27 September 2002
Public sector union Unison, with 1.3 million members, will seek wider support for its motion, which demands an independent inquiry into the controversial scheme during the moratorium.
An increasing number of influential Labour Party members, including former deputy leader Roy Hattersley, are likely to back the motion in Blackpool. Hattersley, writing in Public Finance this week, described the government's use of the PFI as 'a bewildering extravagance'.
But Labour ministers are expected to hit back. A party spokesman said ministers, including the prime minister, will tell delegates that 'Labour is delivering on its key election pledge to put schools and hospitals at the top of its agenda' through mixed provision.
Michael Terry, industrial relations expert at Warwick Business School, told Public Finance that, should Unison's motion be passed, Labour's decision-makers were 'highly unlikely' to initiate an inquiry.
'There's a strong chance that the motion will be carried. But will it engender a significant rethink by the government? The answer is no.'
Unison leader Dave Prentis said the PFI failed to meet independent value-for-money tests, undermined the quality of services and created a 'two-tier workforce' by differentiating workers' terms and conditions when they are transferred to the private sector. 'Contrary to the view expressed by some politicians, there are viable alternatives,' he claimed.
Opposition to PFI has gained momentum in recent weeks, following the formal adoption of an 'anti' stance by the previously moderate Trades Union Congress.
This week, the GMB union went a step further and began balloting 160,000 of its members at private companies on potential strike action over the 'two-tier workforce'.
But Terry warned that the union-led opposition to privatisation in Blackpool will again be overshadowed by the government's increasing
pre-occupation with potential military conflict in Iraq. 'It's another get-out clause, if you like.'
Several union leaders, including John Edmonds of the GMB, are still smarting over Blair's escape from a mauling at the hands of the unions at the recent TUC conference, where Iraq dominated the prime minister's speech.
PFsep2002
