C21 Public services and the economy

Composite of motion 48, motion 49 and amendment, motions 50 and 51

The 2009 Budget increases government debt every year up to 2016 to tackle the recession and bail out the financial sector. Congress believes that a stimulus was the right response to ensure stability and restore growth quickly, and welcomes the Government’s recognition that investment in public services is vital to pulling the country out of recession. But Congress believes that cuts of £47bn between 2011 and 2018 will damage vitally needed services and local economies whilst ultimately impairing economic recovery.

Congress rejects the notion that the solution to the economic crisis, and the resulting national debt, must be found in public spending cuts which damage services, freeze public sector pay, or cut pensions and benefits. Furthermore, there are aggressive efficiency targets in all areas, not officially classed as cuts, that are already damaging public services and promoting privatisation. The Operational Efficiency Programme is compelling all public bodies to outsource services provided by excellent teams whether it makes sense or not. Such measures end up being more expensive, and fragment and weaken public service flexibility and capability. Staff experience worsening pay, conditions and pensions.

Congress expresses its profound concern at the likelihood of deep cuts in public spending from 2010 onwards, mainly as a consequence of the impact on public finances of the Government’s support for failing banks and financial institutions and of the deepening economic recession. Those who rely on public services should not be made to pay the price of a crisis caused by bankers.

Congress resolves to:

i)     oppose cuts in public services and pensions

ii)    seek union engagement in efficiency programmes

iii)   promote the involvement of staff and unions in improving services, and the case of in-house service transformation and public-public shared services

iv)   present an alternative to the economic consensus that involves fair and increased taxation, the wider benefits of public services to the economy and society and makes the case that current provision is affordable and the best route out of recession

v)    pursue a payback tax on profits above a certain level on financial institutions that have benefited from public money.

Congress believes that public services are at the heart of a democratic society and are essential to supporting individuals and families, developing strong and cohesive communities, and ensuring social and economic justice for all.

Congress notes the record levels of applications for entry to courses of further and higher education as a consequence of rising unemployment and believes that enhanced education and training provision across all sectors, but especially in further and higher education, will provide both short- and medium-term social and economic benefit and equip the workforce for the economic recovery when it comes. Further, the hard-hit construction industry should be deployed in remedying the parlous condition of much of the country’s educational estate.

Congress asserts that public services are vital to the nation’s economy and must be defended against privatisation, which puts profits before people and which has been a key factor in the current global economic recession. Furthermore, Congress deplores the monumental waste of public money, loss of economies of scale and increased risk for financial impropriety caused by policies of marketisation, financial devolution and outsourcing of public services.

Congress believes that panic measures to cut public spending would deepen a crisis caused by unrestrained free market policies. Congress believes that investment in public services is essential at this time. Existing cuts must be reversed including the £11bn cuts in the current spending round. Instead, there should be a renewed commitment by all to investment in infrastructure and the future provision of publicly financed, efficient, high quality public services, and particularly, enhanced public investment in services for people. Funding must be found by enforcing tax compliance to close the annual tax gap estimated at between £50bn and £200bn.

Congress rejects the divisions that are being encouraged by the media and politicians between private and public sector workers in order to justify cuts and condemns those who seek to use the economic recession as an excuse to promulgate an anti-public services agenda, to privatise public services, and to attack public service workers’ jobs, pay and pensions on the grounds that there should be ‘equity of misery.’

Congress believes the next general election will be on increased investment in public services, privatisation and the welfare state.

Congress notes that in 2005 the willingness of public sector unions to take joint action successfully defended the pension age of millions of workers.

Congress instructs the General Council, working through the Public Services Liaison Group (PSLG) and Public Services Forum (PSF) as appropriate, to develop a new integrated campaign based on:

a)    protection of public services and an end to privatisation

b)    public investment in high quality and fully funded public services as a priority at the next general election

c)    promoting the case for high quality public service provision

d)    supporting investment in improving the country’s infrastructure

e)    ending the systematic tax evasion by corporations and individuals and the current tax privileges of the wealthy

f)     supporting affiliates in opposing wage cuts, rejecting any public sector pay freeze and protecting pensions.

g)    demanding government action, including nationalisation, to protect and create jobs

h)    defending defined benefit pension schemes, including those in the public sector

i)     opposing the creation of any two-tier workforce, de-skilling and downgrading of existing key public services

j)     campaigning for an expansion in public sector education and training provision.

Congress further instructs the General Council to support, co-ordinate and encourage joint union action, including industrial action, in pursuit of these objectives.

Mover:  UNISON
Seconder:  Public and Commercial Services Union

Supporters:  NASUWT, Educational Institute of Scotland, Prison Officers’ Association