Coddington Deborah: Public Finance (State Sector Management) Bill — In Committee 
Coddington Deborah: Public Finance (State Sector Management) Bill — In Committee 
[Volume:622;Page:17932] 
DEBORAH CODDINGTON (ACT) 
: 
 I would like to follow on from what Dr Lockwood Smith was saying on Part 8 because he is right. The implications of section 8(2) in clause 238 are important for the future in terms of what it does and what it drives. I would say that this is being driven by the unions. Dr Lockwood Smith failed to mention another really important State-owned enterprise New Zealand Post Ltd. In 1986 the Lange-Douglas Government made a big mistake with State-owned enterprises in that it did not sell them. They were only ever set up as a halfway house as an interim measure to restructure old Government departments that were costing the taxpayers billions of dollars and turn them into successful commercial enterprises so they could be sold with maximum return to those taxpayers. Most of that money was used to reduce debt. We had crippling debt. We sold off those State-owned enterprises privatising them and reducing masses of debt in the process. Unfortunately we did not sell off enough of them. We did not sell off New Zealand Post or Television New Zealand. 
Look at what has happened to Television New Zealand since the Government started meddling in its affairs and appointing its boards. In 1999-2000 Television New Zealand was still a successful company returning a profit of $68 million I think it was. Governments have used Crown entities as cash cows sucking the money out of them to the extent now that the current Government is propping them up again with taxpayers’ money. What a crime it is that such a successful company returning such a good profit is now reduced to going to the Government cap in hand to grovel for more taxpayers’ money. 
We will very soon again be amending the State-Owned Enterprises Act. When more legislation comes into force—when more labour and employment legislation that brings back de facto compulsory unionism gets the royal assent—we will see more amendments. This will be seen as being a way to boost unions like the Public Service Association which has suffered hugely in terms of its members voting with their feet. So what do we do when we bring in State-owned enterprises like Meridian Energy Ltd Solid Energy New Zealand Ltd and New Zealand Post Ltd? We reduce hugely the ability of those commercial enterprises to compete in the market. They will be trying to compete with their hands tied behind their backs in terms of directives from the Government about what they can do regarding employment relations and collective agreements. 
Let us face it under this Government the only way employment agreements will be allowed to operate is as collective agreements. We will see the end of individual agreements because under this Government employees are deemed insufficiently capable of negotiating their own agreements with their own employers. They have to go into a collective agreement and because of the patronising attitude this Government has they must have a union representative to negotiate that for them. 
Lockwood Smith was quite right. The State Services Commission is a lackey of the Government. Under this Government the State Services Commissioner will have to have his or her say on every collective agreement under the Employment Relations Act that any State-owned enterprise enters into. We have already seen the implications in terms of directives to public servants and employment opportunities for Maori. Pacific people are totally excluded. They do not matter obviously in the public service. I suppose they are generally included under ethnic minorities. This is the start of the slippery slope. Next will be the private sector.