Outsourcing is a further transfer of wealth to big business

Statement by the Communist Party of Ireland
3 September 2012


The Government is to outsource services in health, justice, education and local authorities as part of the EU-IMF cuts programme. Each department has been given until the end of the year to propose areas for outsourcing; but given the history of these major decision being discussed beforehand in foreign parliaments, it is likely that the principal areas have already been picked and that this is merely a rubber-stamping of this major negative development in the provision of services to Irish people.
     Private companies will carry out these services only if there is profit to be made off citizens. This will drive a reduction in the quality of services, accompanied by extra costs, either direct to the citizen or by way of government contract. These companies will put their own profit agenda ahead of citizens’ needs. It is likely that any outsourcing will also lead to offshoring as jobs are sent to the cheapest country.
     We are still suffering the consequences of this private-sector agenda in banking that has bankrupted the country.
     What outsourcing really represents is a transfer of money from citizens to big business. It will be the usual global monopolies that will win contracts through their cut-throat cost-cutting, and the state will hand over millions to boost their profits.
     Once again Irish taxpayers will be paying for the lavish and outrageous lifestyles of a global elite while our services are cut, jobs outsourced and offshored, and our young people forced to emigrate.
     Unions and citizens need to combine to defend jobs and services. The trade union movement, if it is to remain relevant, must no longer allow the tail to wag the dog but must break with Labour Party policy.

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