OT: Toronto street lights sale

Lennart Sorensen lsorense-1wCw9BSqJbv44Nm34jS7GywD8/FfD2ys at public.gmane.org
Mon Feb 22 18:29:35 UTC 2010


On Sun, Feb 21, 2010 at 11:14:59PM -0500, William Muriithi wrote:
> I got a small rant I need to share that has nothing to do with
> technology, but since this is Toronto LUG, I think the sale of Toronto
> street lights is something we can share about. I once mentioned this
> deal here some years back but a recent article below had me thinking
> about it again.
> 
> http://www.thestar.com/printarticle/767968
> 
> After reading it, you will notice the deal was REALLY bad. To me, its
> similar to an individual in a very serious debt going to a gang who
> offer him/her money at a ridiculous interest rate and if he/she fail
> to pay up, they came and break his/her legs. In short, a deal done
> purely through emotion and no logic.
> 
> Now, if this was an individual, it would be totally understandable.  I
> have seen people doing too many things that make no sense at all. If
> you want an example of one such case, the article below will not
> disappoint.
> http://news.bbc.co.uk/2/hi/8474611.stm
> 
> Toronto city is a big organization that should have sharp people.
> Seriously, its not that complicated. I would assume they were given
> the terms of how much it would cost them to have the streets lighted
> annually after the sale.  At that point, it was just a matter of
> putting the two alternatives into their present value and it would
> have been apparent which of the two alternative was superior. How did
> they get it this wrong? Could I be blind to some facts that someone
> here may care to enlighten?
> 
> Anyway, the good thing is Toronto hydro is owned by the city, so its
> just moving money from one pocket to the other.  I am doubtful though
> they would have done a better job were they dealing with an external
> entity. I am always puzzle why governments these days tend to be short
> term minded. If they start working like private firms, where anything
> after the next quarter does not count, we will have a really bleak
> future

Probably because the city is run the the same type of idiots as become
CEOs of many companies.  It is all about short term gains to give bonuses
(or get reellected) and not about long term viability.

So if the city of toronto owns toronto hydro, then they sold their
lights to their own company and are paying money to their own company to
manage them.  I guess any profits would come back to the city in the end,
so where is the problem?  I don't get it.

Given the city isn't allowed to run a defecit (unlike the province and
the country), I guess using city owned companies is a way around it to
deal with the budget potholes.

-- 
Len Sorensen
--
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