Source: Financial Times

By Nicholas Timmins

The private finance initiative shows the chancellor at his most ideological – and his most pragmatic; at his most obdurate, yet willing to shift in the face of the evidence; happy to do deals with the unions but only where that is the political price of keeping the show on the road.

The PFI is a policy Old Labour would never have embraced. Private money, borrowed at interest rates higher than those the Treasury could command, is used to provide public buildings and facilities on 25- to 30-year contracts, the higher costs being justified by the level of risk-transfer.

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Posted by pichu at June 25, 2007 10:53 PM