Difference between Public and Private Sector


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Difference between Public and Private Sector- for GCSE Citizenship- by http://www.tes.co.uk/teaching-resource/Public-and-Private-Sector-6197407/

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Difference between Public and Private Sector

  1. 1. Title : Government and public services. Aim : We will think about whether or not Government is the best organisation to provide public services.Key WordsPublic Service = A service provided by governmentor local government.Private service provider = A private service providedby private business. Example rail transport is nowprivately run.
  2. 2. What are Public Services? Public Services are organisations that are directly run by the National or Local Government. An example of a Public Service include Schools, Hospitals, local parks etc. The Public Sector as it is also known as is used to provide services to the public. There are some public services that are now private including Rail travel.
  3. 3. Advantage of Public Services Advantages: The public controlled the service and therefore the profit margins are kept low The costs of using Public Services are covered from the Taxpayer therefore cannot go too much into debt They are directly controlled by the Government and therefore cannot be used inappropriately. All the essential services will be free and wont charge the public to use them Examples include: Schools, Hospitals
  4. 4. Disadvantages of Public Service All the money that is used comes from the Taxpayer therefore would not be getting best value for money There is less competition for the Private Sector therefore not allowing private sector growth Some Organisations are very expensive to run and could cause a lot of money being used from taxpayers
  5. 5. Here are a list of public services.... Can you divide them into eitherCentral Government or Local Government Control?The armed forces Local Library Provision Of parks Recycling Or open spaces. Justice Prison Service Service Housing NHS Police Social Service
  6. 6. What are Private Services? The private sector consists of business activity that is owned and run by private individuals. These businesses can be small firms owned by just one person, or large multi-national businesses that operate around the world (globally). In the case of large businesses, there might be many thousands of owners involved. The goal of businesses in the private sector is to make a profit.
  7. 7. Advantages of Private Sector Private services are owned by Private companies and therefore are seen to be cheaper to run Private sector have more control in terms of wages and costing of the service They can use their companies to invest for the future to improve sustainability
  8. 8. Disadvantages of Public Services If the company does not make money than it might have to backed by the Public Taxpayer Example of Private Sector not working include the recent case of the Northern Rock bank when the company went into too much debt and therefore was backed by the Government to make sure people were still able to use the bank Prices can be increased for services according to the company
  9. 9. In the U.K many public services are provided by government and localGovernment. We are known as a social democracy because the state( government ) look after a lot of things for us. People pay for publicservices by paying high direct and indirect tax.In the U.S.A , many public services are provided by private companieswho charge people directly for services or charge the government forservices. In the U.S.A government taxes are lower but people have topay the service providers or pay into insurance policies to make surethey can afford services. The U.S.A relies on private provision of servicesit is more of a capitalist democracy than Britain. The U.S.A still controls its own armed services.
  10. 10. People receive a servicebased on their needs Elected politicians can Rates of pay andnot rather than their Maintain control of public working conditionsAbility to pay. services. They can e held are same across accountable. the country.Service does not haveto make private share Everyone receives holders profit and business equal treatment.owners People can choose the service they want. Competition between businesses drives up standards, brings inPeople have pay for new ideas and can lowersOwn services so they costs.are more responsible. Companies lose business if service is poor. This encouragesElected politicians can Them to provide good services.Spend time checking onHow services are doingRather than running them.