UNISON, the UK’s largest union, today renewed its call for an
independent review of the Private Finance Initiative (PFI) and
whether it provides value for money, despite the Government
publishing its own report into PFI.
While UNISON welcomed the Government’s commitment to
continue to increase public sector investment, and the decision to
abandon the use of PFI in IT schemes, it said the report
downplayed the expanding role of the private sector in public
services.
It understated the contribution of PFI and wrongly claimed that
85% of investment is conventionally procured. There has been a
massive expansion of PPPs which are not included in the figures,
and this is set to continue, including under the LIFT projects – close
relatives of PFI – in health and education.
UNISON General Secretary Dave Prentis said:
“This report seeks to justify the Government’s policy on PFI. It
largely uses its own research – which remains unpublished – and
is very selective when considering other research. It completely
ignores research by non government bodies.
“This is not the independent review called for by the Labour Party
conference last year. We will continue to press for that
independent review.”
UNISON welcomed the promised reform of the Public Sector
Comparator.
Dave Prentis added:
“For too long the figures have been manipulated to justify PFI
scheme going ahead. I hope the Government is serious about
these reforms as they could result in a real choice between public
investment and PFI. At the moment managers are faced with PFI or
nothing.”
UNISON also welcomed the report’s emphasis on the benefits of
PFI not being delivered at the expense of workforce pay and
conditions. However, in itself the report changes nothing. Action to
end the two-tier workforce in local government has been an
important step but must be extended to all government
departments.