Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Risk of privatising youth employment services too high

23 February 2012

Risk of privatising youth employment services too high, say Greens

The Green Party has called on the Government to abandon plans to privatise the Ministry of Social Development’s youth employment services, following the release of a Cabinet paper which reveals Treasury has significant concerns about the plan.

The Cabinet paper, released under the Official Information Act, proposes targeting privatised employment services to those aged 16 and 17 who are not in employment, education, or training.

However, Treasury advise that there is significant risk of private providers gaming the system, for example by classifying young people at a higher risk of long term unemployment than might actually be the case. Treasury also advises the complexity of case management will make it very difficult for the Ministry of Social Development to audit the private contracts and compare their outcomes with the Ministry’s own service delivery.

“Our young people deserve better than being treated as guinea pigs in a risky ideological experiment that has already failed overseas,” Green Party Co-leader Metiria Turei said.

“John Key’s Government should learn from the United Kingdom, where a similar privatisation of employment services proved to be a disaster.

“In 2010, the Public Accounts Committee of the UK House of Commons reported the performance by the private sector providers of employment services in that country had been universally poor by comparison with that of public providers, that targets agreed with providers were over-optimistic, and that they underestimated the difficulty of supporting their clients.

“Private provision of youth employment services is nothing less than corporate welfare which will feather the nests of the providers’ executives and shareholders, while putting our young people at even greater risk of long-term unemployment.

“John Key’s Government also needs to be reminded that no amount of employment service provision, whether private or public, will get young people into employment if there are no jobs for them to go to,” Mrs Turei said.

”The Green Party has a plan to create those jobs. National does not.”

Report of UK House of Commons Public Accounts Committee: http://www.publications.parliament.uk/pa/cm201011/cmselect/cmpubacc/404/40402.htm:

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Gordon Campbell: On The Economic Bad News (And Turkey’s Fears About The Kurds)

Traditionally, voters regard National as a more competent manager of the economy. It is the sole upside of crony capitalism: surely these guys must know what their mates in business want and need. These last few months though, have put that faith sorely to the test... More>>

ALSO:

Discussion Document: Fresh Look At Family Violence Laws

A discussion document launched today takes a hard look at the way the law prevents and responds to family violence, and proposes a comprehensive rethink to strengthen New Zealand’s legislative response. More>>

ALSO:

PM's Presser: ‘Precarious’ Solid Energy In Banks’ Hands

Liquidation of state-owned coal company Solid Energy “cannot be ruled out” but is “not the number one preferred option of the government,” says Prime Minister John Key, who confirmed the beleaguered company was discussed today at Cabinet as its banking syndicate grapples with its commercially dire prospects. More>>

ALSO:

Missed Opportunities: Amnesty International Report Card On NZ's UN Role

As New Zealand steps down from its month as President of the Council, Amnesty International has taken the opportunity to review New Zealand’s role on the Council so far and assess their performance and contribution to protecting human rights worldwide. More>>

ALSO:

Prince Charles Get More Jobs: PM Announces Honorary Military Appointments

PM John Key has announced that Her Majesty The Queen has approved the appointment of HRH The Prince of Wales to three honorary positions: Admiral of the Fleet of the Royal New Zealand Navy; Field Marshal, New Zealand Army; Marshal of the Royal New Zealand Air Force. More>>

ALSO:

No TPP Deal: Gordon Campbell On Why We Should Still Oppose Investor-State Dispute Measures

Even in this dark hour for the TPP, the secrecy farce continues... What is left to hide? Every single negotiator went into those talks in Maui knowing exactly where everyone else stood. More>>

REACTION:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news