Fred Argy (Letters, 12/12) misses the point. The point of privatisation is not to generate revenue for government. Indeed, if I had my way there would be no selling involved - shares would be gifted to all Australians equally. The real objective of privatisation is to expose a service to the discipline of the market.
The true "furphy" of the proposed electricity sale in NSW is that it would not be full privatisation, because there are many regulatory impediments (such as price controls) that would prevent the free operation of the market. This would likely lead to suboptimal outcomes as suppliers would need to seek approval from bureaucrats to make operational decisions. Of course, then we could expect to hear criticism of privatisation!
(Letters to the editor, The Australian, December 14 2007)