Congressman McDermott Moderates Inquiry
Into Likely Effects of Privatization
For Immediate Release - July 1, 2003

Seattle, WA - Congressman Jim McDermott moderated a lively discussion today on the possible effects of contracting out federal jobs to private entities. The Bush Administration has signaled its determination to contract out up to one million federal jobs within the next two years. Here in Washington State, over 15,000 jobs could be converted to private contractor work. The inquiry was organized in cooperation with the American Federation of Government Employees to raise awareness and debate about this policy.

The jobs slated for outsourcing include functions currently performed by government agencies like the Social Security Administration, the U.S. Mint, the Veterans Administration, and the National Park Service.

"I am alarmed that important functions currently performed by our civil service are being outsourced to the private sector. What will the real cost to taxpayers be in terms of our safety and privacy?" asked Congressman McDermott. "Not only must people's personal, private information be protected, our region can't afford to lose a single liveable wage job."

Panelists gave testimony about the possible ramifications of privatization on food safety, social security, health care, personal privacy, and liveable wage jobs. Even the very currency that the government will use to pay the private companies who assume these formerly government functions may be affected by privatization. Plans are underway to outsource functions of the U.S. Mint.

Jay Johnson, former Director of the U.S. Mint, and a panelist, noted that "Privatization of the U.S. Mint would reflect exactly the opposite intent of our Founding Fathers and a great disservice to the American people. The U.S. Mint was established by the U.S. Constitution, formally created in 1792 and the Mint building was the first federal building established by the new government. I believe it would demean the very sovereignty of the United States to have its coinage made by private companies. The minting of U.S. coinage is, at it's very essence, a function of the government."

Greg Wolk, Staff Attorney for the Government Accountability Project, commented on increasingly privatized food inspection programs. "Greed is poisoning our food supply. Years ago, whistleblowing inspectors predicted massive food poisoning outbreaks because responsibility for inspection was being shifted from government inspectors to industry," Wolk stated. "Their predictions are coming true."

Also presenting testimony were representatives of the American Federation of Government Employees (AFGE). AFGE members are understandably concerned about the loss of federal jobs and the resulting impact on the economy. "In an era of economic hardship, it is fiscally irresponsible to replace appropriately compensated workers with poorly paid employees of private contractors," noted AFGE National President Bobby Harnage, Sr.

"It has become increasingly clear that the Bush Administration cares more about big business than about the average citizen. If this trend toward privatization continues, I worry that the privacy and safety of our citizens will be sold off to the lowest bidder," Congressman McDermott said. "Are executives the only ones who have the right to liveable wages and retirement benefits? What of the rights of hardworking, ordinary Americans? Do they now need to add to the list of their worries whether the food they eat is safe and whether their personal private information will be treated with the confidentiality it deserves?"

While it is unclear how much the planned privatization would cost taxpayers in dollars, McDermott noted the need for debate about the hidden costs of privatization.