• The post you are reporting:
   
  There is no such thing as a free lunch Keith - you pay for everything one way or another. Better the users of a service pay for it than those who do not. But you are mixing up two things....under contracting out (which is what you refer to) a business will produce a proposal in competition with others offering to provide a particular service at a given price for a set period. Tenderers are judged based the cost and the levels of service and user charges that they are to make and are awarded the contract accordingly. It works very well as a means of keeping down costs to the public purse and maintaining or improving the service to the public - provided the client side get the contract supervision and any penalty terms correct of course. This is not a subsidy for a company but a subsidy for a service that the company provides at a lower cost than might otherwise be the case. This is a way of keeping uneconomic services going, such as many rail services, - whether we should keep such uneconomic services going is a separate argument that can only be had on a case by case basis.

Report Post

Your Name

Reason