The primary responsibility for the political and commercial sustainability of the public service economy lies with government. This is government's supply chain, and if because of the way in which the system is designed and individual suppliers are managed, core public services are compromised and government's brand is damaged, then ultimately that is government's fault.
Of course, providers must be intimately involved in this process, but there is little that they can do if government does not take the lead, if government does not acknowledge its responsibility for the design and stewardship of the market.