Competition between SOEs untenable
Conflict between state-owned enterprises ASURE New Zealand Ltd and Agriquality New Zealand Ltd could compromise New
Zealand’s defence response to exotic disease outbreaks such as foot and mouth and anthrax, PSA national secretary
Richard Wagstaff said today.
“ASURE was established for the purposes of meat inspection and ensuring food safety, while Agriquality was set up for
testing and laboratory work. We now have a situation whereby ASURE is tendering for work which has traditionally been
the domain of Agriquality, and for which it does not have the requisite skills and resources to complete. “
“It is PSA’s concern that if these two government agencies are at loggerheads over their domains of work, they are not
in the best position to focus on responding to serious issues, such as exotic diseases outbreaks.”
Richard Wagstaff said he was aware that ASURE had recently contested for a tender for tuberculosis testing in livestock.
“If it is successful in its bid, ASURE will need to recruit staff to carry out the testing – probably from Agriquality
which, if it is losing work, will have to lay off staff. This will create discontinuity for staff, users of the service,
and the government as funders of the service.”
“Staff will have to go through the painful process of restructuring, with all the uncertainty and anxiety that brings
when, at the end of the day, they are remaining state sector employees. Restructuring and change need not be inherently
negative in themselves when the outcome is sensibly planned and enhances service delivery, but this exercise is not
going to achieve that.”
Richard Wagstaff said PSA was taking the matter up with the Minister for State-Owned Enterprises.