Qld unions sound caution on PPPs

Date: 18 May 2004

An address to the 4th Annual Public Private Partnerships Summit today by QCU Assistant General Secretary Chris Barrett reiterates the union movement's opposition to the use of PPPs to provide public infrastructure in Queensland.

Queensland unions have again warned against the use of Public Private Partnerships (PPPs) to provide public infrastructure in Queensland.

Speaking at the Fourth Annual Public Private Partnerships Summit at the Hilton Hotel today, QCU Assistant General Secretary Chris Barrett said there was no argument that Queensland was behind in infrastructure spending but there was an argument about how much spending could be addressed.

"The union movement firmly favours the normal government procurement approach to providing infrastructure such as schools, hospitals, TAFE colleges and other areas where the provision of infrastructure involves the delivery of public services."

Mr Barrett said that unions had a range of concerns regarding PPPs however three key areas were highlighted in his address to the Summit participants.

"First is the contention that whatever risk may be transferred between the government and the private partner for the purposes of costing and the construction of a project, the ultimate risk lies with the general public and the government of the day.

"That is the risk of private partner failure leading to the ceasing or delay of the provision of services and/or the escalation of costs associated with the service to the public and government."

Mr Barrett cited examples from overseas where user-pay costs to the public had escalated on PPP projects and at home attention was drawn to the government bail-out of the Robina Hospital.

"Unbudgeted government outlays had to be found to continue the Robina Hospital operations due to the private partner walking away after only a few years of running the project.

"Industrial relations matters are also a cause for concern such as labour price pressures appearing in public sector areas where a PPP blends public and private workers on particular projects and expected disputation as workers seek to bargain to equalise wages and conditions with the public sector workers."

The QCU outlined a range of alternatives to PPPs to address the infrastructure deficit in Queensland which included modest borrowing by a cash rich but asset poor state government and the introduction of infrastructure bonds.

The QCU is available to discuss each of the concerns raised and is heartened by the comments by Minister McGrady that the concerns of unions will be listened to.

"We await further opportunities to put our point across," said Mr Barrett.

For further information

Contact:	Tania Reeves
Union:	Queensland Council of Unions
Phone:	07 3846 2468
Email:	Taniar@qcu.asn.au
WWW:	http://www.qcu.asn.au

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