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Political reformation : Comments
By Everald Compton, published 27/7/2017Clearly, it is long overdue to reform Australian politics and voters are now in a mood to take a huge hit at a complacent Establishment which is serving us badly.
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Lastly, your simple example: "Just as one example, look at the school halls roll out and then try to understand, if that's possible? Why the same hall rolled out by a, so called, state administration. Sometimes cost 30% more than the same hall, financed by private schools."
It doesn't matter which level of government paid for the hall it will always cost more than a private construction. There various reasons for this:
- Some of it is due to the fact for a government to do anything requires a lot more time and work to get it approved and budgeted.
- Some is due to the fact that those bidding and quoting for a government project (of any of the federal/state/local bodies) requires alot more paper work and stuffing around such as complying with stricter environmental/social/heritage etc.. requirements than private builds.
- Some of it is due to the fact governments in general like to spend big and have ostentatious grandiose costs involved (eg: such as having artists commissioned for painting/sculptural features).
- And lastly some of it is due to the fact that contractors add in a government bid factor, ie: they just quote more than they would for private jobs simply because it is a governement paying for it (a bit like it cost more to build a house in a wealthy suburb than a poor one or it costs more for lawyers to do a an office fit-out than it does for a charity to fitout the headoffice: as-an-aside, according to classical economics this shouldn't happen but it certainly does which shows that classical economics doesn't always work).