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Time to look for new joint venture partners
Published: 2010-06-08 14:45:11
Local Partnerships chief executive John Carleton has urged local authorities to develop more strategic partnerships, including links with the third sector, as they adapt to the recession.
Speaking ahead of his contribution to the SocInvest 2010 session on Next Generation PPPs, Carleton said partnerships can play a central role in sustaining regeneration.
"We have to start thinking increasingly about whom partnerships are formed with, including the third sector," he said.
"Local authorities must become more strategic in delivering services by understanding what they do best and how they can best involve other organisations."
Over 20 years, the practice has evolved from an "arms-length contractual arrangement" to a form of collaborative partnership. More recently some local authorities have used the joint venture model which, according to Carleton, remains an area of rich potential.
"Part of our role is to help the public sector see where good practice lies in joint ventures," he added. "There are already some good examples where joint ventures are being used to develop services and infrastructure."
The need for evolution in partnership practice has been driven by a number of factors, not least economic. "The days when local authorities could rely on land value gains and cash flows from housing sales have gone," said Carleton. "They worked well in the past, but not in the future."
New models need to be found and, tough though the current economic environment might be, Carleton was confident that innovative solutions will be developed. However, he added: "For innovation read risk". Understanding the new rules of the game requires local government and private sector organisations to form pioneering new solutions.
"Local Partnerships is focused on supporting public bodies in improving service and infrastructure," he said. Part of its USP, said Carleton, is that it includes a high level of private sector skills "but based on public sector values".
As well as increasing use of joint ventures, Carleton highlighted the likelihood of more outsourcing and tipped Total Place, which he said "makes sense and seems quite intuitive", to be part of the new order.
"It is a period of terrific challenge," he added. "Some will see it as a time of opportunity."
John Carleton speaks on Next Generations PPPs at SocInvest 2010.