Unproductive Public Sector?

05 Jan 2018 12:21 PM | John Heap (Administrator)

Australia's Productivity commission has slated the public sector for its poor productivity. Yet when you read the report what it is really saying is that the public sector, unlike the private sector, fails to measure productivity - and therefore is unable to know whether it is moving in the right direction.


This seems a little harsh.


How does the Australian public sector compare to the US, the UK, Canada or Denmark?


I don't know - but I suspect neither does the Productivity Commission.  Making conclusions on the basis of insufficient information is not what we expect f®om a body charged with promoting productivity.


So give the public sector a chance. Give them some targets to achieve - and chastise them if they fail to meet them.  But don't criticise them for not achieving unknown targets.


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