For immediate release: 9 December 2015

Christchurch asset sales a mistake – union

One of New Zealand’s leading private sector unions is condemning the Christchurch City Council’s decision to flog off City Care, the publically-owned infrastructure services provider.

“We know that asset sales reduce the amount of revenue available for public interest projects, but we also know that asset sales negatively affect working people,” says FIRST Union’s Southern Regional Secretary Paul Watson.

“There’s a long history of private companies acquiring public assets only to cut jobs and strip assets.

“In 1990 central government flogged off Telecom to a consortium of investors for only $4.25 billion. When the company was sold in 1997 the new owners had made capital gains and dividends of around $10 billion. Staff numbers dropped dramatically, from 25,000 in 1987 to less than 8,000 in 1997.”

“In this context the decision to flog off our public assets makes no sense. There are better ways to achieve economic stability,” says Watson.

ENDS

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