Tim Almond

Someone forwarded me a link to a report about PFI Contractors

PFI contractors across the UK last night faced being hauled before MPs to explain their "obscene" profits following the refinancing of many of their controversial deals.

That goes against the common sense rules of commerce. Suppliers are supposed to maximise profits, purchasers drive the bargain. To haul the supplier before a committee for being too profitable is ridiculous. The people who should be hauled before this committee are the people who signed the contracts from the government side (there’s a surprise, government being a bad purchaser).

They said the private sector consortium Octagon used a refinancing deal to boost investors’ returns.

So? Did the government get the deal it signed up to? Was it the best value supplier? If both those are answered, who cares about what Octagon did to make some more cash out of it?

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Tags: Politics //