Understanding the Public Services Industy

Public Services Industry Review
What more can the UK government do?
5.18 There are many examples of cases where the UK government has used the PSI to
achieve tangible benefits for citizens and taxpayers. However at present these success
stories are rarely advertised and, indeed, it is frequently the situations where things
have not worked that attract most publicity. Spreading the message about the potential
gains from using the private and third sectors to supply public services is an important
lever for opening up this market internationally. As detailed in Section 4, the UK also
has a wealth of experience about how - and how not - to engage the PSI in order to
achieve successful outcomes; this should be shared with other governments intending
to use this approach.
5.19 The importance of championing the benefits of using the PSI is emphasised in
responses to the call for evidence:
‘The most critical role the government can fulfil in improving access to overseas
markets is to compile and publish the metrics that demonstrate the value for money
delivered by the private sector through their involvement and commitment to
the PSI. Genuine reliable demonstrations of successful service delivery may well
influence other countries to change their procurement models and test private sector
involvement in public service delivery particularly as their budgets come under
increasing pressure in the current economic climate’. (VT Group)
‘The government could do much more to promote the use of the private sector in the
public services industry and articulate the benefits UK companies have brought to
improving services in this country to the international community’. (Babcock)
5.20 The assistance provided by the government to UK firms operating abroad was
considered to be of a high quality but, unsurprisingly, PSI firms felt that more
could be done in terms of proactive engagement and at a higher level. In particular,
business would welcome additional support from UKTI in providing information on
developments in overseas markets and facilitating meetings with the relevant foreign
officials.
‘BERR and UK Trade and Investment have an important role to play in providing
economic and political intelligence on international markets. [Company name
removed] has experienced excellent advise and support from UKTI and the Foreign
and Commonwealth Office in respect of its off shore business in India’. (Anonymous)
5.21 UKTI does promote certain aspects of the PSI abroad. However, the focus is mostly
on a sectoral basis covering only parts of the PSI - such as construction or PFI – rather
than championing it in a systematic way. Given the distinctive nature of PSI markets
and the importance of engaging overseas governments, a more coordinated approach
is needed.
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