New rules, which come into force at the start of April mean the end of the “PFI con” on the Scottish public.
Changes to international accountancy rules mean that the costs of Labour’s lavish private finance deals will have to be placed on the government books.
Across the UK the introduction of International Financial Reporting Standards could add £216 billion to government debt – and means that the PFI con, of building projects without accounting for their cost is officially over.
The Scottish Government and Local authorities will have to find £700 million to pay debts to private firms for PFI/PPP contracts this year – with over £1 billion a year due to be paid out by 2017.
Scotland’s total PFI/PPP repayments are currently estimated at £30 billion.
Mr FitzPatrick said:
“For a decade Labour conned the public. Now the PFI con is over.
“International rules will finally introduce some responsibility into the system of debt that Labour built up – and we will see for the first time the true cost of Labour’s age of irresponsibility.
“While the SNP is investing billions of capital in schools, hospitals and transport infrastructure and has brought forward investment to support Scotland’s construction industry through the recession Labour have simply left a legacy of debt.
“Labour did not fund new schools or new hospitals. Their irresponsible borrowing at rip-off rates that will leave future generations of Scots indebted to the banks for decades to come.
“With PFI projects in England now having to be lent money by the Government – money the public sector will then have to pay back to private banks the corruption of PFI has finally been exposed for all to see.
“International rules have brought an end to this off budget and off balance sheet scam.
“Scottish Labour may live in a dream world where schools and hospitals are built on the never-never but the SNP will not see such irresponsibility with Scotland’s cash. Labour must acknowledge that their “PFI con” has been exposed.”