Consultation launched on Scope of Government - Chief Secretary's Office Press Release

CHIEF Minister Allan Bell MHK has today (Tuesday August 28, 2012) launched a public consultation on an independent report’s proposals to narrow the range of services that are delivered directly by Government.

The revised Scope of Government report concludes that some services could be provided more efficiently via alternative structures such as Government-owned companies or contracting out. It also recommends the transfer of certain functions to a reformed local authority system.

Produced by an independent review team at the request of the Chief Minister, the report was published in May this year. The formal consultation starting today, which runs until October 5, follows a preliminary period of public discussion of its recommendations and an initial debate in Tynwald.

In his foreword to the consultation document the Chief Minister writes:

‘Government has a duty to consider if there are different, more efficient and affordable ways of providing certain services that would help us to focus taxpayer funding on the core areas that need it most.’ Noting that the report proposes a number of ‘Alternative Means of Service Delivery. None of these options offers an easy solution. Devolving services away from central Government into new structures would raise issues in relation to staffing, impact on service users, and the maintenance of public accountability that all require careful consideration. The status quo is not sustainable, however. The question is not whether Government should change but how it should change, to achieve a practical solution that works in the particular circumstances of our community. The Council of Ministers still has an open mind on the answer to that question and we would very much welcome your views on the best way forward for our Island.’

The consultation is available online here and hard copies can be supplied by contacting the Chief Secretary’s Office.

Notes

The ‘Alternative Means of Service Delivery’ (AMSD) proposed in the revised Scope of Government report include:

Privatisation

• Right and/or asset transferred to private ownership by Government
• Asset transferred with an understanding that new owners will continue to provide service to, or on terms directly controlled by, and regulated by Government
• Government can retain ownership of ‘golden share’ in public interest

Corporatisation

• Company incorporated under Companies Acts which is beneficially owned by Government
• Commercial operation, but Government may provide subvention for non-viable activities
• Assets are transferred into the ownership of the wholly owned company

Contracting Out

• Service provided to Government by a third party under contract
• hird party contractor can be private sector contractor, voluntary, charity or third sector contractor or a Public Service Mutual Organisation

Public Private Partnerships

• Joint collaborative arrangement between public and private sector, to deliver services

Public Social Partnerships

• A strategic partnering arrangement which involved third sector in the design and commissioning of public services
• Third sector organisations work with public sector purchasers to design a service
• Consortium of public and third sector organisations conduct a short-term pilot to refine service delivery parameters
• Service developed to maximize community benefit before being competitively tendered

Executive Agencies

• Developed in the United Kingdom, the Executive Agency model works inside Government to separate strategic political direction of a service from its daily management, with the aim of improving efficiency and effectiveness

The revised Scope Report suggests the following options for consideration:

Bus Service Corporatise/Privatise

National Sports Centre Contract out/Corporatise

Tourism Events Contract out

Villa Marina/Gaiety Theatre Contract out/Corporatise/ Public Private Partnership

Airport Corporatise/Contract Out

Harbours Corporatise

Operations Division of DOI Contract Out

Quarries Contract Out

Commercial Forestry Corporatise/Contract Out

Fish Hatchery Contract Out

Water and Sewerage Authority Corporatise/Privatise/Contract Out

Manx Electricity Authority Corporatise

Isle of Man Post Office Corporatise

Residential and Day Care Services Contract out/Privatise

Home Care Services Contract Out

Prison Executive Agency

Heritage Railways Public Social Partnership

Safeguarding Children Public Social Partnership

Employment/Training Support/Post-Full Time Education Corporatise/Privatise/Contract Out/Mutual Local Authorities

The report says Government could devolve some of its functions to local government, but not until the local authority system has been reformed to make it more effective. Such functions could include:

• Administration of public sector housing presently owned by Department of Social Care
• Building Regulations
• Town and Country Planning
• Environmental Health matters (other than local authorities own activities, where regulation should remain with central Government)
• Pest control
• Street cleaning
• Car parks and parking control
• Waste management and refuse disposal

Responding to the Consultation

You can use any of the methods below to let us know your views on the Scope of Government:

Post Scope of Government Consultation, Chief Secretary’s Office, Government Office, Bucks Road, Douglas, Isle of Man, IM1 3PN

Emailscope@gov.im

Twitter@IOMGovernment #iomscope

Onlinehttps://www.surveymonkey.com/s/ScopeofGov

Please do not hesitate to contact us should you have any queries regarding the consultation process; either by one of the methods above or by telephone on 685711. Comments should be submitted by 5pm on Friday 5th October 2012.