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Non Footy Chat Thread II

Poupou Escobar

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People say that but is the evidence strong? I get that lack of competition leads to inefficiency but surely so does duplication of suppliers. And even when the number of suppliers drops through competition the profits will be going to individuals rather than the state, which would benefit us all.
I think it’s more that the lack of competition means they miss out on the best people as well. And then the need to be accountable at every level brings its own inefficiencies. The government does things at snail’s pace compared to the private sector.
 
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I think it’s more that the lack of competition means they miss out on the best people as well. And then the need to be accountable at every level brings its own inefficiencies. The government does things at snail’s pace compared to the private sector.
But if they're missing out on the best people it's because they're not paying as much, which means we're saving money. And if they're forced to be accountable at every level then that also has benefits. And we still own the asset and the profits go to us.
 

Gary Gutful

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People say that but is the evidence strong? I get that lack of competition leads to inefficiency but surely so does duplication of suppliers. And even when the number of suppliers drops through competition the profits will be going to individuals rather than the state, which would benefit us all.
Yes.

Do some research and stop spunging off everyone.
 

Gary Gutful

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So change or fix the company, and retain control of the asset. Should we privatise water as well? Everything?
If it isn't performing and Government can't fix it then any asset (power,rail, road, port, water, semen etc) will be privatised quicker than you can say "where did my side mirror go?".
 

Poupou Escobar

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But if they're missing out on the best people it's because they're not paying as much, which means we're saving money.
No but the work still needs to be done so they just employ more people. Labour would be the biggest cost blowout compared to the private sector.
And if they're forced to be accountable at every level then that also has benefits.
The benefits all go to useless merkins clinging to jobs that pay more than they deserve.
And we still own the asset and the profits go to us.
You're assuming it would even turn a profit. It's government, so their job is to stick to a budget. But here's the kicker - if they ever manage to get under budget they have their budget reduced the next financial year, which means all these useless merkins have to do more with less. None of them want that so they find ways to spend every dollar they are allocated and hope they don't accidentally go over by too much.
 

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