Labour 'worse than Thatcher' claim

Labour can expect to be condemned as "worse than Margaret Thatcher" during the annual Wales TUC conference in Cardiff on Wednesday.

The party's plans to increase private sector involvement in the public services are set to come under intense fire from the unions.

This year's president, Derek Gregory, will accuse the government and the Welsh Assembly of "embracing privatisation with an enthusiasm that would embarrass Margaret Thatcher."

I understand that UNISON would prefer it if it wasn't done this way but in order to get this hospital when we did it was the only way to do it at that time

Dilys Gail, Hospital administrator

Since the election, Labour's plans to give private firms a greater role in schools and hospitals has set them on a collision course with their traditional allies in the unions.

At a summit meeting in Downing Street last month, the Prime Minister failed to reassure union leaders of the benefits.

In Chepstow Community Hospital in Monmouthshire - Wales's first hospital built in partnership with the private sector - newly-recruited porters and catering staff are on poorer pay and conditions than those formerly employed by the NHS.

Management have acknowledged that it has created inequalities - but without the private sector involvement the hospital simply would not have been built.

Opposition

Hospital Administrator Dilys Gail said: "I understand that Unison would prefer it if it wasn't done this way but in order to get this hospital when we did it was the only way to do it at that time."

But the unions contest the idea that closer links with the private sector will lead to an improvement in public services.

Derek Gregory from Unison said: "The costs are going to be two or three times more if you look at the Private Finance Initiative road scheme in Anglesey the cost there has been three times more.

The unions oppose private sector involvement

"That is not value for money and in many instances there has been no improvement in services what so ever."

Mr Gregory will tell union delegates that private management means a worse deal for workers and poorer services for the public.

He will urge the assembly not to follow Tony Blair's lead.

First Minister Rhodri Morgan will deliver his response when he addresses conference on Thursday.

He is expected to set out the Welsh Assembly Executive's position on the issue.

But with its purse strings tightly controlled by Westminster, the assembly may not have much option but to follow Tony Blair down the private road.