4/12/12

Business School & Accountants Association: P3s unproven

The British Association of Chartered Certified Accountants  and Manchester Business School have concluded that "The value-for-money case for PPP (public private partnerships or P3s) in the public sector has yet to be proven. The benefits gained from the availability of 'extra' finance, the transfer of risk from public to private sector, and improvements in decision-making processes are too nebulous to provide any certainty that they outweigh all the known problems."


Author Professor Graham Winch of the Manchester Business School told the Telegraph"PFI (another name for P3s) has undoubtedly allowed the UK to acquire more social infrastructure earlier, and this has stimulated short-term economic growth, but it has led to an overhang of debt in the shape of commitments to unitary charges stretching some 30 years into the future and constraints on the flexibility of public bodies in using their infrastructure".

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