Prime minister Tony Blair HAS said that 'no barriers' would get in the way of using private sector investment if it would help to improve public services.
In his speech to the Labour Party conference in Brighton he also warned, however, that the private sector should not make profits by simply cutting pay and conditions.

Blair promised to put paid to the chronic under-investment in public services seen in recent decades and was adamant about structural reform. This would include: a national framework of accountability and inspection; minimum standards of delivery; 'far greater flexibility in the terms and conditions of employment of public servants' and choice for the user of public services.

He defended the private sector's role as a partner supporting the reform, but said: 'Let's get one thing clear. Nobody is talking about privatising the NHS or schools.

Stephen Byers, secretary for Transport, Local Government and the Regions promised a 'best value' review. He said he would address union concerns that the reforms are stacked in favour of privatisation by ensuring a level playing field for in-house bids to run services.

He also offered legislation giving greater freedom for the public sector to borrow money against its own assets, as an alternative to looking to the private sector.

Although public sector union, Unison reacted positively to the party's commitment on wages and conditions, there is still apprehension on the issue.

Source

The Facilities Business