A recent report from the Australian productivity commission has suggested that the sale of $61 billion of Australia's public assets in the last decade has often led to 'more bureacracy, regulation and inefficiency'.
Economists Prof King and Dr Pitchford:
"Privatisation can create a new range of government bureacracy that exceeds any burden under public ownership" [ie LESS efficient]
"It is simply stated that public ownership is less efficient than private ownership. But there is little analysis of the source of this efficiency or any potential benefits that public ownership may create which could offset this inefficency"
"much of the debate on privatisation involves rhetoric rather than research"
"When private and public sector managers have similar incentives and objectives, performance differences are less obvious"
"If it is difficult to regulate a privatised firm and this firm can engage in undesirable practicces then public ownership...may be prefferred".