The report published by the Institute for Public Policy Research (IPPR) states that PPP in the health and education sectors is not performing as well as elsewhere. But David Clements, managing director of WS Atkins Investments - a key PPP player - said it is too early to say whether or not PFIs will succeed in hospitals or schools.
In the report entitled Building Better Partnerships, the IPPR said PPP needed to be reformed if the government is to deliver better public services. Arguing that major changes in PPP policy are needed to ensure improvement to education, health, transport and local government services, it calls PFIs' records 'mixed', and says lessons should be learned before investing in PPP.
Peter Robson, chief economist at the IPPR, said: 'PFI seems to be offering significant gains in roads and prisons, but not in hospitals and schools.'
The 285-page report is the most comprehensive ever undertaken and emphasises that PPP should not be used as an emergency measure just because public cash-flow is low or services are not up to scratch.
Instead, the IPPR, which calls itself Britain's leading centre-left think tank, says partnerships should be used to ensure better value for money.
The report says government policy must be based on evidence, approached with caution, and be based on consent from the community it provides for.
It calls for employee safeguards, greater accountability and questions PPP plans for London Underground and air traffic control.It concludes: 'If PPPs are to be a significant feature of the public service landscape in 2010 then much has to change. The association between private or voluntary provision of public services and cost cutting will have to end.'
PFI is only one sort of PPP model and other more flexible types should also be looked at, which incorporate a package of services that best meet the needs of the local users the report states.
It also suggests that 'outcome' based partnerships where part of the payment is based on the benefits bought to citizens and user satisfaction, should be looked at. Profit sharing and joint-decision making should become the norm.
The IPPR has also called for an urgent review of TUPE, a move which has received support from Business Services Association director Norman Rose. He challenged companies to 'demonstrate cost containment though improved efficiency and not at the expense of our employees through reduced terms and conditions.'
Source
The Facilities Business
