Nothing wrong in ensuring return on capital spent
letters published in The Australian, 27 November 2010
Queensland Opposition Leader John-Paul Langbroek claims the government’s decision to privatise Queensland railways and other public assets should not be interpreted as part of an economic vision (Commentary 26/11). He says “the LNP does not support ...privatisation as a solution to poor economic management”.
It is regrettable however that the LNP (and its predecessor) has not promulgated a policy of reducing the large number of public corporations shown by the Productivity Commission to have been earning returns well below that on capital employed in the private sector.
Such privatisations and other numerous potential improvements in efficiency of services were outlined in the report published by the Queensland Chamber of Commerce and Industry in 2006. Had the Opposition accepted that report it might now have been in office instead of struggling to update its policies.
Des Moore
Institute for Private Enterprise
South Yarra, Vic