PFI is the worst type of business deal . To put it simply, the Goverment asks a big business to build a School, or in this case a Hospital, then the Goverment guarantees to pay rent on average for 30 years at a very high interest rate. The Company then builds the building with no risk, so is able to borrow cheaply, it can then not just charge for Rent, but also services and repairs to the building at a rate the company choose.
The result to this is, that the Hospital or school, have to spend almost every penny they get on paying the company for services and the rent, this cripples the hospital and school, which run out of money, and then go bust, such as in this case.
Lewisham Hospital A& ;E department only opened at huge cost in April, some of you may have seen the staff who put together a Choir for a resent BBC programme and yet due to the PFI contract on the areas health authority the company who own the Hospitals have been charging so much money in rent and Service charges that it has gone bust.
When a regular business goes bust, the debt gets writtern off, but under this Labour Party Funding scandle, the Goverment has to pay the money if the School or Hospital fail, taking a way the total risk to the Company and boosting their profits hugely.
The Labour Party that invented this get rich scam should hold their heads in shame.
What should have happened that would have saved money and protected jobs and services is the following;
Goverment borrows money cheaply, or prints its own money as it presently does to give to banks. Hospitals and schools then pay a not for profit rent to the Goverment until the loan is paid off, this low cost borrowing leads to the debt being paid off quickly, and therefore the Govermernt has more money to spend without having to keep year after year paying dead money for buildings the tax payer will never own, and to make companies that live of the Public sector ever richer.
I hope you guys from this get a better understanding of this terrible business scam, set up and introduced by a Labour Party that clearly had no long term vision as to the disaster this policy would lead to, and the terrible impact on the public sector. PFI is wrong and needs to be outlawed at once.
A public Meeting has been Organised for 24 November full details will be on this blog, once i get them, but also keep an eye on Lewisham People Before Profit Website.
Sign the petition TODAy ; www.savelewishamhospital.com
Take part in the Consultation, why should we lose our Hospital services for Errors in that have nothing to do with Lewisham, Whilst i think it is a bit rich Labour jumping on the Bandwagon, it was there PFI policy that lead to this mess;
or call 0800 953 0110
PUBLIC MEETING 8th November at 6pm ; Lessoff Auditorium, Lewisham Hospital.
MASS DEMONSTRATION 3PM, Saturday 24th November Meet at the Roundabout opposite Lewisham Main DLR station Loampit Hill. Bring Home made posters, and wrap up warm.