End PFIs and PPPs

No new PFIs/PPPs and look for breaches of contract to end existing ones – PFIs and PPPs are pushing up taxes and resulting in service cuts. Experts in NHS finance like Professor Allyson Pollock have shown that PFIs and PPP funded projects cost between two and dozens of times as much as financing new hospital and school capital projects from taxation or by taking a loan from the private sector at 3 to 5% interest rates would.


 


Wishaw general hospital


Wishaw General Hospital - built on a PFI contract, it has less beds and less trained staff than the hospitals it replaced as a result, costs more than alternative funding methods and maintenance is slow, complicated and expensive


 


While PFIs and PPPs’ costs are not counted as debt this is a mere accounting trick which covers up the vast costs over decades under PPP and PFI contracts. The complexity of consortia with many sub-contracts also results in ridiculous delays in maintenance.


Staff say not even a light bulb can be changed in a PFI or PPP hospital without filling out forms and waiting for firms to haggle over who has the right to replace it (at several times the ordinary cost). It’s vital that the maintenance aspects of the contracts be renegotiated as soon as possible and that government lawyers be put on the lookout for any breach of contract by PFI consortia so that these disasters can be ended.


 Under Brown as Chancellor and Prime Minister local councils have been given no option for funding any capital project except to accept a PFI or PPP – if they refuse the Treasury has refused them them funding. Smaller firms which are sub-contracted by the consortia of larger firms given PFI contracts are also often short-changed and paid late by the larger firms.


- A typical PFI/PPPP hospital replaces existing hospitals rather than being an additional hospital - and has roughly one third less beds and staff than the hospital it replaces due to the massive cost of PFI contracts which involve payments over up to 80 years. Source - research by Professor Allyson Pollock & others British Medical Journal 17th July 1999 and British Medical Journal 18th May 2002 and British Medical Journal 26th April 2003


South Lanarkshire Council have given the largest school PFI contract in the UK to a consortium led by AMEC construction - the same firm that got the contract to build Cumberland Infirmary on a PFI contract. Staff there say cardiac patients ended up covered in sewage from burst pipes, there were power cuts in the middle of attempts to ventilate patients , equipment was left broken , maintenance wasn't carried out properly due to engineers being sacked and the hospital has less staff and 90 fewer beds than the hospitals it replaced - while the health authority has to pay the AMEC consortium £11 million of rent annually. Does this make you trust AMEC's InspirED consortium to build our schools ?


- PFI buildings usually have inferior lighting, temperature regulation and acoustics as well as less space for beds or tables for pupils. SourceAudit Commission cited in The Guardian


- PFI contracts earn firms involved 3 to 10 times the profits of a standard contract – costing the taxpayer considerably more as a result. SourceMajor Contractors Group quoted in The Guardian