Monday February 24th 2025
Christine Grahame MSP writes her monthly column for Midlothian View
The acronym stands for Private Finance Initiative-meaning in practice, private companies built the likes of schools for local authorities which entered into a contract to pay for the building over a period, often for decades, and this is key, ownership of the school only passing, generally speaking, to the council at the end of the contract.
This seemed a whizz of an idea and was eagerly adopted by Labour when they were in power in the Scottish Parliament. Shiny new schools what’s not to like?
When the SNP came into government it was ditched and for good reason. PFI – build now pay as you go – has actually meant for example that in Midlothian I understand that PFI contracts for five schools are costing the council around £ 12.4 million this financial year or put anther away £1 million per month. Per month.
Rather like buying a car on HP always read the figures at the bottom of the contract-it can be eye watering and by the time you own the car it’s towards the end of its journey. It’s the same for schools under PFI. So, we must never forget the ongoing damaging costs of these contracts – reducing by millions the funding Midlothian council could use elsewhere and put to better use building council houses for example.
Finally these contracts often come with other tough provisions such as paying for private maintenance, and now we see in England, private companies shirking their contractual obligations to repair and maintain just as these contracts come to an end. These financial burdens bequeathed by Labour remind us that not only are they making an economic mess now, they made it before and Midlothian will for decades continue to pay through the nose for that Labour PFI mess. Remember that £1 million per month
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