3.31 The exit arrangements for the public sector and the other parties need to be thought through, as do the duration and expiry issues related to any contract(s) with the public sector body. All JVs come to an end at some point when the original purpose for which the JV was established is complete, or as a result of differences between the JV participants.
3.32 The general issue of whether the public sector is content that the JV could end or fail, bearing in mind any responsibilities for public service delivery that have been transferred, should be discussed and a clear view developed as to how failure would be managed in terms of the authority's responsibilities, e.g., by a managed transition fully into the public or private sector. It is very important in this context to understand the likely exit ambitions of the private sector parties.
3.33 Unless it is clear that there is such policy and commercial stability that commonality of interests will be sustained on a long-term basis, the public sector should contemplate an end state where it is no longer involved in the JV, where either the JV has been successful in its own right or its job is done. Exit issues including those related to staff and assets are dealt with in greater detail in Chapter 8.