66 billion over the last 10 years, but it's the Tories fault
Discussion
Listening to R4 this morning, and the Beeb is now banging on about the fact that most of the hospitals built in the last 10 years were built under PFI, and that this will cost £66 billion - or 6 times more than their original build cost.
And then of course the Beeb blamed the conservatives for inventing the PFI concept - Nu Labia were warmly described as having "embraced it".
And where was the Beeb when many people were questionning the PFI led spending spree of the last decade? Oh yes, thats right, they were so far up Blair/Browns arse that they couldn't hear the criticism..
And then of course the Beeb blamed the conservatives for inventing the PFI concept - Nu Labia were warmly described as having "embraced it".
And where was the Beeb when many people were questionning the PFI led spending spree of the last decade? Oh yes, thats right, they were so far up Blair/Browns arse that they couldn't hear the criticism..
article on t'internet said:
On 27 October 2006,(Conservative) Health spokesman, Andrew Lansley, made a full-blooded - and well-directed - attack on Labour’s massive hospital building programme using the Private Finance Initiative (PFI).
In a statement headed Lunacy as Labour wastes £45 billion on NHS hospital projects [1], he called “for a fundamental review after it emerged that the National Health Service will have to pay private sector contractors an incredible £53 billion for hospitals worth only £8 billion”. The statement continued:
“Describing the cost of the Private Finance Initiative deals as ‘complete lunacy’, the Shadow Health Secretary said: ‘For all too many hospitals, PFI has turned into a straightjacket. It is time for a fundamental review of how the NHS accesses capital for future investment.’”
Brown’s preferred mechanism
Although Conservative Chancellor, Norman Lamont, was responsible for the invention of PFI in the early 90s, it wasn’t used much until New Labour came to power in 1997. Then, it became Gordon Brown’s preferred mechanism for acquiring finance for public sector projects.
PFI is first and foremost a form of public borrowing, which, like conventional public borrowing, has to be paid back with interest by the state. In fact, PFI is an expensive form of public borrowing, more expensive that the conventional method. It is more expensive because the state can always borrow money more cheaply than the private sector (because, whereas a private corporation may go bust and default on its debts, the state will not). The essence of PFI is that the state employs a private agent to borrow on its behalf. As such, PFI wastes taxpayers’ money and a prudent Chancellor would ban its use for public projects, rather than insist on its use, as Gordon Brown has done.
so why did the Beeb not mention Tory opposition to the use of PFI for hospitals?In a statement headed Lunacy as Labour wastes £45 billion on NHS hospital projects [1], he called “for a fundamental review after it emerged that the National Health Service will have to pay private sector contractors an incredible £53 billion for hospitals worth only £8 billion”. The statement continued:
“Describing the cost of the Private Finance Initiative deals as ‘complete lunacy’, the Shadow Health Secretary said: ‘For all too many hospitals, PFI has turned into a straightjacket. It is time for a fundamental review of how the NHS accesses capital for future investment.’”
Brown’s preferred mechanism
Although Conservative Chancellor, Norman Lamont, was responsible for the invention of PFI in the early 90s, it wasn’t used much until New Labour came to power in 1997. Then, it became Gordon Brown’s preferred mechanism for acquiring finance for public sector projects.
PFI is first and foremost a form of public borrowing, which, like conventional public borrowing, has to be paid back with interest by the state. In fact, PFI is an expensive form of public borrowing, more expensive that the conventional method. It is more expensive because the state can always borrow money more cheaply than the private sector (because, whereas a private corporation may go bust and default on its debts, the state will not). The essence of PFI is that the state employs a private agent to borrow on its behalf. As such, PFI wastes taxpayers’ money and a prudent Chancellor would ban its use for public projects, rather than insist on its use, as Gordon Brown has done.
edited to correct quoting
Edited by andymadmak on Friday 13th August 08:42
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