What ‘they’ say privatisation of public services is:
Subjection of inefficient public management to efficient private practices, saves tax payers money and provides essential investment.
Tax payers have invested £billions into public services over decades, that investment has built the service up to the point it is at when privatised. Those ‘buying’ into the public service are inheriting the £billions of tax payer investment without paying for it. So, say, a service that has cost tax payers £100million to build over ten years is ‘sold’ or contracted out to a private firm for £20million, which is the evaluation of the bricks and mortar company but not a reflection of the true value of the company. The true value of the company incorporates the cost of investment to bring a new company, from scratch, to the point of the public service. The buyer or contractor can then flip the company on for a sum that is close to the true value of the company, as Bain Capital did or simply siphon off profits from public service expenditure for the duration of the contract.
Privatisation of public services does not inject capital into public services, it strips capital investment out of the service and, as with PFIs, strips capital from public service spending, reducing the capacity to provide services. In the NHS, private ‘investment’ is killing the service.
Areas of public investment that have been wholly turned over to privateers include electricity, gas, water, telecommunications, postal services, and transport. Consumers (tax payers) are underserved by these handovers and it has cost the British tax payer £Trillions. Bringing public services back into public control is often argued against because of mythical high costs of ‘re-nationalising’ the services. For services like transport, which are franchise based, there is no ‘buy back’ cost, as governments can wait for franchises to expire and then refold them back into public ownership. But taxation is a straight forward method of taking back public services into public ownership. There is no requirement for tax payers to buy back the services that they built. The objections to resuming public ownership of public services is simply based on attempts to protect current profiteering.