Privatisation of services idea rejected

Press, 6 October 1987, Page 8

Privatisation of services idea rejected

By

PETER LUKE

political reporter The privatisation of existing welfare services was firmly rejected by the Minister of Social Welfare, Dr Cullen, last evening, ' But he hinted that he would welcome greater corporate assistance to voluntary welfare agencies. Dr Cullen said there would be very little change to the present position of the business community regarding social welfare. “My Government accepts that it has a funda-' mental responsibility to provide for the welfare needs of all New Zealanders, and there is no intention to reduce the range of services and responsibilities undertaken by the Department of Social Welfare,” he said. “We do not envisage a significantly greater role for private enterprise in the provision of those services." Dr Cullen’s comments came in an address last evening at an A.M.P. Society senior management seminar in Lower Hutt He also appeared to suggest that New Zealand businesses could follow an American example by giving greater assistance to voluntary welfare agencies. Dr Cullen said that by international standards the New Zealand business

community had a. relatively low level of voluntary agency involvement “In many other developed nations, welfare organisations are accustomed to a higher level of corporate sponsorship in donations of money and equipment" He pointed to a secondment programme run in Britain and the United States by 1.8. M. in which young executives were lent tor a . year to voluntary organisations. “LB.M. gains young executives with a greatly developed management ability, and voluntary groups gain young expertise they could not afford to pay the salaries for.” Dr Cullen has been at some pains in recent weeks to distinguish between the contract funding system for voluntary agencies and the contracting out of his department’s services to private contractors. The contract funding system was recommended by the social welfare task force to replace the present system of submissions and grants. Dr Cullen’s address last evening ended lingering doubts that he would allow private contractors to take over his department’s work. His reference to “services and responsibilities” also seemed to confirm his rejection of the idea that superannuation should be axed.