Policy into practice Public Private Partnerships – how smart procurement can deliver better employment and social inclusion Greg Ashmead Managing Director Global Operations, Ingeus Limited

Globalisation gives us common policy challenges, one of the greatest of which is the aging population Source: United Nations Department of Economic and Social Affairs, Population Division Old-age dependency ratio: 2009 vs 2050

The global recession has brought even more challenges, including a short term rise in unemployment Unemployment rates (%) Source: OECD

Demographics and aging population Global recession Increased pressure on public finances Reviews of viability of welfare and pension schemes Threat to productivity and future growth Increase participation rates of groups not traditionally part of the active labour force Develop service delivery models which are responsive to individual needs Engage private providers who can provide more personalised support Global challengesConsequences Global policy objectives In response, governments are increasingly seeking to boost participation rates

Example of successful PES modernisation: UK Public Employment Service Outsourcing to private providers Jobseekers join unemployment register 50% of jobseekers leave register 75% of jobseekers leave register 90% of jobseekers leave register Intensive support for remaining 10% of jobseekers furthest from the labour market 0 months3 months6 months12 months

Effective procurement: roles of PES, policy makers and private providers Work together to achieve policy objectives Cooperation not competition Share best practice to boost performance On-the-ground partnerships – shared locations, effective working relationships, handover of clients to ‘safe hands’ Work together to achieve policy objectives Cooperation not competition Share best practice to boost performance On-the-ground partnerships – shared locations, effective working relationships, handover of clients to ‘safe hands’ PES Private providers Close partnership to ensure optimal effectiveness and value for taxpayer dollar Understand the full intent of policy to design service that meets objectives Feedback frontline experience and provide suggestions for improvement Pilot new ideas and innovations Close partnership to ensure optimal effectiveness and value for taxpayer dollar Understand the full intent of policy to design service that meets objectives Feedback frontline experience and provide suggestions for improvement Pilot new ideas and innovations

Features of effective procurement Competition – more than one provider in an area provides choice for jobseekers and employers Clear measurement: percentage of people referred into jobs average time to place percentage of people who remain in work for weeks Purchasing flexible and innovative programmes Contracts awarded on quality, not price

Features of effective procurement Payment linked to results – funding based on longer-term sustainable outcomes Awarding longer contracts with a larger client base – encourages greater level of investment and shared risk/reward Publication of comparative performance data Robust independent audit and measurement

PPPs are not ‘privatisations’ but more a business and risk-sharing partnership with agreed goals in achieving public policy results. An advantage of PPP use is the transference of risks by the public sector to a private business that has professional experience in managing the type of specialised service required.” APEC, “Developing Effective Public-Private Partnerships”, 2009 Final thought