Asciano boss cautions on privatisation downsides
While the privatisation of Australias ports gathers pace, the head of ports operator Asciano fears the Australian economy may be suffering some damage.
Chief executive John Mullen said there may be short-term benefits from selling public assets but long-term, there could be repercussions.
Consortia who buy into ports have charged high rents to stevedores in order to guarantee their return on investment. Rental costs at one port had jumped 350%, said Mr Mullen. This in turn forced operators to pass costs on to importers and exporters.
“It starts to become a tax on trade,” he told a business lunch. “Governments just want to get a fantastic price for it and use those funds to develop other things in the state and there is nothing wrong with that.
“But if the owner has to put prices up to try get a return, ultimately the consumer or manufacturers or exporters are paying that bill.”
He suggested pricing controls should be included in the sales process.
