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.
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