Easy Answer to Government Assets

IT is easy to explain to B. J. Crane (Please explain, Canning Times, March 1) why the Government is selling assets – it is economically sound policy.

He correctly asks “why is it that this Government and the people it employs… are not creating the same income”.

The answer lies in the fact that there is “no profit incentive” and as such, there is no yardstick to reference the performance of the organisation.

That is not to denigrate the associated staff, but in most instances, if the venture is not viable then the option of “topping up” from taxpayer funds or increasing costs without the pressure of remaining competitive with peer groups is the easy course of action.

If a private concern does not perform economically, then it goes bust, leaving the more efficient to carry on, hence providing a better service.

Remember, with a quasi-government entity you have no individual right of choice.

As to the expressed fear that – heaven forbid – a profit maybe made, then Mr Crane might like to consider how all the private services he enjoys are created.

It is solely on the basis of the savers in the community who use their accumulated capital to start ventures they see as needed and that they can provide either or both at a reduced price or as a better service.

Unfortunately, the true reason for his complaint is shown in the closing paragraph denigrating the elected politicians.

Should we consider the real outcomes of policy on both sides of politics, rather than be politically motivated, then the community as a whole would be in a better shape to withstand the financial calamity that will fall on this generation.

PHIL LALOR,

East Cannington.