Re: C Class back in service again !........well...

[rgg@deakin.edu.au (Roger Gillard)]

In article <36eb858f.3140310@news.ocean.com.au>, pcc@ocean.com.au says...
>
>
>The only transfer of wealth so far has been to the government, not
>from it. Freight Victoria paid a fair price for VLine Freight, some
>would say over paid. The Kennett Government needs it to retire the
>debt incurred during the Labour years, and to buy back what Labour
>sold and leased back. Now I don't exactly agree with everything
>
>Les Brown

   
    I'm afraid I don't understand this obsession with retiring public
 debt.When government enterprises are privatised, the companies buying 
them go into debt to but them. Private debt is more expensive than 
public debt (lenders will lend to governments at a lower interest rate).
 Private companies usually expect a larger return on their capital,
 so we must be paying more after privatisation than before. The country 
pays the interest on debt whether it is private or public. Unless 
privatised organistions are dramatically more efficient than those 
that are publically owned then we are being sold down the river.

                 Roger Gillard