I think it's a different question, but it is a good question. The question is often put this way: Are you, in the public sector, in a position to hire people the way you want, and are you in a position to move people on or give them other opportunities or dismiss them as you would in other sectors? I think the general view is that in the public sector we have not moved and that we have more restrictions on dismissal than you do in the private sector.
That having been said, people are dismissed and people are moved along, but I don't think it's as easy in the public sector as it is in the private sector.