National buys a web hosting company

The National Government has just purchased a web hosting company. Yes us lucky taxpayers now have own own state owned web hosting company.

To be fair to the Gvoernment, they did not buy it directly. They own Kordia and Kordia owns Orcon and Orcon purchased iServe.

But the end result is the same – iserve goes from beign in the private sector to the state sector. It has been nationalised.

I have huge problems with Government owned companies acquiring other companies that operate in a competitive. It sees an expansion of the state in the economy. It also can get an unfair advantage to state owned companies with an implicit Government guarantee and access to capital.