Privatisation

• This inquiry is about finding ways to put the people who use human services at the heart of service provision. This matters because everyone will use human services in their lifetime and change is needed to enable people to have a stronger voice in shaping the services they receive, and who provides them.
• In the study report for this inquiry, the Commission identified six services for which the introduction of greater user choice, competition and contestability would improve outcomes for the people who receive them. These services are: end-of-life care services; social housing; family and community services; services in remote Indigenous communities; patient choice over referred health services; and public dental services. This final inquiry report sets out tailored reforms for those six services. There is no one-size-fits-all competition solution.
• Users should have choice over the human services they access and who provides them, unless there are sound reasons otherwise. Choice empowers users of human services to have greater control over their lives and generates incentives for providers to be more responsive to their needs.
  • Competition and contestability are means to this end and should only be pursued when they improve the effectiveness of service provision.
• A stronger focus on users, better service planning and improved coordination across services and levels of government is needed. Governments should focus on the capabilities and attributes of service providers when designing service arrangements and selecting providers — not simply the form of an organisation.
• Each year, tens of thousands of people who are approaching the end of life are cared for and die in a place that does not fully reflect their choices or meet their needs. Reforms are needed to significantly expand community-based palliative care services and to improve the standard of end-of-life care in residential aged care facilities.
• The social housing system is broken. A single system of financial assistance that is portable across rental markets for private and social housing should be established. This would provide people with more choice over the home they live in and improve equity. Tenancy support services should also be portable across private and social housing.
• Family and community services are not effective at meeting the needs of people experiencing hardship. Practical changes to system planning, provider selection, and contract management would sharpen focus on improving outcomes for people who use these services.
• Current approaches to commissioning human services in remote Indigenous communities are not working. Governments should improve commissioning arrangements and should be more responsive to local needs. This would make services more effective and would lay the foundation for more place-based approaches in the future.
• Patients should have greater choice over which healthcare provider they go to when given a referral or diagnostic request by their general practitioner. A simple legislative change would help. More patient choice would empower patients to choose options that better match their preferences. Public information is needed to support choice and encourage self-improvement by providers.
• Public dental patients have little choice in who provides their care and most services are focused on urgent needs. Long-term reform is needed to introduce a consumer-directed care scheme. This would enhance patient choice and promote a greater focus on preventive care.

• Greater competition, contestability and informed user choice could improve outcomes in many, but not all, human services.
• The Commission has prioritised six areas where outcomes could be improved both for people who use human services, and the community as a whole. Reform could offer the greatest improvements in outcomes for people who use:
  • social housing
  • public hospitals
  • end-of-life care services
  • public dental services
  • services in remote Indigenous communities
  • government-commissioned family and community services.
• Well-designed reform, underpinned by strong government stewardship, could improve the quality of services, increase access to services, and help people have a greater say over the services they use and who provides them.
• Introducing greater competition, contestability and informed user choice can improve the effectiveness of human services.
  • Informed user choice puts users at the heart of service delivery and recognises that, in general, the service user is best placed to make decisions about the services that meet their needs and preferences.
  • Competition between service providers can drive innovation and create incentives for providers to be more responsive to the needs and preferences of users. Creating contestable arrangements amongst providers can achieve many of the benefits of effective competition.
  • For some services, and in some settings, direct government provision of services will be the best way to improve the wellbeing of individuals and families. The introduction of greater competition, contestability and choice does not preclude government provision of services.
• Access to high-quality human services, such as health and housing, underpins economic and social participation.
  • The enhanced equity and social cohesion this delivers improves community welfare.
• Government stewardship — the range of functions governments undertake that help to ensure service provision is effective at meeting its objectives — is critical.
  • Stewardship includes ensuring human services meet standards of quality, suitability and accessibility, giving people the support they need to make choices, ensuring that appropriate consumer safeguards are in place, and encouraging and adopting ongoing improvements to service provision.
• High-quality data are central to improving the effectiveness of human services.
  • User-oriented information allows people to make choices about the services they want and for providers to tailor their service offering to better meet users' needs.
  • Transparent use of data drives improvements in the performance of the system for the provision of human services and increases accountability to those who fund the services.

A nice little potted history of Australian telecommunication privatisation failure:

A closer look at the record tells a different story. Technological progress in telecommunications produced a steady reduction in prices throughout the 20th century, taking place around the world and regardless of the organisational structure. The shift from analog to digital telecommunications accelerated the process. Telecom Australia, the statutory authority that became Telstra, recorded total factor productivity growth rates as high as 10% per year, remaining profitable while steadily reducing prices.

But for the advocates of neoliberal microeconomic reform, this wasn’t enough. They hoped, or rather assumed, that competition would produce both better outcomes for consumers and a more efficient rollout of physical infrastructure. […]

The failures emerged early. Seeking to cement their positions before the advent of open competition, Telstra and Optus spent billions rolling out fibre-optic cable networks. But rather than seeking to maximise total coverage, the two networks were virtually parallel, a result that is a standard prediction of economic theory. The rollout stopped when the market was fully opened in 1997, leaving parts of urban Australia with two redundant fibre networks and the rest of the country with none.

The next failure came with the rollout of broadband. Under public ownership, this would have been a relatively straightforward matter. But the newly privatised Telstra played hardball, demanding a system that would cement its monopoly position in fixed-line infrastructure. The end result was the need to return to public ownership with the national broadband network, while paying Telstra handsomely for access to ducts and wires that the public had owned until a few years previously.

Meanwhile the hoped-for competition in mobile telephony has failed to emerge. The near-duopoly created in 1991, with Telstra as the dominant player and Optus playing second fiddle, has endured for more than 30 years. 

Every major English water company has reported data suggesting they’ve discharged raw sewage when the weather is dry – a practice which is potentially illegal.

BBC News has analysed spills data from nine firms, which suggests sewage may have been discharged nearly 6,000 times when it had not been raining in 2022 - including during the country’s record heatwave.

[…]

Helen Wakeham from the EA says the BBC’s methodology is, in fact, “more generous” to the companies than the EA’s.

Commenting on the results of the BBC’s investigation in general she said: “I'm not surprised, these networks haven't been invested in for decades. That investment needs to take place.”

In May the UK’s top engineers and medical professionals warned in a public report the risk from human faecal matter in our rivers will increase without changes to the network and how we build our cities.

Dr David Butler, professor of water engineering at the University of Exeter, and co-author of the report, said investment from water companies has “not really been up to scratch”.

As the Labour leader faces a backlash for his praise of the former Tory prime minister, a leaked email shows he stopped Sam Tarry, then the party’s shadow minister for transport, from attacking her failed policies in 2021.

[…] 

Left-winger Mr Tarry had wanted to criticise her 1985 Transport Act, saying it “failed to deliver lower fares and better services across Greater Manchester”.

But when the comments were sent to Sir Keir’s office for approval, one of his top aides insisted the reference to Thatcher be taken out.

The leaked email said: “Can we take out the Thatcher stuff and instead criticise the current government?” 

An adviser to Mr Tarry pushed back on the suggested edit and replied: “Mr Burnham’s happy with it and she’s despised in the north, so it will play well with voters.”

But Sir Keir’s aide insisted the reference be removed to “focus on the current set of elections and criticise the current set of Tories”.

[…] 

A source familiar with the exchange said it was indicative of Labour’s refusal to criticise Ms Thatcher under Sir Keir’s leadership, adding that recent praise for her was “less of a surprise and more of a confirmation of the Labour leader’s admiration for the former prime minister”.

A parliamentary inquiry has laid the foundations for government to reinvent unemployment services, finding the system has become obsessed with "kicking people off welfare", instead of helping them.

The government-dominated committee, established in the weeks after the government's 2022 federal election win, has called for a shift away from intense compliance measures and the return of some privatised job services to government.

Its chair, Julian Hill, said the ground-up review was the first of its kind since employment services were privatised 25 years ago.

Mr Hill wrote that in that time, the sector had degraded into a system that was not helping people find work and was neglecting employers.

"It's harsh but true to say Australia no longer has an effective coherent national employment services system," Mr Hill wrote.

A new campaign calling for ten thousand people to stop paying their wastewater bills, to force companies to end the practice of pouring 11bn litres of raw sewage every year into UK rivers and seas, was launched on 15 November by Extinction Rebellion and local water action groups.

The Don’t Pay for Dirty Water campaign, which targets all of the major water companies, kicked off with a splash, with campaigners swimming beneath the sewage outflow into the River Roding in East London.

The organisers vow to sign up at least ten thousand people to withhold the wastewater or sewerage part of their water bill. By collectively withholding millions of pounds, the boycotters hope to pressure water companies and the government to fast-track infrastructure upgrades and stop diverting ordinary billpayers’ money into massive profits for shareholders while billpayers’ local waterways are poisoned.

Last November, however, Trevaunance Cove turned brown with sewage. Lifeguards described the stench as "unbearable". The utility company responsible — South West Water — said heavy rains forced it to release the sewage and storm runoff to avoid the local filtration system becoming overwhelmed.

But the pollution event was no one-off. Two months prior, discharge alerts were in place at more than 100 beaches around the country, and in 2021, there were more than 370,000 such releases of raw sewage by water utilities across the United Kingdom. That year, another company, Southern Water, was fined a record 90 million pounds ($170 million) for dumping 21 billion litres of untreated sewage into protected marine areas off the southern coast of England.

Rivers and lakes have also been used as dump sites; there are credible reports that untreated sewage is spilled into natural waterways every two-and-a-half minutes. As temperatures across the UK have risen, there has been a growing backlash against the government's inability to fix the problem.

At the heart of the scandal is a decision taken in 1989 to sell off the country's water and sewerage industry.