Tag Archive for PFI

NEW RULES MEAN END OF “PFI CON”

April 1, 2009 Joe FitzPatrick MSP No comments

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.”

SCRAP PFI SAYS LABOUR’S BUSINESS AMBASSADOR

March 9, 2009 Stewart Hosie MP No comments

‘GROWING ALARM’ AMONGST ARCHITECTS ABOUT PFI

The SNP has seized on remarks by Labour peer and UK government ‘Business Ambassador’ Lord Rogers who has called for PFI to be scrapped in an interview with the architect’s magazine Building Design.

In the interview the peer, described as ‘New Labour’s favourite architect’ also said the £2 billion of taxpayers’ money which has just been poured in to prop up the failing system should have been spent directly via traditional funding mechanisms.

His remarks were also echoed by other prominent figures in architecture who are sounding “growing alarm” about the troubled state of PFI.

Commenting on Lord Rogers remarks SNP Treasury Spokesperson Stewart Hosie MP said:

“In the week Labour put £2 billion of taxpayers money into PFI, this is incredibly embarrassing for the Labour party as they meet in Dundee.

“For New Labour’s favourite architect to blast their favourite, but discredited, funding model only shows how much PFI is dead in the water.

“This bail-out is a humiliation for the Chancellor, and proof positive that PFI is the economics of the madhouse.

“Why is public money being used to prop up a failing system that gives such a bad return compared to traditional public procurement?

“The cost of propping up Labour’s PFI projects will make Sir Fred Goodwin’s pension arrangements look like pocket change.

“As if any further evidence was needed, the grotesque folly of building public services through private finance is now plain to see.

“Instead of sensible public investment the Labour Government has been ripped off by a credit card style con.”

CHANCELLOR PROPS-UP PFI IN LATEST LABOUR BAIL-OUT

March 4, 2009 Stewart Hosie MP No comments

SNP Treasury spokesperson, Stewart Hosie MP, has described confirmation that the UK Government is to lend up to £2bn of taxpayers’ money to prop up Private Finance Initiative projects, as a humiliating bail-out.

Mr Hosie said:

“Labour have bailed out the bankers, and now Alistair Darling seems set to prop-up PFI projects.

“This bail-out is a humiliation for the Chancellor, and proof positive that PFI is the economics of the madhouse.

“Why is public money being used to prop up a failing system that gives such a bad return compared to traditional public procurement?

“The cost of propping out Labours PFI projects will make Sir Fred Goodwin’s pension arrangements look like pocket change.

”As if any further evidence was needed, the grotesque folly of building public services through private finance is plain to see.

“Alistair Darling has absolutely no financial credibility left. PFI is a millstone round the UK’s neck and he is set to add more weight to that debt millstone and burden taxpayers with even more taxes to pay for it.

“Instead of sensible public investment the Labour Government has been ripped off by a credit card style con.”

PROPPING UP PFI WITH PUBLIC MONEY IS ECONOMICS OF THE MADHOUSE

March 2, 2009 Stewart Hosie MP No comments

Commenting on the strong likelihood that the Chancellor is set to announce a multi-billion pound injection of extra funding into PFI projects SNP Treasury spokesperson, Stewart Hosie MP, called the move the economics of the madhouse .

Mr Hosie said:

“Labour have bailed out the bankers, and now Alistair Darling seems set on propping-up PFI projects. This humiliating bail-out is not only the clearest indication that PFI has failed but is the economics of the madhouse.

“Why is public money being used to prop up a system that gives such a bad return compared to traditional public procurement?

“The cost of propping out Labour’s PFI projects will make Sir Fred Goodwin’s pension arrangements look like pocket change.

”As if any further evidence was needed, the grotesque folly of building public services through private finance is plain to see.

“Alistair Darling has absolutely no financial credibility left. PFI is a millstone round the UK’s neck and he is set to add more weight to that debt millstone and burden taxpayers with even more taxes to pay for it.

“Instead of sensible public investment the Labour Government has been ripped off by a credit card style con.”

SNP MSP Attacks Labour’s PFI Car Parking Bill

January 20, 2009 Joe FitzPatrick MSP No comments

Commenting on news that a Labour MSP is to bring forward a private member’s bill about the PFI car parking deal at Ninewells, which was introduced 10 years ago during a Labour administration at Holyrood’s term of office, Joe Fitzpatrick MSP said: “Labour have some hard neck bringing forward this private member’s bill given that it was on Labour’s watch that the PFI car park charges were introduced!

The SNP Government have scrapped car parking at all the car parks that we can do so, except for the three including Ninewells which Labour had tied in to long-term PFI contracts.

“The company has no intention of negotiating an early end to the contract which has 20 years to run. So it is up to Labour to say where they would make cuts in the budget to buy-out this private company. Would they cut front-line services in hospitals?

“The SNP has always opposed PFI because it forces the taxpayers to pay through the nose, many times the value and continues to tax the public for private profit long afterwards. Labour are now wanting the taxpayers to bail out their errors of judgement.”

HIDDEN PFI COSTS ROCKETING OUT OF CONTROL

November 30, 2008 Stewart Hosie MP No comments
SNP EXPOSE £27.5BN INCREASE SINCE MARCH

SNP EXPOSE £27.5BN INCREASE SINCE MARCH

The SNP has rounded on the UK Government over the rocketing cost of the Private Finance Initiative (PFI), highlighting figures buried in the Pre-Budget Report (PBR) which show that the UK’s PFI liability increased between the Budget in March and last week’s PBR by £27.5bn – the biggest increase between reports ever.

Since 2004 the liability has jumped by £92 billion pounds. The UK Government buries these figures in an online appendix, but if they were required, as companies are, to put this on their books it would add another £216bn to the national debt. PFI liability has gone up almost 75%.

Other key figures from the PBR reveal:

*Final PBR 2008 figure show an increase of 74.42% on the Budget 2004 figure and an increase of 14.58% on the Budget 2008 figure.

*The PBR 2008 figure is a £92.2 billion increase on the Budget of 2004 and a £27.5 billion increase on Budget 2008.

*Between 2005 and 2007, the average PBR increase on the Budget in the same calendar year was 6.3% whilst the PBR increase on this year’s Budget is
14.58%.

Commenting on the situation, SNP Westminster Treasury spokesperson, Stewart Hosie MP, said:

”We have always known that PFI was hyper-expensive, but it is clear from that the liability is rocketing out of control.

“Labour has absolutely no financial credibility left. PFI is a millstone round the UK’s neck.

”No wonder Alistair Darling buried the figures deep in the appendices of the PBR. If the Treasury were required to put this on their books it would add another £216bn to the national debt.

“We had hoped the pre-budget report would set out when and how the UK Government is going to bring PFI payments on to the books – instead we see the piles of secret debt mounting even higher.

“Ironically much of this money is owed to the banks the UK Government has now bailed out.

“PFI has consistently been shown to be against the long term interests of the tax payer.

“Instead of sensible investment the Labour Government has been ripped off by a credit card style con.

“These figures confirm the taxpayer will be paying this hefty credit card bill for a long time to come.”

Dundee MSPs Welcome End of NHS Hospitals’ Car Park Charges

September 2, 2008 Joe FitzPatrick MSP, Shona Robison MSP No comments

Dundee’s SNP MSPs today gave an enthusiastic welcome to the announcement by Health Secretary Nicola Sturgeon that car parking charges at hospitals across Scotland will be abolished from December 31st.

They added their voice to the Health Secretary’s calls for boards with PFI deals, signed under previous Labour administrations, to work with contractors to reduce the charges at Edinburgh Royal Infirmary, Glasgow Royal Infirmary and Ninewells in Dundee.

Joe Fitzpatrick SNP MSP for Dundee West where as a result of a PFI deal for car parking charges will remain in place at Ninewells said;

“This is a welcome announcement for the rest of Scotland but serves to highlight the problems faced at Ninewells in Dundee, where as a result of the use of a private finance deal for carparking the charges will remain and serves to highlight the problems of the PFI deals pushed forward by previous Labour administrations and Health Ministers.

“Along with those who use and work at Edinburgh and Glasgow’s Royal Infirmary people in Dundee will continue to pay these charges and I welcome the Health Secretary’s efforts to urge these hospitals to take action to reduce their charges.”

“The abolition of car parking charges in Scotland’s other hospital car parks is excellent news and shows the SNP’s commitment to an NHS that is free.

“With parking and prescription charges now on the way out this is a good day for all those who use the NHS and who work in the NHS.

“Charging those who work in our NHS, who need treatment in the NHS or who are visiting loved ones was grossly unfair and has caused outrage across Scotland.   The £3 cap has made a big difference and abolishing charges at the end of the year will bring a great start to the New Year for the NHS.”

“I know employees and trade unions as well as patients and visitors have opposed these charges and am sure this news will be well received.

“The SNP has supported those who have campaigned against the charges and I am pleased Nicola Sturgeon has been able to act to lift this tax on the sick, their carers and their families.”

 

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