UNISONActive is an unofficial blog produced by UNISON activists for UNISON activists. Bringing news, briefings and events from a progressive left perspective.

Saturday 31 October 2009

PUBLIC WORKS: Quality Public Services are a true measure of a civilised society

In a speech to an SNP Conference fringe, UNISON Scotland Convener Mike Kirby looks at the history of public provision and slams trusts and outsourcing as a forerunner for privatisation and an attack on jobs, terms and conditions and pensions. In a call for valued, accountable and quality services, he asks why, if other countries can fend off possible accusations on unfair state aid to services, why can't we?

A series of key events and issues this year have sorely tested the electorate's view of politics and politicians and lessened their engagement with the political process.

When we needed a debate on progressive taxation policies to address real need the headlines were captured by the expenses scandal and evidence of petty corruption and greed in our elected representatives.

The cause and effect of the economic crisis was laid at the door of a political process compliant to big business and to be paid for by taxpayers directly through attacks on pay and pensions and through attacks on public services for decades to come.

The illegal and objectively uncertain wars, criticised by the people and the military, have left parliament a poodle and second to American interest and the demands of the military industrial complex.

The concept of a military industrial complex has long been present in the political lexicon It has enabled arms manufacturers to drive public policy in their own self interest by funding political parties think tanks, academic research and media interests.

Since 1945 it has been a driving force for wars It is no exaggeration to claim an analogous situation exists in public services in the UK (and abroad) where public policy in favour privatisation has been driven by private sector corporations and their parliamentary mouthpieces.

And while an element of the political consensus in Scotland has seen cooperation over competition, the competition model rampant south of the border, there is considerable evidence in Scotland of creeping privatisation in various forms removing democratic control and accountability in the management of the public services we value.

As politicians lose face there Is a need to re-build credibility with the voters, the public and our member in trade unions.

We want to see changes that put people before profit and public interest before private greed. Our Million Voices for change campaign aims to counter the misinformation and attacks on public services and public service workers put about by some politicians, some media and representatives of private sector business like the CBI, Institute of Directors and their ‘Think Tanks’ like the so-called 'Taxpayers Alliance'

Let me tell you a Tale of Two Cities.

I apologise to those other Scottish cities but Glasgow is my adopted home.

In 1605 the Trades House and the Merchants House combined to form Glasgow Town Council.

In 1898 Glasgow Corporation was formed to provide proper scrutiny, management and control of public money and public resources, avoiding the worse excesses and thievery of Tammany Hall politics which had been witnessed across the Atlantic.

The late 19th century were heady days for the city, in which Glasgow ranked as one of the finest and richest cities in Europe and was acclaimed as a model of organised industrial society.

Grand public buildings and a host of museums, galleries and libraries were built. Glasgow had more public parks and open spaces than any other similar European city along with a public regulated telephone system, water and gas supplies.

Little wonder that Nathaniel Hawthorne wrote in 1857, "I am inclined to think that Glasgow is the stateliest city I ever beheld".

1895, Glasgow Corporation, directly providing and managing public assets to meet public need.

I'll set aside the recent Sunday Herald questions about the role of councillors in scrutinising public services (I may have a view on fair remuneration). But earlier this year, Glasgow established its ninth limited liability partnership.... Cordia.

Nine such partnerships and trading companies covering community safety patrols and wardens, your libraries and sports centres, repairs and maintenance of social housing, car parking, the management of computer systems, school meals and homecare for the elderly and infirm.

Over £1billion of public money in a move which would have had Nicholas Ridley swooning with delight at the idea of his "enabling authority" coming alive.

Now why is this being done?

Let me quote from a recent council report regarding these 'arms length external organisations' or ALEOs

“ALEOs involved in external trading can expand their potential market and Income base by seeking business from outside the local authority ie these former council departments now have to make a profit from providing public service

"ALEOs are tax efficient, for example allowing substantial savings be made ie they're a tax scam

" ALEOs provide greater flexibility and devolved decision making ie they lead to loss of democratic control by councillors ceding to appointed boards

...and here's the rub.

" ALEOs have greater flexibility in determining the terms and conditions of employees because they have fewer equal pay comparators.

Yes, a council report said that and was adopted by one of the two remaining Labour-led councils in Scotland.

So much for public sector equality duty.

Glasgow is not unique. Various models of elements of privatisation are evident In Scotland's public services.

And when you remove these services from direct councillor control and scrutiny, what do you get? Private investment for private profit.

The farce of GHA Ltd Awarding a £73m contract for housing repairs and maintenance to a private company Connaught which could not meet the contract specifications on key workforce conditions, pensions.

Connaught were sacked after the workforce of 250 spent two days of uncertainty over who was their employer travelling around the city from Hampden Park to Connaught, to the council, to GHA, to their previous employer City Building, before a decision was made.

On leaving the city the UK MD of Connaught was reported as saying that Glasgow was a hostile place for private money.

Glasgow workers said that if the price of private investment was their pensions then that was too high a price to pay.

You have the leisure services trust, set up across Scotland, for a tax scam.

Casualising its workforce.

Breaking away from the Scottish bargaining machinery, trying to impose a pay freeze on its workforce and, as the tail wagging the dog, suggesting that it would set the trend for the council on wages.

You have an information technology project worth £250m over ten years being awarded to a joint partnership with Serco who have a checkered history in housing management and benefits administration with London boroughs sacking them.

They have closed the gold standard local government pension scheme to new starts.

Cordia the home care providers, employs some 9000 mainly low paid women workers who rightly benefited under Equal Pay Job Evaluation and with many still with cases at Employment Tribunal.

Remember the council report: "ALEOs have greater flexibility in determining the terms and conditions of employees cause they have fewer equal pay comparators".

Watch this space.

In total some 15,000 staff are directly employed by these organisations with a further 500 staff being seconded. A tale of Two Cities 1895-2009.

This is being done ahead of a Cosla and Scottish Government Review of Best Value.

It is not necessary at this time.

Other countries can fend off possible accusations on unfair state aid to services. Why can't we?

It is a forerunner for future privatisation of essential services. It is an attack on jobs, terms and conditions and pensions.

These services are delivered by staff not structures. Public service workers are people, not 'human capital'.

They should be more closely involved in any change process. In UNISON Scotland's PUBLIC WORKS campaign, you will find that we are not against change.

We will engage in the pursuit of greater efficiency and effectiveness.

But why waste public money?

In their crusade to modernise public services New Labour are giving vast amounts of taxpayers' money to the bands of consultants. They are everywhere, Defence, Education Inland Revenue, the Health Service.

In his book "Plundering the Public Sector" David Craig asks, Do these wizards give us schools and hospitals that will be the envy of the world? Or are they just the lucky recipients of billions that should have been spent on frontline services.

The public services consensus which has prevailed In Scotland is under considerable strain by developments such as Glasgow and through the "Shared Services Initiative" coming to a council or public service organisation near you soon.

We should not allow the same people who have created the crisis to run more of our public services. UNISON Scotland's PUBLIC WORKS campaign calls for investment in strengthening public provision of essential services. An investment in a New Green Deal building for the future.

And as the Finance Ministers of G20 prepare to meet in St Andrews next month, we say we can't go back to business as usual, where bankers and bonuses matter more than people and public services.

Ordinary people should not have to pay for the crises they did not create.

The TUC's budget proposal in April this year, echoed by the STUC, argued for a £25 billion public investment programme, which would create and safeguard one million jobs.

This would double the UK's fiscal stimulus to 3.25%, bringing it into line with the average stimulus for advanced economies, according to IMF figures.

It wanted a public works programme to be at the heart of the economy recovery plan. A £16.8 billion package of measures, targeted primarily at green industries manufacturing, renewable energy, home insulation and house building, modernising communications and rail.

The economic recovery strategies see all political parties engaging in another rush to the bottom in the competition for cuts.

Well, believe it or not, I'm in favour of cuts

Cut Trident replacement
Cut ID cards
Cut Tax Avoidance and introduce fairer taxation - And on the theme of taxation, yes the Council Tax needs reform but the freeze costs Local Authorities £70 million.

A pay freeze or a cut in a workforce on or below average earnings will not ensure quality at the heart of our public services which provide a safety net and an economic lever in local communities.

Public services must have a valued workforce and be.....
Accountable: Through direct provision and democratic scrutiny.
Essential: Quality Public Services are a true measure of a civilised society.