Link to this page: http://www.socialistparty.org.uk/issue/635/10104
From The Socialist newspaper, 18 August 2010
Private Finance Initiative: A licence to print money
THE COST of financing Private Finance Initiative (PFI) schemes in the National Health Service has risen to a staggering £65.1 billion pounds.
PFI schemes account for all new hospital buildings and refurbishment programmes as well as providing many services in the NHS.
PFI schemes amount to a licence to print money for the private consortiums awarded the contracts. They are the equivalent of someone buying a house using a high-interest credit card instead of a low fixed interest mortgage. It means that billions of pounds in repayments each year, spread over 30 or more years, are drained from health budgets to finance the profits of big business companies.
Consequently many health trusts' finances are deep in debt and trusts are obliged to make cuts in the services they provide, including the closure of A&E and maternity departments. The move to establish more semi-privatised 'foundation hospitals' will inevitably mean even more cuts.
Healthworker condemns rip-off PFI schemes
"PFI schemes are a gigantic rip-off. Mid Yorkshire Hospital Trust is paying £40 million a year over 35 years for two hospitals which actually cost £320 million!
These PFI hospitals will have 60 fewer beds and potentially 200 fewer jobs. Another 150 workers are having their wages cut through 'down banding' [ie regrading their jobs downwards].
The money handed over to fund this PFI scheme is index-linked to inflation for the duration of the contract. This is at the same time as our pay is being frozen.
These PFI contracts should be cancelled and all of the health service renationalised."
Adrian O'Malley, Unison branch chair, Mid-Yorkshire Health (personal capacity)
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In The Socialist 18 August 2010:
International socialist news
Pakistan: Workers' solidarity urgently needed
Floods in Pakistan bring devastation - poor suffer most
Socialist Party youth and students
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Uni bosses say cuts will cause closures
Socialist Party editorial
Forecasts of fragile economic growth
Socialist Party news and analysis
Cameron sticks the boot into our council housing
Private-profit company granted 'snoopers' charter'
Private Finance Initiative: A licence to print money
Socialist Party campaigns
Coventry Against the Cuts challenge councillors' 'legal obligation'
Northern Ireland: Belfast Stop the Cuts Alliance established
Bromley care workers fight privatisation and job cuts
Defend Our Community Services launched in Bracknell
Cuts devastate mental health services
Socialist Party Marxist analysis
Socialist Party workplace news
Kirklees Unison strike ballot launched
CWU members accept BT pay deal
Debate how to fight back at Socialism 2010
Tube staff vote for action against cuts
Jobs under threat at Ministry of Justice
Airport workers win improved offer from BAA
Socialist Party events
Socialist Party summer camp - book now!
International socialist news and analysis
Russia's raging wildfires - a crisis of government policies
Socialist Party news and comment
Bradford must organise against the EDL
Birmingham: Community says 'No' to racist spy cameras
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