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Media Releases
2007

20 November
2007

Improving Efficiency of Scotland's Public Services

The David Hume Institute, along with leading UK law firm Shepherd and Wedderburn, is hosting a seminar on 22 November on improving productivity in Scotland's public services.

The seminar will be chaired by the Auditor General Bob Black, and will present the results of research commissioned by the David Hume Institute and carried out by Jo Armstrong, the highly respected independent economist. In her presentation, Jo Armstrong will show how the introduction of appropriate competitive pressures could improve the delivery of Scotland's public services. The presentation will be followed by a panel session and a full period of questions and answers.

The research draws on the recent experience of the Scottish water sector, where the introduction of effective economic regulation and management incentives has greatly benefited Scotland's public service users. The research applies lessons learned from the water industry to three quite disparate public services - namely social housing, personal care and waste management. It demonstrates that common themes are to be found in all three which point the way to improving the efficiency of delivery of public services more generally.  An interim report on the research, including results of the three case studies, will be published on Thursday, 22 November. 

To underscore the importance of efficient delivery of public services, the research also notes that, if the Scottish Government were to achieve equivalent savings (to those achieved in Scottish Water) across its total discretionary budget (35% over four years), then up to £1.75 billion could be released.  With such resources, Scotland could benefit from an additional 1,000 police on the beat and 1,000 teachers in the classroom, along with a reduction in both the average Band D council tax charge and non domestic rates of roughly 40%, at no extra cost to Scotland’s consumers.

Jeremy Peat, Director of the David Hume Institute commented: “The David Hume Institute is delighted with the results of this research, which evolved from a seminar and paper last year by Sir Ian Byatt, Chair of the Water Industry Commission for Scotland, pointing to potentially wide applications of the lessons learned in the water sector.  Jo Armstrong has delivered a very thought-provoking report. Her work has been supported by a strong steering group representing a range of interested parties, and she has consulted widely across the sectors examined. I believe that this research merits careful consideration, especially in the context of the tight Government funding climate that pertains in Scotland at this time. We look forward to a stimulating debate at the seminar and further feedback after the report has been published.”

Gordon Downie, a partner at Shepherd and Wedderburn who recently advised the Water Industry Commission for Scotland on the introduction of a framework for retail competition in the non-household water and sewage market commented:  “We are delighted to be involved with this seminar. Scotland's public services currently face a huge challenge, as growth in funding slows while demand continues to increase.  It is time to look at new ways of delivering public services in Scotland and this research demonstrates that the experience of Scottish Water can be replicated across a range of public sectors.”


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