25th March 2011, 02:14 PM
'The whole lot came out of a piecemeal privatised county council system with entities like Network for instance partially originating from post-privatised (previously state-owned) 'consultancies' and other private start-ups and amalgamations slotting in as they started to take advantage of the expanding market. It was a mess which is why there was little consensus and the precedent was set for the same mess we're in now.'
GPS - the first part of your statement regarding the origins of the units that operate as charities is broadly correct, but I'm not sute about the link to Network. My recollection is that this was established as a purely private sector company and still operates as such.
U01 - regarding your comments on what the charity units have done with their lovely profits, back when I worked for one of these units any 'operating surplus' as it was known (charities do not have 'profits') was ploughed back into the business by way of equipment, training etc (even wage increases in very good years). Charity laws restrict the amout of cash that can be held back as a reserve.
Having said above that charities cannot retain large cash reserves, surely one of the answers to the discussion about overdrafts and a company's expenditure being 25% more than income is that companies with cash reserves do not need to negotiate overdrafts, they are merely drawing down on reserves from the good times.
Beamo
GPS - the first part of your statement regarding the origins of the units that operate as charities is broadly correct, but I'm not sute about the link to Network. My recollection is that this was established as a purely private sector company and still operates as such.
U01 - regarding your comments on what the charity units have done with their lovely profits, back when I worked for one of these units any 'operating surplus' as it was known (charities do not have 'profits') was ploughed back into the business by way of equipment, training etc (even wage increases in very good years). Charity laws restrict the amout of cash that can be held back as a reserve.
Having said above that charities cannot retain large cash reserves, surely one of the answers to the discussion about overdrafts and a company's expenditure being 25% more than income is that companies with cash reserves do not need to negotiate overdrafts, they are merely drawing down on reserves from the good times.
Beamo