Water Privatisation in New Zealand -
the campaign & the current situation
Current Situation and the Local Government Act 2002 Amendment Bill
On Tuesday 4 May 2010
the Local Government Act 2002 Amendment Bill passed its first reading in New
Zealand
Parliament. Public submissions on the bill closed on June 18th.
One aspect of the Bill deals with water. While Minsiter of Local
Government, Rodney Hide, is denying this, the Bill allows councils
to privatise
water. They will be able to:
- enter into contracts with private companies to run water
services for up to 35 years (the current limit is 15 years)
- allow private companies to own and control water
infrastructure for the duration of these contracts (the current
legislation requires councils to retain ownership and control of water)
Later
this year the Select Committee will report back to Parliament and
Government will vote on whether or not the bill becomes law. On its
first reading National, Act and United Future voted for the bill.
Labour, the Maori Party, the Progressive Party, and the Green
Party voted against the bill.
Only National and Act need to vote in favour of the bill on its second and third readings for it to become law.
Things to know about the bill
- Clause 31 and 32 make the changes to the way water can be managed
- Other
changes in the bill mean that councils won't have to consult with the
public if they decide to pass over control and ownership of water
- The long-term leases the bill allows for are the most common form of
water privatisation in the world.
-
Read the Local Government Act 2002 Amendment Bill
- relevant bits, explanatory note on page 7, clause 11 (consultation), clauses 31 and 32(water)
Why putting water in control and ownership of private companies is a bad idea
- Water is a necessity for life - it shouldn't be in the control of the public sector.
- Water is a natural monopoly - it's too tempting for any private company to be the sole provider of something people can't help but buy.
- It's more expensive for water users - companies need to make a profit and charging users is a natural revenue stream.
- It's more expensive for councils - the myths of efficiency and cost saving don't pan out - councils don't need to make a profit, companies do.
- There is less accountability -
there's no chance to vote out a private company in control of our
water, and once a contracts signed it's really hard to get out of it,
even if the company fails to perform.
But is it privatisation?
Yes it is.
Rodney
Hide, Local Government New Zealand and others keep saying it isn't
privatisation. They have it wrong. They don't understand water
privatisation or they're deliberately misleading the public.
The bill enables the most common form of water privatisation in the world
Most
water privatisation in the world is through long-term contracts-
sometimes called public -private partnerships. This bill
specifically enables this type of privatisation.
Common usage
It's
almost impossible to find anyone, anywhere, (except those trying to
push through privatisation) who distinguish between privatisation and
ppps or long-term contracts. Check for yourself on google.
Commonsense
It's
just commonsense - ask almost any New Zealander if giving private
companies control and ownership of water is privatisation and they'll
say yes.
Oxford English Dictionary definition
The Oxford English Dictionary which says privatise is to "transfer from public to private ownership and control"
And the explanatory note of the bill....
...which says "However, the local government organisation no longer has to retain
control over the management of the water services or ownership of all of
the infrastructure associated with the water services throughout the
joint arrangement"
Take Action
Just
because submissions have closed we shouldn't stop trying to stop this.
The campaigns across the world to stop corporations controlling water
are some of the biggest civil society movements of our times.
Environmentalists,
social justice activists, indigenous people, small farmers and
communties are part of the struggle to keep water for the planet and
people not profit.
The campaign in New Zealand is as big as you make it.
1. Organise a meeting
Organise a meeting to discuss what you want to do to stop privatisation.
You
might like to get a speaker, or show a film like Flow, available free
on the Internet. You can invite local community groups like Grey
Power, or social justice and environment groups. The local Maori Party,
Green Party or Labour Party may be interested in attending. We also
know that many in the National Party, and ACT are probably also opposed
to putting water in private hands.
2. Organise an action
We
don't think anybody should sit and wait for people in Parliament to
decide the fate of New Zealand's water. Hold a rally. Collect water in
buckets and try and sell it to passers by, paint messages on umbrellas,
leaflet your neighbourhood, perform street theatre...we'll be updating
this site with useful resources
3. Contact your MP
- Submissions
have closed on the bill but you can still tell your MP you want them to
vote against the bill when it comes back from Select Committee
- You
could ring them up, write to them ( c/-Parliament Buildings,
Wellington, no stamp needed) or make an appointment to visit them.
- National, ACT and United, especially in marginal seats
are particularly good targets as they voted against the bill in its
first reading
- Tell your MP why you think water should stay in public ownership and control
4. Stay in touch You can join one of the Right to Water email lists
Waterloop - an open discussion group for those fighting privatisation
Updates - an occasional update from Right to Water about what's happening
Let us know what you're doing and we'll advertise it on the site.
Useful
links and resources
Dead
in the water: the dangers of water privatisation, Australian
Services Union, April 2010
Money
down the drain: how private control of water wastes public resources.
Food and Water Watch, 2009.
Case
studies of failed water privatizations. Food and Water Watch,
2009.
PPPs
in the EU - a critical appraisal. David Hall. London: PSIRU,
2008.
Pipe
Dreams: the failure of the private sector to invest in water services
in developing countries.
David Hall & Emmanuele Lobina. London: PSIRU & World
Development Movement, [c2006?].
pp42-46 explore the
failures of BOTS (Build-Own-Transfer) schemes in water delivery. The
proposed reforms are specifically aimed at allowing for BOTs in NZ.
A
closer look: Veolia. Food and Water Watch, 2009
United Water, a
subsidary of Veolia, currently has several operations in New Zealand
including a 30 year contract to run Papakura's water service,
signed before
the passing of the Local Government Act 2002 which limited such
contracts to 15 years. The proposed legislation would increase this to
35 years.
- Right
to Water, PO Box 9263,
Wellington, NZ, Email
us, This page last updated 23 December 2009
