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Solution to what? The profit margins the article quoted seem fairly reasonable, for all we know the Government is already willing to deal with others and no one
by digbyloftus 11y ago
Solution to what? The profit margins the article quoted seem fairly reasonable, for all we know the Government is already willing to deal with others and no one else can compete. Seeing as the Government is the customer I don't really see why they would want to move purchasing power over to the refugees. There's no reason to assume they share goals.
- geomark 11y agoThat profit margin seems really low, unless the contract they have is a cost-plus type where they are guaranteed to have their costs paid plus 3.5% profit. Otherwise the risk seems too high to settle for a profit margin that low.
- iaskwhy 11y agoI'd say it's to avoid a monopoly.
- tremguy 11y agoI wasn't so much disputing the reasonable-ness of the profit margins as much as the policies of the providers. How are you supposed to keep track of how much profit is actually earned? Balance sheets etc. are notoriously easy to manipulate. By letting the refugees vote with their money we need not be concerned with profit margins as the market would(ideally) take care of itself. Win-win for both parties if this kind of system could be made to work. It would essentially be removing the government as an intermediary.