Privatisation rewards cronies

Sir, - The narrative the Tories are developing with regards to the failure of Carillion involves profit margins being lower than excepted. This is simply untrue. When CEOs, along with accountants, regulators and governments are all implicated in such events, it is not the corruption of a single corporate entity that is at issue, but the profit system itself.

Carillion has exposed the politically sanctioned looting of social assets that has taken place over the last decades in Britain by a parasitic elite.

Some 12 years ago after the collapse of MG Rover the Government commissioned report criticised the asset stripping and selfenrichment of the clique of directors who ran the company.

Privatisation is a way that governments can reward cronies by giving them valuable public resources for a low price.

When the UK Government privatised the postal system, there were news reports that one postal property in London alone was worth the purchase price of the entire postal service.

The privatisation movement and the deregulation movement have turned out to be failures.

Privatisation becomes a way for well-connected private interests to loot both the public purse and the general welfare.

The directors of Carillion will walk-away with their large payouts and will suffer no consequences as a result of their incompetence. Alan Hinnrichs. 2 Gillespie Terrace, Dundee.