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Friday, August 13, 2010

Let's stop pretending that National isn't privatizing NZ

PPPs will start fire sale of state assets - Labour
The Government's move towards public-private partnerships (PPPs) for big projects is facing mounting criticism.

Labour says it will inevitably lead to fire sales of state-owned assets.

Finance Minister Bill English announced the new policy on Wednesday, saying Government agencies would have to consider PPPs for projects costing more than $25 million.

"We'd rather be providing a high-quality public service that the public can rely on than sitting on our hands watching services go downhill because we won't use tools that everyone else uses," he said.

But Labour, the Greens, trade unions and the Public Service Association have said PPPs make no sense and create risks for taxpayers.

"This is one more desperate ploy by a Government with no coherent plan for growing the economy or creating jobs," Labour finance spokesman David Cunliffe said yesterday. "It desperately hopes the private sector will finance projects it lacks the vision, courage or resources to do itself."

Mr Cunliffe said PPPs were a sop to private interests, and had nothing to do with prudent asset management.

"It will inevitably lead to bad decision-making, fire sales of Crown assets and higher capital costs for taxpayers," he said.

"Negotiating PPPs with savvy investment banks requires specialist skills most Crown entities don't have, so National's one-size-fits-all approach risks taxpayers being taken for a ride."

If John Key thought he could privatize the NZ continental shelf, he'd try it on. By setting the level at $25 million for PPP's, infrastructure becomes a free for all lolly scramble for National's business mates, so let's stop pretending that this isn't a privatization agenda.

Cross City Tunnel in Sydney was a PPP, and went bankrupt owing $687 million, Macquarie Bank in Indiana and Chicargo was a PPP and has built toll roads that will be tolled for 100 years while in Britain the PPP plan to fix London’s underground ended up costing the Government $5 billion after the companies went broke, why the hell we would suddenly open the PPP floodgates based at a mere $25 million seems criminal in its negligence.

Add this privatization of our assets to the bennie bashing and the attacks on workers, and one quickly realizes that merchant bankers don't change their spots or their Hawaiian mansions.


At 13/8/10 3:50 pm, Anonymous AAMC said...

It seems to be an NZ mantra, look for failures offshore and replicate! It's a pity we don't use the hindsight our geography gives us more wisely!

At 13/8/10 3:58 pm, Anonymous Anonymous said...

" why the hell we would suddenly open the PPP floodgates based at a mere $25 million seems criminal in its negligence."

Obviously to test out the ability of private companies to deliver but not to expose the Crown to huge financial liability.

If you want to see criminal negligence then why not examine the billions flowing into Maori NGO's with no accountability. Not something you'd do because the perpetrators of fraud are going to be brown: instant passcard from Bomber.

At 13/8/10 5:59 pm, Anonymous Anonymous said...

The privatization of policy advice is probably the most worrying... Get rid of professional, independent, specialist policy- makers in the public service and replace them with various working groups of private sectorites..

Wasn't Bill English quoted this week saying this was the model moving onwards?

At 14/8/10 6:32 am, Anonymous Anonymous said...

"why not examine the billions flowing into Maori NGO's with no accountability". Would you care to name them? What percentage of Maori NGO's have no accountability? I know many Maori NGO's are actually audited rigourously internally and externally in any political climate and will appear on front pages of newspapers for any discretion. Please be specific as comments like that tar everyone else with the same brush.

At 14/8/10 11:27 pm, Anonymous Anonymous said...

Hey people. Google the searh words.

Private public parnership "World Bank"
You will quite a few links to the World Banks own website and see that the Nats have copied their public private partnerships policy straight of the World Banks pages.

Take a look at the BBC clip about the world bank on this youtube channel.


The world bank are absolute pricks and like to force countries to privatise thir infrastructure.
Bolivia wanted to borrow 25 million to improve their water system and the world bank agreed on condition they privatise all their infrastructure. There were riots as the prices for basic services continued to increase with water increasing to cost Bolivians more than food . And their contracts made it illegal for them to collect their own rain water. The Bolivian Government were killing their own people to defend the San Fransisco water company who owned their water supply.
The "not allowed to collect your own rain water" theme is big in the US right now as water is being privatised.

There's a video called Blue Gold about Bolivia on the above linked to channel in the Water Privatisation playlist.


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