By Tess Bartlett - Rethinking Crime and Punishment

fact’ due to its political and media representation (Garland, 2001: 106). Thiscombination made New Zealand particularly vulnerable to penal populism.‘Rogernomics’ and economic restructuringThe state’s commitment to welfare during the post­war period led to major publicexpenditure. Thereafter, as a response to the subsequent imbalance betweengovernment income and outcome, in 1984 the incoming Labour government decidedto cut back on public spending. This meant a new and reduced role for the state.Encouraged by Minister of Finance Roger Douglas, the government began torestructure the economy. Known as ‘Rogernomics’, after the Finance Minister, thiswas considered by Douglas to be a ‘better way’ forward for New Zealand (James,1989: 11). Prior to the election, the Labour Party made assurances regarding taxationand the economy stating:The next Labour Government will protect the family by providingjobs and keeping the lid on prices … Labour’s tax policies willreduce the cost of living and promote full employment. Tax cuts willcertainly help the needy, but we’re determined to encourage moreenterprise and effort to get New Zealand’s economy on the move.(New Zealand Labour Party, 1981: 3­4)However, the subsequent economic restructuring resulted in considerable tax reform.The changes to taxation had a significant impact on the general public, contributingto broadening inequalities and, in turn, a growing distrust of government. Oneelement of the restructuring involved the introduction of indirect tax reform, inreturn for significant cuts to direct taxation, which was a ‘broadly­based tax ongoods and services supplied in New Zealand’ (Douglas, 1985: 9). The Goods andServices Tax (GST) came into force on 1 October 1986 at a rate of 10 percent (laterincreasing to 12.5 percent) and was added to the user’s end of all import goods(Douglas, 1985). Another move by the Labour government was to shift the relianceof the economy away from the British market to a more industrialised globaleconomy. At this point, citizens were encouraged to invest their new found wealth inthe stock market, encouraged by ‘the wonders of the free market’ (Newland, 2001:93). In 1987, however, there was a worldwide collapse of share prices and manyshareholders who had invested everything were left with nothing (Newland, 2001).30