NEO-LIBERALS AND SOCIAL DEMOCRATS

Selling off Scotland’s water a drop at a time

Soap Box
John McAllion

THE SNP describes itself as a ‘left leaning nationalist party’. Shortly after becoming Scotland’s First Minister, Alex Salmond told the BBC’s Andrew Marr that the new party of government was “social democratic” with “radical social ambitions for Scotland”.
Some influential voices outside of the SNP readily accept the nationalists' claim to be a party of the political left.
Leading columnist Ian McWhirter has argued that the nationalist government has done more in 10 months to uphold social democratic values than 'Red Wendy's' New Labour has done in 10 years.
As evidence, he quoted a string of early social reforms from free school meal pilots to the rejection of a new generation of nuclear power stations.
It is certainly true that by comparison with it's immediate predecessors, the SNP has moved Scottish Government decision-making to the left, including opposition to the Iraq war and the phasing out of NHS prescription charges.
Yet, these 'social democratic' measures still fall well short of what would pass as a genuinely democratic socialist programme.
Before neo-liberalism’s current hegemony, the minimum requirement for such a programme was to bring about a fundamental and irreversible shift in the balance of power and wealth in favour of working people and their families. Such a shift is not and never will be on the agenda of the nationalist government.
This becomes clear if we look at their policy on Scotland's publicly owned water and sewerage industry.
The self-proclaimed 'left leaning' government is currently presiding over what the Scottish Water Industry Commission's Chief Executive describes as "the most significant change ever to affect the water industry in Scotland".
The Scottish Water Industry Commission, under the chairmanship of the neo-lberal Ian Byatt, is charged with safeguarding the public interest in the supply of sewerage services, but has in fact been driving the industry towards privatisation for some considerable time.
The change referred to by Chief Executive Alan Sutherland is the opening up of Scotland's non-domestic sector to competition from the private sector. From 1st April this year the business sector will be able to choose to switch away from Scottish Water and to buy their water and sewerage services from newly licensed private suppliers.
Speaking at a recent Turning the Tide conference on the future of the Scottish water industry, Sutherland made clear just how radical a change this represented.
Scotland's non-domestic sector, "from the smallest newsagents in the Western Isles... to the largest industrial sites... to council offices... leisure centres... hospitals... would all now be free to choose private water suppliers".
Scottish Water, of course, will continue to control the publicly owned network of pipes, sewers and treatment works and to be responsible for the actual delivery of water and sewerage services across Scotland.
What will change will be a new layer of licensed private companies providing retail services like billing, business advice and customer relations.
Scottish Water will supply services at a wholesale price to the private companies who will then sell it on to their new customers at a different retail price.
The Commission will regulate the wholesale prices that Scottish Water can charge the private companies and have promised that these prices will be no higher than is 'absolutely necessary'.
The wholesale price charged, of course, will be set well below the retail price the private companies charge their new customers to allow for attractive profit margins.
At the same time, the Commission has promised that no business customer anywhere will be worse off.
So if the private companies are getting the water at knock-down prices from publicly owned Scottish Water, and their business customers will at a minimum be no worse off and probably better off, it does not take a genius to see that taxpayer funded Scottish Water will be left to pick up the bill for creamed off private profits and cut-price business charges.
The wind of change sweeping across our water and sewerage industry is the same neo-liberal wind that has forced privatisation and market forces on public sectors around the world.
Regina Finn, Chief Executive of OFWAT, has promised that the 28 private water monopolies in England and Wales will support cross border competition.
A subsidiary of Anglian Water has already registered as a licensed supplier for the Scottish market. Others will follow.
Alan Sutherland has suggested that big energy giants such as EDF and NPower will move into the market offering customers integrated bills for electricity, gas, water and sewerage.
Meanwhile, Scotland's 'left-leaning' government - nominally in favour of keeping Scottish water public - has welcomed the new wind of privatisation.
Water Minister Stuart Stevenson has described the invasion of private suppliers as "an exciting development" that will lead to "keener prices, innovation and improved service".
As privatised companies in England and Wales are hit with record fines for falsifying data, poor customer service and overcharging customers, Scottish Government ministers welcome them with open arms to a new Scottish market in water and sewerage.
It seems that social democracy and neo-liberalism walk hand in hand.
The SNP government may be social democratic. It certainly is neo-liberal.
Socialist it ain't and we should never forget that.

Edinburgh Leisure announce six crèches to close

by Linda Somerville

IN the four weeks since Edinburgh Leisure announced their shock decision to close six out of eight crèche facilities in their swim and leisure facilities in the City parents and carers have moved swiftly to fight the closures.
Edinburgh Leisure, a not for profit organisation, which manages sports and leisure facilities for the City of Edinburgh Council had its funding cut by £300,000 in February this year.
Edinburgh Leisure relies on the council for a third of its income and blames the closures on the Council’s budget decision. Meanwhile councillors have tried to distance themselves from the plan.
Lib Dem Council Leader, Jenny Dawe complained of inappropriate lobbying and explained to women who were protesting to her on the issue that, “it should be to Edinburgh Leisure whom they made their case”.
Angry mums demonstrated with their children outside the Council meeting in March calling on the Council to reverse the decision to close their crèche services.
Meanwhile the LibDem/SNP coalition council tried to face down the protesters with SNP Deputy Council Leader, Steve Cardownie stating “Edinburgh Leisure’s main job is to provide sports facilities not childcare”.
Cllr Cardownie failed to understand that without the quality, affordable childcare provided in the crèches most mothers could not participate in any activities.
With the level of protest rising mothers with children also targeted Edinburgh Leisure’s Board Meeting and handed in their petition.
In an attempt to halt the protest Edinburgh Leisure announced a change of plan, an immediate increase in crèche charges of £2 per visit and the closure of four out of eight services, rather than six.
Whilst this concession was welcomed by the campaign ­it still leaves four centres due for closure.
Edinburgh Leisure and the Council had assumed that they could get away with axing a subsidised service for women, it is nearly all mothers who use the service, as they were unorganised and dispersed.
However, the response from the women has been dynamic and effective forcing a review of the decision within weeks.
This situation shows the problems thrown up by public services being hived off to ‘not for profit’ or ‘trust status’ organisations.
No one is willing to take responsibility and be accountable for these closures.
Equally important is the fact that no public consultation was offered by the council or Edinburgh Leisure on the closures.
Our public services are paid for by our council tax and yet those who run the services believe they can change and scrap them at will.
The campaign to save our crèche services in Edinburgh will continue as parents are determined to have the final say.
¦ For more information see:  Saveourcreche.blogspot.com