Great Submission

I saw a fabulous report on a submission on the latest anti-democratic measure introduced by Rodney Hide - the privatisation of water.  I reproduce it here for your information

Magge Tait; NZPA Correspondent


Wellington, July 22 NZPA - Allowing more private control of water will end up costing ratepayers more, a select committee considering a bill aimed at keeping rates down was told on Thursday.

New Zealand Council of Christian Services executive officer Trevor McClinchey told the committee he was concerned by measures in the Local Government Act 2002 Amendment Bill to repeal a provision that gives councils control over the management of private contracts of water services and extend contracts to private companies from 15 years to 35.


Mr McClinchey said transferring management and decision making control over water to the private sector see profit making the priority and not public good.

Internationally private control had led to rising costs and poor quality and delivery, he said.
In Britain the price of water doubled in the first four years after privatisation, within eight years water companies made 142 percent profit. Water and sewerage bills increased 67 percent between 1989 and 1995 and service disconnections rose by 177 percent. There were also major maintenance problems.
Australia and New Zealand were being targeted by two big French companies, Veolia and Seuz, which had 39 contracts.
"Their track record is appalling in many places around the globe. In Australia the companies have made savings by reducing the workforce and failing to invest in infrastructure," Mr McClinchey said.

There was a major outbreak of water borne diseases in Sydney in 1998 not long after privatisation and there were problems in other countries too.
"It would be retrogressive for councils to hand over the control and management of water services to the private sector which is accountable to its shareholder rather than to communities."
The New Zealand Water and Wastes Association — Water New Zealand — said there should no specified term for contracts or joint arrangements for water services. However it recommended yearly renegotiations on pricing and policy.
"Whoever is managing the water services, which we don't have at the moment, needs to adhere to comprehensive performance requirements. And because they are a monopoly supplier there needs to be an element of price regulation attached to it," the association said.
The Institution of Professional Engineers, and Association of Local Government Engineering said for long term contracts the local authority needed to retain core responsibilities. The organisations strongly supported the 35 year contract period because that would allow cost-effect bids for major capital works such as treatment plants.
- Content provided to you by NZPA

Go Trevor, a warning to us all!