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Only financiers will mourn the demise of PFI
“The snag is that there’s no evidence the private sector is really that much more efficient. Consider, for instance, a 2011 report by the water regulator Ofwat which found that “contrary to expectations”, publicly owned Scottish Water’s cost efficiency was on a par with that of its privately owned utility peers in England.”
PFI  finance  capital  newlabour 
november 2018 by diasyrmus
Only financiers will mourn the demise of PFI | Financial Times
Build infrastructure using the cheapest capital resources available, even if it means recognising boring liabilities (as well as assets) on the balance sheet.
november 2018 by yorksranter
(13584) JOEL BENJAMIN on Why The Public Are Kept In The Dark - YouTube
Councils took out high-interest loans from highstreet banks (vs low from via gov) + PFI, now running against the wall

LOBO loans
UK  Austerity  Council  PFI  bankruptcy  high  interest  loan  LOBO 
october 2018 by asterisk2a
The finance curse: how the outsized power of the City of London makes Britain poorer | News | The Guardian
Take private equity firms, for instance. They typically buy up a solid company then financially engineer that company to squeeze all its different stakeholders, one by one. They run the company’s financial operations through tax havens, fleecing taxpayers. They may squeeze workers’ pay and pensions pots, or delay paying suppliers. They might buy up several companies to dominate a market niche, then milk customers for monopoly profits. They chisel the pension funds that invest alongside them, with hidden fees. And so on.

Then, armed with the juiced-up cashflows from these tactics, they borrow more against that company and pay themselves huge “special dividends” from the proceeds. If the company, newly indebted, now goes bust, the magic of “limited liability” means the private equity titans are only liable for the sliver of equity they invested in the first place – typically just 2% of the value of the company they have bought up. Private equity investors sometimes do make the companies they buy more efficient, creating wealth, but that is a minority sport compared to the financialised wealth extraction.

Or, consider the financial structure of Trainline, the online rail ticket seller. When you buy a ticket, you may pay a small booking fee, perhaps 75p. After leaving your bank account, that 75p takes an extraordinary financial journey. It starts with London-based Limited, then flows up to another company that owns the first, called Trainline Holdings Limited. That company is owned by another, which is owned by another and so on.

Five companies up and your brave little 75p skips off to the tax haven of Jersey, then back again to London, where it passes through five more companies, then back to Jersey, then over to Luxembourg, another tax haven. Higher up still, it passes through three or more impenetrable companies in the Cayman Islands, then joins a multitude of other rivulets and streams entering the US, where, 20 or so companies after starting, it flows to KKR, a giant US investment firm.

It flows onwards, to KKR’s shareholders, including banks, investment funds and billionaires. KKR owns or part-owns more than 180 real, solid companies including the car-sharing firm Lyft, Sonos audio systems and Trainline. But on top of those 180 real firms, KKR has at least 4,000 corporate entities, including more than 800 in the Cayman Islands, links in snaking chains of entities with peculiar names drawn from finance’s arcane lingo, like (in Trainline’s case) Trainline Junior Mezz Limited or Victoria Investments Intermediate Holdco Limited.

This is an invisible financial superstructure, siphoning wealth from Trainline’s genuinely useful and profitable services, upwards, away and offshore. None of this is remotely illegal. In our age of financialisation, this is increasingly how business is done.
finance  pfi  investment  capitalism 
october 2018 by photoangell
Bye-bye, PFI: UK signals effective end of private finance initiative - Sectors - GCR
The decline in enthusiasm for using the PF2 is evident in Whitehall’s unwillingness to mount a defence of it // its only surviving function - shouting at Momentum
june 2018 by yorksranter
Britain Was a Pioneer in Outsourcing Services. Now, the Model Is ‘Broken.’ - The New York Times
A report by the government’s National Audit Office shows that taxpayers are expected to pay nearly $285 billion to private contractors for projects and services over the next 25 years. The agency also found that with changing economics, schools could cost 40 percent more, and hospitals 70 percent more, when undertaken through private-finance initiatives rather than though the government.
pfi  politics 
may 2018 by mvh
RT : Bankrupt firm Carillion shelled out £6.4m to advisors the day before it asked Govt for a rescue loan. Outrageo…
PFI  from twitter
march 2018 by gaelicWizard
For whom the bell tolls: what does the collapse of Carillion mean for the future of public services | Civil Service World
A key part of the government’s response was indeed the return of some services to public hands. The Ministry of Justice moved quickly to create a new government-owned facilities management company to deliver Carillion’s work. Gov Facility Services Limited will take over the cleaning, maintenance, landscaping and repair work at 52 prison sites across England.
carillion  pfi 
february 2018 by yorksranter

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