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Local Govt should not go into business

Media Release

22 August 2014

Immediate Media Release

Dr Jamie Whyte ACT Leader

Local Government should not go into business- Stick to the knitting

“No one should take any comfort from the fact that “Infracon”, a roading company in Tararua and Central Hawke's Bay, is to go into liquidation. This puts the future of more than 200 jobs in doubt. ACT sympathises with those whose jobs are on the line,” said Dr Jamie Whyte ACT Leader today

"Infracon is not just any construction company. “Infracon “is one-third owned by a Central Hawke's Bay District Council with Tararua District Council owning two-thirds.

“ACT strongly opposes Local Bodies getting into the construction business. It is a sector of the economy where large companies have been building up their resources over the years, honing their skills and delivering value for money to their shareholders, their workers and their clients, Local Bodies and the Central Government.”

“For a council charged with looking after the interests of its ratepayers to imagine it could compete with well-funded capable road companies was folly,” said Dr Whyte.

“It may be a tad boring for councillors to stick to figuring out ways to keep the sewers open, get the roads fixed and buses running on time. Commerce can look an exciting prospect. It is. However, it is best left to the private sector. It’s what they do best.”

“ACT will seek to amend the Local Government Act so that councils stay out of business, stick to their knitting and serve the ratepayers.”


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