News from the CBI Conference

28 Nov 02
CBI focuses on needs of 'Joe Public' Putting the consumer first was the focus of a new approach to public-private partnerships enshrined in the Confederation of British Industry's much-heralded 'statement of intent' (SOI) launched at its annual

29 November 2002

CBI focuses on needs of 'Joe Public'

Putting the consumer first was the focus of a new approach to public-private partnerships enshrined in the Confederation of British Industry's much-heralded 'statement of intent' (SOI) launched at its annual conference in Manchester this week.

Rod Aldridge, chair of outsourcing firm Capita and head of the CBI's new public services committee, said the private sector was attempting to bridge the divide caused by 'ill-informed arguments' that have been made for and against mixed provision since it emerged 20 years ago.

Launching the SOI on November 26, he said it would better communicate businesses' objectives and obligations under PPP and PFI contracts and recognise that the public services climate had changed.

'It puts the consumer at the heart of the debate. It's not an unfair question to ask why this "new focus" has taken so long but, let's be honest, Joe Public has always been the focus of the mixed provision of services,' Aldridge told Public Finance.

'The point is now, more than ever, that all parties involved need to have a mature debate, ignoring past divisions and focusing on the important thing – delivering quality services to consumers.'

Aldridge added it was time to wipe the slate clean and recognise that private firms have a valuable contribution to make.

The quality of public services debate, CBI chief Digby Jones told delegates, 'has frankly been appalling'.

Under the SOI, the CBI promises to engage the government, public 'and wider public sector' as part of a reform process.

Trade unions, represented in Manchester by Unison general secretary Dave Prentis, cautiously welcomed CBI claims that the private sector would be able to 'demonstrate its ability to take on the tasks assigned to it, with a clear public service ethos and good employment practices'.

Health Secretary Alan Milburn said the statement was 'as relevant for health as it was for the education and transport sectors'. But Prentis warned Milburn that partnership would work for unions only if it meant an end to Labour's 'carrots and Semtex' approach to targets and league tables.


Health PFI projects 'need good managers'

Health Secretary Alan Milburn has admitted that the public sector lacks the expertise necessary to negotiate big Private Finance Initiative deals.

Speaking at the CBI conference, Milburn acknowledged that experienced public sector staff were often snapped up by the private sector or brought into the civil service.

However, he said this would not halt his planned expansion of health PFI projects. His department hopes to overcome these difficulties by encouraging skilled NHS project managers to move between trusts. 'I do want to get a lot of hospitals built quickly,' he added.


Clarke promises more vocational skills

Education Secretary Charles Clarke this week took on the challenge of improving the vocational skills base of Britain's workforce by promising employers more funding for training and hinting at changes to the national curriculum.

Clarke told the CBI conference that Labour was committed to £1.6bn of extra funding over three years for vocational skills and a minor reorganisation of his department to try to cut red tape.

Clarke promised business leaders that he would tackle the country's skills shortage 'head on', and praised efforts made by the private sector to remedy the problem.

The government and businesses spend around £23bn a year on developing workforce skills, but the UK lags behind skills leaders such as Germany and France. Four out of five jobs in the UK, the CBI said, require skills above A-level, but only a third of Britons have these, compared with three-quarters of Germans.

'Employers contribute the lion's share of [those] resources,' Clarke said. 'For too long we have ignored the voice of business and failed to look at the problem through their eyes.'

PFnov2002

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