An hour-long BBC television ‘Scotland Investigates’ programme on 22 August revealed evidence by Dexter Whitfield that over 80% of Scotland’s PFI schools are partly or wholly owned in offshore tax havens. The programme investigated the cause of the closure of 17 Edinburgh schools for repairs after construction defaults were found. Equity in this project had been sold 13 times. Part of the interview was on the BBC Television National 6.00pm news and was the lead item on the Scottish News.
A joint UNITE Somerset and European Service Strategy Unit statement summarising the case against the planned outsourcing of the Learning Disability Service. It exposes fundamental flaws and negligent practice, which indicate the Council has not learnt the lessons of the failed PPP Strategic Partnership contract with IBM.
The additional cost of PFI for the PPP1 schools project is estimated to be £104m compared to the cost of direct provision by the City Council. Offshore infrastructure funds own a majority of equity in the special purpose company and 100 percent of equity in the PPP2 project.
A prime example of connecting the £11.5m profit from Balfour Beatty’s 50% stake in the PFI special purpose company to the HICL offshore infrastructure fund generating a 19% return; the Salford Royal NHS Foundation Trust’s forecast of a £14.9m deficit this year; a £17m PFI payment due in 2016 towards the total project cost of £705m for building works that cost £137m; and the junior doctors strike:
The New Zealand Department of Corrections took over management of Serco’s 10-year NZ$300m Mount Eden remand prison contract in 2015 after just four years. Serco has now agreed to pay £4m for the cost of state intervention and outstanding performance penalties. It is limited to a labour supply agreement at cost until 31 March 2017.
The title of an article in The Guardian (by Lizzie Presser) which draws on ESSU’s database of PPP Strategic Partnerships and evidence of a high contract failure rate. Includes comments about the benefits of in-house services from leaders of Cumbria County Council, Liverpool City, the London Borough of Islington and the Local Government Association’s improvement and innovation board.
The Chinese translation in China Social Welfare Journal of the summary report of The New Health and Social Care Economy study of Sefton MBC, Liverpool and Greater Manchester City Regions and North West regional economy – see News, July 2015. Thanks to Prof. Li Bing, Beijing.
This is a radical proposal by the People vs Barts PFI campaign which has been researching and discussing ‘what to do about PFI’ for several years. The paper explains what SPVs are, how SPVs spin off private profit from public assets and proposes a mechanism for nationalising the SPVs. Proposals to strengthen the public design, project management and ‘intelligent client’ functions be strengthened in non-PFI public sector construction projects and problems with the proposal to centralise the debt are detailed in two appendices. A proposal to centralise and reduce PFI obligations contained in Part 4 of the NHS Reinstatement Bill are also examined. Access paper:
The Council finally terminated the 2007 contract after years of failing to achieve savings, poor performance, expensive contractual disputes and returning some services in-house. Details of these events are contained in various editions of the PPP Strategic Partnership Database.
Dave Orr, a retired UNISON member, and Nigel Behan, UNITE, undertook a rigorous investigative 8-year campaign to expose the fundamental flaws in the contract.