Principled policy on privatisation needed

PRIVATISATION is the economic term used to describe the dismantling of a social ideal aimed at providing a range of empowering services for all citizens.

It is the hollowing out of a political project aimed at replacing privilege with opportunity that, after World War I, changed European social hierarchies for ever and replaced something approaching serfdom with the possibility of social equity and justice.

Though it may not chime with the political or economic Zeitgeist State and semi-State, organisations in this country did far more than free-market economics to change this from a poor, insular and agrarian society to what it is today. They — the ESB, Irish Shipping, Aer Lingus, Teagasc, Bord na Mona, RTÉ, the IDA, An Post and many more — were conduits for social and commercial ambition that served this Republic well. They were sometimes less than efficient and often self-serving — a reflection of the society they served — but their raison d’être was social progress for everyone rather than profit for the usual and impenetrable golden circle.

The debate around privatisation has never been opened much less concluded and today’s manifestation of that void focusses on the possible sale of the Government’s remaining share in Aer Lingus. That Government statement after Government statement asserts there are far more than economic issues at stake is a legacy of the idealism and social objectives that led to the airline’s establishment in 1936. It may not make any difference in the long run though as any sale would inevitably free new owners to walk away from less profitable routes vital to some regions’ commercial life.

The privatisation dilemma featured during the Irish Water debacle before Christmas and, even at this remove, Taoiseach Enda Kenny’s refusal to allow a vote on incorporating a veto on the utilities’ privatisation into the Constitution seems wrong. It is a racing certainty that some party or other will make this vote an election promise so the Government, before it is too late, still has a chance to do the right thing. The same principal should be considered regarding the ESB.

The privatisation of Eircom was one of the greatest commercial and social failings in the history of the State. The company was asset stripped by one set of privateers after another and vast swathes of the country still only dream of a decent broadband service.

Our housing crisis, and new, challenging rules about mortgage borrowing, are rooted in a previous Government’s decision to entrust social housing obligations to a free market, utterly deaf to anything other than profit opportunities. Just yesterday details of 28 Dublin Bus and Bus Éireann routes that may be privatised were made available to prospective operators. A contributory factor to the chaos in our health service is the fact that we try to run a public and private models in parallel and sometimes with the same people.

The case for privatisation is not always as good as some might wish but sometimes the behaviour of those who work in State or semi-State organisations makes that argument easier. It is time though that we had a policy on the issue rather than, as we are, making it up as we go along.