Posts Tagged ‘KPMG’

Private Eye on ChangeUK MP Stephen Dorrell’s Role in Disastrous and Exploitative Tory Policies

May 1, 2019

This fortnight’s Private Eye, for 3rd – 16th May 2019 has an article about the major role the former Tory MP Stephen Dorrell played in creating and promoting the disastrous Tory policies of rail privatisation, the Private Finance Initiative and the privatisation of the NHS. These are policies which the magazine speculates will make him unpalatable to those centrist Labour voters that ChangeUK hopes to appeal to. The article runs

The adoption of former Tory health secretary Stephen Dorrell as a Change UK candidate in the European elections may be a Tory too far for ex-Labour voters wanting to switch to the centrist cause.

Dorrell’s Tory CV harks all the way back to the dying days of the Thatcher era when he was a whip – a supposedly “wet” Tory helping push through her ultra “dry” policies.

Under John Major, he became a Treasury minister, active in the Rail Privatisation Group behind the sale of the railways. Against expert advice, Dorrell was one who pushed for separation of responsibility between trains and track – with dire results. Railtrack, the privatised track operator, eventually collapsed after lethal crashes caused by poor maintenance.

As health secretary it was Dorrell who began the 20-year disaster of the private finance initiative (PFI) in the NHS. “I am a strong supporter of the PFI,” he told the Commons, calling PFI “the best opportunity that we have had in the history of the NHS” to “deliver the best healthcare.” It wasn’t. And it didn’t.

Dorrell launched a failed bid for the party leadership in 1997 and never held a ministerial job again. Later, under the coalition, he was seen as a critic of Andrew lansley’s NHS reforms – but not too loud a critic.

Having left parliament in 2015, he has kept up his interest in giving corporations access to the NHS, chairing Public Policy Projects, a subscription-based outfit “focused on the big issues in health and social care”. His group arranges breakfasts and receptions for businesses to meet political and NHS insiders. Recent events have included meals iwth health secretary Matt Hancock, housing and communities secretary James Brokenshire, Treasury committee chair Nicky Morgan and top NHS officials.

Dorrell has also worked as a healthcare and public services adviser to KPMG since 2014; and last year became an “associate” of Cratus Communications, a lobbyist for developers. If Change UK really wants to fix the UK’s “broken politics”, it may have to cast its net a little wider. (P. 7).

These are all very good reasons why genuine Labour voters shouldn’t vote for him. But they’re also reasons why traditional Labour voters shouldn’t vote for any of the former Labour MPs in Change UK. All of the so-called Labour ‘centrists’ are really nothing of the sort. They’re red Tories, as fanatically keen on privatisation and the dismantlement of the NHS for the profit of private healthcare firms as the Conservatives. Blair was responsible for the introduction of much of the legislation allowing the NHS to purchase services from private healthcare providers, including the operation of the health centres and polyclinics, which he hoped would be run by private firms. His health secretary, Alan Milburn, wished the NHS to become simply a kitemark for services provided by private healthcare firms.

The real centrists and moderates are Jeremy Corbyn and his supporters, who wish to renationalise the NHS, the rail companies, water and part of the national grid. These are policies both the Tories, Change UK and the Labour ‘centrists’ loathe and detest. Just as they loathe and detest his plans to renew and strengthen the welfare state and give workers back proper employment rights and powerful trade unions able to defend them.

As Mike, Zelo Street and the various other left-wing bloggers have described on their sites, Change UK and its mixture of former Tory and Blairite Labour MPs shows that there really isn’t any difference between the two.

Private Eye’s article is thus a very good reason not to vote for Dorrell personally nor his wretched party in general. And the solid support for Blair’s own privatisation and destruction of the welfare state by Change UK’s former Labour MPs and their fellows still in the Labour party also demonstrates why working people need to see a genuine socialist Labour party under Jeremy Corbyn once again in power and winning elections, from the European all the way to Westminster.

Private Eye on the Tax Avoiders in Cameron’s ‘Business Council’

April 10, 2015

I mentioned in the last post on the Daily Mail’s hypocrisy in demanding that Kraft foods stop avoiding paying British taxes, while its owner, Lord Rothermere, is another tax dodger using the non-dom status inherited from his father. The right-wing press was outraged this week by Ed Miliband’s statement on Wednesday that he was going to end the non-dom tax loophole that allows Rothermere, and others like him, to avoid paying tax. They claimed that it would drive senior businessmen out of the country.

Way back in their issue for the 15th – 29th October 2010 Private Eye published a brief article on the numbers of businessmen avoiding taxes through offshore companies and the like. They were a refutation of Cameron’s continued refrain that ‘we are all in it together’, and that everyone was suffering equally during the recession. They had also benefitted personally from Cameron by being selected for his business council.

David “We’re all in this together” Cameron has chosen a patriotic bunch to sit on his “business council”.

One of them, Martin Sorrell, has already moved his company, advertising group WPP, offshore to avoid tax; while Paul Walsh, of drinks company Diageo, has threatened to do the same.

His company already diverts most of its profits out of the taxman’s grasp, having “offshored” ownership of British drinks brands such as Johnnie Walker. A similar ruse helps drugs giants GlaxoSmithKline avoid millions of pounds of tax, but that hasn’t stopped its chief executive, Andrew Witty, from joining Cameron’s council as well.

Also among the business sages is the man behind a great deal of such dodging over a decade at the top of one of Britain’s biggest beancounters, KPMG, Sir Mike Rake.

The captains of industry will no doubt have been pleased to note the shift in rhetoric on tax dodging from chancellor George Osborne in his party conference speech. Gone was the “immorality” of (legal) tax avoidance that his Lib Dem deputy Danny Alexander had condemned the week before. In a carefully worded speech, Osborne’s ire was conspicuously directed only at illegal “tax evasion”. This gives Britain’s top businessmen – not to mentioned the hedge fund managers and beancounters who have funded the Tories so generously over the last year – plenty of room to squirrel a few billion away while remaining on the right side of Nos 10 and 11 Downing Street.

The attack on the tax evaders is pretty much an attack on Tory donors. It shows that Ed Miliband himself is independent of at least some of the corporate interest that New Labour also competed with the Tories for. and it also shows the deep, self-interest of the Tory party and their mouthpieces in the British press in moaning about the potential loss of income for these extremely rich men.

As Mike has shown again and again on his articles on some of the prize specimens of Tory MPs, many of them, from Jacob Rees-Mogg to education minister Nicky Morgan and the Wicked Witch of the Wirral, Esther McLie, vigorously demand tax cuts for the rich, and the transferal of the tax burden to the poor through VAT.

It’s not enough that the rich should get richer. They want the poor to get poorer. It’s one of the reasons why they should be voted out next May.

Private Eye 2011 on Circle Health

January 20, 2015

Last week the Circle Health group finally pulled out of its contract to run NHS hospitals. The standards of care were appalling, and the company had not been able to make the massive profit it expected. Four years ago in their 24th June – 7th July 2011 issue, Private Eye printed this story about Circle Health, and what their acquisition of government contracts augured for the rest of the NHS under the Tories’ privatisation plans.

NHS Competition
Circle Health Merry-Go-Round

As the debate rages over greater private sector involvement in a reformed NHS, the aggressive behaviour of one private health firm, Circle Health, is a sign of things to come.

Using the ‘”Any Willing Provider” rules that are designed to increase competition in the NHS (and which will continue even after the Conservatives’ current health reforms are watered down), Circle is trying to force two NHS trusts to give it more surgical work and on better terms regarding price and timing.

Circle Health is 49 percent-owned by employees and often described as a “social enterprise”. But 51 percent of it is owned by private investors, including around 40 percent by hedge funds Odey Asset Management and Landsdowne Holdings. Since 2003 Crispin Odey and Lansdowne’s Paul Ruddock and David Craigen have between them donated more than £560,000 to the Conservative party.

In January this year, Circle Health applied to the NHS Cooperation and Competition Panel to demand that NHS Wiltshire and NHS Bath and North East Somerset give it more work and on better terms. The panel, a New Labour quango, is meant to determine when the NHS should give operations to private firms, in keeping with the edict that “any willing provider” should be considered for NHS work in competition with NHS hospitals.

Under the government’s current “climbdown” on NHS reform, the panel will be moved into the NHS regulator Monitor and become the main enforcer pushing NHS privatisation. This is supposedly less aggressive than health secretary Andrew Lansley’s original plan because the panel will now consider “cooperation” as well as “competition”, whereas before Monitor only had a duty to promote “competition”.

Circle Health is pressing its demands on Wiltshire and Bath, who jointly commission NHS services, because it built its flagship hospital in Bath and needs the NHS work to pay for its fancy. Norman Foster-designed building with “chauffeur drive service”, “five-star hospitality” and a bistro serving “locally-sourced, mainly organis food” prepared by a “Michelin-starred chef”.

Local NHS suits must be hoping the panel, headed by former private healthcare investor Lord Carter, looks fairly at the case. Worryingly, he and health secretary Andrew Lansley appear to be fans of Circle Health: in January they were guest speakers at its annual conference at the firm’s Bath hospital.

According to papers lodged with the panel, Circle Health is angry that out of a £160m local budget, its own potential revenues “have been capped at 6m”. It claims the health authorities won’t offer it more contracts because they want to keep work in-house to “protect NHS providers from further potential capacity reduction”. Circle also claims that the health authorities are favouring the NHS by only offering private sector providers four types of surgery. Circle wants more, including the chance to carry out liver surgery.

The panel is due to give its verdict at the end of the month.

In the same piece, the Eye also had this to say about Ruth Carnall, the NHS head, who was also on the payroll of the private health care industry. Unsurprisingly, she also favoured cuts and privatisation, for which she was suitable awarded.

Congratulations to Ruth Carnall, who grabbed a CBE for services to the NHS.

Carnall flitted between running the “Change Programme” at the Department of Health … and jobs with private health firm Care UK and consultants KPMG. She is currently head of NHS London, where her hospital cuts plan for the capital was so aggressive even slash-happy health secretary Andrew Lansley had to call for a pause.

At both the national and local level then, the privatisation of the NHS has been carried out by politicians and NHS heads with links to private health care companies and the firms involved in the privatisation – a clear conflict of interest. As for Circle Health, the events of the past week shows how right NHS BANES and Wiltshire were not to want to give NHS contracts to this outfit of incompetent profiteers.

Health Regulator Schmoozed by Lobbying Companies

March 22, 2014

David Bennett monitor pic

David Bennett of the Government Healthcare Regulator Monitor – now enjoying company largesse with private healthcare firms.

This fortnight’s issue of Private Eye for the 21 March – 3rd April also contains a story about the way the health regulator, Monitor, is being approached and its chief executive, David Bennett, taken out to a variety of cultural events, by a series of lobbying companies.

Monitor is the government body in charge of supervising the closures, mergers and take-overs that will now occur after the passage of Clause 119. The Eye states that these will become more common as health budgets are further cut and more NHS Trusts are forced into deficit. The health regulator has the duty of ‘promoting provision of healthcare services which is economic, efficient and effective, and maintains or improves the quality of services’. It is therefore required to consider improving competition and the integration of services. The Eye states that judging ‘by the pro-marketization companies schmoozing its senior officials (most of whom are themselves former management consultants), however, competition is likely to win over cooperation every time’.

Monitors chief executive, David Bennett, who was formerly a partner in McKinsey Ross, has been treated to a variety of artistic and cultural events.

Boston Consulting, a US consultancy with a large and expanding health care business over here, took him to the Royal Academy, as did BUPA and FTI Economics. KPMG, who now employ Mark Britnell, who was previously the NHS’ commercial director, took him to a Radiohead concert at the O2 arena. They also took him to a number of receptions and dinners. One of these was for the chief medical officer of the US hospital group, Virginia Mason. BUPA took him to their ‘stakeholder dinner’, as well as a series of receptions for former employees of McKinsey.

Adrian Masters, Monitor’s Strategy Director, was also taken to lunch by Public Projects policy. This organisation describes their ‘central theme’ as “shifting responsibility for the provision of services and systems to independent sector partners’ – in other words, privatisation. Masters is also a former consultant with McKinsey.

Lastly, the Eye mentions that staff from PwC, who advise struggling NHS trusts, also took Monitor’s ‘managing director, provider regulation’ to Lords for the cricket match between England and New Zealand.

The report can be read on page. 20.

In other words, it’s an example of the soft corruption all too common in British politics, in which the heads of government bodies are taken to agreeable lunches and other events by the very people they are supposed to regulate. This case is especially offensive given the fact that all the companies involved are hoping for a piece of the rapidly privatised NHS. As was revealed this week, even the Tories recognise that the public do not want the NHS to be privatised. But nevertheless, as it looks like it’s going to be immensely profitable, they’re pushing ahead for it anyway.

Pride’s Purge on the Stealth Privatisation of the NHS to Atos

September 23, 2013

In an entirely serious piece, Pride’s Purge tells you what you can expect to be done to the British health service from the way it was privatised just across the North Sea in the Netherlands. it begins

‘The NHS is not being privatised with a bang – more with a sly, underhand whimper.

We only have to look to Holland – which privatised its health care system in 2006 – to see how it’s possible for the NHS to be privatised by stealth.

Following the Dutch example, privatisation is happening in three stages.

1) First of all provision of health services is handed over to private companies.

This is already well under way in the UK

2) Then control of the health budget is handed over to private commissioning consortiums made up of doctors and consultants.

This has already happened in the UK

3) Finally, the private commissioning consortiums themselves are taken over by private companies.

In the UK, already over a quarter of NHS Commissioning Consortiums are being run by consultancy firm KPMG.’

The Political Purgative then points out that KPMG was the global accountancy firm, whose French and Dutch branches were taken over by Atos.

The article’s here:
http://tompride.co.uk/how-atos-is-taking-over-the-nhs-by-stealth-under-a-different-name.

The article also shows us that, in this increasingly globalised world, we need to be increasingly aware of what the multinationals are doing in other countries. What is being done to their citizens, will be done to ours. In the slogan of the Communist Manifesto: Workingmen of all countries, unite!