The Inevitable Conclusion To P F I?

[mushroom25]

https://www.theguardian.com/business/2018/jan/10/government-carillion-collapse-contingency-plans

Can we see where that is headed? unfortunately I think we can.

They will get shot of pension liabilities (so screw most of the staff), and then bits of the Group will rise phoenix-like from the ashes, trebles all round (as Private Eye might say) and mahoosive bonuses for the senior muppets whose mismanagement caused it.

The reward for failure in these days of the Maybot being loads of dosh. Privatisation = croney capitalism. Carillion is a PFI contractor, i.e. one of those leeches sucking way too much taxpayer money out of essential public services like the NHS.

Carillion should be allowed to fail, their Directors pursued and their PFI contracts declared null and void. But with a Tory govt, that ain’t gonna happen. Which is the very definition of croney capitalism - the private sector gets loads of taxpayer money and take on no risk.

Cynical? Moi?

[beegeebee]

Considering the P.F. I. was carried out by & under a Labour government as a "cheap means" of producing hospitals rather quickly and kicking the costings 'Down the Road' so that a later Government of any party would get the pieces, whilst the party in power could get the Halo for 'solving' the problem. Twas ever thus in the Political Landscape.

[TheChair]

Whilst beegeebee is correct insofar as Labour under Tony Blair made great use of PFI, it was implemented for the first time in 1992 by the Conservative government of John Major.
The biggest problem was caused by the fact that PFI investors were not interested in small deals, so (for example), if a hospital needed a couple million for a new operating theatre, the trust would end up having to sign for an entire new hospital to get any investment at all.

[Gromit]

They will get a Bailout because politically the loss of 20,000 jobs would be damaging to the Government.

File under the category ‘Too big to fail’.

[Hopkirk]

I'm not convinced 20000 jobs would be lost.

The work still has to be done, so following the collapse many would be re-employed by other companies picking up the work.

[Gromit]

The failings of PFI are another thread on their own.

It takes a special kind of ineptitude to have bundles of PFI contracts and your company to go down the toilet.