Posts Tagged ‘NM Rothschild & Sons’

MPs and NHS Privatisers: Lord Darzi

February 1, 2015


I’ve blogged recently about right-wing entryism into the Labour party through Demos and other thinktanks set up by Tony Blair’s New Labour. New Labour also carried on and expanded the Tories’ policy of the gradual privatisation of the NHS. Readers and commenters at Mike’s blog over at Vox Political have repeated questioned the failure of many Labour MPs to attack the Tories properly on their manifestly cruel and unjust policies towards the poor. Well, they’re manifestly cruel and unjust, unless you’re a reader of the Sun, Telegraph and Daily Mail. Then they’re exactly what this country needs, and anyone who doesn’t have an income of £50,000 a year is a scrounger, who deserves all they get. Part of the problem is that under Blair, the Labour party became ‘Labour Plc’, as the title of one book on the subject declared. MPs developed very close links with the companies hoping to profit from the privatisation programme, and provided cosy directorships and other lucrative posts for MPs when they left government.

Lord Darzi

Lord Darzi: Health Minister under Gordon Brown, subsequently joined GE Healthcare.

Lord Darzi, Gordon Brown’s health minister, is a case in point. Private Eye ran two stories about him in 2009 and 2010. The first marked his departure from government by describing his meetings and links with a number of commercial firms, including banks and private healthcare companies. The second story the following year was on how he had joined one of these private healthcare companies, GE Healthcare. Together these stories illustrate how privatisation can provide a lucrative career for MPs seeking to profit from the privatisation of the NHS, whether they are Labour or Tory.

The first story comes from Private Eye’s edition for 24th July – 6th August 2009.

Buy-Buy from Him

Lord Darzi’s departure as health minister in Gordon Brown’s “government of all the talents” is a blow for the prime minister, but it’s also a pain for the bankers, private health firms and consultancies who have spent so many hours talking to him.

No doubt they hoped his Next Stage Review of the NHS would lead to the creation of lots more privately funded and run clinics, all set up with loads of management consultancy help. But their gains have been modest so far.

Following freedom of information requests, it emerged that in 2008 and 2009 so far, Darzi had meetings with bankers NM Rothschild & Sons, Apax Capital, UBS Investment Bank and Cinven; with private medical companies Humana Care UK, Humana Europe, United Medical Enterprises, GE Healthcare and the MCCI Medical Group; and with computing and management consultants from IMS Health, IBM, Capita, Dr Foster Intelligence and Serco Solutions.

The minister also had a couple of meetings with Boots the Chemist (which employs former health minister Patricia Hewitt). But now all these executives and lobbyists are going to have to go through the whole process again with another minister (who will probably only be in the job until the election in the first half of next year).

The second story about Darzi was published in the Eye’s edition for 25th June – 8th July 2010.

Revolving Doors
Healthy Appetite

Lord Darzi, the former Labour health minister who has taken a job with GE Healthcare, the medical corporation, was just the first through the revolving door as ex-Labour ministers snap up jobs in the private sector.

The US firm has multiple contracts with the NHS for scanning and IT work – and Darzi had official meetings with GE Healthcare shortly before he stood down last year. He has joined GE’s “healthymagination” board, an initiative that the records show he discussed with the firm when he was a minister.

Darzi says he will only take expenses for joining the US board and will put the rest of the cash into his research fund at Imperial College, London. GE, however, hopes to profit from “healthymagination”, which is a branding and marketing exercise. The company recently ran into controversy when it tried to sue Danish academic Henrik Thomsen for libel in the London courts after he raised safety concern over one of its drugs. The firm dropped the case after a public outcry earlier this year.

The Labour party did not invent the ‘revolving doors’ between government, the civil service and private industry, by which the officials and ministers involved in privatisation took up lucrative posts afterwards with the very private companies either created from or purchasing the former nationalised industries. It began in the 1990s under John Major, where it was a large part of the ‘sleaze’ marking his administration. The French, however, have legislation against it. According to the Financial Times, when a French official was asked about Major’s privatisations and the sleaze, they replied, ‘You call it ‘sleaze’. In France we simply call it ‘corruption’.’ Which is something to think about the next time the Mail goes berserk at the cheek of Johnny Foreigner, and particular the French, to criticise fine upstanding British institutions.

Unfortunately this corruption didn’t end with Gordon Brown and New Labour. It has continued with the Cameron’s and Osborne’s renewed campaign to privatise the NHS. There are at least 92 coalition MPs, who stand to profit from this. One of them is Iain Duncan Smith, the Minister for Incompetence and Killing the Disabled.

This cannot be allowed to continue.

Ed Miliband has promised to reverse the Tories’ plans to privatise the NHS. He deserves our full support.