PSA Media Release
February 3, 2012
PSA MEDIA RELEASE
Treasury’s call harks back to 1980s

Treasury’s briefing to the incoming minister is a neo-liberal prescription for more social inequality, says the PSA.

Treasury’s call to cut taxes and further reduce the state sector comes at a huge cost to society, especially to those most in need of public services.

“This advice is harking back to the 1980s. Surely we’ve learned the lessons from then. We know that more contestability, privatisation and tax cuts will increase the gap between those who have and those who don’t,” says PSA National Secretary Richard Wagstaff.

“Its call for more contracting out of services puts the burden of keeping costs down on providers which leads to wages being driven down and services put at risk.

“If this Government wants economic growth and development it’s time to invest in, not cut public services.

“Over 150 years of research from around the world shows that growth and development are intrinsically linked to investment in public services.

“We trust the Government will recognise that New Zealanders depend on their public services and are not looking for a replay of the radical changes of the 80s and 90s,” says Richard Wagstaff.

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