Transparency of Risk and Reward in U.K. Public–Private Partnerships
John Hood, Decision Analysis and Risk, Glasgow Caledonian University, Glasgow, G4 0BA, Scotland, U.K. He can be reached at [email protected].
Ian Fraser, Department of Accounting & Finance, University of Stirling, Stirling, FK9 4LA, Scotland, U.K. He can be reached at [email protected].
Neil McGarvey, Department of Government, University of Strathclyde, Glasgow, G1 1XQ, Scotland, U.K. He can be reached at [email protected].
Abstract
Public–Private Partnerships (PPPs) are an increasingly common mechanism for the renewal of public sector infrastructure, although in the United Kingdom, these have been criticized as representing poor value for money. An inherent assumption of much of this criticism is that a corollary of detriment for the public sector is benefit for the private sector. This paper highlights the difficulty of objectively verifying the many criticisms and assumptions regarding risk and reward associated with PPPs. Public and private sector disclosure policies and systems are analyzed and we conclude that neither sector practices openness and transparency. This results in a democratic accountability deficit in the public sector and a lack of meaningful data being made available to stakeholders in private companies.
