'Let business help run the public sector in Scotland'

Published on Monday 14 June 2010 22:42

RADICAL proposals to hand over the delivery of Scottish government and other public sector services to private companies were unveiled by business leaders yesterday.

Employers lobby group CBI Scotland said that due to the poor state of the country's finances it was time to look for other ways of providing essential services.

Chairwoman Linda Urquhart called for "open-minded" thinking from politicians as she presented her organisation's manifesto for next year's elections to the Scottish parliament.

The CBI, which represents the interests of 26,000 businesses in Scotland, wants to turn the government and other public agencies into "commissioners of services", outsourcing the delivery of services to the private and not-for-profit sectors.

She said the CBI was not calling for privatisation of the public sector, but for a different way of delivering services that may help public bodies maintain and improve services with fewer resources.

"We are not calling for privatisation of public sector services. What we have to offer is how to do more with less. Business has responded to the recession and the public sector is now having its own," she said.

"We can share our experiences and ask them what is the best way to deliver services."

She said it could mean wholesale handing over of functions such as hospital catering and publishing, or a mix of private and public provision.

The group also stresses that the priority of any government should be economic growth.

CBI Scotland is again calling for some form of privatisation of Scottish Water. It said Scottish Water costs taxpayers 150 million a year and said privatisation would "ease the strain on public finances".

Ms Urquhart said: "We want the parties to have an open mind and look at which options would deliver the best value."

CBI Scotland wants the next government to use the Calman-recommended tax responsibilities to keep Scotland internationally competitive and repeats its call for a mix of energy supplies, including nuclear.

The group also called for the M8 motorway between Baillieston to Newhouse to be upgraded and said the A9 should become a dual carriageway from Perth to Pitlochry.

It wants the planned railway for Glasgow Airport to be introduced – the plan was scrapped by the SNP administration – and called on politicians to find "innovative and even entrepreneurial" ways of funding major projects.

Among other demands are that public service managers are given incentives to deliver outsourcing, and an end to the policy of no compulsory redundancies. Planning also remains a key concern and the CBI is calling for "projects of significant employment and economic benefit" to be fast-tracked through the planning system.

It wants the Scottish Government to encourage more young people to study science and maths and for it to buy more innovative products and services from the private sector.

Iain McMillan, CBI Scotland director, said: "All of Scotland's political parties need to listen to the private sector and we call on them to do all they can to energise Scotland's economy."

A spokesman for the Scottish Government said: "The Calman financial proposals have been overtaken by events, and we will continue to press for full control of tax and spending with fiscal responsibility so that we can develop a growth strategy for Scotland and boost government revenues."

The spokesman said the SNP administration is "acting to deliver better value from our fixed budget to maximise investment in economic recovery and high quality public services".

Labour finance spokesman Andy Kerr said: "This report highlights the fact that Scotland is suffering more in the recession due to the Salmond slump.

"I agree with the CBI that the Scottish Government's single biggest priority should be to create jobs and get Scotland working again."

He added: "Over 2 billion in infrastructure projects have been lost along with 30,000 jobs in the building industry because of the SNP's ideological objection to private finance."

The Conservatives' enterprise spokesman, Gavin Brown, said: "There is much in this manifesto with which we agree."

And Liberal Democrat finance spokesman Jeremy Purvis said: "Much of the CBI contribution we welcome and we share common cause with much of their priorities."