Costs quadruple under PFI
Recently released figures have revealed
that the decision by Government to develop infrastructure projects through
PFI will lead to a quadrupling of the cost. Among the public works
soaring in price under PFI schemes are sewage upgrades and road developments.
Other projects include new colleges, hospitals, the replacement of vehicle
testing equipment and the new headquarters for Invest NI. The total
capital value of these projects is only £65.5 million. But
under PFI, which stretches payment over 20 or 30 years, they will end up
costing the public nearly three billion pounds! For example,
the project to design a new further education college in Omagh leaps from
£16 million in 2006 to £123 million in 2036. Spending on upgrading
the MI and Westlink in Belfast and M2 improvements will cost £409
million by 2037, inflated from an immediate value of £118m.
These figures expose the myth that projects built through PFI are more
cost effective. In reality they are a rip off. The companies
that take them on are being handed a licence to print money by the Government
as billions in public resources are transferred to private hands.