SA Labor anti-privatisation policy in doubt

by Bob Briton

South Australian Premier Mike Rann has dashed the hopes of many in the 
community that the once state run Modbury Hospital would be returned to 
full public control. Management of the hospital was given to private 
operator Healthscope by the previous state Liberal Government despite a 
strong protest campaign by residents of Adelaide's northern suburbs.

Representatives of the then Opposition, including the current Health 
Minister Lea Stevens, were strong in their condemnation of the outsourcing 
and vowed to return the hospital to full public control upon their 
election.

Much was said at the time of the privatisation about the legacy of Don 
Dunstan and the forward thinking of the reforming Labor Governments that 
built first rate facilities like Modbury Hospital. How times change.

Mike Rann ruled out the possibility of undoing this very unpopular piece of 
privatisation, claiming that you can't "unscramble the egg".

This was said in spite of suggestions from Healthscope sources that the 
company would be willing to hand the hospital's management back without 
penalty arising from any contracts.

The Public Service Association objected to the move, which follows hard on 
the heels of another decision not to resume responsibility for work in the 
court and jail sector presently carried out by private contractor Group 4.

It seems that little real understanding came from a meeting between PSA 
representatives, the Premier and the Minister responsible for public sector 
employment, Michael Wright on May 21.

Up to now the new Labor Government has remained within the boundaries of 
its pre-election promise not to allow any further privatisation.

However, it is still early days and bad signs are already visible.

At the meeting with PSA representatives Mike Rann confirmed that various 
"Private Public Partnership" models were being explored and that the 
Government had no objection in principle to private sector investment in 
the provision of public sector infrastructure.

Community and public sector workers are concerned over statements from 
State Treasurer Kevin Foley. While the Government recently offered an 
unexpectedly satisfactory Enterprise Bargaining Agreement to the State's 
teachers, the Treasurer spoke in parliament about the need for tough Budget 
decisions.

Mr Foley is claiming that the previous Liberal Government had left a $26 
million "black hole" that is threatening to blow out to a deficit of $152 
million by 2004-05.

Predictable, too, is the agreement of the new Government to pass on an 
automatic pay rise of $55 a week to the State's MPs. Members will now pull 
down $96,505 a year.

Mr Rann will receive $193,010 per annum while Speaker of the House Peter 
Lewis and opposition leader Rob Kerin will battle on with a salary of 
$168,880.

If sacrifices are required to fill the "black hole", would anyone care to 
bet that undertakings to public sector workers aren't jettisoned before the 
increase in salaries and perks of the state's MPs?

How about some money on the promise not to privatise any further public 
services?