The Economics of Privatisation

If the rush is to get some cash to shore up the state's generation capacity which is needed becasue of the lack of maintenance investment then why not just issue bonds and spend the money. Presumably there must be a return available or the assets wouldnt sell. At the same time as we are told the money is to build generation capacity we are also told it will be spent on railways in Sydney. I find these messages contradictory and confusing and wish the Government would take the time to explain the issue clearly.

James, with respect,so your not against privatisation. We the NSW public have a valuable asset which belongs to you and me and is being sold with out consoltation. Since day 1 and still today this asset is continually making profits which should have been reinvested into up grading existing power industry infrastructuer/equipment and as in the earlier days, buliding new and better power generators. The Govnt decided to bleed that money and divert it elswhere. Where?? Millions of dollars each year that should go back to you and me in some form. (hospitals, power generation, schools, etc) If it is privatised, you sell the very thing that is a source of "continual" income to the state, yep you sell the golden goose. If privatised, the new owner wants a profit a return, do we really think its coming back to the state to be reinvested. Oh yes we got a sale price but once sold it's gone for ever. Privatisation means Australian jobs lost, money out of the hands of the NSW public and being paid to greedy CEO's and the share holders. Look at Victoria history since the Kennett sell off era, hey a 17% electricity price rise January 08, looked at the cost of your green slip lateley, (GIO sold)looked at the Commonwealth and State Bank's history since privatising, looked at NSW Rail freight, Telstra, many state owned coal mines, roads (toll ways) that used to be free or a toll till paid off, Try our Air Ports and the list goes on but all of these either totally or in some form have been sold off for short term gain but have you enjoyed any discounts,reduction in prices, better facilities, returns for your money back into the state,,, HHHMMM no !! it's gone into big CEO pay outs and share holders pockets. Please help me understand the good in privatisation. Why can't Governments do what private businesses do. Govt's and privaters all draw from the same employment source, the NSW public,, or do we. ??? Give selling a second thought. Please!. I have worked in one of those industries about to be sold and I can see what's next. Can you ???? Give it some more thought.

Consider this...The proposal is to lease the power stations for 99 years. If the life of a power station is say 40 years what happens to them when they become obsolete? The public now own obsolete power stations. Who pays to build new ones... the public does, not the people wanting to make money from power generation. Also as coal fired power becomes increasingly unattractive because of green house gas my guess is the power capitalists will argue for the building of a nuclear capacity ... what then for public -v- private ownership??

Interesting to see Combet's clear opposition to the proposal in today's press, clearly they have not all sold out.