2/7/12

Privatized P3s make up lion share of "ticking time bomb" of debt

British "taxpayers face a £200bn ticking timebomb from long-term spending commitments that have not been properly costed," the Independent reports. "The Commons Public Accounts Committee criticised the Treasury for not keeping a grip on the 'staggering numbers'  involved in 'spend now, pay later' projects which are a storing up massive bills for future generations."

Most of the debt (£131.5 billion) is for privatized P3 (public private partnership) projects, primarily hospitals and schools.   The P3 debt is "four times more than the assets secured by the deals".

The other £70 billion of unaccounted debt is for decommissioning nuclear power stations and outstanding claims for medical negligence.

The government promises to end P3s "as we know it" (although the changes the Conservative government will implement will almost certainly be less than one might hope). 

Ontario merrilly continues with its own P3 program for hospitals, even as it moves to reduce public services on the grounds of unsustainable debts. 

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