Tubby Isaacs wrote:
Indeed.
I mean, just on PFI- has any work been done unravelling the worst ones. As I understand it, you just need a large central fund to loan out a lump sum to eg a trust, and they pay back over time, saving money on the PFI payments. Northumbria and Hereford have done it, to the great satisfaction of all parties.
I doubt they're all that easy (or indeed that the PFIs were all bad enough to be a priority) but where are we on this? Are we interested in policies, saving money, or j "PFI" as an internal Labour power struggle thing?
Suppose you wanted to buy out a PFI deal, you'd need to put up a lump sum as you say, and the amount of that lump sum would be related to 1) the rate of return built into the PFI deal and 2) interest rates generally at the time. If interest rates are very low, isn't the lump sum much bigger? Might be why it's not happening now.
PFI payments are fixed and will be the first line entered in a hospital budget so irrelevant to 'unforeseen' pressures on funding arising during the year. Should be taken out of hospital budgets and paid centrally.
That large central fund would add to the national debt.
Labour are still frightened of that.
Recently on Newsnight I heard a minister, not sure who, declare in so many words why councils couldn't be allowed to build houses for social rent - because it would add to the debt. Quite unusual to hear it put so bluntly.