Research by the European Services Strategy Unit has exposed the fact that Carillion plc sold equity in 49 PFI projects between 2003 and 2017 gaining a revenue of £500m. Most of the transactions were to offshore infrastructure funds.

Carillion currently has 25%-90% equity stakes in 12 PFI projects with a capital value of £1,281m. In addition, it has a 33.33% equity in the Aberdeen Western Peripheral Route (a Scottish Non-Profit Distributing (NPD) project with a capital value of £469m. It is involved in joint ventures, such as a 50% equity in Aspire Defence Services Limited, which had a £94m turnover in 2016 delivering the MoD Allenby-Connaught PFI project (£1.6bn capital value).

The Independent article:

http://www.independent.co.uk/news/business/news/carillion-made-500m-in-revenue-from-pfi-projects-with-annual-returns-of-up-to-39-research-finds-a8180986.html

See spreadsheet of Carillion PFI Equity sales

 

ESSU Research Report No 9, Dexter Whitfield

Details 11 buyouts, 20 terminations and 43 projects with major problems, plus many bailouts, accounting for 28% of PFI/PPP contracts by capital value. The public cost of buyouts, bailouts, terminations and major problem contracts is £27,902m, when combined with the additional cost of private finance, interest rate swaps and higher PFI transaction costs. This could have built 1,520 new secondary schools for 1,975,000 pupils, 64% of 11-17 year old pupils in England. The UK’s 6.8% ratio of buyout and terminated contracts is higher than the 5.4% average of World Bank projects in developing countries for terminated contracts. This ESSU Research Report explains the causes and fundamental flaws in the PFI/PPP model.

Databases of buyouts, terminations and major problem contracts.

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.

The planned outsourcing of Fire Service training and Fire Control services could result in the fracturing of Fire and Emergency services in London. A report for the FBU, UNISON and GMB exposes the threat to the fire and rescue service by outsourcing fire service training and the Fire Control service. New high risks will be imposed on fire service, potential discrimination in the treatment of staff, and a flawed procurement process driven by political dogma.

 

The East of England Public Health group have published a major study researched and written by the Centre for Public Services (with the Nuffield Institute for Health, at Leeds University). The report assesses the contribution of health and social care to sustainable development in the region.

The study quantifies the impact of the Health and Social Care system on the economy, labour market, social inclusion and the environment in the East of England.

The study was commissioned by the East of England Public Health Group, the Department of Health and the Health Development Agency, together with regional partners such as the East of England Development Agency, East of England Regional Assembly, Norfolk Suffolk and Cambridge Workforce Development Confederation, Environment Agency and Strategic Health Authorities in the region. The project also included widespread consultation with a range of stakeholders and partners across the region. The final report is available from the East of England Public Health Observatory.

Milton Keynes Council and Northamptonshire County Council are considering a joint strategic partnership for a large range of corporate and support services.

The Centre has been a devising the two UNISON branches and has produced an alternative plan “A New Vision for Local Government in Milton Keynes and Northamptonshire” available on the the CPS website. We have also provided the branches with an assessment of the two bids from Amey and Hyder and made a presentation to Milton Keynes Council.