Greens say Private Finance Initiatives should be 'nationalised'

23 September 2011

Following today’s revelation that more than 60 hospitals cannot afford the rising cost of private finance initiative schemes, the Green Party calls on the Government to call these PFI schemes in.

The NHS faces a bill of £65billion for new hospitals built under PFI schemes and some NHS Trusts face annual repayments of more than 10% of their turnover. It has been claimed that across 154 different PFI projects, over £500 million of profits have been generated.

Penny Kemp, Green Party spokesperson said, “These PFI companies make huge profits. The National Audit office claimed one deal on a hospital in Bromley gave a return for the PFI contractors of more than 70%. In a time of economic austerity, this is scandalous.

"Furthermore, even the Government has no idea how much profit is being generated by the selling of private finance initiatives by construction and investment operators to other funds on a secondary PFI market.”

The Green Party believes that Private Finance Initiative needs to bought back from the companies and shown as Government debt rather than the dubious accounting stream, which does not require the capital cost of the schemes to be shown in the Government books.

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