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I’ve been reading about a ridiculous plan to privatise the operation of Dover Harbour (click here and here). It’s being dressed up as a plan for a ‘people’s port’, when really it amounts to selling off the family silver for a quick buck.
Dover is a vital part of Britain’s economy and transport infrastructure. It is the UK and the world’s busiest passenger ferry port – with 9 berths, 4 services, 15 ferries and up to 65 sailings each day – and the first place where most people who visit by sea come to when they arrive. Dover Harbour has been run by the Dover Harbour Board since 1606, and currently handles over £80 billion worth of trade each year. Of course Dover also has a historic place in British History, and indeed in the national psyche- think Vera Lynn, Bluebirds etc – making this an even more emotive issue.
The standard old conservative argument has been trotted out about how the port cannot be competitive, etc etc, and being a private business will allow it to borrow money. Rubbish. The state of the railways and local bus companies since privatisation should show anyone that privatisation does not mean investment, it means profits for shareholders and destruction of an industry. Look at other industries such as Steel, Coal, Shipbuilding – communities decimated in the name of removing a line from the balance books.
It really is shocking the extent to which the current Government is willing to go to hive off the public sector. Is it any coincidence that the kind of wealthy businessmen who are likely to invest in privatisation stand to make a nice tidy profit? I cannot help but think that moves like this are ideologically driven, to reduce the state as much as possible, give wealthy investors an opportunity to double their money, and to hell with the consequences. The budget crisis has given the Government a gilt-edged excuse to finish what Thatcher started.
Ferry ports CAN and DO work in public ownership. My local ferry port, here in Portsmouth, operates under council control, and makes a tidy profit each year. In fact, the profit goes towards keeping Portsmouth’s council tax bill relatively low. So why not Dover, which is bigger and busier? If it needs investment, it cannot be anywhere near the sums that were somehow found for propping up the banks only a couple of years ago, and the kind of profits those banks are now making at our expense.
Not only does privatisation mean profit, job losses and poor services, it also means a lack of control for society over crucial functions. Look at how the railway and bus companies have operated in recent years – with no regard at all for passengers, and there is very little the Government – national or local – can do about it. Imagine if a new operating company decided to cut the number of sailings, under the pretext of saving money, much as bus companies cut services? Or put up the charges to the ferry companies? How many people are directly or indirectly employed in Dover thanks to the port?
In a similar manner, privatising the Royal Fleet Auxiliary would mean that any new private owners would be able to do whatever they liked, no doubt at a cost to the country’s defence capability, especially that of the Royal Navy.