6/21/2007
myth 146
Liberalisation is not good
The sale of the 3 power plant to private operators have raised fears that the prices will go up soon. Afterall these are commercial organisations that thrives on profit and profit is their only reason to exist. They are not buying the plants in billions of dollars to do charity to Singaporeans.
But the management of the power plants have assured the consumers that they have nothing to worry about. It will not affect them. So the consumers can rest and sleep in peace. With assurance from people in high management positions, they must be telling the truth and nothing short of that.
Let's see how the charges can be maintained, assuming the assurance means the charges will not go up. Labour cost is going up that's for sure. Rental is going up, another unescapable truth. And oil prices are going up. So how can profit continues to grow?
Its elementary. Innovation, new technologies that are more efficient and cost cutting measures. When production and productivity go up and cost goes down, profit will go up without raising fees.
So have no fear. It is a good thing.
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3 comments:
They just want to recover the losses in Shin Corp & maybe Indonesia investment. The Power plant initially was build by using Tax-payer money then privatised became under Temasek (It just other facilities -,SMRT, Singtel, Mediacorp., PSA).
Remember before PUB was privatised, the charged was steady, simple, and low for donkey years. But after privatised, the charge became like stock option & always increased when crude are shortage, the charge became complicated got water conservative tax (“recycled water”), gst, sanitary Appliance fee, Refuse Removal Fee(should this under Town Council monthly service charge indeed dual charge)etc.
So quy, do expect a shock to see your bill come with an addition charge increases in near future if the power plant(our assets)will to be sell off.
like you said, the govt have so many sources of revenue. they don't really need to worry about shin corp losses.
from the reports in the media, the money will likely be used to invest around the world so that in case our economy fumbles or folds up, we can live on our external investments.
There is little doubt that in the LONGA TERM, power prices are likely to RISE.
This is because those tree-hugging cry baby busy body western liberals have manage to con govts into believing there are "environmental crises" and therefore a CARBON TAX is required as a solution.
How can a tax ever be a "solution"? How can THEFT ever solve anything?
So it is pointless blaming "liberalisation" for rising costs. Rising costs are primarily cause by GOVERNMENT INTERFERENCE. Why? Because govt interference affect the supply and causes SHORTAGES. It doesn't matter what the good is, if the govt is involved the price will rise due to imposed SCARCITY: for e.g. real estate, energy, utilities,.etc etc.. and of course personal freedom. They ALL cost far more than necessary.
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