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A survey of 115 direct service organisations has revealed that

21th April 1994, Page 5
21th April 1994
Page 5
Page 5, 21th April 1994 — A survey of 115 direct service organisations has revealed that
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Which of the following most accurately describes the problem?

vehicle maintenance is the most profitable local authority contract to run, according to the Public Services Privatisation Research Unit.

The latest figures, from 1991-2 accounts, show a surplus per employee of £1,935 which is more than three times the all-services-average of £584.

Street-cleaning contracts are in second place with a surplus of £784 per employee, with refuse collection in fifth place at £641.

PSPRU says similar research being conducted on privately operated local authority contracts indicates the private sector-run equivalents are less profitable as many are loss leaders.


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