Public private partnership school costing taxpayers

Press Release – New Zealand Labour Party

The Governments experiment with public private partnerships in schools will end up costing taxpayers $1.5 million more than it claims it will save, says Chris Hipkins.Chris Hipkins
Acting Education Spokesperson

4 February 2013

Public private partnership school costing taxpayers

The Government’s experiment with public private partnerships in schools will end up costing taxpayers $1.5 million more than it claims it will save, says Chris Hipkins.

The Hobsonville Point Primary School which opened today was designed, built, financed and will be maintained by a private consortium.

“The Government claims it will save $2 million over the 25-year life of the contract by using the private sector. But to achieve these supposed savings, it spent $3.5 million developing the business case.

“Maybe maths isn’t Hekia Parata’s strongest subject, but most of the new entrants at Hobsonville Point would be able to tell her that 3.5 is bigger than 2. Her so called savings are actually costing taxpayers $1.5 million.

“And it gets worse. The Government’s also forking out $100,000 a year for a ‘Relationship Manager’ as part of the PPP pilot. Over the course of the 25-year contract that would add up to another $2.5 million.

“Then again, as this is Hekia Parata we are talking about, so perhaps this is all a result of a communication breakdown. Maybe when she is referring to PPPs, she is actually talking about pick-pocket partnerships – because taxpayers look to be the losers in this deal.

“Building public schools is the Government’s job, and Hekia Parata’s ideological experiment is a costly mistake,” says Chris Hipkins.

ENDS

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