Public sector ‘productivity boost’ claim is a
smokescreen for more privatisation
8 June 2010
Claims that £60bn of increased productivity can be squeezed from
the public sector are a smokescreen for the acceleration of the
privatisation of schools and health services.
Unite, the largest union in the country, was responding today
(Tuesday, 8 June) to a new report from the accountants, KPMG which
claims that increased productivity could see public sector savings
of £60bn a year.
Gail Cartmail, Unite Assistant General Secretary for Public
Services said: ‘While no one is against cutting unnecessary waste,
there are bigger – and more sinister – forces at play here.’
‘By privatising health, and education, while at the same time
expecting charities to jump into this gaping void – also known as
the Big Society - to pick up the pieces on low-cost contracts will
reduce the effectiveness, professionalism and joined-up nature of
services.’
‘The KPMG report will be used as a smokescreen so that ministers
can put their foot on the privatisation accelerator.’
‘The reason that public services developed in Britain in the 19th
and 20th centuries was because the state was seen as a more
reliable provider of education and health, than the ad hoc vagaries
of the market.’
Unite also dismissed the much-vaunted ‘Canada’ model whereby
that country reduced its deficit in the 1990s by slashing public
expenditure.
Gail Cartmail said: ‘This was only done by deep and lasting cuts
to social programmes and public services that hit hardest at
working families.’
She said that Canada’s recovery was greatly aided by the strong
economic expansion of its neighbour, the USA, during the Clinton
years. This is not the case for the UK, where many of its EU
trading partners were now struggling with the euro-zone crisis.
-ends-
NOTES TO NEWS EDITORS:
Unite said that recent TUC research showed that 29% of public
expenditure goes directly to the private sector; therefore, a 10%
cut would mean a loss of £16.9bn to the private sector and 200,000
jobs
The Association for Public Service Excellence (APSE) says that
for every £1 of public money invested in public services through
direct employment and purchasing of supplies and services, a
further 64p is generated in the local economy.
For further information, please ring: Gail Cartmail 07768
931 305 or Shaun Noble, Communications Officer 020 7420 8951
/ 07768 693 940
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