PFI has been a failure – and Carillion is the tip of the iceberg

Khadaroo, Iqbal and Salifu, Ekililu (2018) PFI has been a failure – and Carillion is the tip of the iceberg. The Conversation [weblog article, 24 January 2018]. ISSN 2201-5639

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Carillion’s collapse has brought with it wider scrutiny of the way that UK public services are contracted out to businesses – particularly through the use of Private Finance Initiative (PFI) schemes. The UK’s second largest construction business had a network of these contracts, worth billions of pounds, providing essential public services across government departments. The NHS, defence, education, energy, and prisons have all been left exposed by its collapse.

While the winter crisis tightens its grip on the NHS, two urgently needed hospitals – the Midland Metropolitan and the Royal Liverpool – that were supposed to be constructed by Carillion under PFI arrangements, now await state rescue. In addition, the fire service must now stand by to deliver the school meals Carillion was contracted to provide.

But the company’s collapse is the tip of the iceberg when it comes to the failure of PFI to give the public good value for money.

Item Type: Article
Keywords: Carillion, PFI, PPP
Schools and Departments: University of Sussex Business School > Accounting and Finance
Depositing User: Iqbal Khadaroo
Date Deposited: 23 May 2019 10:14
Last Modified: 04 Nov 2019 10:08

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