Privatisation driven by ideology

The government’s agenda for privatising public services in New Zealand is in disarray. The latest revelations from Mt Eden prison, run by the company Serco, include riots, assaults, fight clubs, manufacturing of contraband, injuries from violence and allegations around the death of a prisoner. Last year the Mt Eden prison had more cases of assaults than any other jail, and there are constant reports of understaffing. This follows reports of serious mismanagement in other Serco-run services in the UK and Australia. But despite all of these problems, and at least six Performance Notices in the last three years, Serco’s contract has still not been terminated.

These problems raise serious questions about the government’s private sector approach to prisons. The role of corrections should be to ensure that those in their care are denied their freedom, not their human rights. It should also be to create an environment in which inmates are able to develop the skills and mentality to make a positive contribution to society upon their release. These responsibilities do not sit easily within a profit making model.

There are also problems with a private sector approach to education. At a time when international reviews point out that our school system is failing children in poorer districts, the government has diverted much needed funds to set up private sector schools (‘charter schools’). Despite giving them preferential treatment, there have been major problems at a number of the charter schools, including financial mismanagement, poor teaching and an unsafe environment for students. This is not surprising. The introduction of charter schools was driven by ideology, not by evidence. The charter school model has had, at best, mixed results in other countries. The government should be focused on making the state school system work well instead of diverting funds and management attention to pursue an ideologically-driven model of education.

The government has also been pursuing the sell-off of state houses. The original idea was that these might be sold to housing providers, but organisations like the Salvation Army declined. Now the government has opened the door to selling off state houses to overseas companies. This is the wrong approach. With Auckland house prices hitting new highs, rents have become unaffordable for working families as well as beneficiaries. The Green Party has been calling for more affordable housing, especially in Auckland, not less.

Now there is a push for new deals with corporate contractors. The government has said that they will force local Councils to contract out regulatory functions. But profit-driven companies should not be authorised to undertake functions like environmental regulation and resource consent decisions. It is inevitable that public accountability will be sacrificed along with protection of the environment.

It is clear that there is deep public concern over the government’s privatisation agenda. It is only 18 months since more than two thirds of New Zealanders said no in the referendum on selling off shares in electricity utilities and Air New Zealand. But the government went ahead anyway. Democracy was swept aside and our valuable assets were sold. We now see the costs of privatisation mounting, in terms of people’s lives as well as financial costs. The Green Party opposes the government’s ideologically-driven agenda of privatisation. We need your support. www.greens.org.nz.

Barry Coates was a candidate for the Green Party at the last election.