At the cost of sounding unnecessarily incendiary the talent appears to be in the private consulting sector or at least that is the impression given – you want to improve your services and reduce costs as a local authority so you ask the private sector to come in and advise. You don’t ask another public body; arguably the skills are not there.
The private sector have gained considerable knowledge and expertise of public service work over many years and are well placed at a time like now to capitalise on the potential contracts that will flow (see article). Deborah Orr’s reflections on public debt and how the opportunity to review public services is also worth considering. Whilst people may fear the cuts it may help expose inefficiencies that may rightly need addressing and maybe part of the reason why people have voted in a way that made this coalition government a reality.
The private consulting companies are coming in to ask the fundamental questions that the public sector should have been asking itself long before any financial collapse. Is it not a key sign of the poor culture of public services such as those delivered via local government that apparently no such fundamental root and branch analysis has ever taken place or taken place on a consistent basis? And this maybe goes to the heart of the problem – could many parts of the public sector be depicted as a sick patient protected over years and years, imagining itself into a state of ‘improvement’ through audits and reviews largely of its own making. Is this crisis already exposing with the assistance of private consultants the excessive ‘fat’ of public agencies? Is this not in itself shameful?
If as I suspect many (if not publicly but secretly) are grateful for this opportunity to do some clearing out maybe it’s not the cuts themselves that are the concern but how things will end up looking. Is it as some or many suspect that the private sector will benefit greatly from what ends up happening or will social enterprises, mutuals and smaller localised initiatives have a fair share of the cake. Experience from the externalising of leisure centres that started to take place in the 1990s suggests that eventually the market consolidates into a dozen or less key players who swallow up smaller rivals. Will social or local enterprises really emerge to challenge the bigger private (consulting) firms? Recently Tridos bank announced that a £3 million social investment fund created to make equity investments in social enterprises was unable to fund enough organisations which met the qualifying criteria. It made only one investment in two years.
Have years and years of being looked after by the state in jobs that paid relatively well and which were not so demanding taken the edge off whole swathes of public sector staff. I was recently talking with someone in another authority about the opportunities to form an enterprise and deliver their service through this route but got the distinct impression that whilst this sounded exactly what they would have liked to do it was the risk, the lack of know how and lack of support that would ensure that they would stick around in the public sector for as long as possible despite the unhappiness they felt for how mediocre things were. They were going to stick around maybe in the hope that some form of miracle would happen or at worst they would at least be able to claim the relatively good salary and terms/conditions in exchange for an unsatisfying job. How many more public servants, particularly in local government are like this?
It appears that this time the crisis won’t allow any form of status quo to remain. And whilst the coalition may talk about localism and the emergence of mutuals and social enterprises I think they and others maybe disappointed in the short term. It is very likely as the references above suggest that the real winners at this stage will be the private companies and that maybe at some later stage as the market matures we may see the emergence of new forms of more democratic and equitable enterprises.
In the short term the future of local authorities is likely to be in the hands of a small elite of officers/members with more and more services shared, externalised or just stopped. The private sector will definitely benefit, its methodologies are what we are all going to be using far more now than before and it is likely that as the coalition envisages the public sector will contract and a reinvigorated private sector will emerge. On one level this maybe no bad thing if it disrupts inefficiencies in the current system. But what we all need to be wary of is that it does not itself become a new oppressive system.