Outsourcing 7: bring privatised services and PFI deals back into public ownership

As Paul Halas writes (Western Daily Press, 7 December 2019, p. 30):

“Over the past few decades privatisations have included Royal Mail, British Gas, electricity, water and sewage treatment, the 999 calls service, much of the ambulance service, the NHS appointments service, British Steel, large parts of the education service, the Coal Board (as was), the probation service, many prisons and detention centres, large chunks of the care services, British Airways, British Rail… ad infinitum”).

Martin Rudland draws attention to the ‘we own it’ website which focusses on privatisation of public services which wastes billions each year on shareholder dividends and high borrowing costs, giving links to research into costs in several sectors including water, energy, transport, broadband, Royal Mail and NHS.

Transnational Engie is on the list of Luton and Dunstable University Hospital’s suppliers of domestic, catering and cleaning services. Unison and GMB are calling for these services to be brought back in-house once Engie’s contract ends next year.

UNISON, the union representing workers at Luton & Dunstable Hospital, points out that staff who were transferred from the NHS in 2015 are being paid NHS rates of £9.02 an hour but anyone who started since is paid the legal minimum of £8.21 an hour.

New starters are paid at least £1,400 less than colleagues who were at the hospital before cleaning services were sold off. Engie employees have also told UNISON that they are being denied leave and being made to take the blame when the contractor is pulled up by the Trust for any shortcomings in service.

UNISON’s Eastern regional organiser Winston Dorsett said, “Engie has confused and demoralised its staff further with a third set of pay and conditions brought in last year to squeeze a bit more cash out of the taxpayer. This firm is making its profits off the backs of some of the lowest-paid workers in our NHS”.

GMB regional organiser Hilda Tavolara agrees that the workers “deserve to be treated fairly by their employer” and points out that last year, housekeepers’ working hours and wages were cut, yet they were still expected to do the same amount of work. This has had a knock-on effect on the patients, their families and visitors.

Hospital chiefs are offering Engie a new 10-year contract to provide the services, proposing to outsource a number or employees currently working for the NHS but UNISON is calling on the Trust not to renew Engie’s contract next year and bring cleaning, catering and housekeeping back in-house.

This week an IPPR study revealed the cost of private finance initiatives (PFI) contracts in the NHS.

These contracts brought £13 billion of initial investment capital into the health system but by the time they have ended the NHS will have spent £80 billion on them.

This is money which could have been spent on doctors’ and nurses’ salaries, on improving treatments, or on making sure young mental health inpatients don’t have to stay in hospitals hundreds of miles away from their family and friends.

The IPPR report reveals that £55 billion of this debt is still outstanding – representing a huge burden on tight NHS resources if the government does not take action. It recommends that bad deals be brought back into public ownership.

After wondering whether what’s left of the NHS is really going to remain in the public domain under the Tories, Paul Halas adds: “What they (private companies) all have in common is poorer service, higher prices, worse wages and conditions for employees, and a haemorrhaging of money to highly paid executives and shareholders, many of them based overseas and avoiding tax in this country”, ending:

“The Tories’ long-term goal has always been to shrink the public sector to the size of a walnut and until the NHS, the last of the public service dominoes, is toppled it’ll remain a thorn in their ideological flesh”. 

 

 

 

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Posted on December 8, 2019, in 2019 General Election, Corporate political nexus, Finance, NHS, Outsourcing, Privatisation, Vested interests and tagged , , , , , , , , . Bookmark the permalink. Leave a comment.

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