beeswax wrote:It doesn't do to be dogmatic re private sector vs public sector..
Both have their place in a free society and should do..
Carillion was a private company and the taxpayers are having to bail it out..
Ditto the Banks!
It's just my opinion but water, gas and electricity should all be in the public ownership notwithstanding security issues when most seem to be foreign owned but a matter of basic decency and humanity because these are essential for life and pensioners and people over say 80 years of age should not be held to ransom by private companies when many of these are not computer literate and tend to stay with the same company who will fleece them no problem. I know that I tend to look around for the best deal but then forgot to do that when my 2 year tariff ended and only noticed when looking at my bank account online DD and the buggers had doubled the tariff price and so what chance most elderly people?
Labour have exactly the right policy by wanting to put these back into the public sector. I would also put the railways back into the public sector as we are ending that way now when the private companies take the profits and leave us with the losses once again. They are still very much heavily subsidised even then, despite us having the highest fares in the world...so that has not worked at all...If you are not convinced, check the subsidies before and after privatisation and rail fares. But I have a vested interest by working for them all my life and it annoys me when we read some people's account based just on a few journeys back then...and then try and argue it was all cr8p...
Sorry, I profoundly disagree with most of what you have written. The private sector is the profit making part of the economy, the part which pays for the food on your plate, and all the other necessities and goodies.
Carillion was a private sector disaster because it was badly managed by accountants rather than engineers who would have understood what they were bidding on, and what risks were involved, so it was fundamentally not a profitable company. However, it managed to convince the public and Govt that it was profitable for several years. It had grown much bigger through acquisitions, but none of its business produced a good enough positive cash flow (http://www.telegraph.co.uk/business/201 ... tors-know/
But, and this is important, these problems would just have likely to have occurred if Carillion had been a public sector contractor. The public would never have heard about the problems. Just an extra public subsidy, an un-noticed rise in tax, like the subsidy of £700M which has kept TfL in London going, singing the praises of Sadiq Khan. Look at Network Rail. Hardly an example of a business in control of costs, and apparently hopelessly unable to competently build its business, with curtailed electrification projects in several lines.
Fundamental to the efficient working of the private sector is competition, but if we are all forced to pay the same tariff to energy companies, where is the competition? We will all just have to pay the higher standard rate.