Sep 8 2008
UNISON is calling on the government to abandon its failed private finance initiative (PFI) policy following the latest report from parliament's public spending watchdog.
The Commons public accounts committee slammed the management of PFI contracts, saying that ministers and officials need to work harder to make sure that deals between the public and private sectors offer taxpayers the best value for money.
However, "sticking plaster solutions" will do nothing to fix a policy that is "fundamentally flawed", pointed out UNISON general secretary Dave Prentis.
"PFI is an economic disaster, geared towards making mega-profits for private companies at the expense of the public," he said. "It is a failed policy and should be abandoned." Taxpayers are being ripped-off to the tune of billions of pounds, Mr Prentis said.
PFI finance costs the NHS around £480 million a year - that's enough to build three large hospitals a year, equip hospitals with the latest technology or fund sought after new drug treatments.
Mr Prentis also criticised the contracts for being too rigid. Typically spanning 20 to 30 years, the lack of flexibility means the public sector is unable to respond to the changing needs of local communities, he said.