G4S, Serco, Capita and the like have been flourishing – but is the friendly government worm turning?

Gill Plimmer reports that the Official Journal of the European Union database, which records every public sector contract worth more than £115m, reveals that £20bn worth of government contracts is now handed to the private sector.

About half of council waste management services and 23% of human resources, IT and payroll functions are now privatised. Tens of thousands of health, defence, security and IT workers have transferred to corporate employers such as Babcock, G4S, Serco, Capita, Mitie and Carillion.

The process continues, even though the reputation of the private sector in delivering public services has been repeatedly damaged –  recent examples include the high profile failure of G4S during the Olympics and the legal action facing Virgin Care over its running of NHS and social care services in Devon.

In an earlier article, Plimmer notes that government has shaken the private sector companies by deciding to keep four out of nine prisons, due to be outsourced, in state hands because providers did not give ‘best value for money’; confidence has been further shaken by the decision that G4S will have to relinquish its Yorkshire prison contract because of inefficiency.


Read the full article here.




Posted on February 1, 2013, in Corporate political nexus, Parliamentary failure, Vested interests and tagged , , , , , , . Bookmark the permalink. Leave a comment.

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