Kenneth Davidson has written again about this important topic - http://www.theage.com.au/opinion/politics/flawed-figures-condemn-our-descendants-to-needless-debt-20091213-kqbh.html
I wrote this for publication on The Age site
The enforced usage of the infrastructure, eg, the taking of water from the desal plant, whether needed or not, and the artificial restrictions on traffic flows to force vehicles on to citilink, show that even the basic model is flawed.
But hey, ministers prefer to go overseas to talk to the putative suppliers of infrastructure than stay in Victoria and issue a few bonds!
How can something be cheaper when profits have to be made over and above the cost of capital???
It is axiomatic that businesses have to make profits - profit is selling price minus cost price - so how can a government say that a private enterprise will be cheaper than public enterprise when public enterprise can sell at cost and not incur the wrath of the public.
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