LAST month, Kevin Rudd made a speech, which although not heavily reported, set the government a significant objective and will form an important marker for its success.

In an address to the Australia New Zealand School of Government, he set out his ambition to reinvigorate the public service to be more effective and efficient. This does not sound too sexy, but given the public sector accounts for more than 40per cent of the domestic economy, reform is vital. What is more, in many areas the public sector is in serious need of improvement.

The Prime Minister said: "We need a more sweeping reform driven by a long-range blueprint for a world class, 21st century public service." He also established an advisory panel to develop such a plan.

Whatever the plan, it is vital that public sector reform is not left entirely to the public sector. Business should take it seriously and attempt to shape this reform. Like any large organisation, the public sector is difficult to change and therefore needs all the insights and pressure that can be marshalled.

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