Govt set for privatisation —union

Press, 28 August 1986, Page 4

Govt set for privatisation —union

PA Wellington The Government is gearing up to sell shares of a wide range of State enterprises to private shareholders, according to the Combined State Unions chairman, Mr Colin Hicks. The Bank of New Zealand was just the start of it all, he has said.

The BNZ model of issuing shares to the public could be followed for the Development Finance Corporation, Petrocorp, the Shipping Corporation, New Zealand Electricity, the Post Office, State Coal, Forestry, the Land Corporation, and Civil Aviation, he said. Mr Hicks said he was “particularly annoyed” that the policy change had been developed without prior public notification.

“It will have a dramatic effect on the character of New Zealand society and on )the quality of life in New Zealand,” he said.

State enterprises would start to pursue profits and service to people would be reduced. “Services will increasingly be supplied only to those who can afford to pay for them. The costs of postal, telephone and electricity services will go up to the individual consumer,” Mr Hicks said. What started out as a drive to so-called efficiency had now become a standard formula for private ownership.

“We are heading down a path that must end up with the complete privatisation of public resources. That will lead to higher unemployment and increased inequality in New Zealand,” he said.