Australia Post and Medibank To Be Sold Off?

[icyfroth]

ACCC chairman Sims argues the benefits of privatisation

An article in this morning's Australian Financial Review, based on an interview with Mr Sims, says that he has called for Federal Government to sell Medibank Private and Australia Post.

However, Mr Sims has told News Radio that he was not advocating for the sale of particular Government-owned businesses.

"Australia Post, that's really an issue for government, I was making a general point this morning, and I'll really leave it at that," he told News Radio's Marius Benson.

"I think there are direct experiences you can draw from the energy sector, but I've really got no parallel from which to comment on Australia Post, or Medibank Private for that matter.

"Mr Sims adds, however, that the only good reason for government ownership is because it has particular social objectives in mind.

"If all you're after is maximum efficiency then there's no question that you'd have those assets owned by the private sector," he argued.

"If you're continuing to own them by government, then that's because you've got some social objective to achieve."If you have a social objective, it's worth specifying what that is, and I suspect there's probably more direct ways to achieve that social objective".

 Martin O'Nea, the national assistant secretary of the Communication Workers Union says " Australia Post hasreturned more than $800 million in dividends to taxpayers over the past three years.

He also warns that Australia Post's less profitable but socially useful services, such as relatively affordable and timely mail and parcel deliveries to rural and regional Australia, would likely suffer if it was privatised

."With a privatised Australia Post, would them services that people have seen in the past three years remain the same?" Mr O'Nea asked rhetorically."We'd venture that the experience that regional and rural Australia have had with privatisation in the past would leave them to believe that it certainly wouldn't.

"That is a view shared by the Post Office Agents Association Limited, which represents the owners and operators of licensed post offices, which make up around 75 per cent of Australia Post's network.

"A privatised postal operator would focus on the main population centres at the expense of customers in rural Australia," said its chief executive Ian Kerr.

The association says it received assurances from both major parties ahead of last year's federal election that neither had plans to privatise Australia Post.

The Government has launched a scoping study into the possible sale of Medibank Private, which is due to report next month.

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Poor Aussies, so far in debt we'll have to sell off our remaining assets soon, and then how will we repay our loans if all our jobs go overseas or to foreign workers?

[icyfroth]

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@monman12 wrote:

TB: "My post is directed towards a fundamental and well proven fact that is not one instance where the community has been better off when a public sector asset has been privatised. In fact, in every case, where that asset has been privatised, not only has the level of service decline but also the customer is being forced to pay more for the reduced service being provided."

TB that is absolute nonsense,  allow me to mention  at state level  the State Bank of  Victoria, or the CBA at federal leveljj

 Among the policies for which the Hawke-Keating Labor government is remembered, two of the most prominent were privatisation and financial deregulation. The combination of these two policies was symbolised by the conversion of the Commonwealth Bank from the 'people's bank' to a private organisation devoted to maximising returns to its shareholders and managers.

I realised that governments were not  good bankers, and upon privatisation purchased as many shares as I could afford with dividend  re-investment. (I now have over 8000 CBA now with a good fully franked return) as do most supperanuation funds.

" not one instance where the community has been better off when a public sector asset has been privatised."

Nonsense TB, and you do not invest I would assert.

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erm...we're talking community here, Monno, not individual investors...

[acacia_pycnantha]

Individual investors might profit, but the community as a whole has never profited from privatisation of a public asset.

[acacia_pycnantha]

No plans to privatise the postal service or the ABC or Medibank?

"No plans" to sell uranium to India. Does anyone remember that?

"No plans" . . . is polly-speak for "lots of plans, just none that we're going to tell you about right now."

Attempts to privatise the ABC might just be the final nail the coffin that the LNP seems to be building for its self.

[*crikey*mate*]

didn't you see my work in the "Punish the Polluters" thread?

Icy and Nev seemed to understand it too!

I even had to get some graphs an stuff out for that thread, MonMan!

[cherry*135]

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@monman12 wrote:

Is there anyone here who knows a little about economics ?,  or actually invests?, or has there own SMSF?, or understands  any of the  one , or more of the  foregoing?

Waiting, waiting, waiting.

 nɥºɾ

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Yes, I know a little about economics.

[acacia_pycnantha]

I think that the majority of Australians don't know a lot about economis or have their own SMSF's but maybe a few do invest.

But the overwhelming majority of Australians have seen what privatisation of their electricity and water supply have done for them and they don't want any more of this **bleep**.

Medibank, the postal service and the ABC are just too important for the majority of Australians for them to allow them to be privatised.

And any attempt to do so by this govt is a guarantee of political oblivion come the next election.

Anyone for Workchoices?

[lakeland27]

agreed. its at a tipping point this issue , and can only dish up more clive palmers.

[*crikey*mate*]

I must admit, my views of selling assets are only as a last resort. I'll be disappointed if he does privatize or sell them etc

but it would be good to create a little competition for AP, so maybe either a small bit, or establish an alternate, but then they'd have to change the legislation too, wouldn't they?

too tired to think

but I reckon I'd be narky if he sold an asset and didn't use the revenue to buy another asset to replace it at least

can't see the point of selling everything off, getting us back in profit and then handing all the cash over to labor to squander again next time they're in power....

(sorry LL, couldn't resist) LOLOL

*cheeky grin*

[acacia_pycnantha]

My concern is that political oblivion might not be so unpalatable for those who look forward to a life after politics where they are rewarded for their perfidy by being offered lucrative board positions by the private companies whose fortunes they have acted to assure and to guarantee during their service in govt.

Who do they truly serve?

[lakeland27]

you should be tired crikey.