ONCE AGAIN, Prime Minister Christopher Luxon is talking about privatisation. In January this year, Green Party co-leader Chloe Swarbrick was demanding clarity from Luxon about his government's plans for privatisation, accusing him of 'publicly entertaining' the privatisation of public services and asset sales after previously saying it was not on his agenda. Luxon responded that Swarbrick was in 'a very dark and conspiratorial mood' and claimed there were no government plans for asset sales.
But with the general election drawing ever nearer, Luxon is clearing seeking a mandate to further sell off state assets.
The debate Christopher Luxon wants to open on further privatisation is not new. For decades, New Zealand has been told that selling off public assets would make them more efficient, competitive, and responsive to consumer needs. Yet the lived reality is starkly different: higher prices, declining service quality, and profits siphoned offshore. Privatisation has entrenched inequality, leaving ordinary households squeezed while corporations thrive. If we are serious about building an economy that works for everyone, the answer is not more privatisation but a decisive turn toward nationalisation of strategic sectors.
The banking sector is ripe for nationalisation. New Zealanders pay some of the highest fees and mortgage interest margins in the developed world. The big four banks—ANZ, ASB, BNZ, and Westpac—are all Australian-owned, extracting billions in profits annually and sending them across the Tasman. These profits are not reinvested in our communities; they are dividends for shareholders. A publicly owned banking sector, operating on a mandate of service rather than profit, could slash fees, offer affordable credit, and reinvest surpluses into local development. Imagine a banking system where mortgages are priced to ensure housing affordability, not to maximise shareholder returns. Nationalisation would mean financial institutions accountable to the public, not foreign boardrooms.
The energy sector tells a similar story. Electricity prices have soared since the wave of privatisations in the 1990s. Households now pay more for power than many comparable countries, despite New Zealand’s abundant renewable resources. Private energy companies prioritise dividends over affordability, leaving families struggling to heat their homes. A nationalised energy system could guarantee universal access to affordable electricity, accelerate investment in renewables, and reinvest profits into infrastructure rather than payouts. Energy is not a luxury—it is a basic necessity. Treating it as a commodity to be traded for profit has left too many New Zealanders in energy poverty. Public ownership would allow us to plan strategically, ensuring resilience against climate shocks and delivering lower prices through economies of scale.
Housing is perhaps the most urgent sector crying out for nationalisation. Decades of market-driven policy have produced a housing crisis of staggering proportions. Rents have skyrocketed, home ownership has plummeted, and speculative investment has distorted the market. Private developers build for profit, not for need, leaving thousands without secure housing. A nationalised housing programme could build affordable, high-quality homes at scale, prioritising people over speculation. By removing profit margins and land speculation from the equation, the state could deliver housing at cost, dramatically lowering rents and mortgage burdens. Housing is a human right, yet under privatisation it has become a speculative asset class. Nationalisation would restore its social function.
Critics will argue that nationalisation is inefficient, that the state cannot manage these sectors effectively. But this is a myth born of neoliberal ideology. Public ownership is not about bureaucratic control; it is about democratic accountability. When assets are publicly owned, citizens have a say in how they are run. Decisions can be made in the public interest, not dictated by profit motives. Efficiency should be measured not by shareholder returns but by social outcomes: affordable housing, accessible banking, and reliable energy. By that measure, privatisation has been a catastrophic failure.
Nationalisation also strengthens economic sovereignty. At present, New Zealand’s strategic sectors are dominated by foreign capital. This leaves us vulnerable to external shocks and dependent on decisions made overseas. Public ownership would keep wealth within the country, reinvesting surpluses into local communities and infrastructure. It would give us the tools to plan for long-term challenges like climate change, rather than leaving them to the whims of private markets. Sovereignty is not just about politics—it is about control over the economic levers that shape our lives.
For ordinary New Zealanders, the benefits are tangible. Lower prices for electricity, fairer rents, affordable mortgages, and reduced fees would ease the cost-of-living crisis. Public ownership would mean that profits are reinvested into schools, hospitals, and infrastructure rather than lining the pockets of foreign shareholders. It would mean stability in times of crisis, as the state can guarantee supply and affordability rather than leaving households at the mercy of market fluctuations. Most importantly, it would mean that essential services are treated as rights, not commodities.
Luxon is a man of little imagination and even less vision, and his call for more privatisation is a tired echo of failed policies. The evidence is clear: privatisation enriches the few and impoverishes the many. Nationalisation is not a radical idea—it is a practical solution to decades of market failure. Banking, energy, and housing are too important to be left to the market. They are the foundations of a decent life, and they must be run in the interests of the people.
We can continue down the path of privatisation, with higher prices, worsening inequality, and profits flowing offshore. Or we can reclaim our economy, nationalise strategic sectors, and build a system that serves ordinary New Zealanders. Nationalisation is not just an economic policy—it is a declaration that people matter more than profit. And it is the only way forward if we are serious about building a fair, resilient, and democratic New Zealand.
- but what is the financial cost of nationalisation; what must be paid to the current 'owners' of the assets; how do we finance that, and what is the effect upon our national accounts?
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ReplyDeleteThank you for a most interesting article!
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