ROGERNOMICS AND RUPTURE: HUNTLY’S RESPONSE TO THE CORPORATISATION OF STATE COAL MINES IN 1987 A thesis submitted in partial fulfilment of the requirements for the Degree Master of Arts in History at the University of Canterbury. HELENA DILLON UNIVERSITY OF CANTERBURY Christchurch, New Zealand, 2010 II Table of Contents Acknowledgements ............................................................................................... 1 Abbreviations ........................................................................................................ 2 Abstract .............................................................................................................................. 3 Introduction ....................................................................................................................... 4 1. Historical Context ............................................................................................. 16 Huntly ................................................................................................................. 16 State Coal Mines ................................................................................................. 22 Rogernomics and the Fourth Labour Government ............................................. 25 Historiography .................................................................................................... 31 2. Wellington goes to Huntly ................................................................................ 38 The Announcement ............................................................................................. 40 The Deployment Centre ...................................................................................... 47 Policy and Planning ............................................................................................ 52 3. Voices from the coal face. ................................................................................. 56 The Reasons for Corporatisation ........................................................................ 57 Redundancy ........................................................................................................ 61 Support Services ................................................................................................. 63 The Attraction of Mining .................................................................................... 65 Re-employment ................................................................................................... 72 Life after 1987 .................................................................................................... 74 4. Huntly: A Miners’ Community ....................................................................... 80 Retail Changes .................................................................................................... 80 The Changing Face of Huntly ............................................................................. 82 5. The Immediate Aftermath of 1987 .................................................................. 91 Huntly Development Agency ............................................................................. 96 Job Search Services .......................................................................................... 102 Support Services ............................................................................................... 105 6. The Long Term Impacts of 1987 ................................................................... 108 The Revelation of an Underclass ...................................................................... 109 Social Impacts ................................................................................................... 113 III Changes to the Huntly Demographic ................................................................ 115 Impacts on the Huntly Economy ...................................................................... 117 Conclusion ..................................................................................................................... 121 Epilogue ......................................................................................................................... 127 Appendix 1: Table of Interviews ...................................................................... 133 Appendix 2: Semi-structured Interview Questions ........................................... 134 Appendix 3: Huntly Business Telephone Listings ........................................... 136 Appendix 4: Yellow Pages Listings ................................................................. 142 Bibliography ..................................................................................................... 144 IV List of Figures Figure 1-1 Huntly Location Map. ..................................................................................... 17 Figure 1-2: Map of Huntly Coal Fields. ............................................................................ 21 Figure 1-3: State Coal Department, A Commercial Focus. .............................................. 24 Figure 1-4: You are fired. ................................................................................................. 27 Figure 3-1: Things Look Grim. ......................................................................................... 57 1 Acknowledgements This thesis is only possible because of a network of wonderful people who have supported me throughout my adult university career. Firstly, I must acknowledge my outstanding supervisor Professor Philippa Mein Smith, who has assisted and advised me via a long distance relationship for the duration of this thesis. She has been a constant presence during my time at university and I truly appreciate and applaud her expertise, enthusiasm and patience. If it were not for the Huntly miners and their families this thesis would not exist. Thank you for making time for me, and for welcoming me into your homes to share your memories. Likewise, other interviewees have been exceptionally generous with their time and support of this project, and I would like to especially thank Jane Bryden for her perspective. Lastly, I am extremely grateful to my whanau. Jo and her family have provided me with a home-away-from-home, filled with love and laughter, over the past six years. I cannot imagine how I would have coped without them. My nieces and nephews, Teina, Lauren, Bradley and Meihana, have shared my student life. They have accompanied me to lectures and the library, and I hope that one day they may choose to follow in my footsteps. Higher education was not an option for either of my parents so I dedicate this to Mum and Dad. They probably wondered what I was doing at times, but nevertheless they kept smiling and encouraging me. Finally, none of this would have been possible without my wonderful husband Ian. Nga mihi ki a koutou katoa. 2 Abbreviations AJHR Appendices to the of the House of Representatives, New Zealand CoalCorp Coal Corporation of New Zealand Ltd ERO Education Review Office HDA Huntly Development Agency MOCU Management of Change Unit PSA Public Service Association SCM State Coal Mines SSC State Services Commission WEA Waikato Enterprise Agency 3 Abstract This thesis captures the memories of the 1987 Huntly mineworkers who were severely impacted by the corporatisation of State Coal Mines. There were just 19 days between the announcement of job-loss numbers and employment notices being sent out. Over half of the workforce was made redundant. For some of the miners, there were opportunities and new challenges, for others it was the end of their working lives. This thesis considers how the redundancies affected the miners, their families, and the wider community. As a coal town, Huntly is steeped in mining tradition. There was an unwritten social contract between State Coal Mines and the community, which was replaced with a clause advocating social responsibility in the State-Owned Enterprises Act. Miners share a deep sense of camaraderie, reinforced by their dangerous working conditions. Social employment policies meant that generations of a wider family network could be working together in one location. Huntly was placed under enormous strain as a result of the widespread redundancies. A level of social dysfunction, including illiteracy and domestic violence, became apparent in Huntly during this time. Despite the shock, the community rallied around to support the miners, and to explore options for future business and employment in Huntly. This thesis is based on oral history and examines the response of those who were affected in 1987. Their recollection of the corporatisation process and the effects it had on their community are revealing. Furthermore, this thesis explores the reaction of the community to the redundancies and highlights initiatives that were implemented to mitigate the effects. The miners’ perspective of how corporatisation affected their community, and the challenges Huntly faces to the present day, are also considered. 4 Introduction Huntly is a town built on coal, and the mineworkers and their families can be considered the foundation of the community. In 1987 State Coal Mines was the biggest employer in the area, with a local workforce in excess of 900. As part of the economic reforms that were implemented by the fourth Labour government under ‘Rogernomics’1 the Huntly mining workforce was reduced by half. It was a huge blow to the community, which was left wondering how it would survive. As