Government vs. Private Sector

None by KCPW

Legislative Committee Tackles Competition and Privatization

(KCPW News) When it comes to food and photocopies, private businesses may do a better job than government. That's the starting premise for Senator Howard Stephenson, who co-chairs a new legislative subcommittee that was created after he pushed to privatize the Utah State Prison. That bill failed, and the subcommittee was formed instead. Stephenson has high hopes:

"We're really looking at ways not only of saving money, but at improving the quality of services provided by government," says Stephenson.

Utah already has more than six-thousand contracts with private business to outsource food service, legal counsel, debt collection and other services. Stephenson would like to see that expanded. He also wants to make sure state and local governments don't unfairly compete with private businesses. For example, some counties are operating pharmacies out of their health clinics that compete with private pharmacies. Government-subsidized conference and event centers are also competing for wedding and catering business with private entrepreneurs.

"What I hope comes out of the committee is a bright line for determining when it is permissable for government to compete with private business and on what terms," says Stephenson. "And I'd like the committee find ways to encourage privatization."

Stephenson says he'd still like to see all or part of the state prison system turned over to private contractors, and he will encourage the committee to make that recommendation. Opponents of the proposal - including a few lawmakers on the committee - say issues of public safety are best left in government hands.

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