So much for the competitive market

I love how right-wing ideology is just some thing that can be switched on and off at will. Consider this article:

All state house sales could go to a single buyer – Treasury

Charities wanting to take part in state house sales have been told, be prepared to buy big or don’t bother.



Treasury has revealed that all of the houses in each city – 370 in Invercargill and 1250 in Tauranga – could be sold to a single buyer.

We’ve posted on this previously, but there’s a particular point here that I want to look at further. Carrying on from the above:

“Our current thinking is that we will transact at scale, the upper end being the entire portfolios in each region and the lower end potentially being one or two hundred,” Treasury told potential buyers.

The Government would be prepared to have a single charity operating all of the social housing, as the scale may be a greater advantage than the lack of competition.

“It may not be feasible to have a traditional market with competition in each regional market due to the size of these markets,” Treasury said, saying that in Invercargill “it is possible that a transfer of the whole portfolio may bring benefits that outweigh the need for competition”.

An interesting acknowledgment that “scale may be a greater advantage than the lack of competition”. So much for the ideology of the competitive market. Gosh – if only there was a nationwide organisation that could own all the state houses and really get these advantages of scale working for all NZ. Wouldn’t that be amazing?

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