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How did they get away with privatising public services?

134 replies

Newname85 · 21/01/2025 07:47

Whoever thought it was a good idea to privatise rail services, airports etc - how exactly did they get away with it?

How did anyone believe that adding profits on the top will somehow result in better service/ ROI?

I returned yesterday from a short trip to visit family. At the airport, you are asked to throw water away for security check. But, you are forced to buy it at £3.50 for a small bottle. How is this fair?
Restaurants serve ridiculously expensive food, but no obligation to serve water. wtf ??

The other day, I saw an advertisement from SouthEastern. Why exactly do they need to advertise!??? SE trains are the only option I have !!

OP posts:
MereDintofPandiculation · 21/01/2025 17:25

One person refused to help a colleague when asked for help with a run of the mill problem stating that ‘it wasn’t in their job description’. That happens in the private sector too. My son repeated a staff member refusing to do a job she was asked to because "she didn't like it". That was private sector too.

Redundancies aren’t nice, but their threat certainly help instil a work ethic and they should be used more often in bloated government departments. How often would you like them? They're happening quite regularly in the public sector now. Each one causes enormous upheaval.

There's also the detail that you can't use redundancies to cherry pick who you get rid of. It's the job that's redundant, not the person. You can't get rid of one person, and then appoint someone else to do their job (better). Or you can, but you risk an Employment Tribunal. The way to get rid of underperformers is through the disciplinary process.

MereDintofPandiculation · 21/01/2025 17:19

Seymour5 · 21/01/2025 08:32

There was far less demand for social housing in past times, partly because the population was smaller, partly because there were fewer single person and single parent households. However, Scotland and Wales withdrew the Right to Buy some time ago, surely it’s time England followed their example.

Social housing was for anyone who needed a home, not for the disadvantaged. So council estates were a mixture of tenants -I knew an accountant who stayed in the Council house he'd moved into with his wife when they were first married. Conservative ideology was to allow people to own their own homes, so there were a lot of people sitting in council houses who were perfectly able to get a mortgage and buy their house, especially at the large discounts offered.

So there wasn't less demand, just a wider base but also a lot more council houses.

The Council home sell off would have been fine if there had been a requirement to replace each house sold. Of course that wasn't financially viable since the houses were sold off at a huge discount. So we are where we are - not enough Council houses, too many people on the waiting list.

GutsyShark · 21/01/2025 17:18

An older relative worked in power stations in the 1970s and said Thatcher was a necessary evil - most of the time they were unable to work because the miners were on strike again and there was no coal. The unions had brought the country to its knees and it urgently needed sorting out.

I’m too young to remember a Thatcher government but it would appear that was how, voters felt drastic change was needed and that’s what she offered.

Embroideryemma · 21/01/2025 17:17

I have mainly worked in the private sector in industries where redundancies are fairly common but have also had a role in the public sector. Some of the public sector departments I had to work with were shockingly lazy. One person refused to help a colleague when asked for help with a run of the mill problem stating that ‘it wasn’t in their job description’. I was so shocked. I’d never heard such a refusal to help another colleague before. There didn’t seem to be any motivation to work towards a shared goal whatsoever. Someone explained that that department was heavily unionised so nothing could be done.

Regular redundancies in my (private sector) employment would have had these lazy incompetents weeded out rapidly. Redundancies aren’t nice, but their threat certainly help instil a work ethic and they should be used more often in bloated government departments.

NigelHarmansNewWife · 21/01/2025 17:07

SharpLily · 21/01/2025 15:06

Those hanging all of this on Thatcher might want to be aware that privatisation of public services is not a British/Thatcher thing. The same thing was happening on an international level at that time, not something Thatcher came up with to punish the little people even more. As the world was discovering after the disastrous previous decades, for some reason public owned services don't seem to work very well.

I certainly never said that and "punishing the little people more"??!. The fact is that in the UK it was the Tory government that decided to sell off public services. People who can afford to pay more tax should do imho. But what happens is that the argument then gets hijacked by people who object to supporting "benefits scroungers" and "illegal immigrants" and some people with plenty of money don't see the benefit to society of contributing more.

All that selling off public services did was push the problems around the way they were managed and operated onto someone else.

bigvig · 21/01/2025 17:01

Plus they have almost finished privatising schools through the academies programme. Have standards gone up? Exam boards are also privatised hence exams cost 50-100 pounds to enter and yet they pay examiners about £5 to mark them - hence experienced teachers can't be bothered. Wake up and end this. In answer to your question OP. Thatcher is why we're in this mess. Plus a weak sniffling pathetic Labour Party that failed to argue against this and instead embraced privatisation.

Havanananana · 21/01/2025 16:59

user243245346 · 21/01/2025 16:30

All of the actual evidence though shows that the private sector runs services better - more efficiently and cost effective- especially when well regulated. In every single country in the world that is the case.

Nonsense. In much of Europe most of the vital services such as utilities and transport are run by the public sector. They are run for the benefit of the stakeholders - i.e. the users and general public - rather than for the benefit of shareholders.

@SharpLily "Those hanging all of this on Thatcher might want to be aware that privatisation of public services is not a British/Thatcher thing. The same thing was happening on an international level at that time, not something Thatcher came up with to punish the little people even more. As the world was discovering after the disastrous previous decades, for some reason public owned services don't seem to work very well."

Except you provide no evidence for this. Throughout Europe, publicly-owned services run very well, and can be managed in order to support wider initiatives. For example, where I live (in Europe) transport is integrated - trains and buses dovetail and there is a common ticketing and pricing structure because they are both publicly run. Public transport is promoted using "Car-Free days" when all public transport is free for a day. The existance of a reliable, hourly bus service means that the rural village where I live remains viable as somewhere to live for families and older people - which in turn takes pressure off the housing stock and services in the nearest large town, means that businesses can remain based in the village (and actually attract staff and customers from the town) and keeps the place vibrant. A private company looks solely at profits while a publicly-owned entity can be part of a wider integrated plan.

TherebytheGraceofGodgoI · 21/01/2025 16:56

I just want to point out that Transport for Wales is run by the Welsh Government. It is dire!
Cardiff airport was bought by the Welsh Government years ago for a shocking amount and every year since, they give it millions of pounds as it runs at a massive loss. It is obscene the amount of money they have thrown at it.
Also our water is supplied by Dwr Cymru, a non shareholding company whose mantra is ‘Not for profit’ and yet we have one of the highest water bills in the UK.

SodOffbacktoaibu · 21/01/2025 16:54

It's called Neolibralism and there's a great book about it by George Monbiot called The Invisible Doctrine.

user243245346 · 21/01/2025 16:54

"Absolute rot. Does this include the utterly privatised healthcare that was the only option available before the NHS, back in Victorian times? The rich elite hobby doctors who would happily tell miners that their breathing issues were due to drinking stewed tea?."

NHS doctors used to tell people to smoke for their asthma, etc. Luckily we have better medical knowledge now.

Like it or not, the private sector is just much more efficient at providing goods and services. Not to say that everything should be privatised but generally that's how you produce the most value for money.

Feelingathomenow · 21/01/2025 16:52

Ask Sid

user243245346 · 21/01/2025 16:50

And council housing does not provide net income to councils. Its purpose is to house people not provide income.

user243245346 · 21/01/2025 16:48

Havanananana · 21/01/2025 12:28

@user243245346 "Housing built by councils and housing associations are at least double the cost of those built by the private sector. I agree that we need more social housing but it's unavoidable that the waste and mismanagement in the public sector needs to be addressed."

Please share with us the source of this cost comparison.

The private sector builds cheaply in order to maximise short-term profits. Council housing used to be built to last as the houses were intended to provide affordable housing for the tenants and a long-term, low-maintenence income stream for the councils.

The council houses from the 1950s and 1960s were often of far better quality than many of the current, developer-built new builds that I've seen.

That's not true. The public sector is poorly managed and many of its properties have been demolished or degenerated into slums. The cost comparison is like for like anyway.

Many studies have shown the differential in build costs. www.building.co.uk/social-housing-costs-a-quarter-more-than-private-built-homes/3053916.article

Building companies will build what people want so they can sell. Councils and housing associations often build impractical homes in inconvenient locations because those making the decisions do not face the same accountability.

Of course some council homes are well built but but so are private properties. Many council properties are extremely poorly built and badly maintained. I grew up in a council estate and they knocked a lot of it down because no one wanted to live there.

WaryCrow · 21/01/2025 16:40

user243245346 · 21/01/2025 16:30

All of the actual evidence though shows that the private sector runs services better - more efficiently and cost effective- especially when well regulated. In every single country in the world that is the case.

Absolute rot. Does this include the utterly privatised healthcare that was the only option available before the NHS, back in Victorian times? The rich elite hobby doctors who would happily tell miners that their breathing issues were due to drinking stewed tea? Even Thatcher, especially Thatcher, knew of the dangers of specialised knowledge and professional monopolies.

We are seeing the results in our sewage-filled rivers and Ofgem’s current plans (forced by the last Tory government) to make domestic consumers pay for the energy use of private business too.

There isn’t much evidence to come up with about benefits of regulation in the U.K. because we don’t have it here and only got half way there with the birth of the public sector. It did not have long enough to effect real change, enough to undo the issues of an imperial country making the most out of disadvantaged working class lives for hundreds of years.

BrittlePeanut · 21/01/2025 16:39

They got away with it because enough people voted for it. It really is a simple as that.

BrittlePeanut · 21/01/2025 16:39

They got away with it because enough people voted for it. It really is a simple as that.

Sinkintotheswamp · 21/01/2025 16:33

Yanbu. I can't even get an abandoned trolley picked up or streetlight fixed without dealing with a useless external company. Trolleywise and Enervo are both shite.

The council or supermarket should be dealing with it.

user243245346 · 21/01/2025 16:30

GertrudePerkinsPaperyThing · 21/01/2025 14:53

The media has long been convincing people that private = good, public = wasteful and inefficient. When often the opposite is true.

All of the actual evidence though shows that the private sector runs services better - more efficiently and cost effective- especially when well regulated. In every single country in the world that is the case.

ColinOfficeTrolley · 21/01/2025 15:33

Tipperttruck · 21/01/2025 08:02

Have a read or what has happened to the probation service if you really want a depressing morning.

Dh had to leave a few years ago. it was such a shit show and he did not want a death on his hands. He could see the way it was going

BMW6 · 21/01/2025 15:32

I remember British Rail and BT were particularly shite before privatisation.

I remember waiting over 6 months for a phone line to be installed. Trains cancelled, late, dirty and totally in thrall to the Union.

Public companies were run to benefit the staff, not to provide customer service, who could just fuck off as far as the staff were concerned.

They were truly appalling.

Papyrophile · 21/01/2025 15:30

Not really - the public sector savings were used to keep taxes low, which only benefits those paying high levels of tax.

Ahem! You are forgetting that basic rate income tax in the 1970s was over 30%.

pencilcaseandcabbage · 21/01/2025 15:21

I remember well all the power cuts of the 1970s (occasionally these were several times a week and could last for hours - we always needed to have candles handy). I also travelled on trains a lot from the mid 80s to the early 90s, and spent many hours just sitting around in train stations waiting for trains that were cancelled or extremely late. I learned I had to allow most of a day to get somewhere that was only 1h 20mins away by car. I missed a uni exam because I'd only allowed 6.5 hours to do a 2h45 min journey when I really should have known better. But both rail and energy services were utterly dreadful at the time and in my experience things definitely improved after privatisation. Of course private services aren't perfect and I've had a few rubbish journeys amonst my mostly good ones recently, but it's still way better than what I remember of the 80s. I now only use trains a few times a year but I'm still very wary of the government being in charge of rail or energy again, because it really was that bad before.

Overthebow · 21/01/2025 15:10

You know you can refill empty water bottles at every airport? No ones forcing you to buy a £3.50 bottle of water. I didn’t think anyone actually bought those.

SharpLily · 21/01/2025 15:06

Those hanging all of this on Thatcher might want to be aware that privatisation of public services is not a British/Thatcher thing. The same thing was happening on an international level at that time, not something Thatcher came up with to punish the little people even more. As the world was discovering after the disastrous previous decades, for some reason public owned services don't seem to work very well.

GertrudePerkinsPaperyThing · 21/01/2025 14:54

NigelHarmansNewWife · 21/01/2025 13:48

The fact of the matter as I see it is that public services cannot be adequately invested in, maintained and developed and make money. They were viewed as a drain on the public purse rather than necessary for society to operate. The clue's in the name, services. The Tory government of Maggie Thatcher decided they should be someone else's problem because it went against their ideology to get the public to pay more for them via taxes. They were then sold under value otherwise no business would have touched them.

Yes you are right.