Why The Unions Don't Like PFI

Labour's Hidden Debt -- And How Not to Fix It, Contentions, June 30, 2009. "If the government wants to spend money on a program — presuming it’s unwilling to simply roll the printing presses — it must choose between two ways of acquiring the needed funds. It can borrow the money, or it can raise it through taxation. Neither source is ideal. The disadvantage of raising taxes is obvious. The disadvantage of borrowing stems from markets taking notice, and — if you do it often and irresponsibly enough — punishing you for it. In Britain, Labour found a third way: i.e., writing very long-term contracts to private firms responsible for building and maintaining capital assets, in return for annual payments."