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Home » Corporate fails expose the big lie of privatisation’s benefits
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Corporate fails expose the big lie of privatisation’s benefits

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Corporate fails expose the big lie of privatisation’s benefits

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In the 1990s, one of the many lies we were told about privatising essential services such as Telstra was that the private sector was more efficient and responsive. Now we see the outcome of Telstra’s privatisation (“Anatomy of a telco meltdown: the carrier’s horror week”, July 11). A company that made $2.3 billion in profit with a CEO on an annual package worth over $6 million failed to provide essential services to Australians because it didn’t update one or more servers worth $22,000, which were 10 years past their replacement date. Telstra management ignored credible internal and external warnings about this fundamental issue while continuing to sack staff and send critical roles overseas. Like Optus, this debacle shows how fragile the systems are that we rely on every day. I am grateful that the NSW government legislated that Sydney Water cannot be privatised, as like most Australians now, I have no faith in private sector companies being competent, let alone acting in the public interest. Pauline Croxon, Undercliffe

Chief executive Vicki Brady facing the media on Friday after Telstra’s midweek outage.Louise Kennerley

Your recent article (“Telstra outage caused by redundant servers”, July 11) tells a sad story of the growing corporate focus on shareholder returns over customer care. After saving millions of dollars retrenching people, Telstra has potentially lost more than that in reputational value by scrimping on not replacing mission-critical technology that should have been updated earlier. How does that add up? Margaret Wright, Millers Point

Yet another telco fails the public, apologises and insists it will improve, never mind that we find out this was all due to poor maintenance, perhaps as a result of major staff reductions. Meanwhile, nine Telstra executives earn a combined $28 million. You would think that presiding over situations such as this and taking responsibility might just mean these people lose some of their inflated bonus; not so, says the CEO – that’s something for the board to consider. It’s about time the ruling class of all like companies realised they are not important in a crisis and, just maybe, the people made redundant and who maintain the system are the people who should be the most important and treated accordingly. Max Redmayne, Drummoyne

Another “successful for the shareholders” company run by a bean counter. Sounds like they need more engineers at the top of the management structure. David Prest, Thrumster

So the massive Telstra outage was caused by a server that turned back time by 20 years. Can I have one of those, please? Ian Adair, Hunters Hill

Illustration by Badiucao

Plea for a pacific Pacific

It is understandable that China’s launch of a missile would create tensions in the Pacific, and various leaders have indicated their concern, including our own (“Going ballistic”, July 11). In March, the United States launched a Minuteman missile from California that landed in the Marshall Islands, between Hawaii and Queensland. Those same leaders expressed concern then, except for the Australian ones. Australia appears to want a militarised Pacific, so long as it is US-led. The Pacific leaders, however, would prefer a demilitarised Pacific. We should support them. Tim Woodruff, Richmond (Vic)

Migration maelstrom

I think the present world disorder, so dear to the heart of China’s modern founder Mao Zedong, might be traced back to Britain’s decision to leave the EU principally because of its immigration fears (“Beijing’s shot across our bows”, July 11). Since then, we have had the ruthless anti-immigration policies of Donald Trump, Vladimir Putin’s land-grab invasion of Ukraine, brutal and disastrous wars in the Middle East and general global mayhem. All right-wing parties from One Nation to Reform UK are aggressively anti-immigrant. A credible religious leader, Pope Leo, rightly contends that while nations have a right to secure their borders, seeking asylum is not a crime but a fundamental human right. Compassion and common sense in this fractious area could go a long way to at least partly restoring a much-needed world stability. Bernard Moylan, Bronte

Elon Musk is facing more heat over his platform X.AP

Powers bow to Big Tech

X’s refusal to engage with the antisemitism royal commission showing “a shocking disregard for the Australian community” sums up perfectly how many in the community feel about our governments, both state and federal, as they roll over to Big Tech and the AI boom (“Musk and X under fire at antisemitism commission”, July 11). There is the same shocking disregard being shown daily as our land, resources and pretty much anything else that is precious in our lives is auctioned off to the highest bidder, while the community are sidelined. Labor is leaving us a legacy, that is certain, but it is not the one that is being negotiated behind these closed doors. Elizabeth Darton, Lane Cove West

They pollute; we pay

Andrew Forrest is right to highlight the fuel tax credit scheme as a clear reason why most big mining companies are dragging their heels on switching to cleaner operations via electric trucks (“Miners tap the brakes in race to decarbonise”, July 11). At present, BHP receives over $600 million a year and Rio Tinto $416 million from the Albanese government to support their use of climate‑polluting diesel. In total, this diesel fuel rebate is set to cost Australians about $13 billion a year. A $50 million cap on how much any one company can claim from the diesel rebate scheme seems fair. It might just help push big mining companies such as BHP towards the clean electric future we all need. Karen Campbell, Geelong (Vic)

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Tanderra Street Wahroonga

Housing fix works

My son and his partner have been trying to buy their first home for three years now. They had saved up a sizable deposit and diligently went to inspection after inspection – a gruelling and dispiriting experience. At every inspection, there would be groups of desperate first home buyers like themselves and equal numbers of cashed-up investors who would beat them every time by pushing prices way above the so-called price guide. The hopeful first home buyers were left to walk away crushed. Things have now changed. Last week my son and his partner finally succeeded in buying an apartment with competition coming only from other first home aspirants. Not an investor in sight. Of course, this is a sample of one, but to me it is a clear indication that the government’s new laws on negative gearing and capital gains tax are producing the desired effect despite the bellowing of self-interested naysayers. Alan Phillips, Mosman

I note that an increase of 734 per cent over 30 years equals a compound growth rate of 7.3 per cent per annum – still a healthy growth rate but not breathtakingly so (“Up 734% in 30 years: Is Sydney’s property super-cycle over?”, July 11). As a measure of housing affordability, the median house price is relevant. When used as a proxy for expected return on investment, however, problems arise. The statistic seriously overstates that return because it ignores any money spent upgrading, enlarging or renovating houses or on transaction costs such as selling commissions and stamp duty. It would be interesting to compare the median house in 2026 and the one in 1996. At a minimum, it probably has more bedrooms and bathrooms. Larry Case, Turramurra

Tragedy shows woe of poverty

Thank you, Perry Duffin and Kate Geraghty, for opening our eyes to the plight of Australia’s poor (“Community haunted by tragedy faces a reckoning”, July 11). Next time the prime minister visits his in-laws in Copacabana, he might like to take a detour around Wyong and Gorokan and observe the poverty of the Central Coast.

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Scenes from the Central Coast, where the community mourns the death of a boy.

In a rich country, it is a national shame that decades of neglect, failure to deal with domestic violence and drug abuse and homelessness has allowed the problem to grow to a point that it is impossible to solve. Dealing effectively with gambling would go a long way, but we also need social housing, an increase in benefits for single parents and better policing of illicit drugs. And let’s not forget our wonderful hospital staff confronted by distressed and violent people every day. We cannot afford them to burn out. State and federal governments need to stop blaming each other and accept that all levels of government must share responsibility for a problem that is endemic around Australia. For the prime minister to say “no one left behind” is insulting our intelligence. Carole Hayes, Newtown

Prime Minister Anthony Albanese and “Bushie”, aka Nikki Osborne, during their interview for the Bush Deep podcast.

Lewd chat avoidable

Why, asks Julia Baird, would the PM agree to be interviewed by Nikki Osborne (“PM walked into crossfire of cliche”, July 11)? What an error of judgment. It was a ridiculous answer to a ridiculous question. No doubt many women, perhaps even his new wife, would have been offended by his inappropriate answer. I expect better judgment from this prime minister. Denis Suttling, Newport Beach

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Prime Minister Anthony Albanese with Nikki Osborne on the Bush Deep comedy podcast last week.

As usual, Julia Baird analyses the stupidity of public discourse in her commentary on Albo’s latest gaffe. What sorry lives we live when we are happy to be “influenced” by a “celebrity”. Is there anyone out there who can think for themselves? Erik Hoekstra, Leura

There’s a lack of female priests in the Catholic Church, as mentioned in Julia Baird’s article. Sadly, there’s also no prospect of female ordinations in the foreseeable future. It’s hard to reconcile the church’s view on female priests, considering women have been the backbone of the church from the time of Jesus. However, considering the dearth of religious vocations and the large number of male priests heading for retirement, the Catholic Church may be forced to start ordaining women. Graham Lum, North Rocks

Courage to call out

One line in a letter from David Salter caught my attention (Letters, July 11). He was commenting on Jillian Segal’s claim of bias in the ABC and the assumption that there was a homogeneous Jewish community. “There are many Jews who are appalled by Israel’s actions over the past three years, and have been brave enough to say so.” Brave enough? And therein lies the problem. To criticise Israeli actions, you have to be brave. Perhaps Jillian Segal can ponder the difference between antisemitism and bravely criticising the actions of Israel. Neville Turbit, Russell Lea

Brumby blindness

The sentimental brumby lovers would be ridiculed by the pragmatic pioneer horsemen of that “mythical … lost way of life” they imagine they’re protecting (“Brumby cull has been taken over by death threats, vile abuse and misinformation”, July 11). Brumbies were a scourge to pastoralists and farmers, and many hunts took place in the 19th century to eliminate them. One such hunt was probably the inspiration for the Banjo Paterson poem. A party of horseman follow a mob at breakneck pace when one horse sheds its bridle. As reported in the papers, the fearless rider, now powerless over the animal’s actions and knowing it will follow the mob, spurs it on over ground thickly timbered and full of holes. This hunt took place on a station near Walgett and ended with a shot, but there were many similar hunts where the horses were captured and sold to the knackery to help defray the costs of the “sport”. Rob Watson, Myocum

Whales dancing of the coast of Lennox Head in July. The “Humpback Highway” is normally flush with whales migrating along the Australian east coast.Danielle Smith

Whale and hearty

Wow! The visual story on whales (“The new whale watching: Why this epic migration is more astonishing than we ever imagined”, July 11) is a credit to the scientists and journalists involved. The story of whales coming back from the brink of extinction in the 1960s to such healthy numbers today, and the efforts of scientists and volunteer citizen scientists to understand their migration and behaviour, is fascinating. The positive story of thriving whales brought about by countries co-operating to ensure their survival shows what is possible. Sadly, this contrasts with the facts that unless we stop krill fishing (for dubious wellness products, pet food, salmon feed, etc) and make serious efforts to limit our warming climate, whales will once again be the victims of human ignorance and greed. Jane Lorimer, West Hobart (Tas)

Heartful Hinch

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“We shall not see his like again”:  Actor Jackie Weaver and broadcaster Derryn Hinch.

Derryn Hinch may have enjoyed being the human headline, but his desire for fame was clearly not all about him (“For the Human Headline, the story ends”, July 11). Hinch was a tireless and vocal political opponent of live animal export and the cruelty and corruption of greyhound racing as well as the illegal export of greyhounds from Australia to countries such as China, where there are no animal protection laws. For that, if nothing else, I admired him. Judy Hungerford, Narraweena

Keep curtain up

I would be terribly sad to see Roseville Cinema close (Letters, July 11). It is the only entertainment venue I visit where I may be the youngest person in the room. Robert Wheeler, Ermington

When the powers that be recently reduced my licence to drive to no more than 15 kilometres from my home, I was unflapped. I was still able to get to my heated indoor pool for my morning swim as well as to my doctor, dentist, podiatrist, hairdresser, library, shopping centre of choice, Vinnies, bottle shop and Roseville Cinema. As a young girl in the 1940s, Roseville Cinema was part of my life. And it was always “the pictures”. We would have been mocked to use the term “cinema” – too pretentious by half. Now there’s talk of closing it. Some things are too precious to lose. It would be like losing the ABC evening news. Please, no. Coral Button, North Epping

Bonnie and pride

Singer Bonnie TylerAP Photo/Alastair Grant

At a casual party in a New York tavern in 2000, I struck up a conversation with a blonde woman who told me she was a Welsh singer, and naively asked “do you sing in the local clubs and pubs around Wales?” She politely replied: “I’ve had a hit record – maybe you’ve heard Total Eclipse of the Heart.” The mortification has never quite worn off. Vale Bonnie Tyler! (Letters, July 11.) Roz Millar, Moss Vale

  • To submit a letter to the Sydney Morning Herald, email letters@smh.com.au. Click here for tips on how to submit letters.
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