Yesterday morning the Parliamentary Treasury Select Committee released a report on PFI that, after carrying out a careful analysis of its advantages and disadvantages, has come out with major concerns about PFI.
The opening of the inquiry was announced by the Treasury Committee in March.
Since then they’re taken written and oral evidence from across the industry, with the aim of coming to a conclusion as to whether PFI (Private Finance Initiative) is good to use to finance large-scale public infrastructure projects.
The Isle of Wight Council currently has plans to use PFI to fund the resurfacing of the Island’s roads.
At the launch of the report, the Conservative Chairman of the Treasury Select Committee, Andrew Tyrie MP, said,
“PFI means getting something now and paying later. Any Whitehall department could be excused for becoming addicted to that.
“We can’t carry on as we are, expecting the next generation of taxpayers to pick up the tab. PFI should only be used where we can show clear benefits for the taxpayer. We must first acknowledge we’ve got a problem. This will be tough in the short term but it should benefit the economy and public finances in the longer term.”
Read the full Treasury Select Committee report on Private Finance Initiative.
