Innovative Synergies Malcolm Moore JP BE(Elect.) E: mmoore@bigpond.net.au P: 02 9440 0541
The Privatisation Circle Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle There are two diametrically different Business Model mindsets: Competitive Business. Infrastructure Business. These two Business Model mindsets use each other to provide a wealthy and sustainable economy. Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle There is an inherent problem! The Competitive Business mindset sees the “rivers of gold” in the Infrastructures; plunders the Infrastructure Business. The Competitive Business mindset runs the Infrastructures into the Ground, concurrently killing the Infrastructures and the Nations’ GDP. Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Killing Feasting Hunting Competitive Business Awakening Decaying Infrastructure Business Realising Growing Rebuilding Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Awakening Essential Service is identified, established, built and well maintained. Infrastructure progressing very efficiently, taken for granted. Private Sector Recognises massive Money Flows in Infrastructure. Awareness of Covert Greed and Envy from within the Private Sector. Successive Governments seduced, Ministers compromised. Inquiries Established, Efficiency Experts call for “Restructure”. Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Killing Feasting Hunting Competitive Business Awakening Decaying Infrastructure Business Realising Growing Rebuilding Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Hunting Successive Governments Seduced, Ministers Compromised. Sub-Department Commissions de-populated of key staff. Economics subjects re-written to exclude “Infrastructure Business”. Inquiries Established, Efficiency Experts call for “Restructure”. Commissions Created to foster increased Competition (e.g. ACCC, PC etc). Department Heads replaced by non-Australian Business people. Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Killing Feasting Hunting Competitive Business Awakening Decaying Infrastructure Business Realising Growing Rebuilding Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Killing Media involvement to badmouth (Efficient) Infrastructure practices. Consultants called in to favour Commercialising Infrastructure. Select International examples used to position Privatisation of Infrastructure. Local Companies restructure themselves to include Infrastructure. Laws Changed to “Fire Sale” the Infrastructure to Privatised Businesses. Businesses move in to Purchase or Control Government Infrastructure. Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Killing Feasting Hunting Competitive Business Awakening Decaying Infrastructure Business Realising Growing Rebuilding Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Feasting Infrastructure components sold separately to create “Competition”. Infrastructure pieces now Floated on the Stock Market. Share prices rocket, (falsely) justifying Privatisation. Board and Executive payments geared on soaring Stock Values. Kickbacks and Dividends paid to Shareholders, Brokers, Financiers. Board sells Privatised Infrastructure to Overseas Interests. Board and Executive hands over to new Members / Owners. Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Killing Feasting Hunting Competitive Business Awakening Decaying Infrastructure Business Realising Growing Rebuilding Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Decaying End User Prices rise considerably over time, crippling National GDP. Products are limited to high Return on Investment (ROI) areas only. Services are limited to a minimum overhead situation to maximise profits. Infrastructure in Areas of Lower ROI is let run down. Infrastructure dependent Businesses in Low ROI areas go insolvent. Share Prices tumble as Privatisation has ruined the Infrastructure. Infrastructure now in need of replacement as minimum repairs have failed. Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Killing Feasting Hunting Competitive Business Awakening Decaying Infrastructure Business Realising Growing Rebuilding Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Realising Select Inquiries established to provide “Lip Service” on complaints. Business and Community sentiment concern turns to Anger. Government injects private funding to offset Constituent (Public) Anger. Funding put into Competitive Business mindset “initiatives”. Piecemeal “initiatives” fail to fix the Infrastructure problems. Infrastructure now in multiple Private hands and fractionated. Government is overthrown because of incorrect Hard-Right policies. Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Killing Feasting Hunting Competitive Business Awakening Decaying Infrastructure Business Realising Growing Rebuilding Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Rebuilding Inquiries identify wreckage of run down Infrastructure costing GDP. Select Inquiries realise Infrastructure Business Mindset required. Government Finances rebuilding of wreckage Infrastructure. Government sets up an Infrastructure Business “Commission”. Private Companies in shame “Gift” Infrastructure to the Commission. Shareholders lose their private Investments, Directors are paid out. Commission aligns all Competing Infrastructure fragments together. Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Killing Feasting Hunting Competitive Business Awakening Decaying Infrastructure Business Realising Growing Rebuilding Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Growing Commission employs Experienced Engineers and Technical Staff. Commission sets a long term (10 – 30 years) reconstruction plan. Contractors replaced by long-term employment staff. Co-operation proves to be far more efficient that Competition. New Infrastructure takes 10 to 30 years to re-build. Areas of low ROI now become profitable for Commercial Businesses. The Essential Service is growing and making Competitive Business wealthy. Essential Infrastructure is now back in place! Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Killing Feasting Hunting Competitive Business Awakening Decaying Infrastructure Business Realising Growing Rebuilding Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle Infrastructures are the Wholesale Essential Services (“Utilities” in USA-based flawed Economics). Infrastructure Business has its place in providing very efficient wholesale Essential Services - by utilising Economy of Scale. Competitive Business has its economically efficient place in providing Competitive Discretionary Retail Product Delivery. Innovative Synergies Copyright © Malcolm Moore 2014
The Privatisation Circle The Theory of the Second Best: “Any form of Competition is Second-Best (much less efficient) than Co-operation”! (Livingstone, Lipsey 1956) Infrastructure Competition is the Most Inefficient Economic Scenario possible! Innovative Synergies Copyright © Malcolm Moore 2014
Innovative Synergies Malcolm Moore JP BE(Elect.) E: mmoore@bigpond.net.au P: 02 9440 0541