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Old 27th Jan 2008, 11:40
  #13 (permalink)  
knowitall
 
Join Date: Sep 2002
Location: Uk
Posts: 182
"I now understand that the project is to be treated 'on balance sheet' "

as i understand it

Gordon Brown has brought in rules to state how much the govt could borrow over an economic cycle

PFI schemes are effectivley an attempt to borrow money with actually having to borrow it, thus keeping it off that balance sheet and therefore making G Brown look prudent

I.E. we pay an hourly rate for the use of the "privately owned" tankers instead of just buying them and paying loan/bond repayments

the down side to this is that governments can borrow money VERY cheaply

the question is therefore if this PFI scheme is looking ever more expensive, and now has to be classed as Govt borrowing, why don't the govt just buy the things?
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