THE ROLE OF PRIVATE SECTOR ORGANISATIONS
IN PUBLIC EDUCATION
What benefits do private sector organisations
bring?
13. The question of what private companies can bring
to education over and above the quality of service provided by
the public sector was central to our inquiry. The Society of Education
Officers argued that "commercial companies do not have any
special expertise in running schools or providing educational
services to schools".[10]
UNISON argued that the organisations which were at the forefront
of bidding to provide LEA education services had limited experience
in providing education to specific groups such as nurseries or
language schools, but no experience of providing all round education
services to meet the needs of "inner-city schools, children
with multiple social problems or indeed children who simply do
not want to be at school".[11]
14. Mr Neil McIntosh of CfBT Education Services told
us that it was not possible to define specific qualities which
private companies can bring to education, but that the "variety
and competition" which private companies did bring helped
to counter the tendency of monopoly providers to "atrophy
over time".[12]
Mr Stanley Goodchild of 3E's Enterprises argued that private companies
could tailor their staff to the needs of a particular project,
but that this was not possible in LEAs because of relatively low
staff turnover. In his view, private companies were able to be
more responsive to particular situations.[13]
Mr Goodchild also argued that it was difficult for LEAs to focus
on an individual schools with particular problems, because they
had a duty to support all of their schools. In these cases, it
was easier for a private company to address localised problems,
under contract to the LEA.[14]
We were told that support for specific schools could also include
additional financial resources. Mr Goodchild said that 3E's had
raised additional investments from industry totalling £10
million for two schools. He intended to seek investment from industry
for King's Manor School, Guildford.[15]
Mr Kevin McNeany noted that Nord Anglia Education plc had about
2,000 employees, "most of whom are professionals in education".[16]
During a visit to the USA, members of the Education Sub-committee
saw examples of private companies which were able to offer consistent
approaches to support and development across a number of individual
charter schools (see paragraphs 39-42).[17]
15. The DfEE highlighted specific benefits which
private sector organisations could bring to education:
- economies of scale
and specific specialist expertise not available in the LEA or
governing body,
- experience in a range of authorities facing
similar issues,
- new and more rigorous approaches to performance
management based on clear output specification,
- improved personnel (although where TUPE
applies the employment rights of existing staff will be preserved).[18]
16. We agree that a pragmatic approach to raising
education standards is necessary. Long-term under-performance
in the education sector cannot be ignored. Where more traditional
approaches have not raised standards or produced success, we should
make use of expertise wherever it is found in the public, private,
or voluntary sectors. A pragmatic approach to addressing long-term
under-performance should not always end with intervention
or involvement by a private sector organisation. Some public sector
providers have a good record of innovative, high quality
education services, often in the most challenging circumstances.
17. Throughout our inquiry the role of private sector
organisations has been seen as a response to long-term under-performance.
We believe that there may be other situations where private sector
organisations could play a valuable role in improving the quality
of education provided to children. Therefore, we recommend
that the Department for Education and Employment and local authorities
consider ways in which the involvement of private sector organisations
could support and enhance the quality of education services.
10 Appendix 3, para 3. Back
11 Appendix
7, para 5. Back
12 Q.
13. Back
13 Q.
14. Back
14 Q.
14. Back
15 Q.
33. Back
16 Q.
2. Back
17 Second
Report from the Education and Employment Committee, Session 1999-2000,
Visit to the USA: Raising educational standards and the role
of the private sector, HC 290. Back
18 Appendix
2, para 26. Back
| 
