Privatization Is Bad
One of Britain’s largest government contractors, Carillion, announced bankruptcy on Tuesday, leaving its 20,000 UK employees unsure of their future and causing layoffs at its subcontractor. The company was £1.5 billion in debt. Whoops!
The company is woven into basically every part of the public sector in Britain, from school meals and hospital cleaning to housing for the military. It provided services to half of Britain’s prisons. Often, they were very poor services; the independent monitoring board at one of the prisons Carillion staffed called conditions “squalid” and “inhumane” due to, for example, “blocked toilets, leaking sewage and broken facilities meaning prisoners regularly go without showers, clean clothes and hot food.” Other private contractors in the UK are hardly any better. One, Serco had to repay the government £68 million, after it charged them to monitor criminal offenders it wasn’t actually monitoring, including some who were dead. At the 2012 Olympics, another firm, G4S, had a $355 million contract to provide security but ended up being 3500 personnel short. The government had to call in the army to fill the shortage.