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How market forces have failed the nation (its citizens and consumers)



When politics meets “market forces”, failure is predictable.

Cost-benefit analysis is far from a “value free” economic tool.

The NBN cost-benefit analysis concluded using the econometric model of the Centre for International Economics (CIE) that in “98 per cent of the circumstances modelled”, MTM was more cost effective.

98%? I’m impressed. :expressionless:

The NBN cost-benefit analysis determined that the median Australian household would require a bandwidth of 15 megabits per second (Mbps) by the year 2023,

most consumers were actually paying for more than 24 Mbps already by early 2016.

Often, market mechanisms are merely tools of political failure.

NBN fibre to the premises - what are the real costs and benefits?

When market failure threatens lives:

Bob Katter

Julia Creek Hospital – landline out for over a week!

I have utter contempt for the privatisation of Telstra and its ineffective systems which has seen the flood isolated hospital in Julia Creek without a landline phone since 6pm Tuesday 29 January.

This lack of communication is life threatening.

The Julia Creek hospital has been waiting over a week for this service to be restored. Telstra sent out additional mobile handsets – but these could not get to Julia Creek due to the flooding. For the past week the hospital’s only means of communication has been a single 3G handset.

After initially advising that Telstra would travel to Julia Creek after the floods subside (which could be another week) a phone call today from myself will see Telstra travelling to Julia Creek by chopper to resolve the issue.

Before the Government privatised Telstra we had 4 Telstra workers in Julia Creek, we had nearly 20 in Cloncurry and a dozen in Hughenden. Since privatisation, I doubt we would have half a dozen in the Mid-West and Gulf now.

At the time of privatisation the then Prime Minister assured us we would have Universal Service Obligations (USO) and they have tried to get rid of that too ( the Productivity Commission’s 2017 review of USOs).

We suspect many have died as a result of lack of service and privatisation.

20,000 workers made redundant, jobs abolished and workers are being brought in from overseas with call centres off shore. It has been an absolute disaster.

This is no way a criticism of the workers on the ground who are doing their absolute best, but a criticism of the corporate structure and systems in Telstra since privatisation.


Market forces may only apply where the market is strongest?
Or where the market can pay a premium?

Katter country by virtue of political difference and sparse market knows too well about market forces not delivering benefit. The same may apply to many other parts of Australia. Generally those outside the SE triangle formed by joining Melbourne, Brisbane and Sydney.

What is it that should not be left to market forces?
Ask anyone who lives outside the magic triangle for those most significant. The consequence is the public purse is left to close the gap, often with limited funding.