urmston said:
Nationalisation is never a good idea.
I think that's subjective. As I posted previously, monopoly pricing is really only to the detriment of consumers, nationalised or not. There are some industries that I think should be kept out of the hands of the government, however there are others which I think the government can potentially create a better service. Whether they will or not, is again, up for debate.
However, the point I'm trying to make is that the way the rail service runs at the moment, and I can only argue from the line I take, is effectively allowing monopoly pricing. One operator, inelastic (and oversubscribed demand). Even just one more operator on that line would change the dynamics of pricing hugely. However, I see no sign of that; I imagine there are relatively high barriers to entry, possibly even regulations that don't allow an other service on the same line, I don't know. However, as it stands, we're stuck with the one service.
urmston said:
The public sector always costs a lot, mainly because of the culture of good wages, fantastic pensions and generous terms and conditions for its employees. Lack of competition causes complacency and poor service.
I don't know enough about the salaries in the public sector to be able to give any insight, to be honest.
However, on your second point, complacency, poor service (etc) are certainly not restricted to the public sector. The private sector suffers from a great deal of wastage, huge inefficiency and cronyism as well. A chap called Jensen has written a numerous (too many) papers on the subject of disconnect between firm managers and firm owners (i.e. shareholders). Effectively stating that managers and shareholders have different incentives; the former often have short-termism, the latter less so. Look at the number of shareholder revolts, or the number of public firms that were open to Leveraged Buyouts over the past few decades - this isn't because debt is better, its because people believe that a different capital structure can improve efficiencies.
urmston said:
We all remember how New Labour nearly bankrupted the country by vastly expanding the inefficient, nationalised, state employed sector of the economy. This promise about rail nationalisation is just more of the same.
I don't really see it like that. I'm sure there were a lot of instances where government backed initiatives have failed, but I'm not certain that's exclusively the Labour party.
Britain has problems. Huge projected future liabilities means governmental spending will go up unless there is a large shift in either immigration or wholesale pension and medical reforms. Labour party are not the exclusive owners of inefficiency and lax due diligence. Again, I think there incentive system is wrong.