{"id":1141,"date":"2015-09-24T08:27:16","date_gmt":"2015-09-24T08:27:16","guid":{"rendered":"http:\/\/imjussayin.com\/blog\/?p=1141"},"modified":"2015-09-24T08:27:16","modified_gmt":"2015-09-24T08:27:16","slug":"essential-services-private-or-public-ownership","status":"publish","type":"post","link":"https:\/\/imjussayin.com\/blog\/essential-services-private-or-public-ownership\/","title":{"rendered":"Essential Services – Private or Public Ownership?"},"content":{"rendered":"

\"detroit_water_brigade_human_right-636x332\"<\/a><\/p>\n

Consecutive right-wing British Governments have promoted a privatisation agenda. It is argued that public ownership is incapable of operating a cheap, cost effective, efficient, economical, customer service.\u00a0 Whilst privatisation, meets all that criteria with two added bonuses. Firstly,\u00a0 private investment, which relieves the public purse, and secondly accountability through democratic shareholding, also known as \u2018Popular Capitalism<\/a>\u2019.\u00a0 I do not accept that privatisation brings the benefits claimed nor that public ownership necessarily provides an inferior service.\u00a0 Moreover, I believe, some services are so important, such as water, energy, and public transport, that they should be in public control. Such essential, strategic national assets are unlike any other commodities and there is a worldwide drive to privatise them.\u00a0 Privatisation is bad for the people and for democracy.<\/p>\n

\"water<\/a>Strategic national assets should never be owned by a few. It concentrates the power of corporations enabling them to govern society.\u00a0 Water privatisation demonstrates this. The world is running out of fresh water, a basic human need. There has been a growth in municipal and regional water systems coming onto the international market. Bolivia had their public water system in Cochabamba bought by the American Bechtel Corporation. For a mere $2.5 bn, they owned and controlled all the water in the metropolitan area. Bechtel had exclusive rights to all the water in the district including the aquifer<\/a>. They installed meters and charged for water from co-operative wells and effectively privatised rainwater by prohibiting its collection.<\/p>\n

Price increases made water expensive. \u00a0Unpaid bills gave the company the right to repossess a debtor\u2019s home and auction it. \u00a0As a result, citizens were having to make choices between schooling their children or medical care.<\/p>\n

Protesters known as the Water Warriors wanted a return to public ownership. \u00a0The Government used the military police to enforce the private contract.\u00a0 The people\u2019s continuing protests lead to martial law.\u00a0\u00a0 Following a state of near siege, the death of one protester and many seriously injured, a new water law was passed.<\/p>\n

\"water<\/a><\/p>\n

In America, the cost of water has led to some families being without running water for months. Where a resident owes more than $150 or is behind on payment by 60 days, the water company can turn off the water supply<\/a>.\u00a0 There has been an increase in e.coli, pneumonia, salmonella and severe blood infections.<\/p>\n

Water bills exceeding $4,000 for six-months service had been received. Payment plans once agreed, meant that the bill could not be disputed and could include a lien on property.\u00a0 The problem is so extreme that a charity<\/a> has been set up to help pay the bills.<\/p>\n

 <\/p>\n

\"thames<\/a>In Britain water privatisation has seen healthy profits for the companies. Thames Water (TW) now an offshore<\/a> company owned by the Australian business Macquarie[1. and a group of investment funds.], have posted another annual increase in profits, \u00a0and again failed to pay corporation tax.\u00a0 TW, the biggest water company in Britain, has paid out billions of pounds in dividends to shareholders. \u00a0In the same financial year that TW hiked up consumer bills by 6.7%, they made a profit of \u00a3549\u2009million and received a \u00a35\u2009million rebate from the Treasury. Nonetheless bills are set to further increase by 3.3%.<\/p>\n

In spite of this, the tax payer is bank rolling the construction of TW\u2019s \u00a34.2 bn Super Sewer<\/a> along with an annual increase of \u00a380 to TW customers. \u00a0If the benefits of privatisation is private investment and to reduce public expenditure, it is dishonest that the Government is using the public purse to underwrite the risk to private companies.<\/p>\n

Water, like with many state owned assets that have been sold by the Government is a natural monopoly<\/a>. Therefore, it is not possible for competition to exist to drive down prices.\u00a0 This leaves the pricing at the discretion of the company. Water bills have risen by 74%, with leakage rates up 30%. British water companies intend to increase charges by 40% by 2020.\u00a0 It is the first and only duty of companies to maximise profit.\u00a0 As\u00a0 Milton Friedman<\/a>, said \u2018 A corporation is the property of its stockholders.\u2019 Their sole interest is profit.<\/p>\n

Another benefit of privatisation we are told is efficiency. Yet, ‘Professor Chris Binnie,<\/a> is now questioning whether the \u00a34.2bn cost is value for money. He told the Guardian that \u2018it is almost certainly a stupendous waste of money for very limited benefit\u2019.<\/p>\n

Although the Conservative Government now decries public ownership as unprofitable and inefficient when they began privatisation in the 1970\u2019s it was with the sale of profitable public owned companies[1. British Aerospace and Cable & Wireless]. The promised shareholder democracy has never emerged as the companies hold more shares than individuals. It is therefore not possible to regulate these companies. It is not possible to control something that is not publicly owned.<\/p>\n

The Bolivian water scandal focuses the mind on the real cost of privatisation. \u00a0Private companies can own the basic needs of human beings, everywhere. This is a transfer of public wealth (asset and income) to the corporate few and most alarmingly a transfer of the balance of power. \u00a0In reality privatisation is about who controls society. By acquiring natural monopolies, the company dictates the market, the workforce, and the price.\u00a0 There is no accountability. \u00a0They take money from the Treasury, but none or very little comes back, that dictates our welfare system.<\/p>\n

The cheap, competitive service funded by private investment has not materialised. \u00a0Instead there is a perverse level of public subsidies and the exorbitant pricing. We must return natural monopolies to public ownership.\u00a0 This way governments are accountable to the people for essential services. In private hands, boards of directors are only accountable to shareholders.<\/p>\n

<\/span><\/div>","protected":false},"excerpt":{"rendered":"

Consecutive right-wing British Governments have promoted a privatisation agenda. It is argued that public ownership is incapable of operating a cheap, cost effective, efficient, economical, customer service.\u00a0 Whilst privatisation, meets all that criteria with two added bonuses. Firstly,\u00a0 private investment, which relieves the public purse, and secondly accountability through democratic shareholding, also known as \u2018Popular […]<\/p>\n

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