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Lambeth Teacher with Lambeth NUT

Leading Teachers in the defence of education.

PFI - Procuring Financial Instability

Privatisation: Why Teachers Must Oppose PFI and all forms of privatisation

Once there was a time when schools were run as education institutes and the headteacher was a human being chosen from our ranks, interested in education and whose business acumen was perhaps limited to getting the Xmas turkey for the staff lunch at the best price possible.

Times have changed. Headteachers seem to have become chief executives, the children more statistical than ever, the local authority is now the parent company with the playgrounds being quoted on the real-estate section of the FTSE 100 index.

Now nobody for one minute would suggest that this has improved education. So what, you ask, is going on? Now, Lambeth Teacher is not one to endulge in the conspiracy theory approach. However, to make sense of the decisions which are being taken on our behalf, it is important that we put together a few pieces of the jigsaw

  • The powerful World Trade Organisation has declared its intention of moving aside barriers which have prevented private companies moving into the education market which world wide is worth $US 1000 billion
  • In 1997, the Blair government launched EAZs as a partnership scheme where private business would have political representation on education projects, such as the one we have in Lambeth. The private consortia would cough up £250,000 per year. The average private investment, but still affording the same influence has been around a measly £11,000. In Lambeth two workers have been sacked for lack of funding.
  • The next initiative to unfold was Private Finance initiative (PFI). This was instead of the DfEE using £billions which the Chancellor has at his disposal, private companies may tender, not only for the right to build the school at a profit, but also the right to run it for up to 60 years with their own work conditions. The flagship of this whole scheme was Pimlico where the governing body voted by 10 -8 not to go for the proposed PFI scheme. This was not because they were unreconstructed Socialists. It was simply because they realised that the proposals would mean high costs for poor working conditions and a financial burden on the community for many years.
  • in 1997, the value of Nord Anglia shares, prior to the arrival of Mr Blunkett was around £1.25. Within weeks it more than tripled to £4.45. In the year up to August 1998 its turnover increased by 30% to £62.4 million, with pre-tax profits of £2.78 million.
  • Then we are told of failing local authorities. Franchises are to be given to consortia who bid to provide services. So far, they have taken over the service or part of the service in Islington, Hackney and Southwark among the London boroughs, but have so far been thwarted in Haringey and Waltham Forest.However, the threat is real across the country. It is not as though we are talking about educationalists - Bradford's consortia included Group 4 of the prison vehicles fame and a local firm best known for gravel extraction (at least the playgrounds will be of good quality). They are also concerned that their new chief executive will be a retired Rear Admiral !! (Which would make sense at London Nautical, but just about nowhere else).
  • During this period the Education and Training index of the FT has outperformed FTSE by 300%. It is likely that with the demise of stocks elsewhere, portfolios relating to the plundering of education will buck the present trend.

Lambeth Teacher considers that there is a concerted campaign to privatise education which has developed by Blair's ministers but is part of a drive by large capital to get its hands on education across the globe. It isn't something original to New Labour - it has already failed elsewhere, notably in the USA.

As issues develop we will give coverage to the questions and support to those resisting. However, there is no time to lose.

Some questions for the Lambeth Authority (or why we have such a mess with capital assets):


  • Why was the vote of the Vauxhall community who opposed the Vauxhall village plan on a 60 -40 basis ignored?
  • Why is the development to redevelop Lilian Baylis at Kennington going ahead despite the objections of the community?
  • Why have PFI deals been set up, of which we have not been given any details, rather than finance coming from the redevelopment of the existing Lilian Baylis site?
  • Which brings us to: is there any link between the successful PFI bidders for the Kennington site and the proposed developers for the existing lilian Baylis site?
  • How much is the PFI proposal going to cost and over how many years?
  • What position in relation to the school, including the curriculum and the governing body is the successful bidder going to have?
  • How much are the bidders going to have to borrow on the money markets and at what interest rate?
  • How does this compare with what the local authority would have to pay at a preferred rate?
  • What is Lambeth doing with the proceeds from the sale of prime sites such as Caldecot to Kings College Trust (it was them, wasn't it or is there another scam?), the sale of Dick Sheppard where developed flats at the new Brockwell Gate are selling at a mere £270,000 or at Santley which in turn has been converted into luxury flats?
  • What approaches have been mase to DfEE for funds. If not, why not?

The Pimlico Conundrum

Pimlico School -

Governors voted to keep the profiteers away

The proposed PFI contract for Pimlico School, Westminster, posed a number of crucial questions: What might happen if the numbers of pupils in the school were to fall but the school still had to pay a price calculated on the basis of an expectation that the school contained a larger number of pupils? Would money be taken from the school and the school forced to make cuts to meet its contractual cormmitments to the private consortia? Would money be taken from the Authority's budget for all schools in Westminster in order to pay the PFI contract first before allocating funding to all the other schools? Would the need to maintain a certain level of admissions to the school impact on neighbouring schools? In effect the LEA could become relatively powerless to do anything about it because of the obligation to meet the contractual demands private contractor. (From the Case Against Privatisation, Bernard Regan)
Related links

Lilian Baylis

5 reasons to avoid PFI - NUT advice(PDF format)

Tower Hamlets - Ballast go bust

Secondary School Shortages

'Not For Sale' - a pamphlet by Bernard Regan

Full text of the resolution passed at Cardiff Conference

National Union Circular

Outsourcing

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