Privatisation is good?

Aren't we told privatisation leads to competition and a better customer experiences, along with cheaper prices?

Hey, cheaper prices really happened with the UK railways when the system was privatised! No? Certainly not. It also lead to some terrible train crashes as the system became poorly maintained by Thatcher's private companies. Slowly, slowly, catchee monkey, railway companies in England and Scotland are being returned to being government operated.

Essential services should be run by governments, who own, operate and are responsible for what happens. Governments need to put the right people in positions of power to operate the services, along with adequate funding. 

Australia's government owned telecommunication department, Telstra, was privatised and its major competition became Optus. Optus is on the back foot at the moment because of the failure of its 000 emergency call system, where some people may have died because of the failure of the system.

So Telstra is now a private company, and Optus is ostensibly a private company, but is it? It is owned by Singtel, a telecommunication company owned by the government of Singapore. So, was it a great idea to privatise Telstra and allow a foreign government owned company to become its major competition? Now our private company competes against, effectively the full resources of the government of Singapore.

In the last financial year, Optus earned AU$8.4 billion in Australia. There will be allowed deductions from the earnings, but what would you think was a fair corporate tax on such earnings? $2 billion? $3 billion? 

Try zero!

Netflix in Australia, earning $1.2 billion, no tax.

Tech giants pay a very small amount of tax in Australia.

Murdoch's corporation, owner of three major daily newspapers in Australia, and with Fox streaming, Foxtel, Sky TV, Sky News, along with the New York Post and the Wall Street Journal, paid no corporate tax in Australia  

I don't blame these companies. They have complied with legal requirements. Tax is not a voluntary contribution. 

There is something seriously wrong with Australia's tax laws.

Many of Australia's major companies are US investor owned, including our big four banks, one of our major two supermarket, Woolworths and the mining company BHP. They are private investors who own so much in Australia, and not governments. I don't think that is ideal, but it is the way of the world now.

Also there is another foreign government investor in Australia, Canada's Pension Plan. While it is managed at arms length, it is still owned by the government of Canada.

Then worse, a Chinese company connected the government of China has a 99 year lease on the Port of Darwin. No one was happy with this, but it happened under our conservative party in 2015. Unbelievable. Darwin is probably Australia's most strategic port should there be trouble, and is used by the US defence force. 

Whatever your thoughts are about the merits of privatisation, I do not like Australian government assets privatised, only to be owned by foreign governments. 

And what kicked this rant off? I discovered a prominent player in Australia industry, especially public transport, is Keolis. The company is owned by SNCF, the French national government owned railway company.

The real point of this post is that Australia removes essential services from public hands to private hands, only to have our privatised assets being bought up by foreign governments.