Kennedy Graham

Whitehead reveals Government’s Hand ??

by Kennedy Graham

In an interesting move the Treasury seems to be foreshadowing the Government’s privatisation agenda by yesterday putting out a press release of their CE’s speech which calls for change in the public sector. Given how closely the speech aligns with the Government’s rhetoric around the public sector and their ideological commitment to the private sector, it seems safe to the assume that at the very least the Government were happy for this to happen.

So what did John Whitehead’s speech to public sector Chief Executives in Wellington yesterday promote?

It set out a series of goals that, on the face of it, most New Zealanders could agree with. Basically, that we need a focussed, efficient and productive public service. No one could disagree with that.

But what does it mean in practice?  The strong implication in this speech is that more services need to be carried out by the private sector. This seems to be based on the tired old assumption that private sector is always more efficient.

He cleverly avoids using examples of where privatisation should be used, presumably to avoid arguments as to whether there is evidence that it works.

The one example given as an example is private prisons but the evidence from countries that have widespread use of private prisons such as the US and Australia shows that they do not save money. 

The other issue with this speech is that it promotes the idea that in a recession you need to cut public spending. This ignores that a slash and burn approach will only make the recession deepen.  What we need is Green New Deal investment from the Government that strengthens the economy and protects the environment.

Published in Environment & Resource Management by Kennedy Graham on Tue, July 21st, 2009   

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