Tuesday, 15 May 2018

Private Sector Fails Again

Privatisation is one of those things that is sold as great for the country but if you stop and think about it for a second, it's an awful proposition.
Take the British Railway for example, it makes millions and when it is in Government ownership, all the profits get shovelled into the countries bank account to be spent on the NHS or schools but when it is privatised, all those lovely profits disappear into private bank accounts and get spent on yachts and flashy cars.
The East Coast Rail franchise was sold to a partnership of Stagecoach and Virgin in 2015 for a eight year deal worth £3.2 billion but today it was announced that both are walking away halfway through as they are not making the profits they expected.
As the rail network is a public service which cannot be allowed to fail, the Government have renationalised the east rail line, handed back half of what Virgin and Stagecoach paid for the half of the contract they worked and are trying to spin it that it is a good thing they have done.
That Stagecoach Trains shareholders were paid £17million in dividends this year and Virgin trains paid out a £479million dividend last summer you wonder just how much of a profit they needed to make to say it is enough to continue the service.
Privatisation is an awful idea and time and time again it has been shown that it has failed spectacularly because the private sector are only interested in making as much of a profit as possible and which goes into personal bank accounts when it could be going into the Governments purse for the benefit of all of us and when they think they are not taking enough of others people's money, they walk away.


Keep Life Simple said...

HOW HAS the UK managed to survive? They posts you publish are so negative you would think the UK was as bad as, well, as bad as Venezuela.

Why don't you post about how awesome Venezuela is doing since they use the economic approach you advocate? Cuba is another great example. The UK could strive to be like Cuba, Venezuela, and Greece. Then you would be happy and only publish awesome economic posts.

Falling on a bruise said...

Not negative, it's positive as it exposes Privatisation as the sham it is, see, that a big positive!!