Letters to the Editor for Sunday, December 13, 2009

Privatization isn’t always the best option
Now that the elections for state offices in Virginia are concluded, the winners must go about the process of making good on campaign promises to not raise taxes in order to fund promised improvements such as the roads systems. Privatization of existing government services such as the auctioning of state run ABC stores who have been returning approximately $100 millions yearly has been mentioned to raise funds. The ABC stores supposedly would raise $500 million. In reality, the sale would probably net $250 million. That is less than three years of ABC’s net profit. That revenue would be forever lost, and the state would probably build less than 10 miles of expressways.

I would offer just two examples wherein government-run functions were turned over to private contractors. In Virginia, Northrop Gumman, a private technology contractor, was awarded a $2.3 billion contract to take care of the Virginia computer network. They run nearly all the Virginia IT systems. Despite complaints over poor service, the state is leery about suspending the $14 million monthly payments for fear that Northrop Grumman might shut down the network. In just five weeks, the DMV experienced more than 100 hours of outages. VDOT’s outage totaled 4,700 outages in six months. Those are failures in just two of the state departments. Northrop Grumman runs nearly all the state’s IT systems. To terminate the contract would cost up to $500 million on top of the millions already spent. Total costs to the taxpayer would likely reach $2 billion.

The governor of Indiana boasted taxpayers would reap a billon dollars in savings resulting from a $1.1 billion contract awarded to IBM to perform certain services formerly administered by state employees. After two years the state has listed at least 200 discrepancies in that service and may have to cancel the contract. Instead of reaping a billion dollars in savings it could cost much more than the billion dollars that it was to “reap.”

Critics always cite the Post Office as an example of government inefficiency and clamor for its privatization. The U.S. Postal System, which was developed by Benjamin Franklin, was formed to serve all citizens. The government subsidies that it receives are miniscule in comparison to the subsidies to businesses such as corporate farms, energy companies and foreign countries. The robust economy of Israel alone received approximately $5 billion from the U.S. The postal system is the cheapest and safest method of communication. People are being pushed into transacting their personal business online thereby creating computer “hackers” who are able to access online personal information resulting in huge losses. The recent computer failure, which crippled major airlines, was said to have a private contractor maintaining that system.

The ordinary citizen and numerous businesses could not afford to use a private postal system. Such a system would charge by zone for a simple letter and the cost would be at least 10 times more. Individual mail delivery would cease. People would have to travel to a distribution center to receive any mail. It would be stored in some type of box for which there would be a fee. Very likely, a private postal system, after the postal system is abolished, would demand government subsidies and threaten to cease operation if they are not granted. The most desperate reason I have heard in defense of privatizing the ABC stores is “staff members generally aren’t knowledgeable about how to mix drinks or make cocktails.”
PATRICK KILLEEN
Monroe

Whom to believe
Now wait a minute!

Regarding the current health care reform debate, whom should we believe: the political rhetoric of scary pundits who say that senior citizens will suffer from such reforms or the AARP, which represents senior citizens and supports these reforms?

Frankly, as a senior citizen, I’m going to go with those who truly speak for the well-being of retired people, the AARP, which asks all its members in a recent mailing to call our senators and encourage them “to pass health care reform that puts seniors first — not drug and insurance companies.”
M. ANDERSON “ANDY” SALE
Lynchburg