You'd better Privatize... (?)

So, lately there has been a lot of talk in Ontario about privatization.

Basically throughout all levels of government, the selling off of crown corporations has suddenly become a hot topic.

Ignoring, for obvious reasons to those who know where I am employed, the provincial scene I'd like to focus on the municipal level... i.e. The City of Toronto.

We are in the midst of a race for mayor (wouldn't a great future post discuss Adam Giambrone as a surrogate for the sleaze prevalent in politics these day?) and most, if not all have come out in favour of selling city assets to help us through this "unprecedented economic turmoil" and the sky high deficits it has generated.

Bad idea? In my opinion, yes.

It seems to me that the push for a private TTC stems from the belief that private business' are, by definition, "more efficient". And that the free market will force it to "work better or perish".

What if our TTC were more efficient... the question is more efficient for who? I would argue that in terms of service and price not much would change. I could definitely see the operating costs of a privatized TTC being much, much less. And, potentially the profit being much much more.

But it is important to consider WHERE those cost savings and extra profits would come from.

I bet, hands down, that right away the cushy union jobs that the TTC currently generates would be absolutely torn apart.

Some people would be ok with that. There is a lot of anger in this city about the pay and benefits that TTC employees get. I usually turn the question "why do they get such high pay and benefits" around so that's it "wait a minute, why don't I get that great pay and benefits?". I bet it is so that the CEO of your company can live in his $10 million mansion!

So, a private TTC would cut costs by turning their jobs into minimum wage position? maybe not that bad but you bet they would fight to turn their employees into a McDonalds on wheels type setup.

How about profits? Well, you know that route that is always half empty? GONE. The transit network is about to get a whole lot smaller. Sure, grandma takes that bus to her appointment every week... but she can afford a cab, right? Government run transit is accountable to providing service to the citizen. Private transit has no accountability except profit.

So how, exactly is privatization supposed to help us, the consumer? You know they are not going to drop fares because people already pay. And, we know some routes are not profitable, how is service going to be improved by closing routes?

What about the free market? If New Bus Company A is doing a crap job, wouldn't new bus company b be an option? Let the market decide, right?

That's a nice thought. And, you know what? I agree... if we are talking about neighborhood dry cleaners, or maybe the local barber. If one does a shitty job, no prob go to the next guy. But would that concept extend to transit?

Well, let's perform a thought experiment here... imagine, for just a moment, that TTC IS for sale. It must be split between at least two companies. A furious bidding war ensues. The eventual victors...

Bell and Rogers.

I don't know how much you are paying for internet/ cable/ phone but if the "free market" in Ontario is any indication, well, I imagine you are getting screwed.

I really don't know many people who don't complain about these two companies. Whether it's the complete lack of customer service, the draconian contracts, or the super high costs everyone has at least one thing to say about the telecommunications industry.

So how would applying the same model to the transit industry make things better?

P.S. Highway 407, anyone?