7. ALLAN PEACHEY (National—Tāmaki) Link to this
to the Minister for Infrastructure
What progress is the Government making with its multibillion-dollar infrastructure programme?
Hon BILL ENGLISH (Minister for Infrastructure) Link to this
Good progress, while supporting thousands of jobs across New Zealand and helping the economy to grow faster. Today the Government announced that it would take the next steps towards a public-private partnership for building and maintaining some new schools. If the proposal proceeds, the school land would be owned by the Government, and the boards of trustees would remain wholly in charge of the governance and day-to-day running of the schools. Officials will now prepare a stage two business case, which will include a decision on specific schools. The tender process could start early next year, subject to Cabinet approval.
Why is the Government considering public-private partnerships for building and maintaining some new schools?
The Government manages over $200 billion worth of assets on behalf of the taxpayer, and we are willing to make use of any tool that will help us to do that. Public-private partnerships are proven internationally as a tool that can make a positive difference to the use of taxpayers’ assets. In April the Government announced that it intends to commission a new prison at Wiri, to be built and operated under a public-private partnership. Post-implementation reviews of public-private partnerships overseas have found that often there is better financial risk management and better operational risk management, and, in the case of schools, sometimes higher educational achievement.
Hon David ParkerActually, it does not, because the public-private partnerships stay on the Government’s books, and the member would know that if he knew what he was talking about. The main benefit is that—
Mr SPEAKERThe member should do his homework; it stays on the Government’s books. The main benefit is that, potentially, principals and boards of trustees can get on with teaching without worrying about maintaining school property. But the Government is progressing cautiously in this area. The second-stage business case will be an opportunity to ascertain just what benefits there would be to principals and boards of trustees, as well as what benefits there might be to the Government and, ultimately, of course, to the New Zealand children who are educated in these schools.