Public transport and utilities should be run for public good not private profit, says Roger
Posted by Roger Godsiff, MP for Birmingham, Hall Green, at 11:52, Thursday 8 January:
Speaking after train fares were raised above inflation yet again, Roger said:
“Do you feel that you are getting a fair deal from your energy suppliers, water companies or train operators – or do you reckon you are being ripped-off? If so you aren’t alone. Since these three utilities were privatised under previous Tory Governments the consumer – you and me – has seen the cost of electricity, gas, water and train fares rocket – far outstripping the rate of inflation and the measly increase in wages and salaries of most people. But, of course, some people have benefitted.
“The top managers of all these utility services have seen their salaries and bonuses increase massively as they have generated rich profits for the new owners by sacking staff, slashing costs, increasing charges to the consumer and outsourcing ‘customer service’ functions to call centres on the other side of the world!
“So are you, the customer, getting a better deal? Energy companies say there is competition between them – but this is smoke and mirrors. They act like a cartel – following each other in raising prices when they say the cost of energy has risen on world markets – but how often do they reduce their prices when the cost of world oil or gas is plummeting – as it is now!
“And what competition is there among water companies? Answer – none. They are monopolies. Try asking your provider, Severn Trent, if you can switch to Anglian Water and see what they say!
“Finally, railways. Britain’s railways, built by the great Victorians, were the envy of the world. In 1992 the Tory Government, led by John Major, privatised them – something Mrs. Thatcher resolutely refused to do. Since then the train operating companies have received vast subsidies to run the railways while distributing huge profits to shareholders. And, of course, the managers have had their share with high salaries and bonuses! The subsidy – paid by the taxpayer – is now vastly more than it was when the railways were in public ownership! So much for the benefits of privatisation.
“The great Victorians, like Joseph Chamberlain in Birmingham, recognised the limitations of unrestricted unregulated markets and ‘crony capitalism’. That is why Chamberlain initiated a programme of building up the public infrastructure which Brummies were, and are still, proud of.
“I applaud what Joseph Chamberlain did and I want our public services brought back under the control of the people and taken away from the clutches of avaricious predators who have done nothing to give better value to you – the customer and taxpayer.”
Comments
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Posted by Colin, 12:16, Thursday 8 January: (Is this post abusive?) #
There is no doubt that the markets Roger mentions are not working properly. There is also a strong argument that some essential utilities, water, rail, perhaps, might be better under public ownership. However, for most services, including energy, incompetent Governments & bureaucrats should keep their noses out; what is needed is more fair, open & transparent competition, not less. Penalties for 'cartel' type activity should be increased & it should be made easier for smaller, more dynamic Companies to enter these markets.
Posted by Mohammed Hemraj, 14:29, Thursday 8 January: (Is this post abusive?) #
If train fares were reasonable it would have created more demand thus creating an overload and making it unworkable. Anyhow, this Government does not have enough funding to take it to public ownership and this includes essential utilities. What should not be forgotten is that this Government is subsidising rail from taxpayers money and without it the fares would have been much higher. Personally I do not think it will be long before the NHS is privatised.
Posted by M K Parmar, 18:53, Sunday 11 January: (Is this post abusive?) #
I agree with Roger's comments - public ownership will eliminate the profit element but conversely there is nothing to ensure that us the taxpayers will get value for money. As we have witnessed with NHS, for the sake of number crunching, staff were made redundant with hefty redundancy payments and then recruited back as new employees. Without any disrespect, politicians need to be kept out of running utilities and robust separate body should manage them like any private business without blowing big holes in tax payers pockets. We do not want the Public Accounts Committee to "discover" after the event - it would need active management. Aside from that, what assurance/s will the taxpayer have that we do not go back to the days of strife of 1970' and 80's?