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Privatisation

S/E/231. Britain's experience of privatization shows that there is a conflict between protecting shareholders interests and improving the performance of public utilities. Discuss.

WORDS:: 3700
DATE:: 2010
PRICE:: 39.99 GBP

The paper uses the privatization experiences of the telecommunications, gas and electricity industries to assess the potential of conflicts of interest between those that own the companies and those that use their services. It is argued that whilst offering increased choice for the public and efficiencies in the services delivered, it has not always resulted in any cost savings being passed through to the users despite growing profits. Shareholders primary concern is seen as maximizing profit with a minimum expenditure of time, effort and resources, but the fact that shareholders also feel both pain and gain is cited as a natural characteristic of any institution, not just privatized ones.

KEYWORDS: Privatization, New Public Management, public utilities, shareholders, public performance, public utilities, government, politics, economics, profitability, competitive market, competition, business, value for money, conservative government, conservatives, industry, industries, monopolies, commercial, telecommunications, gas, waste, electricity, water, monitoring, regulation, national power, powergen, national grid company!,