Understanding the Public Services Industy

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Public Services Industry Review • • • • communicating the successes of the UK PSI to overseas markets – there is strong evidence that overseas jurisdictions look to the UK for leadership in the management of public services and also look to adopt market models similar to those already developed in the UK. PFI/PPP is one such example – a number of UK companies have won overseas business through the adoption of infrastructure policies heavily influenced by a British model; compiling and publishing metrics that demonstrate the value for money delivered by the private and third sectors through their involvement and commitment to the PSI; working more closely with industry to improve skills and training; and senior ministers and senior public servants could collaborate with UK PSI companies in overseas trade missions promoting the public service industry. Q9. What are the key differences in market conditions outside of the UK? What could the UK introduce from these countries and what might be best to avoid? It was broadly felt the UK leads the world in the development of the PSI. The UK has applied Compulsory Competitive Tendering (CCT), PFI and PPP models more fully that any other country for the delivery of public services. It was suggested that if the government was to develop new PPP models that have been tried and tested abroad, it should adopt partnership models that have been successful at sharing risk and creating strong links between service design and delivery. However, there may be skills and competencies in other markets which differ and culturally might not be acceptable in the UK. It was also suggested that Commercial Directorates could be set up within central government departments and large public bodies to ensure procurement and delivery is joined up. Other countries such as South Africa, Germany, Ireland and Italy have already established such units. Q10. What can the government do to promote inward investment in the PSI in the UK? In the majority of cases respondents said the UK PSI market is already in a good position, with adequate competition from domestic and foreign companies. It has a strong record of attracting foreign companies investing in assets, technology, training and development. Respondents said that the conditions for attracting UK investment are essentially the same as attracting foreign investment, so much of the earlier responses are relevant here. Respondents believed there was room for the government to improve particular areas such as: reducing bureaucracy; reducing the cost and complexity of the sale and having a tax system that allows firms to be competitive and innovative. 82
Public Services Industry Review Annex C: Public Services Industry – Glossary 4ps AC BERR BSF CBI CCT Commissioning Competitive Dialogue Competitive Neutrality CSR DCLG DCSF DIUS DH DWP EU Procurement Legislation Framework Agreement FDI GPS HMT HMRC Incentivisation Payments ITT NAO ODPM Local Government’s Project Delivery specialist Audit Commission Department for Business Enterprise & Regulatory Reform. Building Schools for the Future – A programme that will see every state secondary school in England – around 3,500 in total – rebuilt or remodeled over the lifetime of the programme. Confederation of British Industry. Compulsory Competitive Tendering – Procurement tool introduced to bring greater efficiency to local government and professional services through the use of competition. See Section 4 for more detail. The process which defines strategic outcomes and seeks to create relationships to ensure these outcomes are delivered. Competitive Dialogue must be followed for all contracts which are considered to be particularly complex. See Box 4.5 for more detail. Competition should be open and fair in that there should be a level playing field between different classes of providers – public, private and non-profit. Comprehensive Spending Review. Department for Communities & Local Government. Department for Children Schools and Families. Department for Innovation Universities and Skills. Department for Health. Department for Work & Pensions. The rules that specify procedures for advertising & awarding contracts depending on the type of contract which contracting authorities must comply with. An overarching document that is signed between the supplier/ service provider and the contracting authority. Foreign Direct Investment. Government Procurement Service. Her Majesty’s Treasury. Her Majesty’s Revenue & Customs. The method of payments linked to supplier performance. Invitation to Tender. National Audit Office. Office of the Deputy Prime Minister (roles largely now carried out by DCLG) 83
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