Privatisation sole incentive is the maximisation of profit

 

Statement of Georgos Loucaides, AKEL C.C. Spokesperson

AKEL C.C. Press Office, 20th January 2016, Nicosia

The Government’s insistence on the implementation of privatizations is based solely on its dogmatic views on the need to abolish the role of the State in the economy.

Recent studies and the experience of other countries, but also the given situation so far in Cyprus, show that neither will consumers benefit from privatizations, nor will the public interest be served. It is the government itself which has just recently proceeded to an increase in the fees in the ports, so as to prepare their privatization. Accordingly, the prices of airfares after the closure of Cyprus Airways have gone up sharply. The experience with fuel, the banks and other sectors of the economy in Cyprus where there are private monopolies and oligopolies, is verifying the existence of the distortion of the market, of cartels and increased charges for consumers.

It is clear that the interests of the consumers and public interest in general could be served much better by healthy public organizations and utilities, rather than by private companies whose sole incentive will be the maximization of profits.