Monday 21 February 2011

The myth of contracting out work

It was the Conservatives under Thatcher who first persuaded us to believe as a country that when any sort of work or service went out to the private sector for tender we were in some way saving money.
That was the same belief that led to the selling off of our railways, coal mines, water, electricity and gas industries to say nothing of our steel and even our airports and ports.
We see it now in every organisation that has any link to government and British Waterways has been a prime example. In order to tick the box of competition they not only use contractors to repair the canals and canal structures they even brought in the ludicrous moorings auctions before distorting them by setting ridiculous reserve prices to avoid boaters getting a mooring for £10.
The results are also all around us. We no longer have a coal industry because it was not sufficiently profitable for the private owners and we now import coal and are having to pay ever-increasing prices as we compete with the Chinese and Indian markets.
Our multitude of railway companies are interested solely in profit and, in addition to rising fares whenever possible also fail to invest in their rolling stock. In stead of the entrepreneurs we were promised we have companies who treat rail franchises as cash cows.
If we still owned the water and power companies then at least their enormous profits would be going into the public purse and there would be more of that invested in green energy.
As for contractors on the canal system, it still seems that BW and others have a problem with some simple arithmetic. Contractors employ staff on the lowest possible rates and use the materials that give them the biggest profit margin.
If British Waterways used their experienced staff, who are not paid much more than basic rates, and utilised their expertise they would not be paying the contractors' profits and would get a better job from staff who would know they are valued.
The same is true throughout the system but now we have Cameron wanting everything to be up for grabs by private companies so the taxpayer can pay for their profits - including the NHS, education and any other service the poorest of our community needs.
That will not be cheaper for the taxpayer and it certainly will provide a lower and nastier service, ruled by the profit motive, for every user of every school, hospital or even job centre.
That will take us to a grubby commercial world in which the spivs and cowboys of business, especially those who donate most to Tory party funds, controlling every aspect of our lives, with the government able to wash its hands of any responsibility. "We will, of course, investigate whether the private firm concerned has been ripping you off," they will promise and, of course, nothing will happen.
If we allow this we deserve to be taken to the cleaners - and we surely will be.