Blair defends PFI as NHS trusts face bankruptcy

[AtW]

The problem wasn't PFI the problem was in the way it was implemented.

Why would private compaines be interested to fund upfront development of some facilities if they could not charge MORE than bank rate at the time? It's not like those developers got their money money anyway - they'd have to borrow that money and repay same money with higher interest than Govt would get PLUS extra profit for them PLUS unknown risks over 30 years period.

The only reason it makes any sense whatsoever is to keep debts off the books and know that by the time this tulip hits the fan it will be another Govt to deal with it.

[SueEllen]

The problem wasn't PFI the problem was in the way it was implemented.

The contracts given out by civil servants were written as a license for the private companies to print money regardless of what happened and how any services are performed.

There are enough stories going around before this happened to show how poorly the maintenance, cleaning and portering were being carried out but the Trusts, etc still had to pay for these services. (Channel4 did quite a few.)

[AtW]

Six other NHS trusts face joining South London Healthcare in "administration" as they have taken on projects viewed by ministers as "unsustainable", it has emerged.

South London Healthcare NHS Trust will be the first in the country to be put under the control of a special administrator tasked with securing its finances.

The schemes saw private firms building hospitals, leaving the NHS with an annual fee to pay over around 30 years.

The total value of the NHS buildings built by Labour under the scheme is £11.4bn. But the bill, which will also include fees for maintenance, cleaning and portering, will come to more than £70bn on current projections and will not be paid off until 2049. ( AtW's comment: somebody show Mitch this as it shows the difference between "investment" and "lending" ) )

Some trusts are spending up to a fifth of their budget servicing the mortgages.

Across the public sector, taxpayers are committed to paying £229bn for hospitals, schools, roads and other projects with a capital value of £56bn.

But former Prime Minister Tony Blair told Sky News the contribution PFI had made to rebuilding the country's infrastructure was "immense".

"PFI has been copied around the world," he said. "I am sure, as with any system, you will get a situation when sometimes it doesn't work or people will get into difficulty as they do in the non PFI situations, but if you look at PFI overall and what it delivered in terms of hospitals, schools and renovations to the infrastructure of the country it has been immense."

The Tories called on Labour to "apologise for leaving hospitals in a debt crisis". (AtW's comment: oh FFS, apologise? Tories are in Govt - put in jail people who signed such tulipy contracts starting with Bliar - THEN apologise for not doing it ealier)

South London Healthcare NHS Trust, which runs three hospitals, has been criticised over standards of care after being saddled with large debts from PFI deals.

Despite efforts to improve its financial performance, it is still thought to be on track to lose between £30 and £75 million a year for the next five years.

It was formally warned last night that it would be the first NHS body to be taken over by Whitehall-appointed administrators under the “unsustainable providers’ regime”.

Source: Blair defends PFI as NHS trusts face bankruptcy - Telegraph

No wonder taxes are so high: £11.6 bln total value and £70 bln to repay, enough to build like 10 aircaft carrier groups and be an equal partner with USA.