One of the good aspects of Private Eye that has kept me reading it – just about – is the way it has covered the deep and pernicious connections between the political parties and big business. And in their issue for 15th-28 June 2001, right at the beginning of Blair’s second term in government, the Eye revealed his plans to privatise the NHS and the education system in the article ‘How the New Government Will Work’. This ran
Tony Blair and Gordon Brown are in two minds: should they privatise the entire delivery of public services or just some of it? To help them decide they are consulting the best minds money can buy.
For a start, Downing Street has a report from the Blairite Institute for Public Policy Research. It recommends that private firms deliver health and education on the widest possible scale. The report, a final paper from IPPR’s “Commission on Public Private Partnerships”, claims that “the crucial ingredient that the private sector possesses and the public sector needs is management.”
The report was paid for by the Serco “institute”, a front for the firm which privately runs a slew of Britain’s prisons and immigration detention centres, including the grim “Doncatraz” Doncaster gaol. Serco failed to win the air traffic control privatisation precisely because of worries about its management.
The report was also supported by Nomura, Japanese bank with a big interest in private finance initiative-style (PFI) deals: Nomura’s management of army housing under PFI has been lamentable. KPMG chipped in to support the report as well. It is not a disinterested party either. KPMG advised on 29 hospital PFI schemes, and many other deals outside health.
The giant accountant’s role in these hospital sell-offs has only come under indepdent scrutiny once: at Dartford and Gravesham hospital. The national audit office (NAO) found that, despite KPMG’s “healthcare” advice, the new hospital probably made no financial saving but did cut beds drastically. KPMG’s own fees were originally tendered at £152,000. It finally billed the NHS for £960,000. For good measure, the Norwich Union, which also put millions in PFI, invested in the IPPR report too.
Martin Taylor, chancellor Brown’s friend who used to run Barclays Bank, acted as “commissioner” in drawing up the IPPR’s advice. He is perfectly suited to the job: as an adviser to Goldman Sachs he is in the pay of a multinational bank which wants to make a profit out of Britain’s poor. Goldman Sachs is involved in PFI: it originally funded the PFI buy-out of all Britain’s dole offices.
As the “honorary secretary” of the Bilderberg group, Taylor is also involved in the secretive corporate schmoozing of big name politicians (he signed up for Bilderberg originally alongside Peter Mandelson). And when he ran Barclays, he showed his “secret ingredient” was disastrous management. Under his stewardship the bank lost £250m gambling in Russian financial markets, and had to stump up £300m to bail out the absurd American “hedge fund”, Long Term Capital Markets.
Eventually Taylor was ousted by a boardroom battle in November 1998 before he could cause more damage. Now he’s decided to help the public sector.
The treasury meanwhile wants to take a second look at IPPR’s prediction about the efficiency of privatisation. In particular chancellor Brown wants to test the idea that the private sector gets greater productivity out of employers through “reskilling”, “efficient shift systems and better motivation” – rather than low pay, poor conditions, long hours and casualisation.
To test the theory he will commission a study by the Office of Government Commerce. This office in turn also has a private manager: Peter Gershon, Britain’s highest paid civil servant on £180,000 a year, plus performance benefits and a three-year contract.
He was formerly chief operating officer at British Aerospace. But far from being expert in efficiency, BAe is best at massive cost overruns, project failures and non-competitive tendering. The managers in charge of the Tornado, Bowman Radio and Type 45 destroyer programmes – all plagued with late delivery and technical problems – reported directly to Gershon.
Since then, Serco have become notorious for their massive inefficiency and the inhuman conditions at the prisons and detention centres they run. One of the most notorious of the latter was Yarl’s Wood, which was so atrocious the asylum seekers rioted. And I don’t think that was only one either. I also remember the outrage that the government’s sale of the army barracks to Nomura caused.
Goldman Sachs and Lehmann’s Bank caused the 2008 world banking crash, ushering over two decades of cuts and austerity, which has made conditions for the poor even more worse. For those who are managing to survive the low pay, monstrous levels of debt, and the almost non-existent welfare state. This has forced millions of people onto food banks to keep body and soul together, and hundreds of thousands are suffering from starvation, or ‘food poverty’ as the media now delicately put it. And I forget what the death toll from this is, it’s so high.
As for low pay, poor conditions and job insecurity – that all increased under Gordon Brown, and has increased even more so under the Tories, as it all keeps the working woman and man down, cowed and fearful, in her and his place.
And the Bilderbergers will be familiar to anyone interested in conspiracy theories. They were some of the ‘Secret Rulers of the World’ covered by Jon Ronson in his documentary series on Channel 4 of the same name.
I dare say some of the names involved in the privatisation agenda has changed, but you can bet it’s all going to come in with Starmer, despite his retention of Corbyn’s election manifesto. ‘Cause that was popular. Now it looks like he’ll undermine it by starting to ignore it.
And we’re back to Blairite misery, despair, poverty and starvation again. Except for the multinationals and their utterly talentless managers. It all looks pretty good for them.
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