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Council urges firm stand on Gats deal

WEDNESDAY, 18 DECEMBER 2002

 

The Christchurch City Council is urging the Government not to sign away local councils’ rights to decide on how essential services are provided.  The council, like many other local bodies in New Zealand, is concerned about how the Government is handing the General Agreement on Trade in Services (Gats).

Promoted by the World Trade Organization and signed in 1994, Gats aims to remove government regulations which are regarded as “unnecessary barriers” to trade and inherently anti-competitive.

It applies to 160 service sectors, many of which are the responsibility, directly or indirectly, of local government.

Signatory governments are being encouraged to increase the range of services covered by the deal.

According to a report discussed at the city council’s monthly meeting, the Gats’ aim of getting a “progressively higher level of liberalization” in the service sector could cover water and sewerage, waste management, zoning regulations, and library and other community services such as child care.

Council strategy and finance committee chairman Alister James said that as new sectors were added to the Gats agreement, the Government could limit the amount of access overseas providers had.

“But all limits and exceptions must be set when a country initially offers a sector,” he said.

“After that, you can only get new limits if you negotiate compensation with all the countries which have a right to enter that market.

“That would be virtually impossible, so it’s really important to get it right before a sector becomes part of Gats.”

The council wants the Government to take another look at the way World Trade Organization deals have been working so far.

It says it is wrong that local government has not had a chance to influence the talks and how they are being approached.