BusinessCompany NewsPPPs win favour among FDs

PPPs win favour among FDs

Given the problems with the London Underground PPP, should the private sector get involved in public services?

Link: No plans to rethink NATS part privatisation

Amey may be struggling to come to terms with the implications of public/private partnerships on the London Underground, but many finance directors still think private investment is the only way forward for many public services.

Of the FDs polled for this week’s Accountancy Age/Reed Accountancy Personnel Big Question, 46% think the private sector should still be involved in providing public infrastructure services, while only 31% believe this responsibility should remain with the government.

‘The private sector demonstrates far more commercial expertise than the public sector, which would be an advantage in such projects,’ said one FD. David Anderson, FD of Geo Adams Products, said that the current problems relating to partnership deals had not been caused by the private sector.

Even some of those against private sector involvement in traditional public sector areas do not cite the current issues as the reason behind this.

‘The government is not a trustworthy business partner,’ said one FD.

‘It pulled the rug from under Railtrack and will do the same again.’

Bart Baljon, FD at VIP, said a lack of government spending since the Second World War meant that too much money was needed for PPPs to be effective.

‘Private shareholders wouldn’t be able to receive a decent return on their investment,’ he said.

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

4m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

8m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

1y Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

1y Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

1y Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

1y Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

1y Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

1y Emma Smith, Managing Editor