Strictly speaking I suppose I've been straying a bit more than usual from my probation remit, but I don't feel like apologising. The government have signalled their intention of speeding up the privatisation of core probation tasks and it annoys me greatly.
In view of this, I think it's only fair to examine what the track record looks like where the private sector have already taken over. Are there really cost savings and greater efficiencies to be had, or is it just plain political ideology and dogma, coupled of course with opportunities for some people to get rich?
Somehow I feel in need of a bit of a roundup, just to serve as a reminder. From memory and my own sphere, there was the Mitie fiasco over their contract to supply maintenance and cleaning services to the probation estate. Then there was the well publicised case of the poorly-performing national contract for translation services to HM Courts and Tribunal Service.
The contracts for prisoner escort haven't exactly run entirely smoothly and there is scant evidence of private contractors being able to run prisons either more cheaply or better than HM Prison Service. On top of all this, there has been recent widespread criticism of the cosy cartel of two electronic tagging contractors G4S and Serco as their contracts come up for renewal. I'm sure there must be other examples, but I did say this was from memory.
Looking at other areas, I'm reminded of the recent knowledge that surfaced from a Freedom of Information request I believe about the Train Operating Companies. Apparently they are on to a nice little earner whereby they pocket tens of millions of pounds from state-owned Network Rail, paid out in respect of train delays, but the vast majority of which is not passed on to passengers.
On the same theme, it's emerged from a BBC Radio 5 live investigation that motorists are beginning to get bills from private contractors in respect of alleged damage to motorways. Sometimes amounting to many thousands of pounds, it seems that when challenged for evidence, these bills either miraculously disappear, or are drastically reduced. According to the programme, the reason this is happening is as a result of a much 'leaner' contract process.
What beats me is, why did anyone think you can get more for less under privatisation without it having an effect somewhere?
Jim, Take a look at the Systems Thinking model for improving public services. It doesn't involve outsourcing (although to be fair it doesn't explicitly exclude it either, just demonstrates how it is generally more costly and more inefficient than in-house solutions), and is barely whispered about at the top of most public sector organisations, but lots of people at the coalface are enthusiastic about its potential. Look up John Seddon or read some of Simon Caulkin's journalism.
ReplyDeleteThanks for that - more research for me to follow up when I can get around to it.
DeleteCheers,
Jim
But the model never curries favour with successive governments who have a fixation of reducing public sector headcount - not costs. All they are interested in is how many people do we pay directly - no matter if the overall cost is higher because of outsourcing, the trumpet will be that the public sector is leaner
ReplyDeleteSeen this article in latest edition of Inside Times Jim?
ReplyDeletehttp://www.insidetime.org/articleview.asp?a=1310&c=private_prison_not_working
Straight from the horse's mouth, as it were....
Jimmy Gilligan - thanks for that link - very interesting indeed and as you say, straight from the horse's mouth in true 'Trip Advisor' style! The trouble is I suspect many ordinary members of the public would say 'yes and the problem is?' I guess it'll take things to go seriously wrong before the public show any interest.
DeleteCheers,
Jim
Jim, unfortunately, like most older Probation Officers, I suspect your memory may be doing you a disservice! ;o) You seem to have forgotten about Steria - surely a glowing example of the private sector efficiency and effectiveness ...hmm......the thing that annoys me the most is that given the history of privatisation, how does anyone with a modicum of intelligence actually believe it leads to better results for anybody...other than a Tory relative...for my own sanity, I think I'm going to have to stop applying rationality to the argument.... ;o( p.s Grayling's a d*ck....apologies, just wanted to say that out loud.
ReplyDeletebtw, he's not a duck...
DeleteSteria - Yes quite correct I did forget them, but then I suppose we just take for granted that every government IT contract is utterly hopeless and vastly expensive.
DeleteI think that the NAO suggested that private prisons are about 13 – 17% cheaper – but it’s quite hard to be confident about comparing like for like. Given the high staff turnover, lower wages and younger profile in the private sector it would be surprising if they were not cheaper.
ReplyDeleteI think I read that Serco will be running unpaid work in London for 35% less
I think that in providing services things go wrong. This doesn’t have much to do with whether they are private or public. Sometimes stuff happens.
I think that probation had a target to out-source to private and VCS first 5% and later 10%. They averaged just over 3%. The surprise is that it has taken this long since the Carter report for privatisation of probation to start to bite.
Government tends to get screwed on private sector ICT contracts. So do the private sector. Get better commissioners / contract negotiators – probably get them from the private sector so they have proper commercial experience.
It’s a hard rain that’s gonna fall ……