Enable and facilitate competitive tendering for services that government provides a monopoly on at present

Reduce the amount the government does directly and instead invite tenders from businesses to provide those services in OPEN competition (i.e. no "commercial confidentiality") with other potential service providers. e.g. rather than require the DOI to maintain the TT course to race track conditions (for instance), invite businesses to bid for the right to provide that service. Contracts with relevant and measurable performance quality standards along with penalties for failure should ensure the tax payer does not pay and get shafted. Corporatise and break up the DOI as a stepping stone to full privatisation of units that will genuinely compete with each other for contracts. The asset in question (in this case the highways) remain the property of the taxpayer, but the maintenance, cleaning, marking etc is OUTSOURCED. So long as there is effective competition between service providers and measurable quality standards that the providers can be held to there can be little risk of the taxpayer getting shafted with ever increasing bills while getting lower and lower standards of service.

Beyond the TT course, contracts for the maintenance of other road networks must be open for businesses to competitively bid on.

Beyond road networks apply this model to the bus network, the running of taxpayer owned leisure and tourist facilities, the airport, the forests etc... look at ALL services that are being provided by government.

Why the contribution is important

Monopoly provision of services does not encourage efficiency or innovation, since there is no natural impetus to reduce costs, nor to provide better quality services. Genine competition between providers allows the customer (in this case the government department inviting tendors) to seek out the best value for money in full glare of public view (hence the no commerical confidentiality requirement). The assets remain the property of the taxpayer so the utility to the pubic is not lost.

by OldSailor on April 09, 2017 at 06:54PM

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