It’s Only Natural
From stockyards to communications, natural monopolies need to be watched closely.
Listener: 25 November, 1995.
Keywords: Regulation & Taxation;
A decade ago the Australian stock and station agents, Elders Pastoral, decided to enter New Zealand. A key activity is selling livestock, commonly done through stockyards. It is expensive to build one’s own yards, and most yards are under-utilized, with just one per region. So the firm wrote to each stockyard in the country, and asked if they might lease it for their sales on commercial terms.