David Senior PUBLIC COST OF PRIVATE INVESTMENT

Dear Enquirer

Correspondents in the Letters pages of the Press have addressed the issue of the size of pre-election political promises. The so-called ‘investment of public funds’ is often a carefully crafted lie. Public-Private-Partnerships (P3s) often finance major infrastructure programs. Typically the government contracts with a private sector consortium to develop, build, maintain and operate an asset for as long as 45 years. Frequently the fee paid by the government can be 18% pa so the public pays the rent and the private company makes massive profits.

Often such a government ‘investment’ does not feature in any strategic plan (the rail-yard hospital redevelopment does not feature in the State Strategic Plan). An additional private ‘investment’ in the railyard hospital of $1b at 18%pa for 45 years would actually cost us an additional $8,100 million in rent – which would be much better spent in some of the cinderella areas of health, such as rural and mental health together with multiple other non-health major projects. You can buy an awful lot with $8,100 million.

(Dr) David Senior

Save RAH Candidate for Mawson