Posts Tagged ‘Gas Works’

Vox Political: Jeremy Corbyn to Recommend Councils Run Local Services

February 7, 2016

Mike over at Vox Political reported a story on BBC News, that Jeremy Corbyn was about to tell a conference in Nottingham that privatisation did not work, and that local authorities should take over the management of local services. Corbyn said

After a generation of forced privatisation and outsourcing of public services, the evidence has built up that handing services over to private companies routinely delivers poorer quality, higher cost, worse terms and conditions for the workforce, less transparency and less say for the public.

Mike’s article is at http://voxpoliticalonline.com/2016/02/06/jeremy-corbyn-councils-should-run-local-services/. Go and read it for further information.

This is really going to put the cat among the pigeons. Privatisation was supposed to solve all this, by taking local services out of the hands of bureaucrats and giving them to entrepreneurs, who automatically knew far better than anyone else how they should be run. Local services would be better managed, more efficient, and there would be more ‘choice’. This was one of Thatcher’s favourite terms, it was her automatic buzzword for the supposed benefits of capitalism.

Except that, in many cases, the ‘choice’ was illusory. There were no other companies lining up to take over services. Or if there were, they were targeting the most profitable areas, for obvious reasons. In Bristol First Bus and its fellow subsidiaries have the monopoly of the bus service. There are other providers, but they only operate sporadic services. I think there is more competition over in Bath, but this has produced different problems. I once bought a return from one bus company over there, thinking that it would apply to buses generally, only to be told I couldn’t use it when I got on the bus run by that company’s rival.

What Corbyn is recommending is ‘municipalisation’. There was a lot of talk about it in the mid-1990s, when Bliar scrapped Clause 4. Of course, the talk was a sop to Old Labour about the traditional basis of Socialism – the common ownership of the means of production, distribution and exchange. Of course, Bliar and the other New Labourites were convinced Neo-Liberals, and so nothing was done about municipalisation. It was quietly discarded.

In fact, municipalisation was a very old idea and much local industry was already owned and operated by local councils in the late 19th century. Both Liberal and Tory councils, for example, took over the ownership of the local gas and water companies. George Bernard Shaw, in his paper, ‘he Transition to Socialism’ made it the basis for the transformation of the country into a Socialist state, reconstituted as a federation of municipalities.

He wrote:

We now foresee our municipality equipped with land and capital for industrial purposes. At first they will naturally extend the industries they already carry on, road making, gas works, tramways, building and the like …

… Eventually the land and industry of the whole town would pass by the spontaneous action of economic forces into the hands of the municipality; and, so far, the problem of socializing industry would be solved…

This then, is the humdrum programme of the practical Social Democrat to-day. There is not one new item in it. All are applications of principles already admitted, and extensions of practices already in full activity. All have on them that stamp of the vestry which is so congenial to the British mind. None of them compels the use of the words Socialism or Revolution: at no point do they involve guillotining, declaring the Rights of Man, or swearing on the altar of the country, or anything else that is supposed to be essentially un-English. And they are sure to come-landmarks on our course already visible to farsighted politicians even of the party which dreads them.

Elsewhere he said that when he heard people shouting that Socialism would not work, he thought of them getting their gas from the municipal gas works, walking along the municipal movements on their way to the municipal pharmacy or clinic. Of course, Thatcher saw all this coming and it made her ‘frit’ in her own words. So she was determined to privatise everything she could, to ‘roll back the frontiers of the state’. Well, the ability of private industry on its own to solve municipal problems has long been disproved. What happened to all the Urban Development Corporations she set up after the 1981 riots? They were supposed to be able to regenerate struggling areas using all the power of private industry, without interference from the politicos. In fact, they were all quietly wound up, one after another. And now its time to look again at municipalisation to turn back the disastrous wave of privatisation under which our nation is sinking.

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