PFI Report Proves They Are Not A Wonder Cure

9.20.00am GMT Fri 17th Dec 2004

Vince Cable MP, Liberal Democrat Shadow Chancellor, responding to the report by the Centre for Policy Studies on Private Finance Initiatives, said: "Whilst the Liberal Democrats believe there is a role for PFI to play, there is a growing belief that they are not the wonder cure for public sector investment.

"Value for money is not always clear cut, and the National Audit Office suggests that there are a worrying number of PFI projects that would have been better financed through traditional public sector investment.

"The true level of public sector debt may be disguised by off-balance sheet financing. We already know that Gordon Brown's record on debt management is somewhat flattered by the official figures, and it is essential that public sector liabilities are fully open and transparent.

"All too often companies contracted to do PFI work do not fulfil their contractual obligations. Many schools up and down the country are in serious difficulties because companies won't finish off the work they should do."