Time to transform failing quangos and nationalised industries

2 months ago 30

Public sector monopoly provided free at point of use by public sector   e.g. Roadspace Public sector provision free at the point of use with some competition between public sector providers – hospitals, schools Public sector monopolies provided free at point of use by private sector contractors  e.g. domestic rubbish collection Private sector monopolies provided free…

  1. Public sector monopoly provided free at point of use by public sector   e.g. Roadspace
  2. Public sector provision free at the point of use with some competition between public sector providers – hospitals, schools
  3. Public sector monopolies provided free at point of use by private sector contractors  e.g. domestic rubbish collection
  4. Private sector monopolies provided free at the point of use  e.g. free local newspapers, certain types of internet service, ITV
  5. Monopoly activities provided by the public sector but paid for by users – e.g. Planning and Building Regulation services, passport issue
  6. Competitive services provided by the  private sector but paid for by the state e.g. care homes for people without capital
  7. Competitive services provided by the state but paid for by users – municipal or state trading – e.g. public leisure facilities
  8. Competitive services paid for by users and provided by private sector – this is most public service in a free enterprise economy – everything from food to most  professional services

I set out these eight  hybrids to organise the provision of services in Third Way Which Way when the Blair government was seeking a third way between competitive private sector activities and monopoly state activities. They are relevant again. The government, short of cash, needs to explore more private finance  for state services where people already  pay user charges for the service, as with rail, Council leisure services, forestry, media, energy. Where performance is bad it needs to look at ways competition can provide a stimulus to higher quality and better value for money.


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