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Bligh's bounty

By Mark Christensen - posted Thursday, 8 June 2006


The structure of the public service business units is out-dated, riddled with duplication and conflicting roles. Queensland Transport, for example, has such diverse functions as renewing car registrations, appointing lolly-pop ladies, managing boat harbours and overseeing billion-dollar transport construction projects.

Under a truly corporate model, Sunshine State would likely have a department of infrastructure that considered transport, energy and water in a holistic fashion.

Another relevant business issue involves the question of core activities.

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All profitable companies ask themselves what it is they do and don’t do. Qantas doesn’t suddenly venture into oyster farming - it knows others do it better. A business must be honest about its strengths and weaknesses. If not, it will over-reach and not perform where it needs to.

As funds become tighter, our Sunshine State senior executives will need to be increasingly frank about core business.

The bungled Snowy Hydro sale is an example of what not to do. New South Wales needed funds for infrastructure. But rather than openly address the pros and cons of privatisation, and demonstrate the trade-offs, the NSW Premier tried to pull a swifty and was brought undone.

As with the recently announced sale of electricity retailing, Queensland must be more diligent and clinical in asking the tough questions about public ownership. Is it really in our interests to own electricity generation companies, freight railways, container ports and a publishing business? A good CEO and their team explore these issues on behalf of the shareholders.

Governments need to be more proactive and business-like in managing our financial situation. Queensland taking on debt seems more reactive than strategic.

The Premier and Treasurer should be asking what else needs to be done. What is core business, how is government best structured and do we have the internal capability to deliver upon the commitments.

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Such questions are front of mind in the commercial world. And they’re just as relevant for government.

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First published in The Courier-Mail on June 7, 2006.



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About the Author

Mark is a social and political commentator, with a background in economics. He also has an abiding interest in philosophy and theology, and is trying to write a book on the nature of reality. He blogs here.

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Creative Commons LicenseThis work is licensed under a Creative Commons License.

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