Firms make a killing on PFI deals awarded under labour

Private contractors have pocketed hundreds of millions of pounds of profits in the past four years by exploiting deals that were controversially awarded to them by the last Labour government.
Companies that were awarded contracts to build and maintain state schools for 25 years have been doubling their money by “flipping”, or selling on, the Private Finance Initiative (PFIs) projects just four years after finishing them.

The Independent’s findings shine a new light on how private companies have made fortunes in pure profit from the rising value of the schools and hospitals they have built – value which critics say could have been retained by the taxpayer.

Margaret Hodge the Labour MP acknowledged that many of the worst PFI and PPP cases were negotiated by the Labour government under Tony Blair and Gordon Brown, saying: “I’m afraid we got it wrong. I was a supporter at the time..."

John Lister, of NHS pressure group Health Emergency, said: “We now have a situation where several major hospitals are in major financial difficulties because of the debts and fixed unitary charges they are saddled with from PFI deals.”


http://www.independent.co.uk/news/uk/politics/exclusive-how-private-firms-make-quick-killing-from-pfi-9488351.html

Didn't they do well!?


Sheer economic incompetence.

Brown was addicted to these deals. In addition to his spending in the open which was profligate he signed loads of really bad deals which don't appear on book. He was the most Imprudent Chancellor ever. Only Dodo Labour supporters with very limited Arithmetic skills think otherwise.

We have loads on here. More in fact than the dodos can count.