Public sector 'wary of PPPs'

Leaders in the public sector are very wary of the impact that public private partnerships (PPPs) are likely to have and many doubt the possibility of success.

These are the findings of a new report by the Hay Group, entitled Relationship Counselling, which shows that six in ten public sector leaders believe the trend will harm the morale of staff, and half believe that key skills, abilities and knowledge present in the public sector will be lost.

Some of the major concerns included the potential damage to public service delivery, despite PPPs expected to double over the next three years.

Overall, 44 per cent of public sector leaders do not believe that PPPs will deliver value for money, while 37 per cent do not have confidence in the partnerships delivering key objectives.

However, according to Phil Kenmore, director of public sector consulting at Hay Group, PPPs provide a great opportunity for the public sector to offset dwindling budgets in the face of governmental spending cuts.

"A legacy of less successful partnerships has left public sector leaders with low expectations of working with private companies. However, partnerships can drive positive results when based on mutually agreed goals and aimed at achieving desirable outcomes for both parties," he explained.

Mr Kenmore added that, as lingering suspicion can often be a major barrier to successful collaboration, it is vital to establish common ground and identify differences from the very beginning.

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