I remember that policy from the time of rampant privatization here in Europe. "Why should the government provide this service .." - well, a few years later we knew why.
It's also quite often the mentality of people that say "you know what? Our software sucks and the architecture is stupid, I will build a new, far better one!" ... yeah, that usually doesn't work either.
I saw a comment the other day which sums the problem with that attitude up quite nicely (paraphrased, cannot find it right now): "Without inside knowledge it's hard to distinguish stupidity from good engineering"