Alan White

Unreported Britain

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The G4S failures aren't an isolated case - they show up the failure of an entire ideology

Following the Olympic fiasco, an official report suggests setting up a "list of high-risk providers, who have a track-record of failure in the delivery of public services". That's not enough.

The G4S sign. Photo: Getty
The G4S sign. Photo: Getty

G4S hasn’t had a good time of it of late. Today’s Home Office Select Committee report says that blame over the Olympic fiasco rests "firmly and solely" with the company. It urges G4S not to accept its £57m management fee.

Now that might sound like quite a hit. It’s not. G4S receives £759m from the taxpayer every year, through contracts with 10 central Government departments and agencies, and 14 police forces in England and Wales.

The report recommends setting up “a register of high-risk providers, who have a track-record of failure in the delivery of public services [...] This would provide a single source of information for those conducting procurement exercises about companies which are failing or have failed in the delivery of public contracts." The Government, in response, swiftly pointed to a June announcement that it would “take the performance history of our suppliers into account during the procurement process”.

I can’t help but find it odd, this sudden belief in the necessity of accountability. Look, I’m not a politician. I have no experience in contracting out work beyond leaving the washing up and hoping someone else does it. But if I were, I kind of think I’d have seen a few warning signs prior to the Olympic scandal. I’d probably have started with the Wikipedia entry of the company I was dealing with, for a start. There I’d have seen a list of failures stretching right the way back to 1993. But you know, anyone can put anything on Wikipedia.

Still, I might have heard about what happened three years ago at a G4S immigration removal centre, when a 10-year-old girl - an asylum seeker - was forcibly arrested and locked up, let go, arrested and locked up again - the distressful treatment causing her to attempt to hang herself. And I’d almost certainly have known what happened a year later, when three G4S security guards restrained Angolan deportee Jimmy Mubenga, he lost consciousness and later died - this despite an internal document urging management to meet the problem of the use of lethal force “head-on, before the worst happens”. (The company released a statement saying: "The welfare of detainees in our custody is our top priority and we take any allegations of mistreatment extremely seriously.")

If I’d missed that, perhaps I’d have spotted another report one year later, when staff working for the chief inspector of prisons, Nick Hardwick, saw G4S staff using using "offensive and sometimes racist language" on a flight to Nigeria. According to the Independent: “Handcuffs and other restraint techniques were used inappropriately. Staff working for G4S were overheard referring to detainees as ‘gippos’, ‘pikeys’ and ‘typical Asians’.”

But I guess that’s fine. We’re Brits. We don’t like asylum seekers anyway, do we? But what if, last year, I’d read this essential, in-depth report from OpenDemocracy into the death of a man in Australia, cooked to death while being transported more than 220 miles across the bush in a van with faulty air conditioning in January 2008? What if I’d read of the company’s spinning strategies in that case, of how it attempted to shift the blame to two members of its staff, of how it had previously weaselled its way around competition law? I don’t know, maybe I’d have wondered if this was a company which was getting too big for its boots.

And what about this year? What if I’d read about a far-less reported story - that of a G4S custody officer at the Medway training centre in Kent (which offers “support, guidance” and “child care best practice”), who Private Eye reported suffered minor burns after a cheese sandwich was thrown at him, prompting other members of staff to take to his Facebook page and describe the youths in their care as “fucking cunts” and “fucking arseholes”? After a letter from the Howard League for Penal Reform an internal inquiry was carried out - apparently two members of staff have already been sacked and more are to follow.

Maybe by now, I’d have begun to wonder if these all these stories weren’t the result of a few rogue members of staff, but instead were emblematic of a cultural problem coming from the top. But then, if I were a politician, maybe these aren’t the kinds of stories I’d want to hear. I mean, if I were a politician, I could potentially pick up fees of £50,000 a year from G4S before I’d even left Parliament, before becoming a director of the firm.

And of course, if I’d heard that there should be a register of underperforming firms, I’d be worried, because there’s just so much invested in this one, and given what’s happened with the Olympics, you could say there was an element of hypocrisy to some of the work it’s now doing. Take one example: G4S earns £183m to help the unemployed find work through the Government’s Work Programme. During the first eight months of the programme it asked benefit offices to “sanction” 7,780 claimants who hadn’t turned up or done what they were told on their employment schemes. 

But nevertheless, G4S is keen to stamp out the scroungers - it's been known to use secret surveillance techniques to do so, a tactic at which even the Daily Mail gasped. And as the excellent Clare Sambrook has pointed out, surveillance is big business, and damn the societal consequences - tracking people for insurance companies, monitoring tagged offenders, promoting biometrics to help employers keep an eye on their workers, flogging number plate recognition technology to retailers so they can tell how often customers drop by, creeping into the police’s traditional roles, putting CCTV in schools - it’s all about G4S’s motto of “Securing Your World”.

And this company has its fingers in so very many pies. Health, would you believe. It took Private Eye to show that earlier this year non-emergency G4S drivers for St George’s hospitals are paid below the minimum wage, that bullying is rife, turnover high, and morale low. One under-trained staffer revealed that his first week involved taking end-of-life cancer patients home on stretchers, hooking up oxygen cylinders, telling friends and families that ‘everything would be alright’, signing off “Do Not Resuscitate” papers and helping carry overweight patients up stairs. Another told the magazine: “There really shouldn’t be a role for G4S in the health service. [The words] G4S and care do not belong in the same sentence.”

Why are our politicians so happy to rely on this hulking corporate behemoth with a track record of unreliability, intrusion and cruelty? It’s pretty simple. Britain is in the biggest wave of Government outsourcing since the 1980s. The Coalition, of course, won’t talk about “outsourcing” - not a very Lib Dem-friendly term - so we instead hear of “open public services”. All this part of a drive to allegedly save money and restrict the state’s role.

There is conflicting academic evidence about the efficiency savings - but perhaps they don’t matter. What matters rather more is the appearance of efficiency. An example: G4S has recently taken on the Oakwood prison contract, which is valued at £349m. According to an FOI request, again by Private Eye, it would cost £498m to run it in the private sector. But the Ministry of Justice has decided it’s not in the public interest to show exactly how these savings will be generated. As the magazine asks: “Could that be because, like the Private Finance Initiative before it, outsourcing depends on heroically optimistic financial projections and fiddled calculations?”

Now, even the sainted P. Toynbee of Guardian Towers has admitted that there are some benefits to outsourcing (as long as it’s done in a nice way, by nice Labour politicians). But let’s not kid ourselves it’s creating competition. No - the likes of G4S, A4e (of fraud claims fame), Serco and Capita (both of too many failures to mention fame) are the only shows in town. The services in which they specialise are of use only to the state. So you have a relentless drive for profit, and no real competition.  And let’s not pretend that any "efficiency savings" will be generated through much more than the kind of wage practices faced by the St George’s ambulance drivers.

And then we wonder why six out of ten people who use food banks are from working households. The G4S Olympic fiasco wasn’t just a story about one company’s failure to deliver a contract. It was about the failure of an ideology. 

21 comments

A Realist's picture

The job centre system is a useless, outsourced, privatised profit making calamity. I've known companies gets thousands from providing daily papers, one computer, a few stamps and making people attend all week to sit in an office on a chair with nothing to do- nothing they couldn't do in the library, or at home. Indeed they deserve a comedy show of their own.

The trouble is that many of the ministers/staff that make these contracts do not understand the system required. Hence a computer illiterate signing off the nhs IT system that failed. Where did the billions go? These private contracts are not cost efficient and they take the profits and lay off workers. Surely government funds should provide good services and jobs. Trouble is, the companies want money fast and the ones giving out the contracts are too impressed with logos and pr, or a face they know, rather than quality and often do not get a good deal for the public. At least in state hands people were kept employed. You may not expect the state to make bandages and walking sticks, but it seems prudent to have national security, railway, health, education and the job centre in government hands. Otherwise, soon we will lose control of everything.

Spleenboy's picture

Drivel.
A poor private company proves Government shouldn't outsource?
Do the damning reports on the NHS prove we should only pursue private health care providers?
The cluster at G4S is a reflection on G4S.
The poor reports on NHS trusts are a reflection on those trusts.

99% of people in the private sector do not work for profit: they work to feed their families.

Alan White's picture

I'm not saying Govt shouldn't outsource though, am I. I'm saying if it's done in such a way there's no real competition and the economies being generated are false ones, then you're cutting off your nose to spite your face.

Dark Heart of Toryland's picture

No, an effectively monopolistic cartel of very poor private companies suggests that government outsourcing will not result in efficient, well-run public services. And you're right: 99% of people in the private sector aren't those making a profit - it's the reckless profiteering of the 1% in charge that's the problem.

Mrs.Josephine Hyde-Hartley 's picture

I don't think it's a good idea to invent lists or registers of any underperforming concerns, unless it's possible without simultaneously creating the potential to realise powerful, critical reflections about the position of members of the general public who may thus become involved -including ordinary workers, users, customers, parents, school-kids, patients, clients.

There's too much information being collected unnecessarily in my view..too many lists - some of which are nothing other than a fallacious affectation of powers, designed to over-regulate the public.

RH47's picture

There was a time when sections of the Labour Party believed that nationalising everything in sight would provide a solution to all ills. Of course it wouldn't, and the extreme ideology never gained traction - the party was then broadly based, and generally recognised that a mixed economy, with strategic areas of public ownership, reflecting the identification of the shared, public good was the way forward.

Some years down the line and the opposite extremism took hold - coming from the right, but, sadly, adopted in various guises by the great thinkers of nuliarbore, who decided that the label 'Labour' was a bit more trendy than being a Tory.

And so we are where we are - vast swathes of public goods auctioned off under various pretences. The main cover stories relate to nebulous 'efficiences' and letting the market bring more responsiveness into monolithic state services.

Of course - it's all bullsh*t. Addressing inadequacies in the public services by handing them over to totally unaccountable trans-national corporations is about as useful as addressing a limp by cutting off the legs. And, of course, the efficiencies are as hard to discover as rocking horse sh*te. Mostly, the term actually describes a process of transferring massive rents to a handful of individuals and away from the arena of the public good.

Such 'efficiences' that are identified usually come in the form of cost transfers - ie, by imposing lower wages on de-unionised employees, or cutting service responsiveness. Hardly a model for an advanced society.

This state of affairs is, of course, what it is all about - contributing to the river of wealth transfer from bottom to top over the past 20 years.

At the most superficial level, anyone with a brain would recognise, from experience, that the notion that the private sector is always more effective than the public sector is complete tosh.

But, perhaps the most fundamental objection to the ideology is that, at a basic level, private enterprise is unsuited to owning what are commonly recognised as public goods. If a public enterprise malfunctions, it is not because it is public. Often it is because individuals within it are pursuing their private interests at the expense of the public interest.

But a private sector organisation, by definition, has no essential motive in pursuing the public interest - it's role is to generate profit, and its actions will only be shaped towards the wider public interest as far as ignoring that interest will damage profit (thus the crucial role of the tendering and regulation processes). Only those in denial still believe in the myth of perfect markets and their efficacy in producing optimum outcomes for the majority.

Markets and private enterprise are a necessary mechanism - in the appropriate sphere, but they cannot substitute for the public sphere. As Michael Sandel has pointed out, corruption (in many senses) inevitably results from such an ideology. Only the terminally stupid or supremely disingenuous looking for a fast buck pretend otherwise.

andyg's picture

RH47, Well written, couldn't agree more. But it was 'new labour'. Those barristers and the Tories are one of the same, me thinks.

RH47's picture

Indeed it was nuliarbore aka 'New Labour' that laid down its cloak for the over-privileged to walk on - totally missing the point of the party's existence and (at best) displaying a total lack of understanding of what the consequences would be.

The only (partial) excuse to the massive strategic failure of the Blair-Brown era is naivety. But, I fear, many involved were guilty of sins of commission, and were, indeed Tories in an ars*hol*'s clothing.

Much attention was focused on the expenses scandal, but the real story of what was going on was contained in the C4 documentary that set up the scam of a fake consultancy and exposed the 'Think of me as a taxi' mentality that had infected the political class so deeply. It was a much more repulsive sight than the simple venality of expenses fiddling, which was largely dealt with.

The defense that is put forward by the defenders of nuliarbore and all its works is that some good things were done in the period. Indeed there were, but these were largely isolated tactical achievements, whilst the main strategic outcomes involved endorsement of neoliberalism and the pre-validation of the next Tory government.

It would take a lot of isolated tactical achievements to begin to outweigh the dire consequences of fellow-travelling on this scale, to redress the black propaganda continually directed at public service and to undo the disastrous string of privatisations.

andyg's picture

RH47, Well written, couldn't agree more. But it was 'new labour'. Those barristers and the Tories are one of the same, me thinks.

Spleenboy's picture

Your alternative is what?

andyg's picture

Tax the rich!!!

John Snowdon's picture

As you point out Alan, G4S has a long history of abuses and failures which on their own should make them unfit to run any public service or be awarded a public contract. However, in February 2012, G4S was one three multinational security companies that took over all provision of asylum accommodation in the UK for the next five years.
G4S has been repeatedly accused of providing poor services in its prisons and immigration detention centres. In June 2011, it was revealed that a record 773 complaints were lodged in 2010 against G4S by detainees, including 48 claims of assault. The shocking case of Jimmy Mubenga the Angolan refugee who in October 2010, collapsed and died after three G4S guards used force to ‘restrain’ him during his forcible deportation, despite witness testimony, G4S will face no legal sanction.

Added to their appalling UK track record should be their complicity in Israeli violations of international law. In 2007, G4S Israel signed a contract with the Israeli Prison Authority to provide security systems for major Israeli prisons. G4S provides systems for the Ketziot and Megiddo prisons, which unlawfully hold Palestinian political prisoners inside Israel who are from the occupied Palestinian territories. The company also provides equipment for Ofer prison, located in the occupied West Bank, and for Kishon and Moskobiyyeh detention facilities, at which human rights organisations have documented systematic torture and ill-treatment of Palestinian prisoners, including child prisoners. At Al Jalame prison, Palestinian children are locked in solitary confinement for days or even weeks. By providing equipment to these prisons, G4S is actively participating in these violations of international law.

G4S is involved in other aspects of the Israeli apartheid and occupation regime: it has provided equipment and services to Israeli checkpoints in the West Bank that form part of the route of Israel’s illegal Wall and to the terminals isolating Gaza. G4S has contracts for equipment and services for the West Bank Israeli Police headquarters and to private businesses based in illegal Israeli settlements.

On Palestinian Prisoners' Day and to coincide with the mass hunger strike by Palestinian prisoners, Palestinian civil society organisations signed a Boycott, Divestment and Sanctions call urging the global solidarity movement to take action “to hold to account G4S, the world’s largest international security corporation, which helps to maintain and profit from Israel’s prison system, for its complicity with Israeli violations of international law”.

Campaigns have begun to highlight the record of G4S: recent demonstrations have targeted the company’s headquarters and activists have protested outside the G4S AGM at London Stock Exchange dressed in prison uniform to highlight G4S' complicity in the illegal detention and abuse of Palestinian prisoners. An 'Alternative Report' was also distributed which reveals a company raking in millions of profit on the back of human misery and violations of international law. A gathering will take place in Sheffield on Saturday October 6th to unite local anti-G4S campaigns under the banner 'Stop G4S'. It's time to work to prevent G4S from putting profit before human rights & dignity. More information from: stop-g4s@riseup.net

McMac's picture

Mmmmmmm. G4S is the largest employer of private security services in the world, work that by it's very nature produces contentious events. Your anecdotes may indicate systemic issues, but in no way prove the case. I could just as easily provide a list of anecdotes about police behaviour, which by your standards, proves that delivering services in the public sector doesn't work either.

Alan White's picture

I sort of agree with you but:

1) I was highlighting these cases as warning signs prior to the Olympics debacle - a calamitous failure of management which required the state to step in.

2) When you consider that the services they're carrying out for the large part aren't anywhere near as contentious as the job done by state police and security services, it's still quite the catalogue.

Daniel deB's picture

'I can’t help but find it odd, this sudden belief in the necessity of accountability. Look, I’m not a politician. I have no experience in contracting out work beyond leaving the washing up and hoping someone else does it. But if I were, I kind of think I’d have seen a few warning signs prior to the Olympic scandal. I’d probably have started with the Wikipedia entry of the company I was dealing with, for a start. There I’d have seen a list of failures stretching right the way back to 1993. But you know, anyone can put anything on Wikipedia.'

You appear to have been hoist on your own petard with this barnacle of bollocks!

AlienPsyTing's picture

EDS anyone??

Daniel deB's picture

That is not a defense of G4S or outsourcing, per se, though it is an attack on the quality of the article.

Surely outsourcing done correctly is very good model. If you can hire a good lot (not G4S) and hold them to strict standards, you should be able to save on costs which is surely the point of the practice and a good thing for the exchequer.

Certainly though given that sovereignty can be described as the unique power of enforcement of laws within a territory that outsourcing defense or policing diminishes this and shouldn't be done. Outside of that, I can't see many problems.

Gareth's picture

"If you can hire a good lot (not G4S) and hold them to strict standards, you should be able to save on costs..."

But it does not seem that this is being done. If the government can account for the ways in which costs would be saved under an outsourced company, it would be credible to believe that efficiency savings could be made through. But it seems that too often costs are not cut through improving efficiency but by cutting corners.

I have the same concern when ministers expect their departments to absorb significant cuts to their budgets "through efficiency savings". Theresa May, for example, continually claimed that the Police could sustain 20% cuts without affecting the number of "front line" Police (as if those Officers sat in an office did nothing but thumb-twiddling!) In reality, there are now 9,600 fewer Police Officers than when Coalition came to power. Non-identified savings tend not to be possible, and so tend not to happen.

upnorthkid's picture

This is an excellent, excellent article.

So much of this accounts for the state of our nation.

This.

"I could potentially pick up fees of £50,000 a year from G4S before I’d even left Parliament, before becoming a director of the firm."

These people should be in prison. It is corruption pure and simple. Prison is too good for them. We are a banana republic.

Indu Pendent's picture

Alan
"they show up the failure of an entire ideology" - you definitely do not make a sweeping generalisation?

Do you have a view on Labour's darling company Mouchel? The coalition cuts have put them into receivership. Do you think thats good?

Why doesnt the government insource everything Capita does for it?

Livers's picture

Why outsourcing the provision of security and health public services is bad;

1. loss of transparency - FOI doesn't apply to private companies, even if carrying out the duties of government

2. loss of accountability - Govt must be held to account

3. service quality - external providers deliver to a contract and no more.

4. govt becomes the customer - not the people - private providers are more interested in the govt customer than us the service consumer - this lack of focus and priority leads to decision making that does not put the patient or citizen first.

5. cost increase / value erosion - the profit motive eats away at the alledged efficiencies and 'competition' the free market offers. we end up with less for the same money, or the same for more money.

And lastly,

It has failed us, the people, in all the sectors it has been tried; bt, post office, electricity, gas, water, rail...

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