Sarah Green column

Jun 26 2007 By Sarah Green, The Journal

The UK's economic prosperity depends on both a competitive and dynamic economy and strong and effective public services.

Global competition requires continuous improvements from the key sectors in our economy which includes our public sector, particularly in the North-East where, due to its dominance, it is particularly important.

We are in times of rapid change. But increased international competition does not have to make public services unaffordable.

It does mean that to stand still is not an option. Globalisation and technology are changing the way we live, work, learn and consume. The standards we expect and the prices we are prepared to pay are increasingly informed by the power of the consumer.

There is no reason why we should accept that services our taxes pay for collectively are of a lower quality that those we can purchase individually.

Whatever model or delivery is used, quality of provision and equality of access should come hand in hand. Our public services cannot be museum pieces from the 1950s, 60s and 70s - they must change to provide the right helping hand for everyone who wants to succeed in the modern world.

And there are many examples of excellent services in the North-East but unfortunately there is no consistency across the region and within a few miles of an excellent service, a neighbouring business could struggle with very poor services, simply because of a local authority boundary.

Transformation and continuous improvement is essential for the success of public services and central to their mission in delivering universal, high quality services. Business - as a service user, a funder and a provider of services - has a vital contribution to make to this process.

The model we argue for is to use the best provider available.

Choice and personalisation must become the norm, and increasingly that will be achieved through consumer-led markets.

This is not a demand for privatisation. But once the government has decided which services are to be funded from the taxes we pay, it has a duty to ensure the best possible provider, regardless of which sector delivers them. These principles drive our campaign for reform. They are not dependent on any political outlook.

Sarah Green is director of the CBI in the North-East.