trading partner and key ally, the United States. It did not
appear to damage relations with Australia,
although Bob Hawke and the ALP were careful to simultaneously maintain their
allegiance to the USA, whilst also maintaining friendly and official relations
with New Zealand. President Reagan was not in the business of making its allies
feel intimidated, but it was still a David versus Goliath battle. The US made
it plain that it was not happy about the little Antipodean country putting down
its feet and standing its ground, but Lange was steadfast and resolute. After all he had the whole of the
Parliamentary Labour Caucus, much of the Opposition and most of the electorate behind him. The
banning of the USS Buchanan was the first event in the security relationship
crisis between the two countries. It quickly moved from a diplomatic issue, to
one of a defence crisis, followed by the threat of the entire friendship, one
that had been built up since World War II. Eventually there was talk of
economic sanctions. On 4 February 1985 New Zealand officially disallowed the
entry into New Zealand waters of the giant US aircraft carrier, the USS
Buchanan. The banning of the USS Buchanan threatened to be much more than a
minor foreign relations hiccup and David Lange flew to Washington to meet with President
Reagan. The official US line was that the “United States would neither confirm
nor deny that it had nuclear capability”. Purpose of Lange’s
trip was to reassure the US administration that New Zealand remained fully
committed to the US as an ally, and that this should not place any negative
pressure on the state of the ANZUS alliance. Unfortunately for New Zealand the
US did not take it lightly and over time New Zealand was left out of joint
training exercises. America withdrew its security guarantees, New
Zealand’s status went from ally to “friendly country” and ANZUS became
effectively inoperative. Both Thatcher in Britain,
and Hawke, in Australia, expressed their disapproval at Labour’s
stance. There was a very real perception that the United States was bullying
its smaller ally and interfering in New Zealand’s sovereign right to form its
own internal and foreign policies.
Meanwhile in the South Pacific France was continuing to test nuclear weapons in such places as Tahiti and Mururoa.
If America was listening to New Zealand’s new policy,
then France had its head in the sand. It was now a majority of New Zealanders
in support of the policy, and it had bipartisan support. On the night of 10
July 1985, docked at Auckland Harbour the Greenpeace flagship, the Rainbow Warrior was bombed. One crew member lost their life,
official photographer, Fernando Perreira, who drowned after the explosion. This
was New Zealand’s first experience with terrorism and it was also plain murder
by another country in a sovereign country. It was found out that France had
ordered the attack under its foreign intelligence service, the Direction
Générale de la Sécurité Extérieure (DGSE), and was aiming to prevent the vessel from
protesting at a nuclear test on the tiny atoll of
Mururoa. It was quickly discovered that two agents of the French secret service
were responsible: Alain Mafart and Dominique Prieur. These agents
were arrested by the New Zealand Police on passport fraud and immigration charges. They were charged with arson,
conspiracy to commit arson, wilful damage, and murder. As part of a plea
bargain, they plead guilty to manslaughter and were sentenced to ten years in
prison, of which they served just over two. The only casualty on the French
side was the Foreign Minister, Charles Hernu, who had to resign. The fact that
these two murderers got extradition to a tropical South Pacific paradise to serve their time, and that it was
only for twenty-four months, still arouses anti-French emotion from many New
Zealanders today.
David Lange said later, “The Rainbow Warrior was the defining moment for me because I knew
that was the end of any New Zealand commitment to the so-called Western
Alliance.
It was not when it was sunk that I knew. It was when we knew who’d sunk it that
I knew. And then the overwhelming silence from Great Britain…Margaret
Thatcher was prepared to condemn Gaffafi for everything, but the French could
go and kill people in our harbour. Hawke never said a word. Ronald Reagan
pretended total indifference. We never had a peep out of those people that we
were allegedly in a Western Alliance with; those people who fought for
democracy.” (See Smith & Callan, 1999).
The Oxford Union debate in England,
televised on TVNZ Channel Two on Saturday 2 March 1985 was
perhaps the single most defining moment of his five-year prime-ministership,
and was the point when he represented his government and his country on the
world scene in the most memorable environment. “Nuclear weapons are morally
indefensible” was the argument, and the players were the Right Honourable David
Lange for the affirmative, and the Reverend Jerry
Falwell, leader of the
American Moral Majority, for the negative. The live coverage was estimated to
have reached a television audience in excess of fifty million, and was
presented by John Laurence for the American bureau programme, with special
comment by Peter Jay, former British ambassador to Washington and
past-president of the Oxford Union. Lange’s
massive vocabulary, oratory skills and debating experience, which won him the
prime ministership of New Zealand wowed, intimidated and silenced the opposite
side; it also created a new-found respect for Lange back home, as well as in Britain and overseas viewers. One of the defining
moments of the debate was when he received a standing ovation, with Falwell
shaking his head and rubbing his forehead in defeat. Whilst the televangelist
Falwell was famous for convincing people and making them “see the light”, Lange was the clear-cut winner of the debate,
convincing the viewing public that not only were nuclear weapons morally indefensible, but that they
were “evil and reprehensible”. The debate was not simply a public spin lesson
early in his term, but was a delimitating moment of his first and second terms;
his entire prime-ministership.
On 7 December 1984 a riot occurred in Queen St,
Auckland.
It occurred as the open-air concert by DD Smash was finishing, on Aotea Square,
and caused almost $1 million in damages (equivalent to about $11m in today’s
figures). A hastily-convened judicial committee decided that the cause was easy
access to liquor and poor planning by the Auckland City Council. Others were
not so sure, and surmised that it was a combination of factors such as
steadily-rising youth unemployment,
lack of family and society values, the “mob mentality”, general permissiveness,
the type of team policing that today may be considered provocative, and alcohol
of course. Although many Maori and Polynesian youth were present in the melee, there were
also white persons, and the latter were also responsible for the riot. However,
these were the days before CCTV and although there were persons of interest to
the police, no one was arrested or charged, although those present would have
known who these persons were.
1985 saw the Treaty of Waitangi Act 1975 amended to include claims dating back
to 1840. It was the first amendment since the original act was passed, and was
to be followed by four more amendments; two in 1988, one in 1993 and one in
2006. In addition to enabling the Tribunal to investigate claims from 1840, it
also enlarged the Tribunal’s membership, enabling it to handle the larger
number of claims. It created a requirement that the Tribunal have a Maori majority. The amendment widened the scope of
the Tribunal’s enquiries and resulted in an ongoing debate over the correct
response by the Crown to the findings and recommendations of the Tribunal. It
was a component of the fourth Labour government’s policy of allowing greater acknowledgment
of the Waitangi Treaty; references to the Treaty were included in other key
legislation, for example in the State-Owned Enterprises Act. The second 1988
amendment was solely directed at the SOEs Act. The 1985 amendment was one of the most
important changes to the Act in attaining relevance in the Treaty in New
Zealand law and society.
On the 22 November 1985 Paul Reeves (later Sir) became the fifteenth
Governor-General (G-G) of New Zealand. He was the first
indigenous vice-regal representative. He would remain as G-G for five years,
until November 1990. Immediately upon appointment there was scepticism due to
the facts that he had had previous political involvement, supporting the
Rowling Labour Government, his political involvement in
opposing the Springboks Tour in 1981, and also the fact that he was an
ordained Anglican bishop. Opposition Leader Jim McLay was one of those vocally
opposing the appointment. However the Maori community was overjoyed that finally one of
their own held such high office, and Sir James Henare argued that it was a
direct result of the Treaty of Waitangi, although this
seems tenuous at best. One of Reeves’ acts was to join the Newtown Residents’
Association (Wellington),
and to invite members of that association to visit Government House. He was the
first G-G to host an “open day” at the House, and the first to employ a public
affairs officer.
Reeves’ tenure was not without controversy however.
In November 1987 he made comments critical of Roger Douglas’
Rogernomics, stating the
reforms were creating “an increasingly stratified society”. (See Maclean,
2006). After being rebuked by Lange,
six months later he stated that “…the spirit of the market steals life from the
vulnerable but the spirit of God gives life to all”. (See Maclean, 2006). He
also later recalled that many times he felt alone, and would write to the
Queen, but often would receive no reply, or just a reply from her private
secretary. On a state visit to Vanuatu in 1989 Reeves was invited to slaughter
a pig at an official ceremony, creating another controversy, as he was patron
of the SPCA.
In 1986 the Constitution Act finally ended the right of Britain to pass laws for New Zealand, and the Privy
Council was abolished. The High Court became the
highest court in the land. This, to most New Zealanders and the Labour Government, was a welcome and timely
development of the 1980s. However there were some traditionalists, monarchists,
staunch conservatives and the National Party,
as a whole, that did not feel so pleased. Jim McLeay knew he was outnumbered
though, and accepted the majority view of the public.
Privatisation/SOEs:
This was one of Rogernomics’
major programmes for 1984-7 government, and totally transformed both New
Zealand’s economy and society. It transformed the economy as it turned government
departments and public corporations into quasi-private enterprise, and
profit-driven, and it transformed society as it made a basically
government/public state into a private/profit-driven free-for-all. Some would
applaud the new New Zealand, whilst others would claim that the country had
been given to major business, corporate interests, and even private, family-run
firms. The reality was somewhere in the middle.
The GST was finally passed as law and implemented in
August 1986. It was based mostly on Value-Added tax (VAT) in the UK, and was
initially set at ten per cent (later raised to 12.5 in 1988, and then to
fifteen). Marginal tax rates were flattened, and the GST involved the removal
of a number of other taxes such as payroll tax, and a massive reduction in
personal income tax from a previous high for the highest tax bracket of
sixty-six percent to thirty-three percent. It was also lowered for all income
brackets. Although GST didn’t deliver all the benefits promised, such as a general
improvement in standard of living for all New Zealanders, and a slowdown in
inflation over the next decade or two, it was nevertheless seen as a success,
and was not wound down or reversed by the new Bolger government in 1990. It was also copied by
Australian Prime Minister John Howard in 2000. Rather than being brought
in after winning government, the Australian experience was different in that
the incumbent government went to the voters with the proposal before the
election.
It failed to win voter support in that country in 1993, but succeeded in 1998.
1986 saw the passing of the Homosexual Law Reform Act. It was a contentious issue
even by the mid-1980s, but had been on the agenda for the Labour Party ever since it was defeated by Muldoon in 1984. Unlike Muldoon, Lange supported it as did most of the Labour Party, and it was therefore going to pass in
parliament. The Bill was also presented as a conscience vote and therefore it
was voted in by members of the National Opposition also. The Act is a law that legalised
consensual sex between men aged sixteen and older. It removed the provisions of
the Crime Act 1961 that criminalised this lifestyle choice. From 1840 when New
Zealand became part of the British Empire, penalties for homosexual sex were harsh, reflecting British law, but
there was a softening of the punishments in 1961, reflecting a new era of
social attitudes. This was furthered by a 1968 petition signed by seventy-five
prominent citizens calling for legislative change, but was rejected by the
Holyoake government. First attempts at law reform in 1974, and later in 1979
and 1980 failed, but in 1985 government MP Fran Wilde introduced the Homosexual
Law Reform Act. The original bill was comprised of two sections: firstly the
decriminalisation of male homosexuality; second part was a provision of
anti-discrimination law protections for gay men and lesbians. The first part
passed narrowly – 49 to 44 – on 9 July 1986, and even though the second part
failed that part was incorporated into the New Zealand Human Rights Act 1993.
The new Act was a focus of fierce debate from far right sections of the
community, such as a group of fundamentalist Christian political activists
including Norman Jones, National for Invercargill, Keith Hay and Peter Tait.
Another group which threatened to finish the Labour Government in 1987 was the Coalition of
Concerned Citizens. (The government was returned with near-exact numbers in the
House to those of 1984).
The Homosexual Law Reform Act of 1986 was doubtlessly only
the beginning of a more equal, less discriminatory, all-inclusive New Zealand.
By the 1990s New Zealand would have several openly-gay MPs and by the
twenty-first century it would have a system of civil union for gay or lesbian
couples. It has been ahead of Australia and most of the United States in this social
hemisphere.
The Act was also passed in a challenging time for
New Zealand, as well as the world. Antibody Immuno Deficiency Virus (AIDS)
was only just becoming part of the human awareness in New Zealand and even
though a part of US society since at least the late seventies, it was still
mostly an unknown subject. However by this time the number of deaths in the US,
Britain and Europe had skyrocketed since it was first discovered
about ten years earlier. It was now a major blight and a huge worry for New
Zealanders. High-profile deaths such as Hollywood actor Rock Hudson had brought
the new disease into people’s homes worldwide via their television set, as he rapidly deteriorated and died the
year before. AIDS had originally been known in the 1970s as GRID- Gay-Related
Immuno Deficiency- as when it was discovered in the US it was believed to be
caused only by unprotected homosexual sex. This was now known to not be the case- in
fact by the 1990s it was being spread mostly by the heterosexual world
community, and especially in Africa.
Another thing killing people overseas and in New
Zealand at this time was Legionnaire’s Disease. This was a
disease which turned out to be caused by bacteria multiplying in the water
towers of building air-conditioners. Also known as Legionellosis, it acquired
its name when in July 1976 there was an outbreak of pneumonia amongst people
attending a convention of the American Legion at a large hotel in Philadelphia.
The cause of the outbreak was discovered six months later. In New Zealand, 1986
was the year it first appeared.
Potential sources of such contaminated water include
cooling towers (some forty to sixty per cent of one’s tested) used in
industrial cooling water systems as well as in large central air conditioning
systems, evaporative coolers, nebulizers, humidifiers, whirlpools, hot water
systems, showers, windshield washers, whirlpool spas, architectural fountains,
room-air humidifiers, ice making machines, misting equipment, and similar
disseminators that draw upon a public water supply. The disease was tackled
effectively over the next few years.
A Royal Commission into possible changes in the electoral system was held in this year. In particular it
examined the possibility of a European-style addition to the New Zealand electoral system called “Multi-Member
Proportional Representation”, or MMP.
This was a variation on the voting system used in Australia and America for Senates, or on the state level, upper
houses of parliament/Congress. The proposal was not that New Zealand should
ditch the first-past-the-post simple majority system of voting, but rather that a more
representative, fairer system be layered on top of the former. For example, in
New Zealand, small parties had no chance in winning seats, as it was a
winner-take-all system, and a minor party could never hope to achieve an
absolute majority of votes in one particular electorate. Take for example the
case of Bob Jones’ New Zealand
party in 1984 which won 12.4 per cent of the vote, and the Values Party winning
a substantial number of votes. If Jones’ party had won all the votes in a
single seat, or even two seats, it would have been represented in parliament,
but because of simple majority that wasn’t possible. The 1986 Royal Commission
was a result of pressures from such smaller parties to the electoral
commission, and would lead to positive change at the end of the century, also
under a Labour government. It also, more importantly perhaps,
would halt the case of a major party losing to the other one even with a
greater percentage of the vote, as happened time and time again in the second
half of the century.
One of the biggest news stories in 1986 was the
maritime disaster in the Marlborough Sounds, of the cruise
ship, the Mikhail Lermontov. It occurred on
16 February at Port Gore, which is directly across the Cook Strait from Wellington,
and involved one loss-of-life and eleven casualties. The vessel was the Soviet
Union’s prestige
cruise liner and could accommodate five-hundred and fifty passengers in
comfort. It was a regular liner in New Zealand waters and had been refitted
four years prior to the sinking. The particular cruise on the day was part of a
summer cruise season, of which a number were eleven-day sailings. On 16
February the vessel left Picton at 3:10pm, carrying seven-hundred and forty
passengers and crew. On board the vessel was Marlborough harbourmaster Don
Jamieson, who was left in charge by the captain, who had gone to his cabin. The
vessel sailed up Queen Charlotte Sound towards the Cook Strait. As it neared
Cape Jackson Jamieson altered the heading to bring it closer to the Cape. This
course correction was queried by the navigator as he believed it was a
dangerous move, but Jamieson had already made the decision to drive the ship
between Cape Jackson and its outlying lighthouse – a 460-metre-wide passage.
The captain was not notified. At approximately 5:20pm the Lermontov, travelling
at a speed of fifteen knots (twenty-seven km/hr), grounded against rocks on the
starboard side, suffering major damage to its hull. The ship remained in
motion, but started taking on water, and then rolling over. Captain now made
his way back to the bridge and attempted to head towards Port Gore where the
gigantic ship could be beached on shore, as opposed to sinking in open waters.
An hour later the situation was dire with all onboard power lost, and drifting
on and off a sandbank. As the tide rose it lifted the Lermontov completely off
the sandbank and she sank in deep waters at approximately 10:50pm. As with the
Wahine eighteen years earlier, rescue ships arrived
soon after, however due to rain the rescue was almost unmanageable. All the
passengers and crew were accounted for and taken off the stricken vessel except
a Russian engineer who was believed to have drowned when the ship initially hit
the rocks. His body was not recovered. He was the only fatality and there were
a further eleven casualties, all with minor injuries. The preliminary enquiry
determined that harbourmaster Jamison was operating outside the limits of his
piloting area; however he told investigators that he was very familiar with
Marlborough Harbour. When questioned why he piloted the vessel through a narrow
and too-shallow passage, he could not give a solid answer, only to state that
he was suffering from mental and physical exhaustion after working eighty-hour
weeks for the previous four months. Minister of Transport Richard Prebble chose
not to hold a formal inquiry. Jamison refused to speak in public about the
sinking but surrendered his pilot’s licence. Back in the Soviet Union they held
their own inquiry and the captain was given a suspended four-year gaol
sentence. The Marlborough Harbour Board and the owners of the Mikhail Lermontov
reached an out-of-court settlement. Although not salvageable, the wreck’s oil
was removed from her tanks over the next two months, and since 1986 three
people have died whilst diving on the wreck.
Other events to occur in the year 1986 in New
Zealand were:
The official end of the “White New Zealand”
immigration policy: although there had been at least forty
years of immigration from continental Europe,
Fiji,
Polynesia, and in the eighties Asia, the Middle East and parts of Africa, it
was officially ended by parliamentary legislation in 1986.
The first visit to New Zealand by the Pope
The music of Dave Dobbyn,
which will be fondly remembered by New Zealanders as a fundamental part of
home-grown 1980s-era Kiwi music. His biggest hit was Footrot Flats,
and it was turned into a major feature film: Footrot Flats: the Dog’s Tale. Dobbyn performed at Auckland’s
Aotea Square in 1986, and was a sell-out success.
In the Soviet Union the world’s biggest nuclear accident occurred, where a power station went
into meltdown. It was located at Chernobyl,
in northwest Russia, and resulted in thousands of deaths in the town, followed
by many more deaths throughout Russia, Eastern Europe,
and Western Europe in the years following, due to radiation exposure.
1987 saw the single largest emigration numbers to date, and most were to Australia.
The number of singles, couples and families leaving the shores permanently had
been climbing rapidly every year since the late 1970s, and was notable by the
early eighties. It was becoming a concern for the government, as it amounted to
a serious financial drain, as well as a brain drain. It also wasn’t good for
the nation’s pride. Muldoon once joked that every Kiwi moving to Australia
increased the IQ of both countries, but it deserved serious analysis. One
source states that currently (2011) there are about one million (close to one-fifth)
of New Zealanders living in other countries, about one-half of whom are in
Australia. (See Byrnes, p.318).
At about this time there was a challenge by the
Maori Council in the Court of Appeal, which was
successful. It marked a breakthrough in the indigenous struggle to regain some
control of resources. The appeal was to halt crown lands being transferred to
the newly-created SOEs when the ownership was under dispute and
claims were before the Waitangi Tribunal. The court
ruled that
“the principles of the Treaty of Waitangi override everything else in the State Owned
Enterprises Act… [and that] those principles require that Pakeha and Maori treaty partners [are] to act towards each
other reasonably and with the utmost good faith”. (See Smith & Callan,
1999, p. 255).
There was also an alike claim to protect fishing
rights, filed by the Muriwhenua of the Far North and the Maori Council, which brought a temporary stop the
issue of fishing quota under the new Quota Management System until Maori rights to the fisheries were resolved. The 1989 Maori Fisheries Act returned ten per cent of the
fisheries and founded a Maori Fisheries Commission with a grant of $10
million.
In 1987 the Maori language - Te Taura Whiri i Te Reo Māori -
became the second official language, with full equality to English. This was as
a result of the Maori Language Act 1987 passed with substantial
bipartisan support. The early agitation for making Maori a key part of New Zealand culture and identity
may be traced back to 1961 when the Hunn Report described the Maori language as a relic of ancient Maori life. In the early 1970s concerns for the
Maori language were expressed by Maori urban groups including Nga Tamatoa and Te Reo Maori society. In 1972 a Maori Language Petition was signed by 30,000
signatories and sent to Parliament.
By 1973 a NZCER national survey indicated that only approximately 70,000 Maori,
or 18-20 percent of Maori were fluent Maori speakers, and that most are elderly. In 1975
Ngati Raukawa, Ngati Toa and Te Ati Awa originated a tribal development
exercise which emphasised Maori language development. The Ruatoki School
became the first bilingual school in New Zealand in 1978. Between 1979 and 1980
the Te Ataarangi movement was established in an effort to restore Maori language knowledge to Maori adults, and in 1981 Te Wananga o Raukawa was
established in Otaki. The now well-known Te Kohanga Reo was established in 1982 in primary schools,
and throughout the 1980s experiments in Maori radio broadcasting led to the establishment of
Te Upoko o te Ika and Radio Ngati Porou. 1985 saw the first Kura kaupapa Maori for Maori children and the Te Reo Maori claim WAI 11 brought before the Waitangi
Tribunal. By now the
number of Maori speakers had dropped to only about 50,000, or
about twelve percent of the Maori population. Recommendation
that legislation be enacted to enable Maori language to be used in legal proceedings
occurred in 1986, and that a supervising body be set up. After the 1987 Maori Language Act was passed, it was not long
before Maori language speakers began increasing, official
government documents, signage, ministry titles and descriptions started
containing both English and Maori,
and from the late 1990s Web Sites of government departments, official
government organisations, as well as local government city and regional
councils. It is a long step to restoration of the language as it was at the
time of the early European settlement, but with the official status in place,
it can only be a matter of time.
Kiwis have always been keen gamblers, and in 1907
the first government lottery ticket- the Golden Kiwi- was introduced. Eighty
years later saw the introduction of Lotto,
and the year after that Instant Lottery tickets, or “scratchies”. Lotto has
since become more complex, with Strike, Powerball and Keno, but 1987 was the
year that modern day national lotteries really started. The NZ Lotteries
Commission was established on 1 June 1987 and the first tickets went on sale on
22 July. The draw was on 1 August and carried a top prize of $100,000. First
prize is now $1 million, but often jackpots to several millions. Lotto NZ paid
out NZ$64.5 million in prizes for the Lotto games in 1987/8 - its first full
year of operation. By the year 2007/8, this figure had risen to NZ$274.15
million in prize payouts. To date, more than NZ$3.75 billion has been paid out
to lucky lottery winners of the NZ Lotto since it began back in 1987. There
have been at least three-hundred and seventy people who have won NZ$1 million
or more on the NZ Lotto since its inception.
Rogernomics extended to changes in farmers’ lives in 1987. From this year onwards they had
to pay for Ministry of Agriculture and Fisheries’ (MAF’s)
advisory services. This was all part of the new economic landscape: “a level
playing field”, “efficiency and accountability” and the “funder/provider
split”. The user-pays theme was almost a flashback to Muldoonism. Farmers’
Federation was very vocal in its hostility for the new scheme and the Lange/Douglas
administration. The year earlier they had gathered at Palmerston North, called
by the Rangitikei and Manawatu branches, and attendance was approximately
one-thousand. Roger Douglas was present, and he told the farmers what he
was trying to accomplish as Finance Minister and agreed that the increase and
exchange rate increases were hurting, just as drawbacks on government spending
were also doing. He recalls what he said years later:
“We are taking a hell of a lot of political pain to
do that. And you’ve got to believe we mean it, and you have to respond by
adjusting your own actions. So does the rest of the community…Your council has
shown it knows that if we go back to subsidies, the industry will be wrecked
permanently. This country can’t afford that. If agriculture goes under, we all
go under. We will continue to look for ways to help, but they must be ways
which do not damage your industry forever.” (See Smith & Callan, 1999, p.
241).
Some other significant events of 1987 were:
New Zealand’s first heart transplant
The nation declared legally nuclear-free:
a permanent state-of-affairs
1987 Rugby World Cup victory against France
The Edgecumbe Earthquake:
This occurred in the small Bay of Plenty town of
Edgecumbe, at 1:42 pm on
2 March 1987, measuring 6.3 on the Richter scale. Moment magnitude was 6.5
megawatts, depth eight kilometres, and there were no fatalities, but
twenty-five injured. Even though it was
shallow, the quake was one of the most damaging New Zealand has experienced in
recent times, with about half of the houses in the town being damaged. There
was also damage to a local milk processor, where storage tanks fell over. The
nearby forestry town of Kawerau was damaged and the second-largest town in the
region, Whakatane was badly shaken. A NZ Railways eighty-tonne locomotive was
tipped over. There was a foreshock prior to the event and a large aftershock
measuring 5.2 ten minutes after the quake. Even though the Edgecumbe Earthquake
officially lists no fatalities, there was a heart-attack victim who died at the
time of the tremors, and it is likely that it was caused by shock.
The 1980s was a time of unrelenting,
never-before-experienced economic growth and prosperity, due to the new
economy, freedom in the economy from Rogernomics and a general world financial and economic
boom. Some of this economic prosperity came from the markets of America and Europe,
in particular the astronomic rise of the stock markets in Wall Street, London,
Europe, Hong Kong, Tokyo, and also in Sydney and Wellington.
The physical appearances, i.e. skylines of Auckland CBD in particular, and also Wellington, were
altering faster than people could keep up with. By 1987, at the height of the
building boom in New Zealand, cranes dotted the CBDs and glass and steel
skyscrapers seemed to appear everywhere. Beautiful old buildings fell to the
demolition ball, whilst glassy, mirrored, mediocre (?) towers rose in their
place. There was plenty of money for building, industry and there was a feeling
that New Zealand was entering its latest golden age. However this was unreal,
as it was built on the bullish share markets in Wellington and overseas, built
on financial speculation, overconfidence, etc. “Greed [was] piled on ambition
and heaped on ego.” (See Smith & Callan, 1999, p. 244).
On Tuesday 20 October 1987 all this was about to
change. Black Tuesday, as it was to be known, saw share prices plummet by up to
sixty percent, and it started on Wall Street, and flowed on worldwide. When the
markets opened in New Zealand, the latest “South Seas bubble” had burst. This
was the largest crash since the 1929 event, which had at the time triggered the
Great Depression. The world and New Zealand was about to experience a similar
massive recession. Over the
following two months, to Christmas 1987 $23 billion was wiped off the stock
market boards, equating to almost fifty percent of
the market. The supremely wealthy, ordinary investors, major companies and
small business all fell with the stock market.
By the end of 1989 the New Zealand market had still not recovered to the extent
that overseas markets had. This was to be a costly and memorable lesson for New
Zealand. Many commentators have observed that “the New Zealand share market
rose higher, fell further and stayed down longer than those in comparable
countries. New Zealand share-trading volumes boomed one-hundred percent in the
year preceding Black Tuesday. In Australia,
Britain and the United States the figure was between
twenty and thirty percent.” (See Belich, 2001, p.407). Whether justified or
not, the crash led to a loss of confidence in the government, and was to prove
irreparable in 1990. Rogernomics reforms continued unabated in the debris of
the crash, although it was now under the command of Lange,
as he had developed hesitations about the latest new round of reforms. The boom
and bust ventured into the lives of many, not just the market speculators. The
boom was a mass movement, similarly the bust was also. Major players who lost
big time included Allan Hawkins of Equiticorp,
who was bankrupted and imprisoned. He “crashed to earth, to a chorus of satisfaction
from those who had previously worshipped [him]”. (See Belich, 2001, p. 406).
The re-election of Labour on 15 August 1987 saw a plus-five-percent
swing in support and a minor gain of two seats, from fifty-five to fifty-seven.
It won forty-eight percent of the popular vote. National,
under its new leader, Jim Bolger, also saw a
swing of plus-eight-percent, and a rise of two seats, from thirty-eight to
forty. It commanded forty-four percent of the vote. This was due to none of the
minor parties winning any seats. Also there was fallout in voter turnout to
89.1 percent, or over 70,000. As in 1984 Labour secured most of the seats in the four major
centres, as well as most of the West Coast of the South Island.
National performed well in most of the rural and
regional areas. Although not an increased mandate, it was more than enough of a
mandate for government legitimacy and appeared not to have been harmed by the
massive changes brought about by Rogernomics or the sharemarket demise. However even though
the incumbent government emerged from the election with a seventeen-seat lead over the Opposition,
the real discrepancy between each party’s count was significantly less. Labour had won a five percent swing increase from
1984, but National had secured a huge 8.5 percent increase (35.5
percent to 44 percent). This meant that even though Labour had retained its lead, the gap had closed by a
bigger amount than the basic seat count indicated. This gap would widen over
the next three years, due to general voter backlash and dissatisfaction, and
the direction and leadership of the Party would gradually but surely fall
apart.
1988 was a year where the nation was still
commiserating over the events of late 1987, but had not yet truly entered the
serious recession. It was in a
kind of limbo, and the boom was only slowly collapsing. By February
unemployment had hit the 100,000 mark, but this was nothing
compared to what it would later rise to in the early years of the nineties. It
was very bad for Pakeha,
but much worse for Maori,
where since 1986 and the end of 1988 the general Maori unemployment rate jumped to close on twenty
percent. “In effect, about one-fifth of the Maori working age population lost their jobs in the two years from March
1987 to March 1989.” (See Belich, 2001, p.474). In proportionate terms Maori unemployment was roughly quadruple the Pakeha
rate, and these figures may be understated due to those who gave up hope and no
longer registered for work. By 1991 in some Maori areas the numbers who were “unavailable for
work” reached almost half!
On 30 March the State Sector Act was passed to reform the Public Service. The State Sector Act 1988 defines what
constitutes the State sector organisations in New Zealand. Along with
accompanying reforms, it substantially reshaped the Public service, and to some
extent its culture. It granted Ministers some role in the appointments of
departmental chief executives. This was a part of the later Labour cabinet, persuaded by Douglas, to set in
motion reform of the Public Service, a transformation of some departments into
SOEs and sale of other departments. Old Labour,
before 1984, had worked towards big government, whereas new Labour conversely sought to devolve or sell as much
of its inherited business as possible.
January 1988 may be marked as the start of the Lange-Douglas
split, which commenced when Lange cancelled a previously-announced economic and
tax package after returning from overseas. From the prime minister’s statement
in 1984 that “the government will either stand or fall with Roger Douglas”,
their extraordinarily close relationship had gradually fallen apart. Even
though the stock market crash had seriously damaged the New Zealand
economy, Douglas still wanted to persevere with economic reforms. In December he recommended further asset
sales, the liberalisation of the labour market, further remodelling of the
public sector, further reduction of tariffs, the introduction of a Guaranteed
Minimum Family Income (GMFI), and radical tax reforms involving a flat income
tax rate of twenty-three per cent and an increase in the goods and services tax
(GST)
to 12.5 per cent. The tax reforms and GMFI were approved by Cabinet,
and on 17 December Lange,
Douglas and other senior cabinet ministers proclaimed this package at a press
conference. Possibly due to a reflection over Christmas and New Year whether it
was a wise move, Lange cancelled the flat tax in January. From this
moment on the relationship between the two top men gradually moved downhill,
and it flowed on to their supporters in the cabinet and caucus. First Richard
Prebble was dismissed and then Douglas left cabinet at the end of 1988. He
remained in the party as a backbencher, where he may have been the main
architect behind a vote of no-confidence in the prime minister six months
later. Lange narrowly won this vote, but against his wishes
caucus re-elected Douglas to cabinet in August 1989. This was the final straw
for the prime minister who resigned on 8 August 1989.
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