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Most of Australia’s previous privatisations were anti-competitive and led to private monopolies that harmed consumers and taxpayers.
Our politicians embraced this agenda because it permitted them to achieve both lower taxes and lower public debt (in the short term) by simply shifting monopoly ownership from public to private hands. They also made the mistaken assumption that privatisation would lead to more efficient outcomes, which has often proven to be incorrect.
Instead of enhancing efficiency, the new private owners have primarily exploited their market power to raise customer fees and increase profits.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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