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March 26, 2005
The cost of PPP projects
‘Live now, pay later’ is generally regarded as a bad idea, unless we are talking about Public Private Partnership (PPP) projects - something I (personally) associated with enormous, badly-organized, inconveniently-located hospitals with expensive car parks.
Tom McCabe, the finance minister, answering questions by the SNP MSP Stewart Stevenson, says that PPP projects will amount to a total of GBP 8 billion by 2019, by which time the burden on the taxpayers will be about £555 million a year.
The SNP think the total will be more like £13.8 billion with an eventual annual burden of about double the figure given by McCabe. Their preference would be for a Scottish Trust for Public Investment, based on lower interest rates.
Would anyone like to explain the benefits of PPP/PFI financing over traditional means of raising money for new public works? I still don’t get it!
news.scotsman.com/index.cfm?id=320522005
Posted by Simon Holledge at March 26, 2005 11:53 AM
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