Ken Jackson

The government's plan to make more use of the private sector in the delivery of public services has sparked a new a row between the leaders of two of the country's largest unions.

The spat between the bosses of the AEEU and the public services union Unison came just 72 hours after Labour's landslide victory.

Sir Ken Jackson, general secretary the Amalgamated Engineering and Electrical Union, said on Monday private capital and support was necessary to raise public services to the level expected by the public.

Speaking at his union's policy conference in Blackpool, Jackson said: "We must deliver on public services quickly and, although this may be difficult for some, there must be no ideological bar that prevents us from doing so."

"I understand why people might be anxious over private finance in the public sector. But to get the investment we need, we have to look to the private sector as well. This is the last chance for Britain's public services," said Jackson.

Jackson's comments put him at odds with Unison, Britain's largest union, which is strongly opposed to the extension of private sector involvement in schools and hospitals.

The union's general secretary Dave Prentis, told a political forum in London that he would oppose further involvement of the private sector, though his union was ready to work with the government on delivering investment and change.

He rejected the idea that private sector involvement would be a "panacea", bringing managerial expertise that could turn around poor services.

"Our whole experience of privatisation of public services is that it leads to less innovative management. It leads to a demoralised workforce, many of whom have their pay and pension entitlements cut," said Prentis.

While the unions generally remained quiet during the election campaign itself, the Unison leader was repeating comments he made on June 8 when he congratulated Labour on its election victory. While welcoming Labour's reflection, he warned the party that Unison would be "challenging the government's belief that the private sector is the answer to its prayers."

Prentis' views echo the words of Bill Morris, the general secretary of the Transport and General Workers Union, who criticised the privatisation plans in Sunday's Observer with the warning that the NHS could "look like Railtrack on a Bank Holiday"

"The government has said there should be no ideological bar to a role for the private sector in delivering public services.

"I, for one, reject the notion that efficient public services can only be provided in partnership with the private sector. It is a belief which is fast becoming an ideology - one which does immense damage to the morale of hard-working, dedicated public sector employees," wrote Morris.

Labour has said it has no ideological barrier to the use of private sector companies in the delivery of services in areas such as health and education, with the aim being to improve standards while retaining the principle of free public access.

Challenging vested interests in public services and the professions are expected to be one of the key themes of a second term Labour government.