"The experiment has failed spectacularly" - the perils of privatisation

It's official ! The privatisation of Melbourne's public transport network has turned out to be a monumental cock-up. According to an analysis prepared by transport experts at a number of Melbourne-based Universities, Victorian tax payers are $1.2 Billion worse off as a result of the move to privatise Melbourne's public transport network.

Bloody brilliant Jeff, bloody brilliant!

This officially makes Melbourne a leading example of what not to do with your public transport network. Apparently no other city in the developed world has followed Melbourne's example. Even Jeff, who triumphantly sold off Melbourne's trains and trams back in 1999 when he was state Premier, seems to be conceding that things haven't quite turned out the way he'd hoped, suggesting that the government should consider "all options", including taking back control of the public transport network. Giving even more indication that Kennet might have had a bit of a change of heart on the issue, he has even suggested "free public transport" might be a possibility worth considering. To borrow a phrase from Rove McManus - "What the?"

At the core of the problem is the fact that while the state government has sold off the public transport network, it is still paying millions of dollars in subsidies to these private companies (such as Connex,and Yarra Trams), just to keep them afloat. So it's effectively the worst of both world's. A bad privatised transport system that the government still has to pay for. Brilliant!

To quote from the experts who prepared the damning report:

The experiment has failed spectacularly … subsidies have increased, services have not improved, inappropriate rolling stock has been purchased … the regulator has been 'captured' by those he is supposed to be regulating, there is no real planning for the future

The experts recommend the government takes back ownership of the system as soon as possible, which would be in 2008 when the current franchise agreements come up for renewal. They believe the cost of such a move would not be too expensive.

As far as I am concerned, the sooner the better. It was an ill-conceived, ideologically driven plan to begin with, and should never have happened. Melbourne needs a world class public transport system that serves everyone, not just those where it is cost effective to do so - it is in everyone's interest to have a top notch system, and should therefore be in the hands of all Victorian tax payers.