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OT: Current Affairs and Politics

JokerEel

Coach
Messages
13,799
I would be interested in hearing some real life examples where government services were outsourced and led to better service at a reduced cost?
Seems like most times they end up costing more for worse service


airports, toll roads, and even postal services in some countries have improved with private sector involvement. Australia’s private toll roads are expensive but deliver better-maintained infrastructure than public roads. Even utilities like electricity and water in some regions have seen efficiency gains. The key isn’t just outsourcing, it’s structuring contracts to ensure accountability and competition..
 
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11,983
Hmmm, I'm not really convinced. It's way to simple to say government bad, private sector good. Or to say where private sector excels that government wouldn't have also.

It's all very much down to specific circumstances and the nature of the endeavour, and lots of factors of influence. There are numerous examples where return to government (rather than outsourcing to consultants) has provided much needed improvement to services etc.

Privatisation shouldn't be a political philosophy or mantra (like it is for the LNP), it should instead be practically applied (by either party) only where needed, only when there is spare government money to spend, and only for a specified short-term purpose (like meeting a short-term time frame only possible with an extra temporary private resource).
 

JokerEel

Coach
Messages
13,799
Hmmm, I'm not really convinced. It's way to simple to say government bad, private sector good. Or to say where private sector excels that government wouldn't have also.

It's all very much down to specific circumstances and the nature of the endeavour, and lots of factors of influence. There are numerous examples where return to government (rather than outsourcing to consultants) has provided much needed improvement to services etc.

Privatisation shouldn't be a political philosophy or mantra (like it is for the LNP), it should instead be practically applied (by either party) only where needed, only when there is spare government money to spend, and only for a specified short-term purpose (like meeting a short-term time frame only possible with an extra temporary private resource).


agree privatization shouldn’t be a blanket approach, but it’s not just a political mantra,it has delivered real benefits when done right. Private industry often drives efficiency and innovation in ways bureaucracy struggles to match, reducing long-term costs to taxpayers. The key isn’t avoiding privatization but structuring it to ensure better service without unnecessary public spending.
 

Gronk

Moderator
Staff member
Messages
77,938
agree privatization shouldn’t be a blanket approach, but it’s not just a political mantra,it has delivered real benefits when done right. Private industry often drives efficiency and innovation in ways bureaucracy struggles to match, reducing long-term costs to taxpayers. The key isn’t avoiding privatization but structuring it to ensure better service without unnecessary public spending.
I am not adverse to privatisation, however with Sydney Buses as an example, reducing the frequency of services at night or weekends to hourly or bihourly sucks. This is a perfect example of how it doesn't work and is to the detriment of the taxpayer.
 
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11,983
agree privatization shouldn’t be a blanket approach, but it’s not just a political mantra,it has delivered real benefits when done right.
Incoming privatisation mantra in 5, 4, 3...
Private industry often drives efficiency and innovation in ways bureaucracy struggles to match, reducing long-term costs to taxpayers. The key isn’t avoiding privatization but structuring it to ensure better service without unnecessary public spending.
Mantra complete! And yes, there's a long way to go before privatisation avoids unnecessary public spending... but is Dutton (or Price, or Trump, or Musk...) the one to make those structural improvements? My money's on no.
 

Bandwagon

Super Moderator
Staff member
Messages
45,462
Fair point,competition works best when there’s real accountability, and bad contract management leads to bad outcomes. But that’s a governance failure, not an inherent flaw in privatization.

Public sector rebuilding shows resourcing matters, but private industry, when structured correctly, can match or exceed that efficiency. Profit shouldn’t override service quality, but assuming government always does better ignores where private industry has outperformed.

I'm not saying government always does better, what I'm saying is that the private sector delivering better results cheaper more often than not is a proven myth
 

hindy111

Post Whore
Messages
63,292
I would be interested in hearing some real life examples where government services were outsourced and led to better service at a reduced cost?
Seems like most times they end up costing more for worse service

Once they become private they will cost less to run and profits will be higher. Unfortunately so will consumers costs.
 
Messages
11,983
Once they become private they will cost less to run and profits will be higher. Unfortunately so will consumers costs.
There's never a good reason for government to privatise something that is making a profit, or that is capable of making a profit. Nothing stopping government from adjusting things for efficiency improvements, same as private sector would - but if not privatised any profit stays with the government (and therefore benefits us).
 

JokerEel

Coach
Messages
13,799
Incoming privatisation mantra in 5, 4, 3...

Mantra complete! And yes, there's a long way to go before privatisation avoids unnecessary public spending... but is Dutton (or Price, or Trump, or Musk...) the one to make those structural improvements? My money's on no.


Privatization isn’t a mantra..it’s a tool, and like any tool, it depends on how it’s used. Poor execution leads to poor outcomes, whether by government or private industry. The focus should be on smart policy and accountability, not just who’s in charge. If privatization reduces taxpayer burden and improves services, why dismiss it outright?
 

JokerEel

Coach
Messages
13,799
There's never a good reason for government to privatise something that is making a profit, or that is capable of making a profit. Nothing stopping government from adjusting things for efficiency improvements, same as private sector would - but if not privatised any profit stays with the government (and therefore benefits us).

In theory, keeping a profitable government service means the public benefits from the revenue. But in reality, government-run enterprises often suffer from inefficiency, political interference, and lack of innovation. Take Telstra...

when it was government-owned, we had limited choices, outdated infrastructure, and slow progress. Privatization introduced competition, leading to better services and new players like Optus and Aussie Broadband. A government monopoly might keep profits ‘public,’ but if it delivers poor service and stifles competition, the public still loses.
 
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11,983
Privatization isn’t a mantra..it’s a tool, and like any tool, it depends on how it’s used.
True
Poor execution leads to poor outcomes, whether by government or private industry. The focus should be on smart policy and accountability, not just who’s in charge.
True
If privatization reduces taxpayer burden and improves services, why dismiss it outright?
Assumption/mantra. Privatisation sometimes might, but in most cases doesn't seem to achieve either aim. It's a 1980s economic approach which - in terms of outsourcing government jobs/duties to consultancy firms for profit - has probably run its course in most cases... except in Dutton's mind, and the bank accounts of the wealthy cabal that support agendas such as Trump's.
 
Messages
11,983
In theory, keeping a profitable government service means the public benefits from the revenue.
True
But in reality, government-run enterprises often suffer from inefficiency, political interference, and lack of innovation.
Only sometimes
Take Telstra...

when it was government-owned, we had limited choices, outdated infrastructure, and slow progress. Privatization introduced competition, leading to better services and new players like Optus and Aussie Broadband. A government monopoly might keep profits ‘public,’ but if it delivers poor service and stifles competition, the public still loses.
Whether services to the public have improved under privatised Telstra and the subsequent for profit competitors is arguable. Similar for any of the fields that were also privatised from the 1980s onwards really.

Trickle down economics is a lie. Hopefully common sense prevails and any further plans (like Dutton's) to bring in consultants, privatise or pander to the market are halted before it sends the country really down the tubes.
 

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