Debates & the Privatisation

Port Kembla Privatisation: Infrastructure Irrationality? 

If a cost benefit analysis for Port Kembla has been produced by the O’Farrell Government, where is it? It is time to begin a dialogue with the Wollongong community. Ray Robinson writes.

Who has developed the analysis of future State Government revenue flows once all infrastructure sales to the private sector are completed?

The Hon Duncan Gay MP has said that Port Kembla is to be a long term lease. Where is the cost benefit analysis that assures the taxpayers of New South Wales that the net revenue flow from the private lessee will be greater than an efficient public sector operation? If a cost benefit analysis has been done why has it not been used to defend or strengthen the State Government’s case?

There is a high probability that foreign investment may have a significant share and that infers repatriated revenues overseas. Put another way, less revenue for Australians. We all understand that the Port Kembla development is the product of Australian capital – even if we borrowed from overseas, the capital was paid for – interest plus heavy service charges no doubt. That is the lessee has a jump start with an operational profitable concern – what a gift to strangers with our resources.

Of course we understand the potential implications of employment when a new private sector lessee seeks to improve profit margins. When government has funded infrastructure such as roads, they could borrow more cheaply than the private sector (a less risky borrower), and we now travel on them free, apart from fuel tax and vehicle registration charges. With Public Private Partnerships (PPP) and their toll roads, the road user pays daily a usage rate (toll) additional to full government funding.

Again why is the cost benefit analysis not a public document in the name of transparent governance? The Hon Duncan Gay has said that the Port Kembla lease will allow funding of “other” services. Why are we not told that once our existing government owned infrastructure has been sold/leased off to foreign investors the only way to fund long term future services and infrastructure is by raising taxes.

Olive Rodwell is correct in asking for the feasibility or economic study on the privatisation proposal of Port Kembla marine services (Mercury September 7 2012). This is another example of party political democracy assuming the role of a ‘benevolent dictator’. Mistakes made by governments today have to be paid for by the taxpayer in the future. Transparent and democratic governance in a modern educated society is required to present information to the public for discussion and review. Unsubstantiated assertion by the party political is a sword that denigrates voter democracy.

Originally published at Illawarra News 

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