Saturday, April 22, 2006

Another Privatization Myth Busted

Ah the joys of privatization, more efficient and cost effective than the public sector say the neo-cons until reality walks up and slaps them in the face. Toll highway operator 407 International posts $11-million loss in Q1

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BBS said...

Yup, what we really need to run this is a bloated government department that would lose even more money. Lots more public service, union employees to hold us hostage to Sid Ryan's whims.

The fact is, the company and it's investors are running the highway and taking the appropriate risks. They are responsible for maintenance and upgrades. If they can't run it at a profit in the long term, then they will sell it to someone else.

The only problem with the 407 was the fire-sale price the Eves government dumped it for.

GM and Ford seem to be running significant losses while they manage their turnarounds. I don't see anyone crying for the government to take them over. Chrysler bit the bullet 5 years ago and is now reaping the benefit of profability.

Cost effective - you bet. It's not coming out of my pocket. I have the choice whether or not to drive on this highway. Contrary to popular belief to those advocating for the socialist Nirvana, choice is not a swear word.

eugene plawiuk said...

Ah the crux of it was the Eves government sold it off for "fire sale prices" which is what the Klein government did with liquour stores. Which is like selling your house to rent. Or buy a condo and pay condo fees same thing. The fact is that taxpayers built the road, so if they wanted a toll put a toll on and make money. Which is what B.C. did. There's your choice.
Selling it to a private contractors is what Alberta did with our highways and sorry dude they are not cheaper to maintain, we are being gouged. The government sold off our equipment on 25 cents on the dollar to the contractors.
With public sector workers wages are set by the State, not the market as you point out and even in an overheated market like Alberta they would be less than the costs charged by the private contractors.
GM and Ford are bad examples as is Chryslar you are forgetting the State bailed them out in the eighties.
You and me bud.
As for the classic chimera of choice, sure don't use the highway drive through some farmers filed and see what happens.
What a glib argument.

BBS said...

Glib arguement? Maybe you should take a look at a map of the 407. There is absolutely no need to use it unless you choose to. Glib is suggesting that a farmer's field is the only option.