Privatisation of Airports, Tunnels, MTR, Kai Tak, HK Coliseum, Hong Kong Post, etc

[hullexile]

those assets are still making profits.

They are still worth something.

We should sell them while we still can before it's too late.

So you expect the deficit to disappear but you also expect these profits to disappear so we need to sell now?

What exactly are you expecting to happen to the economy?

[jimbo_jones]

So .. sell low and buy high?

And allow the new monopoly owner maximise profits over the short term?

Lots of examples of natural monopolies being privatized and costs go up, service goes down. And poorly structured requirements means regulator has no teeth to enforce anything.

For natural monopolies, there is no point in building a parallel electrical or gas distribution network, or building a parallel MTR line. In theory you could have competing train operators, but it would be challenging to operate. Maybe separate lines and see who does better.

If the monopoly is broken down, then free markets with open competition generally perform better, provided rules of the game are clear.

ymmv.

[nivek2046]

how about selling those assets to some SOEs, SASAC or CIC with options to buy back within 5 years at predetermined prices?

or how about issuing some RMB bonds with those assets as collaterals?

[East_coast]

how about selling those assets to some SOEs, SASAC or CIC with options to buy back within 5 years at predetermined prices?

or how about issuing some RMB bonds with those assets as collaterals?

Are you suggesting the HKSAR government has a bad track record at investing and law making?

I am sure you can point to a large infrastructure projects or new set of laws that have boosted growth.

Anyway, why do you think the tax take will match the new higher spending approach of the current administration?

[Mat]

how about selling those assets to some SOEs, SASAC or CIC with options to buy back within 5 years at predetermined prices?

or how about issuing some RMB bonds with those assets as collaterals?

Which Business School did you go to? [asking for a friend]

[nivek2046]

Which Business School did you go to? [asking for a friend]

Tsim Sha Tsui School of Commerce.

and you?

[ByeByeEngland]

The government needs some cashs urgently. Can we privatetise something to get cash?

how about some dental clinics? or hospital? some housing estate?

Look at the ‘success’ that UK privatisation brought. No to all of the above.

Streamline the civil service, get some experts in (non quango directly employed) to mimimise future whit elephants, freeze tax allowances and raise the tax. A minor tweak to the latter would be enough and should not cause a brai drain versus other parts of Asia. Sure there’s the tax free Middle East but you need more than just zero tax to attract people there.

[aw451]

The government needs some cashs urgently

It doesn't, it still has half a trillion in reserve.

those assets are still making profits.

They are still worth something.

We should sell them while we still can before it's too late.

So your proposal amounts to privatise the profits, socialise the losses. Sounds like a great way to throw HK's economy down the toilet, like the UK who tried this in the past. This short term selling off public assets which actively contribute to the coffers would ensure that the deficit becomes structural. We're not in a position where we urgently need cash so why kill the golden gooses for the sake of it.

[mrgoodkat]

Just ask daddy for some cash.

[East_coast]

So your proposal amounts to privatise the profits, socialise the losses. Sounds like a great way to throw HK's economy down the toilet, like the UK who tried this in the past. This short term selling off public assets which actively contribute to the coffers would ensure that the deficit becomes structural. We're not in a position where we urgently need cash so why kill the golden gooses for the sake of it.

I would suggest the situation in the UK in the late 70's was very different from HK in the mid 2020's. The UK experiment of nationalization had in general failed. Car industry decimated, telecoms way behind more open markets (5 weeks to get a phone connection), railways decrepit and declining ridership, water industry a bottomless pit of leaky pipes etc.

HK was a very early adopter of contracting out services to the private sector. The tunnels are not operated by the government they are operated by the private sector for the government just like KMB always 'wins' the franchise for the government designated bus routes etc. Some emotive or prone to abuse industries should possibly stay government run but most can be contracted out or privatized.