Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Where’s National’s ‘corporate welfare’ reform?

PRESS RELEASE: Independent Candidate for Epsom Penny Bright:

"How many billion$ of public monies could be saved by 'CUTTING OUT THE CONTRACTORS'?

3 November 2011

Where’s National’s ‘corporate welfare’ reform?

Which of the maor political parties are pushing for ‘corporate welfare’ reform and shrinking the long-term dependency of the private sector on our public monies?

Where is the 'devilish detail' at both local and central government level - which shows EXACTLY where our public rates and taxes are being spent on private sector consultants and contractors?

Why aren't the names of the consultant(s)/ contrators(s) - the scope, term and value of these contracts, published in Council or central government Annual Reports - so this information on the spending of OUR public monies is available for public scrutiny?

Where are the publicly-available 'Registers of Interests' for those local government elected representatives, and staff responsible for property and procurement, in order to help guard against possible 'conflicts of interest' between those who 'give' the contracts and those who 'get' the contracts?

Where's the 'transparency'?

Given that New Zealand is 'perceived' to be the least corrupt country in the world - along with Denmark and Singapore, according to Transparency International's 2010 'Corruption Perception Index - shouldn't we arguably be the most transparent?

Going back a step - where are the New Zealand 'cost-benefit' analyses which prove that the old 'Rogernomic$ mantra - public is bad - private (contracting) is good' can be substantiated by FACTS and EVIDENCE?



At last - someone - somewhere has actually done some substantial research - which proves the opposite.

That 'contracting out' services that were once provided 'in-house' is actually TWICE as expensive.

“USA Project On Government Oversight (POGO)[1] decided to take on the task of doing what others have not—comparing total annual compensation for federal and private sector employees with federal contractor billing rates in order to determine whether the current costs of federal service contracting serves the public interest.

http://www.pogo.org/pogo-files/reports/contract-oversight/bad-business/co-gp-20110913.html
Executive Summary

Based on the current public debate regarding the salary comparisons of federal and private sector employees, the Project On Government Oversight (POGO)[1] decided to take on the task of doing what others have not—comparing total annual compensation for federal and private sector employees with federal contractor billing rates in order to determine whether the current costs of federal service contracting serves the public interest.

The current debate over pay differentials largely relies on the theory that the government pays private sector compensation rates when it outsources services. This report proves otherwise: in fact, it shows that the government actually pays service contractors at rates far exceeding the cost of employing federal employees to perform comparable functions.

POGO’s study analyzed the total compensation paid to federal and private sector employees, and annual billing rates for contractor employees across 35 occupational classifications covering over 550 service activities. Our findings were shocking—POGO estimates the government pays billions more annually in taxpayer dollars to hire contractors than it would to hire federal employees to perform comparable services. Specifically, POGO’s study shows that the federal government approves service contract billing rates—deemed fair and reasonable—that pay contractors 1.83 times more than the government pays federal employees in total compensation, and more than 2 times the total compensation paid in the private sector for comparable services. ”

The implications of this both nationally and internationally are HUGE.

If NZ central government figures are comparable with those of USA Federal Government – could the current NZ $82 billion central government spend be sliced in half by $40 billion ‘CUTTING OUT THE CONTRACTORS’?

http://www.treasury.govt.nz/budget/2011/estimates/est11sumtab.pdf


Which political parties / candidates are focussing on the SPENDING of public monies, rather than debt and borrowing?

If central and local govt departments /SOEs / CCOs / Crown Research Institutes are all defined as ‘PUBLIC- BENEFIT ENTITIES’ as defined under NZ Equivalents to International Financial Reporting Standards (“NZ IFRS”) – then their primary objective is to provide services and facilities for the community as a social benefit rather than make a financial return.

So – how come so many services that USED to be provided ‘in-house’ are now contracted out to the private sector – whose primary objective is most certainly to ‘make a financial return’?

What magic is this that transforms public (ratepayer and taxpayer) monies into private profit?

WHERE IS THE NZ EQUIVALENT OF ‘POGO’ the USA ‘Project On Government Oversight ‘ which has just completed first-ever research which proves that private contractors cost twice as much as ‘in-house’ providers of Federal Government services?

HOW MUCH MONEY could be saved in NZ at central and local government by cutting out all the private ‘piggies in the middle’ with their greedy snouts in our public troughs?

Why aren’t the statutory ‘third party’ Public Watchdogs, as well as other major political parties demanding this accountability?

How much public money at central and local government level could be saved by ‘CUTTING OUT THE CONTRACTORS’?

Who else is even asking this question?

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK


Gordon Campbell: On Reforming Parliament’s Toxic Culture

It would be nice to think Parliament was a forum where rationality ruled – and where policies are raised and evaluated in terms of their contribution to the greater good. Obviously, it isn’t like that... More>>

Historic Assualt Allegation: Parliamentary Service Staff Member Stood Down
Rt Hon Trevor Mallard said today: “I do not want to cut across any employment or possible police investigations, but I am satisfied that the Parliamentary Service has removed a threat to the safety of women working in the Parliamentary complex." More>>


 

Fatal 2018 Crash: Police Officer Should Not Have Engaged In Pursuit

The Independent Police Conduct Authority has found that a Police officer should not have tried to stop or pursue a car thought to contain young people in Palmerston North on 28 May 2018. More>>

ALSO:

New Poverty Targets: Goals Overlook 174000 Children In Worst Poverty

Child Poverty Action Group is pleased to see the Government set ambitious 10-year targets for child poverty reduction, but we are disappointed not to see a target set for improving thousands of young lives where the worst of poverty is found. More>>

ALSO:

Study: Guidelines Needed To Avoid Risks In Government AI

New Zealand is a world leader in government algorithm use – but measures are needed to guard against their dangers. This is the conclusion of a New Zealand Law Foundation-funded report from the University of Otago’s Artificial Intelligence and Law in New Zealand Project. More>>

ALSO:

Pike River: Families Welcome Opening Of Drift

The group representing 29 of the Pike River Families - the Pike River Family Reference Group - has welcomed the unsealing of the mine at a private family event this morning... More>>

ALSO:

Auckland Harbour Bridge: New Design For Walking And Cycling Crossing

The NZ Transport Agency has released plans for its preferred option for a shared path over the Auckland Harbour Bridge which will transform walking and cycling not only across the harbour, but throughout the city. The Transport Agency says its preferred ... More>>

ALSO:

Wellington:

Shaw First Reading Speech: Climate Change Response Bill

Madam Speaker, today we begin the task of amending the Climate Change Response Act [2002], to fulfil the commitment that we have made, as a country, to limit global warming to no more than 1.5 degrees Celsius above pre-industrial levels. More>>

ALSO:

Housing: More Unsold Kiwibuild Houses Bought By Govt

The Crown underwrite for unsold Kiwibuild homes has been triggered for a second time. Now lack of sales in Mike Greer's development in Canterbury and Auckland means the government has had to buy back seven more homes. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels