Re: Drinking and boating

On Thu, 21 Jun 2007 10:29:52 +0100, Hugh Allen <hugh@xxxxxxxxxxxx>
wrote:

What on eatrth makes you think that private insdustry does it better?

Much observation. It also tends to spell better <g>

Even the Tories now accept that the privatisation of the railways was
a disaster. Do they now run more smoothly? Hasn't incompetence and
poor management caused accidents?

The problem with the railways is not that they were privatised, but
that they were privatised in such a daft manner. Also, AIUI,
"accidents" are actually less frequent since privatisation (although
better publicised, perhaps).

Hasn't MRSA in hospitals increased since the privatisation of cleaning
services? How could the uninsureable get health care?

er, post hoc does not imply propter hoc.

Don't we have massive fraud problems in the gas and electricity
industries?

Having worked with two of the electricity distributors shortly after
their privatisation, I can assure you that the way they had worked as
government bodies was unbelievably inefficient. Since privatisation,
service has improved substantially, and rates dropped (although they
have been rising lately for global reasons).

When a service is contracted out to private industry initially the
industry, with its shareholders in mind, charges the maximum it can
get for its services.

Nope. For monopoly providers, rates are capped by the relevant
regulator, usually on an RPI-X basis which means prices have to drop
each year.

As competition increases it starts to cut
corners in order to maintain its profits and service suffers.

Nope. Because if the latter occurs significantly, it loses customers,
which seriously cuts its profits.

This is why when you ring your gas provider you get an incomrehensible accent
on the other end and why your electricity provider can be changed
without your permission.

Nope. Did you ever try getting an answer by telephone out of an
Electricity Board? And I believe your permission actually is
required, although some scam artists have tried to ignore that.

We then need a regulatory body to oversee
each industry or perhaps we don't in your opinion and we should rely
on the market to regulate itself which in my book is a recipe for
disaster.

Then you will be pleased to hear that for monopolies we have just such
bodies.

For non-monopolies, we don't need one, as competition in the market is
very effective in that task.

The private sector is riddled with fraud, corruption, poor management
and incompetence just as some governments are.

Yes, but with the private sector we have a choice of suppliers, which
tends to keep the venality under control.

Can you give an example of a state which you regard as being as close
to perfect as it gets?

In my experience, no state is anywhere near perfect.

Adrian

Adrian Stott
07956-299966
.

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