Source: The Herald

ROBIN MacCormick says that the PFI/PPP scheme was invented by the Conservatives and enthusiastically adopted by New Labour (December 12). In fact, the PFI was invented by the Conservatives with New Labour developing the PFI/PPP. There is a significant difference between the two approaches.

The PFI introduced by the Conservatives in 1992 had two main underpinning conditions. The private sector had to take the lion's share of the risks involved and the taxpayer had to receive value for money. These constraints were too rich for the consortia of bankers and construction companies who tried to become preferred bidders and because of this there was no real momentum until 1997. That momentum was introduced by New Labour as it set about making things better.

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Posted by pichu at December 14, 2006 1:27 PM