Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
I've yet to see anyone who can explain to me how privatisation can work on Infrastructure projects. The reason they have always been explained by politicians to be good is that they will bring the cost down due to competition. If you're building a transport route from Paris to Rheims though can you have real competition? doesn't the shortest route have an effective monopoly? unless it is running at capacity and people are forced onto a longer route

If you are buying motorway service from the private contractor, how can the costs come out less than that of the government?  The government is always going to be paying less for the loans it uses to finance the construction, if it isn't paying directly out of taxation. it doesn't need  a built in Profit margin.

Beyond the politicians and the construction companys bankers, who profits from this arrangement? Perhaps we'll see a return of the Rebecca Riots

Any idiot can face a crisis - it's day to day living that wears you out.

by ceebs (ceebs (at) eurotrib (dot) com) on Wed Dec 6th, 2006 at 05:57:57 PM EST

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