The PFI has faced a barrage of criticism in recent months. From allegations of defective facilities and poor value for money to accusations of huge windfall gains on re-financing, it has apparently been open season to attack PFI and all it stands for. The combined impact of recent rail disasters and the collapse of Railtrack (although not itself a PFI vehicle) has also popularly been attributed to the evils of private finance.
But PFI is fighting back. In a recent keynote speech, Andrew Smith, Chief Secretary to the Treasury, re-confirmed the Government’s commitment to the PFI principle. A report by Price-waterhouseCoopers, entitled Public Private Partnerships: A Clearer View, concludes that PFI
is producing quality facilities on time and to budget, which meet the needs of users. It also suggests that it generally offers good value for money, although what constitutes value for money in PFI deals is not entirely clear.
