Wednesday, 14 September 2016

Brazil Taking Wrong Turn With Privatisation

It is blatantly obvious that privatisation doesn't work, it increase costs and lowers the quality of services because it is impossible for the private sector to deliver the same service for less and make a profit and making a profit is the only reason they are there in the first place.
Case in point the news today that Government privatised the collection of Tax Credit debts to a private firm Concentrix who received a payment for each Tax Credit claim they closed due to fraud who then proceeded to merrily incorrectly close down so many claims (and receive their payment for and leave claimants with no money) that the Government have had to sack them and take the job back over themselves.
Undeterred the new government in Brazil has announced a multi-billion dollar privatisation plan in an attempt to pull the country’s economy out of the worst recession in eight decades.
Handed out to the highest bidder will be operating licenses for oil and gas, electricity, airports, sea ports, road building, railways, mines and dams and is expected to raise £24 billion.
Maybe at some point someone will say hang on, instead of all the profits from these things going back into the countries coffers to benefit everyone, they are now going to shareholders bank accounts but by then costs will be up, quality of service and wages will be down and a few more bosses will be swanning around the Mediterranean on a massive yacht and Brazil will be wondering where it all went so wrong.

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