White paper opens public services to privatisation

UNISON chief, Dave Prentis, is today warning that Government plans for the

wholesale privatisation of public services, will lead to poorer quality,

high cost services at the mercy of the open market and risky competition.

Dave Prentis, UNISONs General Secretary, went on to say:

The Government wants to wash its hands of providing people with decent

public services. For all its talk of mutuals and charities, the White paper

is nothing but a smokescreen for privatisation and will do nothing to

improve quality.

We will be looking carefully at the fine print and holding the coalition to

account for any illegitimate attempts to hand over services to private

companies, whose primary concern is the bottom line rather than service

users.

The collapse today of home care owners, Southern Cross, should act as a

grim warning about what can happen when the private sector take over public

services. There will be many thousands of elderly residents across the

country who will be deeply distressed about what the future may hold for

them. And staff too will be worried about their jobs at a time of growing

unemployment.

We want urgent Government action to protect the well-being of residents in

Southern Cross homes.

The bottom line should not be profit but public services run by committed

public service staff. The quality, efficiency, accountability, flexibility

and economics of in-house public services just cannot be matched.

Notes to editors:

UNISON has produced a number of reports proving that privatisation is a

recipe for disaster.

* A UNISON survey by Paul Gosling exposes the shocking state privatisation

has left the care industry in and the disasters waiting to happen. The

evidence proves that privatisation is a risky experiment, as these councils

revealed money was drained, standards were driven down and they had a lack

of control over the services.

* A survey by Apse, for UNISON, reveals that half of councils who had

outsourced their services had to bring them back in-house because of

financial failures and inefficiency. 60% of council officers surveyed said

the need to improve efficiency and reduce service costs had led them to

consider bringing services back in-house. After cost, 44% of respondents

said there was a need to improve service quality.

* A UNISON report – Mutual Benefit – reveals that increased marketisation

will lead to a hike in bureaucracy. Mutuals are in danger of being bolted

onto a competitive market for services, pitting them against private sector

providers. Community-based mutuals will struggle to compete, as private

companies undercut them, and outright privatisation of public services is

the likely outcome.