Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: http://www.socialistparty.org.uk/issue/570/7036

From The Socialist newspaper, 11 March 2009

Scrap PFI Now!

The Socialist Party

The Socialist Party's 'Grim Reaper' joins the Keep Our NHS Public 'Defend our health service' protest outside the Department of Health on the 60th anniversary of the founding of the health service, photo Paul Mattsson

In yet another humiliating blow to its pro-big business economic policy the New Labour government is providing state 'loans' of up to 2 billion to prop up the Private Finance Initiative (PFI).

Adrian O'Malley, Unison health service group executive Yorkshire and Humberside (personal capacity)

The 2 billion announced by treasury minister Yvette Cooper is an admission that the private sector is incapable of delivering much needed new infrastructure projects. It puts the government in the ludicrous position of being a lender of the money that it is borrowing!

Having opposed PFI while in opposition, New Labour enthusiastically implemented PFI throughout the public sector once elected. PFI was invented by the last Tory government to keep public infrastructure projects off the public spending figures and allegedly transfer the risks from the government to the private sector.

Under PFI, hospitals, schools, roads etc have been built by private consortia. These are often made up of banks who financed the schemes, and building firms who built, maintained and managed the projects. The projects are then leased back to the government at hugely inflated rates for anything up to 35 years.

The 'PFI industry' became extremely profitable for the capitalists involved as their income was guaranteed and their so-called risks were low. The costs to the NHS are expected to increase from 470 million in yearly repayments in 2007 to 2.3 billion a year by 2014! These so-called investors get a six-fold return on the cash they put up.

Even this is not enough for the banks, who have now stopped the flow of new money. Hence an 8 billion-gap in funding for new projects in waste, education and transport.

The PFI scheme at my Trust, Mid Yorkshire Hospitals, is a 300 million deal with Consort Healthcare which is funded by the Royal Bank of Scotland. The RBS has been virtually nationalised during the credit crunch, yet we are still facing hundreds of job losses in the coming months as the Trust attempts to meet the exorbitant repayment charges.

Dave Prentis, general secretary of the public sector workers' union Unison, has said the loans are "throwing good money after bad" and it is "time to make a clean break with PFI". This is correct, but Unison should not just be calling for no new PFI deals to be signed, but for the nationalisation under democratic control of every existing PFI. The union leadership should be outlining a strategy to fight for this.

My Unison branch has publicly called for the nationalisation of the Private Finance Initiative and the return of all privatised staff employed within it to the public sector. This demand is popular with our members. The local media picked it up and asked why the government is borrowing money from itself at higher rates than it would pay if it funded the hospital itself.

We have sent motions to Unison's health and national delegate conferences calling for a national campaign for nationalisation and for Unison to use its resources to campaign against PFI.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 11 March 2009:

Fight against unemployment

Youth Fight for Jobs


War and terrorism

Northern Ireland: Sectarian violence returns

Guadeloupe: Workers' general strike victory


Socialist Party campaigns

Scrap PFI Now!

No college cuts in Wales

Tyne and Wear Metro

Council pay fiasco


Socialist Party feature

Miners' strike 1984-85


Socialist Party workplace news

Dundee workers occupy to fight for rights

Thousands of workers affected by construction industry blacklist

Construction workers' dispute: National action needed

Airwave jobs strike

Amicus: Good left vote

South Eastern Trains


 

Home   |   The Socialist 11 March 2009   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

PFI:

trianglePFI privateers dodge tax

triangleSheffield Labour council threatens peaceful protesters with prison

triangleNo cuts - hands off King George A&E!

triangleNHS meltdown - fight the Tory cuts

triangleTories wreck our NHS

Unison:

triangleBrighton Uni lecturers strike against job cuts

triangleLeeds college workers protest poor pay rises

triangleHundreds turn out for rally aimed at removing west Wales Tory MP

triangleThe fight against racial discrimination is tied to fighting against capitalist austerity

Public sector:

triangleLocal government pay: fight for the 5% claim, fully funded

trianglePCS union says no to pay misery

triangleAfter the budget - unions must launch pay fight

Nationalisation:

triangleRetail sector crunch: nationalise to save jobs

triangleObituary: Derek Robinson, car workers' leader, 1927-2017

Reports and campaigns

Reports and campaigns

16/12/17

Haringey

Blairite council 'all ears' to rich property developers

14/12/17

Waltham Forest

Stop the rotten redevelopment plan, demand residents

13/12/17

London

Six months on - still no justice for Grenfell

13/12/17

Fracking

Movement growing against fracking giant Ineos

13/12/17

Devon

Totnes MP uses coffin controversy to distract from brutal NHS cuts

13/12/17

Miners

Tory plan to hold dinner at coal mining museum defeated

13/12/17

Bradford

Bradford campaign to save children's services launched

13/12/17

South London

South London health bosses' cover-up

13/12/17

Blacklisting

Unite day of action against blacklisting

13/12/17

Brighton

Brighton victory

13/12/17

Newham

Newham anti-academies strikes

13/12/17

Tamil Solidarity

Tamil Solidarity and Refugee Rights activists meeting

12/12/17

Woolwich

Support the Crossrail Woolwich walkout

7/12/17

Blacklisting

Unite protest against blacklisting

7/12/17

RMT

Anti-DOO lobby of Liverpool's transport committee

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle14 Dec Stop the rotten redevelopment plan, demand residents

triangle13 Dec Six months on - still no justice for Grenfell

triangle13 Dec Movement growing against fracking giant Ineos

triangle13 Dec Totnes MP uses coffin controversy to distract from brutal NHS cuts

triangle13 Dec Trump's incendiary Jerusalem statement reignites Israeli-Palestinian...

triangle13 Dec Labour 'purge' furore really just democracy

EU parliament, Strasbourg

triangle13 Dec Brexit deal no solution to Tory rifts

More ...

triangle18 Dec Leeds Socialist Party: Religion and Socialism

triangle19 Dec Bristol North Socialist Party: Christmas social

triangle21 Dec Wakefield Socialist Party: Socialists and the National Question

triangle6 Jan Socialist Party national women's meeting

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Archive

Archives:

December 2017

November 2017

October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

April 2017

March 2017

February 2017

January 2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Legal

SP RSS feed RSS

Platform setting: = No platform choice

V2