I've had enough of scheming and messing around with jerks
My car is parked outside, I'm afraid it doesn't work
I'm looking for a partner, someone who gets things fixed
Ask yourself this question, do you want to be rich?
I've got the brains, you've got the looks
Let's make lots of money
You've got the brawn, I've got the brains
Songwriters: Neil Tennant / Christopher Lowe
The neoliberal dream.
Failing public services, a frustrated population that loses confidence in the state's ability to deliver, and an acceptance that the private sector might need to help.
It’s what we lefties warn our children of as storm clouds gather. The money men are coming for Health, Education, Electricity, Water, and no doubt, at some point, the very air we breathe. Not to make things better but to deliver the lowest quality possible for the highest price achievable - ahh, don’t you love the smell of commerce in the morning?
But we’re just being paranoid, right? They wouldn’t really start selling off our Health System? It’s not only a dastardly thing to do, but it makes no economic sense.
The only thing the private sector can bring to the table is money. It can finance huge projects and spread the cost over time—for a fee. This is pretty appealing if you’re a government and you want to be seen to deliver without worrying too much about the long-term cost.
It’s like using a payday loan company to buy a major asset. It is immediately satisfying, no doubt. You get this thing you couldn’t really afford. But if you look closely you’ll realise you’re paying an exorbitant amount of money for the privilege of spending now and paying later.
But here’s the thing - Governments have really good access to financing. They can borrow money at much lower rates than a private investor would consider an acceptable rate of return. It’s like having access to a low-interest revolving credit facility but choosing to slap everything on the credit card instead.
So, although I worried it was coming, I was still quite surprised last night when 1 News spoke of an organisation promoting the idea. Not some multi-national investment firm, not the government—but Health NZ? What the heck is going on?
Keep reading with a 7-day free trial
Subscribe to Nick's Kōrero to keep reading this post and get 7 days of free access to the full post archives.