Press Statement for immediate release 27 May 2009

NZ Infrastructure To Be Guided By Water Privatiser

The government has included in its infrastructure advisory board the head of a company renowned for water privatisation.]

On Monday, Bill English, Minister of Infrastructure announced Alex Sundakov alongside six others would form a board providing advice to the government and helping form a 20 year infrastructure plan. Sundakov is executive director of Castalia, a company whose work includes advising governments on how to involve private sector in provision of basic water services.

The Castalia website states that water and sanitation utilities "...are best operated according to commercial principles, but public sentiment often discourages water and sanitation services from being treated commercially. These features make private investment in the sector particularly sensitive - yet handled correctly, private participation can bring great benefits." http://www.castalia.fr/water.php

"The government’s water commercialisation agenda is increasingly transparent and it's not what New Zealanders want", said Right to Water spokesperson, Maria McMillan.

"Appointing Sundakov to the board is a slap in the face for all of us who believe the provision of water should remain in public hands. Involvement of the private sector in management and delivery of water is disastrous. Water is a natural monopoly and contracting out supply and delivery to business, which seems to be where the government is heading, has been shown internationally to lead to corruption, high pricing for water, public health crises and infrastructure failure", said Ms McMillan

"Castalia has a very clear one-size-fits-all position on the appropriate governance of water. It is difficult to imagine Mr Sundakov providing advice that prioritises the social, community and health needs of New Zealanders. The private sector by definition must prioritise shareholders. Water is part of nature, a human right, and is fundamental to all life. It should be governed with the planet and people in mind, not profit."

"Castalia has been attacked overseas for its anti-people pro-privatisation agenda. The apppointment of a representative of this company is inappropriate and worrying", she said.

ENDS

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