http://www.asu.asn.au/news/categories/localgovt/140925-report-shows-outsourcing-costs-communities The community has been told over many years that
outsourcing council work results in savings that the community benefits
from. However, yet another independent report has revealed those savings
to be "often illusory" and the exercise accompanied by "a host of
unforseen problems". In the wake of these findings (that add to a
growing body of research questioning the benefits of privatisation) the
ASU calls once again for the return and retention of council work to the
in-house workforce.
"The
ASU commissioned this important and independent study to examine our
belief that, on balance, road work performed by in-house employees as
opposed to contractors is far better for local communities from the
point of view of quality, reliability, skills enhancement, job creation
and local community economic sustainability," said ASU Assistant
National Secretary Greg McLean.
Although the report, by Professor Brian Dollery "Outsourcing and Insourcing in Australian Local Government: Productivity Commission's (2014) - Public Infrastructure Report and Municipal Road Maintenance and Renewal" focusses on one part of council operations, the conclusions are applicable to the entire outsourcing adventure we've seen over the last 20 years in Australia.
On a purely cost basis, outsourcing or contracting out (both terms are equivalent to privatisation) has not delivered on the extravagant predictions conveyed to the community. It's not surprising given that those predictions often originated with the large companies vying for the work – hardly a trustworthy source of impartial advice!
When factors such as service quality and reliability are added to the equation, outsourcing declines as an option even further. Quality and reliability are obviously key issues for the community and should always be a major consideration for councils considering contracting out work.
Professor Dollery also examined how outsourcing particularly affects small regional, rural and remote communities, given that the local council is often the largest employer and source of economic activity in those areas. Not surprisingly, and as we predicted would happen, these smaller communities have been devastated by outsourcing and their sustainability has been "severely undermined".
It's not difficult to see that when large companies come in to take over work, many of them multinationals, the result is locals losing jobs - and this has a terrible domino effect on small communities.
Read the full article at http://www.asu.asn.au/news/categories/localgovt/140925-report-shows-outsourcing-costs-communities
"The
ASU commissioned this important and independent study to examine our
belief that, on balance, road work performed by in-house employees as
opposed to contractors is far better for local communities from the
point of view of quality, reliability, skills enhancement, job creation
and local community economic sustainability," said ASU Assistant
National Secretary Greg McLean.Although the report, by Professor Brian Dollery "Outsourcing and Insourcing in Australian Local Government: Productivity Commission's (2014) - Public Infrastructure Report and Municipal Road Maintenance and Renewal" focusses on one part of council operations, the conclusions are applicable to the entire outsourcing adventure we've seen over the last 20 years in Australia.
On a purely cost basis, outsourcing or contracting out (both terms are equivalent to privatisation) has not delivered on the extravagant predictions conveyed to the community. It's not surprising given that those predictions often originated with the large companies vying for the work – hardly a trustworthy source of impartial advice!
When factors such as service quality and reliability are added to the equation, outsourcing declines as an option even further. Quality and reliability are obviously key issues for the community and should always be a major consideration for councils considering contracting out work.
Professor Dollery also examined how outsourcing particularly affects small regional, rural and remote communities, given that the local council is often the largest employer and source of economic activity in those areas. Not surprisingly, and as we predicted would happen, these smaller communities have been devastated by outsourcing and their sustainability has been "severely undermined".
It's not difficult to see that when large companies come in to take over work, many of them multinationals, the result is locals losing jobs - and this has a terrible domino effect on small communities.
Read the full article at http://www.asu.asn.au/news/categories/localgovt/140925-report-shows-outsourcing-costs-communities
