After a question from SNP MSP Jamie Hepburn, we now know the true cost of PPP thanks to Labour and Lib Dem's bright ideas.
£22bn it will cost us over the next 40 years. A completely indefensible figure, though it doesn't stop one Labour spokesperson from trying:
This figure does sound like a lot but actually PPP is only a fraction - 27% of the capital expenditure - of the overall spent on improving public buildings under the last executive.
When was 27% considered to be a "fraction". 1% yes, 3% maybe, but 27% of the total CapEx is not an insignificant amount. And neither is £22bn.
The most unfortunate thing now is, the SNP can't just cut ties with PPP and need to see a lot of these projects out. All the while watching money get handed over to the private sector needlessly. And then with all this wasted cash, Labour have a cheek to complain about the need for closing down schools due to a lack of funding!?
In a four year term that will see the Executive strapped for cash thanks to trams and a downturn in the economy, it will be interesting to see how Labour choose to attack the SNP over its budget given the Labour party's fingerprints are all over the sorry financial mess that Scotland finds itelf in.
P-P-Painful stuff indeed......
Rosemary Butler Forelock-Tugger.
1 minute ago
2 comments:
a refreshing outbreak of honesty about our fiscal position at last! However, all is not lost. Divide £22 billion by 40; that gives you £0.55 billion per year. Central government could take this debt from local authorities and health boards and manage it centrally. It is also time to change the rules about re-financing of PFI loans, where the shareholders get all the benefit of a lower rate of interest, but not those paying the debt. It can be done!
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