Letter to the Rocky Mountain News on
Competitive Contracting in Denver

From: Wendell Cox
To: Subject: Re: RTD Running Behind on Privatization (May 9)
Date: Tuesday, May 09, 2000 3:15 PM

Dear Editor:

In contrast with this article, I do not and have not "conceded" that RTD costs have ever been lower than contracted costs . At no time has RTD's competitively contracted (privatized) service been more expensive than the services produced by RTD itself. Each year, savings of from 25 percent to 40 percent have been achieved. As a result, RTD has been able to add significant amounts of service and attract new ridership at an impressive rate. This mirrors the success of competitive contracting around the world. The entire bus transit systems have now been converted in London, Copenhagen, and throughout Sweden. Stockholm, Adelaide and Perth are converting not only their bus services but also their rail services. It is no wonder that the European Union, under the Transport Ministry of former British Labour Party leader Neil Kinnock has sought to encourage more conversions to competitive contracting in Europe. There is a simple rule at work --- competition is better than monopoly.

Sincerely,
Wendell Cox
Principal, Wendell Cox Consultancy and
Member, Los Angeles County Transportation Commission (1977-1985)

(c) 2000 www.publicpurpose.com --- Wendell Cox Consultancy --- Permission granted to use with attribution.
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