The Politics of Privatisation: Contracting Out Public by K. Ascher

By K. Ascher

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Additional resources for The Politics of Privatisation: Contracting Out Public Services

Sample text

Prolonged action by refuse collectors and street cleaners brought home to many authorities the power that manual workers wielded over delivery of key services. Some councils were forced to employ private contractors during the strike to clear away the growing mountains of household and commercial refuse. Together with a growing realisation of the inflexibility of internal service provision, this experience led to widespread interest in both contracting out and competitive tendering. The first to express more than academic interest in contracting out was Conservative-controlled Southend District Council.

The months following circulation of this letter saw increased lobbying activity on the part of contractors. Major service firms and their trade associations made use of the health service press to increase visibility among authorities and continued to push the DHSS for a formal commitment to contracting out in at least part of the NHS. The contractors' campaign was considerably strengthened by the publication of Reservicing Health by the Adam Smith Institute in 1982. Written by Michael Forsyth, then a Conservative member of Westminster City Council, the pamphlet argued strongly in favour of using private contractors to provide 'hotel services' to the NHS.

The outcome of these and other minor changes was Circular HC (83) 18, Competitive Tendering in The Provision of Domestic. 9 Districts were asked to test the cost effectiveness of cleaning, laundry and catering services by going out to tender for each of them within the next three years. Acceptance of the lowest tender was required, unless authorities were not satisfied as to the ability of the contractor to honour the terms of the contract. The circular was clear about the speed with which the process should be undertaken.

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