Managing the risks of public - private partnerships in Scottish local government

Neil McGarvey, J. Hood

Research output: Contribution to journalArticle

34 Citations (Scopus)

Abstract

The involvement of the private sector in the financing and provision of public services has been placed at the core of the Labour government's second-term public sector reform agenda. PFI/PPP is a key policy instrument that is being used to transform public services. This article reviews the debates surrounding PFI/PPP before examining the implementation of the policy in Scottish local government. A key element of PFI/PPP is risk transfer. The research presented here suggests that scope exists for poor risk management decisions in Scottish local authorities. The degree of risk management involvement in the process to date is variable, and where it does exist its extent is frequently limited in scope. Local councils in Scotland appear ill-prepared to manage the risk transfer process inherent in PFI/PPP. Faced with commercial operators with substantial advantage over them in the arena of risk transfer negotiation, this increases the likelihood of PFI/PPP initiatives which offer poor value for money for Scottish local government.
LanguageEnglish
Pages21-35
Number of pages14
JournalPolicy Studies
Volume23
Issue number1
DOIs
Publication statusPublished - Mar 2002

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public private partnership
risk management
public service
management decision
private sector
public sector
labor
reform

Keywords

  • local government
  • Scotland
  • private sector
  • public services
  • finance
  • pfi
  • private finance initiative

Cite this

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Managing the risks of public - private partnerships in Scottish local government. / McGarvey, Neil; Hood, J.

In: Policy Studies, Vol. 23, No. 1, 03.2002, p. 21-35.

Research output: Contribution to journalArticle

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