Ne News
26 February 2017
Around the world, governments are privatising public services, ranging from power to water, from telecommunications to transport, and from roads to banks. Some so-called 'libertarians' and some in the alternative media are openly calling for mass privatisation, claiming that private enterprises can run everything more efficiently than governments and to save money.
But what should be noted is that privatisation is nothing short of theft, with governments conspiring with private multinationals to steal from taxpayers assets that taxpayers own. This has happened in Australia with the selling off of QANTAS, Commonwealth Bank, Telstra and most recently Medibank Private. The far-right wing thinktank the Institute of Public Affairs is calling for more privatisation, including the ABC, SBS (the two public broadcasters in Australia), Australia Post and the Australian Institute of Sport among others (https://ipa.org.au/publications/2080/be-like-gough-75-radical-ideas-to-transform-australia).
And supranational entities such as the European Union (which, as has been mentioned several times by Ne News are supported by the far-right) has called for mass privatisation, which also included the disaster that was the EU Rail Directive, which has seen ticket prices increase by 11 percent (http://www.caef.org.uk/d130tckts.html; http://www.caef.org.uk/d121rail.html). In fact, it is worth noting that the so-called 'Euroskeptic' United Kingdom Independence Party actually supported many of the EU's privatisation policies, including rail (http://www.caef.org.uk/d-pdf/d143web.pdf; PDF reader required- https://sumatra-pdf.en.softonic.com/).
It is also worth noting that privatisation is at the core of fascism, and that the first leaders to privatise state assets with Benito Mussolini in Italy and Adolf Hitler (http://www.ub.edu/graap/bel_Italy_fascist.pdf; PDF reader required- https://sumatra-pdf.en.softonic.com). Margaret Thatcher was another leader who privatised state assets, and John Howard was responsible for mass privatisation in Australia, including the Commonwealth Employment Services in addition to Telstra, although the Australian Labor Party was no better, selling off the Commonwealth Bank and QANTAS.
Privatisation has had a negative impact on the services that they provide, mostly resulting in higher prices for people who use it. Below is a case study in regards to public transport in Victoria.
Privatisation of Public Transport in Victoria
In Victoria, most of the public transport system has been privatised. In 1999, the Liberal Government led by Jeff Kennett (note that the Liberal Party is actually a conservative party, despite its name) privatised the trains and trams. The train network was broken up into two operators: Hillside Trains (which was sold to French public transport giant Connex) and Bayside Trains (which was sold to British company National Express).
In 2004, the train network was renunified with Connex replacing M>Train (which Bayside Trains was rebanded as in 2001), and in 2009 Connex lost the contract to run the trains. Many people will cite the poor service that Connex provided towards the end of the contract (which was true), but what was not mentioned was the opposition to Connex's parent company Veolia Transport operating a light rail project in Jerusalem, which also included parts of the occupied territories (https://en.wikipedia.org/wiki/Connex_Melbourne#Controversies). It has subsequently been given to a consortium led by Hong Kong-based MTR Corporation (which has itself been partly privatised by the Hong Kong Government).
The tram network was also privatised in 1999, with Yarra Trams being sold to TransdevTSL and Swanston Trams being sold to National Express (which also owned Bayside Trains). In 2004, Yarra Trams began operating the newly reunified tram network (the same day that Connex started operating the reunified train network). In 2009, TransdevTSL was dumped and replaced by KeolisDowner (KDR), but kept the Yarra Trams name.
Buses were also privatised, but not all at once. In 1993, services from Doncaster and Fitzroy depots were sold to National Bus Company (which was eventually owned by National Express prior to pulling out in 2002) and in 1998, services from Sandringham and Footscray depots were sold to Melbourne Bus Link (Dysons and Reservoir Bus Company). In 2013, both National Bus Company (which at this time was owned by Ventura Bus Lines) and Melbourne Bus Link lost their routes, as well as SmartBus Orbital Bus Routes operated by Ventura Bus Lines (i.e. 901, 902 and 903 as well as the Doncaster Area Rapid Transit or DART) to French public transport company Transdev.
Also privatised in 1999 was V/Line Passenger (which was sold to, yep, you guessed it, National Express) and V/Line Freight was sold to Freight Australia. After National Express pulled out of Victoria in 2002, V/Line (as well as M>Tram (Swanston Trams) and M>Train (Bayside Trains)) were placed in government administrations before being sold off, with V/Line Passenger returning to state ownership. But with the Labor Government of Daniel Andrews already flagging more privatisations, V/Line Passenger could be re-privatised).
When negotiations took place between the Victorian Government and KDR (in respects to trams) and MTR Corporation (in regards to metropolitan trains), there were calls to put them back into public hands (just like V/Line Passenger). Submission process and negotiations are expected to be finalised in mid-2017 (https://www.ptv.vic.gov.au/about-ptv/media-centre/media-releases/metropolitan-train-and-tram-franchise-agreements-2/). So watch this space.
So while new trams and trains were appreciated, these new vehicles could've still been introduced without the privatisation of the public transport system. Many other states introduced new trains without privatisation, and so did many cities around the world.
Other Privatisations Around The World
As mentioned in the introduction to this editorial, governments around the world are privatising everything, from transport to utilities. As mentioned in the article from Systemic Disorder (which is below, as well at the following address: https://systemicdisorder.wordpress.com/2017/02/22/public-private-partnerships/), US President and real estate mogul Donald Trump has promised US$1 trillion in new infrastructure investment. While Ne News believe that this is a good thing, unfortunately, these will be privately owned, and it is worth noting that privatisation is at the root of fascism.
In addition, many investment firms has actually benefited from privatisation, none more so than Australian investment firm Macquarie Group (which owns among other Thames Water in the United Kingdom). And highlighted in the section below, Goldman Sachs owns 18 percent of Dong Energy, despite the sell being opposed by the Danish people.
So, is it possible to reverse privatisation?
Is Privatisation Reversible?
While it is difficult for governments to bring privatised assets back into public ownership, as highlighted by V/Line Passenger in the case study, it is possible. However, there are agreements that will make it extremely difficult, if not impossible, to do. For example, Paris (the so-called "City of Love" and the capital of France) has successfully brought its water supply back into public hands after the contract with Veolia Environment and Suez Environment expired in 2010. And despite the costs of buying back the water supply, the city saved €35 million in the first year, and has actually reduced the cost for users by eight percent.
This has also happened in Germany, and one example of this was Bergkamen (population of around 50 000), who had reversed the privatisation of energy, water and other services. As a result, it now earns €3 million from the municipal companies set up to provide services, while at the same time, reduced costs by 30 percent.
However, it has not all been rosy, as US investment bank Goldman Sachs still owning Dong Energy, despite the widespread opposition from the Danish people to the government selling 18 percent from the public.
And with agreements such as the Trade in Services Agreement (TiSA) being negotiated (in secret), it will be made impossible to bring back privatised services into public hands again.
Conclusion
Privatisation is theft. That is what privatisation is really is: theft. Services that has taken many years and millions of dollars of taxpayers money to fund is sold off by governments (claiming to be a 'conflict of interest' for governments to own services, while setting regulations). There was a video that played before the menu screen of many DVDs and Blu-Rays about anti-privacy, stating that you wouldn't steal a car and other crimes. Well, that is what privatisation is: stealing.
And governments often talk about privatisation bringing competition to the sector. Well, lower prices has often come at a price with inferior services.
And next time governments talk about privatisation and how it is good for the consumers (that is what we have become in their eyes), question it. We are citizens, not just consumers.
26 February 2017
Around the world, governments are privatising public services, ranging from power to water, from telecommunications to transport, and from roads to banks. Some so-called 'libertarians' and some in the alternative media are openly calling for mass privatisation, claiming that private enterprises can run everything more efficiently than governments and to save money.
But what should be noted is that privatisation is nothing short of theft, with governments conspiring with private multinationals to steal from taxpayers assets that taxpayers own. This has happened in Australia with the selling off of QANTAS, Commonwealth Bank, Telstra and most recently Medibank Private. The far-right wing thinktank the Institute of Public Affairs is calling for more privatisation, including the ABC, SBS (the two public broadcasters in Australia), Australia Post and the Australian Institute of Sport among others (https://ipa.org.au/publications/2080/be-like-gough-75-radical-ideas-to-transform-australia).
And supranational entities such as the European Union (which, as has been mentioned several times by Ne News are supported by the far-right) has called for mass privatisation, which also included the disaster that was the EU Rail Directive, which has seen ticket prices increase by 11 percent (http://www.caef.org.uk/d130tckts.html; http://www.caef.org.uk/d121rail.html). In fact, it is worth noting that the so-called 'Euroskeptic' United Kingdom Independence Party actually supported many of the EU's privatisation policies, including rail (http://www.caef.org.uk/d-pdf/d143web.pdf; PDF reader required- https://sumatra-pdf.en.softonic.com/).
It is also worth noting that privatisation is at the core of fascism, and that the first leaders to privatise state assets with Benito Mussolini in Italy and Adolf Hitler (http://www.ub.edu/graap/bel_Italy_fascist.pdf; PDF reader required- https://sumatra-pdf.en.softonic.com). Margaret Thatcher was another leader who privatised state assets, and John Howard was responsible for mass privatisation in Australia, including the Commonwealth Employment Services in addition to Telstra, although the Australian Labor Party was no better, selling off the Commonwealth Bank and QANTAS.
Privatisation has had a negative impact on the services that they provide, mostly resulting in higher prices for people who use it. Below is a case study in regards to public transport in Victoria.
Privatisation of Public Transport in Victoria
In Victoria, most of the public transport system has been privatised. In 1999, the Liberal Government led by Jeff Kennett (note that the Liberal Party is actually a conservative party, despite its name) privatised the trains and trams. The train network was broken up into two operators: Hillside Trains (which was sold to French public transport giant Connex) and Bayside Trains (which was sold to British company National Express).
The tram network was also privatised in 1999, with Yarra Trams being sold to TransdevTSL and Swanston Trams being sold to National Express (which also owned Bayside Trains). In 2004, Yarra Trams began operating the newly reunified tram network (the same day that Connex started operating the reunified train network). In 2009, TransdevTSL was dumped and replaced by KeolisDowner (KDR), but kept the Yarra Trams name.
Buses were also privatised, but not all at once. In 1993, services from Doncaster and Fitzroy depots were sold to National Bus Company (which was eventually owned by National Express prior to pulling out in 2002) and in 1998, services from Sandringham and Footscray depots were sold to Melbourne Bus Link (Dysons and Reservoir Bus Company). In 2013, both National Bus Company (which at this time was owned by Ventura Bus Lines) and Melbourne Bus Link lost their routes, as well as SmartBus Orbital Bus Routes operated by Ventura Bus Lines (i.e. 901, 902 and 903 as well as the Doncaster Area Rapid Transit or DART) to French public transport company Transdev.
Also privatised in 1999 was V/Line Passenger (which was sold to, yep, you guessed it, National Express) and V/Line Freight was sold to Freight Australia. After National Express pulled out of Victoria in 2002, V/Line (as well as M>Tram (Swanston Trams) and M>Train (Bayside Trains)) were placed in government administrations before being sold off, with V/Line Passenger returning to state ownership. But with the Labor Government of Daniel Andrews already flagging more privatisations, V/Line Passenger could be re-privatised).
When negotiations took place between the Victorian Government and KDR (in respects to trams) and MTR Corporation (in regards to metropolitan trains), there were calls to put them back into public hands (just like V/Line Passenger). Submission process and negotiations are expected to be finalised in mid-2017 (https://www.ptv.vic.gov.au/about-ptv/media-centre/media-releases/metropolitan-train-and-tram-franchise-agreements-2/). So watch this space.
So while new trams and trains were appreciated, these new vehicles could've still been introduced without the privatisation of the public transport system. Many other states introduced new trains without privatisation, and so did many cities around the world.
Other Privatisations Around The World
As mentioned in the introduction to this editorial, governments around the world are privatising everything, from transport to utilities. As mentioned in the article from Systemic Disorder (which is below, as well at the following address: https://systemicdisorder.wordpress.com/2017/02/22/public-private-partnerships/), US President and real estate mogul Donald Trump has promised US$1 trillion in new infrastructure investment. While Ne News believe that this is a good thing, unfortunately, these will be privately owned, and it is worth noting that privatisation is at the root of fascism.
In addition, many investment firms has actually benefited from privatisation, none more so than Australian investment firm Macquarie Group (which owns among other Thames Water in the United Kingdom). And highlighted in the section below, Goldman Sachs owns 18 percent of Dong Energy, despite the sell being opposed by the Danish people.
So, is it possible to reverse privatisation?
Is Privatisation Reversible?
While it is difficult for governments to bring privatised assets back into public ownership, as highlighted by V/Line Passenger in the case study, it is possible. However, there are agreements that will make it extremely difficult, if not impossible, to do. For example, Paris (the so-called "City of Love" and the capital of France) has successfully brought its water supply back into public hands after the contract with Veolia Environment and Suez Environment expired in 2010. And despite the costs of buying back the water supply, the city saved €35 million in the first year, and has actually reduced the cost for users by eight percent.
This has also happened in Germany, and one example of this was Bergkamen (population of around 50 000), who had reversed the privatisation of energy, water and other services. As a result, it now earns €3 million from the municipal companies set up to provide services, while at the same time, reduced costs by 30 percent.
However, it has not all been rosy, as US investment bank Goldman Sachs still owning Dong Energy, despite the widespread opposition from the Danish people to the government selling 18 percent from the public.
And with agreements such as the Trade in Services Agreement (TiSA) being negotiated (in secret), it will be made impossible to bring back privatised services into public hands again.
Conclusion
Privatisation is theft. That is what privatisation is really is: theft. Services that has taken many years and millions of dollars of taxpayers money to fund is sold off by governments (claiming to be a 'conflict of interest' for governments to own services, while setting regulations). There was a video that played before the menu screen of many DVDs and Blu-Rays about anti-privacy, stating that you wouldn't steal a car and other crimes. Well, that is what privatisation is: stealing.
And governments often talk about privatisation bringing competition to the sector. Well, lower prices has often come at a price with inferior services.
And next time governments talk about privatisation and how it is good for the consumers (that is what we have become in their eyes), question it. We are citizens, not just consumers.
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