Re: FreightCorp sale is official.

["Paul Jones" <jonesclan@free.net.au>]

If freight corp only made a profit of $45 million, there is something
terribly wrong with it.... Gee, how did I figure that out......

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Paul Jones


"robson" <robson@cia.com.au> wrote in message
39B881FF.8A502B2D@cia.com.au">news:39B881FF.8A502B2D@cia.com.au...
> It was also said that the preceeds of the sale ($1 billion) would be
> put into general government revenue, not partly into rail maintenance
> as Transport Minister Carl Scully had hoped.
>
> A cynic would suggest that the sale is being pushed through to
> compensate for an Olympic budget blow-out, rather than for sound
> economic reasons.
>
> A anti economic rationalist view could be this .... It would have been
> better to absorb FreightCorp back into State Rail so that the profit
> (quoted yesterday as a yearly dividend to the State Government of
> $45m) could be used to cross-subsidise CityRail losses, as was the
> case before the 4 way split. That was the split that some now say
> seemed like a good idea at the time. With cross subsidy there would be
> less need to dig into the public purse. Stupid idea, right!