Wednesday, May 4, 2011

Coalition Scales Back Privatisation Plans Over 'Excess Profit Making' Fears

"Coalition Scales Back Privatisation Plans Over 'Excess Profit Making' Fears" - This is the latest memo "leak" to emerge from this Tory-led government. It states what many of us have been pointing to from the beginning about this this Conservative government, that their whole raison d'ĂȘtre, their whole ideology is based on the private sector companies running the country with very little interference from government. This means those bankers that nearly caused economical Armageddon in this country will be given a virtual free hand by the Conservative government. It means that companies like McDonalds will be able to bid for catering contracts in our schools.

The memo, obtained by the BBC and marked "private and confidential" suggests that private sector investment will be more limited to joint ventures with not-for-profit groups.

Not for profit groups is still privatisation, this will not stop these groups from undercutting the NHS and wrestling contracts and providing sub-standard healthcare and just because these are not for profit organisations it does not mean that they do not pay their directors hefty salaries or bonuses, and provide plush offices and luxury cars either, in fact it is often that case!

What is actually clear with this leaked memo is not that the Tory government actually want to row back from using the private sector a little, but more that they will reluctantly tone it down a fraction because they are scared of losing votes if they carry on with this alarming privatisation in everything from welfare reform and the police service, to NHS reform.

In February David Cameron wrote a bold article for the Daily Telegraph entitled “How we will release the grip of state control“. He announced that the government will allow any private provider (the voluntary and community providers were dropped) to take over a public service.

According to a strategy document the coalition's "growth strategy" – which was published at the same time as George Osborne, the Chancellor, delivered the 2011 Budget – promised an "across the board change" in the way public services are run in future.
The controversial move paves the way for private companies to run more schools as well as whole departments of NHS hospitals and council-run services such as parks and road maintenance. Only the judiciary and national security will be explicitly ring fenced off from the private sector

This Tory-led government has inexplicable links to right wing thinks tanks, lobbyists and the private sector and they readily accept millions of pounds in donations from bankers, hedge funds, think tanks, lobbying companies and companies who stand to gain from the privatisation of all our public services.

This government says it is going to scale back from using the private sector but it forgets it has already awarded huge private contracts.

Employment minister Chris Grayling MP announced "last" month which firms were to get contracts to help the unemployed to find work.
The biggest winner of contracts was Deloitte Ingeus, who received a maximum seven of the 40 contracts on offer in 18 regions of the UK. One of these regions was Glasgow, where Deloitte Ingeus was awarded at the expense of a local charity: the Wise Group.
Deloitte, which owns 50% of the Deloitte Ingeus company, donated in kind over £27,000 to the office of Christopher Graylings in October 2009, whilst he was Shadow Secretary of State for DWP.
At the time, Deloitte was calling for prime contracts to go to large companies instead of voluntary groups due to their ability to borrow more money.

Care UK landed a £53million NHS contract in the North East, the same company who’s senior executive John Nash donated £21,000 to Andrew Lansley’s office before the election. This contract was awarded to the cheapest tender from a private company, even though the existing NHS provider offered a better quality service.

The KPMG Partnership for Commissioning has won one of the first contracts to support the development of the early waves of pathfinders across NHS London and help them to become commissioners of services in the future.
This is the first tender of its type to be awarded in the country and comes as GPs face the transition to legally accountable commissioning organisations in April 2013. The contract was won through the establishment of the KPMG Partnership for Commissioning which comprises the National Association of Primary Care (NAPC), Healthskills, Primary Care Commissioning (PCC), United Health UK and Morgan Cole.

KPMG donated £62,250 to the party through a secondment. Staff from KPMG have played a hand in preparing the Conservative party for election to government in 2010, with employees working for the the opposition party's implementation team. The unit, led by shadow minister for the cabinet office Francis Maude MP, was set up to ensure the party's manifesto can be implemented effectively.

According to independent policy experts legal loopholes in the Health and Social Care Bill could leave health services open to exploitation by profiteering outsiders, and to misinterpretation by politicians and interest groups keen to capitalise on its uncertainties. How is the government going to stop this?

Once again we have this Tory-led government deliberately misleading people, this time though a "supposed leaked" memo. why should we believe what this memo says when quite clearly the opposite is already happening?


Rory said...

Completely agree. Nye Bevan said "The NHS will last as long as there are folk left with the faith to fight for it" and I think people have come out and fought againsy this privatisation by the back-door. Whilst I'm still unhappy with the reforms, I am pleased they have scaled back private involement as a result of the outrage by doctors, nurses and the public.

Just started up a new blog, be great if you could have a look:

Gracie Samuels said...

Thanks Rory will take a look. Trouble is there is there is hardly even anecdotal evidence to support what they say they are doing, just this conveniently leaked memo. I distrust this government and I do not believe anything they say or do because there is virtaully always a side to them.

Anonymous said...

The main reason that the conservatives dont like the nhs and the sick and the elderly is because they cost a lot of money
The conservatives view is that money could be better spent elsewhere in creating a global power to rival that of the USA

Gracie Samuels said...

Well Fourbanks, this is exactly right, the Conservatives do not want to look after anyone, this is all part of their "small government", this is exactly what it all means. People also need to be made aware that these changes are permanent because they do not seem to realise this!