06-27-2022, 02:36 PM
Air Services Australia (ASA) is another example of the failed concept of a so called Government Business Enterprise (GBE).
This concept goes back to the Thatcher era as a clever distortion of the UK’s Prime Minister Margaret Thatcher (1979 to 1990) private enterprise strategy. With her leadership the UK government got out of certain state run businesses in the interests of efficiency and value through competition. The UK’s recognition of the advantages of free enterprise has echoes right through to the present.
The distortion in governance comes about by a put up policy in Australia, no doubt promoted by senior echelons of the Public Sector, used to be known as the Public Service (PS), that is that certain arms of government, formerly the preserves within Departments with Minister at head, become statutory authorities. The idea being that they would distance Ministers from responsibility and provide much of their budget from the industry to be regulated.
Sounds great, relieve the Minister from responsibility and de-couple the salaries from regular PS scales and be sure of plenty of revenue to be extorted from the industries regulated because these GBEs are monopolies.
Because they have no competition and pretend to be semi commercial they can pay themselves whatever they like, or can pay themselves with a straight face. Note new CASA CEO massive pay increase with no explanation forthcoming.
In the case of ASA or the Civil Aviation Safety Authority (CASA) there’s nothing to prevent bonuses such as the head of ASA is entitled to. One can imagine that by taking more fees from the aviation industry this might trigger such bonuses, but reduce or prevent industry growth against the National interest.
This concept goes back to the Thatcher era as a clever distortion of the UK’s Prime Minister Margaret Thatcher (1979 to 1990) private enterprise strategy. With her leadership the UK government got out of certain state run businesses in the interests of efficiency and value through competition. The UK’s recognition of the advantages of free enterprise has echoes right through to the present.
The distortion in governance comes about by a put up policy in Australia, no doubt promoted by senior echelons of the Public Sector, used to be known as the Public Service (PS), that is that certain arms of government, formerly the preserves within Departments with Minister at head, become statutory authorities. The idea being that they would distance Ministers from responsibility and provide much of their budget from the industry to be regulated.
Sounds great, relieve the Minister from responsibility and de-couple the salaries from regular PS scales and be sure of plenty of revenue to be extorted from the industries regulated because these GBEs are monopolies.
Because they have no competition and pretend to be semi commercial they can pay themselves whatever they like, or can pay themselves with a straight face. Note new CASA CEO massive pay increase with no explanation forthcoming.
In the case of ASA or the Civil Aviation Safety Authority (CASA) there’s nothing to prevent bonuses such as the head of ASA is entitled to. One can imagine that by taking more fees from the aviation industry this might trigger such bonuses, but reduce or prevent industry growth against the National interest.