Act leader David Seymour expected to blow open privatisation debate

Act leader David Seymour will speak in Auckland on Friday. NZME photograph by Mark Mitchell

Act leader David Seymour is today expected to blow open what will likely be a controversial public debate on privatisation.

The Herald understands Seymour will use his State of the Nation speech in Auckland on Friday to suggest New Zealand needs to move past squeamishness about privatisation and consider whether taxpayers are getting bang for their buck from government services and assets.

He’s expected to ask whether New Zealanders should consider if the Government is making the best use of its assets. If not, Seymour would suggest selling them.

Act leader David Seymour will speak in Auckland on Friday. Photo / Mark Mitchell

The concept of privatisation is understood to be part of a wider theme in Seymour’s speech about tough times requiring tough choices. He also believes the country can’t just wait around for change.

Any suggestion of privatisation will cause concern in some quarters.

But Seymour’s expected to argue there’s a greater need for government capital in building core infrastructure.

The rising cost of services like health, which has jumped from costing about $20 billion in the 2020/21 year to nearly $30b (about $6000 per citizen) in the current year, is also likely to be highlighted.

It’s expected Seymour will question whether Kiwis should have the option to give up their right to the public healthcare system and take their $6000 for their own private insurance.

A similar argument will likely be made about education. Act previously campaigned on what it called Student Education Accounts, which would give parents a choice about how to fund their children’s education.

Under that policy, the money the Government currently spends on education would be distributed across the students’ accounts. Parents would be able to see the balance of funding available and then choose how to fund their children’s education.

Healthcare is getting more expensive. Photo / 123rf

Last November, Health Minister Shane Reti said he was interested in working more closely with the private sector to fulfil the Government’s goal of cutting waiting lists. But he said privatisation was not his “overt policy”.

Prime Minister Christopher Luxon has previously ruled out asset sales this term, including this week when asked about his vision for generating greater economic growth.

“We’ve made a commitment for this term, that’s not something that we’re looking at,” he told Newstalk ZB.

Health Minister Shane Reti has said privitisation isn't his "overt policy". Photo / Mike Scott.

Seymour’s speech would have caught attention even without the mention of privatisation. He’s delivering it on the same day as the annual Rātana celebrations, which are being attended by every party bar Act.

The Act leader has always been opposed to needing to make the trek to Rātana, though it’s likely his Treaty Principles Bill will be the focus of many conversations there this year.

Jamie Ensor is a political reporter in the NZ Herald press gallery team based at Parliament. He was previously a TV reporter and digital producer in the Newshub press gallery office.