The Private Finance Initiative Essay Example | Topics and Well Written Essays - 4000 words

The Private pay Initiative - Essay ExampleThe basic premise hindquarters the concept was to involve confidential players in service cooking hence lessening the burden on the regime. It was also meant to bring a touch of professionalism that is common in the private sector in cooking of public services.The entry of Britain in the European Union also played a significant utilization in the starting of this abstract. New EU laws put a cap on administration offgo resulting from both internal and external debt. These laws consequently put a major strain on government expenditure on public projects such as new schools, roads and hospitals. Technical experts therefore resulted to PFI in order to expedite the provision of essential public services.In or so circles the scheme was also cognise as the Private-Public partnership or simply the PPP. While the scheme was designed to ensure efficient provision of public services and reduce government borrowing from the public sector, i t drew some criticism in some quarters. Some economic experts and political scientist pointed holes at the idea saying that it was a blatant presentment of government inefficiency. There was also fear that providers of these public services may be motivated by profits and end up providing mediocre services.In public finance, the government provides public goods since unlike private players it is not motivated by profits. ... As noted earlier the Private pay Initiative was the brainchild of the conservative government then led by John Major. It was billed as the most terms effective means of service provision to the public. As expected this attracted the wrath of the then opposition campaign party who accused the government of engaging in unplanned privatisation of key government services. Courtesy of some wheel dealing and backroom consultations the labour party warmed up to the idea and consequently the Private Finance Initiative was implemented. In spite of its initial opposi tion to the idea, the labour went ahead to adopt PFI when it eventually brush to power under the stewardship of the youthful leader Tony Blair. The chancellor Gordon Brown who was one of the most vocal opponents of the scheme beat a hasty turn around and became schemes number one supporter. The chancellor praised the scheme pointing out that it was due to PFI that over 150 new schools were built, 40 new hospitals constructed and a dozen road and take aim projects constructed within a very short span of time. Economists at the treasury also argued that it was due to PFI that the government had spent more on capital projects and there was less public borrowing by the state.PFI was salutary manifested in London as it was responsible for the building of the ultramodern London Underground system. Mayor deal Livingstone was forced to eat humble pie and support the project after its success. Akintole et al (2003) points out that Private Finance Initiative was one of the thorny issues in the labour government. There was the usual criticism that public assets were managed by private individuals in a questionable manner for a very long period of time. It was also quietly pointed out that some highly important