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hairnetnic in reply to @MultiGrooves
Few train companies in history have ever made a profit, Subsidy is for the public good.
Then why the fuck do they have shareholders getting richer and richer, whilst providing a service that has at best stagnated if not gone backwards. All using the infrastructure that WE ALL PAID for. Didn't the govnt tell us that the services we unworkable in the run to selling it off cheap? Yet money is still being made for someone?
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The word 'subsidy' is in itself tendentious. Public transport is a public service which ought to be funded from public money. If it is publicly run, it requires less public investment than if it is privatised because private interests are kept at bay.
(There is still a danger, as eventually happened to London Transport, for instance, if a public company/corporation relies on private contractors of various kinds, e.g. for rolling stock, that the suppliers can exploit the 'captive market' (not sure if that's the right word) and costs will rise, but this is lessened the more the corporation does itself (which London Transport was very good at for a while), but it's not an insurmountable problem.)
The argument that harnessing the allegedly greater dynamic and vitality of private interests will reap benefits has hardly ever been borne out in practice.
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Because privatisation.
Utilities and infrastructure (British Rail, Royal Mail, British Telecom etc...) have some very profitable bits (main line commuter bits, parcel post in big cities, city telephone networks), and some very, very expensive loss makers (off peak trains, telephone lines in the wilds of Northern Scotland, sending a letter to the Orkneys etc..)
Whichever government sells off the family silver, only the profitable stuff is wanted - any sensible purchaser would either not buy the unprofitable bits, or shut it down when they got hold of it.
Government is obliged (if not actually mandated) to ensure that the provinces & outlying services are still provided, so they sweeten the deal & pay subsidies / give tax breaks.
Few train companies in history have ever made a profit, Subsidy is for the public good.