This website uses cookies to ensure you have the best experience. Learn more

Uk Post Office Essay

7765 words - 32 pages

ISSN 1608-7143 OECD JOURNAL ON BUDGETING Volume 5 – No. 3 © OECD 2006

The United Kingdom Private Finance Initiative: The Challenge of Allocating Risk
by David Corner∗

Since 1992, the United Kingdom has used a new type of public-private partnership for the delivery of public services: the Private Finance Initiative. In the design of PFI projects, the assessment of risk, and who is best able to manage it, needs to be carefully considered. Using data from government reports and case examples in the British public sector, this article explores aspects of procurement including, among other things, due diligence, public sector comparators, and the consequences of taking back the ...view middle of the document...

Under the Private Finance Initiative, private sector firms take on the responsibility for providing a public service including maintaining, enhancing or constructing the necessary infrastructure required. A total of 563 Private Finance Initiative contracts had been let by April 2003, with a total capital value of £35.5 billion (HM Treasury, 2002-3), and accounting for more than ten per cent of total investment in the UK public sector in 2003-4. This article explores the value for money of the Private Finance Initiative. It argues that there are powerful performance incentives in Private Finance Initiative contracts which at least potentially offer significant improved performance compared to past practices. It suggests that Private Finance Initiative contracts enable risks to be better estimated than in the past, but that the real success of Private Finance Initiative projects also depends on the degree to which risk is genuinely transferred from the public to the private sector and optimally shared. It also considers some of the difficulties this presents for accounting for Private Finance Initiative projects. It draws on the work of the United Kingdom National Audit Office and the House of Commons Committee of Public Accounts which have both examined and reported to the United Kingdom Parliament in detail on a number of individual Private Finance Initiative projects as well as other general issues arising from the initiative.1

2. Risk under conventional procurement in the public sector
Public service delivery is a risky business. The operation of any organisation, public or private, involves risk. But public service agencies operate across a diverse range of activities, markets and locations. Many of the projects they have responsibility for delivering are large or unique. They may not have precedents on which to draw to help guide implementation. And they are usually more exposed to political and reputational risk. Despite this it is only in the last ten years, that public sector policy makers and implementers have turned their attention in earnest to risk management techniques. Effective risk management involves anticipating, preparing for, and mitigating adverse outcomes, without eradicating, or unnecessarily
OECD JOURNAL ON BUDGETING – VOLUME 5 – NO. 3 – ISSN 1608-7143 © OECD 2006

THE UNITED KINGDOM PRIVATE FINANCE INITIATIVE: THE CHALLENGE OF ALLOCATING RISK – 39

hindering, beneficial risk taking. Well managed risk taking also presents opportunities to innovate, experiment and develop new ideas where more traditional ways of working are not able to deliver real change; for example, in providing an environment where radically new or different approaches can be developed in the confidence that the associated risks will be well managed. Indeed the greatest risk of all may be not taking any risks, where services and the way they are delivered do not anticipate change or evolve to meet new demands from citizens. Constructing and...

Other Papers Like Uk Post Office

Would a Brexit Benefit the British Economy?

4665 words - 19 pages prosper outside the EU if it is prepared to use its new found freedom to undertake active steps towards trade liberalisation and deregulation. It faces a series of difficult choices: opening up the UK economy to trade with the rest of the world – including the USA, India, China and Indonesia. This is essential to economic growth post-Brexit. However, this would mean exposing UK firms and workers to whole new levels of competition from low-cost

Bisness Level 3 P1 Essay

582 words - 3 pages inflation” 1990 = 8%, 2000 = 1% 2010 = 2% 5.8 What would the customer get back in the event of the providers becoming insolvent? Customer A has: £85000 with anglo irish bank £85000 with the post office £170000 Customer B has: £85000 with the bank or ireland £85000 with the post office £85000 5.9

Does England Still Need Local Post Offices

2064 words - 9 pages age, sex and job of the respondent for the reason to be able find out about frequently occuring answers according to these attributes. (203 words) Results and discussion The first two questions were asked to make sure the interviewees lived within England as the research was limited to this part of the UK.and if so, if they had a local post office close to the place they live. five out of the 35 respondants claimed not to have any local post

Report

2711 words - 11 pages Company at the beginning of started. In 1922, it started its life and only had a staff of four at that time. At first, it was financed by a post office license fee of 10 shillings, payable by anyone owning a receiver, and supplemented by royalties on radio sales. On 14 November, the first broadcast came from London. “Listening-in” turned into a popular pastime quickly. What is more, the first director-general of the British Broadcasting Company is

Fines Imposed On Banks For Money Laundering

784 words - 4 pages & Commercial Bank of China (ICBC), HSBC Holdings (UK), Deutsche Bank (Germany), Credit Agricole Group (France), BN Paribas (France), Mitsubishi UFJ Financial Group (Japan), Barclays PLC (UK), JP Morgan Chase (USA), China Construction Bank (China) and Japan Post Bank (Japan) (www.bankrate.com). Some of these banks will be discussed further within the paper. The Fines Banks have regularly been fined for wrongdoings. Since 2000, the OCC has levied

Should Pr Be Introduced to Westminster?

1211 words - 5 pages tends to produce weak coalition governments rather than producing strong governments. Whereas, First past the post is said to do the opposite – an example of this could be both Margaret Thatcher and Tony Blair’s reign as prime minister, their party was elected using first past the post and they both managed to stay as prime minister for over 10 years and implemented their manifesto while they were at office which shows how strong their government

What Are the Main Sources of Prime Ministerial Power - Exemplar

725 words - 3 pages incredible amount of power from the traditions, conventions and laws which regulate the post of Prime Minister. The post is seen as providing “National Leadership” and is therefore the pre-eminent position in UK politics. The Prime Minister is first and foremost an MP. This affords them legitimate power to act as they see fit on behalf of the electorate. Moreover, they have also been democratically elected within their own party, therefore they

Privatisation of the Royal Mail

5195 words - 21 pages   lead   up   to   the   IPO   and   what   caused   the   IPO   in   the   first   place.  Looking  at  acts  passed  in  Parliament  such  as  the  Postal  Service  act  2000,   Postal  Service  Act  2011,  as  well  as  the  Post  Office  Act  1969.  How  these  have  all   lead  to  the  privatization

Pattern in Uk Immigration

4714 words - 19 pages are summarised by Bauer and Zimmermann (1999). Recent papers by Mayda (2003) and Pedersen et al. (2004) provide estimates from panel data for a range of major immigration countries. 2 A survey of UK immigration by Glover et al. (2001) published by the Home Office contains some assessment of the factors behind recent trends in immigration as background to the 2002 Act and the government White Paper that preceded it. However, it does not cite any

Knowledge Workers

1996 words - 8 pages of information that makes up the post-industrial, post- service, global economy. High-knowledge workers such as lawyers, doctors, scientists, teacher and clerics have been around for a long time. However the number of them has increased steady in the past 100 years. They are both knowledge workers—people who do much of their work with their hands (and to that extent are the successors to skilled workers), but whose pay is determined by the

Marketing Plan For Cadillac Escalade Hybrid

5275 words - 22 pages . General Motors group plans to market this premium and luxury product to UK auto market and, later, to other European auto market. However, luxury and premium auto-makers with well-respected brands can potentially earn higher profit margin by targeting a specific market segment. Our targets are four consumer segments at the high end of the affordable personal/family auto market, enhancing our positioning with luxury brand, hybrid version and advanced

Related Essays

To What Extent Is The Uk A Two Party System

772 words - 4 pages -post system, so this new electoral system means two-partyism is harder to achieve. However, this system is not often used in the UK and isn’t used in the general election. Meaning that in regards to the general elections happen every five years when it comes to electing a prime minister, the UK remains a two party system. In the last two or three decades new issues have arisen such as; war, the environment and the European Union. When regarding

Information System Essay

3877 words - 16 pages , users will be able to post ad’s of goods they want to donate or exchange as well as ad’s for goods that they need. If matches are found, then the users will communicate among themselves and arrange the exchange. Competitors There are quite a few competitors for Re-use UK. Some of these are large well developed organizations operating throughout the country like the “furniture re-use network”. Moreover, there are other locality based NFP’s

• Assess The Impact Of Fiscal And Monetary Policy On Business Organisations And Their

2618 words - 11 pages 2009. (Data Monitor Statistics) This is a fascinating statistic, which proves why Tesco along many other companies suffered a hit due to the economic slowdown of 2009. The UK economy contracted 2.4% in the first quarter of 2009, a decline not exceeded in 51 years (Office of National Statistics). Gross Domestic Product (GDP) increased by 0.8 per cent in the third quarter of 2010, unrevised from the previous estimate. GDP in the third quarter of

Natural Gas Clean Up From Wellhead To Uk Gas Grid

3197 words - 13 pages [Accessed 20 Oct. 2014]. Park, C. (2007). A dictionary of environment and conservation. Oxford: Oxford University Press. POST, (2004). The Future of UK Gas Supplies. 1st ed. [ebook] London: Parliamentary Office of Science and Technology. Available at: http://www.parliament.uk/documents/post/postpn230.pdf [Accessed 20 Oct. 2014]. Pöyry, (2011). The Impact of Unconventional Gas on Europe - A report to Ofgem. 1st ed. [ebook] Pöyry. Available at: https