Labour’s ever-changing PPP positions
I read this Newsroom article to try and work out what Labour’s position on public-private partnerships is. It seems to be:
- Labour is open to supporting PPPs where they make commercial sense and where they align with our values of fairness, co-operation, and some form of public ownership/control of critical infrastructure. (Sep 24)
- “We support PPPs when they maintain some form of public ownership/control of critical infrastructure and align with Labour values of fairness and cooperation. A robust analysis that demonstrates long-term cost effectiveness and better value for public money must guide consideration of PPPs.” (Nov 24)
- Newsroom asked Labour leader Chris Hipkins about the party’s position on public-private partnerships. “I think the Government should be really upfront with New Zealand about what they’re considering hocking off,” he replied. (March 11 2025, am)
- Citing the potential cost of changing lightbulbs, or negotiating extra hours in the school hall, she said Labour would want to be “careful” about PPPs for these assets. “So those are the key boundary areas for Labour, that we are very, very careful when it comes to where the state has a duty of care.” In those areas where there is a duty of care, she said, then the Government should be paying “some” of the upfront capital – which rather implies that the private sector would pay the balance. (March 11 2025, pm)
- Newsroom was told that private ownership and operation of schools and hospitals were completely off the table for Labour. But where the financing and building of school, hospital and prison infrastructure by private companies had been agreed, Labour would consider it – so long as the deals met the criteria of not costing the taxpayer more in the long-term because the Crown had to be tenants in a public hospital. (March 13 2025, am)
- Labour did not support PPPs for prisons, she said. Nor did it support the private ownership of core infrastructure – for example schools, hospitals and prisons – which would only mean worse outcomes for Kiwis. (March 13 2025, 7 pm)
- The next Labour government will not support any step towards the private ownership or operation of our public hospitals, schools, prison or critical infrastructure. These are essential public services, and people expect their government to safeguard them for the benefit of all New Zealanders long into the future.” Note that, like McLellan, she did not rule out private involvement in the design, build, financing or maintenance of schools and hospitals. Just in any private ownership and operation. (March 14 2025, 11.10 am)
- Newstalk followed up: Do you mean you’re ruling out, in a public-private partnership, the building of it? “Both,” Edmonds said. “Both the capex and the opex.” (March 14 2025, 1.30 pm)
And it carries on. Not only does their position keep changing as unions lobby them, but they keep trying to conflate privatisation (sale of an asset) with a PPP (private sector funds and manages the asset for a limited time, ownership remains with government) and with just plain old private sector constructions (which we have had since the Ministry of Works was abolished).