Oops

From the Gazette (here) on MOSA:

The contract binding the three-county waste stream will expire in 2014. Some officials say cooperation with the public authority is the last thing that will happen, but others believe the three counties could find relief from the costly responsibility by pooling their efforts with others in the region.

“This service area is not sufficient enough to have the economy of scale. It’s got to be dealt with in a much broader perspective,” MOSA director Gil Chichester said.

So let me get this right: MOSA is not realizing advantages through economies of scale so we have proponents advocating that we need to increase the number of regions in MOSA to achieve this mythical economy of scale?

Once again, the ever present fallacy of economies of scale as the solution to control costs. I hate to tell people but there is such a thing as ‘diseconomies of scale’. MOSA proves it.

What’s truly shocking is the candor of the statement above that no economies of scale exist; in other words, MOSA is not a sustainable entity.

You may also like...