Friday, April 28, 2017

Poor economics -plus idiocy

We have yet another in an endless stream of examples of how our governments are serving us so badly, this one from the NSW state government.

The latest of the frantic selling-off of publicly owned (and profitable) assets is the Land & Property Information registry  against the advice of just about everyone.

That it's just ideological with no basis in economic or common sense is obvious, quite apart from the privacy, competence and cost concerns.

The registry produces a profit to the state budget of $130 million a year. It's been sold on a 35 year lease for $2.6 billion. Multiply $130 million by 35 and see how much more would be going into the budget if we kept it in public hands.

If we need the money for infrastructure now is the time to borrow it, with interest rates at historic lows. To borrow the $2,6 billion would cost about $75 million a year in interest, which could be paid out of the LPI's profit and still leave about $50 million or so in the bank.


Oh and idiotically, a billion of the vital infrastructure money is going on refurbishment of three football stadiums!

No comments: