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Pfi Finance – The Facts Laid Bare


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One word re maintenance "CAPITA"

The Multi Billion pound leech of NHS and Education finances that you have never seen advertised or mentioned - anywhere!

Only Staff in NHS/Education authorities mainly deal with this lot.

We found out recently CAPITA also run a contract with the BBC TV licence gestapo.

They are NOT BBC employees who bang on your door calling themselves 'inspectors from the BBC licencing'!

PFEYE is an out and out Fraud.

UK citizens paying out huge amounts over the odds and with unrestricted contracts made, over the years the financers can rack up the lolly rates as much as they feel like!

The public just have no idea how much these PFi's cost them

(hidden coz payment is spread out over future years. Any Govt ministers to blame will be long gone!)

Let alone easily done fraud/ preferential treatment towards those in the same nudge nudge, wink wink, secret handshake club who own the PFi building businesses!

I sometimes deal with government outsourcing contractors. When they pull up in their Bentley, it does kind of make you wonder.

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With each passing day, I become more and more convinced that there is going to be a series of failed gilt auctions at some point in the next twelve months. When that happens all bets are off and house prices will be the least of our worries.

Is that when it becomes brown trouser time?

What amazes me is that so many in the Labour party want to go along with this. Surely they aren't all morons?

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What amazes me is that so many in the Labour party want to go along with this. Surely they aren't all morons?

I don't think any of them are complete morons. I think Brown is a very competent economist.

Unfortunately for all of us, these pale into insignificance next to the fact that, first and foremost, they are all POLITICIANS, and crave power over (and to the detriment) of everything else.

"Power is too important to be given to the people who want it" and all that...

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Is that when it becomes brown trouser time?

What amazes me is that so many in the Labour party want to go along with this. Surely they aren't all morons?

It's probably a consequence of more and more politicians going straight from University to politics with none of this inconvenient 'having to function in the real world' stuff. If politics is your career as opposed to something you do because of conviction then you are under far more pressure to toe the party line.

After all, this is meant to be a left wing government, yet it has presided over continuing privatisation, this PFI madness, throwing money at management consultants for no visible result, letting the banks run wild, tuition fees, aggressive foreign wars.. pushed through generally against public opinion, with the labour leadership knowing that they can keep enough of their own people in line through promises of promotion, and that pursuing right wing policies gives the tories nowhere to go politically.

Good tactical politics, a disaster for democracy and the country..

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It's probably a consequence of more and more politicians going straight from University to politics with none of this inconvenient 'having to function in the real world' stuff. If politics is your career as opposed to something you do because of conviction then you are under far more pressure to toe the party line.

+1

but don't you know that requiring politicians to have "done something" in life is restrictive and means Parliament will be the preserve of an elite? Isn't it so much better with quotas for gender and background?

Actually, Parliament should be elitist and not reflect the constituent parts of the public - it is supposed to be composed of the best, cleverest and most experienced. That's why they get to make laws. However our current obsession with averageness in everything means we have to fill it with nobodies who have done nothing, like the PM.

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Are you being serious or is that just sarcasm? If it's a serious statement please give evidence of why he's a competent economist.

Bad choice of word on my part. On reflection I should have perhaps have said he has a sound understanding of macro economics.

He got caught up in the whole leverage up and never pay it back 'new paradigm' stuff (as did 95% of the population - present company excluded, of course ;) ) and got far too close to the bankers, believed his own hype when the crisis started and then sold the country down the river in a desperate attempt to cling to power. :angry:

But I stand by the fact that he has not screwed it up because he doesn't understand economics, but because above all he is a politician, and a fairly second rate one at that!

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One word re maintenance "CAPITA"

The Multi Billion pound leech of NHS and Education finances that you have never seen advertised or mentioned - anywhere!

Only Staff in NHS/Education authorities mainly deal with this lot.

We found out recently CAPITA also run a contract with the BBC TV licence gestapo.

They are NOT BBC employees who bang on your door calling themselves 'inspectors from the BBC licencing'!

Capita’s contract for education delivery of literacy and numeracy to schools approx £100 million bye bye!

http://news.bbc.co.uk/1/hi/education/8120152.stm

Riddle me this? Was the change motivated to benefit education or to save money?

Me thinks we'll see further NULab policy changes which in reality are public sector savings by stealth :ph34r:

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What about the transfer of risk from the public sector to the private sector?

What about the extra scrutiny and diligence that the private sector brings to get things right?

The financing of these projects is not the whole story - effective management and running of the projects can lead to far greater savings.

Also, why would the government want to hide the 'expense' of building a new hospital or school? - it isn't exactly analogous to a dodgy expense claim. Surely we should be happy the government is investing in Health and Education etc?

Risk: PFI schemes are Hospitals, schools, roads and rail. Maybe I've missed some, but _what_ risk?

Scrutiny + diligence: Why are the civil service now incapable of diligence and scrutiny? These are their traditional strenghts.

Effective management + runnings for savings: How can a 3rd party provide savings yet turn a significant profit for sharegolders? Either by paying less and driving down national standards of living or cutting corners to provide a substandard service, and driving down national standards of living.

The whole thing is a nonsense. It can only be beneficial if the contracts are not inflation linked and hyper inflation takes place. But I bet they are.

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PFI was designed to kick the true cost of these projects down the road. Effectively, the Government has already spent a large chunk of future years tax receipts with these projects. The result is that when tax receipts tank, the Government isn't able to reduce spending on PFI as it is bound to the contract. The only solution will be massive spending cuts elsewhere.

With each passing day, I become more and more convinced that there is going to be a series of failed gilt auctions at some point in the next twelve months. When that happens all bets are off and house prices will be the least of our worries.

PFI is a perfect example of nuLabia spin. They claim the credit for capital investment, but this is really pre-funded by the private sector, which then gets re-paid over 10-25 years, including maintenance/management of said assets.

So PFI is really Hire Purchase, except at the end the taxpayer doesn't own the assets ! You really couldn't make this up could you ?

Risk transfer has been shown to be b0llocks on several PFI/PPPs e.g. the London Underground, Skye bridge, road construction, Norwich hospital, Olympic Athletes Village etc. The contractor screws up and the taxpayer buys them out - where's the risk transfer?

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Bump.

The scandal of PFI, its waste, the poor deal for the taxpayer and the poorly balanced contracts involved should not be forgotten.

More about photo opportunities and politics than sound investment and budget management. Another one of Gordon's magic tricks.

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Guest sillybear2
What about the transfer of risk from the public sector to the private sector?

Like Metronet or any other PFI/PPP project that gets into trouble? They simply drop it back into the lap of the government or beg them for more money and new contract terms to always guarantee them a profit.

Edited by sillybear2
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