Posts Tagged ‘privatisation’

A failure of the Private Sector

15/08/2012

G4S were supposed to provide all the security for the Olympics, but in the end it was left to the government to provide troops to cover a shortfall of numbers.  I went to several events and the soldiers on duty were the politest and most efficient security guards I have ever seen!

Of course, G4S’s incompetence is exceptional but it does raise important questions about using the Private Sector to carry out tasks traditionally carried out in the Public Sector.

A Private Sector company must focus its own profit goals; a Public Sector organisation can simply focus on providing the best service possible with the money available.  Private Sector companies need to pay for lobby consultants to chum up with politicians.  They need to pay for PR consultants to manage the press.

Private Sector efficiency savings often mean attacking worker’s benefits and eroding the service provided.

And if things go wrong the Private Sector will always have the government to pick up the pieces.  In extremis a Private Sector company can go into receivership, not really an option for a National Government.

So let us think again about the privatisation of the police, prison services and guarding our borders.


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