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Author Topic: Privatisation flops again -- when will they learn?
rasmus
malcontent
Babbler # 621

posted 19 February 2002 02:06 AM      Profile for rasmus   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
Newly privatised air traffic control system faces bankruptcy.

But it's full steam ahead for Labour's cracked scheme for privatising the Tube.

Yes, let's sell off infrastructure, transferring profits to corporations, but risks to the taxpayer... let's subsidize private profits, increase costs, worsen services. Wow. What a great plan. Woo-hoo. Count me in.

[ February 19, 2002: Message edited by: rasmus_raven ]


From: Fortune favours the bold | Registered: May 2001  |  IP: Logged
rasmus
malcontent
Babbler # 621

posted 19 February 2002 02:30 AM      Profile for rasmus   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
The Guardian's article:

"Ministers were advised last year by the CAA not to proceed with selling the air traffic control service, declaring that the plan was not sufficiently robust. The government nevertheless ploughed on with the sell-off, which was completed in July, just after Labour's re-election.

"The CAA's advice has turned out to be painfully accurate. It warned the government that the project, in which Whitehall has a 49% stake, seven British airlines 46% and staff 5%, would not survive adverse economic circumstances or a serious air disaster."


From: Fortune favours the bold | Registered: May 2001  |  IP: Logged
rasmus
malcontent
Babbler # 621

posted 20 February 2002 01:04 AM      Profile for rasmus   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
Fury at bail-out for privatised agency


quote:
In a statement the transport department insisted: "September 11 had a serious impact on Nats' revenues. To blame this on the public-private partnership is nonsense - the problem would have arisen whatever Nats' status".


Two problems here, laddies. One -- the privatisation took place even though there was a warning that it COULDN'T survive a major air disaster (see above); two -- when the government bails out itself, it isn't bailing out private investors who are scumming profit off of others in exchange for taking a risk. If they're not taking a risk, if the government will bail them out, they are not entitled to the profits, and the economic and ideological rationale for privatising -- the discipline of the markets! -- collapses.


From: Fortune favours the bold | Registered: May 2001  |  IP: Logged
beproud2
rabble-rouser
Babbler # 2040

posted 20 February 2002 08:37 AM      Profile for beproud2        Edit/Delete Post  Reply With Quote 
I believe in privatization. They took the risk. Someone will come along and take another risk. That is how it works and we will be better off for it in the end.
From: ottawa | Registered: Jan 2002  |  IP: Logged
skdadl
rabble-rouser
Babbler # 478

posted 20 February 2002 08:52 AM      Profile for skdadl     Send New Private Message      Edit/Delete Post  Reply With Quote 
beproud, you are entitled to "believe" anything you like, but if you'll read rasmus's links above, you will learn that your "belief" is directly opposed to the facts.

Everyone's who's watched the once-excellent BritRail collapse, with privatization, into sheer absurdity and bizarrerie had to be reading through those links just nodding her head. Try taking a train in Britain to just about anywhere but London, and, well, good luck -- you'll probably get there -- one day -- and you likely will have seen a lot of the country you didn't expect to see on the way.


From: gone | Registered: May 2001  |  IP: Logged
WingNut
rabble-rouser
Babbler # 1292

posted 20 February 2002 10:10 AM      Profile for WingNut   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
I think beproud misses the point.
Privatization, in it's present form, is about privatizing the wealth while nationalizing the risk. In other words, private investors skim off the cream and when it goes wrong, as it always must when what is good is drained off and what is left rots, it is the public, Joe and Jane Taxpayer, who picks up the tab. Usually to bail it out and fix it up only long enough for for Fatgreedy Pig, to begin privately reaping the benefits again.

From: Out There | Registered: Aug 2001  |  IP: Logged
beproud2
rabble-rouser
Babbler # 2040

posted 20 February 2002 10:57 AM      Profile for beproud2        Edit/Delete Post  Reply With Quote 
shoot me now father for I have sinned. I stand corrected.
From: ottawa | Registered: Jan 2002  |  IP: Logged
DrConway
rabble-rouser
Babbler # 490

posted 20 February 2002 11:32 AM      Profile for DrConway     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Everyone's who's watched the once-excellent BritRail collapse, with privatization, into sheer absurdity and bizarrerie had to be reading through those links just nodding her head. Try taking a train in Britain to just about anywhere but London, and, well, good luck -- you'll probably get there -- one day -- and you likely will have seen a lot of the country you didn't expect to see on the way.

Somehow I'm irresistibly drawn to compare trains and airlines, although the latter were deregulated, not privatized.


From: You shall not side with the great against the powerless. | Registered: May 2001  |  IP: Logged
sheep
rabble-rouser
Babbler # 2119

posted 20 February 2002 02:03 PM      Profile for sheep     Send New Private Message      Edit/Delete Post  Reply With Quote 
Nav Canada seems to be doing pretty well after privatisation

Changi And Nav Canada Honored By International Air Body


From: Vancouver | Registered: Jan 2002  |  IP: Logged
Victor Von Mediaboy
rabble-rouser
Babbler # 554

posted 20 February 2002 02:11 PM      Profile for Victor Von Mediaboy   Author's Homepage        Edit/Delete Post  Reply With Quote 
Ditto British Telecom.
From: A thread has merit only if I post to it. So sayeth VVMB! | Registered: May 2001  |  IP: Logged
'lance
rabble-rouser
Babbler # 1064

posted 20 February 2002 02:19 PM      Profile for 'lance     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Nav Canada seems to be doing pretty well after privatisation

NavCanada does seem to work pretty well. But recall, it's hardly a typical example of privatization. It's a regulated monopoly, with no share capital, and operates on a break-even basis. Excesses of revenue over expenditures have to be re-invested in the system:

www.navcanada.ca


From: that enchanted place on the top of the Forest | Registered: Jul 2001  |  IP: Logged

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