Private finance stuck in a lay-by
Wednesday 26 July 1995
Never backward in coming forward with complaints about the Government's handling of the economy, the sector's trade bodies are some of industry's loudest bleaters. But with construction output now set for another year of decline, the Building Material Producers' latest swipe at the Treasury's Private Finance Initiative is justified.
Problems with the PFI are proving to be the final straw for an industry struggling to cope with tumbling private housing demand and weak commercial investment. Having been promised as a supplement to government infrastructure spending, private finance is now seen as at best a substitute for declining levels of public funding. That would not matter too much except that the value of the projects being pushed the way of the private sector is well below the cuts the Chancellor has imposed on public work. The four road schemes currently out to tender are worth pounds 380m over several years. Government spending this year on roads, however, has fallen to pounds 2.08bn compared with pounds 2.6bn two years ago and further reductions are slated.
The system is bogged down in a bureaucratic quagmire. Not only is the Government not providing orders directly but it has failed to put in place a workable system for creating work indirectly. But until companies have a blueprint for getting proposals accepted, at a reasonable cost to generate a reasonable return, their response will remain lukewarm and the industry will stay on its knees.
- 1 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 2 The secret report that helps Israel hide facts
- 3 Is Ebola coming to Britain? UK health officials issue warning to doctors as outbreak fears grow
- 4 Richard Dawkins says 'date rape is bad, stranger rape is worse' on Twitter
- 5 Danish TV reporter is all business up top, all party down below
The secret report that helps Israel hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£350 - £400 per annum + competitive: Orgtel: Project Manager (specializing in ...
£25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...
£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...
£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...