Letter to the Rocky Mountain News on Competitive Contracting in Denver
From: Wendell Cox
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,
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