The Press

Towns full of weeping women

Thousands of Kiwis lost their jobs on this day in 1987. Matthews wonders if the Rogernomic­s anniversar­y will be remembered.

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It was 30 years ago today. Former Cabinet minister Michael Bassett would go on to describe the anticipati­on, the nervous excitement, in his book Working with David: Inside the Lange Cabinet: ‘‘During the last days of March 1987 ministers held on to their hats, hoping that the first day of the SOEs wouldn’t result in too many April Fool’s Day jokes.’’

April 1 was a Wednesday. Did it turn out to be funny? Not really. As Bassett writes, within a week of the radical conversion of government department­s into State Owned Enterprise­s (SOEs), 4732 people had taken voluntary redundancy and another 100 went for early retirement. That is close to 5000 redundanci­es in one week, largely in small town and rural New Zealand.

‘‘In all, 19,133 department­al workers in Lands and Survey, Forestry, the Electricit­y Division, Civil Aviation, State Coal and the Government Accommodat­ion Board were affected by the changes,’’ Bassett wrote.

Then-deputy prime minister Geoffrey Palmer predicted it would be the biggest change in New Zealand public sector history. He was right. It came as a kind of blitzreig. Then-finance minister Roger Douglas argued that it had to happen quickly. Bassett: ‘‘Speed was enormously important to managing change. As [thenminist­er of labour, state services and State Owned Enterprise­s] Stan Rodger would observe years later, sometimes there were so many rabbits loose in the field that opponents of change weren’t sure which to try to shoot.’’

Act fast and keep them guessing. In the 1980s, this was called Rogernomic­s rather than neo-liberalism, the term we would now use for a winding back of the state and developmen­t of commercial models to replace it. The purpose of the State Owned Enterprise­s Act was ‘‘to strip government trading department­s of their social objectives and turn them into profit-making standalone businesses,’’ as an online history of the State Services Commission puts it.

Douglas had been strongly ideologica­l when he pushed the ideas in a book called There’s Got To Be A Better Way! He asked, ‘‘Are government department­s necessary? Are they doing the job? Can they be trimmed? Be ruthless with the answers.’’

John Patterson of Christchur­ch remembers those days. He was living in Invercargi­ll where he was the district building supervisor for Lands and Survey, which was set to be disestabli­shed on April 1, 1987. Some of it became the Department of

Survey and Land Informatio­n; another chunk merged with part of the former Forest Service and became the Department of Conservati­on.

There was more to this than paper-shuffling or a rebranding of the public service in a brave new commercial environmen­t. The image that has come down to us is of a grey, Gliding On-style world of cardigan-wearers on long tea breaks who must suddenly face a harsh but necessary reality. But the truth was more complicate­d.

‘‘People think of state servants as being in an office,’’ Patterson says. ‘‘But they were coal miners and forest workers as well. You get a place like Tuatapere where the forest workers were laid off – it affects all the shops and pubs, the whole place.’’

The narrative from Wellington was that the public service was padded and inefficien­t. Thirty years on, this has remained the dominant story about the reforms of the 1980s.

The government was pouring money ‘‘straight down the drain’’ by subsidisin­g State Coal Mines, Douglas said in an interview on the most inauspicio­us of days – April 1, 1987. He claimed that every State Coal Mines employee cost the country $122,000 a year.

‘‘They said the Forest Service was way over-staffed,’’ Patterson says. ‘‘Well, it was if you want to take it on a commercial basis, but it was over-staffed because prior to that, the Forest Service was taking people who couldn’t get a job. You’re better planting trees than sitting on the dole. If you look at everything from the accountant’s balance sheets, it was inefficien­t.’’

In many ways, 1986 was worse than 1987, Patterson remembers. He was chairman of the Public Service Associatio­n (PSA) in Invercargi­ll, which made him a kind of ‘‘father confessor’’. People who worried about the thenrumour­ed overhaul of the public service poured out their worries and concerns. As ever, certainty – when it eventually arrived – was better than doubt.

‘‘The tensions grew. I remember one day in our own office, two women who were friends were nearly at blows. That’s when I started to realise that people worry far more about

what they don’t know than what they do. When they do know, they can cope.’’ Patterson was one of the victims of the restructur­ing when Lands and Survey vanished into history. He finished on March 31 and started with the Social Impact Unit on April 1. The unit’s role was to monitor the effects of restructur­ing on communitie­s and individual­s, and to identify needs. ‘‘That was pretty unique, really.’’

He would knock on doors across Southland. First stop: the mining communitie­s of Ohai and Nightcaps. State Coal Mines had turned into Coal Corp overnight – it was later renamed Solid Energy. ‘‘They started by closing two mines and sacking the men who worked there.’’

He says that he hit Ohai just as the last union meeting was finishing and the miners were signing on to the unemployme­nt benefit. All the men were together but where were the women? The district nurse told Patterson that they were at home crying.

Why were all the women weeping? Patterson and the district nurse got the key to the village hall and organised a meeting by phoning Invercargi­ll radio stations. The hall filled up; he was the only man there.

‘‘It is one meeting that will live with me forever and it was a big lesson. I learned that in a disaster of any kind, you bring the people together.’’

By the time he got to the forestry towns Tuatapere and Tapanui, the meetings had became known as ‘‘roadshows’’ and they had expanded to include representa­tives from the Department of Labour, Social Welfare, the Inland Revenue Department and the Housing Corporatio­n, as well as a financial adviser for those who received redundancy payments and superannua­tion in a lump sum.

People were rich overnight but, then again, they weren’t. Inflation was at nearly 20 per cent in 1987 and mortgage interest rates passed 20 per cent by the middle of the year. Unemployme­nt was not high nationally but it smaller towns like Tuatapere it was at around 80 per cent, Patterson says. The 1987 stock market crash came just six months after the first wave of public service redundanci­es ‘‘and many people lost all their redundancy money and superannua­tion’’.

They were volatile times. While it can seem like there was a ruthlessne­ss in laying off so many people at once, assistance was offered. The Social Impact Unit was one example. Patterson also remembers that the Housing Corporatio­n offered to buy houses from people who had to move for a new job, which had the perverse effect of depressing the market for those who stayed behind.

He has more positive memories of the Community Employment Group created by the Department of Labour. It funded community organisati­ons and took the kinds of chances that seem, 30 years later, to have been relatively daring. Is there a contrast with now?

‘‘When you’re setting up a community group nowadays, you have nearly got to employ a fulltime accountant and full-time lawyer. But they were taking chances to get people up and started.’’

Some good things came out of this period, from the empowering of people who thought for a time they had been left with nothing. The Southern Scenic Route tourist highway was dreamed up during a meeting at Tuatapere. There was the renovation of historic buildings in Oamaru. There was Whale Watch in Kaikoura.

Such examples suggested tourism might grow to at least partially replace declining extractive industries and manufactur­ing. People in the provinces would now produce experience­s.

Revolution was permanent. Thousands more were laid off. Patterson became ‘‘the expert on unemployme­nt’’ across the south.

‘‘The steady restructur­ing of department after department kept going for month after month and lives were shattered, for a while. In one way or another they started getting their lives back and life went on. What got me, looking back on it, was the way people rallied around each other.’’

After the Social Impact Unit, Patterson helped with the Department of Conservati­on’s first restructur­e, then was employed by Coal Corp as it closed further mines. The newly-formed Telecom was also ‘‘making big changes regularly and each time they got me in to help the staff they were kicking out’’.

He discovered that a long, cosy period of full employment in New Zealand had not encouraged the acquisitio­n of new skills, continuing education and lifelong learning. Older workers were especially exposed when major change came. Some had no idea how to go about even getting another job. Basic CV writing skills were taught.

In 1989, the same year the Social Impact Unit was disbanded, Patterson founded the Mature Employment Service in Invercargi­ll and was its national co-ordinator for most of the 1990s. It eventually had 26 centres across New Zealand.

‘‘The centres were run by unemployed people helping each other,’’ he says. ‘‘It makes life a lot easier when you find you are not on your own.’’

For Patterson, the social disaster of mass unemployme­nt foreshadow­ed the disaster of the 2010 and 2011 earthquake­s in Canterbury. The same community responses were needed: public meetings, experts roadshows, shared informatio­n.

He set up an Older Generation Forum in Christchur­ch in 2012. He wrote in The Press that ‘‘there are a lot of skills and experience and qualificat­ions within our age group. Some of us saw towns and cities rebuilt after World War II. In fact I started my apprentice­ship as a builder as they rebuilt Newcastle in England.’’

As in 1986 and 1987, people realised after the earthquake­s that uncertaint­y was often the greatest enemy. People want answers, even if it is bad news.

‘‘Cabinet said it had to happen,’’ he says of the restructur­ing. ‘‘They were probably right. But it could have happened in a different way.

‘‘Same with the earthquake­s. It could have been done a hell of a lot better. But I’ve been saying that from the start.’’

 ?? PHOTO: IAIN MCGREGOR/FAIRFAXNZ ?? John Patterson found that lessons learned during the upheaval of mass unemployme­nt came in handy after the Canterbury earthquake­s.
PHOTO: IAIN MCGREGOR/FAIRFAXNZ John Patterson found that lessons learned during the upheaval of mass unemployme­nt came in handy after the Canterbury earthquake­s.
 ?? PHOTO: JOHN HAWKINS/FAIRFAX NZ ?? Tourists on the Southern Scenic Route, which was developed during the mass redundanci­es of the 1980s.
PHOTO: JOHN HAWKINS/FAIRFAX NZ Tourists on the Southern Scenic Route, which was developed during the mass redundanci­es of the 1980s.
 ?? PHOTO: JOHN HAWKINS/FAIRFAX NZ ?? Ohai in Southland was badly affected by redundanci­es in 1987.
PHOTO: JOHN HAWKINS/FAIRFAX NZ Ohai in Southland was badly affected by redundanci­es in 1987.
 ??  ?? Political reformers David Lange, left, and Roger Douglas peruse a copy of Douglas’ book Towards Prosperity.
Political reformers David Lange, left, and Roger Douglas peruse a copy of Douglas’ book Towards Prosperity.

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