Quick links

OK [X]

We use cookies on our website to ensure you find the information you need in the simplest way.
Find out more about cookies and how we use them.

Private Finance Initiative (PFI)

Welcome

Welcome to the UNISON PFI and PPP pages. In these pages you will find

  • Information about PFI and PPP
  • Information about why UNISON opposes PFI
  • Specialist pages containing information and news about PFI in the health service and in local government
  • Education resources to use at branch and workplace level to inform members about the dangers of PFI and what they can do about them

You can navigate through this site and access the material in it by following the links

What are PPP and PFI?

Public Private Partnerships (PPP) is the umbrella name given to a range of initiatives which involve the private sector in the operation of public services. The Private Finance Initiative (PFI) is the most frequently used initiative. The key difference between PFI and conventional ways of providing public services is that the public does not own the asset. The authority makes an annual payment to the private company who provides the building and associated services, rather like a mortgage.

A typical PFI project will be owned by a company set up specially to run the scheme. These companies are usually a consortia including a building firm, a bank and a facilities management company. Whilst PFI projects can be structured in different ways, there are usually four key elements: Design, Finance, Build and Operate.

The Positively Public Campaign

Positively Public is UNISON's campaign to keep our public services public. Years of privatisation and underfunding have left many areas of public provision in a poor state. We welcome better funding of these vital services. But we don't believe that more privatisation is the answer.

All our evidence and experience shows that once services are run for private profit, the quality of care is reduced and the public service ethos is replaced by a hard-nosed profit motive. It is about who makes the decisions about caring for your elderly relatives or your children's education or housing the homeless-someone with their heart in the right place, or someone with an eye on the balance sheet.

Link to another page on this site Positively Public campaign

Bargaining Support Group

UNISON can also provide information and guidance to branches involved in campaigning against PFI projects through the Bargaining Support Group at Mabledon Place.

The Bargaining Support Group collects information on companies, their public sector contracts, and other operations. This can be used by branches for campaigning against a particular company, a specific project, or a bargaining issue arising from a PFI transfer.

Bargaining Support Group can provide your branch with reports on

  • Private Companies holding contracts in the public sector, including information on finances, contracts and ownership
  • Agreements with private companies signed by UNISON
  • Company Updates - A monthly bulletin providing the latest information and developments on companies in which UNISON has an interest, alongside much more information that your branch may find useful in a PFI campaign.

Link to another page on this site Bargaining Support Group

CONTACT DETAILS
• The UNISON contact for PFI issues is Margie Jaffe.
UNISON PFI
UNISON Centre,
130 Euston Road,
London NW1 2AY
Email: m.jaffe@unison.co.uk
Recent documents

UNISON Response to Government Reform of PFI

UNISON's response highlights our concerns around the high costs of PFI; the lack of flexibility; lack of value for money; lack of risk transfer of PFI projects from the public to the private sector; poor quality of service; and the cost of government bail-outs when projects fail. It warns that PFI is no longer relevant or effective, and calls for an end to the scheme. It advocates a return to conventional procurement, which will ensure a more efficient, flexible and cost effective way of building public assets, such as schools and hospitals. The response also calls on the government to monitor the impact of existing PFI contracts on the workforce and on service quality.

Link to a PDF document on this siteUNISON Response to Government Reform on PFI


The role of private finance in public investment

The report shows that PFI is not value for money, despite the coalition government backing this form of investment. It warns that the cost of PFI has risen astronomically following the financial crisis and the gap between the rate at which the government and the private sector can borrow has widened dramatically.
Link to a PDF document on this site The role of private finance in public investment

Refinancing: profiteering from public services

Lots of PFI contractors are 'refinancing' their loans - changing the terms of their borrowings to increase profits by as much as 80%. Most public bodies making PFI deals have allowed contractors to keep all these windfall profits. The National Audit Office and the Public Accounts Committee have condemned these arrangements and said the benefits of refinancing should be shared between contractor and client.
Link to a PDF document on this siteRefinancing: profiteering from public services

What is wrong with PFI in schools

As more PFI schools are built it becomes possible to judge their success. UNISON has members intimately involved in PFI. This report draws on their experience and rounds up the evidence to date.
Link to a PDF document on this siteWhat is wrong with PFI in schools

PFI: Against the Public Interest

The report analyses the failings of the government's private finance initiative and public private partnerships, highlighting high profile contracts which have failed and PFI companies, such as Ballast which went into receivership.
Link to a PDF document on this sitePFI: Against the Public Interest

 
UNISON, UNISON Centre, 130 Euston Road, London NW1 2AY. Telephone: 0845 355 0845.
© Copyright 2011     Privacy policy
UNISON plus
for Travel Insurance
UNISON is a certified Investor in People