Comments on: Days of Privatizing Over as Government Takes Charge http://www.dailyreckoning.com.au/days-of-privatizing-over-as-government-takes-charge/2009/05/05/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 10:39:45 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Craig http://www.dailyreckoning.com.au/days-of-privatizing-over-as-government-takes-charge/2009/05/05/comment-page-1/#comment-76815 Craig Wed, 06 May 2009 11:06:32 +0000 http://www.dailyreckoning.com.au/?p=5864#comment-76815 I agree Joe. I am living in Sth East QLD where water is scarce. I would be more than willing to pay for water infrastructure to secure the towns future. I chose to live here, I pay for the priviledge and not expect government hand outs to bail me or the town out. The local council is too scared to suggest that the user pay in fear of being voted out. I agree Joe. I am living in Sth East QLD where water is scarce. I would be more than willing to pay for water infrastructure to secure the towns future. I chose to live here, I pay for the priviledge and not expect government hand outs to bail me or the town out. The local council is too scared to suggest that the user pay in fear of being voted out.

]]> By: Joe http://www.dailyreckoning.com.au/days-of-privatizing-over-as-government-takes-charge/2009/05/05/comment-page-1/#comment-76796 Joe Wed, 06 May 2009 04:51:37 +0000 http://www.dailyreckoning.com.au/?p=5864#comment-76796 Bill, I think you missed the point. The point is that water as a resource is becoming more and more scarce. If governments continue to subsidise it we'll eventually run-out in areas or the cost to subsidise it will grow exponentially as it becomes even more scarce. People should pay the real price of the things they consume. Subsidies, just create false markets and demands, if there isn't enough water to support a city in the desert or if people aren't willing to pay the real price of getting water into the desert then maybe you shouldn't have a city there at all, or maybe it should be a smaller or more sustainable one. I agree with your concern though, that some public utilities should never be privatised, but isnt't that more because utilities that are privatised tend to be given over to cartels that are allowed to engage in price fixing, or are in some way subsidised themselves (like the de-sal plant being constructed in Victoria). If the market were really fair then ideally people would pay what things are worth to them or cost to get them. Bill, I think you missed the point. The point is that water as a resource is becoming more and more scarce. If governments continue to subsidise it we'll eventually run-out in areas or the cost to subsidise it will grow exponentially as it becomes even more scarce.

People should pay the real price of the things they consume. Subsidies, just create false markets and demands, if there isn't enough water to support a city in the desert or if people aren't willing to pay the real price of getting water into the desert then maybe you shouldn't have a city there at all, or maybe it should be a smaller or more sustainable one.

I agree with your concern though, that some public utilities should never be privatised, but isnt't that more because utilities that are privatised tend to be given over to cartels that are allowed to engage in price fixing, or are in some way subsidised themselves (like the de-sal plant being constructed in Victoria). If the market were really fair then ideally people would pay what things are worth to them or cost to get them.

]]> By: Bill Rich http://www.dailyreckoning.com.au/days-of-privatizing-over-as-government-takes-charge/2009/05/05/comment-page-1/#comment-76752 Bill Rich Tue, 05 May 2009 15:26:25 +0000 http://www.dailyreckoning.com.au/?p=5864#comment-76752 I am a long time reader - first time poster. I must voice my disagreement over your suggestion to privatize the fresh water supply in the US and let the free market set pricing. After what we have seen of the free market lately, and the unregulated gluttony of greed, there is no way I want to give control of my access to tap water to wall street. Some public utilities should never be privatized. I am a long time reader - first time poster. I must voice my disagreement over your suggestion to privatize the fresh water supply in the US and let the free market set pricing. After what we have seen of the free market lately, and the unregulated gluttony of greed, there is no way I want to give control of my access to tap water to wall street. Some public utilities should never be privatized.

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