Re: [Vic] Age: Train fare pledge dumped

["Daniel Bowen" <dbowen@custard.REMOVE.net.au>]

"Maurie Daly" <mauried@tpg.com.au> wrote in message
3a53bb88.2879825@can-news.tpg.com.au">news:3a53bb88.2879825@can-news.tpg.com.au...
> On Wed, 03 Jan 2001 23:23:48 GMT, "Daniel Bowen"
> <dbowen@custard.REMOVE.net.au> wrote:
> Privatization means that prices must go up,especially when the service
> that is privatized was formerly losing money.
> Vline passenger when it was Govt operated was generating in fare
> revenue of 6.5 c/per net pass km ,and had operating costs of 33.7
> c/per net pass km, ie costs 5 times the revenue.
> (Source BTCE Analysis of the Rail Deficit Table 40).
> Whilst Govt rail operators can operate continuously and make
> losses,the private sector cant.
> It has to at least break even.
> And theres no point in blaming the Private operator.
> The problem is privatization of the service.
>
> If the Govt is unhappy about the fares rising,it is fully free to
> subsidise the fares to keep them constant.
> Cant somehow see this happening though.

The govt *does* subsidise the service. Plus performance bonuses.


Daniel
--
Daniel Bowen, Melbourne, Australia
dbowen@custard.REMOVE.net.au
Melbourne public transport FAQ http://www.custard.net.au/melbtrans/