My OperaParliament Fails Investigation. Political Fallout Inevitable.
Monday, April 18, 2011 9:36:45 PM
Norman Lamont (Conservative) dreamt up the Public/Private Partnership, confusingly referred to as PFI, but the idea was pinched by New Labour. Nothing new there then.
Gordon Brown thought it was a great idea and went on a spending spree. Actually, 'Spending spree' isn't quite correct since it didn't cost him anything. Private companies would build and maintain infrastructure that the public purse would normally cough up for (Hospitals, schools, libraries...) and the organisations using that infrastructure would pay them rental and maintenance. After 30-35 years the buildings would become public property. What's not to love?
The Liberals had always found plenty not to like about PFIs, and the Tories pretty quickly came to agree with them (About as long as it took for them to be replaced in government by New Labour, coincidentally). Both of the Cleggaron were scathing in their attacks on the system, and the public and the press agreed.
About the only good thing you could say about Brown's PFI offensive was that it happened during a period when interest was low, inflation was low, and like it or not, Brown was keeping the economy on an even keel for longer than any other chancellor before him had ever managed, and might still be if he'd had the sense not to challenge the Peter Principle and step up into the top job.
Imagine my surprise then, when I discovered that the coalition are to sign off even more PFIs this year than Brown had. It seems they've changed their minds. PFIs are a great idea again.
No they're not. Especially at a time when the loan rate is gastronomical (It's eating money...). Governments can always borrow money at lower interest than private companies, and with the economy in this condition the 'private' half of the agreement is going to have to charge swingeing rental rates just to cover the interest payments.
Still, the coalition needn't worry. The real beauty of the PFI is that you get it today, you pay for it later. It's a gigantic hire-purchase scheme. They'll be long gone by the time the brown smelly stuff hits the twirly thing.
Gordon Brown thought it was a great idea and went on a spending spree. Actually, 'Spending spree' isn't quite correct since it didn't cost him anything. Private companies would build and maintain infrastructure that the public purse would normally cough up for (Hospitals, schools, libraries...) and the organisations using that infrastructure would pay them rental and maintenance. After 30-35 years the buildings would become public property. What's not to love?
The Liberals had always found plenty not to like about PFIs, and the Tories pretty quickly came to agree with them (About as long as it took for them to be replaced in government by New Labour, coincidentally). Both of the Cleggaron were scathing in their attacks on the system, and the public and the press agreed.
About the only good thing you could say about Brown's PFI offensive was that it happened during a period when interest was low, inflation was low, and like it or not, Brown was keeping the economy on an even keel for longer than any other chancellor before him had ever managed, and might still be if he'd had the sense not to challenge the Peter Principle and step up into the top job.
Imagine my surprise then, when I discovered that the coalition are to sign off even more PFIs this year than Brown had. It seems they've changed their minds. PFIs are a great idea again.
No they're not. Especially at a time when the loan rate is gastronomical (It's eating money...). Governments can always borrow money at lower interest than private companies, and with the economy in this condition the 'private' half of the agreement is going to have to charge swingeing rental rates just to cover the interest payments.
Still, the coalition needn't worry. The real beauty of the PFI is that you get it today, you pay for it later. It's a gigantic hire-purchase scheme. They'll be long gone by the time the brown smelly stuff hits the twirly thing.
dapxin # Sunday, May 1, 2011 3:20:34 AM
Deke # Sunday, May 1, 2011 10:11:10 AM