PLC Public Sector reports:
The banks failed … the Government threw the golden rule out of the window and bailed them out. The banks failed again … the Government bailed them out again.
The Government is now pledging to spend its way out of the depression, sorry recession (apologies for the “slip of the tongue“), including providing the necessary funds to support several large PFI schemes. Many of these schemes have been experiencing difficulties because the banks refused (and in most cases still refuse) to provide the required finance.
We will only be able to judge the success of the Government’s financial stimulus in time. However, a debate is needed now as to whether PFI is the appropriate vehicle for the Government’s rescue plans.