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The contractual deficit and the future of governance : Comments
By Tom Balen, published 9/1/2006Tom Balen argues we expect too much from government and give little in return. The next five years will change that.
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Local proselytes of flat earth clap trap like our own Institute of Public Affairs still struggle with concepts such as climate change. Meanwhile, the state government is struggling with the environmental management of some of the worlds dirtiest power plants and the question of demand management in a situation where it makes perfectly good sense for the now fragmented, privately owned generators to burn more coal in a competitive market that some would argue is selling power to cheap by ducking out on externalities.
If one can run trucks or build planes, why not run hospitals, prisons and public transport?
We have done P.P.P's in Victoria. Many ended in substanstial Contractual Deficit and selfish parties to the Contract (taxpayers) footed the bill. Most recently it was with rail. Fortunately, the Government honoured the Social Contract and tipped buckets of money in when a good corporate citizen’s branch office went broke running suburban trains. Flat earthers expressed the view that the private transport company should have been allowed to chaotically flounder stranding public transport users for an indeterminate period of time.
Customers of the branch office’s market don’t have the Global Corporations option of where they pay tax and continue to foolishly look to Government under the Social Contract. Unfortunately the bastards vote.
It’s not the client who has incrementally abrogated the Contract, but the provider. The provider on one hand has been conned to the belief that public sector debt is an evil thing but on the other, contends that private debt to fund infrastructure is not.
Smaller Government should be a good thing, but it’s a bummer when one's ports are clogged, one's roads impassable, and the rail, water and energy infrastructure paid for by one’s great grandparents is at the point of collapse and one cant get one's Mum a bed for her hip replacement. But hey, GDP is rising isn’t it?