Privatisation push will hurt us

IVAN Yates is off again on his “privatise everything” hobby horse and he is free to do so (Opinion, Sept 15). However, it is disingenuous to keep repeating that privatisation benefits consumers.

The truth is that there is ample evidence now to show that following privatisation, unit cost for the consumer rises and standards very often fall. All we have to do is look east to England and see what happened under Margaret Thatcher’s great privatisation push. Once upon a time, British Rail provided a wide ranging service at reasonable cost and with admirable efficiency. Today the traveller to England is well advised to steer clear of railways such is the cost and inefficiencies that now abound. Water is another example that gives a longer period for study. Some basic facts are illuminating.

Prices soared 245% in 17 years despite operating costs remaining steady. During that period there is no evidence to show any improvements in performance, productivity or efficiency. While all this was going on, the profit margins of the private companies increased six fold.

More alarming was the impact on accessibility for citizens. In the first year of privatisation disconnections tripled and such was the problems that grew in subsequent years, a law had to be introduced to ban disconnections. Following this the private companies dramatically increased the use of pre-pay meters, a solution that Pat Rabbitte seems to endorse if recent comments to a Dáil committee are anything to go on, and such was the amount of “self-disconnection” that occurred the use of these meters had also to be banned. It is very interesting that there have been continued moves by the corporate interests to change the business model that applies to water services, all of which are clearly attempts by companies to exit the business now that profiteering checks are in place.

Maintaining such services under state control is the only way to ensure that each citizen has access to them. Once the profit motive is introduced, the well-being of the citizen is relegated to second place. Be very careful what you wish for, Mr Yates, and remember, there are many in our community who simply could not afford to access vital services once they are privatised.

Jim O’Sullivan

Rathedmond

Sligo