Editorial:  Privatisation the enemy

The following Editorial was published in "The Guardian", newspaper
of the Communist Party of Australia in its issue of Wednesday,
October 20th, 1999. Contact address: 65 Campbell Street, Surry Hills.
Sydney. 2010 Australia. Phone: (612) 9212 6855 Fax: (612) 9281 5795.
CPA Central Committee: <[EMAIL PROTECTED]>
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Webpage: http://www.cpa.org.au>
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We are told about "competition", "choice", "efficiency", "paying
off the public debt", but not about the deaths and injury
resulting from profits first and relegating safety to a minor
consideration. These issues have come to the surface again
following the lethal British rail crash a few weeks ago.

British Rail had been built up as an integrated, publicly owned
rail system for more than a century. But it took the "economic
rationalists" only a few years to smash it up and sell it off.

In 1994 it was divided into 25 Train Operating Companies, three
Rolling Stock Leasing Companies, Railtrack which owns the track
and signals, and three Train Freight Companies. There were also
three engineering service companies. This nightmare is further
complicated by more divisions within these companies.

This was Margaret Thatcher's doing but the British Labour Party,
although talking about re-nationalisation, has done nothing about
it and, before the most recent crash and fatalities, was about to
privatise part of the London Underground and the air traffic
control system. These have now been put on hold at least.

And why did the accident happen? We are told that one of the
drivers went through a signal light on red. But where were the
fail-safe systems which exist but have not been installed? There
are automatic systems which put the brakes on if a train goes
through a red light. Furthermore, there had been complaints going
back years about the location of the particular signal light
where the accident occurred, but the complaints were ignored by
management.

Thatcher's Tory Government thought the cost of $1 billion for the
safety system might stand in the way of their privatisation
plans. The Labor Government which followed, didn't insist upon it
either.

Following the most recent accident (and this was not the first at
the same signal point) the British Minister of Transport has come
out in favour of the computerised safety system but the
Government wont pay and the private operators would put up
charges to pay for it.

So privatisation has created a maze of different companies - the
companies which operate the trains do not own the railtracks or
run the signals system. Other companies operate the freight and
passenger flow. Different companies again operate the engineering
side of things.

What does all this amount to? In anyone's language it is plain
stupidity or to be more accurate - criminality. The real culprits
are those who, pursuing their mantra that "private is best"
created such a monstrosity out of the formerly publicly-owned,
integrated system.

A Financial Review article (14/10/99) reveals that Britain's rate
of rail-passenger deaths was three times those for Italy, Belgium
and Spain in the ten years to 1996 and higher than those in
France and Germany. And what is the difference? In these European
countries the rail systems remain publicly owned and they have
installed the already developed and available safety systems.

Have Australian Governments learnt from these lessons? Apparently
not. The Victorian Government privatised the Victorian rail
system, also slicing it up into segments.

The Federal Labor Government privatised National Rail and the NSW
Labor Government is hell-bent on privatising and fragmenting the
State Railways - a process which has already commenced. But the
opposition to privatisation is growing. In NSW the Government's
proposal to privatise the electricity network was thrown out - at
least for the time being.

The NSW Labor Council has strongly opposed the privatisation of
the rail system. Labor Council President, John Whelan said "this
is a big campaign, against the tide of economic rationalism, but
it has our highest priority."

A Council report showed that fragmentation would lead to
inefficiencies, fewer jobs in rural areas, contractors would have
little interest in training apprentices or improving employee
skills and this would have an impact on safety. The present
process of "contracting out" has already led to the creation of
about 3,000 separate contracts requiring a large bureaucracy to
manage them. They would multiply under further privatisation.

Public transport provides a service while privately owned
transport gives priority to shareholder profits. Services go
down, prices go up and safety become a poor relation.





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