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Moderate Party: The state should not run car factories

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A number of public services and state-owned companies have been privatized in Sweden during the last ten years — telephone operator Telia and liquor retailer Vin & Sprit to name just two. How far should Sweden go when it comes to privatization?

It is important that privatization is performed only in sectors where private companies could –or should – run the services in a better and more cost-efficient way. During the recent economic crisis, the Social Democrats discussed state ownership of the private car manufacturing company SAAB; and they defend state-owned companies such as Vin & Sprit — the producer of Absolut Vodka — among others. The state should not produce liquor and run car factories in a modern Sweden where tax payers’ money not should be risked. Besides, politicians cannot manage to run car factories better than private interests and companies.

Sweden was the only country in the world besides North Korea that had a state monopoly on selling pharmacy products. The Alliance government changed that. We should be very careful about privatizing public services and state-owned companies, but the focus must be to strengthen the core of the public services. That is why the Alliance government doesn’t have any further plans for a large amount of privatization the coming four years.

André Assarsson

September 15, 2010

  • http://www.muchissaidinjest.com gabriel

    André,

    Last time I checked the private corporations weren’t very good at running car companies either.

    I think the jury is still out on what governments can run better than private corporations. Look to the US. We have privatized prisons. It saves tax payer dollars, but then then prison system doesn’t work in the long run which ends up costing more money.

    The Alliance needs to be extremely careful with their privatization efforts. I think things like healthcare, transportation, schools, pharmacies, etc… should be untouched forever and completely unaffected by market movements and interests.

    Look at the recent accident with the X2000. What’s more important, cost cutting measures which increase the bottom line or safety? Look at BP.

    I don’t trust the moderates not to continue to sell off Swedish assets. In fact, I think if they win, they will continue to do it. And the problem with that is, once it’s all sold, it’s almost impossible to get back. Try telling the Wallenbergs that you want 150 pharmacies back.

    Look

  • Pol – Croatia

    Maybe one should look back in the 1980′s (or even further), before the mass privatisation of everything started, in the first place. And “simply” combine and improve with that what we have learned since. What happened with workers participation for instance ? Or, who owned Volvo and Saab back then ?

    Of course, in Croatia case this is probably more difficult to explore and apply, also because in many areas insufficient in-depth studies (appart from general statistics) were made. But, i guess some important data could still be retrieved. …

    As a potential consumer, i look on Volvo and Saab as typicall swedish products. So, when i hear for instance that some british car manufacturer has been sold to chinese company, it becomes questionable is this even the same car. (?!)