Socialist Worker

A bail out for the privateers

Issue No. 2141

New Labour is stepping in to prop up private firms struggling to fund Private Finance Initiative (PFI) schemes to build hospitals, schools and other public buildings.

The government is to lend £2 billion to firms hit by the economic crisis.

PFI sees private firms building and running public projects in return for government payments over 20 or 30 years, making it much more expensive than if the state built the buildings itself.

Now the government is underwriting the private companies that were supposed to “take the risks” involved in these projects.

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Tue 3 Mar 2009, 18:33 GMT
Issue No. 2141
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