Govt. Doomed to Repeat Past Privatisation Debacles
2 Oct 2007
By persisting with the privatisation of Irish health care though 'co-location', the government is ignoring the clear lessons of the past "and ensuring that Ireland will son be witnessing another privatisation debacle," the Irish Congress of Trade Unions has warned.
Addressing the SIPTU National Conference in Tralee today (Oct 2), Congress Economic Advisor Paul Sweeney warned that the co-location argument is state subsidised privatisation through tax incentives to investors.
"Firstly, as with past privatisations, there is no great clamour or demand for this - who campaigned for the privatisation of Eircom? Secondly, despite all efforts, the proponents have failed to produce a sound business case with compelling social and financial reasons for the 'co-location' plan. The same happened with Aer Lingus, where no business case was produced. Many state companies have been privatised at a fraction of their true value. For example, the battle between private equity firms for Irish Ferries, a former state company, is really about the valuable land assets. Greencore, formerly Irish Sugar, had huge under-valued land assets, and got tens of millions in EU sugar subsidies. Two state banks ACC and ICC were sold at a fraction of their true value. So too, it will be found in later years that the leases on hospital lands will have been given at a fraction of their real value.
"In both instances, the results for the Irish economy and society have proven disastrous, with loss of control of key strategic assets and a diminution in the service provided. We can expect the health services to suffer similarly."
Mr Sweeney addressed delegates on the Irish experiences of privatisation to date and the necessity to build up world class public services which would, in themselves, help defeat the threat of privatisation.
The trade union movement, Mr Sweeney pointed out, recognised that reform was a necessity in the public service and would wholeheartedly support such a process where it was designed to enhance the breadth and quality of services available to all citizens.
"Many countries in Europe enjoy the sort of public services we aspire to - in terms of transport, education, care and health. They are attainable, it is simply a matter of political will," Mr Sweeney concluded.
For further information contact Mr. Paul Sweeney on 086 2052572
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Further Information: Macdara Doyle, Communications Officer
Phone: 01 889 7799 or 087 9174171 Email: macdara.doyle@ictu.ie