Lego,

I think you are confusing two issues: capitalism vs socialism on the one hand; and monopolies vs competitive markets on the other.

I do not dispute your claims of feather bedding in the government owned monopoly. And that featherbedding leads to inefficiencies and in turn higher retail prices.

I am disputing your implication that (a) featherbedding does not occur in private monopolies and (b) that even if featherbedding does not exist in private monopolies, that the savings (or efficiencies) gained by the new owners would be passed on to consumers.

This does not happen.

It is not in the monopolist’s interest to do so.

The regulatory system in place rewards owners with a return on assets.

You say “I [meaning Lego] know all about ENRON and what went on with that privately owned energy company in the USA. But the reform of the state owned Electricity industry is way past it's due”.

I agree. Reform is needed. A good deal of reform. But nowhere have I ever read that the best interest of the taxpayer is when “reform”= private monopoly.

I would argue that creating competition in a market where there is none is the best reform under the sun.

As to you statement that I am a “socialist”, that’s a new one for me. But thank you. I have been called “Tory”, “libertarian”, “anti-Labor” and some names that are not fit for a family friendly publication like OLO. Now apparently I am “socialist”.

Seems I am offending everyone equally.

Agmnostic of Wollongong,

>" particularly when its management, operating efficient and yield can always be improved by retaining public ownership but installing hard-nosed private sector management who’s remuneration is linked to achievement of commercial benchmarks."

But that is an enormous IF and it snot what happens in the real world over the long term. For example, governments appoint people to head the organisation that lean their way. Socialist leaning governments get into power and use the government owned organisation as a means to embed their ideological beliefs in the community. It's always been this way. Examples are the mass of climate change and carbon restrain programs the organisations were required to implement. And political correctness, no matter whether it is best for the economy Ii.e e best for everyone in the long term) or not. These are just a few examples. But really, government owned businesses like electricity, are no in the best interests of the community over the long term - at least not any more A century ago, the public sector could manage these business better than the private sector, just as they could telecommunications, mail, etc, But that's no the case now.