Learn From History: Privatisation Has Already Failed

Sydney Morning Herald

Wednesday December 12, 2007

History repeats itself but no-one seems to notice ("Power ranger Iemma ignites state with $15b", December 11).

Hospitals, schools, telephony, railways, power and bus services were once all provided by private organisations. When each failed to provide adequate services to all (particularly schools), or went broke and failed, governments had to take over.

Privatisation of services benefits the wealthy and provides scraps for the poor until eventually the majority get nothing and government has to step in.

There's no better example than the fragmentation of telephony, where no provider alone is prepared to build a broadband internet network. After the main player has been sold by the Government, now the Government that must pay to have a system installed.

Richard Lynch WaterlooLet me see if I've got this right. The NSW Government is unable to control the cost of electricity that it generates. So by selling off the electricity suppliers to a private concern, it will be able to.

How does that work?

Matthew Stevens Thornleigh

So if the NSW Government is really considering a Metro-style train system to run under Victoria Road, why is it also floating the idea of duplicating the Iron Cove Bridge?

Paul Gittings Russell Lea

It is becoming more obvious that the lights will go out for Morris Iemma at the next state election.

Robyn Lewis Raglan

Leaving aside any ethical or moral issues, what is the Government going to do when it runs out of assets to flog?

Neville Brown Croydon

Quite apart from the eventual cost to consumers that privatisation always brings, what company is going to take on a power generation set-up comprised mainly of coal-fired generators that face closure and replacement with low-emission machines?

Brian McGee Balgowlah

I've got an idea for Morris Iemma: borrow $15 billion on the open market for the infrastructure works and use the current estimated $1 billion a year income from the government-owned electricity retailers to repay the loan.

In about 20 years, the loan will be repaid and we, the public, will still own the assets and benefit from the continuing income.

Tim Blatch Umina Beach

Another piece of the farm is about to be sold and the funds spent on Sydney this and Sydney that. Anything left over will be spent on country roads and water management.

Those of us that live in the outer reaches of this state know that country means within an hour's drive of suburban Sydney. Outside that is another state funded by nobody but taxed by Sydney. We will all be paying dearly for this.

If you must sell it Morris, how about something for the people you fly over?Rowan Wigmore Lismore

I support the privatisation of the NSW power assets, but not the manner in which it is proposed. The assets belong to all the people of the state, and, indeed it is we who will benefit from the sale.

But is it right that a few employees should be paid transfer payments ("A bribe by another name", December 11) for agreeing to move from one employer to another? That money belongs to us all - that $40-plus million would effect some nice repairs to our hospitals.

Guy Sheppard Huntleys Cove

© 2007 Sydney Morning Herald

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