Posts Tagged ‘G4s’

Another Crisis in the Outsourcing Industry: Capita Now in Trouble

February 1, 2018

Yesterday, Mike reported on his blog that the outsourcing giant, Capita, was now in trouble. Its share price has apparently halved, knocking £1.1 billion of its stock market value. It has axed its scheme to issue £500 million in dividends to its shareholders. Instead, it intends to raise £700 million, partly by selling off parts of the company, which it needs to balance the books. There are also fears that it will make part of its 67,000 strong workforce redundant as well as concerns for the firm’s pension fund.

Mike in his article notes that the company was responsible for assessing the infamous fitness for work tests, for which the government has imposed hidden targets. One of these is that 80 per cent of reconsidered cases should be turned down. Mike therefore comments that if the crisis means that some of these assessors get a taste of what they inflicted on benefit claimants, this would be a case of poetic justice. He also wonders what the firm was doing when it devised the scheme to issue those massive dividends to its shareholders. Did they believe that the government’s magic money tree would continue to allow them to give heaps of money to their rich shareholders? He also asks other searching questions, such as whether it was deliberately underbidding to get government contracts, and then using the money to help finance those projects it had already won.

Mike concludes

So: First Carillion collapsed. Now both Interserve (remember them?) and Capita are in trouble.

Who’s next? And what will happen to public services while the Tories dither over this crisis?

See: https://voxpoliticalonline.com/2018/01/31/in-the-crap-ita-government-contractor-responsible-for-benefit-assessments-is-in-deep-financial-doo-doo/

Capita, or as Private Eye dubbed it, ‘Crapita’, has a long history of incompetence behind it. Way back in the 1990s it seemed that hardly a fortnight went by without Capita turning up in the pages of the satirical magazine. And the story was nearly always the same. The outsourcing company won a government or local authority contract to set up an IT system or run IT services. The project would then go over time and over budget, and would be massively flawed. And then a few weeks or months later, the company would be given a contract somewhere, and do exactly the same thing there.

You’re left wondering how Crapita kept winning those contracts, when it was so manifestly unfit to carry them out. Who did it have on its board? Or was there a deliberate policy by Major’s government to support outsourcing, no matter how inefficient and incompetent they were, because it was private enterprise and so preferred and supported for purely ideological reasons?

In any case, what seems to have placed the company in a very precarious financial situation is the usual tactics of big companies in this stage of capitalism: award massive dividends to the shareholders. This usually goes along with starving the rest of the company of investment, which seems to have been done to. And granting massive, and massively unsustainable pay awards to senior management. There’s no mention of that in Mike’s article, but I don’t doubt that this was done too. I’ve got the impression that it’s just about standard practice across a huge swathe of industry.

This is a financial strategy that has driven far more than one company to the wall. I also wonder if the executives weren’t also trying deliberately to create a debt, so that they could dodge corporation tax for five years. This is one of the tricks Stewart Lansley and Joanna Mack describe in their book on contemporary British poverty, Breadline Britain.

Over the years the outsourcing policy has been in operation, there’s been one crisis after another. The outsourcing companies have repeatedly shown themselves to be incompetent, not just in the case of capita, but also notoriously with G4S and the scandals over the violence and brutality it meted out towards asylum seekers in the detention centres it ran. And, of course, when a whole load of prisoners escaped on their way to court. Or jail.

Private industry has repeatedly shown that it is incompetent to do the work of the state sector. These firms have the disadvantage of having to make a profit for their shareholders, as well as the demands of their management for multi-million pound pay packets. The only way they can afford this is by cutting wages to their workers, and spending as little as possible on the service they are meant to be providing. The result of this has been a series of financial collapses. Carillion was the first. Now Capita and Interserve, another outsourcing company, is in similar trouble.

The only sensible recourse should be to cancel these companies’ contracts, and take everything back in-house. But this won’t be done. I think there’s a problem in that the state sector has been so decimated by the past four decades of Thatcherism, that it no longer has the capacity to run these services itself. There’s also the additional problem that too many politicians and media magnates have connections to these companies, or to firms in a similar position hoping for government contracts. Acknowledging that outsourcing was a failure would damage the interests of these politicos and press barons. There’s also the challenge of actually facing up to the fact that a central plank of Thatcherite dogma – that private enterprise is always more efficient than the state – is absolutely, undeniably wrong. Anybody who makes this point is denounced as a Communist in screaming headlines. You only have to look at the way the Tory press has vilified Jeremy Corbyn for daring to want to renationalise the NHS, the electricity net and the railways. His policies are very far from the total nationalisation demanded by Communists and Trotskyites, but you wouldn’t know it from the frothing abuse hurled in his direction by the Tories and Blairites.

There’s also another problem with calling an end to the outsourcing scam. PFI contracts and outsourcing allow some of the costs to be written off the official government accounts sheet. They’re still there, and we have to keep paying them, but they’re not included in the official figures. It’s why Mussolini used a similar scam when he was Duce of Fascist Italy. Any government that restores these projects to the way they were handled before risks putting millions back the official figures. And if that’s the Labour party, you can imagine the Tories making their usual hackneyed and untrue comments about ‘high-spending Labour’, and then re-iterating the spurious arguments for austerity.

I’ve no doubt that the government will do what it can to shore up the current mess the outsourcing companies are in. But the collapse of Carillion and now the severe financial troubles faced by Capita and Interserve show that outsourcing does not work. And given these companies’ highly checkered history, they should never have been given governments to begin with.

And it bears out exactly the description the author of Zombie Economics used for them in the very title of his book. Outsourcing, and the rest of the Thatcherite economic strategy of privatisation, wage restraint, low taxation and declining welfare are ‘zombie economics’ as they don’t work, but haven’t yet been put it into the grave.

It’s high time they were, and Thatcherite free trade capitalism was abandoned as the failure it so glaringly is.

America’s Private Prisons: Capitalism’s Forced Labour Camps?

October 21, 2017

In this clip from the Jimmy Dore Show, the American comedian and his co-hosts, Ron Placone and Steffi Zamorano, the Miserable Liberal, discuss the use of convict labour supplied by the American prison system by businesses and the state. Many of the fire fighters now tackling the fires raging in California were female cons. Dore points out that this is skilled, dangerous work. But nevertheless, these women were sent to do it, and some of them have been killed doing so. He goes on to discuss Kamala Harris, who repeatedly refused to release prisoners when their time was up and they were due to go back to civil society. Eventually, she was sued and said in court that the reason she wasn’t releasing them was because they were too useful as workers. Now Steve Prettor, the sheriff of Caddo County in Louisiana, has appeared to tell the American public why he doesn’t like releasing good, Black prisoners either: because they’re too useful as workers for the prison system.

Dore calls this system exactly what it is: slavery. And there is a whole slew of firms using unfree, unpaid convict labour. These include McDonald’s, Walmart and a contractor for Starbuck’s. Dore makes the point that this is what used to happen in Communist countries like North Korea, which we – the West – denounced. Now it’s being done by capitalism in America.

In one of the many interviews with the radical American journalist Chris Hedges on YouTube, Hedges talks about the massive poverty and unemployment created by capitalism and neoliberalism. He states that in American towns which have particularly suffered, the prison population has expanded immensely. This is because the state and capital have no use for these men in normal business. However, they are immensely valuable as a source of contracts for the private prison system.

And Dore is exactly right when he compares unfree convict labour in America with the forced labour systems of the Communist bloc. I’ve blogged about this before. Stalin industrialised the Soviet Union using the forced labour of millions of Soviet citizens. Businesses and enterprises needing particular types of worker would send shopping lists of how many they needed to the KGB, who would then round them up as traitors and enemies of the Soviet state, and then send them to the Gulags. Where they would be put to work building some new industrial plant.

The Nazis also had a similar system using Jewish slave workers in the concentration camps. Skilled Jewish craftsmen were put to work in a company owned and operated by the SS producing luxury products. They even produced a catalogue.

As neoliberalism privatises and takes over more of the functions of the state, so contemporary capitalism increasingly takes on the features of the totalitarianisms of the 20th century.

I don’t think we in Britain have any cause to be complacent about this, as I can see the same system easily taken over by the outsourcing companies like G4S and Serco in Britain’s privately run prisons.

This is not justice, not punishment nor rehabilitation. It is simply capitalism and slavery. And needs to be stopped.

RT: McDonnell States Labour Will Take Back Rail, Water, Energy and Royal Mail

September 25, 2017

I’m giving this clip from RT’s coverage of the Labour party conference a massive thumbs-up. It’s a short clip of McDonnell stating that they intend to back rail, water, energy and the Royal Mail to give them to the people, who actually use and work in them. They aim to save the country and industry from the Tories’ mixture of belligerence and incompetence. And their commitment to a fairer society does not end at Dover. Just as they want a Britain for the many, and not the few, so they want a Europe for the many and not the few. This means, while respecting the results of the Brexit referendum, they will be working with our European partners during the transition period. And they will stop the Tories’ brutal treatment of immigrants.

Now we’re going to hear the screams and angry wailing from the neoliberals – the Tories, the Lib Dems and the Blairites. They’ll all start ranting now about how this is just discredited ‘Trotskyism’, that will wreck the wonderful, strong economy nearly four decades of Thatcherism has created. And, of course, the Tories, whose cabinet is stuffed with toffs and millionaires, will immediately start claiming that it will make working people poorer.

It’s none of these things. It’s good, solid, traditional Labour policy. The type of policies that gave this country decades of economic growth and higher standards for working people after the war. This was a Labour party that ensured that there was a real welfare state to look after the poor, that unions did represent the working man and woman against exploitation by their employer, and that an increasing number of young people could go on to uni without worrying about acquiring tens of thousands of pounds of debt at the end of it.

And if Labour does, as I fervently hope, renationalize those industries, I would very much like a form of workers’ control implemented in them. One reason why the Tories were able to privatize these industries was because, when Labour nationalized them after the Second World War, the party was too timid in the form nationalization took. The state took over the ownership of these industries, but otherwise left the existing management structures intact. This disappointed many trade unionists and socialists, who hoped that nationalization would mean that the people, who actually worked in these industries would also play a part in their management.

I’ve no doubt that if such plans were drawn up, all you’d hear from the Tories and the other parties would be yells about surrendering to the union barons, along with Thatcherite ravings about the Winter of Discontent and all the other trite bilge. But as May herself promised that she would put workers in the boardroom – a policy, which she had absolutely no intention of honouring – the Tories can’t complain without being hypocritical.

As for the power of the trade unions, as Russell Brand points out in his piece attacking Rees-Mogg, most of the people now relying on food banks are the working poor, whose wages aren’t enough to stave off starvation. And one of the reasons why this is so is that the Tories and then the Blairites have done everything they can to break and destroy the unions, so that the owners of industry can pay the workers a pittance and sack them at will.

And the Tories are treating immigrants brutally. We’ve send them send the vans around and put up posters telling immigrants to hand themselves in. And there have been outbreak of violence at the detention centres for asylum seekers again and again because of racist violence and bullying by the outsourcing companies running, like Serco, or G4S or whoever. And this is quite apart from the sheer racist venom spouted by the Tory press – the Heil, Scum, Express and so on.

This is a fine speech with excellent policies. Policies that hopefully put an end to four decades of Thatcherite misery, poverty and exploitation.

Vox Political: Tory ‘British Jobs’ Policy Taken from Mein Kampf

October 6, 2016

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Adolf Hitler and the previous Tory PM David Cameron. The face has changed, but its getting harder to tell the difference between the Tories and the Nazis.

Mike has a very ominous piece about the startling similarity between Theresa May’s ‘British jobs for British workers’ policy, announced yesterday, and those of the Nazis. The two policies are identical, as far as I can tell, and this struck the LBC presenter James O’Brien so hard that he announced it on his own programme yesterday. Amber Rudd had made a speech stating that companies will be compelled to list the numbers of foreign workers they employ, in order to give preference to British workers. Mr O’Brien read out Hitler’s statement of precisely the same policy, for the exact same reasons, as contained in chapter 2 of Mein Kampf. He said at first he was reading part of Rudd’s speech, but later corrected himself after he had read out the passage, and admitted where it was really from. He said

“If you’re going to have a sharp line of distinction between people born here and people who just work here, you’re enacting chapter two of Mein Kempf. Strange times.”

Mike also notes that the phrase ‘British jobs for British workers’ was a BNP slogan from a few years ago, and shows the proof in a picture of an election billboard on one of the Nazi organisation’s vans.

See: http://voxpoliticalonline.com/2016/10/06/radio-presenter-reveals-amber-rudds-speech-echoes-mein-kampf/

There have always been unnerving links between sections of the Tory party and the extreme Right. There was the Anglo-German Fellowship of wealthy businessmen and aristocrats advocating friendship with Nazi Germany before the Second World War. These links were re-established in the 1960s and 1970s, if not before, when the National Front coalesced from a number of different extremist groups, including Arnold Leese’s the Britons and the League of Empire Loyalists. Despite the Monday Club, then a section of the Tory party, banning members of the extreme Right from joining and opening its membership books to inspection by the Board of Deputies of British Jews, the connections with the Fascist right continued under Maggie Thatcher. Thatcher was impressed with General Pinochet’s military dictatorship in Chile, and was personal friends with the mass murderer when he visited Britain. The libertarian section of the Tory party, the Freedom Association, also appeared several times in the parapolitics magazine, Lobster, for its dinners at which the leaders of various South and Central America death squads were the guests of honour. The links between the Tories and Fascism were so strong, that the BBC made a documentary about Nazi infiltration into the party, entitled Maggie’s Militant Tendency, after the Trotskyite entryist groups then a subject of controversy in the Labour party. Maggie showed her customary attitude tolerance and openness to tolerance and media criticism, and had the programme pulled.

Mike over at Vox Political has followed and described the increasingly authoritarian anti-immigrant attitude in Cameron’s government. Remember when he put the vans on the streets encouraging people to inform on illegal immigrants? And the posters which asked immigrants to turn themselves in, promising free repatriation back to their countries of origin if they did so? How long before the Tories start whipping up popular anti-immigrant hysteria, urging us to be vigilant and watch for illegal immigrants and foreign workers? Perhaps May will also start organising house to house searches for those that have gone underground, while those caught are rounded up and put into concentration camps for their own protection. Guarded, no doubt, by G4S, who have done such great work providing security staff for the present detention centres.

Mike commented on one of his blog pieces about the latest Tory attack on immigration that the Tories are trying to set Brits and immigrants against each other in divide and rule strategy. Keep the two at each other’s throats for scarce jobs and welfare benefits, all the while cutting down on the latter after running scare stories in the Heil and Murdoch press about immigrants occupying council houses and taking unemployment. All the while keeping from the public the fact that immigrants aren’t taking native Brits’ jobs, and are actually net payers into the welfare state, rather than a drain.

It isn’t immigrants, who are causing unemployment, lowering wages and cutting welfare benefits: it’s Thatcherite, neo-liberal economics, which is encouraging the outsourcing of industry, massive privatisation of whatever is left of the state sector, and the destruction of the welfare state. This is done with the deliberate intention of creating a cowed, fearful workforce, permanently in debt and on the verge of bankruptcy and destitution, ready to take any job, no matter how poorly paid and exploitative the conditions. It isn’t immigrants, who often work in poorly paid and exploitative jobs themselves, who are causing the immense profiteering of this country’s bloated rich. It is the wealthy industrialists, aristocracy and financiers and their puppets, the Conservatives and Blairite New Labour.

This is why we desperately need a genuinely socialist government to create proper jobs and restore the welfare state so that people can rely on decent medical treatment and the state support they need to care for them in sickness, disability, unemployment or retirement. Nye Bevan, the architect of the modern NHS, described the goal of such a socialist government in the title of his book, In Place of Fear. The Tories, on the other hand, believe in ruling by fear. And the grasping immigrant, ready to take British jobs, is another bogeyman set up to keep us afraid and divided.

Don’t be taken in. Immigrants are not our enemies. Our real enemies are in government and the CBI. We have to unite, and get them out. Only then can we start building a decent society built on proper compassion and respect.

May Refuses to Release Rape Figures at Detention Centre for Commercial Reasons

July 31, 2016

This shows the hollowness of the Tory Claims that somehow they are pro-feminist, and that the installation of Theresa May in No 10 is somehow an advance for this country’s women.

Mike yesterday put up a piece reporting that the Independent had made a request for the official figures of the number of rapes that had occurred at Yarl’s Wood detention centre, where immigrants are held while their cases are decided. The Indie noted that many of the women held their had been fleeing rape and war in their countries of origin. The detention centre is operated by Serco, one of the government’s favourite outsourcing contractors, along with G4S. Current legislation means that public bodies have to disclose information when it is in the public interest. But the Home Office turned down this request for information as it would harm the commercial interests of the companies running the centre.

Mike asked the obvious question: When did it become acceptable to use ‘commercial interest’ as an excuse to hide rape?

The question is rhetorical. Of course it isn’t. Mike makes the point that the framing of the request for information makes it clear that it has gone on more than once. he also states that as May was the minister in charge of the Home Office, she has the overall responsibility for what occurred there. And if she is indifferent to the crimes and abuse that happened there, what does this show about her concern for the rest of this country’s population?

See http://voxpoliticalonline.com/2016/07/30/when-did-it-become-acceptable-to-use-commercial-interest-as-an-excuse-to-hide-rape/

The Conservative party has repeatedly used the excuse of ‘commercial interests’ to justify their refusal to release details of the failures of private government outsourcing companies, including private hospitals and clinics. I distinctly remember Mike reporting a few years ago on the way requests for information on the standard of care at the private hospitals and hospital management companies contracted in to perform operations and manage PFI hospitals as part of the government’s privatisation campaign, were similarly turned down for the same reason. Yet similarly confidential information about the costs of running public hospitals were to be given to private companies. This was a naked display of the government’s intention to privatise the Health Service, by giving every advantage to the private sector, while covering up their failures. It is exactly the same here.

The excuse that the information must be protected for reasons of commercial confidentiality while the state’s must be public is easily dismissed. If a private company is performing work for the state, then it effectively becomes part of the res publica, and it is in the public interest to examine how efficient and trustworthy that company is, for exactly the same reasons governing the release of information about public bodies. Part of the rationale for employing private companies is that competition leads to higher standards than possible in a bureaucracy. But competition depends on there being competitors, who are aware of the faults of their rivals, and can correct these to offer better services.

The fact that the Tories don’t want to release such information suggests that they’re not interested in genuinely promoting competition. They’re just interested in promoting private companies. It also suggests that the supposed superior performance of the private sector is a myth. If the number of rapes in Yarl’s Wood detention centre was actually lower than those in state management, then I don’t see how there could be any objection to releasing them. It also suggests to me that, outside of the usual recidivists, there are no other outsourcing companies bidding to take over such services. The government has got to stick with Serco, or G4S, or whoever, because nobody else is going to do the job, and if they go, the whole project fails.

This is exactly similar to the government’s promotion of private healthcare and privatisation of the NHS. Jacky Davis and Raymond Tallis in their book, NHS-SOS make the point that there is no market for private healthcare in this country, and that private hospitals themselves aren’t efficient compared to state healthcare. The result is that the government, in the form of New Labour and the Tories, has had to resort to continuous intervention in order to do so. And it’s very obvious that’s also the case here.

Private healthcare doesn’t work, and the NHS should be renationalised.
Private prisons and detention centres don’t work, and should be renationalised.

As for what the government’s refusal to release figures specifically about the incidence of rape shows about May’s feminism, it shows that she has little interest in women’s welfare, or at least, in the welfare of women who don’t belong to the upper and upper middle classes. Rape, and violence against women in general, is the quintessential feminist cause. Yet here, May shows that she has no interest in combating it, if it means that her precious companies don’t make a tidy profit. Capitalism first, women’s safety second. After Angela Eagle’s leadership campaign collapsed, one of the female hacks in the I newspaper lamented the absence of strong, charismatic women in the Labour party, and pointed to the Tories’ election of May as their second female prime minister. But this ignores the fact that Maggie Thatcher did not see herself as a feminist. Her public persona was so aggressively masculine that one of the feminists in the Observer dubbed her ‘the best man in the Tory party’. Much the same has been said recently about Hillary Clinton, who is as aggressively militaristic as any of the male hawks with which she surrounds herself. And the same is true of Theresa May. She represents the ability of middle and upper class women to break through the glass ceiling and take senior positions in politics and management. But she has no interest in protecting the interests, rights, dignity and welfare of the people below her, including women.

Mike says of this incident that it’s about time the honeymoon with her was over. I agree. She will do nothing for the poor, and vulnerable, and will just carry on with Cameron’s policies. The fact that she is a woman is merely a piece of liberal camouflage hiding the harshly, exploitative Tory policies underneath.

Dennis Skinner’s Personal Recommendations for Improving Britain

May 31, 2016

The veteran Labour MP and trade unionist, Dennis Skinner, also makes some political recommendations of his own in his autobiographical Sailing Close to the Wind: Reminiscences, published two years ago in 2014. He summarises his plans, saying

So I’m fighting for a new Labour government to axe the bedroom tax, save the NHS, cut fuel bills, created jobs for the young and raise living standards. My personal manifesto will be to the left of that of the party but I’m committed 100 per cent to the election of Labour candidates across Britain. (p.313).

As for the proposals themselves, he writes (headlines in bold are mine)

I’ve a few suggestions of my own to boost Labour’s popularity and beat the Tories.

End Privatisation

To start the ball rolling we should end expensive privatisation instead of paying a fortune to contractors such as G4S, Serco and Capita that make a mess of services in the process. It’s time we got back to publicly run, publicly owned services provided in the public interest.

Nationalise the Railways

On the railways, the £900m surplus on East Coast trains, operated publicly after the private sector crashed twice, shows us the way ahead. Instead of boosting Richard Branson’s profits, a nationalised railway could make a profit and generate the cash to improve every station in Britain.

A ‘Robin Hood’ Tax on City Speculators

If we want extra money for the National Health Service and social care, we should levy a Robin Hood tax on speculators in the city. Directing the funds raised directly to health and care, including help for the mentally handicapped, rather than to the Treasury, would be immensely popular. We could start with a low rate and increase it when the tax proves to be popular, as I’m sure it will be, by emulating the one per cent National Insurance rise for the NHS when Gordon Brown was Chancellor.

Scrap Trident

Scrapping Trident would free up billions of pounds for a massive house building programme so everybody has a roof over their head and nobody is homeless. The position on council house sales has to change or local authorities won’t build houses if they know they must sell them cheaply after a few years.

End Nuclear Weapons, Restore Local Democracy

The savings from defusing nuclear weapons can also help save local democracy. Councils are being swamped by central government. Powers are either grabbed by Whitehall or transferred to unelected quangos. Ever since the Clay Cross rent rebellion, Whitehall has dictated to communities. We need to reverse the trend.

Nationalise the Utilities

On the question of the utilities – gas, electricity, water – this is the moment to start taking them back into public ownership. We took control after 1945 and right up to Wilson’s final government, when he nationalised aerospace with a majority of only three, public ownership was advanced. To cap energy bills is a good idea but a better plan is to control utilities by restoring public ownership in Britain of firms that are currently owned in France, Germany and almost every country on the globe.

Spend More on Education; End Privatised Schooling

Spending on education more than doubled under the last Labour government, which was impressive. let’s stop the growth of faith schools and misnamed free schools – tax payers fund them so they’re not free – by enhancing the powers of local authorities to champion the education of every single child.

Raise Minimum Wage

We need to end the pay freezes. The people that are carrying the burden of the bankers’ ramp are mainly workers at the bottom of the scale. The Living Wage shouldn’t be optional. Everybody should get it. But let’s not stop at £7.65 an hour outside London and £8.80 in the capital. The trade union campaign for 10 an hour should be Labour policy. A decent day’s work deserves a decent day’s pay.

Ban Zero Hours Contracts

We should introduce legislation to outlaw zero hours contracts and private employment agencies. Playing off worker against worker, ferrying into Britain cheap labour to undercut employees, is poisoning community relations. Sticking 10, 12 or 15 eastern Europeans into a house then deducting large sums form their earnings is in nobody’s interests except cowboy employers. Reasserting the role of Jobcentres as local labour exchanges will improve wages and conditions.

Increase Trade Union Rights

Trade union rights must be strengthened significantly, including the abolition of sequestration. Industrial action requires two sides to be involved in a dispute, yet it is union funds that are seized. Rebalancing employment rights in favour of workers and unions is essential if we are to build a fairer economy.

Abandon Tory Obsession with Fiscal Restraint

And we must escape the dumb economic mantra about balancing the books. There would have been no Spirit of ’45 if Clement Attlee’s goal was to balance the books. There would have been no NHS, new Welfare State, new council houses and unemployment wouldn’t have dropped to 440,000 in 1950, after only five years of the finest Labour government ever. In fact the finest government ever.

We need spending to get people to work and the economy growing. You don’t need a crystal ball to see where we should be going. We can find the way ahead by reading the history books. (pp. 309-12).

He states that they’re not just his ideas, but have been discussed for the last 10 or 20 years in the Bolsover constituency.

I have some caveats. I don’t like the attack on faith schools, having been to an Anglican faith school myself, and I don’t share his euroscepticism. But other than that, I think he’s absolutely right. Thatcherism has done immense damage to this country. Now, after thirty years of it, it is long past the time it should have been discarded.

Three Reforms for the Outsourcing Industry

April 2, 2016

Earlier today I put up a piece about how the members of the Nazis’ industrial advisory had to swear an oath of eternal loyalty to Adolf Hitler, and to use their industries and its profits to building up the Volksgemeinschaft, and so serving the whole community, rather than their own private interests. Well, the Nazis had a kind of outsourcing, in that they appointed the head Allianz, the biggest of the German insurance companies, to head the economics ministry. Hitler also sought the active co-operation of big business, deliberately toning down the anti-capitalist rhetoric and moving to stop the SA and the Nazi ‘left’ wing from doing anything radical like socialising industry.

I do wonder, however, how popular outsourcing would be if the heads of the industries involved had to swear a democratic version of the oath, in which they vowed to serve the democratically elected prime minister and parliament, and to devote their profits and energies to the whole of the British people, conceived on a non-racist basis, rather than on their own corporate profit. To some it probably wouldn’t matter, but I can others complaining at the presumption of having to swear such an oath. Florence in her comment to the post also made the point that, more importantly, the Freedom of Information Act should also be extended to cover them. It’s a good idea, and one many others have made before. It would allow the British public to know what they’re doing, and also allow the firms and sectors we wish to keep nationalised to continue to compete against them. At present the system works in the privatisers’ favour. They can use the FOI to see what the nationalised industries intend, and then try to undercut them. It doesn’t work the other way, of course. If you try to get a peek at what they intend to do, you find it’s prohibited on the grounds of company confidentiality. It’s commercially sensitive information, and so not to be divulged to the public. Even though the nationalised industries have to release it, and the private industries are competing for state business. But nevertheless, that’s how the Tories give work to their paymasters in big business.

I’ve thought about three reforms which might bring about a much needed change in the predatory and exploitative culture of the outsourcing sector.

1. Introduce worker’s representation in the boardroom.

A company’s workforce also have a solid interest in the performance of their company, and can introduce much needed financial stability. Han-Joon Chang points out that businesses in those European countries, Germany and Austria, which have such a system of workers’ representation, are much more stable and profitable financially, than industries which are run exclusively for the profit of the shareholders. Furthermore, for sometime employees in the civil servants had something like this in the Whitley Councils. These were set up during the First World War to compensate workers for the lost of the right to strike. They were dismantled in favour of a less authoritarian system in the rest of British industry after the war, so that they trade unions could carry on bargaining for the workers. Such a system should be revived, and introduced into the outsourcing sector as these have replaced the traditional civil service organs.

2. Boardroom representation of the unemployed ‘clients’ on the boards of workfare companies.

Welfare to work providers exist by exploiting the unemployed as cheap labour, under the guise of retraining workers to help them back into the labour market. However, in order to prevent the gross exploitation of such cheap labour by profiteering companies like Tesco, Sainsbury’s and charities like the Salvation Army, the actual people taken on by these companies to be retrained should also have their interests represented at the management level. This would stop abuses like that Mike covered in Scotland, where one council started a system of fining the people sent to them on the welfare to work course for such trivial offences as tutting, talking back or walking around with your hands in your pockets. Failure to pay the fines could lead you to being thrown off the course, and consequently off benefit. See Mike’s article at: http://voxpoliticalonline.com/2016/04/01/jobseekers-on-council-run-course-face-cash-fines-for-tutting-or-answering-phones/.

3. Part nationalise these companies. As these companies are working on government business, it is right that the state should also have a hand in them to make sure they are properly regulated and managed. Han-Joon Chang has also pointed out that this also has beneficial effect in providing financial stability, as shown by some of the part-nationalised firms in France. Of course, this would also mean streamlining some of the management structure, as private enterprise has many tiers of bureaucracy that is redundant under state management.

Or we could scrap outsourcing altogether.

As an alternative to all the above, we could just get rid of the ludicrously expensive, bureaucratic and profiteering Private Finance Initiative and Public-Private Partnerships, to renationalise those industries and services that should never have been put out to private tender in the first place, like schools, prisons and hospitals. And then we could set up unemployment retraining schemes that would work for the unemployed, not the overpaid heads of the outsourcing companies, like G4S, Serco, Maximus and the other wasters.

Private Eye from 2011 on the Corporate Sponsors of Cameron’s Outsourcing Policy

March 15, 2016

Private Eye ran this article in their issue for 22nd July – 4th August 2011, on the outsourcing corporations sponsoring the conference at which David Cameron released his policies, and the massive layers of corporate bureaucracy involved, as well as the way the taxpayer is expected to pick up the pieces for commercial company’s failures.

Will It Workfare?

When David Cameron launched his “Open Public Services” white paper last week, he did so at a conference arranged by a think-tank funded by the very firms who will benefit from the privatisations his document proposes.

Cameron unveiled his plan at a Canary Wharf event hosted by “Reform”, a right-wing charity funded by business “partners”. Cameron and his ministers regularly appear at Reform events; and the PM proposed “releasing the grip of state control and putting power in people’s hands”.

The list of Reform’s backers suggests who those people will be. They include leading hospital privatiser General Healthcare, prisons and schools firm G4S, cleaning and catering outfit Sodexo and all-purpose giants Serco and Capita. Telereal Trillium, which already gets £284m a year for running government properties, also funds Reform, as does PA Consulting, which makes millions as an adviser on several privatisations.

But will the outsourcing plan actually work? given how existing arrangements are panning out, it seems unlikely.

Days before the white paper, the Department for Work and Pensions quietly published some research on the previous government’s “welfare-to-work” outsourcing scheme, which pensions secretary Iain Duncan Smith will soon expand with a new “work programme”. The model involves layers of bureaucracy that would be derided in the public sector; first “prime providers” creaming off the fees, then subcontractors doing the leg work. And it’s not going well.

The DWP report reveals that, so parlous is the economics, “60 per cent of subcontractors have sough financial assistance from their prime provider”. As for the notion of the private sector bearing the risk, the researchers record: “The 23 per cent of subcontractors receiving guaranteed referrals from prime contractors are much more likely to feel financially secure.” When the insecurity of any of the 77 per cent translates into failure, the taxpayer will pick up the pieces.

Perhaps more revealing than the research is the fact that it was conducted by PricewaterhouseCoopers. With the inside track, PwC last month withdrew its bid to act as a prime provider and subcontractor on IDS’ new work programme.

PS: The work scheme is at least providing jobs for former Labour ministers.

Jim Knight, given a life peerage after losing his South Dorset seat in the 2010 general election, is a former employment minister who last month became a non-executive director of Alderwood Education.

This company was launched specifically to cash in on the Duncan Smith initiative; its executives saying that “welfare to work is a huge growth opportunity”. Well, it has been for Lord Knight, who until recently was an opposition employment spokesman in the upper chamber and now joins a gaggle of other ex-Labour ministers in the work programme field. They include David Blunkett (A4E), Jacqui smith (Sarina Russo and Angela Smith (Vertex).

I’ve already written pieces about the malign influence of Reform on the government and its vile policies. I can also remember reblogging pieces from Johnny Void as well as posting bits from Private Eye about how these firms were indeed failing, and having to be bailed out by the taxpayer after aIDS’ wretched welfare-to-work programme spectacularly failed to get people into jobs. Of course, the whole point of these organisations is not to combat unemployment, but to give the illusion of doing so, while giving work to the Tories corporate donors.

Vox Political: Police Considering Handing 999 Calls to G4S

November 12, 2015

Mike has posted a number of very important, ominous pieces about Tory reforms to the police force, reforms which will undermine the police as a public, state institution tackling crime, and deny those arrested of their fundamental right to legal representation and a fair hearing.

All this is being done in the name of private profit and cutting costs.

Last week Mike revealed the news that the government was considering putting 999 calls in the hands of G4S. Even without their record of incompetence, which has included letting prisoners escape while under their escort to the courts for trial, this would still be a matter for concern for corruption and conflict of interest. On of the company’s major shareholders is the husband of Theresa May, the current head of the Home Office.

See Mike’s story: http://voxpoliticalonline.com/2015/11/08/police-forces-consider-company-part-owned-by-theresa-mays-husband-to-handle-999-calls/

The next day, Mike posted up this story, expanding on the news: http://voxpoliticalonline.com/2015/11/10/more-cuts-mean-privatised-police-for-profit-theresa-may-call-it-what-it-is/

Not only are Leicestershire, Nottinghamshire and Northamptonshire police forces considering granting the operation of their 999 lines to the company, but Theresa May has announced that she intends to give G4S and other private security firms and government contractors like it police powers. This will be ‘when the time is right’, of course. Mike points out that this is truly policing for profit, whatever May says to the contrary.

The Tories have been floating the idea of privatising the police force for nearly a quarter of a century. In Christmas 1991 I recall the Mail on Sunday running a story about the wonderful, Minarchist Tory Britain that would be ushered in the majority of MPs were women. This included a privatised police force, hired by individual communities. It’s an idea ultimately lifted from Rothbard and the American Libertarians. It was put into a feature about a future parliament controlled by women, as the Daily Mail has always aimed at a female readership, despite having a highly reactionary attitude to feminism, and an attitude towards women that comes dangerously close, and at times has crossed over into misogyny. If you want an example, think about the various articles the Mail has run demanding that women return to their traditional roles in the home. Or the photographs of underage, teenage girls, accompanied by sexual captions commenting on their attractiveness.

The Mail was hoping with this story to capitalise on the support the party had received from women, partly due to the election of Margaret Thatcher. This was despite the fact that Maggie had no women in her cabinet, and most of her policies actually harmed them as women form the majority of workers in the low-paid sectors.

It was also about this time that they launched the old propaganda line about national economics being similar to budgeting for a household. The article claimed that women automatically knew to vote Tory, as they naturally have a better understanding of men through handling the household budgets. This is a bit of specious, condescending flattery, as running a household is not like running a national economy, even if the word ‘economics’ ultimately does come from the ancient Greek term for ‘household management’. And it doesn’t impugn anyone’s ability to run a home to point this out.

The story was run at the beginning of Major’s ministry, and much was made of his inclusion of women in his cabinet, like Virginia Bottomley and Edwina Currey. If I remember correctly, the article claimed that the privatisation of the police was a police particularly favoured by Bottomley. Now nearly a quarter of a century later, it’s being announced by another female politico, in this case Theresa May. I wonder if this is entirely coincidental, or if the Tories feel that this would look far better being announced by a woman. Perhaps they hope that by specifically appealing to women, they can make it look like some kind of neighbourhood policing, done by corporations that know the needs and requirements of their local communities, rather than what it is: the assumption of authoritarian powers of arrest and detention by a private corporation, acting only for the profit of its senior management and shareholders.

If they are trying to present it as such, which I recall the Daily Mail article attempting to do, then backing G4S and other government contractors seems to me to be a grave error of judgement. Apart from letting their prisoners escape, I also remember that one of them was involved in serious riots in a refugee detention centre, which employed them. The inmates had risen up in protest at a series of abuse committed by the centre’s wardens, who were not state screws, but security guards in one of these private firms.

I also wonder if the person, who dreamed up this idea, has also seen some of the same Science Fiction films I have. Like the Heavy Metal movie and Robocop. The Heavy Metal movie was an ’80s animated film, based on the adult comic of the same name, which was the Anglophone version of the French Metal Hurlant. It was an anthology based on the comic’s various strips, linked by a story in which a young girl is led to realise that she is a warrior woman with cosmic powers, dedicated to fight evil.

One of the stories is set in a decaying future, where the police act like a private detective agency. The victim comes in, reports the crime, and then is expected to pay for the costs and manpower of the investigation.

The other film is another flick from the ’80s, Robocop. This was set in a decay, near-future Detroit, where crime was rampant and the police force had been privatised and handed over to a private corporation, OCR, or Omni-Consumer Products. Beset by bad management and suffering from an appalling death rate at the hands of local criminal gangs, Detroit’s boys and girls in blue go on strike. Meanwhile, the company has been trying to crush crime by using robots. These are failures, the prototype malfunctioning lethal during a boardroom demonstration in which it fatally shoots one of the corporation’s executives pretending to be an armed villain.

So the company decides to try again, this time using a machine which will also be part human. They set a new, rookie policeman, Murphy, up to suffer a brutal shooting in order to supply a suitable subject for transformation.

Directed by Paul Verhoeven, it’s a fast-paced, ultra-violent action movie. One of my mother’s friends went to see it at the cinema when it came out, and left feeling physically ill because of the graphic violence. Despite this, it is a good movie, with a sympathetic treatment of the resentment and anger of the demoralised cops, and the central character’s own struggle to remember who he is and regain what little he can of his lost humanity. It also makes the point that what people need on the streets isn’t efficient machines, but real people with compassion and empathy towards the victims, as well as the aggression and determination needed to tackle offenders. In one scene, Murphy as Robocop saves a woman from rape by shooting her attacker in the crotch. The victim runs to him to offer her thanks. But the Robocop machine can only diagnose her as traumatise, and impersonally calls a rape crisis centre on her behalf before going on to his next assignment.

And just as Superman is powerless when his enemies wield Kryptonite, so Robocop also has a built-in weakness. His manufacturers have built into his programming a secret protocol that prevents him from apprehending or harming any of the corporation’s employees or management. It is only when the board chairman – the Old Man – sacks the villain that Robocop is finally able to get justice and avenge himself by shooting him.

Robocop is, of course, very definitely SF, though possibly not so far away from reality. I doubt that we will ever be able to create cyborg super-cops any time soon. Detroit was and is a declining city with a severe crime problem. Furthermore, the storyline’s partly based on the city’s privatisation of its services. It did not, mercifully, privatise the police.

Now a privatised police force in the system May and her bosses are advocating clearly wouldn’t charge individuals for investigating crimes. But they are going to charge the state for their services. And in order to make sure they remain profitable and give a dividend to their shareholders, they will have to economise and make cuts. Mike has already reported on the concerns by the police that Tory cuts to their budgets of up to 25 per cent will leave them unable to properly investigate and prevent crime, and arrest offenders. So it looks like handing over police powers to the likes of G4S will actually increase it, not cut down on crime.

And as with Robocop, there is the problem of corruption in the assumption of the state’s powers of arrest and punishment by a private corporation. There have been major scandals over corruption in normal police force, particularly the Met and the West Midlands forces. People have been wrongfully arrested and suspects beaten, as well as collusion between the police and criminal gangs. It has been hard enough bringing these cases to justice. I doubt very, very much that the task will be any easier if policing is handed over to private companies. How many private policemen or women would dare to risk arresting a manager or senior boardmember?

And finally, there is the matter of principle that justice should always be public, and only the state should have fundamental right and trust to arrest, detain and punish offenders. The Mail on Sunday’s Peter Hitchens, while in many respects a highly reactionary arch-Tory, has stated that he opposes private prisons on this exact point.

So just on considerations of efficiency, competence, and the philosophical foundation of the state as the public arbiter of justice, this is an appalling decision. But this all counts for nothing when the Conservatives see an opportunity to turn a quick buck from privatising a public utility.

I doubt very much, however, that they will go as far in their privatisation of the justice as Rothbard advocates. That would mean the privatisation of the courts themselves, so they could receive all the benefits of commercial competition in a free market economy. That’s anarchism, and whatever the Tories say they stand for in terms of personal freedom and free enterprise, they have always stood for a highly authoritarian society backed by the use of force against the lower orders. The very last thing they want to do is dismantle that. Rather, they are doing everything in their power to reinforce and strengthen it.

UKIP, and Race Riots over Repatriation

February 18, 2015

UKIP, unsurprisingly, have been very, very angry about Channel 4’s drama-documentary, 100 Days of UKIP, which showed the country ravaged by race riots and factory closures after UKIP the May election. It was apparently a gross smear, and the Kippers have especially been outraged by the real footage included in the fictional drama of various leading Kippers saying outrageously bigoted, racist remarks.

Obviously, it is absolutely disgusting for a programme like that, pointing out the dangers of such an administration, to include material that was actually true.

Like much of their utterances, it’s complete nonsense and shows what a completely twisted view of the world they actually have, quite at variance to reality.

I wonder how many of them actually believe that illegal immigrants and their friends and neighbours, wouldn’t actually resist being arrested by police snatch squads. UKIP surely can’t really be so ignorant as think that this wouldn’t result in riots?

Let’s look at an example. Way back in the 1990s the police and immigration authorities descended to arrest a female migrant, who was staying here illegally. I can’t remember the details, but I do remember that she resisted her arrest and was duly placed in some kind of restraining hold. If I remember correctly, she died during the arrest, and the police were faced with a mob of extremely angry neighbours trying to help her and release her from the cops.

Poor treatment and brutality inflicted on immigrants at government detention centres by our old friends G4S, including deaths, have also resulted in rioting, unsurprisingly.

It therefore doesn’t take much of an imagination to predict that if UKIP came to power and started mass arrests and deportations of illegal immigrants that violence and civil unrest would swiftly follow. Some of us can still remember the incident a decade ago when the permatanned Kilroy-Silk, who had formed his own, extreme right-wing anti-immigration party, Veritas, had ordure poured over him while campaigning for his outfit. His anti-immigrant stance was blatant, to the point where he asked one French worker when he was planning to go home. When the visitor from across La Manche said that he was returning home in six months, Kilroy impatiently asked, ‘Why not tomorrow?’ Given just how emotive the issue is, and the sheer offensiveness of the extreme right, who hold them, it’s not remotely surprising that some physically expressed their disapproval of them. Kilroy and Veritas have more or less vanished since them, as UKIP has emerged to become the major anti-immigration party, hovering up votes and supporters from the rest of the extreme and far right.

But if they won, and did try to put their harsh policies into practice, it would result in deaths, violence and rioting. UKIP are fooling themselves if they can’t see that.

Worse, by denying it, and accusing those, who do predict it of libel, they attempt to fool others.

Don’t be taken in. Give them the boot in May.