• Categories
  • Category Archives: PFI

    People versus PFI Conference

    PFI – The Biggest Scam You’ve Never Heard Of

    You’d never be able to tell from the outside, but hundreds of our hospitals, schools, prisons roads and even homes are no longer controlled by us, the people. Why? Because politicians have given away our public buildings to private companies – only to have us rent them back at extortionate cost. Our money is making these tax-avoiding corporations rich, while we end up losing frontline services. This is what they mean by the Private Finance Initiative (PFI).

    PFI – Doesn’t Make Sense

    Every year PFI costs us £10 billion – more than the entire 2012 Olympics! The UK taxpayer will pay almost £300bn for PFI – but most of that will end up in offshore tax-havens.

    The government and private contractors consistently conceal details of PFI contracts. Why should public spending be allowed to be kept secret?

    The worst part of it all is that the public were given no choice about PFI. PFI was implemented by a corruption of the democratic process. We need to take back our rights.

    PFI – Needs To Go

    There is an alternative – there are cheaper and better ways to provide public infrastructure. It’s time for us to stand up and say NO to the politicians and private contractors that want privatisation-by-stealth. It’s time to make public services ours again. Join public sector workers, professional groups, trade unionists, campaigners, researchers, journalists and members of the public for a two-day event to launch this vital campaign to end PFI. Hear from experts in the field to learn how you can make a difference, and tell your own story about how PFI is harming you, your family and your country.

    To find out more, learn how to contribute and register, email:

    Twitter: @PPLvsPFI

    Tagged | Comments Off on PFI
    In principle, there is nothing wrong with the Government using its credit worthiness to borrow money in a different way from normal general borrowing and to ally the sums raised to a particular capital asset and  / or the means of getting that asset built. (A form of mortgage from the builder – who in turn has to acquire the loan etc).
    However, most of our Private Finance Initiative schemes in the NHS have gone further than this.
    1. The economic case for many has been deliberately manipulated to show that traditional government procurement isn’t better value (I know this from first hand experience). This is partly because Government pretends that Private Finance Initiative is off balance sheet and traditional spend is on. This is a fiction.
    2. Private Finance Initiative schemes only work financially if both the builder and the lender make a profit, have the option of selling on their stake soon after completion, and can tie in others (such as catering and cleaning firms) who in turn make a profit o that part. This isn’t achieved by magical “whiz” ideas (if it was we could just pay the whiz kids to tell us stupid managers how to do it); it’s done by reducing the cost of labour (lower ages and benefits, temporary contracts,transient labour, minimum staffing levels etc).
    3.This only works where you build new. So, better, cheaper, refurbishment options are rejected for costly  30 year deals – at a time when the care services are fast moving and have a ten year horizon – and these build in a rigidity to the supply side that is then managed by culling perfectly good, but expendable traditional services.
    The Private Finance Initiative is there to serve the needs of big business and big finance. If it is the answer, would someone please tell me what the  question is?
    Tagged | 4 Comments