3.5.3.1  Using State Employees to Provide Public Services

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If the State uses its own employees, it can provide a uniform level of service across the country – allowing aspects of services to be coordinated and reaping the benefits of scale where possible.  Without the pressures of competition though, it is difficult to encourage innovation, high quality and cost-effectiveness solely by good administration.  

Although it is reasonable to expect employees of the State to be motivated by a desire to serve the public, there are those who have chosen their careers primarily for job security and who would tend to oppose change – especially cost-cutting.  Any public service has to compete for funding, but it is harder to cut services if they are provided by State employees; this might be seen as a good reason for reducing the size of the State sector.

The other main argument against using State employees is that the public would be deprived of a choice of services.  Depending upon people's political viewpoints, this lack of choice might be regarded as either good – because it treats everybody equally – or bad because it reduces individual liberty.  In economic terms, the benefits of scale that come with uniformity can be compared to the benefits of services being more responsive to individual consumer needs.

Arguments in favour of using state employees have to take into account the governance measures which are required to ensure that adequate services are delivered at an acceptable cost to the taxpayer.[1]  The role of the State is an extensively-researched topic.[2]

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