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CCT WINNERS DOMINATED BY MULTINATIONALS CLAIMS UNISON

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Local government and health contracts are increasingly concentrated in the hands of a few multinational companies, ...
Local government and health contracts are increasingly concentrated in the hands of a few multinational companies, according to figures released today by Unison.

The union says the statistics 'expose the myth' that increased competition in the public sector leads to greater efficiency and economy.

Unison says that for each service that has been the subject of market testing the picture has been the same. Initially a relatively large number of companies express an interest in submitting a tender, but few actually submit one and of the companies that are successful a number pull out and others go bankrupt.

This, says the union, clears the way for the remaining companies to maximise their profits by reducing the competition through take-overs, mergers and collusion in pricing.

Of current local government contracts in building cleaning, Unison claims that out of 138 private contracts, four companies have control of 39%;

In grounds maintenance out of 131 contracts five companies control 66%;

Of 33 school meals contracts three companies control 78%;

In vehicle maintenance out of 20 contracts let to the private sector three companies have 50%;

In refuse collection 112 private contracts are dominated by four companies who control 52% and

Of 53 sports and leisure contracts three companies run 41%.

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