Privatisation push will hurt us

IVAN Yates is off again on his “privatise everything” hobby horse and he is free to do so (Opinion, Sept 15). However, it is disingenuous to keep repeating that privatisation benefits consumers.

The truth is that there is ample evidence now to show that following privatisation, unit cost for the consumer rises and standards very often fall. All we have to do is look east to England and see what happened under Margaret Thatcher’s great privatisation push. Once upon a time, British Rail provided a wide ranging service at reasonable cost and with admirable efficiency. Today the traveller to England is well advised to steer clear of railways such is the cost and inefficiencies that now abound. Water is another example that gives a longer period for study. Some basic facts are illuminating.

Prices soared 245% in 17 years despite operating costs remaining steady. During that period there is no evidence to show any improvements in performance, productivity or efficiency. While all this was going on, the profit margins of the private companies increased six fold.