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PFI bail out? WTF? PFI scum cash in.

Now this is fucked up shit. This little corker 
The government could have to bail out Private Finance Initiative projects to the tune of £4bn in the next 18 months, an industry spokesman has warned.
Tim Pearson, of the PPP (public-private partnership) Forum, said the recession was limiting loans to firms on PFI projects like schools and hospitals.
What the fucking fuckerty fuckl? What the fucking fuck are they doing now?

The government could have to bail out PFI projects to the tune of £4bn.

Now PFI works in 2 ways
.HM Govt hands over assets to the PFI company as well as paying said company a huge cunting amount to run them. Think giving someone a house and letting them rent it out for a simple analogy. 

Or PFI company is asked to supply HM Govt with a building, turning the PFI company a cool profit and lumbering us with a huge fucking bill - but as that bill is paid over many years Gordon thinks this is real economics in action.

The whole bleeding point of PFI is that the private sector take the risk in return for a huge wedge of cash. 

The Scumbag times nails this one perfectly:
So the PFI company is quids in - and lets not forget that at the height of the PFI bubble big companies were fighting like rats in a sack to get their lips round the governments teet - but yet when itall looks to go tits up they have the brass fucking balls to come back to the trough wanting bail-outs and more cash making .
I am off to put some money into hemp rope, piano wire and a few assorted sharp object making companies. Come the day the unwashed masses rise up and lynch the politicians no doubt giving PFI companys a backhander, I shall be quids in.

2 people have spoken:

scunnert said...

P3 Corporations want taxpayers to lend them the money to lend back to us???

Because of the financial crisis, finding willing lenders has become a lot more difficult and when they can be found the cost of capital for even triple-A borrowers is much higher than even a few months ago, said Alban de La Selle, a senior executive at Dexia Credit Local SA, a leading European bank.

In fact, Dexia and another European bank, Depfa -- both involved with high profile P3 projects in B.C. and elsewhere -- have been bailed out to the tune of $85 billion.

As the crisis has unfolded, Depfa Bank -- which is involved in financing the $800 million Golden Ears Bridge in the Fraser Valley, as well as projects at Royal Jubilee Hospital in Victoria and the Surrey Outpatient Hospital -- has been suffocated of the cash it needs to support its financing role in these major deals.

Dexia, a Belgian/French company with a stake in the Golden Ears project has also struggled, though hardly to the same degree.

Earlier this week, the German government and some of Europe's largest banks stepped in with about $76 billion to bail out the Depfa's parent company -- Germany's second-biggest mortgage provider, Hypo Real Estate.

In a separate deal, Dexia was given $9.6 billion. While the massive bailouts eased the pressure on these major lenders -- and allowed them to mostly resume activities -- it has led some in B.C. to ask pointed questions about the fate of financing for the billions of dollars committed to P3 projects throughout the province.

But back to Alban de La Selle, the Dexia senior executive quoted earlier in this post. On Monday he suggested that:

one way to overcome the problem would be for the government to provide the financing itself. Since governments are among the few players that can get the benefit of lower borrowing costs, that advantage could be brought into play in doing P3s, he said. For their part, the private sector partners would guarantee to repay the debt.

"It could make sense in this environment," he said.


Fidothedog said...

Scrap PFI its the only way.