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SNP demands end to PFI deals

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Published Date: 19 December 2006
A REVIEW ordered by the Scottish Executive into the private finance deal used to build West Lothian College should be the trigger for an end to new PFI and PPP schemes, Scottish Nationalists said today.
SNP education spokeswoman and Lothians MSP Fiona Hyslop said the review of the West Lothian College scheme followed in the wake of the failure of similar schemes for the Skye Bridge and Inverness Airport.

She said: "This is yet another example of the costly failures of Labour's costly PFI and PPP schemes.

"Who in their right mind would plan to use PFI to deliver vital projects like the new Forth crossing or better schools and hospitals when time and time again they are proved to be flawed?"



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1

livilion,

livingston 19/12/2006 12:33:46

Aw, what's wrong with nothing down and pay forever?

2

livilion,

livingston 19/12/2006 12:56:18

Who in their right mind could sanction such a deal for this college for £18m, 7 years ago, be £4m in debt aready, and looking at near treble that in two decades?

How much are we paying shareholders every year, and when can we expect to be clear of this financial millstone?

These buildings have a very limited shelf life, particularly when the quality of PFI constructions are considered.

What is the contingiency plan for eventually replacing these buildings?

Edinburgh University's Centre for International Public Health warned the payments from health boards across Scotland to private financiers will increase from the £107million a year to £510m a year by 2011.

At this rate all we'll be able to do is keep borrowing to meet the interest charges, and under Barnett we could be heading straight to insolvency.

3

Allan (Glasgow),

19/12/2006 13:21:16

Livilion,

Couldnt agree more. The Govt use these new builds as an example of the "massive investment" they claim in public services. The truth is that we are storing up real trouble for the future and leaving bills to our children to pick up. I have nothing principle against PFI/PPP but the problem with it is that the public sector has not been adept at managing the contractors. If the contractual agreements are not watertight and the contractor project management are not robust, the taxpayer will get hit by a double whammy.

One of my friends is the architect for new school builds in a council area and alredy he is exasperated as the contractor is cutting corners on spec but the council is not able/willing to pick them up on it

4

livilion,

livingston 19/12/2006 14:31:45

Aye, even my old granny used to say; Buy cheap-buy twice, penny wise-pound foolish.

You might be expected to imagine our elected officials would display a wee bit more 'savvy' than a 93 year old grandmother.

5

Seanvi,

19/12/2006 16:44:09

I think its about time people took what the nationalists are saying at face value . People are far too hung up on what they perceive they used to be , badly organised ect . which some of may be true . But from where im standing they have thier policies bang on .

And naturally their gonna be fighting for Scotlands interests because they dont have to answer to London . because even a fool must realise ,, that Scotlands intrests arent always the same as Londons intrests . and of course 9million strong london is gonna act in thier own intrests ..

its not sentiment , its not anti scottish , its just business .

6

Scottish Unionist,

20/12/2006 01:51:51

Yes and what will the SNP replace it with? Is this just another example of their complete aversion to private profit?

7

Seanvi,

20/12/2006 02:26:26

I never understand the privatisation of everything. What will be the point of government then ? Talk about turkeys voting for christmas . but then again , the ones pushin through all these PFI schemes are likely to be retired on thier big fat pensions before they completely collapse.

8

livilion,

livingston 20/12/2006 09:10:28

#6
What will you replace these buildings with, when all of the revenue coming into the country is being soaked up in PFI interest payments?

Like the Forth Road Bridge these buildings will have to be replaced sooner rather than later, maybe 30years or so, by which time we will be up to our 'credit limit' and struggling to meet the PFI repayments.

What then?

Remember, with this type of financing we not only have our regular 'credit card bills' to meet, but also dividends to pay to the private shareholders who put up the initial capital to build these projects.

Unless of course, you know better.


 

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