The FT reported that the outsourcing was booming with a surge in the contracts that not seen since the 1980s relating to prisons, defense, police forces and health. They already knew that the first wave of police force privatization was leaked to the Guardian in March. The first tender documents went out for nine prisons last November.
What was the health and social care bill? The FT answered that the new tranche of work will be worth £4bn, however this is certainly a surge, it is a drop in the ocean of the public sector as a whole which in the year 2009-2010, spent a £236bn on services and goods. If it were spent wisely on companies with some basic principles about the pay differential between the top and the bottom, the society would look very different.
Public Sector Commissioning said that there goes wrong and that is they are often dealing with a unique service. For instance, the police, which this paper reports today will soon be run by the G4S. What other business of the market could be held equivalent to a police force? When it is never been privatized before, it is hard to lodge an effective opposition.
However, it is hard for local authorities to commission. Who do they know who has experience of taking over a police force?
What kind of irresponsible idiot would hire someone with no experience. That’s why, the way the tender document is designed is that only people who can prove experience of dealing with huge budgets need apply. Only the big firms could afford the cash it costs to make the opening bid. They become the only viable bidder who is efficacy is rarely tested and when it is it doesn’t matter because this is old chestnut, too big to fail. The central problem here is that it encourages companies to build into areas in which they have no expertise and squeeze out smaller.
REFERENCE:
http://www.guardian.co.uk/commentisfree/2012/jun/20/public-sector-outsourcing-fairness
