John Hemming's Web Log John's Reference Website
Monday, January 16, 2006
  PFI encountering problems in health
The linked story is a story in "The Times" which refers to the costs of PFI.

It also includes the following:
"The issue was brought into focus last month by an admission by Queen Elizabeth Hospital trust, in Woolwich, that the trust was technically insolvent."

The fact is that it is only adjustments by the Treasury for Risk that make PFI appear superficially OK. In fact although leasing a van for a short period is not necessarily a bad idea leasing a hospital for a long period is. You could not lease a hospital for a short period. Hence financially it is a really bad idea.
 
Comments:
Once I finally found out what PFI is I must say I thought it was stupid.
But it saves a bit of money in the short term so Brown can try and look like he's prudent.
 
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