NIPSA has campaigned against the use of Private Finance Initiative (PFI) and Public Private Partnerships (PPPs) since these policies were first introduced by the Conservative Government in the 1990's. Despite the mounting evidence of PFI and PPP failures, however, the UK Government and the NI Executive continue to advocate the use of PFI/PPPs to provide essential public service infrastructure and deliver public services.
NIPSA therefore decided it was essential to provide Ministers, MLAs and the public in Northern Ireland with an independent and rigorous analysis of the use of PFI/PPPs in Northern Ireland. Professor Allyson Pollock's team at the University of Edinburgh was commissioned to undertake this work - the University's Centre for International Public Health Policy is widely recognised and respected as an expert authority on the issues involved.
We believe this is a landmark report on PFI/PPPs in Northern Ireland. It provides stark facts. The unitary charges to fund agreed and projected PFI/PPP schemes is going to cost a staggering £10 billion plus if the devolved administration adheres to current plans. These costs will have to be met from Northern Ireland's public expenditure budget. Public services will suffer not benefit as a consequence.
It is now time to stop PFI/PPPs in Northern Ireland. A switch back to conventional procurement for all future public capital projects can only help local companies in the current financial climate. As the report highlights, PFI/PPPs freeze out local companies in favour of large multinational corporations.
The Centre's report now provides the clear and compelling evidence for the change of policy on PFI/PPPs that is so desperately needed. NIPSA commends the report for detailed consideration by Northern Ireland's Ministers and MLAs.