date: 10 July 2008

embargo: immediate

Julius Public Service review "misses point of public service"

Reacting to the Public Services Industry Review published today (Thursday) and conducted by Dr DeAnne Julius, TUC General Secretary Brendan Barber said:

'This report misses the point of public services. Much of what the public services do needs to be motivated by the desire to serve the public, not to make profits for shareholders. Yet the public service ethos is simply dismissed in this report.

'Citizens rightly expect universal service provision, but this cannot be guaranteed by a fragmented patchwork quilt of service providers. Voters expect public services to be accountable, but lawyer driven contracts with private companies stop effective democratic accountability.

'And even the economics are suspect. Companies have to make a profit, and face higher borrowing costs than the public sector. Well-managed public sector bodies are just as efficient, if not often better, than the private sector, and do not face these additional costs.

'The value for society created by public services cannot be measured using the same simple profit and loss accountancy used in the private sector, and needs to be based on a more sophisticated approach based on the wider needs of society, the satisfaction of service users and the views of local communities. Of course value for money is important, but it can be achieved within the public sector without sacrificing its inherent advantages.'

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Press release (400 words) issued 10 Jul 2008