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Press Release

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.



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