THE TRUTH ABOUT PRIVATISATION: BLOG # 8

Here is a presentation on partial privatisation given by economist Phil Barry to a well-attended meeting of the Law and Economics Association of New Zealand in Wellington on 21 March 2011.

Some interesting points include:

  • 2009 was a record year for privatisation globally
  • the international trend has been away from public floats and towards trade sales
  • the under-pricing of government floats has been much less in New Zealand than the global average
  • research indicates that the average gains from privatisation are large: 20% improvements in efficiency are reported, for example
  • most studies also find significant performance gains from partial privatisation
  • allowing foreign ownership increases the gains
  • the internal rate of return for the Crown’s investment in Air New Zealand has been just 4.1% p.a. to March 2011.

Phil Barry concludes that the government’s plans for partial privatisation are a step in the right direction.

Advertisements

2 thoughts on “THE TRUTH ABOUT PRIVATISATION: BLOG # 8

  1. But with a $16BIllion deficit this year, and needing at least $100 Billion to “Rebuild” Christchurch

    clearly the only logical policy is immediate trade sales, overseas, of all possible government assets – especially including hospitals and schools!

    Any other policy is simply not serious, and has no chance of addressing the $180Bn national debt, or it’s current projection out to something like $250Bn.

  2. clearly the only logical policy is immediate trade sales, overseas, of all possible government assets – especially including hospitals and schools!

    And how is that going to help the savings and trade deficits? The repatriation of future dividends will count against the trade deficit.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s