Media Release
2 February 2011

Negative PPP report no surprise – PPTA

A report throwing serious questions at government plans for public private partnerships (PPPs) in schools comes as no surprise to PPTA president Robin Duff.

Duff, who takes over from (now senior vice president) Kate Gainsford, said the business case prepared for the ministry of education – and revealed through the Official Information Act by Radio New Zealand - confirmed what PPTA had been saying for a long time.

Last year PPTA annual conference delegates unanimously voted to oppose any government moves to establish PPPs in school.

“The conference paper – Private Profiteering or Public Private Partnerships – is unequivocal in its opposition to PPPs, citing overseas evidence of delivery failures and exorbitant costs imposed on the taxpayer,” he said.

The newly revealed report shows that PPPs in schools would save only about $800,000 over 30 years and estimates the countries first PPP schools will cost $6 million. “You do the math.”

The report also identifies as serious risks a negative reaction from the education sector and the possibility that the ministry of education does not have the capability to run such projects successfully. There are also concerns about private companies deciding the use of schools buildings outside of school hours.

Despite the overwhelming case against PPPs in schools, the government is expected to call for tenders for the first one in the next few months, a move Duff sees as “clearly foolish.”

International experience shows there have been serious problems with PPPs and that it is the taxpayers that are hurt in the end.

“The government ignores this advice at its peril,” he said.

Private Profiteering or Public Private Partnerships conference paper can be found here: http://www.ppta.org.nz/index.php/annual-conference/annconf-papers10/1362-annconf10-ppps-paper

ENDS

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