Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: http://www.socialistparty.org.uk/issue/728/14933

From The Socialist newspaper, 25 July 2012

Editorial of The Socialist

Outsourcing fails again. For publicly owned and run services!

G4S, photo G4S Ltd

G4S, photo G4S Ltd   (Click to enlarge)

The Olympics G4S security debacle has further increased public opposition to privatisation. But for G4S at present, its failure to deliver on its contract will merely dent the massive profits of this large multinational. It has more business outside the UK than inside and has other contracts with the UK government that will go on.

Last year it received 759 million from the Con-Dem government for contracts that included electronic tagging of criminals and processing some benefits claims. The government is about to introduce security licenses that will hand even more work to large firms like G4S by pricing out in-house security provision.

Incredibly, support for G4S came from the general secretary of the GMB union, Paul Kenny. He praised the company for paying its workers 8.50 an hour as it's above the minimum wage and the London 'living wage'.

But anyone would struggle to live on this in London; while at the same time G4S chief executive Nick Buckles has a wage of 830,000 and is said to be in line for a mammoth 21 million package if he is forced to exit the company. The GMB could also have taken a cursory look at the money in the coffers of the Olympics corporate sponsors, to draw the conclusion that a higher wage should have been demanded for the security workers.

History of failure

G4S has failed repeatedly before, for instance it once 'lost' seven prisoners when transporting them, but this didn't stop both Labour and Tory governments giving it more lucrative business.

Deportations were contracted to the firm Reliance by the government after G4S inflicted serious injuries when it had the contract previously, with a death occuring in one case. Now there are reports of brutality by Reliance guards, indicating that another scandal is emerging.

Casting an eye down the long list of privatisations and outsourcings that have taken place over years shows a corresponding long catalogue of failures and deficiencies. Yet the drive goes on.

Lloyds and RBS banks are being prepared for full return to the private sector despite the Barclays Libor scandal and HSBC's seeming aid to money laundering, not to mention the withholding of credit from small businesses and mortgage seekers by all the major banks.

The police are being urged to privatise some functions, military procurement is being outsourced, wholesale privatisation of the NHS proceeds apace, parts of education, parts of the civil service - where is privatisation not being pushed? Often workers face worse pay and conditions when employed by the private companies, as the bosses engage in a 'race to the bottom' to minimise costs and maximise profits.

These profiteers enrich themselves, pouncing on buildings, equipment and training that have previously been paid for by the public sector. Then instead of investing their profits in industry - which they don't view as profitable enough - huge amounts of money are left idle. For example, hot on the heels of the G4S debacle came news in last Sunday's Observer that a global mega-rich elite has hived away 13 trillion into tax havens!

War on the public sector

The multi-millionaire Tory leaders in the cabinet vehemently detest the public sector and want to privatise and outsource as much as they can, to hand rich pickings to their big business friends and for themselves when they eventually leave the House of Commons. They also want to drastically reduce the size of the public sector in a crazy, counter-productive drive to lower the national debt, and to be able to reduce the taxes the rich should be paying to help fund public services for everyone.

So they or their media allies ferociously attack the public sector as being inefficient and expensive, and public sector workers as being lazy, privileged and greedy. These are nothing but lies and distortions.

Time and time again, privatised services have been shown to cost more than publicly run services for the same standard of delivery, from the rail system to the building of new hospitals and schools. Sometimes the difference is shockingly great. Shareholders and directors use the security of public sector contracts to rake in vast profits, which they use to line their own pockets.

Accusations of laziness and greed aimed at public sector workers are monstrous slurs, especially considering that cuts have forced whole sections of the public sector workforce to work to the point of complete exhaustion.

What about efficiency? Unfortunately top managers in the public sector have often been trained in the same dictatorial management methods as those used in the private sector and they are not necessarily less prone to incompetence. Despite this, public bodies, being under closer scrutiny by elected councillors or MPs, and having the central aim of service provision rather than profit making, tend to be found by service users to be more 'efficient' than private bodies.

Democratic control

Public control through elected representatives is one of the crucial advantages of public sector organisations. The Socialist goes further than calling for democratic local authority or parliamentary control, adding that representatives of the public sector workers themselves, and trade unions, and people who depend on the services, should also be part of the committees that exert control.

This way the quality of the service and the pay and conditions of the workers providing it can be monitored from the point of view of those workers and service users, and any shortcomings quickly corrected.

The other vital superiority of public sector organisations is that with no exodus of money into the pockets of shareholders, as well as the sole aim being to provide the best possible service, there will also be more money available for that service provision. This is obviously preferable for the vast majority of people in society.

The only people who don't stand to gain are those in the super-rich elite at the top, who will continue to orchestrate the savaging of the public sector until an almighty response from the trade union movement is built to stop them in their tracks. The Olympics G4S debacle has further increased public opposition to privatisation.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 25 July 2012:


Socialist Party news and analysis

On your marks.... Get set.... Fight back!

Outsourcing fails again. For publicly owned and run services!

13 trillion hidden from tax by super-rich

Not-guilty verdict in Ian Tomlinson case

Olympic Watch

Them & Us


International socialist news and analysis

Kazakhstan - Workers struggle against bloody, corrupt regime

Spain's austerity government is facing revolt from below

Miners light up Madrid and show the way to struggle!


Socialist history

1972: dockers face down the Tory government


Socialist Party reports and campaigns

Austerity Games highlights plight of young people

Save our jobs: We need a 24-hour general strike

Newcastle pride

Pre-emptive arrests: "straight out of 1984"


Stop NHS cuts & privatisation

Kick private profiteers out of the NHS

Virgin vultures swoop on vulnerable people's services

Leicester: Not one cut in the NHS

Kirkby campaigners get support

Olympic protest as South London Healthcare trust forced into administration


Socialist Party workplace news

Olympic victory for London bus workers

Solidarity with PCS members fighting to defend services

RMT demo in Portsmouth against Condor's 'sweatships'

Remploy strike a big success

Workplace news in brief


Socialist Party review

TV review: "What have the Olympics done for me?"


Socialist Party appeal & news

Save our server!

Summer printing schedule

Socialist Party Summer Camp


 

Home   |   The Socialist 25 July 2012   |   Join the Socialist Party

Subscribe   |   Donate   |   PDF  




Related links:

Privatisation:

triangleSchool staff strike against privatisation

triangleLabour council Blairites deselected

triangleDWP to outsource more work to Capita

triangleCorbyn must challenge pro-gentrification council leader or others will

trianglePFI privateers dodge tax

Outsourcing:

triangleNHS meltdown - fight the Tory cuts

triangleEnd poverty pay for sleep-in care workers

triangleBron Afon workers strike against 3,000 pay cut

triangleNewcastle tenants demand answers

Public sector:

triangleLocal government pay: fight for the 5% claim, fully funded

trianglePCS union says no to pay misery

triangleAfter the budget - unions must launch pay fight

Rich:

triangleTrump's tax attacks

triangle'Paradise' for billionaires - austerity for us

News and socialist analysis

News and socialist analysis

8/12/17

Government

Local government pay: fight for the 5% claim, fully funded

6/12/17

Labour

Corbyn's Labour can defeat Tories with socialist programme

6/12/17

NHS

Branson sues NHS: kick out the profiteers

6/12/17

Immigration

Royal wedding exposes them-and-us visa system

6/12/17

Banks

RBS to sack 1,000: nationalise the banks

6/12/17

Homelessness

Rough sleeping crisis: make homes, not arrests

6/12/17

Poverty

End Tory war on poor

6/12/17

Rail

Nationalise rail now

29/11/17

Them & Us

Them & us

29/11/17

Homes

Tory housing policy: build zilch, hike prices

29/11/17

Wages

Make the Tories history

29/11/17

Birmingham

Birmingham bin workers win!

29/11/17

British economy

Amber warning lights flash on British economy

23/11/17

Pay

After the budget - unions must launch pay fight

22/11/17

Climate change

Carbon dioxide hits 800,000-year high: end profit-driven pollution

triangleMore News and socialist analysis articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle8 Dec Local government pay: fight for the full 5% claim

triangle6 Dec Strikers rally in Liverpool

triangle6 Dec Corbyn's Labour can defeat Tories with socialist programme

triangle5 Dec Victory at Glenfield shows people power can save our NHS

triangle5 Dec Labour council Blairites deselected

triangle30 Nov Victory: Glenfield Children's Heart Centre saved!

triangle30 Nov Dramatic retelling of Grunwick strike

More ...

triangle12 Dec Birmingham South East Socialist Party: Can the Labour Party be changed?

triangle12 Dec Liverpool Socialist Party: Fighting council cuts

triangle13 Dec Caerphilly Socialist Party: Are we heading for an era of war?

triangle14 Dec Wakefield Socialist Party: Universal Credit - the Tories' latest assault on the poor

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Archive

Archives:

December 2017

November 2017

October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

April 2017

March 2017

February 2017

January 2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Legal

SP RSS feed RSS

Platform setting: = No platform choice

V2