Letter to Mayors:

Dear

The New Zealand Government is currently engaged in negotiations at the World Trade Organization to extend the free trade agreement on services known as the General Agreement on Trade in Services (GATS). It is due to table its offer to commit further services to these rules in Geneva on 31 March 2003.

This agreement has serious implications for the ability of local government to choose how it meets the needs of our community. Despite this fact, consultation with local government when the original agreement was signed in 1994, and again now, has been minimal. The Government issued a technically worded consultation document on the current negotiations on 30 January, requiring a response by 28 February. This is simply not good enough.

The Christchurch City Council has prepared a carefully considered paper explaining the potential impacts of the GATS for local government, which is available on its website. On the basis of that paper, the Council in December 2002 resolved that:

“1. The Council write to the Minister for Trade Negotiations and the Minister of Local Government stating that:

(a) The Council believes that it is inappropriate that local authorities be constrained by an agreement to which local government is not a party.

(b) The Council believes public policy regarding the regulation, funding and provision of essential services should be made democratically by governments at the national and local level.

(c) That Council requests no restrictions be placed on local government’s rights regarding achieving social and environment ends in procurement.

(d) The Council requests that the Government support the clear exclusion of public services at central and local levels from the GATS, including local government community services, environment and water services.

(e) The Council requests that the Government oppose any proposals which would reduce the right of local government to regulate services, including the application of a "least trade restrictive" test to regulation.

(f) The Council requests that the Government seek to eliminate the ability of WTO trade rules to overturn nation-state laws and practices that protect health, the environment, development and human rights.

(g) The Council requests that the Government seek

(i) an amendment to the schedule, for example entering a reservation in the horizontal commitments to exclude local government; or

(ii) a carve out for local government by amending the GATS; or

(iii) an interpretation or clarifying declaration by WTO members that local governments are exempt from GATS.

(h) The Council requests that the Government commission an independent retrospective review on the WTO's impact on development, democracy, environmental sustainability, health, and human rights

2. That a copy of this report be forwarded to LGNZ and other local authorities for their information and possible action.

3. That LGNZ advocate to central government on behalf of local government regarding the above concerns.

4. That the report be referred to the Canterbury Employers’ Chamber of Commerce, the Canterbury Manufacturers’s Association and the Canterbury Development Corporation.”

Similar concerns have been expressed by the Australian National Local Government Association Conference, which passed a resolution in October 2002 asking for local government powers, funding and services to be excluded from the GATS and for consultation over current negotiations. Seventy Canadian Municipalities have made similar appeals through the Federation of Canadian Municipalities.

I understand that you have received a copy of the Christchurch City Council resolution and that you have also received a copy of Serving Whose Interests?, a comprehensive analysis of the GATS prepared by Professor Jane Kelsey for the Action Research and Education Network of Aotearoa (ARENA).

As a local resident I am concerned to know your response to these documents and to know what action your council has taken or proposes to take on this matter. In particular, I urge you to put this issue on the next Council agenda as a matter of the utmost urgency and demand that the Government takes no further steps in the GATS negotiations pending full and informed consultation with local government.

Please inform me of the Council’s position on this vitally important matter. If necessary, please treat this as an official information request.

Yours sincerely,