Posts Tagged ‘Sodexo’

Outrageous! Government Uses Pandemic to Privatise Even More of the NHS

May 7, 2020

So much for the real respect the Tories have for the NHS! Yesterday Mike put up a piece based on a report in the Guardian about the government pushing through the privatisation of even more NHS services through emergency powers designed to deal with the pandemic.

These powers have allowed the Tories to circumvent the usual tendering processes and award contracts to private healthcare companies and management consultants without the usual competition. The Groan reported that doctors, academics, MPs and campaign groups raised their concerns about this after it emerged on Monday that the outsourcing company, Serco, was in the lead to get the contract to supply 15,000 call handlers for the government’s track and trace operation.

And where Serco goes, the other outsourcing companies aren’t far behind. Deloitte, KPMG, Sodexo, Boots, Mitie, as well as Serco and the American data-mining group Palantir have also been given government contracts to run the Coronavirus drive-in testing centres, purchase PPE equipment and build nightingale hospitals.

They’ve also decided to centralise part of the purchasing process and hand it to yet another private company. The Groan stated that it had seen a letter from the Department of Health instructing local hospitals not to buy their own PPE and ventilators. Instead, purchasing of a list of 16 items, including were to be handled centrally. The items include PPE, but also general, high-value equipment such as CT and ultrasound scanners and mobile X-ray machines.

The Groan considered that this would hand more power to Deloitte, as not only was the accountancy and management consultants responsible for coordinating Covid-19 test centres and logistics at three new ‘lighthouse’ laboratories, they were also given a contract three weeks ago to advise the government on PPE purchases. As the provision of PPE has been absolutely deplorable, with equipment needed her exported abroad, insufficient supplies coming late from Turkey and other faults, so that doctors and nurses have been forced to use masks and gowns made by the public, and even bin-bags, Deloitte should be sacked and fined for their massive incompetence.

Mike makes the point that at the time PPE should be available to as many people as possible, the government is actually making it more expensive. He states that if Jeremy Corbyn had won the election, these items would be free. He also makes the point that it is alleged that Corbyn was prevented from doing so because of sabotage from the right-wingers in his own party. A genuinely free, publicly funded and nationalised NHS was one of the things the intriguers didn’t want. Presented with the evidence of this plotting and sabotage, one Labour MP remarked that it explained why he experienced so much resistance to his attempts to have it accepted as Labour policy that NHS services should be taken back in house. Alan Milburn, Tony Blair’s health secretary, wanted the NHS fully privatised so that it would become simply a logo for services provided by private healthcare companies for the state.

This shabby policy also shows how desperate the Tories are to give rewards to their own donors. a few weeks ago Zelo Street posted up a piece about how one company, which was set to supply ventilators for the government were told that this was off. Instead, the order went out to Dyson, who’s donated something like £10 million to the Tory coffers. This does not seem to be a coincidence.

I also came across a report somewhere that said that the big accountancy firms, Deloitte, KPMG, whatever Anderson Consulting is now, were in trouble. Most of their money comes from consultancy work, but this has dried up since the lockdown. Good! I’m still angry with these parasites for the way they trashed the inland revenue and DHSS for the Tories in the 1980s and ’90s. I don’t think any of them should be given any kind of government contract whatsoever.

It is thanks to the NHS and not a private healthcare system like America’s that the death toll from Boris’ idleness and incompetence isn’t massively higher. It’s a savage indictment of ten years of Tory privatisation and underfunding as it is. This is another example of how much the Tories ‘treasure’ the NHS. They will treasure it right up to the time they sell the last piece of it off.

See: https://voxpoliticalonline.com/2020/05/06/tories-are-accelerating-destruction-of-the-nhs-just-when-we-really-need-it/

Private Eye on the Magistrates’ Partnership with the Private Prisons Companies

April 27, 2016

One of the biggest scandals in America is the relationship between the private prisons companies and legal authorities and local governments. The private prison companies lobby the state legislatures to pass harsher laws, and the judiciary to increase custodial sentencing, all to boost their profits. One of the cases highlighted by Michael Moore in his film, Capitalism: A Love Story, is the case of a troubled teenage girl, who was sent to a private jail by a judge, who was in receipt of monies donated by one of the private prison companies.

According to this last fortnight’s Private Eye, the same has been happening in England. They report that the Magistrate’s Association has been attempting to open a profit-making arm in conjunction with the outsourcing companies that run prisons. After having been criticised for the scheme, the Association is trying to fold it into the Probation Institute, but leaving this corrupt relationship intact.

Here’s the article:

Magistrates

Bendy Beaks

Who is the Magistrates’ Association trying to kid?

Last year it was criticised for getting into bed with the very same private punishment companies which now carry out the sentences imposed by … magistrates. It had set up a commercial wing, the MA Education and Research Network, as part of an “income generation strategy”. Alas, three of its funding partners were the French multinational Sodexo, US import MCT Novo, and Working Links – all of which, thanks to former justice secretary Chris Grayling, now profit from carrying out court punishments.

The move troubled some at the top of the MA as well as its rank and file; and after the Eye highlighted concerns over conflicts of interest, sources told the Eye that there were plans to close the network. But when asked if it would therefore return members’ money used as seed funding, MA communications director Jason Hughes said, on 4 December last year: “There are no plans to close down the network. Your question regarding seed funding is therefore redundant.”

But the Eye has now been leaked minutes from an MA board meeting held two days earlier, on 2nd December, showing a weaselly plan to distance the MA from the scheme. In the minutes, chief executive Chris Brace said the board had decided to dissolve the network and that it would be “incorporated” into the Probation Institute. Among the reasons cited were negative publicity, allegations about compromising justice and judicial independence, and the amount of time spent on “reputational management”.

Troubled members of the MA should know what this means. As Hughes now explains: “The network was incorporated into the Probation Institute; it therefore exists (not closed) with a different ownership and governance structure – however, the objectives are maintained. The legal vehicle by which it was subsidiary of the Magistrates Association has been dissolved, as per the minutes. The [seed] funding … has been allocated to setting up the new initiative and into research about the treatment of women in the criminal justice system.” (Readers may recall that “women in the justice system” were hastily added to its initial research plans after the Eye questioned why its first year was to be focused on “technology” – an obvious commercial interest.)

The Probation Institute website declares that this “new joint Probation and Judicial Matters Professional Network … will include magistrates, probation and … rehabilitation practitioners” – ie, Sodexo et al. The venture is “an evolution of the work that has already taken place within the association’s Education and Research Network”, and aims at “identifying priority areas of research which the two organisations should promote, and to facilitate and encourage contributions from funder”. New name, new legal governance – same old tricks?

If the MA hope this would head off criticism, it hasn’t. Frances Crook, of the Howard league, said: “Taking substantial sums of money from companies delivering sentences calls into question the independence and integrity of the Magistrates Association. Now would be the time to repay the money and be honest with its members about this unfortunate relationship.” (Private Eye, 15th – 28th April, 39).

The relationship between the Magistrates Association and the private prisons industry would have confirmed to anarchists like Bakunin, Kropotkin, and Malatesta not only the basic injustice of the state, but also its links to exploitative capitalism. With a fund-raising network like that, you can understand why the Surrealists, in the first issue of their magazine, demanded that the prisons should be opened and the convicts released. I wouldn’t go that far, but it’s a recipe for terrible miscarriages of justice and bring the British legal system into severe disrepute.

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.

From 2011: Tories Launch Workfare Policies at Conference Sponsored by Workfare Contractors

April 9, 2014

Private Eye in the issue for the 22nd July -4th August 2011 also reported on the way David Cameron launched his policies further placing government services in the hands of private companies, including those running the various workfare schemes, at a conference organised by one of the organisation working for the same companies.

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 sought financial assistance from their prime provider”. As for the notion of the private sector bearing the risk, the researchers record: “The 23 percent of subcontractors receiving guaranteed referrals from prime contractors are much more likely to feel financially secure.” When the insecurity of any of the 77 percent translate 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. The include David Blunkett (A4E), Jacqui Smith (Sarina Russo) and Angela Smith (Vertex).

This provides further proof of the fact that the public-private partnerships favoured by the Right since Thatcher don’t work, are massively inefficient and need to be regularly bailed out by the taxpayer. This is also demonstrated by the way the PFI contracts awarded to the private firms building and running hospitals regularly go way over time and budget. But such contracts aren’t really about providing services efficiently. They’re about giving public money to private firms, which fund the political parties and provide lucrative directorships for politicians.