Privatization Services in the Sate of NJ

Privatization Meets Strong Resistance in New Jersey
Diverse Coalition Formed to Fight Damaging Effects of Privatizationhttp://www.nj-cop.com

Trenton, NJ: In an unprecedented show of unity, a diverse group of organizations representing consumers, tenants, workers, ethnic communities, community groups and environmentalists took a unified stand against the rush to privatize everything from parks to parking lots in NJ with announcement of the NJ Coalition on Privatization.

“Our organizations are standing side by side with a shared concern that privatization contracts are perpetuating corruption and adversely impacting taxpayers and ratepayers, service quality, jobs and the environment,” said Jim Walsh, NJ Director, Food & Water Watch and Spokesperson for NJ Coalition on Privatization.

Privatization of government services is something that is gaining more and more attention as budget shortfalls push state, county and municipal governments to seek remedies to structural budget deficits.

“Privatization contracts can have unintended consequences, which can leave communities worse off than they were before the privatization took place,” said Frank Argote-Freyre, President, Latino Action Network. These contracts can disproportionately hurt people of limited incomes," added Argote-Freyre.

“Turning public services over to private entities is always a gamble, said Joanne O’Neill, State Coordinator, Progressive Democrats of New Jersey. “Although most claim to be cost cutting, the privatization of government services has rarely delivered on its promise. In study after study, it has been shown there was very little, if any gain and in most cases the public suffers substantial losses,” added O’Neill.

After residents saw their water bills double or triple following a water privatization contract, North Brunswick, NJ took back public control of their water system, saving rate payers $140,000 per year.

“There is no reason to believe that private contractors will do a better job than the public sector”, said Matt Shapiro, NJ Tenants Organization. Lack of public accountability, coupled with profit motive, can foster an environment where abuse and corruption can grow.”

“With privatization we see higher costs, worse services, and at times threats to public health and safety. It is bad for the consumer and for the environment.” said Jeff Tittel, Director of NJ Sierra Club. “Many of the companies care more about their shareholders than the public they are suppose to serve. The word privateer comes from privatization which is just another name for a pirate.”

Last week the Assembly State Government Committee heard testimony on ACR150/SCR131, legislation introduced by Senator Rice and Assemblyman Barns that would allow New Jersey voters to determine an amendment to the state constitution that would set minimum standards and procedures regarding certain contracts to privatize public services.

“This legislation will help protect communities from damaging privatization contracts and help ensure public assets and services are managed for the public good, rather than for private gain, said Senator Rice.”

"This legislation does not eliminate the privatization of services, it simply places safeguards to guarantee the public receives the same quality of services that they have grown to expect" said Assemblyman Peter J. Barnes III (D-Edison). "We cannot allow private companies to charge us premium prices for mediocre services," added Barnes.

In addition to working to enact protections for communities from privatization, the coalition plans to educate the public about the negative aspects and broad impacts privatization can have on our communities.

Speaker Oliver Weighs in on Privatization of State Services 2/14/11

(TRENTON) – Assembly Speaker Sheila Y. Oliver today offered her support to the Coalition on Privatization, stressing the need to proceed with caution when it comes to privatizing state services.

“We’ve seen many instances in the past where privatization of various state functions was rushed into blindly without a full understanding of how it would impact the delivery of services, the workers involved in the operations or the long-term costs to the state.

“Often times these agreements only deliver short-term cost savings but long-term damages to the delivery of services offered to taxpayers. In many instances, lower wage earners are the ones who suffer when their jobs are eliminated or replaced.

“Any privatization arrangement should be conducted under a microscope with a full cost analysis that demonstrates how savings would be achieved without increased fees, substantially reduced workforces, or lower standards of service or workplace safety. Only then would it truly benefit the taxpayers of New Jersey.

“Otherwise, it would simply be a short-term gimmick to plug a budget hole, one that could have disastrous long-term effects.”