Act have adopted the New Zealand Initiative's privatisation arguments. In doing so, they may be advocating for higher costs on households and businesses.
The NZ government is the source of the price level in NZD units. Hence when the NZ Gov pays more for goods or services that *directly* raises the price level, devaluing the currency, by policy choice (a complex mix of policies for sure), no markets involved. Markets settle relative prices afterwards.
One 'cost' of public assets is the capital charge which is a fixed % payment of the capital value of public assets. The budget allocation to government departments includes coverage for capital charges which are then repaid to the government.
Capital charges applying to Te Whatu Ora are $470 million for the 2023-2024 financial year, and expected to be $529 million in the 2024-2025 year. Money ostensively budgeted for Te Whatu Ora that is returned to the government, not spent on public health services.
The logic of capital charging is, according to neoliberal economic logic, that it means government departments pay a charge for the public capital used by the government department. Really it is book-keeping rubbish that reduces the amount available for public services.
Correct. Except I would drop the words "may be".
The NZ government is the source of the price level in NZD units. Hence when the NZ Gov pays more for goods or services that *directly* raises the price level, devaluing the currency, by policy choice (a complex mix of policies for sure), no markets involved. Markets settle relative prices afterwards.
The Public Works Act "offer back" to the original owner could make changing the ownership of Crown Land interesting .
Selling the Housing Corp and Rail to Fay- Rich in the 1990s only produced two big winners
🎯🎯🎯
One 'cost' of public assets is the capital charge which is a fixed % payment of the capital value of public assets. The budget allocation to government departments includes coverage for capital charges which are then repaid to the government.
Capital charges applying to Te Whatu Ora are $470 million for the 2023-2024 financial year, and expected to be $529 million in the 2024-2025 year. Money ostensively budgeted for Te Whatu Ora that is returned to the government, not spent on public health services.
The logic of capital charging is, according to neoliberal economic logic, that it means government departments pay a charge for the public capital used by the government department. Really it is book-keeping rubbish that reduces the amount available for public services.