SteveS1
I heard that, pardon?
I don't disagree that the example you gave is an appallingly bad use of public money and, to leave no doubt, I do not believe that it is always the case that 'private good, public bad' but:
In your example, it is unlikely that the company acted illegally or somehow 'stole' the money. The only reason, that the a greater percentage of public money went to shareholders is because of a poor contract and poorly enforcing it. That's not an excuse, that's a statement of fact. However, what I will say which is IMHO is that the best commercial and contracting specialists tend not to work in Government because they can get much more working for industry and tend to move there, so the Government will always be at a bit of a disadvantage.
- All PLCs about the shareholders' profit.
- The vast majority of government spend goes to PLCs.
- So a lot of government spend goes to shareholders.
I don't have a problem with public money going into PLCs - creates jobs, taxation and the rest. I have a big issue with contract management that loses sight of objectives and requirements or rewards shareholders without justification. Half of that is 'contract management' but the players themselves have responsibility, or should have.
I've never seen 'private good/public bad or vice versa. But there are monopoly concerns that while attractive to buyers are seldom in the public interest. One of the first signs of something not being suitable for privatisation is when a market has to be forced or even created.