Timmy elsewhere

What Southern Cross tells us about privatising public services.

9 thoughts on “Timmy elsewhere”

  1. And, given the congruence of an organisation full of dozy old people who have a flimsy grasp of reality and no clue as to what the young people are doing, did you not add banks to your list?

  2. The big losers are the (a) investors who bought shares and (b) self-funding residents who are subsidising state-funded residents – the big winners are (i) the management who cashed in at unrealistic prices (and who would have gone to jail for that in the inter-war period) and (ii) local authorities who used their monopsonist power to place residents at well below cost as long as it was just above marginal cost.
    The message is “caveat vendor” to anyone selling services to the state. I should also like the FSA to investigate *everyone* concerned with the over-priced flotation and/or the share sales by the executives.

  3. So having these homes run out of unaccountable and secret companies is a good thing? Jesus wept.

    This is utterly contemptible even for you timothy.

  4. The fact that they went belly up is proof that they are accountable.

    The belly-laughs just don’t stop, do they? Any more feeble-minded justifications for this particular clusterfcuk, or are we all done? I’ll be bringing it up at the next ward meeting, for sure: “Boss, the way to make us more accountable, competitive and efficient is to be asset-stripped by a bunch of PE bully boys who operate a business model that is unsustainable at best (and, imo, plain criminal at worst). It will do wonders for A+E – just look at how the pay of care assistants shot up under Blackstone!”

    The care homes still exist, the elderly residents are still in residence. The staff are unchanged

    Too right. Just the other day I pulled off a major bank heist – but it’s ok, because the actual building is still standing, the customers still have accounts there and the counter-staff remain unchanged.

  5. Lost_nurse: In the example of the bank job, there was a transfer of wealth from the bank to the robber. In the example of Southern Cross, the transfer went the other way: the shareholders and banks lost all their money, benefiting some combination of the landlords, the staff and the residents (if the company can’t make a profit, definitionally it’s either paying too much or charging too little).

  6. the transfer went the other way

    I’m aware of who got burned in the final reckoning… all the same, it’s absurd to hold up Southern Cross as an example of accountability (and to pretend that such antics have no bearing on service provision – “the care homes still exist” etc)!

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