When a PFI is a PFI

Private Finance Initiatives (PFI) have certainly come in for a lot of flack over the years - recently I saw a highly critical programme on PFI through Channel 4's Dispatches. Or see this article in The Telegraph by the documentary film maker.

I'm certainly not ideologically opposed to the private sector making money (that's what they do). But I have to admit that I don't always think the public sector has been able to use PFI in a way that maximises the use of public resources. And my ideology certainly insists that public money be spent transparently.

But the LGA has highlighted two examples of where a Private Finance Initiative has become a Public Finance Initiative.

Projects nearing completion include:
• This month Huntingdonshire District Council will officially open a £6.5million new state of the art health centre which the PCT will rent back from the Council
• Wychavon District Council is building a £6.7million hospital and health centre - the 26 bed hospital and GP surgery with 13 doctors will be completed late September.

I think one of the problems of PFI may have been a cultural divide. The private sector is amazed that the public sector is annoyed when they make big profits and the public sector cannot understand why the private sector gets so sniffy about clawbacks. I suppose it's early days, but this might work out really well - there won't be the big cultural divide and presumably both partners can be minded to be more flexible and more open.


Back to main page