Privatised services return to public control

Over 1,400 privatised public services have been returned to national or local state control in recent years, according to a new interim report. In most cases, the shift back to public control was because privatised services were found to cost more while reducing quality, according to the international union federation Public Services International (PSI), which commissioned the report.

The future is public found that 1,408 ‘remunicipalisations’ had occurred over the last nine years, mostly in the water, local authority and energy sector. But telecoms, waste, healthcare, social services, education and transport also feature strongly (see table).

The remunicipalisations have happened across the globe, with more than 2,400 cities in 58 countries bringing privatised services under public control. Well over a hundred have taken place in the USA, while Spain, Germany, Norway, France and Britain have led in Europe.

The remunicipalisations have happened across the globe, with more than 2,400 cities in 58 countries bringing privatised services under public control. Well over a hundred have taken place in the USA, while Spain, Germany, Norway, France and Britain have led in Europe.

The report, produced by the Amsterdam-based Transnational Institute, says that privatisation has failed to live up to ‘neoliberal’ claims that private companies can always provide better services at lower cost.

It says privatisation inflates the costs to citizens and their governments because of the need to generate profits to pay shareholders, the added complexity of private provision, and the engagement of consultants and lawyers to design contracts.

In addition, it says private operators lack “long-term vision” in financial management, while state bodies are able to borrow money on much lower interest rates.

Its authors add that a growing number of municipalities are also tackling climate change and inequality through remunicipalisation.

The draft report was published for an international conference on remunicipalisation, which took place earlier this month. It comes as Fórsa has spearheaded efforts to bring Dublin City Council’s waste services back into public ownership.

 

Remunicipalisation by sector

Water 311
Local Government 223
Energy 374
Telecommunications 192
Transport 47
Education 38
Health Care 138
Waste 85
Total 1408