Local governments may encounter resistance when considering public private partnerships to change the way existing services are delivered. There may be general public resistance to change, particularly if a local government has provided high quality and efficient service. Those benefitting from the service may fear a decrease in service, an increase in the price of the service, or both with the involvement of a private partner. There may also be resistance from local government staff and labour unions threatened by potential changes and the possible impact on job security, wages and benefits.
On the other hand, if the local government's performance has fallen short of expectations there could be public support for changes to the method of existing service delivery. There may also be greater support for expansion or upgrading of existing services to provide a higher quality service.
A key issue local government must address before considering public private partnerships is the true cost of providing existing services. Many local governments lack benchmarking tools, such as accurate accounting for unit costs and other costs associated with providing a service. This issue is discussed in more detail later in this section.