FOR IMMEDIATE RELEASE:

FOR IMMEDIATE RELEASE April 27, 2001

Contact: Rep. Barbara Marumoto Tel.: [phone]

GOP Says Privatization Bill Not Real Reform

House Republicans said today that the bill allowing both privatization and managed competition shows the democrats' unwillingness to address real government reform because it sets privatization up for failure.

SB 1096 allows privatization but also repeals it in 2007, while leaving the managed competition section untouched. "If they say this is reform, why is there a repeal date and only on the privatizing of government services. Why is managed competition protected?" asked Barbara Marumoto (R-Waialae, Kahala). "This sets it up privatization for failure because no business would be willing to make an investment knowing this law will be repealed."

The bills allows for private services if they can be provided at a lower cost and the level of service is the same or better than government can provide. It also allows the option of managed competition, which gives the unions a chance to compete with the private sector.

"The concept of privatization is pretty simple--if you see it from the public's point of view," said Marumoto. "Providing better service at a lower cost is something government should be doing automatically. It's also something government should be allowed to do on a permanent basis."

Republicans have been fighting for the right of government to privatize for years, Marumoto said. "Coming into this session the democrats had to show progress on some fronts and privatization was one of them. With the election of seven new republicans, they knew the public wanted change. While this is an attempt at privatization, it's not truthful to call it 'reform'."

-30-

2