PracticePeople In PracticeLibDems accuse government of PFI bias

LibDems accuse government of PFI bias

National Audit Office reports on Private Financial Initiative projects show the government may have skewed figures in favour of PFIs in more than half the projects investigated, Liberal Democrat shadow chancellor Matthew Taylor has claimed.

In a keynote speech to the Liberal Democrat’s conference in Bournemouth he said the NAO reports contained evidence of major errors in cost calculations for PFIs compared with the public sector in over 50% of the projects, all favouring the PFI solution.

Taylor said: ‘At the very least this is gross incompetence, but there is growing suspicion that there has been a deliberate massaging of figures in favour of the private sector.’

He claimed: ‘Under PFI, unaccountable, costly and centralised public services are being replaced with even more unaccountable, costly and over-centralised private services.’

A senior aide said the NAO looked at 19 of the 400 PFI or PPP projects now under way. Twelve included public service comparators. In the remaining cases there either was no comparator or the NAO was specifically looking at other aspects.

He said that in seven out of the twelve ‘Liberal Democrat research indicates the government’s calculations were wrong and the projects would have been handled more cheaply in the public sector.’

Also at the party conference, shadow environment, food and rural affairsminister Malcolm Bruce called for more ‘green taxes’.

He told delegates: ‘We need a green budget where environmentally friendly taxes replace those which are not.’

‘But,’ he added, ‘there must be a transparent procedure to ensure that the new levies are matched by a withdrawal of other taxes so that the net effect on revenues would be neutral.’

Links

Labour MP fires broadside at PFI

Whitehall told to demand PFI returns

Related Articles

Is inefficiency stealing your time and money?

Accounting Firms Is inefficiency stealing your time and money?

6m Emma Smith, Managing Editor
CIMA elects new president

Institutes CIMA elects new president

6m Emma Smith, Managing Editor
Transparent currency trade: How to achieve costs visibility

Governance Transparent currency trade: How to achieve costs visibility

6m Emma Smith, Managing Editor
Introduction to KPMG UK’s new leadership team

Accounting Firms Introduction to KPMG UK’s new leadership team

6m Emma Smith, Managing Editor
EY appoints head of UK Infrastructure Asset Intelligence practice

Accounting Firms EY appoints head of UK Infrastructure Asset Intelligence practice

8m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
MHA MacIntyre Hudson advises on management buy-out

Accounting Firms MHA MacIntyre Hudson advises on management buy-out

10m Emma Smith, Managing Editor