Privatisation continues to be touted as a quick fix, so the mantra goes “public sector bad, private sector good”.
That is, using community funds and resources to build up a vital service or piece of infrastructure, usually over a period of many years, then when there is a “budget crisis” selling it off to yield a quick cash injection and the removal of an expense from the ledger — regardless of whether it is generating income or not — while giving sweetheart deals to the new owners to ensure monopoly-like conditions to maximise their profits.
Melbourne Economic Forum
Australian Competition and Consumer Commission chairperson Rod Sims said selling public assets has created unregulated monopolies that hurt productivity and damaged the economy.
Speaking at the Melbourne Economic Forum on July 26, Sims said the sale of ports and electricity infrastructure and the opening of vocational education to private companies had caused the public to lose faith in privatisation and deregulation.
Sims said: "I've been a very strong advocate of privatisation for probably 30 years; I believe it enhances economic efficiency.