Reply to post: Re: We don't have a free market !!!!

Why OH WHY did Blighty privatise EVERYTHING?

arrbee

Re: We don't have a free market !!!!

"PFI was largely just Brown up to his usual trick of making the future pay for his present"

So wrong.

PFI was invented by the Tories under Major; they were told it was a neat way of keeping expenditure off the UK books so that our economic figures would look better than they should - and they bought it.

Labour under Blair and Brown continued on this basis as did the Coalition and now the current government. None of them have shown any misgivings about PFI or its successors.

( for overseas readers, PFI is a method by which the private sector borrows money at 7 to 8% to pay for infrastructure projects such as major hospitals, schools, etc, which they then lease to the public at a premium rate, together with a buildings service contract also at a premium rate, and then after ~20 years they end up owning some very valuable property to do with as they wish. You will be unsurprised that there is a thriving trade in PFI contracts once they've been signed off. You may also wonder how such agreements can be justified when the government can borrow at ~2%; the simple answer is that the civil service / special advisers fiddle the numbers until they get the result they want - just like in Greece, really )

Amusingly the consultancies that make lots of money advising on new PFI scheme then make more money on helping organisations get out of them several years later when new bosses come in and discover just how deep in they are.

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