IRELAND: There’s
been a steady procession of attacks on the public sector over the last
couple of years. Wage cuts, levies and a deluge of propaganda. We’ve
made the point elsewhere that the FF and the Greens are in a cul de
sac, they are most likely going to be slaughtered in the next general
election. So by all accounts they have nothing to lose. They have
launched a one sided civil war against the working class at the behest
of the bourgeois, the home grown variety of course, but also the multi
nationals based in London and New York.
The latest twist in this sorry tale is the prospect of a huge privatisation sell off. As the Irish Times reported on July 23rd:
“Airports,
ports, RTÉ and the ESB are included in a list of State companies that a
Government-appointed group will consider selling in an effort to cut
the €84 billion national debt.
Minister
for Finance Brian Lenihan announced yesterday he has appointed
economist Colm McCarthy, who led the body that recommended €5 billion
in public service cuts last year, to chair the new Review Group on
State Assets.
It is charged with looking at the possibility of disposing of public-sector assets, including commercial State companies.
The
Labour Party said any move to offload valuable state assets to plug a
hole in the public finances would be a retrograde step.
According
to a preliminary list published yesterday by the Department of Finance,
the organisations it will cover include all major State companies, such
as ESB, Bord Gáis, RTÉ, Iarnród Éireann, Dublin, Cork and Shannon
airports, (all owned by Dublin Airport Authority) 10 port companies and
Bord na Móna.
The
national debt stands at €83.98 billion, but the sale of these companies
could generate a lucrative return. For example, the ESB’s assets, its
power plants, networks and energy business, are valued at €7 billion.
Bord Gáis has assets worth €3.5 billion.”
This
proposal is a well worn path, the example of Thatcher’s Britain in the
1980’s stands out as an example of wholesale looting of state assets,
but its been repeated throughout the world and in Britain under New
Labour. Under the present economic conditions it’s likely that there
will be further waves of privatisation on an international scale,
unless there is a strong response from the working class.
But
what’s in it for the capitalists? It’s fairly clear why the government
are planning to sell off so much, on one level it’s merely an
accountancy measure. They can use privatisation to raise money from
share sales, but on the other hand there’s also a political benefit to
them. Privatise services and break up the power of the public sector
unions.
The
“Big Lie” associated with privatisation is that private companies are
more efficient. But what does that mean in practice. In labour
intensive industries like social care, health and local government
services these so called efficiencies can only be created by cutting
wages and intensifying work loads. In other words they make a profit by
charging €12 an hour for a cleaner and pay them €8. This just creates
low paid jobs and pressurises wage levels on a downward spiral caused
by so called “competition”.
The
argument that private investment improves services merely reflects the
fact that state industries have been underfunded and new investment
hasn’t been forthcoming. The rail service in Britain is now snarled up
by the pointless division of the national network between competing
companies, while gas supply companies plague the life out of people as
they try and increase their market share.
The Irish Times continues: “Labour
spokeswoman on natural resources Liz McManus said state companies
showing potential should become leaders in delivering renewable energy
and that selling them off could put "all that potential" at risk.
"One
only has to look at the disastrous sell-off of Eircom and the many
changes of ownership which followed, which has resulted in capitalist
vandalism destroying Ireland’s prospects of becoming a world leader in
broadband and next-generation network," she said.”
There
is no surprise that Colm McCarthy has been chosen for this latest
mission in capitalist vandalism. After all after An Bord Snip he is no
doubt seen as a safe pair of hands who will deliver the goods.
Potentially this privatisation agenda has far more far reaching effects
even than that.
The
Croke Park Deal was supposed to prevent wage cuts in the public sector.
We explained at the time that there is more than one way to cut wages.
Privatisation is a key plank in reducing public sector pay. As such it
has to be resisted. Thatcher’s privatisation policy was accompanied by
an ideological campaign in favour of so called popular capitalism.
Share prices were set artificially low and then the big players moved
in and offered a higher price. Popular capitalism was a big con, the
big capitalists cleaned up.
While
its unlikely that the FF and Greens would be as sophisticated as that,
there will inevitably be a softening up process and the trade unions
will have to actively campaign against the proposals. The coalition is
in a tight spot. They have already postponed a number of by elections
and they have a very small majority. A campaign of opposition
explaining the political issues behind privatisation would gain mass
support. It is no coincidence that this proposal comes on the back of
the Croke Park Deal.
The
trade union leadership was desperate to secure a deal with the
government and they just about squeaked it through. Tens, even hundreds
of thousands of workers saw through the Croke Park Deal. Under the
present circumstances there is no guarantee that Cowen and Lenihan will
get away with a huge privatisation programme. But to beat them we need
to fight for a trade union leadership worthy of the name.
