Managing public opinion -
ASSISTING LOCAL GOVERNMENT WITH A PRIVATISATION ISSUE
THE SITUATION
A Provincial District Council, having created a L.A.T.E. (Local Authority Trading Enterprise) from one of its Council operations, decided to go one step further and sell it on the open market. As this was the first such transaction attempted and because the Council had been receiving negative publicity about it's handling of other matters from various sectors of the community, they asked Crabtree Associates to recommend a communications strategy.
THE PROGRAMME
The consultancy reviewed all Council documentation relevant to setting up the LATE and issues affecting its operation since formation. After identifying the key audiences, we posed a series of questions to Council officers to elicit their response to issues likely to be seen as critical in the public arena.
Rob Crabtree met with the Council sub-committee, the sale agent (a large New Zealand accountancy firm) and Council officers to discuss these issues and recommended a programme of activity to facilitate a smooth sale process.
This included: the need to avoid any adverse media reaction to the sale, which may affect the final sale price; a full briefing for management and staff of the operation, as well as Union representatives; briefings with two key news reporters on the reasons for the sale and the process to achieve it; meetings with the Chamber of Commerce and Federated Farmers; news releases and an article published in the Council's own newsletter to ratepayers, specifically reassuring the elderly that services would be maintained and encouraging public debate on the issue; and a briefing for the full elected Council regarding privatisation of the operation and its impact. We recommended monitoring public response throughout and being ready to alter the strategy if necessary.
THE RESULTS
The LATE was advertised for sale and attracted 12 early bids. The Chamber of Commerce and Federated Farmers came out strongly in support of the sale. A 'leaked' confidential report to the media, containing recommendations regarding the sale, did not impact negatively. Due diligence was eventually undertaken by three bidders. Morale was maintained among the work force as they were kept up to date with progress. At a full meeting, Council voted unanimously to sell the LATE. The Mayor reassured ratepayers that services would continue through the contract process. Public consultation undertaken as part of the sale process produced no strong objections. The LATE was sold for a price well within the upper range of expectations when the sale was first investigated.