Cost of water will increase if privatised

This government is preparing water for privatisation, and that will ultimately mean water meters in homes and higher costs for water, Jim Anderton said today.

Former Minister of Local Government, Sandra Lee introduced the 2002 Local Government Act to prevent ‘Trojan Horse’ privatisation like this. It made it compulsory for local councils to consult with the public on any proposed changes to water supply and pricing.

“We did this because the supply of water is an essential service and too vital to be put at risk. The private sector has one driving motive; to make a profit. That’s not a criticism of the private sector – its just what it does. But the only way you make a profit out of water is to charge people more for it,” Jim Anderton said.

“And guess who the private companies are? Big foreign-owned companies who do very nicely out of charging you more for your water.

“Rodney Hide has taken the first step in dismantling Sandra Lee’s 2002 system that was there to protect consumers and rate payers. The next step is fully-fledged privatisation.

“I’m not opposed to public private partnerships in principle; our Fast Forward Fund for research and development was one of the most ground-breaking examples of how government can work with business. It’s ironic that National axed that, and replaced it with a state run ‘fund’ called the Primary Growth Partnership, with a massively reduced role for the private sector.

“But it makes no sense to privatise a public good like water where there can be only one supplier. It’s a natural monopoly. We can’t live without it. Our farmers can’t farm without it.

“If there’s one thing any government needs to take responsibility for, it’s the supply of safe and clean water.

“If Mr. Hide gets his way, water infrastructure will be built, owned and operated privately for up to 35 years. The longer time-limit, from fifteen years, makes it much more attractive to the private sector. The requirement to consult with the local community has been greatly reduced in order to make water more attractive to private companies.

“There’s a theme running through everything the Local Government Minister, Rodney Hyde, does. Communities get in his way. A few weeks ago he stripped away the requirement that any sale of the Ports of Auckland be put to a referendum in the third bill setting up the super-city and we, in Christchurch, have experienced his destructive hand when he demolished democracy here for three and a half years,” Jim Anderton said.

ENDS

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