Re: V/Line Pass

[Greg Triplett <triplett@hotkey.net.au>]

Hi David

>> He will soon discover that his govt will be in the same financial straits as the other "team", as you put it, and then how will he overcome it.<<

I would think that getting the debt/equity ratio down is a
pretty good foundation for sound finances.

>>The only trouble with selling the family jewels is that
> it will be a bit hard to put up collateral for future borrowings when
> the time comes.<<

My observations so far are that entities which dump
debt-ridden, loss- making inefficient portions of their
operation are usually rewarded by lenders not penalised. 

We shouldn't get too excited about selling assets which you
can see and touch. In the case of railways the land hasn't
been sold so the new proprietors can't take it away with
them. Same goes for trams and City-Link and Tullamarine
airport. What happens if City-Link goes belly up ? It gets
sold to someone else or Vic Gov buys it at the fire sale
price. The shareholders took a risk and perhaps they lose
out. Either way that asset is there to be used in the
future. As for jobs, the task of delivering the service to
the public still goes on and requires whatever human
resources it takes regardless of the owner.


>>It is claimed that we are now better of than ever with
> the state in the so called black.<<

It's not yet in the black. When the present team took over
they announced that the timetable to get back to a balanced
budget was 8 years. Thats still a year or 2 away. I wouldn't
expect any significant change in standards for a while yet.

>>Well if that is the case then it hasn't come to the north east, times are no better than before. And we now have to pay through the nose for all our services, and still pay state taxes as well. I am very much looking forward to retirement but he is making sure that can't afford it.<<

I'm not surprised at what you say. I live in a smaller
country town than you and we're about to run out of water.
The extensive garden we have built lovingly over the last 15
years will probably be destroyed due to lack of water and
I'm too old to rebuild it. The basic reason for the water
shortage is lack of capital investment in infrastructure.
Having said that I hope that I can also see the big picture
as to why there is a lack of capital and look foward to the
situation improving in time.

BTW I think Jeff's an arrogant arsehole too. However he's
not there to be nice and neither was Lee Kwan Yew.

Anyway I've rabbitted on enough, we'e supposed to be talking
about trains (g)

Regards

GT