So more of the same then (Tories tax increase pledges)

[BoredBloke]

"A huge song and dance has been made over the PFI Hospital deals and PFI IT projects."

"However your average chav in the street is too dumb to understand. Ergo if the Tories said they would increase tax thresholds and abolish tax credits they will think they have lost, out when in point of fact they will not have to worry about taxman clawing back money later."

No my point is why is the media not making a big song and dance about GB's dodgy accountancy. Why is the media not promoting a tax system which is not as complex as the one we have.

It doesn't really matter what the Tories say until they can get the popular media onside, or the current lot make themselves so unpopular that anybody would be better.

[DaveB]

Tony, PFI was a Conservative idea...

The Private Finance Initiative was launched in November 1992, a financial mechanism to obtain private finance which could satisfy political need to increase investment in the infrastructure without affecting public borrowing, guarantee large contracts for construction companies and new investment opportunities for finance capital. Most politicians had a short-term perspective but capital was looking longer term. The 'crisis' in the flow of PFI projects between 1995-97 was partly caused by demands for state financial guarantees and partly because PFI consortia were flexing their muscle to ensure contracts reflected their interests. In one sense, PFI was a natural progression given the Conservative's privatisation and economic policies in the 1980s. The privatisation 'machine' was never going to stop, at least not of its own accord. PFI is privatisation by stealth, privatising those parts which could not, at least politically, be sold-off as complete services. It is the route to the ultimate marketisation and privatisation of health, education and social services.

"Taxpayers no longer need to own hospital buildings" claimed the Treasury (Private Finance Panel, 1996 p7).

[zathras]

Tony, PFI was a Conservative idea...

The Private Finance Initiative was launched in November 1992, a financial mechanism to obtain private finance which could satisfy political need to increase investment in the infrastructure without affecting public borrowing, guarantee large contracts for construction companies and new investment opportunities for finance capital. Most politicians had a short-term perspective but capital was looking longer term. The 'crisis' in the flow of PFI projects between 1995-97 was partly caused by demands for state financial guarantees and partly because PFI consortia were flexing their muscle to ensure contracts reflected their interests. In one sense, PFI was a natural progression given the Conservative's privatisation and economic policies in the 1980s. The privatisation 'machine' was never going to stop, at least not of its own accord. PFI is privatisation by stealth, privatising those parts which could not, at least politically, be sold-off as complete services. It is the route to the ultimate marketisation and privatisation of health, education and social services.

"Taxpayers no longer need to own hospital buildings" claimed the Treasury (Private Finance Panel, 1996 p7).

PPI (renamed in a transparent attempt to hide the fact that it was a Tory policy) as it was originally known was indeed a Conservative idea but like a lot of problems with policies stolen by New Labour it is in the implementation that the problems arise. It's all very well having such agreements but they have now become so one sided that they represent poor value for taxpayer's money. It's partly because of the lack of commercial negotiating skills in the civil service but also because of the political pressure. Even where there is the required level of negotiating skills the need for PFI is driven by political considerations, so the choice not to enter into the contract is not even an option.