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State Companies v Private Companies


hammer

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Joined
Jul 6, 2009
Messages
58,514
| Irish Examiner

When a private company is struggling it needs to cut costs to survive. Government insists that we must regain our competiveness.

State Company makes €38 million PROFIT and revenue is down, so to survive it increases its prices :) :)

Seriously are we thick. Surely the Government should step in and get them to reduce costs. Encourage tourists etc............
 

derekbhoy

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Aug 7, 2008
Messages
21
Really depends on what the business of the state co. is.Very few private companies have a monoploly on a particular product or service where as the state due to overhead costs or expense of certain lines of business have no choice but to increase costs as sometimes even 38 million would only be a drop in the ocean if things didnt exactly go to plan.
 

toasteroven

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May 7, 2009
Messages
63
Would it not be better if the state just owned the infrastructure (electricity broadband etc) and allowed private companies to sell these services to the people with the appropriate regulation.
So then we wouldnt have a situation where the semi state ESB owns the electricity grid and sells to companies like Bord gas at inflated prices and the ESB themselves can't drop their prices due to daft competition rules which keep the price inflated in the first place?
Or am i wrong in that assumption? And for Eircom and broadband provision. So the state own the broadband network and then sell to various private companies to provide competition in the market...

Same goes for the airports. Own the building etc and lease to private companies willing to provide best service at best price. again with proper regulation. Just as the authority rents out slots to different airlines.
So then you would not have massive costs for state, if you just owned the infrastructure.
 
Last edited:

fiannafailure

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May 16, 2009
Messages
2,069
Would it not be better if the state just owned the infrastructure (electricity broadband etc) and allowed private companies to sell these services to the people with the appropriate regulation.
So then we wouldnt have a situation where the semi state ESB owns the electricity grid and sells to companies like Bord gas at inflated prices and the ESB themselves can't drop their prices due to daft competition rules which keep the price inflated in the first place?
Or am i wrong in that assumption? same goes for Eircom and broadband provision. So the state own the broadband network and then sell to various private companies to provide competition in the market...
I brought up this very point on the Frontline programme this week, in the discussion on Ireland's energy future.

I think Minister Ryan felt that I was attacking his party, I wasn't, I was attacking the system, we need to be light on our feet in these challenging times.
 

toasteroven

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May 7, 2009
Messages
63
I brought up this very point on the Frontline programme this week, in the discussion on Ireland's energy future.

I think Minister Ryan felt that I was attacking his party, I wasn't, I was attacking the system, we need to be light on our feet in these challenging times.
oh good, so I'm not completely mad in my thinking. Thanks!

Well done for bringing it up.
 

Oppenheimer

Well-known member
Joined
Apr 3, 2008
Messages
1,461
| Irish Examiner

When a private company is struggling it needs to cut costs to survive. Government insists that we must regain our competiveness.

State Company makes €38 million PROFIT and revenue is down, so to survive it increases its prices :) :)

Seriously are we thick. Surely the Government should step in and get them to reduce costs. Encourage tourists etc............
No, we are not thick but we are being taken for dopes. With the most successful airline leading the idea that if you REDUCE prices you make MORE revenue through increased demand it is beyond my understanding that someone on a €308k salary could not understand elasticity of demand.

In 2009 Noel Dempsey made an announcement that Dublin Bus would increase fares because they were not making enough revenue. Twelve months later they are looking at another 150 or so redundancies. I'm afraid these people only know how to cause death by a thousand cuts.
 

toasteroven

Member
Joined
May 7, 2009
Messages
63
and also as owners of the infrastructure you could plan for public interest directors on the boards of these private companies to ensure best service for comsumer similiar to what the government have done with the banks (well except in FFs case that has been completely useless)
 

fiannafailure

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Joined
May 16, 2009
Messages
2,069
Welcome to P.ie, CharlieB

ESB Networks, which owns the Grid, is ring-fenced from the other ESB businesses.
The ESB generation and supply companies do not get special treatment from ESB Networks.
That seperation is not yet complete though.

They are all part of the ESB group, they share the same board of directors, they share the same pension scheme

ESB does not sell to Bord Gais at inflated prices.
They must obey the rules of the SEM, so you are correct.

ESB's price is not kept inflated. They are, however, not allowed to sell at below cost.
Why would they wish to sell below cost, the regulator does prevent them from competing on price, while they still have the majority of the market.
 

hammer

Well-known member
Joined
Jul 6, 2009
Messages
58,514
Dublin Bus passengers numbers are down 12 million over the last 2 years :(

Surely a fare increase is on the way :(

Public sector economics.

Can anyone post what state company / public sector charges have fallen in the last 3 years to help us regain competiveness !!!!
 

hammer

Well-known member
Joined
Jul 6, 2009
Messages
58,514
Waste charges
Commercial rates
VHI
Health levy to Aviva/Quinn
ESB
Bus fares
Train fares
Petrol
Diesel
DPS charge +20%
A&E fees
Airport charges
Vat 2012/2013
PRTB charges
 
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