Originally posted by jeffkrol WWI......................> WWII Law of unintended consequences.........
Yet we never learn from history..
More recent history........
Sewer Socialism Down the Drain? -- In These Times
"Numerous U.S. cities that have privatized their water supply—Atlanta, Ga., Indianapolis and Gary, Ind., Stockton, Calif., and Hoboken, N.J., among others—have experienced a variety of severe problems including sharp price increases, infrastructure failures and plummeting water quality."
I would suggest anyone with any interest in privatization use my home province of BC for a case study of either what not to do when privatizing or what industries are poor candidates for the privatization model.
The Liberal government has undertaken a program to privatize government programs for the railway, medical records, B.C. Hydro, B.C. Ferries, medical services such as food and cleaning.
BC Hydro;
BC Hydro's various facilities generate between 43,000 and 54,000 gigawatt hours of electricity annually. Barely 17 months after he was appointed to what many believe is the best job in the public sector, BC Hydro boss Dave Cobb is walking away from the high-profile,
$550,000-a-year post to return to the private sector.
The bookkeeping manoeuvre enabled the Crown corporation to
claim a profit of $447 million last year, rather than a deficit of $249 million.
BC Ferries;
This one is particularly interesting as it shows how blind market rules can balloon government costs for a certain types of services. Foreign national David Hahn was hired almost nine years ago to remove BC Ferries from government interference and to run it more like a private corporation. He has come under heavy fire for his
$1.2-million annual compensation, as well as for a
$315,000-per-year pension he is set to collect. BC Ferries has said it expects to lose $20 million in the fiscal year 2011-2012. This is in spite of a total overseas entries to Canada through BC from 2009 to 2010 being up 9.1 per cent year over year. Fares have risen significantly under Hahn's management, noted that
vehicle traffic is at an 11-year low and passenger traffic is at a 20-year low.
“It shows how BC Ferries has been run aground since the BC Liberals started treating our ferries as a cruise ship experience instead of an integral part of our transportation network and part of the highways,”
BC Ferries boss David Hahn retiring early at the end of this year BCRail;
The current provincial government has been accused of fabricating falsehoods about the state of its debts and viability in order to justify the deal with CN.
Police raided BC Legislature Dec. 28, 2003 over corruption regarding the sale.
Controversy over CN's management of the line has focused on layoffs, toxic spills and other safety concerns, and cuts in service to some regions.
Government statements posted online from the BC Legislature;
We are seeing a shocking trend towards privatization schemes in our province:
railway, medical records, B.C. Hydro, B.C. Ferries, medical services such as food and cleaning. Many of them are fraught with mismanagement and end up costing us more. Fines, derailments, broken ferries, broken promises, dirty hospitals — all a product of the bottom line.
The 3Ps — public-private partnerships. I see them more as pilfering the public purse. To profit from doing public services means just one more hand in the purse, and the analogy that the private sector can do it better is now showing that this is untrue.
The government's contract with Maximus, for example, comes to mind: a privatized
program instituted by the government with no real business case or long-term
analysis. The company today is paying fines for poor-performance levels
anticipated, most likely, as part of its business costs. Unfortunately, the
government refuses to make public what those fines really are.
[ Page 1982 ]
There is no improvement to service as seen before the service was privatized. In
fact, services are inferior and will prove to be more expensive. The government
cut staff significantly before turning MSP systems and operations to Maximus, so
today people compare how bad delivery was before or how it was as bad as
compared to the day the services were first cut in order to accommodate the
private company.
BC Legislature - Hansard Interim Index (Subject and speaker entries), First Session, 38th Parliament