PSA Media Release
June 9, 2009
For Immediate Use

Local government review opens way to privatisation

“Rodney Hide’s review of the law governing local government is a sign that the government is adopting the ACT Party’s policy of privatising local government services,” says Public Service Association national secretary Brenda Pilott.

The Cabinet has agreed to a request by Mr Hide, the Local Government Minister, to review the Local Government Act 2002. Mr Hide says he wants the law changed to require local government to focus on core activities.

ACT Party policy says local government should be confined to core activities such as regulation, flood control and roads. Beyond those core services ACT policy says: “Local government should progressively shed ownership of its commercial activities.”

“Mr Hide is now talking about expanding the list of core local government activities,” says Brenda Pilott.

“But the fact remains that he is the leader of a party that has a clear policy of privatising services that New Zealanders rely on and use every day.”

“This is despite the fact that around the world governments are having to bail out and nationalise major parts of the private sector like banks, insurance companies and car makers.”

“To claim that the private sector is better equipped to own and operate local government services has no credibility when the world is gripped by an economic crisis created by poor management in the private sector.”

“The government is ignoring the risk of relying on the private sector to provide vital services and is surrendering to ACT’s agenda of privatising local government activities.”

“Privatisation means the public has to pay the extra cost of user charges to deliver a profit to private providers.”

“Mr Hide’s planned law change will also mean central government will end up telling councils which services they can provide regardless of the needs of their local community,” says Brenda Pilott.

ENDS

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