The role of arm's length agency governance in Westminster governments in promoting accountability to the public

Service quality and costs concerns have caused governments to restructured delivery systems through a phenomenon know as New Public Management. This approach is reported to have two key changes from traditional government organizations 1) a separation of policy from service delivery through the use of separate service delivery organizations and 2) a change in the contractual governance arrangements- organizational reporting. Historically theorists have debated the ability of principals to effectively hold their agents accountable due to the agent's superior access to information and agent self interest. This study considers the implications of the two changes and suggests public accountability can be enhanced through contractual change.