The Citizen as Consumer?Christopher Stone

Centre for Policy Development

CPD – Public Sector Research Programhttp://cpd.org.au

Citizen as consumer?• “Essentially, all models are wrong, but some

are useful.” - George E. P. Box• Relationship not just provider and consumer,

Public Service has different responsibilities…

… to Service Users• Christopher Stone (2012) Valuing skills: Why

Vocational Training MattersTAFE dominated Industry Training

% market share

% courses training for occupations in

shortageMining 97.8 0Information Media and Telecommunications

94.3 13

Electricity, Gas, Water and Waste Services

83.0 77

Construction 78.1 65RTO dominated Industry Training

% Market Share

% courses training for occupations in

shortageWholesale Trade 77.0 0Retail Trade 74.4 0Public Administration and Safety

67.8 0Administration and Support Services

62.9 0

… to Broader Public• Christopher Stone (2013) False Economies

Part 2: Doing less with less• Example: Public transport subsidies• Annual benefit to car drivers from trains was

calculated to be $923 million

… to Government

• Tim Roxburgh (2012) Public works need public sector skills: The lost lessons of the BER program

Ignore Certain Ideas• Example: Co-production• "Co-production means delivering

public services in an equal and reciprocal relationship between professionals, people using services, their families and their neighbours" - New Economics Foundation

Uncritically Accept Certain Ideas• Example: New Public Management• Arguably increased efficiency but lessened

protections against politicisation

Private Sector Primacy• Also an overly simple model• Yellow pages test• Conditions preventing well-functioning market:– non-competitive conditions– single buyer– alternative means of competition– principal-agent– de-skilling– loss of economies of scale

Side Note: 3 Kinds of Efficiency• Doing the most with the fewest resources– (technical efficiency)

• Doing the right kind of work– (allocative efficiency)

• Finding new ways to fill needs– (dynamic efficiency)

Big Society• Manifesto of UK PM David Cameron, based on

ideas of think tank director Phillip Blond

Big Society cuts in the UK• Social housing development• Religious and community services• Community development• Central and other health services• Family and children social services

Big Society cuts in Queensland• Housing, social welfare and other community services • Dept of Communities, Child Safety and Disability

Services• Child safety and social inclusion services• Alcohol reform programs• Financial crisis emergency relief• Community Development Program• Neighbourhood Centre, Youth at Risk and Youth

Support programs• Department of Health grants to NGOs

Customer focus• Better is: outwards more than upwards

Cross-Sector Learning

• Productivity Commission (2???) Public and Private Hospitals

Allowed to Fail• Non-innovative culture?• Adversity ≠ Innovation• Lack of resources most frequent problem• Most innovations come from middle

management or frontline staff• A case of supported public sector innovation