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Time for change, says KPMG

Key business figures in the region have spoken out in support of a major report published today which calls for the sweeping reforms in the way the public sector engages with private firms.

KPMG, one of the largest financial organisations in the country, has called for public service delivery to be redefined and transformed and for more involvement of private companies in public service delivery.

Among the recommendations of the report, which is based on in-depth interviews with public sector leaders in six countries, KPMG says private businesses could be used to speed up the recovery by handling public sector contracts.

It recommends “finding new sources of funding as well as involving the private sector in funding the delivery of public services in order to achieve public service transformation and to embark on the route to recovery.”

Alan Downey, head of public sector at KPMG, said: “Redesigning the role of the public sector will involve some devolution of responsibility from the Government to the individual. It will also require a fundamental shift in the collective mindset of the electorate.”

Richard Elphick, regional chairman of the Institute of Directors and director of Newcastle-based architects Space, said he agreed with KPMG, although warned that clear distinctions needed to be made between certain public services.

He said: “There are undoubtedly savings that can be made through much greater efficiencies which should be possible through organic change.

“One solution, of course is to pass the work to the private sector but we must first establish the governance of such work otherwise we may find that we spend just as much on so called independent watchdogs to oversee any new independent management. The success of designing any new form of management is very much in the detail otherwise it could prove very counter-productive.”

Meanwhile Ross Smith – head of policy and research at the North East Chamber of Commerce – said: “North East businesses already play a vital role in helping deliver public services and it will be essential to tap into their innovative ideas to drive the reforms needed in the coming years.

“If we want that to happen, we need to see strategic leadership to make the North East the best region in the country for the public and private sectors to do business together, as NECC is calling for through its Buy North East campaign.”

More details of the KPMG report can be seen on its website www.kpmg.co.uk

This was posted in Bdaily's Members' News section by Ruth Mitchell .