The Watchdog

Keeping citizens in the loop

Whether the ‘contracting out’ term is 15, 30 or 50 years – it is STILL water privatisation.

5 May 2010

To the Producer /Chief Reporter

(A quick response – I will be doing a more detailed ‘Press Release’ later.)

To say that the ‘contracting out’ of water services, or Public Private Partnerships (PPPs) are NOT privatisation, is using the Hitler technique of the ‘BIG LIE’, in my considered opinion.

My opinion is as a judicially recognised ‘Public Watchdog’ on water services and one of 60 ‘World Water Warriors’ who attended the World Water Forum in Kyoto in 2003, to totally oppose PPPs for water services.

‘Contracting out’ /PPPs are the most common form of water privatisation internationally.

That is why the Water Pressure Group opposed the contracting out provisions of the Local Government Bill in 2002.

Whether the ‘contracting out’ term is 15, 30 or 50 years – it is STILL privatisation.

(To say contracting out for 15 years is NOT privatisation – but 35 years IS privatisation – is like saying that a woman can be a little bit pregnant…..)

Does Private Sector Participation Improve Performance in Electricity
and Water Distribution?

Katharina Gassner

Pg 3

“Differentiation by Contract Type

Much past research has concentrated on “pure privatization”—permanent
private control over business assets and associated rights.

But because of natural monopoly features and social and political considerations, full divestiture
of assets is rare in electricity and especially so in water and sanitation.

The study therefore examines the broad range of legal arrangements for involving the private sector—management and lease contracts, concessions, and partial as well as full divestitures—using the transfer of operating rights to determine whether a utility is privately operated.

The results are differentiated by type of contract. The strength of the PSP
impact is expected to vary by contract type, and the predominant type differs
by sector: divestitures (full and partial) account for most PSP cases in electricity
distribution, and concessions account for most in water and sanitation.”



Back to the public or the private ‘operators’?

Follow the income stream………………

Who ‘owns’ the ‘own’ part of the BOOT scheme?

BOOT – “Build Own Operate Transfer”.

Of course John Key will hide behind Rodney to say that water privatisation is not water privatisation – he WOULD say that – wouldn’t he?


(I have 39 Councils replies to an OIA request – who have made it quite clear that neither THEY nor the public in those Council areas have pushed for this ‘increased flexibility’ in contracting arrangements.)

Whose interests do Local Government NZ represent?

Councils and ratepayers – or multinational water companies?

1. Local Government New Zealand

Welcome to Local Government New Zealand – the organisation that represents the national interests of councils of New Zealand. … – Cached – Similar

Welcome to Local Government New Zealand – the organisation that represents the national interests of councils of New Zealand. As the champion of best practice in the local government sector, we provide policy, advice and training to councils.”

What facts and evidence are Local Government NZ relying upon, which support the ‘contracting out’ or use of PPPs as ‘best practice’ in the Local Government Sector?


For extensive international research on privatisation – especially water privatisation – check out:

“PSIRU researches the privatisation and restructuring of public services around the world, with special focus on water, energy, waste management, and healthcare. It produces reports and maintains an extensive database on the multinational companies involved. This core database and website are financed by Public Services International (PSI), the global confederation of public service trade unions.”

If you want any further information – please do not hesitate to contact me.

Penny Bright

Media Spokesperson

Water Pressure Group

Judicially recognised ‘Public Watchdog’ on Metrowater, water and Auckland regional governance matters.

“Anti-corruption campaigner”

Ph (09) 846 9825

021 211 4 127


May 4, 2010 - Posted by | Fighting water privatisation in NZ

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