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Privatisation

The advantages and disadvantages of Privatisation
by

Jesse Buchan

on 7 February 2013

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Transcript of Privatisation

Privatisation - where a government sells public assets (owned by the government) to private owners. The business may become more efficient as it now has different business objectives e.g. Profit Maximisation. The government receives money from the sale of the assets. Customers may receive a higher quality product or service. 3. Some services and jobs may be cut to increase efficiency and reduce costs.
E.g. A rural bus service. 1. The privatised business may now be in a monopoly situation.

Key Definition
MONOPOLY - where one business controls the market for a product. E.g. Telecom before Vodafone came along.

2. This means that consumers may now get less choice and have to pay higher prices. Disadvantages Advantages Task... John Key is considering privatising every public secondary school in New Zealand. All schools will be sold to private investors and the government will have no say over how they are run, who is employed or which subjects are taught in each school.

Write John Key a letter, explaining BOTH the advantages and disadvantages of privatising all New Zealand secondary schools.

Once you've written this letter, paste it onto the blog as a reply.
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