Abstract
The case for external monitoring is simply put: nationalised industries, because they are not subject to commercial pressures and the fear of default, do not have strong incentives to be efficient. In the case of the monopolies, pressure exerted through EFLs runs the risk of pushing over on to prices; in the case of loss-makers, the pressures are considerable, but the management is inclined to politicise the relationship and concentrate on making the case for more grant, rather than getting on with the job of cutting costs. External efficiency audit is a proxy for market pressure.
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Notes and References
C. D. Foster, Politics, Finance and the Role of Economics (London: Allen and Unwin, 1971).
M. Garner, ‘Auditing the Efficiency of Nationalised Industries: Enter the Monopolies & Mergers Commission’, Public Administration, vol. 60, no. 4, Winter 1982.
M. Garner, ‘Nationalised Industries and Spending Departments’, Public Money, September 1983.
C. D. Foster, ‘Some Observations on Accountability and Efficiency Auditing in the Public Sector’, in ‘Public Sector Accounting and Research’, published by Public Money 1984, General Series No. 3.
J. R. Meyer et al., The Economics of Competition in the Telecommunications Industry (Çambridge, Mass.: Oelgeschlager Gunn Hain, 1980).
R. Pryke, The Nationalised Industries (Oxford: Martin Robertson, 1981).
Electricity Users Council, Measuring Area Board Performance (The Council, 1983).
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© 1984 John Grieve Smith and Economic and Social Research Council
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Harrison, A.J. (1984). Monitoring Performance. In: Smith, J.G. (eds) Strategic Planning in Nationalised Industries. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-07114-2_6
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DOI: https://doi.org/10.1007/978-1-349-07114-2_6
Publisher Name: Palgrave Macmillan, London
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