There’s been much written about the £325 million pounds that have been raised through Private Finance Initiative (PFI) for roads on the Wight.
From what we’ve read, nothing has really explained what it meant and how it works, so when we met up with David Pugh, Leader of the IW Council, there was chance for getting some clarification.
The rest of the info below gathered from the discussions with David Pugh (DP).
PFI have lots of fans, but many of those who are fans are those who are involved in arranging them, therefore getting benefit. Other people feel that PFI are horrific, as they see them as pawning the family jewels and paying lots of money back for the privilege.
No pay back
DP was keen to point out that there is no pay back, as is often the case with PFI schemes.
The government has top sliced from local authorities (FYI, top slicing is removing part of a budget for centralised used).
This money is then given as a straight forward grant, from government to a private company (subject to proper procurement), who will deliver and manage the upgrade of the roads and the ongoing maintenance for the 25 years of the project.
DP was keen to point out that it didn’t mean tolls on the roads. Phew!
Will Island companies benefit?
It would initially appear that contracts of this type would probably only be handled by very large companies — as the budgets involved are so huge — more than likely not those based on the Island.
Quite how it works as far as providing employment locally is unknown.
David gives it a go of trying to persuade us that the money spent on the roads is good for Eco-Island – we suspect this is the reuse of glass that Joe Duckworth mentioned to us at the Big Green Picnic launch.
Have a listen yourself …
[audio:http://otw-audio.s3.amazonaws.com/david-pugh-road-pfi.mp3]
Luckily our roads are not quite as bad as the one pictured in Rumpi as highlighted by The Post News Online
