Dear Friends

The Defend Public Health Committee of Newcastle Trades Hall Council has been involved in a campaign to stop the redevelopment of the Mater hospital from being built and operated by private enterprise.

The Mater Hospital is currently a schedule 3 Hospital, ie fully funded by the State Government as it has been for a significant amount of years.

Public Private Partnerships are where the private sector builds and operates a facility on behalf of the Government for a period of between 25 – 28 years.

This has been explained in a very simple and patronising manner as “the same as having a mortgage on your own home” Prof McGrath, CEO Hunter Area Health

The difference is the current rates for a mortgage are around 5%, less for a Government, the returns expected by private enterprise for a Public Private Partnership is double digit figures.

Anecdotal evidence suggests this to be between 15 – 25%.

This clearly means that we, the NSW taxpayers pay at least 3 – 5 times more for our Public Health System.

The obsession of the NSW Government for Public Private Partnerships is driven by the unrealistic vision of nil government debt.

This short sighted policy will deliver massive increases in long term Government debt which will have to be paid for by our children and grandchildren.

Major health projects in Sydney have been paid for by Government funds but we in the Hunter again become the guinea pigs for unacceptable Government policy.

I feel very uncomfortable in handing over control of the biggest Oncology Hospital in NSW to private interests whose only motive is to maximise profit.

I urge you to become part of the Defend Public Health Committee to save the Mater and sign the pledge below either as an individual or on behalf or your organisation.

If you wish to discuss this matter or become involved in the campaign please contact me on 02-49291162 or 0438 550 508.

Gary Kennedy Convener

Newcastle Trades Hall Council’s

Defend Public Health Committee

3/2/04

More Information on the

Mater Campaign? and the

Defend Public Health Committee

DON'T PRIVATISE OUR PUBLIC HEALTH SYSTEM

WE WHOSE NAMES APPEAR BELOW, DECLARE ON BEHALF OF OUR ORGANISATIONS THAT:

• Our Health Services should remain public.

• The NSW Health Department and Hunter Health's proposal to develop the Mater and James Fletcher public hospitals and install two new linear accelerators by using a Private Public Partnership (PPP) will virtually privatise these vital sectors of our public health system.

• The record of PPPs in the operation of social infrastructure, both in Australia and the UK, indicates that services, bed numbers and efficiency would be seriously degraded.

• Previous experience indicates that under PPP, the contractors supplying ancillary services will cut jobs, introduce inferior working conditions and enforce unsustainable work practices.

• Finance costs for the proposed PPP will be much greater than those that a conventional government-run development would incur.

• A PPP will have to generate a substantial profit to satisfy its shareholders. NSW taxpayers would be forced to pay for this private profit.

• Such excessive payments to contractors will reduce the government's capacity to fund other essential services.

• The government would lose control over assets and services for the duration of the contract, which could be up to 28 years.

• The contract could be sold to another private sector organization or the facility could be allowed to run down in order to maintain profit margins.

• Union representatives, community groups and professionals, should be allowed to examine any evidence or correspondence from Hunter Area Health and the KPMG feasibility report should be released for public scrutiny, and the veil of secrecy should be lifted to allow open debate in the community on the redevelopment plans.

• The people of Newcastle, who were promised in 2000 that $80 million were set aside for the redevelopment of the Mater Hospital, have been treated with contempt.

• Until the NSW government and Hunter Health reverse their decision on the Mater, we call upon our members to support the campaign that has been initiated by the Newcastle Trades Hall Council’s Defend Public Health Committee.

I/WE__________________________________________________________________________

ORGANISATION:_______________________________________________________________

SUPPORT THE ABOVE DECLARATION:

Sign_______________________________________________DATE_______________________

Dowload support declaration

PLEASE RETURN COMPLETED PLEDGES EITHER BY E-MAIL TO gary@newtradeshall.com OR FAX TO 02-4926 1177