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Tuesday November 02, 2004 12:44
by Donnacha O Briain - DAPSE
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Jump To Comment: 1There are many reports on PPP/PFI's in past issues of the UK magazine Private Eye. One issue two or three months ago had a large section devoted to the subject and there are small articles every week most of which show how costly and inefficient these financial arrangements are for the people (not the companies who are raking it in).
One of the prime benefits of these schemes for local authorities is to get new infrastructure but without large loans. In fact they turn out to be bigger loans with higher repayments but the capital sum is kept off the balance sheet because the local authority does not get a loan, it "leases" the properties/services back from the contractor at inflated rates.
So, it looks good for the government accountants by whatever fucked up standards they work with but the people end up paying a lot more for the service which is often way below existing standards.
PPP's are robbery.