PFI/PPP REPAYMENTS A DRAIN ON LOCAL BUDGETS

Strathaven based MSP Linda Fabiani, has criticised the level of payments due by South Lanarkshire Council to Private Finance Initiative/Public Private Partnerships (PFI/PPP), as a drain on the public finances at a time when budgets are being squeezed.

The council is due to make payments to PFI/PPP contractors of 90million pounds over the next three years due to the previous administrations use of this discredited method of financing public projects.

Speaking during a debate in the Scottish Parliament Ms Fabiani, asked of the effect that such payments is having on the public purse, to be informed that the bill nationally in the next three years alone is over 2billion pounds and that this figure will increase year on year to an estimated one billion pound annual repayment by 2024.

Ms Fabiani said:

“These figures demonstrate the madness of PFI/PPP funding for public infrastructure in place of traditional methods of procurement. In East Kilbride alone the cost of the school rebuilding programme using the PPP method will be over one billion pounds over the life of the contracts. It is ludicrous sums of money to be spending on the public purse when other methods of purchasing are far cheaper and better value for money.

“These PFI/PPP contracts impact severely on departmental budgets which are already being restricted by Westminster spending cuts and, I’m sure those trying their best to manage local authority finances would rather have this money to spend on services, rather than being tied to onerous and unnecessary repayments that are worth more than the value of the goods that have been purchased.

“Over the next three years South Lanarkshire Council will repay 90million pounds for PFI/PPP projects and this level of repayment will continue to impact on public funds for a whole generation.