Another PFI deal goes sour

From the British Public Finance (published by the Chartered Institute of Public Finance and Accountancy) reports on a British deal in which the private supplier of school services simply walked away, two years into a five-year contract. One would suppose that there was some sort of performance bond to guard against this, but it isn’t discussed.

Some more interesting stories report higher costs due to PFI causing cuts in services and problems with the London Underground PPP.

Even more interesting is the suggestion here that the vogue for the provision of public services by for-profit companies has passed its peak and that interest is now turning to “public interest companies” – a version of what used to be called quangos (I’ll add a link on the etymology of this interesting term when I get time).