More myths on privatization

Now feel this drumbeat 

As it beats within, 

Playin’ a riddim, 

Resisting against the system

Bob Marley

Let’s take a deeper look into the myths of privatization.

Myth #3:  Privatization contracts go to the best company for the job.

The Harsh Reality:  Friends & family programme often rule.

For example, the security for the London Olympic was outsourced to a private company called G4S. The original budget skyrocketed from £282m to £553m with management fees growing from £7.3m to £60m.  Guess who was a director of G4S?  The former privatizing New Labour Home Secretary, John Reid! 

Myth #4:  The public benefits from the sale of government owned equipment and property.   

The Harsh Reality: The sale of government owned equipment and land is often a short-term gain at the expense of a long-term loss. 

Prime example. Not only is the UK taxpayer paying the highest railway fares in Europe, the government is currently also losing £1.2bn every year because of the sale of the rail system.

Myth #5: Governments can easily replace a contractor if something goes wrong

The Harsh Reality: Reversing privatization often involves huge costs 

In 2010, it was estimated that it would cost Virginia nearly $400m to cancel its contract with Northrop Grumman for IT services.  The state could not afford this and as a result is stuck with a contractor who has a record of missed deadlines, cost overruns, and technical problems. 

Even with privatization as a failed concept, many will support SAGE and push for privatization so they can line their own pockets. 

On one hand, demanding salary cuts from the working class, and on the other secretly giving lucrative consultancy jobs to their friends, it should be clear we cannot trust the OBA. Government workers I implore you to press your unions to stand up to the OBA and to SAGE. Barring that you can near guarantee they will privatize your job.

But in case they say “There is no choice but to privatize”, ask them are they prepared to finance you, the soon to be ex-government workers, in starting up your own business that can take advantage of the privatization? 

Any guess as to which businesses will get a piece of the pie? n

You can fool some people sometimes,

 But you can’t fool all the people all the time.

 So now we see the light. What you gonna do?

 We gonna stand up for our rights! Yeah, yeah, yeah

Bob Marley