Regulation Of Below Rail Infrastructure Assets In Queensland: What Can We Learn From The Canadian Experience?

7299 words - 30 pages

Regulation of Below Rail Infrastructure Assets in Queensland: What can we learn from the Canadian experience?

Stephen Mclay s2840946

Supervised by Alex Robson and David Rynne


Introduction p 3

Defining the economic principles of natural monopoly infrastructure assets and the benefits/costs of privatisation p 3

The pros and cons of direct regulation p 5

Where commercial negotiation has been successful and the difference between commercial negotiation with government owned corporation monopolies and private monopolies p 7

Current ...view middle of the document...

Defining the economic principles of natural monopoly infrastructure assets and the benefits/costs of privatisation

Monopolies arise when there is only one seller in the market, many buyers, no close substitutes for the product and barriers to entry into the market. (McTarggart, Findlay, Parkin, 2010) Barriers to entry can be distinguished as barriers created by government and structural barriers to entry. Governments create barriers to entry by granting exclusive rights to produce to the incumbent and use their legal power of coercion to prevent the entry of other firms. For example, creating and maintaining a monopoly franchise - a form of privatising national assets. Monopoly franchises are often granted to public utilities that provide services like gas, electricity and the railway lines. (Church J, Ware R, 2000)

Governments grant monopoly franchises to private suppliers for a number of reasons, including:

1. Improved efficiency and productivity- Monopolistic producers adopt a profit maximising stance (in order to satisfy shareholders) and in doing so, minimise costs and optimize output, achieving ‘productive efficiency’. Through the operation of effective competition, demand and supply are more optimally matched so consumers, producers and society in general benefit from ‘allocative efficiency’. (UNDP Bosnia Herzegovnia)

2. Fiscal gains- In the case of privatisation of publicly owned entities, in the short term, governments receive revenue from the sale of state assets which can be used to pay off national debt[1]. Governments also gain from the redistribution of rent, where the government uses legal restrictions to maintain entry barriers and set prices to provide a pool of profits to subsidize other services. (Church J, Ware R, 2000)

3. Lack of political interference- Governments are motivated by political pressures (i.e. the next election) more so than economic and business principles. For example, the state may employ a number of workers that is inefficient and be reluctant to reduce the workforce because of the negative publicity that comes with loss of jobs. The private sector is separated from this pressure, thereby negating that issue. (Pettinger. T, 2011)

However, these arguments do not apply purely to privatisation, but to the creation of effective competition, which is fundamentally limited in the case of natural monopoly. (UNDP Bosnia Herzegovnia)

A natural monopoly occurs when the technology or character of the industry are shaped so that a single producer can meet demand in a way that achieves the lowest cost and greatest social benefit.

The base assumption underlying these conditions is that entrance of other companies into the market would be a waste of the limited factors of production and would require excess levels of investment and the difference in marginal and average costs would lead to an aggressive rivalry between companies. In the worst case, this could mean a price war where...

Other assignments on Regulation Of Below Rail Infrastructure Assets In Queensland: What Can We Learn From The Canadian Experience?

Postconditioning And Protection From Reperfusion Injury: Where Do We Stand? Position Paper From The Working Group Of Cellular Biology Of The Heart Of The European Society Of Cardiology

250 words - 1 page Abstract Ischaemic postconditioning (brief periods of ischaemia alternating with brief periods of reflow applied at the onset of reperfusion following sustained ischaemia) effectively reduces myocardial infarct size in all species tested so far, including humans. Ischaemic postconditioning is a simple and safe manoeuvre, but because reperfusion injury is initiated within minutes of reflow, postconditioning must be applied at the onset of

Explore How Fitzgerald Presents The Buchanans And Their World In Chapter 1 Of ‘The Great Gatsby’ Through The Narration Of Nick Caraway. To What Extent Can You Understand His Feelings Of Confusion And...

1375 words - 6 pages “we ought to plan something”. Within the first chapter of the novel the reader can empathise completely with Nicks feelings as he drives away from East Egg feeling confused and disgusted. Characters within the first chapter, seen through Nicks judgement, are used by Fitzgerald to elicit a range of responses from the reader. Daisy Buchanan, Nick Caraways cousin is constructed as an innocent coquet with fairy like qualities. Daisy’s voice is

To What Extent Has Modern Liberalism Departed From The Ideas Of Classical Liberalism?

698 words - 3 pages the individual and as such they should be left alone to make their own choices. In this way classical liberals were heavily influenced by the natural rights theories of John Locke and Thomas Jefferson. Jefferson claimed that we were born with inalienable rights and therefore no individual or government had the right to take these away. Freedom from constraints is therefore an essential condition for exercising these rights. In practise, this has

Examining The Ways Immigrants From Former Ussr Experience And Cope With Workplace Aggression Qualitative Study

6576 words - 27 pages perpetrator for a while to gather the thoughts could help victims in some cases. I expected that treating aggression in a constructive way would reduce it at least somewhat; however, even in the cases when the victims tried to solve the problem constructively, the actions of the victim did not stop or decrease the aggression. Learning from experience When being asked what they would do in the same situation, but having the experience of

The Things In Life Makes Us Who We Are

585 words - 3 pages become a mother. I had my first child coming right out of high school, and I was a hard head. Again, the things in life make us who we are. I had a responsibility now. All in all, I had had ups and downs as a single mother when it came to jobs and housing to support my family. I had no one to run to or confide in, all I had were my babies and myself. I had to learn to do what it takes. I overcame many challenges that a normal teenager would yet to

Submit A 4 Page Paper Discussing Three Types Of Cybercrime Risks And How Organizations And Individuals Can Protect Themselves From These Schemes. Please Identify At Least One Real-Life Exmaple And...

1097 words - 5 pages Introduction David S. Wall, author of Cybercrime: The Transformation of Crime in the Information Age, once said, “In a nutshell, we are shocked by cybercrime, but also expect to be shocked by it because we expect it to be there, but – confusingly – we appear to be shocked if we are not shocked (if we don’t find it)!” In today’s society, cybercrimes are considered a greater threat than ever. Computer crime can be defined as a crime that is

What Are The Main Types Of Agency That Organisations Use In Recruitment? What Are Their Major Costs And Benefits?

3590 words - 15 pages Office. We know that migrants workers can help to the ageing population of UK, as they help to fill the vacancies in sectors such as fishing, catering, NHS etc. However some temp agencies are profiting from offering illegal contracts to these workers, but that I will explain later.. The agencies in UK do not have an obligation to register with official body or be audited, what jeopardise the good name of market. One can see is hard to recognize

To What Extent Did The Creation Of The Empire In 1804 Mark A Significant Change In Napoleon’S Rule Of France?

1319 words - 6 pages To what extent did the creation of the Empire in 1804 mark a significant change in Napoleon’s rule of France? The empire was created in 1804 where Napoleon was crowned the hereditary emperor of France by the Pope. His empire consisted of the pays réunis; land ruled by France and the pays conquis, which were satellite states ruled by the French that bordered France and gave them protection and safety from invasion. Despite becoming emperor in

Using Material From Item A And Elsewhere, Assess Functionalist Views Of The Role Of Education In Modern Society (20 Marks)

1181 words - 5 pages Using material from Item A and elsewhere, assess functionalist views of the role of education in modern society (20 marks) The consensus functionalist approach is just one of many that attempt to explain the role of education in modern society. Functionalism is based on the view that society is a system of interdependent parts held together by a shared culture or value consensus. Each part of society such as the family, economy and education

3. What Kinds Of Businesses Could Benefit From Switching To Salesforce And Why?

339 words - 2 pages 3. What kinds of businesses could benefit from switching to Salesforce and why? 3. What kinds of businesses could benefit from switching to Salesforce and why?3. What kinds of businesses could benefit from switching to Salesforce and why?3. What kinds of businesses could benefit from switching to Salesforce and why?3. What kinds of businesses could benefit from switching to Salesforce and why?3. What kinds of businesses could benefit from

In What Ways Does The Language And Imagery Of Antony’S Speech Demonstrate His Manipulation Of The Crowd?

677 words - 3 pages here from the words ‘most’, ‘unkindest’, and ‘all’. By using these words, Antony shows a great deal of how much Brutus deceived Caesar. When Antony first talks to the crowd, it is obvious how much he is praising Brutus and the conspirators, but towards the end of his speech, he tells everyone of the wrong they have done. A great amount of irony is created here, and we see this when Antony says phrases like, ‘See what a rent the envious Casca made

Similar Documents

“Valuing Tangible Non Current Assets Is Subjective And Complex And Can Therefore Result In Different Companies Valuing Similar Assets Very Differently”

1373 words - 6 pages “Valuing tangible non-current assets is subjective and complex and can therefore result in different companies valuing similar assets very differently” Financial reporting attempts to measure the worth of assets, a concept that is inherently subjective and arbitrary. We can never know the true value of an asset, and rather than being an objective truth, valuations are always biased. Financial reporting is used for different purposes by

What Constitutes The Basis For Trade? Also What Are The Gains From Trade In Terms Of Production And Consumption?

963 words - 4 pages International Trade and Competition What constitutes the basis for trade? Also what are the gains from trade in terms of production and consumption? The purpose of this report is to survey what constitutes the basis for trade in an international perspective and to discuss the gains in relation to production and consumption. By examining a range of recently published journal articles, magazine articles and internet sites on the topic of

What Company Can Benefit From Shared Value And Why?

292 words - 2 pages For example I came across an article about how Starbucks, the worlds largest coffee company leveraged strategic CSR initiatives to gain competitive advantage to secure premium coffee from Etiopia and gain successful market access into India. Starbucks faced the risk of losing Starbucks Fair Trade coffee market share in the long-run. As a solution to this problem Starbucks developed partnerships to invest in coffee farmers in Ethiopia. As a

The Experience Of Health & Illness

3041 words - 13 pages settle in other nations imbibe the new culture; while at the same time strive to preserve their own. Culture is necessary to establish an order and discipline in the society. It is not only a means of communication between people, but also creates a feeling of belonging and togetherness among people in the society. [Assessed online] what is culture (2009) We all learn from