North
- Privatisation Feature No More Sell Offs - More Money for Worse Services By Terry McDonagh |
| * Privatisation means huge amounts of money wasted on consultants' fees. In the case of Lisburn library the fees that were charged were more than what it cost to build the new library. * Privatisation means higher prices for consumers. Take the case of the sale of Northern Ireland's power stations in the 1990s. At that time the new owners were given a purchase guarantee, basically that what they produced would be bought at a minimum guaranteed price. The market price of electricity then fell so a "competition transition" charge was brought in. Consumers today are still paying this surcharge which amounts to an extra £50 million per year in profit for the private companies, paid for out of all our pockets. * Privatisation often means companies suing the Government Departments for breach of contract on quite spurious grounds. Take the case of the Ministry of Defence who were sued by one company over a contract to build military bases. The company's case was that the ceasefires here meant that they were no longer being asked to supply mortar proof walls as originally agreed. They won £15 million in compensation. * Privatisation also leads to corners being cut and shoddy work. The £30 million Laganside courthouse in Belfast, which opened in January 2002, was a prestigious PFI project. Among the companies involved in the consortium which built it was Jarvis, of British Rail infamy, who are now bidding to take over schools and who have a finger in many privatisation pies. The consortium is paid £3.6 million a year for building and maintaining the premises. There have been problems with the provision of services in the new building and so far, in its short life, it has sprung 11 leaks, including one which was described in a National Audit Office report as "major". Car park profiteers The
scandal of the Royal Victoria car park is a very clear example of the
rip off that is privatisation. This was one of Northern Ireland's first
Private Finance Initiative (PFI) schemes and has resulted in the private
company concerned making a killing at the expense of the health service.
Campaigning to Stop Water Charges There
is no justification for the introduction of water charges. Despite earlier
denials, the Government has been forced to admit that we already pay for
our water through the regional rate. A new charge would mean that we would
have to pay for it . |