Action urged on 'growing tide of outsourcing scandals'

By agency reporter
March 13, 2014

The Public Accounts Committee report 'Contracting out Public Services to the Private Sector' has been welcomed by accountability campaigners.

Trades Union Congress (TUC) General Secretary Frances O’Grady commented: “It is time to end the default assumption that anything done by the public sector is better done by private contractors. The truth is that there has been a growing tide of scandals, fraud and service failure.

"Some of this is down to government incompetence in contracting out, but much is an inevitable result of replacing the public sector ethos with the profit motive and cost-cutting.

“This is made worse by allowing private sector contractors to hide behind commercial secrecy every time anyone tries to hold them to account. It is in stark contrast to the welcome transparency provided by freedom of information, transparent governance and parliamentary oversight for the public sector.

“We strongly back the Committee’s call for more openness about private sector contractors, but the real remedy will only come when governments understand that it is just plain wrong to assume that the private sector always knows best.”

Fair Pay Fortnight will take place from Monday 24 March to Sunday 6 April 2014. It will be a series of events across England and Wales to raise awareness about falling living standards.

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