Group 6A

Despite the orthodoxy that outsourcing produces financial savings, the outsourcing industry giants can offer little evidence to support their claims. The same is true of the Government departments who suggest outsourcing will generate savings but then can’t identify these supposed savings on any public accounts. We have had the scandal of re-financing in PFI deals and contractors seeking profits with supposed ‘contract variations’ but it is interesting that even in the area of insurance costs the public purse is left with hidden costs as contractors fail to take risks associated with public serviced delivery.

Globalization is nothing more than a trade war with production looking for a country cheaper to produce. And the war has expanded from trade to production, research, technology, techniques, jobs, payrolls -- the economy. Every nation struggles in the economy war to maintain and build its economy -- except the United States. In the Jan. 7 debate in New Hampshire, Gov. Jon Huntsman exclaimed: "We don't want to start a trade war." Japan started the trade war after World War II by closing its market, subsidizing its manufacture, selling its exports at cost, making up the profit in its closed market -- making Toyota No. 1 as General Motors went broke. In the same debate, Gov. Mitt Romney exclaimed: "We've got to stop China from stealing our jobs." China steals intellectual property -- not jobs. President Obama and Congress do the "stealing" by continuing the tax benefit to offshore jobs. Corporate America invests in China because there are no labor, safety or environmental concerns. If you make a profit, you pay no corporate tax unless profits are repatriated. Just reinvest for more profit. If not profitable, walk away with no legacy cost. Facing this kind of competition in globalization, the U.S. must develop an economy attractive to invest and protect the investment.

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