Cost and not quality is the government's priority in outsourcing services, say MEPs

Cost and not quality is the government's priority in outsourcing services, say MEPs

Public services suffer from the government's recent priority to prioritize cost over quality when outsourced to the private sector.

The collapse of Carillion has highlighted fundamental shortcomings in the government's commitment to provide £ 250 billion in services and projects each year, the Committee on Public Administration and Constitutional Affairs (PACAC) found.

The public's trust in the system has been "seriously damaged" because the Baugigant Carillion is going down, MEPs said.

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Services deteriorated as contractors know that the government prioritizes price over quality, the report said.

And the government has been unable to provide real evidence to substantiate its main message that outsourcing produces better public services for less money, parliamentarians said.

The study found that the government's top priority in outsourcing is "to spend as little money as possible while forcing contractors to take an unacceptable financial risk".

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The report said: "It is unacceptable that the government spends £ 250 billion with little evidence that it is currently pursuing its own procedures to achieve good value for money.

"The government's concern about the price has been noticed by the market and gives cause for great concern.

"The fact that the government does not judge the quality of services and their costs is regrettable."

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