Public-sector commercialization?

An interesting question: should we be concerned about Public-sector commercialization? The arguments have often been about our collective ability to ensure that a privately-run business delivers socially-acceptable outcomes. For example, it seems a generally good thing to reduce traffic flows to congested areas by making the parking expensive (and thereby reducing demand, one hopes). However, when local authorities make money and profit from this, they can change their behaviour into substantial enforcement mode and upset motorists. However, removing the mistaken and overzealous penalties, we should not forget that everyone charged is breaking the (by)law. So no problem then. How would this work for benefits or social services.