Socialist Outlook

Socialist Viewpoint, International, Socialist Outlook and their supplements, 1984–2002

Smith signs blank cheque for discredited Tory scheme

· Socialist Outlook no. 3, March 1997 · 743 words

Transport workers

MORE INDICATIONS of conflicts to come between a 'New Labour' government and public sector unions have been revealed following an astonishing letter from Shadow Health Secrecary Chris Smith to Ton 1Ps, embracing the Tories' controversial Private Finance Initiative (PFI).

The essence of PFl is that by financing, building and running major sorta of banks. buidin firms and ices would drive a massive wedge of providing support servprivate ownership ocep into the fabric of our health services, for the first time since Labour nationalised the hospitals in 1948.

Labour's initial reaction to PFI was to refect and oppose it, one of the few useful positions argued by former Shadow Secretary Harriet However Chris Smith, in line with his front bench colleagues, was quick to retreat from this stance, and by December of last year was treading the omicuis agnurope of ridiculing the Tory failure to get any PFi-financed hospital projects off the ground, while pledging Labour welcome joint public/private initiatives for the designing and build. ing of hospitals".

Embrace

But this ambiguous line has debrace for the PFI - Tory warts and all. Smith chose to announce the latest policy not to the labour moveeven the general public, but in a letter to tory mirs, assuring them that a Labour would honour any PFi deals signed between now and the general election. panies and NHS bosses struggling to complete dodgy deals involving tens cially disastrous long-term revenue costs for NHS Trusts.

Worse still, Smith went on to assure staggered Tories that where pleted, Labour would "be seeking new ways of speeding up the process."

Smith's offer to underwrite any scheme anywhere, whatever the cost to the NHS (and Gordon Brown's revered "taxpayer") could trigger a succession of flawed and will take responsibility while the consortia pocket guaranteed long: term profits.

Bur Smith's latest turn brings him into conflict with the biggest public sector union UNISON, which has just reinforced its own campaigning opposition to the principle of PFI. issuing a new campaign pack to health branches a well as detailed briefing material.

It now seems that only the nickety finances of NHS Trusts and the cash shortages in local health authorities stand between us and a hospitals being run for profit within tac Nhis. The UNISON Clipsheet (No 17) is available from its Communications department.

proceded to agree a deal which cut wages and worsened conditions, it soon became clear that the workforce would not acOnly a handful were prepared to sign new personal contracts and nearly 300 workers switched to the RMT when it launched a ballot for industrial action. Seeing the strength of feeling, AMEC were forced to back down, recognise the RMT and withdraw the proposed Last summer the RMT's campaign for better pay and conditions for guards was successful in most companies but even then, the at tempt to build a unified campaign floundered in the tace of the law Balloting restrictions and other legal problems meant that the battle had to be fought in each company -In Scotland, the dispute still continues. While the major de mands have been mel, activists were victimised and the demands are now for their full reinstatement.

This is the RMT leadership's main problem. While it is prepared to tight for action in defence of 1ts members, it has proved unable to ro bevond the legal restrictions it faces. Action has had to be taken being threatened with massive fines hecause workers from onc company have been refusing to jobs) formerly done by workers now in another company.

While we should keep disputes legal where possible, the union has to be prepared to act outside the legal straitjacket where necessary.

No discussion Development of such a strategy is urgent. But it is hampered by the tivists in the union. The leadership to keep its head above water, having to lurch from crisis to crisis.

And so far, attempts to resuscitate the old Campaign for a Fighting Democratic Union have foundered in the face of obstruction from key left players. This must be changed.

the recent development in or ganisation of the right in the union, in the name of the "Fightback of the Centre Left" (a group which is wildly misnamed as it neither fights nor is of the centre left, but is a semi secret electoral machine which was able to make some gains in tais cars exccuure cicetons, is a warning of the danger if this lack of debate continues.

← Don't let the right wing exploit CPSA merger! · Unions pull back from winnable battle to defend jobs Halewood: the missed opportunity →

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