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