Tuesday, 14 April 2009

Getting tomorrow's income today

It is really nothing more than increasing the debt under another name; the NSW Government is planning to sell off a licence to operate the State Lotteries Office for 30 years. An annual dividend of $xx million will  be swapped by state Treasurer Eric Roosendaal for a lump sum payment here and now. We used to call it selling off the family silver but these days the name is privatisation. The best the State's taxpayers can hope for is that a company will pay a premium for the rights in the belief that it can run the lotteries more efficiently than the current government authority. If that is so then what amounts to a loan will be at a lower interest rate than would be the case if the government simply went to the market and borrowed in an orthodox fashion.

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