New Zealand Fin Min: Potential To Use Private-Public Partnerships
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WELLINGTON -(Dow Jones)- New Zealand Finance Minister Bill English signaled
Wednesday he sees potential for greater private sector involvement in the
delivery of public services.
Speaking to an infrastructure development conference, English cited the
example of Australia which has extensively used public-private sector
partnerships.
"I can see the potential for wider application for these types of
disciplines."
The government has budgeted to increase infrastructure spending by NZ$7.5
billion over the next five years as part of its stimulus to try to extricate the
country from a long recession that began at the start of 2008.
It is under severe fiscal constraint, having committed to borrow an extra NZ$
40 billion over four years to help prop the economy.
English said the center right government, elected in November, was looking to
get the best value from services.
"To that end we are looking at how we can make greater use of private sector
expertise when there are clear benefits in doing so." English said the policy "
is not about ideology: Private sector involvement will only happen where it
makes sense."
Prisons will be one of the first areas where public-private partnerships are
considered, he said.
"There is a range of opportunities for more private sector participation in
prisons - from the current approach where input is limited to construction,
right through to designing, financing, building, maintaining and operating
facilities."
English said the increased infrastructure spending raised risks for the
government.
"From a taxpayer perspective, the fact that these risks exist is an argument
for, not against, some private sector involvement. The private sector generally
remains better at assessing and managing risks than the public sector."
But he said the government will enter in to PPPs only if they work and deliver
value for taxpayers.
-By Simon Louisson, Dow Jones Newswires; 64-4-471-5990; simon.louisson@
dowjones.com
(END) Dow Jones Newswires
08-11-091746ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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