Private Finance Initiative - a good deal for the public purse or a drain on future generations?

Citation
R. Ball et al., Private Finance Initiative - a good deal for the public purse or a drain on future generations?, POLICY POL, 29(1), 2001, pp. 95-108
Citations number
30
Language
INGLESE
art.tipo
Article
Categorie Soggetti
Politucal Science & public Administration
Journal title
POLICY AND POLITICS
ISSN journal
0305-5736 → ACNP
Volume
29
Issue
1
Year of publication
2001
Pages
95 - 108
Database
ISI
SICI code
0305-5736(200101)29:1<95:PFI-AG>2.0.ZU;2-F
Abstract
The Private Finance Initiative (PFI), introduced by the Conservatives in 19 92, has been enthusiastically embraced by the Labour government, with proje cts worth pound 12 billion (capital cost) signed between 1997 and 2000. The charge to the public sector includes the capital cost and a charge for the service, with the resulting 'unitary payment' charged over the life of the contract which may extend beyond 20 years. PFI is thought to have advantag es over traditional procurement, including risk transfer, innovation and va lue for money. This article explores these advantages in some depth and con cludes that the advantages of PFI may not be as significant as some propone nts suggest.