THE STATE SHOULD NOT OWN KIWIRAIL

The latest problems with the Aratere/Stena Alegra ( Hole in replacement’s hull adds to ferry tale of woe, April 10) and the $1 billion of taxpayers’ money given to KiwiRail point to the fact that it was a very bad idea to buy back the railway even back when the then Labour government bought it from Toll Ltd.

These issues and problems highlight the pitfalls inherent in state ownership of companies operating in a competitive business environment.

When things go right there is money to be made but when things turn south, like with Solid Energy Ltd and KiwiRail Ltd, any profits are quickly eroded, leaving an asset with little or no real value.

These risks are more properly taken by the private equity markets rather than the taxpayer, who has no real say in the direction of government investment.

Given the above, the Government’s decision to divest itself and the taxpayer of up to 49 per cent of the power companies and Air NZ was the correct decision.

If the Government keeps KiwiRail then we as taxpayers can look forward to many years of propping up what is really only a failing transport company that could be better managed by many seen by the nursing services as recently as a fortnight before her admission. It does not take long for patients to deteriorate fast.

We have had reports of the elderly being coated in faeces from quite reputable care facilities. The nursing service could not act unless the patient agreed.

I find it totally unacceptable that various authorities condemned the family caregiver. of our private transport operators. LES NEWMAN

Tawa She needed support not verbal abuse from the authorities. RUTH BURTON

Petone