Bob Howard, “The Discipline of Necessity,” The Optimist, July-August, 1985, p. 9. With thanks to Nadia Bloom.
The Transport Planning Consultants Travers Morgan Pty. Ltd., recently prepared a report for the Bus & Coach Association of New South Wales, comparing the operations of private bus services with the government run Urban Transit Authority.
The results will probably surprise nobody, but it is nice to be able to put some authoritative figures to what everybody knows anyway.
For example:
- if private operators received the same level of government subsidy as the UTA, they could provide a free service, 24 hours a day, 7 days a week
- if the private sector ran the government buses, at current frequencies and fare levels, they would reduce the annual deficit from $100 million to $10 million
- UTA buses cost about $3.20 per kilometre to operate, private buses exactly half that amount
- every government bus that goes into service costs about $60,000 a year more to operate than a private bus
- the UTA employs one specialised mechanic for maintenance for every two buses, while private enterprise operators employ one mechanic for 10 buses
- for every UTA bus on the road there are 4.7 employees, compared to 1.4 employees per bus for the private companies
- the UTA suffers from high manning levels, sickness claims and workers’ compensation claims
Who would be brave enough to disagree if I suggest that investigators would turn up similar facts about other notorious government operators such as Telecom, Australia Post and the Main Roads Departments?
I might also add that the same basic disease is at work in the welfare and health systems, and, of course, the Trade Union Movement!
The problem with all these is that they have managed, by one means or another, to escape being subject to any final, external discipline. In the private sector this discipline is imposed by the absolute necessity of showing a profit. Any company that cannot do this does not survive for long. (The exception being, of course, situations where private monopolies or subsidies are granted by governments to private enterprises.)
The key to it all, however, is not so much profit, as the necessity for profit. Or, to put it another way, the absence of any guarantees. With no guarantees there is no choice. It is the necessity that makes it real, and imposes the discipline.
Its effect is as much psychological as anything. It affects the attitudes and values of the people concerned in ways they probably are not even aware of. Knowing you have no choice is a wonderfully simplifying force, as well as a powerful motivator and decision maker.
Private companies are efficient because they have to be. Government operations are not efficient because they do not have to be.
The continued existence of the UTA, Telecom, Australia Post, and the Main Roads Departments has been — at least until now — comfortably guaranteed. It is because we have in our well-meaning way tried to guarantee welfare, health care and — where the unions can manage it — job security, that we are finding the same intractable problems of inefficiency, waste and abuse that plague government businesses cropping up there. In all these cases there is no overall economic discipline because there is no necessity for it. The problem will not be solved until that fundamental flaw is corrected.
- Governments Consume Wealth — They Don't Create It
- Singo and Howard Propose Privatising Bondi Beach
- Singo and Howard Speak Out Against the Crackpot Realism of the CIS and IPA
- Singo and Howard on Compromise
- Singo and Howard on Monopolies
- Singo and Howard Support Sydney Harbour Bridge Restructure
- Singo and Howard on Striking at the Root, and the Failure of Howard, the CIS and the IPA
- Singo and Howard Explain Why Australia is Not a Capitalist Country
- Singo and Howard Call Democracy Tyrannical
- Singo and Howard on Drugs!
- Simpleton sells his poll philosophy
- Singo and Howard Decry Australia Day
- Singo and Howard Endorse the Workers Party
- Singo and Howard Oppose the Liberal Party
- Singo and Howard Admit that Liberals Advocate and Commit Crime
- Up the Workers! Bob Howard's 1979 Workers Party Reflection in Playboy
- John Whiting's Inaugural Workers Party Presidential Address
- John Singleton and Bob Howard 1975 Monday Conference TV Interview on the Workers Party
- Singo and Howard on Aborigines
- Singo and Howard on Conservatism
- Singo and Howard on the Labor Party
- Singo, Howard and Hancock Want to Secede
- John Singleton changes his name
- Lang Hancock's Foreword to Rip Van Australia
- New party will not tolerate bludgers: Radical party against welfare state
- Singo and Howard introduce Rip Van Australia
- Singo and Howard on Knee-Jerks
- Singo and Howard on Tax Hunts (Lobbying)
- Singo and Howard on Rights
- Singo and Howard on Crime
- Singo and Howard on Justice
- Singo and Howard on Unemployment
- John Singleton on 1972's Cigarette Legislation
- Singo and Howard: Gambling Should Neither Be Illegal Nor Taxed
- Workers Party Platform
- Singo and Howard Join Forces to Dismantle Welfare State
- Singo and Howard on Business
- Singo and Howard on Discrimination
- Singo and Howard on the Greens
- Singo and Howard on Xenophobia
- Singo and Howard on Murdoch, Packer and Monopolistic Media
- Singo and Howard Explain that Pure Capitalism Solves Pollution
- Singo and Howard Defend Miners Against Government
- Singo and Howard on Bureaucracy
- Singo and Howard on Corporate Capitalism
- The last words of Charles Russell
- Ted Noffs' Preface to Rip Van Australia
- Right-wing anarchists revamping libertarian ideology
- Giving a chukka to the Workers Party
- Govt "villain" in eyes of new party
- "A beautiful time to be starting a new party": Rand fans believe in every man for himself
- Introducing the new Workers' Party
- Paul Rackemann 1980 Progress Party Election Speech
- Lang Hancock 1978 George Negus Interview
- Voices of frustration
- Policies of Workers Party
- Party Promises to Abolish Tax
- AAA Tow Truck Co.
- Singo and Howard on Context
- Singo and Howard Blame Roosevelt for Pearl Harbour
- Singo and Howard on Apathy
- Workers Party is "not just a funny flash in the pan"
- Singo and Howard on Decency
- John Singleton in 1971 on the 2010 Federal Election
- Matthew, Mark, Luke & John Pty. Ltd. Advertising Agents
- Viv Forbes Wins 1986 Adam Smith Award
- The writing of the Workers Party platform and the differences between the 1975 Australian and American libertarian movements
- Who's Who in the Workers Party
- Bob Howard interviewed by Merilyn Giesekam on the Workers Party
- A Farewell to Armchair Critics
- Sukrit Sabhlok interviews Mark Tier
- David Russell Leads 1975 Workers Party Queensland Senate Team
- David Russell Workers Party Policy Speech on Brisbane TV
- Bludgers need not apply
- New party formed "to slash controls"
- The Workers Party
- Malcolm Turnbull says "the Workers party is a force to be reckoned with"
- The great consumer protection trick
- The "Workers" speak out
- How the whores pretend to be nuns
- The Workers Party is a Political Party
- Shit State Subsidised Socialist Schooling Should Cease Says Singo
- My Journey to Anarchy:
From political and economic agnostic to anarchocapitalist - Workers Party Reunion Intro
- Singo and Howard on Freedom from Government and Other Criminals
- Singo and Howard on Young People
- Singo and Howard Expose how Government Healthcare Controls Legislate Doctors into Slavery
- Singo and Howard Engage with Homosexuality
- Singo and Howard Demand Repeal of Libel and Slander Laws
- Singo and Howard on Consumer Protection
- Singo and Howard on Consistency
- Workers Party is born as foe of government
- Political branch formed
- Government seen by new party as evil
- Singo and Howard on Non-Interference
- Singo and Howard on Women's Lib
- Singo and Howard on Licences
- Singo and Howard on Gun Control
- Singo and Howard on Human Nature
- Singo and Howard on Voting
- Singo and Howard on
Inherited Wealth - Singo and Howard on Education
- Singo and Howard on Qualifications
- Ron Manners on the Workers Party
- Singo and Howard Hate Politicians
- Undeserved handouts make Australia the lucky country
- A happy story about Aborigines
- John Singleton on Political Advertising
- Richard Hall, Mike Stanton and Judith James on the Workers Party
- Singo Incites Civil Disobedience
- How John Singleton Would Make Tony Abbott Prime Minister
- The Discipline of Necessity
- John Singleton on the first election the Workers Party contested
- Libertarians: Radicals on the right
- The Bulletin on Maxwell Newton as Workers Party national spokesman on economics and politics
- Singo and Howard: Australia Should Pull Out of the Olympics
- Singo and Howard Like Foreign Investment
- Mark Tier corrects Nation Review on the Workers Party
- The impossible dream
- Why can't I get away with it?
- The bold and boring Lib/Lab shuffle
- Time for progress
- The loonie right implodes
- Max Newton: Maverick in Exile
- John Singleton on refusing to do business with criminals and economic illiterates
- Censorship should be banned
- "Listen, mate, a socialist is a bum"
- John Singleton on Advertising
- John Singleton on why he did the Hawke re-election campaign
- Sinclair Hill calls for dropping a neutron bomb on Canberra
- Bob Howard in Reason 1974-77
- John Singleton defends ockerism
- Singo and Howard talk Civil Disobedience
- The Census Con
- Singo and Howard Oppose Australian Participation in the Vietnam War
- Did John Singleton oppose the mining industry and privatising healthcare in 1990?
- Bob Carr in 1981 on John Singleton's political bent
- John Singleton-Ita Buttrose interview (1977)
- King Leonard of Hutt River Declares Defensive Just War Against Australia the Aggressor
- Singo says Lang Hancock violated Australia's 11th commandment: Thou Shalt Not Succeed
- Singleton: the White Knight of Ockerdom
- John Singleton bites into Sinclair Hill's beef
- Save Parramatta Road
- 1979 news item on new TV show John Singleton With a Lot of Help From His Friends
- Smoking, Health and Freedom
- Singo and Howard on Unions
- Singo and Howard Smash the State
- Singo and Howard on the big issue of Daylight Saving
- Come back Bob - It was all in fun!
- A few "chukkas" in the Senate for polo ace?
- Country Rejuvenation - Towards a Better Future
- Singo and Howard on Profits, Super Profits and Natural Disasters
- John Singleton's 1977 pitch that he be on a committee of one to run the Sydney 1988 Olympics for profit
- Thoughts on Land Ownership
- 1975 Max Newton-Ash Long interview on the Workers Party
- Hugh Morgan Demands Return to the Gold Standard and the Abdication of the RBA
- Viv Forbes Wins 1986 Adam Smith Award
- Exclusive Ron Paul Interview for an Australian publication in 1988
- The Discipline of Necessity

Vale Neville Kennard:Week 75 of Economics.org.au « Economics.org.au
June 5, 2012 @ 1:42 am
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