Anna B Posted March 3, 2012 Share Posted March 3, 2012 Do we really want private companies taking over the public sector? I really can't see how it saves money. The government cuts the public sector, then gives the money it saves (ie our taxes) to a private company to do the same job. How does that save? It seems there's nothing that they won't outsource to companies like Serco Ae4 etc. But all private companies care about is profits and dividends for themselves and share holders, not quality of care for the customers. Should things like health care, police, education etc turn a profit? It's not like any money saved is returned to the government or the tax payers, it goes into the pockets of the already rich. Link to comment Share on other sites More sharing options...
Petminder Posted March 3, 2012 Share Posted March 3, 2012 Competition is good for keeping prices down and customer service high, when a service is provided by a monopoly there is little incentive to provide a good service. Link to comment Share on other sites More sharing options...
tinfoilhat Posted March 3, 2012 Share Posted March 3, 2012 Do we really want private companies taking over the public sector? I really can't see how it saves money. The government cuts the public sector, then gives the money it saves (ie our taxes) to a private company to do the same job. How does that save? It seems there's nothing that they won't outsource to companies like Serco Ae4 etc. But all private companies care about is profits and dividends for themselves and share holders, not quality of care for the customers. Should things like health care, police, education etc turn a profit? It's not like any money saved is returned to the government or the tax payers, it goes into the pockets of the already rich. That's not entirely accurate. When a private company get a council contract they have to bid for it, so unless you can prove otherwise (I can't be bothered to look ) private companies will be cheaper. An admin assistant might cost the council 13k, private might be 11k. Over hundreds of people that will add up. The biggest saving of course will be on pensions. Link to comment Share on other sites More sharing options...
Anna B Posted March 5, 2012 Author Share Posted March 5, 2012 That's not entirely accurate. When a private company get a council contract they have to bid for it, so unless you can prove otherwise (I can't be bothered to look ) private companies will be cheaper. An admin assistant might cost the council 13k, private might be 11k. Over hundreds of people that will add up. The biggest saving of course will be on pensions. I agree that that's the plan, but does it always work out like that? The admin assistant might be 2K worse off, but does the government save the money? Private companies are in it to make a profit. For themselves and their shareholders. So I would argue that most of the money saved goes to them in profits. I can't really see where else the profits would come from especially in the case of education, health, police etc. And don't forget most of the CEO's of the big companies who get these contracts; Capita, Serco, ATOS and the like, pay themselves millions plus bonuses. Emma Harrison is far from alone with her 8.6 million bonus. and for the £500,000 million her firm has been paid the results have been rubbish. The job centre properly funded would have done it much better. Besides is it really fair to expect the admin assistant to do the same job for less, and with poorer working conditions? Link to comment Share on other sites More sharing options...
andyofborg Posted March 5, 2012 Share Posted March 5, 2012 Competition is good for keeping prices down and customer service high, when a service is provided by a monopoly there is little incentive to provide a good service. you mean like the energy companies who are famous for their low prices and excellent customer services.. Link to comment Share on other sites More sharing options...
Anna B Posted March 5, 2012 Author Share Posted March 5, 2012 you mean like the energy companies who are famous for their low prices and excellent customer services.. Exactly. Good point. Link to comment Share on other sites More sharing options...
andygardener Posted March 5, 2012 Share Posted March 5, 2012 I think in a lot of areas rather than outsourcing public sector work we'd get more for our money by running the public sector in a more efficient manner. Lose the gold plated pensions, sack the idle and pay bonuses to people who overperform. The private sector works that way but as anna pointed out they have to make a profit on top, which costs us money. A real shake-up of the public sector is required, and tough economic times are the ideal time to do it. Link to comment Share on other sites More sharing options...
I1L2T3 Posted March 5, 2012 Share Posted March 5, 2012 That's not entirely accurate. When a private company get a council contract they have to bid for it, so unless you can prove otherwise (I can't be bothered to look ) private companies will be cheaper. An admin assistant might cost the council 13k, private might be 11k. Over hundreds of people that will add up. The biggest saving of course will be on pensions. Not always that simple. After rail privatisation wages increased in real terms. BR actually paid its staff pretty badly. Link to comment Share on other sites More sharing options...
I1L2T3 Posted March 5, 2012 Share Posted March 5, 2012 Competition is good for keeping prices down and customer service high, when a service is provided by a monopoly there is little incentive to provide a good service. Some services are a natural monopoly and run best that way. In some cases competition can create inefficiencies. Link to comment Share on other sites More sharing options...
Tony Posted March 5, 2012 Share Posted March 5, 2012 The public sector can never be efficient at delivering, it's just not geared up to be for lots of reasons. Yes, the private sector makes a profit, it also pays wages, pays taxes and invests for the short, medium and long term future in a way that the public sector can not. The happy medium is for the public sector to become an efficient procurer of efficient private sector services, determining requirements, forecasting demand, writing watertight and competent specifications, issuing contracts and overseeing them properly. The private sector can swing into action at 9am tomorrow. Could the public sector? Link to comment Share on other sites More sharing options...
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