The recent – and continuing - hikes in energy prices, just as the cold weather starts, have caused widespread anger. Party politicians have made noises that they hope will play well to that audience (simplifying tariffs, temporary price freezes), but neither the Westminster bubble nor the mainstream media is paying serious attention to the idea that in a decent society, these utilities should be in public ownership and control.
Sell-offs
When our gas and electricity supplies were sold off to private investors in the 80s and early 90s, we were told this would lead to consumer choice, and that competition would mean lower prices for all of us. That was never the real aim, but it has nonetheless failed to deliver that promise.
Instead, ownership is concentrated in the hands of a small economic elite, who profit at the expense of spiralling fuel poverty for many.
Infrastructure failures
We were told that private investment would mean the infrastructure could be upgraded and modernised. This, too, has failed to happen. The electricity grid vitally needs to update in line with the demands of the modern energy realities, but this is just not being delivered, as the big shareholders rake in the profits.
We have seen the same with our privatised water supply infrastructure; the antiquated pipes leak while our bills mount.
Efficient for whom?
During the privatisation mania of the 80s and early 90s, we were told that the publicly owned industries were inefficient, and were costing the tax-payer money. Wouldn’t we prefer that private investors took over the burden, to enable us to have lower individual tax bills?
The trouble is, that the “efficiency” that was delivered was not in our interests. The utility companies are efficient all right – efficient at making themselves a tidy profit, while old people make heartbreaking choices between eating and keeping warm.
In any case, the supposed inefficiency of these industries was due to successive governments damaging them by using them as economic tools, variously to bring down inflation, as tools of investment funds, and to cream off funds as a way of disguising taxation.
A decent society
In a decent society, the delivery of heat and water (the products of natural resources after all) should be designed for the benefit of all, especially the most vulnerable. The aim should be addressing social need, not private greed. But also the ownership and control of these utilities should be subject to better democratic control. The older centralised model that allowed governments to mismanage our resources and then blame the industry should be replaced with better models which focus on better local participation and control.
Rail
As I write, it is the 20th anniversary of the privatisation of British Rail. This, too, has seen the familiar story of escalating costs to the consumer, while private companies make a tidy living from public subsidy. Privatisation of the railways has not led to savings for the taxpayer, but actually to spiralling costs to the public purse. A recent study by Transport for Quality for Life found that “net Government support to the railways has more than doubled in real terms since privatisation”.
As we see Royal Mail sold off at a budget price to private investors, and the prospect of further sell-offs, we need to call a halt. The last 3 decades and more of privatisation are not for our benefit; they are about channelling profits into the hands of the few, and privatising control.
In a decent society, gas, electricity, water, railways, health services, Royal Mail and much more need to be under public control, for the benefit of all.
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