Warning on ‘rip-offs’

Press, 12 June 1987, Page 3

Warning on ‘rip-offs’

Wellington reporter Treasury recommendations to monitor .Stateowned enterprises would not stop the consumer being “ripped off,” said National’s spokesman on State corporations, Mr lan McLean, yesterday. He said the Treasury report specifically excluded monitoring of the effect of State . monopolies on consumers or competitors.;, It provides for shareholding Ministers and the Minister of Finance .to be able to monitor

State enterprises. Separate monitoring of corporations with monoI polies (such as Electrir corp) is suggested on be1 half of consumers or i competitors, but this is r not detailed in the report. / Mr McLean said even good monitoring did not » necessarily bring countability. i. ■;£ r “For example, New Zealand monitors French nuclear tests in the Paci--1 fic, but has no way to i make. France accountr able,” he said.

“Nothing in the report will make State corporations more accountable to the people or to Parliament.” • He said the report i noted that the latest. attempts overseas to make State enterprises work i have-not yet succeeded, t Mr McLean said ■ National’s of privatisation would achieve r real accountability and i efficiency. His comments were > later endorsed by the • Leader of the Opposition, Mr Bolger, who said the

Treasury monitoring proposals were farcical. The idea of bureaucrats having access to monthly board meetings of State enterprises was pointed to by Mr Bolger as indicating a lack of independence. “Either those directors have the competence to run those State enterprises or they' don’t” He suggested the Treasury proposals meant the enterprises would have “Big Brother” keeping a watching brief.