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public services. Such partnerships have been
promoted as part of the neo-liberalism
agenda for two main reasons. Ideologically,
private companies are presented as more effi-
cient at managing large projects than the pub-
lic sector (cf.privatization). Pragmatically,
undertaking developments in this way can
allow governments to avoid bearing the capital
costs in their budgets – thereby reducing the
public-sector borrowing requirement and, it is
believed, interest rates and/or avoiding large
increases in taxes to pay the upfront costs.
An example of such partnerships in the UK
has been the Private Finance Initiative
launched in the 1990s, whereby contractors
undertake the capital works – building a
prison, hospital, school, or road, for example
- and then lease the facility to the government,
which pays for the facility through its current
rather than capital account. In some cases, the
private contractor may either operate the new
facility and pay part of the profit to the gov-
ernment (as with a toll road) or is given some
role in its management (as with a place on a
school’s governing body) – this is known as the
state ‘contracting out’ part of the provision of
public services.
Examples of PPPs include New York’s
Central Park, which is managed for the City’s
Department of Parks and Recreation by the
Central Park Conservancy, and an extension
of California’s State Route 125 south of San
Diego, which was built by a private company –
California Transportations Ventures Inc; the
Lane Cove Tunnel under Sydney Harbour in
Australia was constructed under a similar
scheme, with the contractor then operating it
on a 33-year lease. In the UK, the National Air
Traffic Services (NATS), which control use of
the country’s airspace, is part-owned by the
government (which has a 49 per cent stake),
with most of the remainder held by a consor-
tium of companies involved in the airline busi-
ness: as with many such projects in the UK,
the work of NATS is overseen by an independ-
ent regulator, which can control prices and the
quality of service provision.
Whether the use of PPPs is either more
efficient or more effective is open to doubt.
Some claim that the overall cost of the lease-
back arrangements will be greater than the
initial capital costs, so that PPPs in effect
involve the taxpayer creating profits for the
private sector, which may be enhanced by the
private companies’ employment practices: in
response, others argue that without such part-
nerships many projects would not happen,
because the public sector cannot bear their
cost without substantial increases in tax rates,
which would deter other investment and
entrepreneurship. rj
Suggested reading
Bovaird (2004); Walzer and Jacobs (1998); Wet-
tenhall (2003). See also http://www.hm-treasury.
gov.uk/documents/public_private_partnerships/
ppp_index.cfm
public services Services that are provided by
(or on behalf of) thestateaccording to non-
marketcriteria; that is, on the basis of the
need for the services rather than the ability to
pay. Although the boundaries between what
counts as a ‘public’ or a ‘private’ service have
historically been subject to change, together
with which sector has done the providing, in
general services are provided collectively
because provision through the market or the
third sector is believed to be either inefficient,
ineffective or inequitable. Studies inside and
outside of geography have tended to focus on a
number of areas of public service provision
and utilization, such aseducation,health
careand housing (seehousing studies: see
also Walsh, 1995). In each case a particular
type ofcollective consumptionpolitics has
been found to exist, over the provision of the
public service and the conditions under which
it is provided. Geographers have been particu-
larly sensitive, not surprisingly, to the geo-
graphical aspect of provision of services,
related to wider concerns over spatial
inequalities,territorial justiceandwel-
fare geography (Smith and Lee, 2004).
Three arguments have been made for the need
for a geographically attuned analysis of distri-
bution of public services and the level of pro-
vision: first, that service provision varies by
territory; second, that the benefits of a pub-
lic service decrease the further an individual is
away from its provision (cf.distance decay);
and, third, that the location of services matters
to surrounding areas and neighbourhoods, in
the form ofexternalities– these are impacts
that are not part of the initialdecision-mak-
ingprocess, and can be either ‘negative’ or
‘positive’, although in many cases externalities
are both, how you regard them depends on
your own position.
Underpinning much geographical work on
public services is an attention to the restructur-
ing of the welfare state (Pinch, 1997).
Decisions made by thestate apparatus,over
the provision of public services, reflect wider
economic and political processes. Geographical
distribution is often the outcome of a range of
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PUBLIC SERVICES