Did I suggest Nationalisation? No, I didn't. You've twisted my comments to suit your argument. You're really scraping the bottom of the barrel Shayne to suggest that.Transtopic
Of course there's no role for government in running enterprises such as banking, insurance and airlines amongst other things, in which there's a competitive market in private enterprise. What I'm against is the privatisation of government monopoly services, which should be operated in the public interest, not in the interest of shareholders. Where do you stop? Do you privatise the Tax Office, the Treasury or the Parliament itself, which is clearly absurd? Would you prefer the government to be privatised and run by the corporate sector? Give me a break!
The point was that Nationalisation of large industries in the name of generating income to fund govt spending is a failure as much as the continued ownership of large industry by the govt.
The idea of selling assets is that you liberate an industry that is now big enough to stand on its own two feet from the govt, you then take that money to develop new industries and/or infrastructure for the next generation.
As far as the loss of recurring revenue. The Aust fed govt generates nearly $400B of income and is less than 25% of the GDP. In a developed economy the govt generates other sources of revenue and any income losses from selling the govt owned enterprises is increasingly minor. If you look at the Dubai Govt which operates very differently from the UAE govt and see where most of its income is coming from and how the govt owned enterprise sector including my own is taking an smaller and smaller step in funding the govt as the govt focuses on developing and expanding the private sector. For example foreign investment in the medical industry here exceeds Australia, but the number of govt owned hospitals a minor and not being expanded as the govt sets its goals on developing the worlds largest medical tourism industry. Likewise banking and finance.
You havn't indicated what should or shouldn't be privatised but you have both agreed with what I said and disagreed.
If we look at some past privatisations, what do you support
Bell Bay Aluminium Smelter
No you don't privatise the ATO or Treasury but do you need to operate everything in these offices. ie cleaners, IT?
Back to Dubai, the Dubai Govt made an interesting statement two years back. They saw no reason Govt services cannot be contracted out to ensure the public get the best possible service and at the same time planned to close most govt service shop fronts to be replaced with online services.
I think the key to improving some of the govt sectors performance is too look at contracting out and franchising. For example is the govt the best organisation to run a suburban railway, or just pay someone with access to world wide operations to do it?
Australia Post was never privatised because it was considered a world leader by the Howard govt and one of few making a profit, however times have changed and AP changing into a courier service. Should the govt be running another DHL? Are we not back to why the govt had to sell Telstra?
I lived in Gladstone the day the 5 or 7 year moratorium expired on redundancies after sale of the Gladstone Power Station. The difference in the number of cars in the carpark from one weekend to the next after the redundancies was an eye opener.
As QR was privatised, the redudencies kept on coming as the board started to trim the fat and remove the Rock Painters and other value adding roles of the Qld Govt Employement Service pretending to be a railway.
My own industry, Aluminium had its birth in Australia as a JV between the Tas and Aust govt starting Bell Bay. After 5 years the smelter was failing financially, the feds sold out instead of planned closure. The private sector grew that small smelter to 5 times its size and invested in a aluminium refinery and bauxite mine and later one of the worlds largest smelters Boyne.
Long answer but just trying to demonstrate that their are many reasons for going down the privatisation path. Yes not all have been successful and some never were going to be.