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The Forum > Article Comments > A privatised monopoly is still a monopoly, and consumers pay the price > Comments

A privatised monopoly is still a monopoly, and consumers pay the price : Comments

By Stephen King, published 25/6/2014

Moving a business from state-ownership to private-ownership improves the profit incentive. Private owners will focus on their return. That means lower costs, higher prices and increased profit.

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This is a very old fight that goes back to the mid-20th century (and beyond) and the struggle between the post-war Labor government, who favoured people's-owned enterprises, and the powerful figures in Australian private industry - Reg Ansett, Keith Packer, Peter Abels, Frank Packer, Arthur Coles and of course Rupert Murdoch.

No prizes for guessing which side the Menzies government was on. Also no prizes for guessing which side the media took - and still takes to this day.

As these tycoons were building their empires, they could not stand the fact that the often much more efficiently managed and profitable government enterprises stifled their market share. A truce of sorts operated for a while under the duopoly system (e.g. TAA-Ansett ANA, SGIO-AMP, Commonwealth Bank-Bank of New South Wales), but by the 1980s the privateers had won. This was greatly helped by the fact that Bob Hawke was best mates with most of them.

Although there are many very good arguments against privatisation (several of them in the comments above), indeed plenty of evidence to show it's been an unmitigated disaster, the sad fact is that logic, evidence and history are no match for the power, wealth and cultural influence of the privateers.
Posted by Killarney, Wednesday, 25 June 2014 7:19:19 PM
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Correction to post above: The name 'Keith Packer' shouldn't be there. I just keyed the wrong name and forgot to delete before posting.
Posted by Killarney, Wednesday, 25 June 2014 7:22:58 PM
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give a modicum of actual evidence
Rhosty,
this is just one of the many links on the subject but it is better to correspond with people from other countries or even travel there to find out how things work where people aren't so money obsessed as here. Talk to tourists, there are many things you can do to find out, all you need is an open mind & not get pi$$ed off when you come across people not as greedy & self-centered as here.
Looking up cultures is another good way of learning. I recall a documentary on some german companies which did very well by staying as a family business rather than having shareholders. No hangers-on to feed lets you keep operating costs down.

http://books.google.com.au/books?id=kBMuSdPpLXkC&pg=PA85&lpg=PA85&dq=examples+of+successful+privatization+in+europe&source=bl&ots=HRIG5g-Woj&sig=GG4KAOT6b4fZkjshTm3_0gbmBnk&hl=en&sa=X&ei=FJaqU_W2PMnUkwXMjoGAAQ&ved=0CFsQ6AEwBw#v=onepage&q=examples%20of%20successful%20privatization%20in%20europe&f=false
Posted by individual, Wednesday, 25 June 2014 7:40:21 PM
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IM MINDED/nsw\GOVT HAS ONE BILLION..to spenD
ON THE NEXT INFASTRUCTURE SALE..cause it just sold the powr generators off[that that carbon credit/money was used..TO ABATE/AND THAT NOW COAL WILL BE shut down[to get its next carbon credit/YOU WILL SOON WATCH THIS GRANDSCAM UNWIND

i try TO IGNORE THESE FOOLS
but..PLEASE NOTE..THE COST OF COAL[BEFORE YOU GUYS BEgan screwing them and shutting theM DOWN[OR THE FUTURE CARBON CREIT PRICED COAl

THING IS..THEse..fools..DONT REALISE WHY THEY ARE GETTING NEAR 4 TIMES THE COal price generated powER PRICES[THE EXPECTATION IS THAT keep doubling up the price of coal/and 55 cents buy back will look cheap

how to say..[nay demand/thEY INCLUDE PRICES/WHEN THE PRICE PARITY
FINALY SETTLES..TRIPPLE THE COST TODAY.

RELitivly speaking..55 cent buy back mob wiLL THEM BEGIN TO FEEL AS WE WHO GAVE THEM THeir free lunch feel today[SURE WAY BACK..IF MY POWER BILLS WERE the same..in a tyear as free solar cells/i too [as a huge user abuser/POWeR USER[IF SO THEN YES I WOULD TOO HAVE SNAFLED UP 55 CENTS extortion fron everyone else

i now seE THOSE FACTORY ROVES/AND Rooves on them semii private public buILDINGS AS A WAY TO DO A HUGE CASH CRAB FOR THE ARTS/AND SPORT STADIUMS/OFF SETTING THEIR HUGe powr costs/of my full rice power bill

you scum are doing treason
how dare you lot keep pronising[all rEADY MY POWRR RATE HAS DOUBLED
CODE RADS COAL .SOLAR PARITY[SURE/but at what cost?..who is gETTING THE BIG BUCKS BY THE HECTARE?..audit their boOKS[I HEAR SOME ARE TAKING OFF peak..at 11 cents/to charge up solar cells/by lights/to sell back at 55 cents/24/7..MINUS THe two hours off peak shuts off.

GREAT ENRON SCAMING
http://www.washingtonsblog.com/2014/05/enron-2-0-wall-street-wants-manipulate-state-energy-markets-just-like-manipulates-every-market.html

AHH YA GOTTA LOVE NEST FEATHERING
NOW HOW..TO/JUSt get the coal price up..TILL 55 CENTS LOOKS CHEAPER

YOUR GREAT GRANDkids will reap the pain
done by fear mongering spin/of big money down the drain.
THIUNK WHAT OUR POWER EXPENDITURE USED TO SUPPORT/NO MORE FAMILY TREats/thanks to you greenie freaks.

your scam MUST/die/your EXCESS IS KILLING US/ALL
YOUR IGNORANCE/Gullability\is endangering us all
Posted by one under god, Thursday, 26 June 2014 8:06:47 AM
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Monopoly both ways but what about the separation of powers. State owned has the Regulator in same bed as the Provider whereas private hands provides a separation of economic from political / coercive powers. Now with State Monopoly supply even if you use all tank water and cut off the connection you still have to pay for "ACCESS" to it, don't use it but still pay. Sell the Poles and use it to improve NSW, private suppliers will be asses from time to time but bad transport and other fundamental infrastructure is bad ALL the time.
Posted by McCackie, Friday, 27 June 2014 9:18:39 AM
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