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Benefits to NZ

Economic benefits from ACC

For a small country, exposed to world shocks like rising oil prices, New Zealand gets many things right.  Take the ACC, for example.  It delivers economic benefit with real efficiency.  A 2008 PriceWaterhouseCoopers study found that ACC, “afforded New Zealand’s society and economy four decades of added economic and social value.”

The study also estimated a public, non-profit model “may be worth approximately $315 million per annum to the New Zealand economy” and “increased tourism activity.”  All for administration costs up to four times lower than Australia’s for profit model.

But in a small country, we can’t afford to let services like the ACC be sold off and provided for profit.  When foreign companies buy Kiwi public services, profits leave New Zealand as user fees go up.  That won’t help families already facing high mortgage rates, and hit hard by rising fuel and food prices.

Department of Conservation’s economic impact

Public services shouldn’t always be measured in dollars and cents.  Many, like probation officers, health scientists, mental health workers or victim support workers, help make New Zealand society fairer and safer.  But others have hidden economic benefits, too.

Take the Department of Conservation.  For many, it’s a part of Kiwi life and helps connect us with our natural beauty and protect it.   But for New Zealand’s tourism industry, DoC delivers economic benefits in all parts of the country.

In just the West Coast, $237 million in DoC spending created $220 million in tourism activity on DoC land—supporting 1,800 jobs, all contributing income tax and GST revenue.  The story is similar around New Zealand.  Making public services weaker doesn’t only hurt the people who rely on or provide them.  It hurts businesses and communities, too, right when they can afford it least.

Public services are valued

In 2007, more than 6,000 New Zealanders were asked their impressions of public services.  They were very satisfied with public sector workers and service levels:

75% said staff was competent; only 11% disagreed.

73% said people were treated fairly; only 9% disagreed.

And 66% were satisfied with the service; only 18% not.

These are among the world’s highest levels of satisfaction with public services.  It’s another good reason for this election to be about more than tax cuts, because money to pay for tax cuts needs to come from somewhere—like the public services New Zealanders value.

Authorised for the PSA by Brenda Pilott, 30 Prospect Tce., Johnsonville, Wellington

 

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