Privatisation Plans Causing Controversy

In the last week, the government has raised the prospect of two privatisation plans, but one is proving more controversial and emotive than the other.

First, plans to privatise prisons in the UK have been backed by think tank Reform, which has concluded that private companies are better at running prisons than the public sector.

Privately operated prisons out-performed public sector ones across a range of measures, with one of the most important — prisoner rehabilitation — falling in their favour; seven out of 12 private prisons had lower reoffending rates than comparable publically operated facilities.

But it’s the “back-door” privatisation of the UK’s Fire Services that is really causing anger among communities — the idea of “cooperatives”.

What is the government actually looking into?

A statement from the Department for Communities and Local Government says:

Fire and rescue authorities will remain statutorily responsible for this public service and to suggest otherwise is completely wrong.

The government does, however, support co-operatives and employee ownership. We are keen to work with local authorities and their staff wanting to explore the scope for employee-led mutuals, where there is local support and backing.

Cleveland Fire’s mutual
Cleveland Fire and Rescue Service — serving the North East of England — is the first to look at transferring its fire fighting service to an employee-led mutual, something critics are calling the beginning of the full-scale privatisation of our fire services.

A petition on the website 38 Degrees calls on the Coalition Government to “stop your plans to open up our fire service to privatisation, which you are trying to do through the back door”.

The petition has received over 56,000 signatures since being published at the start of the week.

And it’s not just the public who are unhappy. Former government fire minister Chris Leslie slammed the Coalition’s current fire minister, Brandon Lewis, in an interview with the BBC:

The ministers are taking this through a committee — a little known committee in the House of Commons — but actually I think they should have the courage to admit what they are doing, which is out sourcing the entirety of the fire services.

I think it’s a step too far. It’s a different thing saying IT services or human resource management service within a fire fighting service should be outsourced, but to sell off everything is full scale privatisation.

I don’t think that profit should be at the forefront in fire and rescue protection.

But why is there such anger from both public and ministers?

Privatisation’s bad public perception

It seems to me that it’s all to do with public perception. One of the many comments on the 38 Degrees survey pointed to the train operators being an example of how putting profit first has resulted in poorer service.

But, honestly, can we really say that trains are any worse now than they were before 1993? Antiquated “slam door” rolling stock that hadn’t be replaced for decades compared with the trains we largely take for granted today?

A recent study by rail analyst Barry Doe actually found that train season ticket prices were often cheaper in real terms now than they were then. It might not feel like it to the squeezed commuter, but rail services in this country really aren’t that bad.

As I prepare myself for the inevitable backlash of my previous comment, I must return us to the issue of prisons.

What is the reason for the better performance of private-sector prisons?

According to Reform, it is partly to do with flexible working conditions. Such conditions result in higher staff satisfaction and a more diverse workforce, in turn leading to better staff/prisoner relationships, and an overall more positive prison environment.

The think tank has recommended that the government market test all prisons — a process that has only been carried out with 17 of England and Wales’ 131 prisons so far — and that they should all be subject to fixed-term contracts, just like, yep, train operators.

If Reform is correct, this will mean prisons will be more efficient, resulting in higher levels of prisoner rehabilitation.

If privatisation of UK fire services was pushed through, via the back door or not, would performance go the same way?

Keep your eye on Cleveland Fire and Rescue Service, and you may have your answer.