WA Labor spends millions to ‘prove’ privatisation doesn’t work

WHEN even the ABC acknowledges a “big price tag” and a deal that “will come at a significant cost,” you know we’re talking seriously large sums. The McGowan government will spend $93,000,000 to roll back the Barnett government’s privatisation of non-clinical services at Fiona Stanley Hospital.


The changes to the multi-billion-dollar deal with private provider Serco will see cleaning, catering, orderly and domestic assistant services brought back into the public sector over an 18-month transition…

The revised FSH deal will come at a significant cost, with a one-off transition bill of $12.9 million and ongoing costs of $8 million per year over the next decade.

But Health Minister Roger Cook said the Government was meeting its pre-election commitment to bring privatised services back into public hands where possible.

“We have been able to do this in an affordable way and one that ensures there will be a safe and smooth transition,” he said …

Mr Cook said the deal would benefit patients as well as staff …

United Workers Union secretary Carolyn Smith said the deal was evidence privatisation did not work.

 
The Serco business case may or may not have been sound when it was made – an inquiry chaired by former WA under-treasurer John Langoulant raised questions about its solidity – but that is immaterial anyway. What this reckless, extravagant decision really constitutes is a $100 million rescue package for the United Workers Union which will repay the Labor Party electorally, organisationally and financially. The word for this is corruption. The picture accompanying the report tells the story.

This entry was posted in State Politics, Wasteful Spending. Bookmark the permalink.

19 Responses to WA Labor spends millions to ‘prove’ privatisation doesn’t work

  1. Infidel Tiger

    Who are they going to blame for poor service now?

  2. EvilElvis

    McGowan has an Andrews moment.

    Luckily the Liberal opposition leader has loudly declared that public servants are doing it tough and deserve a payrise.

    Fuck. Me. Drunk.

  3. Zulu Kilo Two Alpha

    Luckily the Liberal opposition leader has loudly declared that public servants are doing it tough and deserve a payrise.

    Who is leading the Liberal goat rodeo this week, anyway?

  4. Zulu Kilo Two Alpha

    The union movement – the knuckledraggers of the MUA – has already reminded Mark McGowan that ” we put you there, now we are calling in the debt. You owe us.” This is just another installment.

  5. TBH

    This is completely unsurprising. The only surprise is that it’s taken McGowan this long to re-nationalise (in the State of WA sense) these services. As Z2KA says, he owes the unions big time and now the debt is coming due.

  6. EvilElvis

    Who is leading the Liberal goat rodeo this week, anyway?

    Liz Harvey I think.

  7. Zulu Kilo Two Alpha

    Liz Harvey I think.

    Sorry, who’s she?

  8. EvilElvis

    Sorry, who’s she?

    Liza Harvey, dropped the ‘A’…

    Member for Scarborough.

    I distinctly remember her first statement after toppling the seppo was that the middle class are suffering hence public servants deserve a payrise. Complete fucking idiot.

  9. nfw

    Privatisation doesn’t work for union bosses on their shiny backsides. Of course it works and delivers huge savings to taxpayers. Then again, lefties don’t care about taxpayers, just themselves.

  10. Tom

    Never forget that the reason the Labor Party was formed was to provide political muscle for unions. That’s the only thing you’re guaranteed — not warm and cuddly progressivism — when you vote for them: diversion of taxpayer dollars to fill the coffers of union thugs like those at the United Workers Union in WA. In other words, blatant corruption.

  11. Tony Tea

    You just know 93 million is a wild underestimate.

    Infidel is right. Private operators are convenient scapegoats.

  12. H B Bear

    Sneakers McGowan had been doing a pretty good job fixing the disaster left by Barnett until now.

    This just shows who is actually running the show – United Voice as expected.

  13. Mother Lode

    So we will again get to see the where the cost of the service goes up, a labor politician has a sudden ‘windfall’, and the conditions of the employees are traded away.

    You know there are still people out there who believe that the private sector provides low service because they are busying harvesting profits, but that the government will provide a comprehensive service, and yet they will not be able to tell you a time when they have personally been well served by the public service.

  14. thefrollickingmole

    Sneakers McGowan had been doing a pretty good job fixing the disaster left by Barnett until now.

    Far from it for me to praise Barnett (who got dumb/lazy in the end) but Sneakers “fixing” was courteously of the Federal LIBERAL government finally caving in and reallocating WAs shit share of GST AFTER Barnett lost government.

    So Sneakers has been able to claim wonderful budget repairs off the back of it.

    Another classic “punish your friends and reward your enemies” moment from the jellybacks.

  15. H B Bear

    thefrollingmole

    That may be so Barnett’s mis-management of the WA economy was shameful.

    It will take decades to work through.

  16. thefrollickingmole

    H B Bear

    Try to drive around Perth with a vintage sat nav.

    The sheer amount of roadworks & new suburb building was massive.
    On SFA of the tax generated by the state.

  17. H B Bear

    the sheer amount of roadworks & new suburb building was massive.

    How much of it was needed? All built at the top of a mining boom with record prices for labour and construction costs. $19bn in debt and a decade in the doldrums since.

  18. Infidel Tiger

    This all pales into insignificance compared to the white elephant railway line that is being built to service the airport.

    No one will use that. Absolutely no one.

  19. H B Bear

    IT- surely all the FIFO’s will catch the train to the airport before settling back in the QANTAS lounge?

    I think you are right – Brisbane airport line all over again but this time it is the taxpayer who will take it in the ass.

Comments are closed.