Peter Dowd MP responds to National Audit Office report

Peter
Dowd MP, Labour’s Shadow Chief Secretary to the Treasury, commenting on the
NAO’s report out today on the costs and benefits of the Public Finance
Initiative (PFI), said:

“The
National Audit Office confirms that, not only is there little evidence of the
benefits of private finance procurement, but also that it “results in
additional costs compared with publicly financed procurement”.

“According
to the NAO’s analysis of a schools building project, costs under the Tories’
new PF2 schemes are 40% higher than through direct government funding.

“Worryingly,
despite this and the Office for Budget Responsibility’s description of PFI as a
“fiscal illusion”, it seems that the Treasury has actively decided against
removing budgetary incentives which exist in favour of PFI.

“Today’s
report only further demonstrates this Tory government’s continued
commitment to fleecing tax payers for the benefit of large PFI firms. It also
raises more questions over the use of PFI in a week in which the Carillion
scandal has left many fearing for their jobs and standard of their public
services.

“The
next Labour government will draw a line under the failed PFI approach to public
investment, and will replace it by a transparent and accountable approach,
which will reduce the costs and deliver significant savings to the taxpayer.”

Ends