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Telegraph: Coalition Is Sticking To 'wasteful' Pfi Funding.

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'Coalition is sticking to 'wasteful' PFI funding':

http://www.telegraph.co.uk/news/politics/8457645/Coalition-is-sticking-to-wasteful-PFI-funding.html

More private finance initiative projects are being pushed through by the Coalition than in any full year of Gordon Brown's premiership, despite pledges from the Tories and Liberal Democrats to rein in the "wasteful" funding schemes.

[...snip...]

An estimated 39 PFI projects are likely to be completed this year, compared with the 32 that were sealed in 2008 and the 38 completed in 2009.

There were 34 finished in 2010, according to the research by Channel 4 News. There are also 61 schemes in "procurement", to be completed between now and March 2013, with an estimated capital value of the projects standing at £6.97 billion.

[...snip...]

Rising rates of private sector borrowing – now close to nine per cent – meant they were now worse value for money than they were before, said Mark Hellowell, a lecturer in social policy at Edinburgh University. He told Channel 4 News: "The truth is the Coalition Government have made a decision that they want to expand PFI at a time when the value for money credentials of the system have never been weaker."

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I'm not sure what the coalition agenda is for their time in power, but it's becoming increasingly apparent that it will have nothing to do with saving money and cutting deficits.

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I'm not sure what the coalition agenda is for their time in power, but it's becoming increasingly apparent that it will have nothing to do with saving money and cutting deficits.

...treasury spokesman quoted saying:

"PFI must only be used to deliver a project where it can be shown to be good value for money. Going forward on PFI projects will be considered in line with new guidance issued for major projects."

....why does the Telegraph not ask for live examples where this has been applied ....?..without it ...it's half a story ...poor reporting... :rolleyes:

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I'm not sure what the coalition agenda is for their time in power, but it's becoming increasingly apparent that it will have nothing to do with saving money and cutting deficits.

PFI is a fantastic way to get your current spending off the books and leave it for some unfortunate future administration to worry about. The stuff of political dreams.

Sooner or later the markets are going to get wise to the fact that the Tories aren't in fact doing anything serious about tackling the deficit and debt but are just very good at giving the impression that they are. A few high profile nasty cuts work wonders for credibility with the international lenders, it seems.

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PFI is a fantastic way to get your current spending off the books and leave it for some unfortunate future administration to worry about. The stuff of political dreams.

Sooner or later the markets are going to get wise to the fact that the Tories aren't in fact doing anything serious about tackling the deficit and debt but are just very good at giving the impression that they are. A few high profile nasty cuts work wonders for credibility with the international lenders, it seems.

I thought they were highly tuned rational markets..?

Strangely enough, these really big things - PFI, tax avoidance/evasion, and bonuses (esp publicly owned banks) - just seem to slip under the radar for the Tories. Plus pensions, of course. Yet that is where much of the deficit is; in many ways we are stripping education, the military, health (to some degree) and middle class benefits to make sure that extremely rich individuals and companies pay less tax, and people can still retire at 65.

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I suspect that this is just a case of following Labour's shamefully successful example. With PFI you get to have lots of photo ops in front of shiny new schools and hospitals, and you also get to punt the cost off to the next lot. For a short term focussed politician what's not to like about that?

Of course, debts with repayment terms longer than a parliament should be constitutionally prohibited. Don't see that happening this side of a collapse though.

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Of course, debts with repayment terms longer than a parliament should be constitutionally prohibited.

.... :lol: ...pfis are normally around thirty years ...try financing a new school or hospital over five.... :lol:

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.... :lol: ...pfis are normally around thirty years ...try financing a new school or hospital over five.... :lol:

If we (the taxpayers) can't afford to pay with cash then perhaps we should do without.

For real public investment (roads, railways etc. not the Labour kind) there needs to be a tighter connection between the project and the mechanism of paying for it. One example I personally like the sound of is I gather used some parts of the US: if the local authority wishes to build (say) a new school then the proposal, and the local tax rise to pay for it, are put to a referendum as one item.

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If we (the taxpayers) can't afford to pay with cash then perhaps we should do without.

For real public investment (roads, railways etc. not the Labour kind) there needs to be a tighter connection between the project and the mechanism of paying for it. One example I personally like the sound of is I gather used some parts of the US: if the local authority wishes to build (say) a new school then the proposal, and the local tax rise to pay for it, are put to a referendum as one item.

...we have debt of £1trillion + and deficit of £160billion+..we have no money....what you propose is we stop spending on everything ....no pensions ,no teachers salaries, no bin collections etc etc ...we just stop UKplc ....that is not viable.... :rolleyes:

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...we have debt of £1trillion + and deficit of £160billion+..we have no money....what you propose is we stop spending on everything ....no pensions ,no teachers salaries, no bin collections etc etc ...we just stop UKplc ....that is not viable.... :rolleyes:

We are going to have to match outgoings to income at some point, no matter how much the BBC squeals with indignation.

The good news is that doing so won't mean no teachers, just perhaps fewer and poorer paid teachers.

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...we have debt of £1trillion

Oh and and as for the debt; I suggest we give the bondholders the addresses of the members of the last Labour cabinet, then declare it no longer the UK's problem. Gordon, the Eds and their friends created the debt, they can pay it back.

Edited by the shaping machine

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We are going to have to match outgoings to income at some point, no matter how much the BBC squeals with indignation.

The good news is that doing so won't mean no teachers, just perhaps fewer and poorer paid teachers.

...that is why the so called austerity plan is right ...the BBC should be shut down ...complete waste of public money...but we still must operate a budget to keep going ..and that involves borrowing ...under Labour it means borrowing to the state of bankruptcy.... :rolleyes:

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Oh and and as for the debt; I suggest we give the bondholders the addresses of the members of the last Labour cabinet, then declare it no longer the UK's problem. Gordon, the Eds and their friends created the debt, they can pay it back.

...no you have that wrong...they inherited a surplus to the deficit in their first few years of Government after '97....it is now deficit £160billion plus ....that is not very bright...the debt is the accumulation over successive Governments but Labour's policies have not helped the direction for reduction.... :rolleyes:

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...that is why the so called austerity plan is right ...the BBC should be shut down ...complete waste of public money.

Agree, shutting down GuardianTV the BBC should have been priority number 1.

But we still must operate a budget to keep going ..and that involves borrowing.

Why must it do so? Does your personal budget require borrowing? (a mortgage comes under investment).

under Labour it means borrowing to the state of bankruptcy.... :rolleyes:

Under the coalition it seems to mean the same thing just more slowly.

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My theory is that they've probably discovered PFI boosts demand for debt.. and thus increases M4 in a way that isn't just about pouring more debt down the throats of home buyers.

I expect it pales into insignificance alongside mortgage debt, but still.. every little helps (if you're desperate to keep the money supply inflating).

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...no you have that wrong...they inherited a surplus to the deficit in their first few years of Government after '97....it is now deficit £160billion plus ....that is not very bright...the debt is the accumulation over successive Governments but Labour's policies have not helped the direction for reduction.... :rolleyes:

Ok then, Labour inherited a debt of around 300 billion, and their deficit policies will cause it to top 1000 billion before it plateaus. Therefore the last Labour cabinet only have to find 700 billion. I think I can live with that. :)

Edited by the shaping machine

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Agree, shutting down GuardianTV the BBC should have been priority number 1.

Why must it do so? Does your personal budget require borrowing? (a mortgage comes under investment).

Under the coalition it seems to mean the same thing just more slowly.

...if you think a mortgage is an investment you must be a bookie....as for the country borrowing ...have you ever seen a tanker do a tight U turn ...no ...and it is the same with the economy ...you can't just stop borrowing overnight to pay for Labours waste and tomorrows public sector services and salaries...including armed forces police, firemen etc ...are you Noddy's brother....?... :rolleyes:

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Ok then, Labour inherited a debt of around 300 billion, and their deficit policies will cause it to top 1000 billion before it plateaus. Therefore the last Labour cabinet only have the find 700 billion. I think I can live with that. :)

..think Tony Blair is on track to pay it off for us plus plenty of change for himself.... :)

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My theory is that they've probably discovered PFI boosts demand for debt.. and thus increases M4 in a way that isn't just about pouring more debt down the throats of home buyers.

I expect it pales into insignificance alongside mortgage debt, but still.. every little helps (if you're desperate to keep the money supply inflating).

Do politicians really care about such things? Having shiny hospitals to open strikes me as more likely (sadly).

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...if you think a mortgage is an investment you must be a bookie....

I think a mortgage could be argued to be an investment the same way a new high speed rail line could. That doesn't mean either are good investments...

have you ever seen a tanker do a tight U turn ...no ...and it is the same with the economy ...you can't just stop borrowing overnight to pay for Labours waste and tomorrows public sector services and salaries...including armed forces police, firemen etc ...are you Noddy's brother....?... :rolleyes:

The tanker isn't turning, it's still headed for the rocks just at a slower speed than before. Pain now or more pain later, you choose.

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I think a mortgage could be argued to be an investment the same way a new high speed rail line could. That doesn't mean either are good investments...

The tanker isn't turning, it's still headed for the rocks just at a slower speed than before. Pain now or more pain later, you choose.

...property is a risky investment ..always has been ....the tankers momentum is difficult to control due to Labours scorched earth policy to accelerate waste as the election approached ....Liam Byrne declared the money has all gone... for once he was right ...the turning will be slow to start and will be a wide arc.... :rolleyes:

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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