farmdoc's blog post number 206

I’m self employed. And I run a tight ship. I don’t waste a cent let alone a postage stamp. Because no-one will rescue me if my business makes a loss. In 2007-8 it made a record profit. Contrast the 2007-8 results of 240 Victorian government agencies – a combined loss of A$2b compared with a profit of A$6b in 2006-7, i.e. an A$8b turnaround. In 2007-8 they and I both operated in the same economy. I reckon the difference is that they spend money belonging to other people – yes, folks, you and me – whereas the money I spend is mine. Among the bodies in the red in 2007-8 was the Grand Prix Corporation. The 2008 Formula 1 Grand Prix lost a record A$40.1m, which of course the government automatically reimburses from consolidated revenue. Astoundingly, in 2007-8 eight Grand Prix Corporation executives received over A$160,000 in bonuses, including over A$40,000 reputedly bestowed on its CEO. Record bonuses for a record loss. Congrats, people. Whilst the Corporation’s A$40m loss is only 2% of the government's A$2b loss, the way to reduce costs is to examine every single one – not just the large ones. Grand Prix losses are slated to gradually increase each year throughout the contract period to 2015. Oh how easy it is to spend other people’s money when there’s no accountability. Me? I’ll keep counting postage stamps.