MercoPress. South Atlantic News Agency

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  ChrisR

  I think I am correct in saying that Fernando Lorenzo was the Minister who congratulated UTE, the government owned monopoly 'in charge of the electricity supply' (an oxymoron if ever there was one) of offsetting rising costs “by managing to increase prices”.
  
  This is the economics of the madhouse. No thought is ever given to reducing the costs of any of the government monopolies AND if he wants a better qualified workforce why not reduce the number of government employees (thus reducing fiscal drag) and have them employed by the commercial sector OR are they not qualified also? If that is the case why does the government employ them anyway?
  
  If the changes being made were started by the previous government perhaps it is time for another change.

  Jun 21st, 2012 - 07:08 pm - Link - Report abuse 0
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  rnbgr

  In countries that have a history of subsidizing energy it is very difficult for goverments with state owned energy companies to increase prices. Witness what happened in Bolivia and other countries when they tried to increase prices to try to cover costs. Their supporters revolted. Countries that privatize state owned energy companies always face pressure to re-nationalize because governments want to keep energy costs down to stay in office

  Jun 21st, 2012 - 09:56 pm - Link - Report abuse 0
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  ChrisR

  2 rnbgr
  
  So, we're bollocksed then?
  
  More and more government employees and less 'able' people who earn ALL the money. Clue: government employees DO NOT EARN money (they may WORK for their money): they produce NOTHING.

  Jun 22nd, 2012 - 12:07 pm - Link - Report abuse 0
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  rnbgr

  3 Christ
  
  I don't disagree with you on adding government employees. What I was trying to say (probably poorly) that a politician complimenting a state energy company for price increase is not unreasonable in countries that subsidize energy.
  
  Even authoritarian states have reducing/eliminating energy subsidies. That's why investors should look really hard at taking over or privatizing large state energy enterprises that have been subsiding costs, the odds are sooner or later some politician is going to suggest the state is being exploited want either change the terms or nationalize it.

  Jun 22nd, 2012 - 08:31 pm - Link - Report abuse 0
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  ChrisR

  4 rnbgr
  
  But why do they subsidize energy? Who pays for the subsidies? These deluded politicians seem to think either 'the Government pay' or the people won't realise they are paying for it in taxes: IVA, etc. We must not forget that the government can only SPEND our tax money, they do NOT earn anything.
  
  No, the real problem is the confusion throughout society as to who pays for what. There is ONLY ONE RULE: if the government are spending money, they are spending YOUR MONEY.
  
  This minister would be best advised to have a walk around a UTE / OSE / ANCAP / ANTEL / etc. operating base and an office WITH HIS EYES OPEN and see for himself the 'lethary' and 'oh, is that really a problem' attitude for himself.
  
  The REAL problem is that these employees, from Ministers through all levels of these companies DO NOT RECOGNISE CUSTOMERS. They think the public (their customers and the people paying their wages) are a nuisance to be ignored while they finish chatting to their ,mates, about last night whatever.
  
  I would imagine, from personal business management experience with the government staffing levels that HALF of these people could be transferred to more productive private enterprises.
  
  That would reduce fiscal drag, increase tax revenues by an order of maginitude, and increase exports. Win-win alround.

  Jun 23rd, 2012 - 11:57 am - Link - Report abuse 0
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