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Finally, in 2011, our political masters finally woke up to the facts and a committee of MPs said the "long-term expense of PFI deals - where the private sector shoulders the upfront cost and is typically repaid by the tax payer over a 30-year period - were now much higher than more conventional forms of borrowing". They went on to say "We believe that a financial model that routinely finds in favour of the PFI route, after the significant increases in finance costs in the wake of the financial crisis is unlikely to be fundamentally sound. We do not believe that PFI can be relied upon to provide good value for money without substantial reform."
A subsequent report by the House of Commons Public Accounts Committee in May this year said
that "in many cases investors had made "eye-wateringly high" profits, with taxpayers trapped in expensive and inflexible contracts for which they are ultimately liable".
Now we have a healthcare trust in England effectively going bust because of PFI. The South London Trust currently pays out £62 milion per annum interest on two new hospitals built 10 years ago and they have to continue paying until 2032!
In 1992 it was as clear as the Emperor's new clothes that PFI would be a disaster for the tax payer and an enormous pocket liner for big business and finance. And, although I get no satifsfaction for saying it, to those who didn't listen to me 20 years ago - I told you so!