The Nature of a Public Service

Abstract

Public services have been misunderstood. They are not simply services in the public sector, they are not necessarily there because of “market failure”, and they cannot be analysed by the same criteria as market-based provision. They have four defining characteristics. They exist for reasons of policy; they provide services to the public; they are redistributive; and they act as a trust. They consequently operate differently from production for profit, in their priorities, costs, capacity and outputs.