Excuses to privatize
Local government debt forecast to double
Local government debt is likely to double to $11 billion during the next seven years as councils borrow to pay for core services. By June 2019, total debt is forecast to be at $10.765 billion, a rise of 99 per cent over June this year. Local Government NZ president Lawrence Yule said the introduction of compulsory asset management plans had forced many councils to deal with long-neglected infrastructure such as roads, water and sewerage systems, and they had no option but to borrow for the work.
This debt that has built up from long awaited infrastructure upgrades will be the main excuse Hide will use to privatize local government services as the glorious solution to the ever increasing rates tsunami. Rates going up while home owners face slumping house prices and W recessions breeds the exact type of conditions that generate quick fire asset sales.
Do not take your eyes off Hide, ever. He’s working on TABOR and the changes he is planning for local government will be the privatization blueprint for the country post 2011.