ART IS
Privatisation takes on a number of meanings including the full or partial sale of public sector corporations, the sale of government owned assets, the opening of certain markets to private sector competition and government/private sector joint ventures in infrastructure projects. The term Government Business Enterprise (GBE) describes a statutory body, corporation, government owned company, and is an important representation of the public sector when discussing the privatisation issue. In recent years, there has been a privatisation boom, particularly in countries facing fiscal difficulties. Australia is no exception with a large amount of privatisation occurring in a number of industries including telecommunications, transport, utilities and alike. Although the revenue generated by privatisation is a dominant factor behind the push for privatisation, other issues such as public enterprise efficiency, capital expenditure priorities and union curbing can also have a great influence. There is a large amount of support for the view that private enterprises under a system of rules and laws will maximise efficiency in delivery of infrastructure and associated services for the community (BIE 1992 p42). However, the efficiency of the
In New South Wales, water and electricity were sold at prices well below cost, thereby requiring excessive investment to satisfy demand. Information asymmetries are present in firms where the ownership is divorced from control (a characteristic of most large companies). Furthermore, the majority of shareowners reside in New South Wales, Victoria and Queensland (SERCARC,1996, p55). Qantas airlines and Perth Airport are a case in point. Perth's airport monopoly was privatised under provisions which prevent them from raising prices over their first years; however, they have not ruled out any prices increases after the initial teething process is over. Recent advances in communications technology have significantly reduced the need for many of Telstra's engineers. However, a report on the part privatisation of Telstra from the Senate Environment, Recreation, Communications and the Arts References committee (SERCARC,1996) argued that the privatisation would only benefit a few private individuals and not the people of Australia who are the current beneficiaries. There is no incentive for a private telecommunications company to provide expensive cabling and other equipment for rural areas for the same price they charge in well populated cities. On the 28th June 1996, Transport Minister Eric Charlton announced the private companies to be awarded preferred tenderer status for contracts to operate five metropolitan public transport bus services. public sector is often hindered by a number of factors including; the lack of clear methods of measuring performance, the assignment of multiple goals which often conflict, lack of incentives to minimise costs, lack of managerial accountability, and vulnerability to political interference. The new owners, Westralia Airports Corporation Pty Ltd. Externally-imposed controls inhibit managerial innovation and reduce accountability (Dye 1989 p220).
Common topics in this essay:
Service Obligations,
Enterprise GBE,
Hawke Government,
Loy Yang,
Queensland SERCARC1996,
South Wales,
Perth Airport,
West Australian,
Business Enterprises,
Arts References,
public enterprises,
public sector,
private enterprises,
community service obligations,
community service,
productive efficiency,
perth airport,
south wales,
argued privatisation,
service obligations,
minimise costs,
supporters privatisation argue,
capital expenditure priorities,
yang power station,
loy yang power,
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Acceptance Essays
