“Privatisation has damaged the economy” says ACCC chairman Rod Sims – (The Age Business 27/7) and he is on the verge of becoming a privatisation opponent.
Unfortunately, I think he is too late. The key assets have already been privatised. There are some assets that are better managed by the private sector but clearly, certain assets should never be in the hands of the private sector which is driven by the need to reward shareholders. This particularly applies to the Utilities.
I keep reading advice that I need to manage my power consumption better in order to reduce my costs. I think I am doing that and my power consumption reduces each year and yet the costs seem to nearly always go up.
But one doesn’t need an economics degree to work out that the prices charged by any utility are going to increase regardless of usage in order to reward the shareholders and other investors.
As always, it is the low income earners that get hit the hardest.